Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 28, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | STANDARD MOTOR PRODUCTS, INC. | |
Entity Central Index Key | 0000093389 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 22,456,467 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-04743 | |
Entity Tax Identification Number | 11-1362020 | |
Entity Incorporation, State or Country Code | NY | |
Entity Address, Address Line One | 37-18 Northern Blvd. | |
Entity Address, City or Town | Long Island City | |
Entity Address, State or Province | NY | |
Entity Address, Country | US | |
Entity Address, Postal Zip Code | 11101 | |
City Area Code | 718 | |
Local Phone Number | 392-0200 | |
Title of 12(b) Security | Common Stock, par value $2.00 per share | |
Trading Symbol | SMP | |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | |||||
Net sales | [1] | $ 307,723 | $ 296,619 | $ 896,661 | $ 845,081 |
Cost of sales | 215,635 | 209,313 | 637,705 | 603,897 | |
Gross profit | 92,088 | 87,306 | 258,956 | 241,184 | |
Selling, general and administrative expenses | 59,947 | 60,137 | 180,483 | 175,604 | |
Restructuring and integration expenses | 825 | 6 | 1,469 | 3,073 | |
Other income (expense), net | (12) | 15 | (15) | 328 | |
Operating income | 31,304 | 27,178 | 76,989 | 62,835 | |
Other non-operating income, net | 225 | 351 | 2,282 | 800 | |
Interest expense | 1,508 | 1,254 | 4,319 | 3,137 | |
Earnings from continuing operations before taxes | 30,021 | 26,275 | 74,952 | 60,498 | |
Provision for income taxes | 7,367 | 7,002 | 18,639 | 15,801 | |
Earnings from continuing operations | 22,654 | 19,273 | 56,313 | 44,697 | |
Loss from discontinued operations, net of income taxes | (7,903) | (3,524) | (9,914) | (5,014) | |
Net earnings | $ 14,751 | $ 15,749 | $ 46,399 | $ 39,683 | |
Net earnings per common share - Basic: | |||||
Earnings from continuing operations (in dollars per share) | $ 1.01 | $ 0.86 | $ 2.52 | $ 1.99 | |
Discontinued operations (in dollars per share) | (0.35) | (0.16) | (0.44) | (0.22) | |
Net earnings per common share - Basic (in dollars per share) | 0.66 | 0.70 | 2.08 | 1.77 | |
Net earnings per common share - Diluted: | |||||
Earnings from continuing operations (in dollars per share) | 1 | 0.84 | 2.47 | 1.95 | |
Discontinued operations (in dollars per share) | (0.35) | (0.15) | (0.44) | (0.22) | |
Net earnings per common share - Diluted (in dollars per share) | 0.65 | 0.69 | 2.03 | 1.73 | |
Dividends declared per share (in dollars per share) | $ 0.23 | $ 0.21 | $ 0.69 | $ 0.63 | |
Average number of common shares (in shares) | 22,329,835 | 22,424,962 | 22,359,637 | 22,464,697 | |
Average number of common shares and dilutive common shares (in shares) | 22,754,440 | 22,938,925 | 22,814,228 | 22,954,649 | |
[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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Net earnings | $ 14,751 | $ 15,749 | $ 46,399 | $ 39,683 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (2,720) | 719 | (1,627) | (2,997) |
Pension and postretirement plans | (5) | (6) | (15) | (11) |
Total other comprehensive income (loss), net of tax | (2,725) | 713 | (1,642) | (3,008) |
Comprehensive income | $ 12,026 | $ 16,462 | $ 44,757 | $ 36,675 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 13,259 | $ 11,138 |
Accounts receivable, less allowances for discounts and doubtful accounts of $6,001 and $5,687 for 2019 and 2018, respectively | 168,968 | 157,535 |
Inventories | 340,231 | 349,811 |
Unreturned customer inventories | 20,325 | 20,484 |
Prepaid expenses and other current assets | 14,273 | 7,256 |
Total current assets | 557,056 | 546,224 |
Property, plant and equipment, net of accumulated depreciation of $194,410 and $186,135 for 2019 and 2018, respectively | 88,835 | 90,754 |
Operating lease right-of-use assets | 34,055 | 0 |
Goodwill | 77,664 | 67,321 |
Other intangibles, net | 66,857 | 48,411 |
Deferred income taxes | 39,105 | 42,334 |
Investments in unconsolidated affiliates | 39,030 | 32,469 |
Other assets | 18,081 | 15,619 |
Total assets | 920,683 | 843,132 |
CURRENT LIABILITIES: | ||
Notes payable | 78,211 | 43,689 |
Current portion of other debt | 5,225 | 5,377 |
Accounts payable | 71,139 | 94,357 |
Sundry payables and accrued expenses | 36,326 | 31,033 |
Accrued customer returns | 53,984 | 57,433 |
Accrued core liability | 26,045 | 31,263 |
Accrued rebates | 31,140 | 28,870 |
Payroll and commissions | 27,590 | 20,564 |
Total current liabilities | 329,660 | 312,586 |
