Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | STANDARD MOTOR PRODUCTS INC | |
Entity Central Index Key | 93,389 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,428,120 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | |||||
Net sales | [1] | $ 286,636 | $ 312,729 | $ 548,462 | $ 595,107 |
Cost of sales | 205,347 | 222,063 | 394,584 | 420,331 | |
Gross profit | 81,289 | 90,666 | 153,878 | 174,776 | |
Selling, general and administrative expenses | 57,750 | 60,346 | 115,467 | 117,763 | |
Restructuring and integration expenses | 231 | 1,235 | 3,067 | 2,782 | |
Other income, net | 42 | 314 | 313 | 630 | |
Operating income | 23,350 | 29,399 | 35,657 | 54,861 | |
Other non-operating income, net | 480 | 1,010 | 449 | 1,890 | |
Interest expense | 1,251 | 722 | 1,883 | 1,190 | |
Earnings from continuing operations before taxes | 22,579 | 29,687 | 34,223 | 55,561 | |
Provision for income taxes | 5,752 | 11,426 | 8,799 | 20,933 | |
Earnings from continuing operations | 16,827 | 18,261 | 25,424 | 34,628 | |
Loss from discontinued operations, net of income taxes | (882) | (497) | (1,490) | (1,130) | |
Net earnings | $ 15,945 | $ 17,764 | $ 23,934 | $ 33,498 | |
Net earnings per common share - Basic: | |||||
Earnings from continuing operations (in dollars per share) | $ 0.75 | $ 0.80 | $ 1.13 | $ 1.52 | |
Discontinued operations (in dollars per share) | (0.04) | (0.02) | (0.07) | (0.05) | |
Net earnings per common share - Basic (in dollars per share) | 0.71 | 0.78 | 1.06 | 1.47 | |
Net earnings per common share - Diluted: | |||||
Earnings from continuing operations (in dollars per share) | 0.73 | 0.78 | 1.11 | 1.48 | |
Discontinued operations (in dollars per share) | (0.04) | (0.02) | (0.07) | (0.04) | |
Net earnings per common share - Diluted (in dollars per share) | 0.69 | 0.76 | 1.04 | 1.44 | |
Dividend declared per share (in dollars per share) | $ 0.21 | $ 0.19 | $ 0.42 | $ 0.38 | |
Average number of common shares (in shares) | 22,471,428 | 22,820,079 | 22,484,894 | 22,833,263 | |
Average number of common shares and dilutive common shares (in shares) | 22,958,469 | 23,329,082 | 22,962,049 | 23,332,480 | |
[1] | Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Net earnings | $ 15,945 | $ 17,764 | $ 23,934 | $ 33,498 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (5,935) | 2,733 | (3,716) | 5,456 |
Amortization of: | ||||
Unrecognized gain | (12) | (271) | (21) | (330) |
Unrecognized actuarial gains | 12 | 472 | 12 | 472 |
Income tax related to pension and postretirement plans | 0 | (81) | 4 | (57) |
Pension and postretirement plans, net of tax | 0 | 120 | (5) | 85 |
Total other comprehensive income (loss), net of tax | (5,935) | 2,853 | (3,721) | 5,541 |
Comprehensive income | $ 10,010 | $ 20,617 | $ 20,213 | $ 39,039 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 18,573 | $ 17,323 | |
Accounts receivable, less allowances for discounts and doubtful accounts of $5,533 and $4,967 for 2018 and 2017, respectively | 173,861 | 140,057 | |
Inventories | 331,453 | 326,411 | |
Unreturned customer inventories | 18,246 | [1] | 0 |
Prepaid expenses and other current assets | 16,458 | 12,300 | |
Total current assets | 558,591 | 496,091 | |
Property, plant and equipment, net of accumulated depreciation of $186,603 and $191,081 for 2018 and 2017, respectively | 91,277 | 89,103 | |
Goodwill | 67,360 | 67,413 | |
Other intangibles, net | 52,216 | 56,261 | |
Deferred income taxes | 31,842 | 32,420 | |
Investments in unconsolidated affiliates | 34,725 | 31,184 | |
Other assets | 15,934 | 15,095 | |
Total assets | 851,945 | 787,567 | |
CURRENT LIABILITIES: | |||
Notes payable | 88,528 | 57,000 | |
Current portion of other debt | 5,169 | 4,699 | |
Accounts payable | 94,988 | 77,990 | |
Sundry payables and accrued expenses | 29,391 | 40,012 | |
Accrued customer returns | 42,536 | 35,916 | |
Accrued core liability | 26,138 | 11,899 | |
Accrued rebates | 34,142 | 35,346 | |
Payroll and commissions | 20,861 | 23,035 | |
Total current liabilities | 341,753 | 285,897 | |
Long-term debt | 34 | 79 | |
Other accrued liabilities | 15,449 | 14,561 | |
Accrued asbestos liabilities | 32,339 | 33,376 | |
Total liabilities | 389,575 | 333,913 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock - par value $2.00 per share: Authorized - 30,000,000 shares; issued 23,936,036 shares | 47,872 | 47,872 | |
Capital in excess of par value | 103,403 | 100,057 | |
Retained earnings | 370,461 | 357,153 | |
Accumulated other comprehensive income | (7,830) | (4,109) | |
Treasury stock - at cost (1,490,526 shares and 1,424,025 shares in 2018 and 2017, respectively) | (51,536) | (47,319) | |
Total stockholders' equity | 462,370 | 453,654 | |
Total liabilities and stockholders' equity | $ 851,945 | $ 787,567 | |
[1] | The adoption of ASU 2014-09 using the modified retrospective method resulted in the recording of unreturned customer inventories commencing on January 1, 2018, see Note 2, "Summary of Significant Accounting Policies" for additional information. |
CONSOLIDATED BALANCE SHEETS (U5
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Accounts receivable, allowances for discounts and doubtful accounts | $ 5,533 | $ 4,967 |
Property, plant and equipment, accumulated depreciation | $ 186,603 | $ 191,081 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 2 | $ 2 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 23,936,036 | 23,936,036 |
Treasury stock - at cost (in shares) | 1,490,526 | 1,424,025 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 23,934 | $ 33,498 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 11,706 | 11,316 |
Amortization of deferred financing cost | 172 | 172 |
Increase to allowance for doubtful accounts | 93 | 1,230 |
Increase to inventory reserves | 1,553 | 767 |
Amortization of deferred gain on sale of building | (218) | (524) |
Equity income from joint ventures | (125) | (1,111) |
Employee Stock Ownership Plan allocation | 1,278 | 1,080 |
Stock-based compensation | 3,896 | 4,005 |
Decrease in deferred income taxes | 502 | 749 |
Loss on discontinued operations, net of tax | 1,490 | 1,130 |
Change in assets and liabilities: | ||
Increase in accounts receivable | (34,524) | (53,069) |
Increase in inventories | (6,650) | (27,048) |
Increase in prepaid expenses and other current assets | (2,988) | (943) |
Increase in accounts payable | 15,684 | 17,475 |
Increase (decrease) in sundry payables and accrued expenses | (9,115) | 5,663 |
Net change in other assets and liabilities | (2,502) | (1,225) |
Net cash provided by (used in) operating activities | 4,186 | (6,835) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of and investments in businesses | (8,572) | 0 |
Capital expenditures | (11,325) | (8,843) |
Other investing activities | 16 | 2 |
Net cash used in investing activities | (19,881) | (8,841) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net borrowings under line-of-credit agreements | 31,529 | 24,134 |
Net borrowings (payments) of other debt and capital lease obligations | 758 | (21) |
Purchase of treasury stock | (7,640) | (5,176) |
Increase in overdraft balances | 1,990 | 1,488 |
Dividends paid | (9,437) | (8,674) |
Net cash provided by financing activities | 17,200 | 11,751 |
Effect of exchange rate changes on cash | (255) | 518 |
Net increase (decrease) in cash and cash equivalents | 1,250 | (3,407) |
CASH AND CASH EQUIVALENTS at beginning of period | 17,323 | 19,796 |
CASH AND CASH EQUIVALENTS at end of period | 18,573 | 16,389 |
Cash paid during the period for: | ||
Interest | 1,656 | 956 |
Income taxes | 9,622 | 19,499 |
Noncash investing activity: | ||
Accrual for additional investment in China joint venture | $ 1,373 | $ 0 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Common Stock [Member]Adjustments Due to Adoption of ASU 2014-09 [Member] | Capital in Excess of Par Value [Member] | Capital in Excess of Par Value [Member]Adjustments Due to Adoption of ASU 2014-09 [Member] | Retained Earnings [Member] | Retained Earnings [Member]Adjustments Due to Adoption of ASU 2014-09 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Adjustments Due to Adoption of ASU 2014-09 [Member] | Treasury Stock [Member] | Treasury Stock [Member]Adjustments Due to Adoption of ASU 2014-09 [Member] | Total | Adjustments Due to Adoption of ASU 2014-09 [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Cumulative effect adjustment (Note 2) | ASC 606 [Member] | $ 0 | $ 0 | $ (1,189) | $ 0 | $ 0 | $ (1,189) | ||||||
Balance at beginning of period at Dec. 31, 2017 | $ 47,872 | $ 100,057 | $ 357,153 | $ (4,109) | $ (47,319) | $ 453,654 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 0 | 0 | 23,934 | 0 | 0 | 23,934 | ||||||
Net earnings | ASC 606 [Member] | 793 | |||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | (3,721) | 0 | (3,721) | ||||||
Cash dividends paid | 0 | 0 | (9,437) | 0 | 0 | (9,437) | ||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (7,324) | (7,324) | ||||||
Stock-based compensation | 0 | 2,581 | 0 | 0 | 1,315 | 3,896 | ||||||
Employee Stock Ownership Plan | 0 | 765 | 0 | 0 | 1,792 | 2,557 | ||||||
Balance at end of period at Jun. 30, 2018 | 47,872 | 103,403 | 370,461 | (7,830) | (51,536) | 462,370 | ||||||
Balance at beginning of period at Mar. 31, 2018 | (1,895) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 15,945 | |||||||||||
Net earnings | ASC 606 [Member] | $ 402 | |||||||||||
Other comprehensive income, net of tax | (5,935) | |||||||||||
Balance at end of period at Jun. 30, 2018 | $ 47,872 | $ 103,403 | $ 370,461 | $ (7,830) | $ (51,536) | $ 462,370 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation Standard Motor Products, Inc. and subsidiaries (referred to as the “Company,” “we,” “us,” or “our”) is engaged in the manufacture and distribution of replacement parts for motor vehicles in the automotive aftermarket industry with a complementary focus on heavy duty, industrial equipment and the original equipment service market. The accompanying unaudited financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017. The unaudited consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 50% equity ownership, except in instances where the minority shareholder maintains substantive participating rights, in which case we follow the equity method of accounting. Investments in unconsolidated affiliates are accounted for on the equity method, as we do not have a controlling financial interest but have the ability to exercise significant influence. All significant inter-company items have been eliminated. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year. Reclassification Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2018 presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies The preparation of consolidated annual and quarterly financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. We have made a number of estimates and assumptions in the preparation of these consolidated financial statements. We can give no assurance that actual results will not differ from those estimates. Some of the more significant estimates include allowances for doubtful accounts, realizability of inventory, goodwill and other intangible assets, depreciation and amortization of long-lived assets, product liability, other postretirement benefits, asbestos, environmental and litigation matters, the valuation of deferred tax assets and sales return allowances. There have been no material changes to our critical accounting policies and estimates from the information provided in Revenue from Contracts with Customers, Standards that were adopted Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Effective January 1, 2018, we adopted the requirements of ASU 2014-09, Revenue from Contracts with Customers The adoption of the new standard did not result in a material difference between the recognition of revenue under ASU 2014-09 and prior accounting standards. For the majority of our net sales, revenue continues to be recognized when products are shipped from our distribution facilities, or when received by our customers, depending upon the terms of the contract. Under the new revenue standard, (1) the return of cores from customers used in our manufacturing processes for air conditioning compressors, diesel injectors, and diesel pumps is estimated and recorded as unreturned customer inventories at the time of sale, and (2) overstock returns are recorded gross of expected recoveries. Adoption of the new standard resulted in the recording of unreturned customer inventories, and an increase in accrued core liabilities and accrued customer returns, with partially offsetting changes in net sales and cost of sales, and no material change to our net income on an ongoing basis. The cumulative effect of the changes made to our consolidated balance sheet as of January 1, 2018 for the adoption of ASU 2014-09 is as follows (in thousands): Balance at December 31, 2017 Adjustments Due to Adoption of ASU 2014-09 Balance at January 1, 2018 Balance Sheet Unreturned customer inventories $ — $ 19,950 $ 19,950 Accrued customer returns 35,916 6,670 42,586 Accrued core liability 11,899 14,469 26,368 Retained earnings 357,153 (1,189 ) 355,964 The adoption of ASU 2014-09 As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Balance Sheet Unreturned customer inventories $ 18,246 $ — $ 18,246 Prepaid expenses and other current assets 16,458 16,733 (275 ) Accrued customer returns 42,536 36,184 6,352 Accrued core liability 26,138 14,123 12,015 Retained earnings 370,461 370,857 (396 ) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Change As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Statement of Operations Net sales $ 286,636 $ 286,531 $ 105 $ 548,462 $ 546,009 $ 2,453 Cost of sales 205,347 205,781 (434 ) 394,584 393,199 1,385 Earnings from continuing operations before taxes 22,579 22,040 539 34,223 33,155 1,068 Provision for income taxes 5,752 5,615 137 8,799 8,524 275 Net earnings 15,945 15,543 402 23,934 23,141 793 See Note 3 for further information regarding our adoption of ASU 2014-09. The following table provides a brief description of the impact of additional recently adopted accounting pronouncements on our financial statements: Standard Description Date of adoption E ffects on the financial statements or other significant matters ASU 2016-15, Statement of Cash Flows This standard is intended to reduce diversity in practice and to provide guidance as to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. January 1, 2018 The retrospective adoption of the new standard did not result in any changes in our reporting of cash receipts and cash payments in our consolidated statement of cash flows. ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard requires employers that present operating income in their consolidated statement of operations to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses (together with other employee compensation costs). The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in other non-operating income (expense). The new standard requires retrospective reclassification of the effects of the new standard on the statement of operations. January 1, 2018 The adoption of the new standard resulted in the reclassification of all components of net periodic pension cost and net periodic postretirement benefit cost, other than the service cost component, in our statement of operations from selling, general and administrated expenses, to other non-operating income (expense). We adopted the new standard retrospectively, and as such, all prior period amounts have been reclassified for comparative purposes. Standards that are not yet adopted as of June 30, 2018 Leases In February 2016, the FASB issued ASU 2016-02, Leases, To date, we have taken an inventory of all of our operating leases, which consists primarily of real estate, equipment and auto leases, started our review of key lease agreements including contract reviews for embedded leases, and are currently evaluating lease terms, lease payments and appropriate discount rates to use in calculating the right-of-use asset and lease liability. In addition, we are currently evaluating the transition package of practical expedients permitted within the new standard, which among other things, allows us to use hindsight to determine the reasonably certain lease term for existing leases, and allows for the adoption of the new standard at the effective date without adjusting the comparative prior periods presented. We will be continuously assessing the impact of the new standard and the impact on our systems, processes and controls through January 1, 2019, our planned adoption date. The following table provides a brief description of additional recently issued accounting pronouncements that have not yet been adopted as of June 30, 2018, and that could have an impact on our financial statements: Standard Description Date of adoption Effects on the financial statements or other significant matters ASU Simplifying the Test for Goodwill Impairment This standard is intended to simplify the accounting for goodwill impairment. ASU 2017-04 removes Step 2 of the test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. January 1, 2020, with early adoption permitted The new standard should be applied prospectively. We will consider the new standard when performing our annual impairment test and evaluate when we will adopt the new standard. ASU 2016-13, Financial Instruments – Credit Losses This standard creates a single model to measure impairment on financial assets, which includes trade account receivables. An estimate of expected credit losses on trade account receivables over their contractual life will be required to be recorded at inception, based on historical information, current conditions, and reasonable and supportable forecasts. January 1, 2020, with early adoption permitted The new standard requires adoption through a cumulative-effect adjustment to retained earnings as of the effective date, without adjusting period periods. We do not anticipate that the adoption of this standard will have a material impact on manner in which we estimate our allowance for doubtful accounts on trade accounts receivable, or on our consolidated financial statements. |
Net Sales
Net Sales | 6 Months Ended |
Jun. 30, 2018 | |
Net Sales [Abstract] | |
Net Sales | Note 3. Net Sales Significant Accounting Policy We recognize revenues when our performance obligation has been satisfied and the control of products has been transferred to a customer which typically occurs upon shipment. Revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of goods or providing services. Shipping and handling costs, as well as freight to customers, are included in distribution expenses as part of selling, general and administrative expenses. Revenue Recognition We derive our revenue primarily from sales of replacement parts for motor vehicles from both our Engine Management and Temperature Control Segments. The amount of consideration we receive and revenue we recognize depends on the marketing incentives, product warranty and overstock returns we offer to our customers. For certain of our sales of remanufactured products, we also charge our customers a deposit for the return of a used core component which we can use in our future remanufacturing activities. Such deposit is not recognized as revenue at the time of the sale but rather carried as a core liability. At the same time, we estimate the core expected to be returned from the customer and record the estimated return as unreturned customer inventory. The liability is extinguished when a core is actually returned to us, or at period end when we estimate and recognize revenue for the core deposits not expected to be returned. We estimate and record provisions for cash discounts, quantity rebates, sales returns and warranties in the period the sale is recorded, based upon our prior experience and current trends. Significant management judgments and estimates must be made and used in estimating sales returns and allowances relating to revenue recognized in any accounting period. Product Warranty and Overstock Returns Many of our products carry a warranty ranging from a 90-day limited warranty to a lifetime limited warranty, which generally covers defects in materials or workmanship and failure to meet industry published specifications and/or the result of installation error. In addition to warranty returns, we also permit our customers to return new, undamaged products to us within customer-specific limits (which are generally limited to a specified percentage of their annual purchases from us) in the event that they have overstocked their inventories. At the time products are sold, we accrue a liability for product warranties and overstock returns as a percentage of sales based upon estimates established using historical information on the nature, frequency and average cost of the claim and the probability of the customer return. At the same time, we record an estimate of anticipated customer returns as unreturned customer inventory. Revision to these estimates is made when necessary, based upon changes in these factors. We regularly study trends of such claims. Disaggregation of Net Sales We disaggregate our net sales from contracts with customers by geographic area, major product group, and major sales channels for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our net sales are affected by economic factors. The following tables provide disaggregation of net sales information for the three months and six months ended June 30, 2018 and 2017 (in thousands): Three months ended June 30, 2018 (a) Engine Management Temperature Control Other (c) Total Geographic Area: United States $ 182,383 $ 74,267 $ — $ 256,650 Canada 7,288 5,516 2,837 15,641 Mexico 4,447 173 — 4,620 Europe 2,406 147 — 2,553 Other foreign 6,905 267 — 7,172 Total $ 203,429 $ 80,370 $ 2,837 $ 286,636 Major Product Group: Ignition, emissions and fuel system parts $ 162,462 $ — $ 1,191 $ 163,653 Wire and cable 40,967 — 158 41,125 Compressors — 46,940 818 47,758 Other climate control parts — 33,430 670 34,100 Total $ 203,429 $ 80,370 $ 2,837 $ 286,636 Major Sales Channel: Aftermarket $ 171,864 $ 70,679 $ 2,837 $ 245,380 OE/OES 25,801 9,296 — 35,097 Export 5,764 395 — 6,159 Total $ 203,429 $ 80,370 $ 2,837 $ 286,636 Three months ended June 30, 2017 (a)(b) Engine Management Temperature Control Other (c) Total Geographic Area: United States $ 201,142 $ 80,874 $ — $ 282,016 Canada 8,056 5,554 1,989 15,599 Mexico 5,056 208 — 5,264 Europe 3,151 320 — 3,471 Other foreign 5,944 435 — 6,379 Total $ 223,349 $ 87,391 $ 1,989 $ 312,729 Major Product Group: Ignition, emissions and fuel system parts $ 178,105 $ — $ 840 $ 178,945 Wire and cable 45,244 — 150 45,394 Compressors — 49,644 601 50,245 Other climate control parts — 37,747 398 38,145 Total $ 223,349 $ 87,391 $ 1,989 $ 312,729 Major Sales Channel: Aftermarket $ 191,846 $ 76,799 $ 1,989 $ 270,634 OE/OES 26,168 9,810 — 35,978 Export 5,335 782 — 6,117 Total $ 223,349 $ 87,391 $ 1,989 $ 312,729 Six months ended June 30, 2018 (a) Engine Management Temperature Control Other (c) Total Geographic Area: United States $ 356,967 $ 129,838 $ — $ 486,805 Canada 15,092 9,448 4,944 29,484 Mexico 12,669 385 — 13,054 Europe 5,886 311 — 6,197 Other foreign 12,303 619 — 12,922 Total $ 402,917 $ 140,601 $ 4,944 $ 548,462 Major Product Group: Ignition, emissions and fuel system parts $ 323,539 $ — $ 2,853 $ 326,392 Wire and cable 79,378 — 349 79,727 Compressors — 76,838 762 77,600 Other climate control parts — 63,763 980 64,743 Total $ 402,917 $ 140,601 $ 4,944 $ 548,462 Major Sales Channel: Aftermarket $ 341,174 $ 122,309 $ 4,944 $ 468,427 OE/OES 50,857 17,397 — 68,254 Export 10,886 895 — 11,781 Total $ 402,917 $ 140,601 $ 4,944 $ 548,462 Six months ended June 30, 2017 (a)(b) Engine Management Temperature Control Other (c) Total Geographic Area: United States $ 387,044 $ 145,913 $ — $ 532,957 Canada 17,823 9,910 2,763 30,496 Mexico 12,087 432 — 12,519 Europe 6,965 524 — 7,489 Other foreign 10,744 902 — 11,646 Total $ 434,663 $ 157,681 $ 2,763 $ 595,107 Major Product Group: Ignition, emissions and fuel system parts $ 343,258 $ — $ 1,564 $ 344,822 Wire and cable 91,405 — 376 91,781 Compressors — 87,545 299 87,844 Other climate control parts — 70,136 524 70,660 Total $ 434,663 $ 157,681 $ 2,763 $ 595,107 Major Sales Channel: Aftermarket $ 371,611 $ 138,598 $ 2,763 $ 512,972 OE/OES 52,672 17,799 — 70,471 Export 10,380 1,284 — 11,664 Total $ 434,663 $ 157,681 $ 2,763 $ 595,107 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. (b) Amounts have not been restated and are reported under accounting standards in effect in the period presented as we adopted ASU 2014-09, Revenue from Contracts with Customers (c) Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments as well as sales from our Canadian business unit that does not meet the criteria of a reportable operating segment. Geographic Area We sell our line of products primarily in the United States, with additional sales in Canada, Mexico, Europe, Asia and Latin America. Sales are attributed to countries based upon the location of the customer. Our sales are substantially denominated in U.S. dollars. Major Product Group The Engine Management segment of the Company principally generates revenue from the sale of automotive engine replacement parts including ignition, emission and fuel system parts, and wire and cable parts. The Temperature Control segment of the Company principally generates revenue from the sale of automotive temperature control systems replacement parts including air conditioning compressors and other climate control parts. Major Sales Channel In the aftermarket channel, we sell our products to warehouse distributors and retailers. Our customers buy directly from us and sell directly to jobber stores, professional technicians and to “do-it-yourselfers” who perform automotive repairs on their personal vehicles. In the Original Equipment (“OE”) and Original Equipment Service (“OES”) channel, we sell our products to original equipment manufacturers who redistribute our products within their distribution network, independent dealerships and service dealer technicians. Lastly, in the Export channel, our domestic entities sell to customers outside the United States. |
Business Acquisitions and Inves
Business Acquisitions and Investments | 6 Months Ended |
Jun. 30, 2018 | |
Business Acquisitions and Investments [Abstract] | |
Business Acquisitions and Investments | Note 4. Business Acquisitions and Investments 2018 Increase in Equity Investment Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. In April 2014, we formed a 50/50 joint venture with Gwo Yng Enterprise Co., Ltd. (“Gwo Yng”), a China-based manufacturer of air conditioner accumulators, filter driers, hose assemblies and switches for the automotive aftermarket and OEM/OES markets. We acquired our 50% interest in the joint venture for approximately $14 million. We determined, at that time, that due to a lack of a voting majority and other qualitative factors, we do not control the operations of the joint venture and accordingly, our investment in the joint venture was accounted for under the equity method of accounting. In March 2018, we acquired an additional 15% equity interest in the joint venture for RMB 26,475,583 (approximately $4.2 million), thereby increasing our equity interest in the joint venture to 65%. Payment for our additional 15% investment will be made in six cash installments, with $2.8 million paid through June 30, 2018 and the balance paid on various dates through the end of 2018. Although we have increased our equity interest in the joint venture to 65%, the minority shareholder will maintain participating rights that will allow it to participate in certain significant financial and operating decisions that occur in the ordinary course of business. As a result of the existence of these substantive participating rights of the minority shareholder, we will continue to account for our investment in the joint venture under the equity method of accounting. 2017 Equity Investment Foshan FGD SMP Automotive Compressor Co., Ltd. In November 2017, we formed a 50/50 joint venture with Foshan Guangdong Automotive Air Conditioning Co., Ltd. (“FGD”), a China-based manufacturer of air conditioning compressors for the automotive aftermarket and the Chinese OE market. We acquired our 50% interest in the joint venture for approximately $12.5 million. Payment for our acquired interest in the joint venture was made in installments with approximately $6.8 million paid in 2017 and the balance of approximately $5.7 million paid in January 2018. We determined that due to a lack of a voting majority, and other qualitative factors, we do not control the operations of the joint venture and accordingly, our investment in the joint venture is accounted for under the equity method of accounting. |