Long-term debt | 132 | 153 |
Noncurrent operating lease liabilities | 27,214 | 0 |
Other accrued liabilities | 19,731 | 18,075 |
Accrued asbestos liabilities | 49,894 | 45,117 |
Total liabilities | 426,631 | 375,931 |
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 | 106,043 | 102,470 |
Retained earnings | 411,083 | 380,113 |
Accumulated other comprehensive income | (11,236) | (9,594) |
Treasury stock - at cost (1,597,342 shares and 1,503,284 shares in 2019 and 2018, respectively) | (59,710) | (53,660) |
Total stockholders' equity | 494,052 | 467,201 |
Total liabilities and stockholders' equity | $ 920,683 | $ 843,132 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Accounts receivable, allowances for discounts and doubtful accounts | $ 6,001 | $ 5,687 |
Property, plant and equipment, accumulated depreciation | $ 194,410 | $ 186,135 |
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) | 1,597,342 | 1,503,284 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 46,399 | $ 39,683 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 19,261 | 17,745 |
Amortization of deferred financing cost | 169 | 258 |
Increase to allowance for doubtful accounts | 301 | 40 |
Increase to inventory reserves | 3,006 | 2,753 |
Amortization of deferred gain on sale of building | 0 | (218) |
Equity income from joint ventures | (2,630) | (603) |
Employee stock ownership plan allocation | 1,889 | 1,918 |
Stock-based compensation | 5,742 | 5,614 |
Decrease (increase) in deferred income taxes | 3,232 | (2,556) |
Loss on discontinued operations, net of tax | 9,914 | 5,014 |
Change in assets and liabilities: | ||
Increase in accounts receivable | (16,583) | (23,428) |
Decrease in inventories | 11,824 | 2,761 |
(Increase) decrease in prepaid expenses and other current assets | (6,502) | 1,202 |
(Decrease) increase in accounts payable | (24,107) | 5,193 |
(Decrease) increase in sundry payables and accrued expenses | (2,551) | 12,828 |
Net change in other assets and liabilities | (6,260) | (619) |
Net cash provided by operating activities | 43,104 | 67,585 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of and investments in businesses | (43,490) | (9,852) |
Net proceeds from sale of Grapevine, Texas facility | 4,801 | 0 |
Capital expenditures | (12,329) | (15,633) |
Other investing activities | 47 | 37 |
Net cash used in investing activities | (50,971) | (25,448) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net borrowings (payments) under line-of-credit agreements | 34,523 | (12,000) |
Net borrowings of other debt and capital lease obligations | 133 | 1,463 |
Purchase of treasury stock | (10,738) | (9,271) |
Increase in overdraft balances | 1,109 | 1,382 |
Dividends paid | (15,429) | (14,144) |
Net cash provided by (used in) financing activities | 9,598 | (32,570) |
Effect of exchange rate changes on cash | 390 | 431 |
Net increase in cash and cash equivalents | 2,121 | 9,998 |
CASH AND CASH EQUIVALENTS at beginning of period | 11,138 | 17,323 |
CASH AND CASH EQUIVALENTS at end of period | 13,259 | 27,321 |
Cash paid during the period for: | ||
Interest | 4,083 | 2,896 |
Income taxes | $ 18,114 | $ 11,829 |
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 | 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 | 39,683 | 0 | 0 | 39,683 | ||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (3,008) | 0 | (3,008) | ||||||
Cash dividends paid | 0 | 0 | (14,144) | 0 | 0 | (14,144) | ||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (9,115) | (9,115) | ||||||
Stock-based compensation | 0 | 4,054 | 0 | 0 | 5,614 | |||||||
Stock-based compensation | 1,560 | |||||||||||
Employee stock ownership plan | 0 | 765 | 0 | 0 | 2,557 | |||||||
Employee stock ownership plan | 1,792 | |||||||||||
Balance at end of period at Sep. 30, 2018 | 47,872 | 104,876 | 381,503 | (7,117) | (53,082) | 474,052 | ||||||
Balance at beginning of period at Jun. 30, 2018 | 47,872 | 103,403 | 370,461 | (7,830) | (51,536) | 462,370 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 0 | 0 | 15,749 | 0 | 0 | 15,749 | ||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 713 | 0 | 713 | ||||||
Cash dividends paid | 0 | 0 | (4,707) | 0 | 0 | (4,707) | ||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (1,791) | (1,791) | ||||||
Stock-based compensation | 0 | 1,473 | 0 | 0 | 1,718 | |||||||
Stock-based compensation | 245 | |||||||||||
Balance at end of period at Sep. 30, 2018 | 47,872 | 104,876 | 381,503 | (7,117) | (53,082) | 474,052 | ||||||