Restructuring and Integration E
Restructuring and Integration Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Integration Expenses [Abstract] | |
Restructuring and Integration Expenses | Note 5. Restructuring and Integration Expenses The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of December 31, 2017 and June 30, 2018 and activity for the six months ended June 30, 2018 consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2017 $ 2,854 $ — $ 2,854 Restructuring and integration costs: Amounts provided for during 2018 50 3,017 3,067 Non-cash usage, including asset write-downs — (181 ) (181 ) Cash payments (1,748 ) (2,836 ) (4,584 ) Foreign currency exchange rate changes 26 — 26 Exit activity liability at June 30 $ 1,182 $ — $ 1,182 Restructuring Costs Plant Rationalization Program In February 2016, in connection with our ongoing efforts to improve operating efficiencies and reduce costs, we finalized our intention to implement a plant rationalization initiative. As part of the plant rationalization, all our Grapevine, Texas production activities have been relocated to facilities in Greenville, South Carolina and Reynosa, Mexico, and certain production activities were relocated from our Greenville, South Carolina manufacturing facility to our manufacturing facility in Bialystok, Poland. In addition, certain service functions were relocated from Grapevine, Texas to our administrative offices in Lewisville, Texas and our Grapevine, Texas facility was closed. As of June 30, 2018, the plant rationalization program is substantially completed. Cash payments made during the first six months of 2018 consisted primarily of severance payments to employees. Activity, by segment, for the six months ended June 30, 2018 related to our plant rationalization program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31 $ — $ 1,476 $ — $ 1,476 Restructuring and integration costs: Amounts provided for during 2018 — 204 — 204 Cash payments — (1,204 ) — (1,204 ) Exit activity liability at June 30 $ — $ 476 $ — $ 476 Orlando Plant Rationalization Program In January 2017, to further our ongoing efforts to improve operating efficiencies and reduce costs, we finalized our intention to implement a plant rationalization initiative at our Orlando, Florida facility. As part of the Orlando plant rationalization, all of our Orlando, Florida production activities have been relocated to our Independence, Kansas manufacturing facility. In addition, certain production activities were relocated from our Independence, Kansas manufacturing facility to our Reynosa, Mexico manufacturing facility and our Orlando, Florida facility was closed. As of June 30, 2018, the Orlando plant rationalization program is substantially completed. The remaining aggregate liability related to the program as of June 30, 2018 consists of future cash severance payments to be made to former employees. Activity, by segment, for the six months ended June 30, 2018 related to our Orlando plant rationalization program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31 $ 986 $ — $ — $ 986 Restructuring and integration costs: Amounts provided for during 2018 1,471 — — 1,471 Non-cash usage, including asset write-downs (12 ) — — (12 ) Cash payments (1,739 ) — — (1,739 ) Exit activity liability at June 30, 2018 $ 706 $ — $ — $ 706 Integration Costs Wire and Cable Relocation In connection with our acquisition of the North American automotive ignition wire business of General Cable Corporation in May 2016, we incurred certain integration expenses, including costs incurred in connection with the consolidation of the General Cable Corporation Altoona, Pennsylvania wire distribution center into our existing wire distribution center in Edwardsville, Kansas and the relocation of certain machinery and equipment. In October 2016, we further announced our plan to relocate all production from the acquired Nogales, Mexico wire set assembly operation to our existing wire assembly facility in Reynosa, Mexico and to close the Nogales, Mexico plant. As of June 30, 2018, the wire and cable relocation program is substantially completed. All of our Nogales, Mexico production activities have been relocated to our Reynosa, Mexico assembly facility and our Nogales, Mexico plant was closed. Activity, by segment, for the six months ended June 30, 2018 related to our wire and cable relocation program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31 $ 392 $ — $ — $ 392 Restructuring and integration costs: Amounts provided for during 2018 1,392 — — 1,392 Non-cash usage, including asset write-downs (169 ) — — (169 ) Cash payments (1,641 ) — — (1,641 ) Foreign currency exchange rate changes 26 — — 26 Exit activity liability at June 30, 2018 $ — $ — $ — $ — |
Sale of Receivables
Sale of Receivables | 6 Months Ended |
Jun. 30, 2018 | |
Sale of Receivables [Abstract] | |
Sale of Receivables | Note 6. Sale of Receivables From time to time, we sell undivided interests in certain of our receivables to financial institutions. We enter these agreements at our discretion when we determine that the cost of factoring is less than the cost of servicing our receivables with existing debt. Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables, and do not service the receivables after the sale. As such, these transactions are being accounted for as a sale. Pursuant to these agreements, we sold $184.1 million and $341.6 million of receivables during the three months and six months ended June , 2018 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventories [Abstract] | |
Inventories | Note 7. Inventories Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) or market, consist of the following: June 30, 2018 December 31, 2017 (In thousands) Finished goods $ 218,000 $ 209,800 Work in process 9,029 7,536 Raw materials 104,424 109,075 Subtotal 331,453 326,411 Unreturned customer inventories (1) 18,246 — Total inventories $ 349,699 $ 326,411 (1) The adoption of ASU 2014-09 using the modified retrospective method resulted in the recording of unreturned customer inventories commencing on January 1, 2018, see Note 2, “Summary of Significant Accounting Policies” for additional information. |
Acquired Intangible Assets
Acquired Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Acquired Intangible Assets [Abstract] | |
Acquired Intangible Assets | Note 8. Acquired Intangible Assets Acquired identifiable intangible assets consist of the following: June 30, 2018 December 31, 2017 (In thousands) Customer relationships $ 87,226 $ 87,290 Trademarks and trade names 6,800 6,800 Non-compete agreements 3,192 3,193 Patents 723 723 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 98,901 98,966 Less accumulated amortization (1) (47,668 ) (43,853 ) Net acquired intangible assets $ 51,233 $ 55,113 (1) Applies to all intangible assets, except for trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being amortized. Total amortization expense for acquired intangible assets was $1.9 million and $3.8 million for the three months and six months ended June 30, 2018, respectively, and $2.1 million and $4.2 million for the comparable periods in 2017. Based on the current estimated useful lives assigned to our acquired intangible assets, amortization expense is estimated to be $3.7 million for the remainder of 2018, $6.3 million in 2019, $5.9 million in 2020, $4.6 million in 2021 and $25.5 million in the aggregate for the years 2022 through 2031. |
Credit Facilities and Long-Term
Credit Facilities and Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Credit Facilities and Long-Term Debt | Note 9. Credit Facilities and Long-Term Debt Total debt outstanding is summarized as follows: June 30, 2018 December 31, 2017 (In thousands) Revolving credit facilities $ 88,528 $ 57,000 Other (1) 5,203 4,778 Total debt $ 93,731 $ 61,778 Current maturities of debt $ 93,697 $ 61,699 Long-term debt 34 79 Total debt $ 93,731 $ 61,778 (1) Other includes borrowings under our Polish overdraft facility of Zloty 19.1 million (approximately $5.1 million). Revolving Credit Facility In October 2015, we entered into a Credit Agreement with JPMorgan Chase Bank, N.A., as agent, and a syndicate of lenders for a senior secured revolving credit facility with a line of credit of up to $250 million (with an additional $50 million accordion feature) and a maturity date in October 2020. The line of credit under the agreement also allows for a $10 million line of credit to Canada as part of the $250 million available for borrowing. Direct borrowings under the credit agreement bear interest at LIBOR plus a margin ranging from 1.25% to 1.75% based on our borrowing availability, or floating at the alternate base rate plus a margin ranging from 0.25% to 0.75% based on our borrowing availability, at our option. The credit agreement is guaranteed by certain of our subsidiaries and secured by certain of our assets. Borrowings under the credit agreement are secured by substantially all of our assets, including accounts receivable, inventory and certain fixed assets, and those of certain of our subsidiaries. Availability under the credit agreement is based on a formula of eligible accounts receivable, eligible inventory, eligible equipment and eligible fixed assets. After taking into account outstanding borrowings under the credit agreement, there was an additional $158.3 million available for us to borrow pursuant to the formula at June 30, 2018 December At June 30, 2018, the weighted average interest rate on our credit agreement was 3.5%, which consisted of $80 million in direct borrowings at 3.3% and an alternative base rate loan of $8.5 million at 5.3%. At December At any time that our borrowing availability is less than the greater of either (a) $25 million, or 10% of the commitments if fixed assets are not included in the borrowing base, or (b) $31.25 million, or 12.5% of the commitments if fixed assets are included in the borrowing base, the terms of the credit agreement provide for, among other provisions, a financial covenant requiring us, on a consolidated basis, to maintain a fixed charge coverage ratio of 1:1 at the end of each fiscal quarter (rolling four quarters). As of June 30, Polish Overdraft Facility In December 2017, our Polish subsidiary, SMP Poland sp.z.o.o., entered into an overdraft facility with HSBC Bank Polska S.A. (“HSBC Poland”) for Zloty 30 million (approximately $8 million). The facility expires in December 2018. Borrowings under the overdraft facility will bear interest at a rate equal to WIBOR + 0.75% and are guaranteed by Standard Motor Products, Inc., the ultimate parent company. At June 30, 2018, borrowings under the overdraft facility were Zloty 19.1 million (approximately $5.1 million). Deferred Financing Costs We had deferred financing costs of $0.8 million and $1 million as of June 30, 2018 and December 31, 2017, respectively. Deferred financing costs are related to our revolving credit facility. Deferred financing costs as of June 30, 2018 are being amortized in the amounts of $0.2 million for the remainder of 2018, $0.3 million in 2019 and $0.3 million in 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 10. Accumulated Other Comprehensive Income Changes in Accumulated Other Comprehensive Income by Component (in thousands) Three Months Ended June 30, 2018 Foreign Currency Translation Adjustments Unrecognized Postretirement Benefit Costs (Credit) Total Balance at March 31, 2018 $ (2,006 ) $ 111 $ (1,895 ) Other comprehensive income before reclassifications (5,935 ) 7 (5,928 ) Amounts reclassified from accumulated other comprehensive income — (7 ) (7 ) Other comprehensive income, net (5,935 ) — (5,935 ) Balance at June 30, 2018 $ (7,941 ) $ 111 $ (7,830 ) Six Months Ended June 30, 2018 Foreign Currency Translation Adjustments Unrecognized Postretirement Benefit Costs (Credit) Total Balance at December 31, 2017 $ (4,225 ) $ 116 $ (4,109 ) Other comprehensive income before reclassifications (3,716 ) 7 (3,709 ) Amounts reclassified from accumulated other comprehensive income — (12 ) (12 ) Other comprehensive income, net (3,716 ) (5 ) (3,721 ) Balance at June 30 $ (7,941 ) $ 111 $ (7,830 ) Reclassifications Out of Accumulated Other Comprehensive Income (in thousands) Details About Accumulated Other Comprehensive Income Components Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Amortization of postretirement benefit plans: Prior service benefit (1) $ — $ — Unrecognized gain (1) (12 ) (21 ) Total before income tax (12 ) (21 ) Income tax expense 5 9 Total reclassifications for the period $ (7 ) $ (12 ) (1) These accumulated other comprehensive income components are included in the computation of net periodic postretirement benefit costs, which are included in other non-operating income, net in our consolidated statements of operations (see Note 12 for additional details). |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2018 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | Note 11. Stock-Based Compensation Plans We account for our stock-based compensation plans in accordance with the provisions of FASB ASC 718, Stock Compensation Restricted and Performance Stock Grants As part of the 2016 Omnibus Incentive Plan, we currently grant shares of restricted stock to eligible employees and our independent directors and performance-based stock to eligible employees. Selected executives and other key personnel are granted performance awards whose vesting is contingent upon meeting various performance measures with a retention feature. Performance-based shares are subject to a three-year measuring period and the achievement of performance targets and, depending upon the achievement of such performance targets, they may become vested on the third anniversary of the date of grant. Each period we evaluate the probability of achieving the applicable targets, and we adjust our accrual accordingly. Restricted shares granted to employees become fully vested upon the third anniversary of the date of grant; and for selected key executives, certain additional restricted share grants vest 25% upon the attainment of age 60, 25% upon the attainment of age 63 and become fully vested upon the attainment of age 65. Restricted shares granted to directors become fully vested upon the first anniversary of the date of grant. Commencing with the 2015 grants, restricted and performance shares issued to certain key executives and directors are subject to a one or two year holding period upon the lapse of the three year vesting period. Forfeitures on restricted stock grants are estimated at 5% for employees and 0% for executives and directors, respectively, based on our evaluation of historical and expected future turnover. Our restricted and performance-based share activity was as follows for the six months ended June 30, 2018: Shares Weighted Average Grant Date Fair Value Per Share Balance at December 31, 2017 853,958 $ 33.25 Granted 9,129 37.53 Vested (25,845 ) 35.38 Forfeited (3,950 ) 42.82 Balance at June 30, 2018 833,292 $ 33.18 We recorded compensation expense related to restricted shares and performance-based shares of $3.3 million ($2.5 million, net of tax) and $3.5 million ($2.2 million, net of tax) for the six months ended June 30, 2018 and 2017, respectively. The unamortized compensation expense related to our restricted and performance-based shares was $12.8 million at June 30, 2018, and is expected to be recognized as they vest over a weighted average period of 4.2 years and 0.8 years for employees and directors, respectively. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Employee Benefits [Abstract] | |
Employee Benefits | Note 12. Employee Benefits We provided, and continue to provide, certain medical and dental care benefits to eligible retired U.S. and Canadian employees. Under the U.S. plan, for non-union employees, a Health Reimbursement Account (“HRA”) was established beginning January 1, 2009 for each qualified U.S. retiree. Annually, and through the year ended December 31, 2016, a fixed amount was credited into the HRA to cover both medical and dental costs for all current and future eligible retirees. Under the Canadian plan, retiree medical and dental benefits were funded using insurance contracts. Premiums under the insurance contracts were funded on a pay-as-you-go basis. The postretirement medical plans to substantially all eligible U.S. and Canadian employees terminated on December 31, 2016. For U.S. plan participants, balances in the HRA accounts upon termination of the plan at December 31, 2016 will remain available for use until December 31, 2018. Any remaining balance at December 31, 2018 will be forfeited. Postretirement medical and dental benefits to eligible employees will continue to be provided to the 20 former union employees in the U.S. The components of net periodic benefit cost for our postretirement benefit plans for the three months and six months ended June 30, 2018 and 2017 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Postretirement benefits 2018 2017 (1) 2018 2017 (1) Service cost $ — $ — $ — $ — Interest cost 1 2 3 4 Amortization of prior service cost — — — — Actuarial net gain (12 ) (271 ) (21 ) (330 ) Net periodic benefit cost (credit) $ (11 ) $ (269 ) $ (18 ) $ (326 ) (1) Net periodic benefit cost (credit) has been reclassified from selling, general and administrative expenses to other non-operating income (expense), net on our consolidated statement of operations upon adoption of ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost We maintain a defined contribution Supplemental Executive Retirement Plan for key employees. Under the plan, these employees may elect to defer a portion of their compensation and, in addition, we may at our discretion make contributions to the plan on behalf of the employees. In March 2018, we made company contributions to the plan of $0.6 million related to calendar year 2017. We also have an Employee Stock Ownership Plan and Trust for employees who are not covered by a collective bargaining agreement. In connection therewith, we maintain an employee benefits trust to which we contribute shares of treasury stock. We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under the plan. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released. The trustees will vote the shares in accordance with their fiduciary duties. During the six months ended June 30, 2018, we contributed to the trust an additional 53,300 shares from our treasury and released 53,300 shares from the trust leaving 200 shares remaining in the trust as of June 30, 2018. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 13. Fair Value Measurements The carrying value of our financial instruments consisting of cash and cash equivalents, deferred compensation, and short term borrowings approximate their fair value. In each instance, fair value is determined after considering Level 1 inputs under the three-level fair value hierarchy. For fair value purposes, the carrying value of cash and cash equivalents approximates fair value due to the short maturity of those investments. The fair value of the assets held by the deferred compensation plan are based on the quoted market prices of the underlying funds which are held in registered investment companies. The carrying value of our revolving credit facilities, classified as short term borrowings, equals fair market value because the interest rate reflects current market rates. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 14. Earnings Per Share The following are reconciliations of the earnings available to common stockholders and the shares used in calculating basic and dilutive net earnings per common share (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic Net Earnings Per Common Share: Earnings from continuing operations $ 16,827 $ 18,261 $ 25,424 $ 34,628 Loss from discontinued operations (882 ) (497 ) (1,490 ) (1,130 ) Net earnings available to common stockholders $ 15,945 $ 17,764 $ 23,934 $ 33,498 Weighted average common shares outstanding 22,471 22,820 22,485 22,833 Earnings from continuing operations per common share $ 0.75 $ 0.80 $ 1.13 $ 1.52 Loss from discontinued operations per common share (0.04 ) (0.02 ) (0.07 ) (0.05 ) Basic net earnings per common share $ 0.71 $ 0.78 $ 1.06 $ 1.47 Diluted Net Earnings Per Common Share: Earnings from continuing operations $ 16,827 $ 18,261 $ 25,424 $ 34,628 Loss from discontinued operations (882 ) (497 ) (1,490 ) (1,130 ) Net earnings available to common stockholders $ 15,945 $ 17,764 $ 23,934 $ 33,498 Weighted average common shares outstanding 22,471 22,820 22,485 22,833 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock and performance-based stock 487 509 477 499 Weighted average common shares outstanding – Diluted 22,958 23,329 22,962 23,332 Earnings from continuing operations per common share $ 0.73 $ 0.78 $ 1.11 $ 1.48 Loss from discontinued operations per common share (0.04 ) (0.02 ) (0.07 ) (0.04 ) Diluted net earnings per common share $ 0.69 $ 0.76 $ 1.04 $ 1.44 The shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Restricted and performance-based shares 251 228 265 240 |
Industry Segments
Industry Segments | 6 Months Ended |
Jun. 30, 2018 | |
Industry Segments [Abstract] | |
Industry Segments | Note 15. Industry Segments We have two major reportable operating segments, each of which focuses on a specific line of replacement parts. Our Engine Management Segment manufactures and remanufactures ignition and emission parts, ignition wires, battery cables, fuel system parts and sensors for vehicle systems. Our Temperature Control Segment manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories and windshield washer system parts. The following tables show our net sales, intersegment revenue and operating income by our operating segments (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net Sales (a) Engine Management $ 203,429 $ 223,349 $ 402,917 $ 434,663 Temperature Control 80,370 87,391 140,601 157,681 All Other 2,837 1,989 4,944 2,763 Consolidated $ 286,636 $ 312,729 $ 548,462 $ 595,107 Intersegment Revenue (a) Engine Management $ 4,981 $ 5,831 $ 10,972 $ 13,143 Temperature Control 2,140 2,095 3,820 4,124 All Other (7,121 ) (7,926 ) (14,792 ) (17,267 ) Consolidated $ — $ — $ — $ — Operating Income Engine Management $ 23,138 $ 26,489 $ 40,514 $ 53,774 Temperature Control 4,882 8,262 5,713 12,229 All Other (4,670 ) (5,352 ) (10,570 ) (11,142 ) Consolidated $ 23,350 $ 29,399 $ 35,657 $ 54,861 a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. For the disaggregation of our net sales from contracts with customers by geographic area, major product group and major sales channels for each of our segments, see Note 3, “Net Sales.” |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies Asbestos In 1986, we acquired a brake business, which we subsequently sold in March 1998 and which is accounted for as a discontinued operation. When we originally acquired this brake business, we assumed future liabilities relating to any alleged exposure to asbestos-containing products manufactured by the seller of the acquired brake business. In accordance with the related purchase agreement, we agreed to assume the liabilities for all new claims filed on or after September 2001. Our ultimate exposure will depend upon the number of claims filed against us on or after September 2001 and the amounts paid for indemnity and defense thereof. At June 30, 2018, approximately 1,550 cases were outstanding for which we may be responsible for any related liabilities. Since inception in September 2001 through June 30, 2018, the amounts paid for settled claims are approximately $24.8 million. In evaluating our potential asbestos-related liability, we have considered various factors including, among other things, an actuarial study of the asbestos related liabilities performed by an independent actuarial firm, our settlement amounts and whether there are any co-defendants, the jurisdiction in which lawsuits are filed, and the status and results of settlement discussions. As is our accounting policy, we consider the advice of actuarial consultants with experience in assessing asbestos-related liabilities to estimate our potential claim liability. The methodology used to project asbestos-related liabilities and costs in our actuarial study considered: (1) historical data available from publicly available studies; (2) an analysis of our recent claims history to estimate likely filing rates into the future; (3) an analysis of our currently pending claims; and (4) an analysis of our settlements to date in order to develop average settlement values. The most recent actuarial study was performed as of August 31, 2017. The updated study has estimated an undiscounted liability for settlement payments, excluding legal costs and any potential recovery from insurance carriers, ranging from $35.2 million to $54 million for the period through 2060. The change from the prior year study was a $4.2 million increase for the low end of the range and a $6.3 million increase for the high end of the range. The increase in the estimated undiscounted liability from the prior year study at both the low end and high end of the range reflects our actual experience over the prior twelve months, our historical data and certain assumptions with respect to events that may occur in the future. Based on the information contained in the actuarial study and all other available information considered by us, we have concluded that no amount within the range of settlement payments was more likely than any other and, therefore, in assessing our asbestos liability we compare the low end of the range to our recorded liability to determine if an adjustment is required. Based upon the results of the August 31, 2017 actuarial study, in September 2017 we increased our asbestos liability to $35.2 million, the low end of the range, and recorded an incremental pre-tax provision of $6 million in earnings (loss) from discontinued operations in the accompanying statement of operations. Future legal costs, which are expensed as incurred and reported in loss from discontinued operations in the accompanying statement of operations, are estimated, according to the updated study, to range from $44.3 million to $79.6 million for the period through 2060. We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future. Given the uncertainties associated with projecting such matters into the future and other factors outside our control, we can give no assurance that additional provisions will not be required. We will continue to monitor the circumstances surrounding these potential liabilities in determining whether additional provisions may be necessary. At the present time, however, we do not believe that any additional provisions would be reasonably likely to have a material adverse effect on our liquidity or consolidated financial position. Other Litigation We are currently involved in various other legal claims and legal proceedings (some of which may involve substantial amounts), including claims related to commercial disputes, product liability, employment, and environmental. Although these legal claims and legal proceedings are subject to inherent uncertainties, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the ultimate outcome of these matters will not, either individually or in the aggregate, have a material adverse effect on our . We may at any time determine that settling any of these matters is in our best interests, which settlement may include substantial payments. Warranties We generally warrant our products against certain manufacturing and other defects. These product warranties are provided for specific periods of time of the product depending on the nature of the product. As of June 30, 2018 and 2017, we have accrued $21.7 million and $24.5 million, respectively, for estimated product warranty claims included in accrued customer returns. The accrued product warranty costs are based primarily on historical experience of actual warranty claims. The following table provides the changes in our product warranties (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 20,560 $ 25,609 $ 20,929 $ 24,072 Liabilities accrued for current year sales 23,136 25,693 44,378 51,423 Settlements of warranty claims (21,991 ) (26,774 ) (43,602 ) (50,967 ) Balance, end of period $ 21,705 $ 24,528 $ 21,705 $ 24,528 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Standards that were adopted Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Effective January 1, 2018, we adopted the requirements of ASU 2014-09, Revenue from Contracts with Customers The adoption of the new standard did not result in a material difference between the recognition of revenue under ASU 2014-09 and prior accounting standards. For the majority of our net sales, revenue continues to be recognized when products are shipped from our distribution facilities, or when received by our customers, depending upon the terms of the contract. Under the new revenue standard, (1) the return of cores from customers used in our manufacturing processes for air conditioning compressors, diesel injectors, and diesel pumps is estimated and recorded as unreturned customer inventories at the time of sale, and (2) overstock returns are recorded gross of expected recoveries. Adoption of the new standard resulted in the recording of unreturned customer inventories, and an increase in accrued core liabilities and accrued customer returns, with partially offsetting changes in net sales and cost of sales, and no material change to our net income on an ongoing basis. The cumulative effect of the changes made to our consolidated balance sheet as of January 1, 2018 for the adoption of ASU 2014-09 is as follows (in thousands): Balance at December 31, 2017 Adjustments Due to Adoption of ASU 2014-09 Balance at January 1, 2018 Balance Sheet Unreturned customer inventories $ — $ 19,950 $ 19,950 Accrued customer returns 35,916 6,670 42,586 Accrued core liability 11,899 14,469 26,368 Retained earnings 357,153 (1,189 ) 355,964 The adoption of ASU 2014-09 As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Balance Sheet Unreturned customer inventories $ 18,246 $ — $ 18,246 Prepaid expenses and other current assets 16,458 16,733 (275 ) Accrued customer returns 42,536 36,184 6,352 Accrued core liability 26,138 14,123 12,015 Retained earnings 370,461 370,857 (396 ) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Change As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Statement of Operations Net sales $ 286,636 $ 286,531 $ 105 $ 548,462 $ 546,009 $ 2,453 Cost of sales 205,347 205,781 (434 ) 394,584 393,199 1,385 Earnings from continuing operations before taxes 22,579 22,040 539 34,223 33,155 1,068 Provision for income taxes 5,752 5,615 137 8,799 8,524 275 Net earnings 15,945 15,543 402 23,934 23,141 793 See Note 3 for further information regarding our adoption of ASU 2014-09. The following table provides a brief description of the impact of additional recently adopted accounting pronouncements on our financial statements: Standard Description Date of adoption E ffects on the financial statements or other significant matters ASU 2016-15, Statement of Cash Flows This standard is intended to reduce diversity in practice and to provide guidance as to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. January 1, 2018 The retrospective adoption of the new standard did not result in any changes in our reporting of cash receipts and cash payments in our consolidated statement of cash flows. ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard requires employers that present operating income in their consolidated statement of operations to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses (together with other employee compensation costs). The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in other non-operating income (expense). The new standard requires retrospective reclassification of the effects of the new standard on the statement of operations. January 1, 2018 The adoption of the new standard resulted in the reclassification of all components of net periodic pension cost and net periodic postretirement benefit cost, other than the service cost component, in our statement of operations from selling, general and administrated expenses, to other non-operating income (expense). We adopted the new standard retrospectively, and as such, all prior period amounts have been reclassified for comparative purposes. Standards that are not yet adopted as of June 30, 2018 Leases In February 2016, the FASB issued ASU 2016-02, Leases, To date, we have taken an inventory of all of our operating leases, which consists primarily of real estate, equipment and auto leases, started our review of key lease agreements including contract reviews for embedded leases, and are currently evaluating lease terms, lease payments and appropriate discount rates to use in calculating the right-of-use asset and lease liability. In addition, we are currently evaluating the transition package of practical expedients permitted within the new standard, which among other things, allows us to use hindsight to determine the reasonably certain lease term for existing leases, and allows for the adoption of the new standard at the effective date without adjusting the comparative prior periods presented. We will be continuously assessing the impact of the new standard and the impact on our systems, processes and controls through January 1, 2019, our planned adoption date. The following table provides a brief description of additional recently issued accounting pronouncements that have not yet been adopted as of June 30, 2018, and that could have an impact on our financial statements: Standard Description Date of adoption Effects on the financial statements or other significant matters ASU Simplifying the Test for Goodwill Impairment This standard is intended to simplify the accounting for goodwill impairment. ASU 2017-04 removes Step 2 of the test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. January 1, 2020, with early adoption permitted The new standard should be applied prospectively. We will consider the new standard when performing our annual impairment test and evaluate when we will adopt the new standard. ASU 2016-13, Financial Instruments – Credit Losses This standard creates a single model to measure impairment on financial assets, which includes trade account receivables. An estimate of expected credit losses on trade account receivables over their contractual life will be required to be recorded at inception, based on historical information, current conditions, and reasonable and supportable forecasts. January 1, 2020, with early adoption permitted The new standard requires adoption through a cumulative-effect adjustment to retained earnings as of the effective date, without adjusting period periods. We do not anticipate that the adoption of this standard will have a material impact on manner in which we estimate our allowance for doubtful accounts on trade accounts receivable, or on our consolidated financial statements. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Impacts of Adopting ASU 606 on Consolidated Financial Statement | The cumulative effect of the changes made to our consolidated balance sheet as of January 1, 2018 for the adoption of ASU 2014-09 is as follows (in thousands): Balance at December 31, 2017 Adjustments Due to Adoption of ASU 2014-09 Balance at January 1, 2018 Balance Sheet Unreturned customer inventories $ — $ 19,950 $ 19,950 Accrued customer returns 35,916 6,670 42,586 Accrued core liability 11,899 14,469 26,368 Retained earnings 357,153 (1,189 ) 355,964 The adoption of ASU 2014-09 As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Balance Sheet Unreturned customer inventories $ 18,246 $ — $ 18,246 Prepaid expenses and other current assets 16,458 16,733 (275 ) Accrued customer returns 42,536 36,184 6,352 Accrued core liability 26,138 14,123 12,015 Retained earnings 370,461 370,857 (396 ) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Change As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Statement of Operations Net sales $ 286,636 $ 286,531 $ 105 $ 548,462 $ 546,009 $ 2,453 Cost of sales 205,347 205,781 (434 ) 394,584 393,199 1,385 Earnings from continuing operations before taxes 22,579 22,040 539 34,223 33,155 1,068 Provision for income taxes 5,752 5,615 137 8,799 8,524 275 Net earnings 15,945 15,543 402 23,934 23,141 793 |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Net Sales [Abstract] | |
Disaggregation of Net Sales | The following tables provide disaggregation of net sales information for the three months and six months ended June 30, 2018 and 2017 (in thousands): Three months ended June 30, 2018 (a) Engine Management Temperature Control Other (c) Total Geographic Area: United States $ 182,383 $ 74,267 $ — $ 256,650 Canada 7,288 5,516 2,837 15,641 Mexico 4,447 173 — 4,620 Europe 2,406 147 — 2,553 Other foreign 6,905 267 — 7,172 Total $ 203,429 $ 80,370 $ 2,837 $ 286,636 Major Product Group: Ignition, emissions and fuel system parts $ 162,462 $ — $ 1,191 $ 163,653 Wire and cable 40,967 — 158 41,125 Compressors — 46,940 818 47,758 Other climate control parts — 33,430 670 34,100 Total $ 203,429 $ 80,370 $ 2,837 $ 286,636 Major Sales Channel: Aftermarket $ 171,864 $ 70,679 $ 2,837 $ 245,380 OE/OES 25,801 9,296 — 35,097 Export 5,764 395 — 6,159 Total $ 203,429 $ 80,370 $ 2,837 $ 286,636 Three months ended June 30, 2017 (a)(b) Engine Management Temperature Control Other (c) Total Geographic Area: United States $ 201,142 $ 80,874 $ — $ 282,016 Canada 8,056 5,554 1,989 15,599 Mexico 5,056 208 — 5,264 Europe 3,151 320 — 3,471 Other foreign 5,944 435 — 6,379 Total $ 223,349 $ 87,391 $ 1,989 $ 312,729 Major Product Group: Ignition, emissions and fuel system parts $ 178,105 $ — $ 840 $ 178,945 Wire and cable 45,244 — 150 45,394 Compressors — 49,644 601 50,245 Other climate control parts — 37,747 398 38,145 Total $ 223,349 $ 87,391 $ 1,989 $ 312,729 Major Sales Channel: Aftermarket $ 191,846 $ 76,799 $ 1,989 $ 270,634 OE/OES 26,168 9,810 — 35,978 Export 5,335 782 — 6,117 Total $ 223,349 $ 87,391 $ 1,989 $ 312,729 Six months ended June 30, 2018 (a) Engine Management Temperature Control Other (c) Total Geographic Area: United States $ 356,967 $ 129,838 $ — $ 486,805 Canada 15,092 9,448 4,944 29,484 Mexico 12,669 385 — 13,054 Europe 5,886 311 — 6,197 Other foreign 12,303 619 — 12,922 Total $ 402,917 $ 140,601 $ 4,944 $ 548,462 Major Product Group: Ignition, emissions and fuel system parts $ 323,539 $ — $ 2,853 $ 326,392 Wire and cable 79,378 — 349 79,727 Compressors — 76,838 762 77,600 Other climate control parts — 63,763 980 64,743 Total $ 402,917 $ 140,601 $ 4,944 $ 548,462 Major Sales Channel: Aftermarket $ 341,174 $ 122,309 $ 4,944 $ 468,427 OE/OES 50,857 17,397 — 68,254 Export 10,886 895 — 11,781 Total $ 402,917 $ 140,601 $ 4,944 $ 548,462 Six months ended June 30, 2017 (a)(b) Engine Management Temperature Control Other (c) Total Geographic Area: United States $ 387,044 $ 145,913 $ — $ 532,957 Canada 17,823 9,910 2,763 30,496 Mexico 12,087 432 — 12,519 Europe 6,965 524 — 7,489 Other foreign 10,744 902 — 11,646 Total $ 434,663 $ 157,681 $ 2,763 $ 595,107 Major Product Group: Ignition, emissions and fuel system parts $ 343,258 $ — $ 1,564 $ 344,822 Wire and cable 91,405 — 376 91,781 Compressors — 87,545 299 87,844 Other climate control parts — 70,136 524 70,660 Total $ 434,663 $ 157,681 $ 2,763 $ 595,107 Major Sales Channel: Aftermarket $ 371,611 $ 138,598 $ 2,763 $ 512,972 OE/OES 52,672 17,799 — 70,471 Export 10,380 1,284 — 11,664 Total $ 434,663 $ 157,681 $ 2,763 $ 595,107 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. (b) Amounts have not been restated and are reported under accounting standards in effect in the period presented as we adopted ASU 2014-09, Revenue from Contracts with Customers (c) Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments as well as sales from our Canadian business unit that does not meet the criteria of a reportable operating segment. |
Restructuring and Integration27
Restructuring and Integration Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring Reserve [Abstract] | |
Restructuring and Integration Expense (Income) | Activity, by segment, for the six months ended June 30, 2018 related to our wire and cable relocation program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31 $ 392 $ — $ — $ 392 Restructuring and integration costs: Amounts provided for during 2018 1,392 — — 1,392 Non-cash usage, including asset write-downs (169 ) — — (169 ) Cash payments (1,641 ) — — (1,641 ) Foreign currency exchange rate changes 26 — — 26 Exit activity liability at June 30, 2018 $ — $ — $ — $ — |
Plant Rationalization Program [Member] | |
Restructuring Reserve [Abstract] | |
Restructuring and Integration Expense (Income) | Activity, by segment, for the six months ended June 30, 2018 related to our plant rationalization program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31 $ — $ 1,476 $ — $ 1,476 Restructuring and integration costs: Amounts provided for during 2018 — 204 — 204 Cash payments — (1,204 ) — (1,204 ) Exit activity liability at June 30 $ — $ 476 $ — $ 476 |
Orlando Plant Rationalization Program [Member] | |
Restructuring Reserve [Abstract] | |
Restructuring and Integration Expense (Income) | Activity, by segment, for the six months ended June 30, 2018 related to our Orlando plant rationalization program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31 $ 986 $ — $ — $ 986 Restructuring and integration costs: Amounts provided for during 2018 1,471 — — 1,471 Non-cash usage, including asset write-downs (12 ) — — (12 ) Cash payments (1,739 ) — — (1,739 ) Exit activity liability at June 30, 2018 $ 706 $ — $ — $ 706 |
Wire and Cable Relocation [Member] | |
Restructuring Reserve [Abstract] | |
Restructuring and Integration Expense (Income) | The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of December 31, 2017 and June 30, 2018 and activity for the six months ended June 30, 2018 consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2017 $ 2,854 $ — $ 2,854 Restructuring and integration costs: Amounts provided for during 2018 50 3,017 3,067 Non-cash usage, including asset write-downs — (181 ) (181 ) Cash payments (1,748 ) (2,836 ) (4,584 ) Foreign currency exchange rate changes 26 — 26 Exit activity liability at June 30 $ 1,182 $ — $ 1,182 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventories [Abstract] | |
Inventories | Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) or market, consist of the following: June 30, 2018 December 31, 2017 (In thousands) Finished goods $ 218,000 $ 209,800 Work in process 9,029 7,536 Raw materials 104,424 109,075 Subtotal 331,453 326,411 Unreturned customer inventories (1) 18,246 — Total inventories $ 349,699 $ 326,411 (1) The adoption of ASU 2014-09 using the modified retrospective method resulted in the recording of unreturned customer inventories commencing on January 1, 2018, see Note 2, “Summary of Significant Accounting Policies” for additional information. |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Acquired Intangible Assets [Abstract] | |
Acquired Identifiable Intangible Assets | Acquired identifiable intangible assets consist of the following: June 30, 2018 December 31, 2017 (In thousands) Customer relationships $ 87,226 $ 87,290 Trademarks and trade names 6,800 6,800 Non-compete agreements 3,192 3,193 Patents 723 723 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 98,901 98,966 Less accumulated amortization (1) (47,668 ) (43,853 ) Net acquired intangible assets $ 51,233 $ 55,113 (1) Applies to all intangible assets, except for trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being amortized. |
Credit Facilities and Long-Te30
Credit Facilities and Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Summary of Total Debt Outstanding | Total debt outstanding is summarized as follows: June 30, 2018 December 31, 2017 (In thousands) Revolving credit facilities $ 88,528 $ 57,000 Other (1) 5,203 4,778 Total debt $ 93,731 $ 61,778 Current maturities of debt $ 93,697 $ 61,699 Long-term debt 34 79 Total debt $ 93,731 $ 61,778 (1) Other includes borrowings under our Polish overdraft facility of Zloty 19.1 million (approximately $5.1 million). |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in Accumulated Other Comprehensive Income | Changes in Accumulated Other Comprehensive Income by Component (in thousands) Three Months Ended June 30, 2018 Foreign Currency Translation Adjustments Unrecognized Postretirement Benefit Costs (Credit) Total Balance at March 31, 2018 $ (2,006 ) $ 111 $ (1,895 ) Other comprehensive income before reclassifications (5,935 ) 7 (5,928 ) Amounts reclassified from accumulated other comprehensive income — (7 ) (7 ) Other comprehensive income, net (5,935 ) — (5,935 ) Balance at June 30, 2018 $ (7,941 ) $ 111 $ (7,830 ) Six Months Ended June 30, 2018 Foreign Currency Translation Adjustments Unrecognized Postretirement Benefit Costs (Credit) Total Balance at December 31, 2017 $ (4,225 ) $ 116 $ (4,109 ) Other comprehensive income before reclassifications (3,716 ) 7 (3,709 ) Amounts reclassified from accumulated other comprehensive income — (12 ) (12 ) Other comprehensive income, net (3,716 ) (5 ) (3,721 ) Balance at June 30 $ (7,941 ) $ 111 $ (7,830 ) |
Reclassifications out of Accumulated Other Comprehensive Income | Reclassifications Out of Accumulated Other Comprehensive Income (in thousands) Details About Accumulated Other Comprehensive Income Components Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Amortization of postretirement benefit plans: Prior service benefit (1) $ — $ — Unrecognized gain (1) (12 ) (21 ) Total before income tax (12 ) (21 ) Income tax expense 5 9 Total reclassifications for the period $ (7 ) $ (12 ) (1) These accumulated other comprehensive income components are included in the computation of net periodic postretirement benefit costs, which are included in other non-operating income, net in our consolidated statements of operations (see Note 12 for additional details). |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stock-Based Compensation Plans [Abstract] | |
Restricted and Performance-based Share Activity | Our restricted and performance-based share activity was as follows for the six months ended June 30, 2018: Shares Weighted Average Grant Date Fair Value Per Share Balance at December 31, 2017 853,958 $ 33.25 Granted 9,129 37.53 Vested (25,845 ) 35.38 Forfeited (3,950 ) 42.82 Balance at June 30, 2018 833,292 $ 33.18 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Employee Benefits [Abstract] | |
Components of Net Periodic Benefit Cost for Postretirement Benefit Plans | The components of net periodic benefit cost for our postretirement benefit plans for the three months and six months ended June 30, 2018 and 2017 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Postretirement benefits 2018 2017 (1) 2018 2017 (1) Service cost $ — $ — $ — $ — Interest cost 1 2 3 4 Amortization of prior service cost — — — — Actuarial net gain (12 ) (271 ) (21 ) (330 ) Net periodic benefit cost (credit) $ (11 ) $ (269 ) $ (18 ) $ (326 ) (1) Net periodic benefit cost (credit) has been reclassified from selling, general and administrative expenses to other non-operating income (expense), net on our consolidated statement of operations upon adoption of ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliations of the Earnings Available to Common Stockholders and the Shares used in Calculating Basic and Dilutive Net Earnings per Common Share | The following are reconciliations of the earnings available to common stockholders and the shares used in calculating basic and dilutive net earnings per common share (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic Net Earnings Per Common Share: Earnings from continuing operations $ 16,827 $ 18,261 $ 25,424 $ 34,628 Loss from discontinued operations (882 ) (497 ) (1,490 ) (1,130 ) Net earnings available to common stockholders $ 15,945 $ 17,764 $ 23,934 $ 33,498 Weighted average common shares outstanding 22,471 22,820 22,485 22,833 Earnings from continuing operations per common share $ 0.75 $ 0.80 $ 1.13 $ 1.52 Loss from discontinued operations per common share (0.04 ) (0.02 ) (0.07 ) (0.05 ) Basic net earnings per common share $ 0.71 $ 0.78 $ 1.06 $ 1.47 Diluted Net Earnings Per Common Share: Earnings from continuing operations $ 16,827 $ 18,261 $ 25,424 $ 34,628 Loss from discontinued operations (882 ) (497 ) (1,490 ) (1,130 ) Net earnings available to common stockholders $ 15,945 $ 17,764 $ 23,934 $ 33,498 Weighted average common shares outstanding 22,471 22,820 22,485 22,833 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock and performance-based stock 487 509 477 499 Weighted average common shares outstanding – Diluted 22,958 23,329 22,962 23,332 Earnings from continuing operations per common share $ 0.73 $ 0.78 $ 1.11 $ 1.48 Loss from discontinued operations per common share (0.04 ) (0.02 ) (0.07 ) (0.04 ) Diluted net earnings per common share $ 0.69 $ 0.76 $ 1.04 $ 1.44 |
Anti-dilutive Securities Excluded from Computation of Earnings per Share | The shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Restricted and performance-based shares 251 228 265 240 |
Industry Segments (Tables)
Industry Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Industry Segments [Abstract] | |
Sales and Operating Income by Operating Segments | The following tables show our net sales, intersegment revenue and operating income by our operating segments (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net Sales (a) Engine Management $ 203,429 $ 223,349 $ 402,917 $ 434,663 Temperature Control 80,370 87,391 140,601 157,681 All Other 2,837 1,989 4,944 2,763 Consolidated $ 286,636 $ 312,729 $ 548,462 $ 595,107 Intersegment Revenue (a) Engine Management $ 4,981 $ 5,831 $ 10,972 $ 13,143 Temperature Control 2,140 2,095 3,820 4,124 All Other (7,121 ) (7,926 ) (14,792 ) (17,267 ) Consolidated $ — $ — $ — $ — Operating Income Engine Management $ 23,138 $ 26,489 $ 40,514 $ 53,774 Temperature Control 4,882 8,262 5,713 12,229 All Other (4,670 ) (5,352 ) (10,570 ) (11,142 ) Consolidated $ 23,350 $ 29,399 $ 35,657 $ 54,861 a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies [Abstract] | |
Changes in Product Warranties | The following table provides the changes in our product warranties (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 20,560 $ 25,609 $ 20,929 $ 24,072 Liabilities accrued for current year sales 23,136 25,693 44,378 51,423 Settlements of warranty claims (21,991 ) (26,774 ) (43,602 ) (50,967 ) Balance, end of period $ 21,705 $ 24,528 $ 21,705 $ 24,528 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 30, 2018 |
Basis of Presentation [Abstract] | |
Equity ownership in entities included in consolidated financial statements, minimum | 50.00% |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||||
Balance Sheet [Abstract] | ||||||||
Unreturned customer inventories | $ 18,246 | [1] | $ 18,246 | [1] | $ 0 | |||
Prepaid expenses and other current assets | 16,458 | 16,458 | 12,300 | |||||
Accrued customer returns | 42,536 | 42,536 | 35,916 | |||||
Accrued core liability | 26,138 | 26,138 | 11,899 | |||||
Retained earnings | 370,461 | 370,461 | 357,153 | |||||
Statement of Operations [Abstract] | ||||||||
Net sales | [2] | 286,636 | $ 312,729 | 548,462 | $ 595,107 | |||
Cost of sales | 205,347 | 222,063 | 394,584 | 420,331 | ||||
Earnings from continuing operations before taxes | 22,579 | 29,687 | 34,223 | 55,561 | ||||
Provision for income taxes | 5,752 | 11,426 | 8,799 | 20,933 | ||||
Net earnings | 15,945 | $ 17,764 | 23,934 | $ 33,498 | ||||
ASC 606 [Member] | ||||||||
Balance Sheet [Abstract] | ||||||||
Unreturned customer inventories | 19,950 | |||||||
Accrued customer returns | 42,586 | |||||||
Accrued core liability | 26,368 | |||||||
Retained earnings | 355,964 | |||||||
Adjustments Due to Adoption of ASU 2014-09 [Member] | ASC 606 [Member] | ||||||||
Balance Sheet [Abstract] | ||||||||
Unreturned customer inventories | 18,246 | 18,246 | 19,950 | |||||
Prepaid expenses and other current assets | (275) | (275) | ||||||
Accrued customer returns | 6,352 | 6,352 | 6,670 | |||||
Accrued core liability | 12,015 | 12,015 | 14,469 | |||||
Retained earnings | (396) | (396) | $ (1,189) | |||||
Statement of Operations [Abstract] | ||||||||
Net sales | 105 | 2,453 | ||||||
Cost of sales | (434) | 1,385 | ||||||
Earnings from continuing operations before taxes | 539 | 1,068 | ||||||
Provision for income taxes | 137 | 275 | ||||||
Net earnings | 402 | 793 | ||||||
Balance Without Adoption of ASU 2014-09 [Member] | ASC 606 [Member] | ||||||||
Balance Sheet [Abstract] | ||||||||
Unreturned customer inventories | 0 | 0 | ||||||
Prepaid expenses and other current assets | 16,733 | 16,733 | ||||||
Accrued customer returns | 36,184 | 36,184 | ||||||
Accrued core liability | 14,123 | 14,123 | ||||||
Retained earnings | 370,857 | 370,857 | ||||||
Statement of Operations [Abstract] | ||||||||
Net sales | 286,531 | 546,009 | ||||||
Cost of sales | 205,781 | 393,199 | ||||||
Earnings from continuing operations before taxes | 22,040 | 33,155 | ||||||
Provision for income taxes | 5,615 | 8,524 | ||||||
Net earnings | $ 15,543 | $ 23,141 | ||||||
[1] | The adoption of ASU 2014-09 using the modified retrospective method resulted in the recording of unreturned customer inventories commencing on January 1, 2018, see Note 2, "Summary of Significant Accounting Policies" for additional information. | |||||||
[2] | Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Net Sales (Details)
Net Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | [2] | Jun. 30, 2018 | Jun. 30, 2017 | [2] | ||
Product Warranty and Overstock Returns [Abstract] | |||||||
Product warranty period | 90 days | ||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | $ 286,636 | $ 312,729 | $ 548,462 | $ 595,107 | ||
Aftermarket [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 245,380 | 270,634 | 468,427 | 512,972 | ||
OE/OES [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 35,097 | 35,978 | 68,254 | 70,471 | ||
Export [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 6,159 | 6,117 | 11,781 | 11,664 | ||
Ignition, Emissions and Fuel System Parts [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 163,653 | 178,945 | 326,392 | 344,822 | ||
Wire and Cable [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 41,125 | 45,394 | 79,727 | 91,781 | ||
Compressors [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 47,758 | 50,245 | 77,600 | 87,844 | ||
Other Climate Control Parts [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 34,100 | 38,145 | 64,743 | 70,660 | ||
United States [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 256,650 | 282,016 | 486,805 | 532,957 | ||
Canada [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 15,641 | 15,599 | 29,484 | 30,496 | ||
Mexico [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 4,620 | 5,264 | 13,054 | 12,519 | ||
Europe [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 2,553 | 3,471 | 6,197 | 7,489 | ||
Other Foreign [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 7,172 | 6,379 | 12,922 | 11,646 | ||
Engine Management [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 203,429 | 223,349 | 402,917 | 434,663 | ||
Engine Management [Member] | Aftermarket [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 171,864 | 191,846 | 341,174 | 371,611 | ||
Engine Management [Member] | OE/OES [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 25,801 | 26,168 | 50,857 | 52,672 | ||
Engine Management [Member] | Export [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 5,764 | 5,335 | 10,886 | 10,380 | ||
Engine Management [Member] | Ignition, Emissions and Fuel System Parts [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 162,462 | 178,105 | 323,539 | 343,258 | ||
Engine Management [Member] | Wire and Cable [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 40,967 | 45,244 | 79,378 | 91,405 | ||
Engine Management [Member] | Compressors [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | 0 | ||
Engine Management [Member] | Other Climate Control Parts [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | 0 | ||
Engine Management [Member] | United States [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 182,383 | 201,142 | 356,967 | 387,044 | ||
Engine Management [Member] | Canada [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 7,288 | 8,056 | 15,092 | 17,823 | ||
Engine Management [Member] | Mexico [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 4,447 | 5,056 | 12,669 | 12,087 | ||
Engine Management [Member] | Europe [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 2,406 | 3,151 | 5,886 | 6,965 | ||
Engine Management [Member] | Other Foreign [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 6,905 | 5,944 | 12,303 | 10,744 | ||
Temperature Control [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 80,370 | 87,391 | 140,601 | 157,681 | ||
Temperature Control [Member] | Aftermarket [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 70,679 | 76,799 | 122,309 | 138,598 | ||
Temperature Control [Member] | OE/OES [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 9,296 | 9,810 | 17,397 | 17,799 | ||
Temperature Control [Member] | Export [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 395 | 782 | 895 | 1,284 | ||
Temperature Control [Member] | Ignition, Emissions and Fuel System Parts [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | 0 | ||
Temperature Control [Member] | Wire and Cable [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | 0 | ||
Temperature Control [Member] | Compressors [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 46,940 | 49,644 | 76,838 | 87,545 | ||
Temperature Control [Member] | Other Climate Control Parts [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 33,430 | 37,747 | 63,763 | 70,136 | ||
Temperature Control [Member] | United States [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 74,267 | 80,874 | 129,838 | 145,913 | ||
Temperature Control [Member] | Canada [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 5,516 | 5,554 | 9,448 | 9,910 | ||
Temperature Control [Member] | Mexico [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 173 | 208 | 385 | 432 | ||
Temperature Control [Member] | Europe [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 147 | 320 | 311 | 524 | ||
Temperature Control [Member] | Other Foreign [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1] | 267 | 435 | 619 | 902 | ||
Other [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | 2,837 | 1,989 | 4,944 | 2,763 | ||
Other [Member] | Aftermarket [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | 2,837 | 1,989 | 4,944 | 2,763 | ||
Other [Member] | OE/OES [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | 0 | 0 | 0 | 0 | ||
Other [Member] | Export [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | 0 | 0 | 0 | 0 | ||
Other [Member] | Ignition, Emissions and Fuel System Parts [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | 1,191 | 840 | 2,853 | 1,564 | ||
Other [Member] | Wire and Cable [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | 158 | 150 | 349 | 376 | ||
Other [Member] | Compressors [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | 818 | 601 | 762 | 299 | ||
Other [Member] | Other Climate Control Parts [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | 670 | 398 | 980 | 524 | ||
Other [Member] | United States [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | 0 | 0 | 0 | 0 | ||
Other [Member] | Canada [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | 2,837 | 1,989 | 4,944 | 2,763 | ||
Other [Member] | Mexico [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | 0 | 0 | 0 | 0 | ||
Other [Member] | Europe [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | 0 | 0 | 0 | 0 | ||
Other [Member] | Other Foreign [Member] | |||||||
Disaggregation of Revenue [Abstract] | |||||||
Disaggregation of net sales | [1],[3] | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1] | Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. | ||||||
[2] | Amounts have not been restated and are reported under accounting standards in effect in the period presented as we adopted ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective method. | ||||||
[3] | Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments as well as sales from our Canadian business unit that does not meet the criteria of a reportable operating segment. |
Business Acquisitions and Inv40
Business Acquisitions and Investments (Details) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jan. 31, 2018USD ($) | Jun. 30, 2018USD ($)Installment | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Nov. 30, 2017USD ($) | Apr. 30, 2014USD ($) | |
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. [Member] | |||||||
Business Combination, Description [Abstract] | |||||||
Percentage of equity interest acquired | 65.00% | 15.00% | 15.00% | 50.00% | |||
Equity in joint ventures | $ 4.2 | ¥ 26,475,583 | $ 14 | ||||
Purchase price | $ 2.8 | ||||||
Number of cash installments | Installment | 6 | ||||||
Foshan Guangdong Automotive Air Conditioning Co., Ltd [Member] | |||||||
Business Combination, Description [Abstract] | |||||||
Percentage of equity interest acquired | 50.00% | ||||||
Equity in joint ventures | $ 12.5 | ||||||
Purchase price | $ 5.7 | $ 6.8 |
Restructuring and Integration41
Restructuring and Integration Expenses (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | $ 2,854 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 3,067 |
Non-cash usage, including asset write-downs | (181) |
Cash payments | (4,584) |
Foreign currency exchange rate changes | 26 |
Exit activity liability, end of period | 1,182 |
Plant Rationalization Program [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 1,476 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 204 |
Cash payments | (1,204) |
Exit activity liability, end of period | 476 |
Orlando Plant Rationalization Program [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 986 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 1,471 |
Non-cash usage, including asset write-downs | (12) |
Cash payments | (1,739) |
Exit activity liability, end of period | 706 |
Wire and Cable Relocation [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 392 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 1,392 |
Non-cash usage, including asset write-downs | (169) |
Cash payments | (1,641) |
Foreign currency exchange rate changes | 26 |
Exit activity liability, end of period | 0 |
Workforce Reduction [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 2,854 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 50 |
Non-cash usage, including asset write-downs | 0 |
Cash payments | (1,748) |
Foreign currency exchange rate changes | 26 |
Exit activity liability, end of period | 1,182 |
Other Exit Costs [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 0 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 3,017 |
Non-cash usage, including asset write-downs | (181) |
Cash payments | (2,836) |
Foreign currency exchange rate changes | 0 |
Exit activity liability, end of period | 0 |
Engine Management [Member] | Plant Rationalization Program [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 0 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 0 |
Cash payments | 0 |
Exit activity liability, end of period | 0 |
Engine Management [Member] | Orlando Plant Rationalization Program [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 986 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 1,471 |
Non-cash usage, including asset write-downs | (12) |
Cash payments | (1,739) |
Exit activity liability, end of period | 706 |
Engine Management [Member] | Wire and Cable Relocation [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 392 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 1,392 |
Non-cash usage, including asset write-downs | (169) |
Cash payments | (1,641) |
Foreign currency exchange rate changes | 26 |
Exit activity liability, end of period | 0 |
Temperature Control [Member] | Plant Rationalization Program [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 1,476 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 204 |
Cash payments | (1,204) |
Exit activity liability, end of period | 476 |
Temperature Control [Member] | Orlando Plant Rationalization Program [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 0 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 0 |
Non-cash usage, including asset write-downs | 0 |
Cash payments | 0 |
Exit activity liability, end of period | 0 |
Temperature Control [Member] | Wire and Cable Relocation [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 0 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 0 |
Non-cash usage, including asset write-downs | 0 |
Cash payments | 0 |
Foreign currency exchange rate changes | 0 |
Exit activity liability, end of period | 0 |
Other [Member] | Plant Rationalization Program [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 0 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 0 |
Cash payments | 0 |
Exit activity liability, end of period | 0 |
Other [Member] | Orlando Plant Rationalization Program [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 0 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 0 |
Non-cash usage, including asset write-downs | 0 |
Cash payments | 0 |
Exit activity liability, end of period | 0 |
Other [Member] | Wire and Cable Relocation [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 0 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2018 | 0 |
Non-cash usage, including asset write-downs | 0 |
Cash payments | 0 |
Foreign currency exchange rate changes | 0 |
Exit activity liability, end of period | $ 0 |
Sale of Receivables (Details)
Sale of Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Sale of Receivables [Abstract] | ||||
Sale of receivables to financial institutions | $ 184.1 | $ 224.3 | $ 341.6 | $ 404.1 |
Charge related to sale of receivables | $ 6.3 | $ 6.4 | $ 11.7 | $ 11.6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Inventories [Abstract] | |||
Finished goods | $ 218,000 | $ 209,800 | |
Work in process | 9,029 | 7,536 | |
Raw materials | 104,424 | 109,075 | |
Subtotal | 331,453 | 326,411 | |
Unreturned customer inventories | 18,246 | [1] | 0 |
Total inventories | $ 349,699 | $ 326,411 | |
[1] | The adoption of ASU 2014-09 using the modified retrospective method resulted in the recording of unreturned customer inventories commencing on January 1, 2018, see Note 2, "Summary of Significant Accounting Policies" for additional information. |
Acquired Intangible Assets (Det
Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||
Indefinite Lived Intangible Assets [Abstract] | ||||||
Total acquired intangible assets | $ 98,901 | $ 98,901 | $ 98,966 | |||
Less accumulated amortization | [1] | (47,668) | (47,668) | (43,853) | ||
Net acquired intangible assets | 51,233 | 51,233 | 55,113 | |||
Amortization of acquired intangible assets [Abstract] | ||||||
Amortization expense | 1,900 | $ 2,100 | 3,800 | $ 4,200 | ||
Estimated amortization expense, remainder of 2018 | 3,700 | 3,700 | ||||
Estimated amortization expense in year 2019 | 6,300 | 6,300 | ||||
Estimated amortization expense in year 2020 | 5,900 | 5,900 | ||||
Estimated amortization expense in year 2021 | 4,600 | 4,600 | ||||
Estimated amortization expense in years 2022 through 2031 | 25,500 | 25,500 | ||||
Customer Relationships [Member] | ||||||
Indefinite Lived Intangible Assets [Abstract] | ||||||
Total acquired intangible assets | 87,226 | 87,226 | 87,290 | |||
Trademarks and Trade Names [Member] | ||||||
Indefinite Lived Intangible Assets [Abstract] | ||||||
Total acquired intangible assets | 6,800 | 6,800 | 6,800 | |||
Intangible assets acquired [Abstract] | ||||||
Amount of acquired indefinite-lived intangible assets | 5,200 | 5,200 | ||||
Non-compete Agreements [Member] | ||||||
Indefinite Lived Intangible Assets [Abstract] | ||||||
Total acquired intangible assets | 3,192 | 3,192 | 3,193 | |||
Patents [Member] | ||||||
Indefinite Lived Intangible Assets [Abstract] | ||||||
Total acquired intangible assets | 723 | 723 | 723 | |||
Supply Agreements [Member] | ||||||
Indefinite Lived Intangible Assets [Abstract] | ||||||
Total acquired intangible assets | 800 | 800 | 800 | |||
Leaseholds [Member] | ||||||
Indefinite Lived Intangible Assets [Abstract] | ||||||
Total acquired intangible assets | $ 160 | $ 160 | $ 160 | |||
[1] | Applies to all intangible assets, except for trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being amortized. |
Credit Facilities and Long-Te45
Credit Facilities and Long-Term Debt, Total Debt Outstanding (Details) $ in Thousands, zł in Millions | Jun. 30, 2018USD ($) | Jun. 30, 2018PLN (zł) | Dec. 31, 2017USD ($) | |
Credit Facilities and Long-Term Debt [Abstract] | ||||
Revolving credit facilities | $ 88,528 | $ 57,000 | ||
Other | [1] | 5,203 | 4,778 | |
Total debt | 93,731 | 61,778 | ||
Current maturities of debt | 93,697 | 61,699 | ||
Long-term debt | 34 | $ 79 | ||
HSBC Bank Polska S.A. [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Overdraft facility | $ 5,100 | zł 19.1 | ||
[1] | Other includes borrowings under our Polish overdraft facility of Zloty 19.1 million (approximately $5.1 million). |
Credit Facilities and Long-Te46
Credit Facilities and Long-Term Debt, Revolving Credit Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fixed Assets Not Included in Borrowing Base [Member] | Maximum [Member] | |||
Line of Credit Facility [Abstract] | |||
Borrowing base | $ 25,000 | ||
Borrowing base percentage | 10.00% | ||
Fixed Assets Included in Borrowing Base [Member] | |||
Line of Credit Facility [Abstract] | |||
Borrowing base | $ 31,250 | ||
Borrowing base percentage | 12.50% | ||
JPMorgan Chase Bank Credit Agreement [Member] | |||
Line of Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 250,000 | ||
Line of credit facility, additional borrowing capacity | $ 50,000 | ||
Maturity date | Oct. 31, 2020 | ||
Additional available borrowing capacity | $ 158,300 | ||
Outstanding borrowings under credit facility | $ 88,500 | $ 57,000 | |
Weighted average interest rate | 3.50% | 2.70% | |
JPMorgan Chase Bank Credit Agreement [Member] | LIBOR [Member] | Minimum [Member] | |||
Line of Credit Facility [Abstract] | |||
Margin on variable rate | 1.25% | ||
JPMorgan Chase Bank Credit Agreement [Member] | LIBOR [Member] | Maximum [Member] | |||
Line of Credit Facility [Abstract] | |||
Margin on variable rate | 1.75% | ||
JPMorgan Chase Bank Credit Agreement [Member] | Alternate Base Rate [Member] | |||
Line of Credit Facility [Abstract] | |||
Outstanding borrowings under credit facility | $ 8,500 | ||
Weighted average interest rate | 5.30% | ||
Average daily loan balance outstanding | $ 1,900 | $ 5,200 | $ 3,800 |
JPMorgan Chase Bank Credit Agreement [Member] | Alternate Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Abstract] | |||
Margin on variable rate | 0.25% | ||
JPMorgan Chase Bank Credit Agreement [Member] | Alternate Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Abstract] | |||
Margin on variable rate | 0.75% | ||
JPMorgan Chase Bank Credit Agreement [Member] | Direct Borrowings [Member] | |||
Line of Credit Facility [Abstract] | |||
Outstanding borrowings under credit facility | $ 80,000 | $ 57,000 | |
Weighted average interest rate | 3.30% | ||
Line of Credit [Member] | |||
Line of Credit Facility [Abstract] | |||
Coverage ratio | 1 | ||
Line of Credit [Member] | Pay Cash Dividend [Member] | |||
Line of Credit Facility [Abstract] | |||
Agreement permissions | $ 20,000 | ||
Line of Credit [Member] | Stock Repurchase [Member] | |||
Line of Credit Facility [Abstract] | |||
Agreement permissions | 20,000 | ||
Line of Credit [Member] | Stock Repurchase [Member] | Minimum [Member] | |||
Line of Credit Facility [Abstract] | |||
Borrowing base | 25,000 | ||
Line of Credit [Member] | The Credit Agreement Also Permits Acquisitions, Permissible Debt, Cash Dividend Payments And Stock Repurchases [Member] | Minimum [Member] | |||
Line of Credit Facility [Abstract] | |||
Agreement permissions | 20,000 | ||
Line of Credit [Member] | Canada [Member] | |||
Line of Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 10,000 |
Credit Facilities and Long-Te47
Credit Facilities and Long-Term Debt, Polish Overdraft Facility (Details) - HSBC Bank Polska S.A. [Member] zł in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018PLN (zł) | Dec. 31, 2017PLN (zł) | |
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | $ 8 | zł 30 | ||
Overdraft facility expiration date | Dec. 31, 2018 | |||
Overdraft facility | $ 5.1 | zł 19.1 | ||
1M WIBOR [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable rate | 0.75% |
Credit Facilities and Long-Te48
Credit Facilities and Long-Term Debt, Deferred Financing Costs (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Deferred Financing Costs [Abstract] | ||
Deferred financing costs | $ 0.8 | $ 1 |
Amortization of financing costs reminder of 2018 | 0.2 | |
2,019 | 0.3 | |
2,020 | $ 0.3 |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Balance at beginning of period | $ 453,654 | |||
Other comprehensive income before reclassifications | $ (5,928) | (3,709) | ||
Amounts reclassified from accumulated other comprehensive income | (7) | (12) | ||
Total other comprehensive income (loss), net of tax | (5,935) | $ 2,853 | (3,721) | $ 5,541 |
Balance at end of period | 462,370 | 462,370 | ||
AOCI Attributable to Parent [Member] | ||||
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Balance at beginning of period | (1,895) | (4,109) | ||
Total other comprehensive income (loss), net of tax | (3,721) | |||
Balance at end of period | (7,830) | (7,830) | ||
Foreign Currency Translation Adjustments [Member] | ||||
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Balance at beginning of period | (2,006) | (4,225) | ||
Other comprehensive income before reclassifications | (5,935) | (3,716) | ||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | (5,935) | (3,716) | ||
Balance at end of period | (7,941) | (7,941) | ||
Unrecognized Postretirement Benefit Costs (Credit) [Member] | ||||
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Balance at beginning of period | 111 | 116 | ||
Other comprehensive income before reclassifications | 7 | 7 | ||
Amounts reclassified from accumulated other comprehensive income | (7) | (12) | ||
Total other comprehensive income (loss), net of tax | 0 | (5) | ||
Balance at end of period | $ 111 | $ 111 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Income, Reclassified (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Amortization of postretirement benefit plans [Abstract] | |||||
Unrecognized gain | $ (12) | $ (271) | $ (21) | $ (330) | |
Income tax expense | 0 | $ (81) | 4 | $ (57) | |
Total reclassifications for the period | (7) | (12) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Amortization of postretirement benefit plans [Abstract] | |||||
Prior service benefit | [1] | 0 | 0 | ||
Unrecognized gain | [1] | (12) | (21) | ||
Total before income tax | (12) | (21) | |||
Income tax expense | 5 | 9 | |||
Total reclassifications for the period | $ (7) | $ (12) | |||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic postretirement benefit costs, which are included in other non-operating income, net in our consolidated statements of operations (see Note 12 for additional details). |
Stock-Based Compensation Plan51
Stock-Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Additional Disclosures [Abstract] | ||
Compensation expense, gross | $ 3,896 | $ 4,005 |
Performance-based Shares [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Measuring period for performance-based shares | 3 years | |
Restricted Shares [Member] | Employees [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Estimated forfeitures | 5.00% | |
Restricted Shares [Member] | Executives [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Estimated forfeitures | 0.00% | |
Restricted Shares [Member] | Directors [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Estimated forfeitures | 0.00% | |
Restricted Shares [Member] | Age 60 [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Vesting percentage | 25.00% | |
Restricted Shares [Member] | Age 63 [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Vesting percentage | 25.00% | |
Restricted Shares [Member] | Age 65 [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Vesting percentage | 100.00% | |
Restricted and Performance-Based Shares [Member] | ||
Restricted and performance-based stock, shares [Roll Forward] | ||
Beginning of period (in shares) | 853,958 | |
Granted (in shares) | 9,129 | |
Vested (in shares) | (25,845) | |
Forfeited (in shares) | (3,950) | |
End of period (in shares) | 833,292 | |
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward] | ||
Beginning of period (in dollars per share) | $ 33.25 | |
Granted (in dollars per share) | 37.53 | |
Vested (in dollars per share) | 35.38 | |
Forfeited (in dollars per share) | 42.82 | |
End of period (in dollars per share) | $ 33.18 | |
Additional Disclosures [Abstract] | ||
Compensation expense, gross | $ 3,300 | 3,500 |
Compensation expense, net of tax | 2,500 | $ 2,200 |
Unamortized compensation expense | $ 12,800 | |
Restricted and Performance-Based Shares [Member] | Employees [Member] | ||
Additional Disclosures [Abstract] | ||
Weighted average period of recognition for unrecognized compensation expense | 4 years 2 months 12 days | |
Restricted and Performance-Based Shares [Member] | Directors [Member] | ||
Additional Disclosures [Abstract] | ||
Weighted average period of recognition for unrecognized compensation expense | 9 months 18 days | |
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Expiration of vesting period | 3 years | |
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Minimum [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Post vesting holding period for restricted and performance shares issued | 1 year | |
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Maximum [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Post vesting holding period for restricted and performance shares issued | 2 years |
Employee Benefits (Details)
Employee Benefits (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2018USD ($) | Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($) | [1] | Jun. 30, 2018USD ($)Employeeshares | Jun. 30, 2017USD ($) | [1] | |
Benefit Plan [Abstract] | |||||||
Number of former union employees not covered under plan | Employee | 20 | ||||||
Postretirement Benefits [Member] | |||||||
Net Periodic benefit costs related to retirement plans [Abstract] | |||||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 | |||
Interest cost | 1 | 2 | 3 | 4 | |||
Amortization of prior service cost | 0 | 0 | 0 | 0 | |||
Actuarial net gain | (12) | (271) | (21) | (330) | |||
Net periodic benefit cost (credit) | $ (11) | $ (269) | $ (18) | $ (326) | |||
Supplemental Executive Retirement Plan [Member] | |||||||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||||||
Employer discretionary contribution amount | $ 600 | ||||||
Employee Stock Ownership Plan and Trust (ESOP) [Member] | |||||||
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract] | |||||||
Additional shares contributed to ESOP (in shares) | shares | 53,300 | ||||||
Shares released from trust (in shares) | shares | 53,300 | 53,300 | |||||
Total remaining balance of shares in the ESOP (in shares) | shares | 200 | 200 | |||||
[1] | Net periodic benefit cost (credit) has been reclassified from selling, general and administrative expenses to other non-operating income (expense), net on our consolidated statement of operations upon adoption of ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, see Note 2, "Summary of Significant Accounting Policies" for additional information. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic Net Earnings Per Common Share [Abstract] | ||||
Earnings from continuing operations | $ 16,827 | $ 18,261 | $ 25,424 | $ 34,628 |
Loss from discontinued operations | (882) | (497) | (1,490) | (1,130) |
Net earnings available to common stockholders | $ 15,945 | $ 17,764 | $ 23,934 | $ 33,498 |
Weighted average common shares outstanding (in shares) | 22,471,428 | 22,820,079 | 22,484,894 | 22,833,263 |
Earnings from continuing operations per common share (in dollars per share) | $ 0.75 | $ 0.80 | $ 1.13 | $ 1.52 |
Loss from discontinued operations per common share (in dollars per share) | (0.04) | (0.02) | (0.07) | (0.05) |
Net earnings per common share - Basic (in dollars per share) | $ 0.71 | $ 0.78 | $ 1.06 | $ 1.47 |
Diluted Net Earnings Per Common Share [Abstract] | ||||
Earnings from continuing operations | $ 16,827 | $ 18,261 | $ 25,424 | $ 34,628 |
Loss from discontinued operations | (882) | (497) | (1,490) | (1,130) |
Net earnings available to common stockholders | $ 15,945 | $ 17,764 | $ 23,934 | $ 33,498 |
Weighted average common shares outstanding (in shares) | 22,471,428 | 22,820,079 | 22,484,894 | 22,833,263 |
Plus incremental shares from assumed conversions [Abstract] | ||||
Dilutive effect of restricted stock and performance-based stock (in shares) | 487,000 | 509,000 | 477,000 | 499,000 |
Weighted average common shares outstanding - Diluted (in shares) | 22,958,469 | 23,329,082 | 22,962,049 | 23,332,480 |
Earnings from continuing operations per common share (in dollars per share) | $ 0.73 | $ 0.78 | $ 1.11 | $ 1.48 |
Loss from discontinued operations per common share (in dollars per share) | (0.04) | (0.02) | (0.07) | (0.04) |
Net earnings per common share - Diluted (in dollars per share) | $ 0.69 | $ 0.76 | $ 1.04 | $ 1.44 |
Restricted and Performance-Based Shares [Member] | ||||
Earnings Per Share, Diluted, Other Disclosures [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 251,000 | 228,000 | 265,000 | 240,000 |
Industry Segments (Details)
Industry Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Segment | Jun. 30, 2017USD ($) | ||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Number of reportable operating segments | Segment | 2 | ||||
Net Sales | [1] | $ 286,636 | $ 312,729 | $ 548,462 | $ 595,107 |
Operating Income | 23,350 | 29,399 | 35,657 | 54,861 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net Sales | [1] | 0 | 0 | 0 | 0 |
Engine Management [Member] | Reportable Segments [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net Sales | [1] | 203,429 | 223,349 | 402,917 | 434,663 |
Operating Income | 23,138 | 26,489 | 40,514 | 53,774 | |
Engine Management [Member] | Intersegment Eliminations [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net Sales | [1] | 4,981 | 5,831 | 10,972 | 13,143 |
Temperature Control [Member] | Reportable Segments [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net Sales | [1] | 80,370 | 87,391 | 140,601 | 157,681 |
Operating Income | 4,882 | 8,262 | 5,713 | 12,229 | |
Temperature Control [Member] | Intersegment Eliminations [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net Sales | [1] | 2,140 | 2,095 | 3,820 | 4,124 |
All Other [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net Sales | [1] | 2,837 | 1,989 | 4,944 | 2,763 |
Operating Income | (4,670) | (5,352) | (10,570) | (11,142) | |
All Other [Member] | Intersegment Eliminations [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net Sales | [1] | $ (7,121) | $ (7,926) | $ (14,792) | $ (17,267) |
[1] | Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Commitments and Contingencies55
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 202 Months Ended | ||
Jun. 30, 2018USD ($)Claim | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Claim | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Claim | |
Changes in product warranties [Roll forward] | |||||
Balance, beginning of period | $ 20,560 | $ 25,609 | $ 20,929 | $ 24,072 | |
Liabilities accrued for current year sales | 23,136 | 25,693 | 44,378 | 51,423 | |
Settlements of warranty claims | (21,991) | (26,774) | (43,602) | (50,967) | |
Balance, end of period | $ 21,705 | $ 24,528 | $ 21,705 | $ 24,528 | $ 21,705 |
Asbestos [Member] | |||||
Contingencies [Abstract] | |||||
Pending claims, approximate number | Claim | 1,550 | 1,550 | 1,550 | ||
Payment for settled claims | $ 24,800 | ||||
Increase from low end of range | $ 4,200 | ||||
Increase from high end of range | 6,300 | ||||
Asbestos [Member] | Minimum [Member] | |||||
Contingencies [Abstract] | |||||
Range of possible loss | $ 35,200 | 35,200 | 35,200 | ||
Asbestos [Member] | Maximum [Member] | |||||
Contingencies [Abstract] | |||||
Range of possible loss | 54,000 | 54,000 | 54,000 | ||
Asbestos [Member] | Discontinued Operations [Member] | |||||
Contingencies [Abstract] | |||||
Incremental pre-tax provision | 6,000 | ||||
Asbestos [Member] | Discontinued Operations [Member] | Minimum [Member] | |||||
Contingencies [Abstract] | |||||
Range of possible loss | 44,300 | 44,300 | 44,300 | ||
Asbestos [Member] | Discontinued Operations [Member] | Maximum [Member] | |||||
Contingencies [Abstract] | |||||
Range of possible loss | $ 79,600 | $ 79,600 | $ 79,600 |