Balance at beginning of period at Dec. 31, 2018 | 47,872 | 102,470 | 380,113 | (9,594) | (53,660) | 467,201 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 0 | 0 | 46,399 | 0 | 0 | 46,399 | ||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (1,642) | 0 | (1,642) | ||||||
Cash dividends paid | 0 | 0 | (15,429) | 0 | 0 | (15,429) | ||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | (10,738) | (10,738) | ||||||
Stock-based compensation | 0 | 2,828 | 0 | 0 | 5,742 | |||||||
Stock-based compensation | 2,914 | |||||||||||
Employee stock ownership plan | 0 | 745 | 0 | 0 | 2,519 | |||||||
Employee stock ownership plan | 1,774 | |||||||||||
Balance at end of period at Sep. 30, 2019 | 47,872 | 106,043 | 411,083 | (11,236) | (59,710) | 494,052 | ||||||
Balance at beginning of period at Jun. 30, 2019 | 47,872 | 105,347 | 401,465 | (8,511) | (60,908) | 485,265 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 0 | 0 | 14,751 | 0 | 0 | 14,751 | ||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (2,725) | 0 | (2,725) | ||||||
Cash dividends paid | 0 | 0 | (5,133) | 0 | 0 | (5,133) | ||||||
Stock-based compensation | 0 | 696 | 0 | 0 | 1,894 | |||||||
Stock-based compensation | 1,198 | |||||||||||
Balance at end of period at Sep. 30, 2019 | $ 47,872 | $ 106,043 | $ 411,083 | $ (11,236) | $ (59,710) | $ 494,052 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
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 premium replacement parts for motor vehicles in the automotive aftermarket industry with a complementary focus on the heavy duty, industrial equipment and original equipment markets. 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, 2018. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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, cash discounts, valuation of inventory, valuation of long-lived assets, goodwill and other intangible assets, depreciation and amortization of long-lived assets, product liability exposures, asbestos, environmental and litigation matters, valuation of deferred tax assets, share based compensation and sales returns and other allowances. There have been no material changes to our critical accounting policies and estimates from the information provided in Note 1 of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2018, except for changes made as a result of the adoption of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) 2016-02, Leases, Recently Issued Accounting Pronouncements Standards that were adopted Leases Effective January 1, 2019, we adopted ASU 2016-02, Leases, In adopting ASU 2016-02, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward our historical lease identification and lease classifications. In addition, upon adoption, we evaluated all of our leases, and in particular our real estate leases, to determine the appropriate lease term. In evaluating our leases, we determined that the lease term for one of our leases should be lengthened, as we concluded that it is reasonably certain that we will exercise the five-year renewal option in the lease. The lease term for all of our other leases remained unchanged. Additionally, we elected to apply the provisions of ASU 2018-11, Targeted Improvements Adoption of the new standard resulted in the following changes in our consolidated balance sheet as of January 1, 2019 (in thousands): Balance at December 31, 2018 Adjustments Due to Adoption of ASU 2016-02 Balance at January 1, 2019 Balance Sheet Operating lease right-of-use asset $ — $ 38,580 $ 38,580 Sundry payables and accrued expenses 31,033 7,232 38,265 Noncurrent operating lease liabilities — 31,348 31,348 See Note 3 for further information regarding our adoption of ASU 2016-02. Standards that are not yet adopted as of September 30, 2019 The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted as of September 30, 2019, 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 2017-04, 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 will be applied prospectively. We do not anticipate that the adoption of this standard will have a material impact when performing our annual impairment test. ASU 2016-13, Financial Instruments – Credit Losses This standard creates a single model to measure impairment on financial assets, which includes trade accounts receivable. An estimate of expected credit losses on trade accounts receivable 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 We do not anticipate that the adoption of this standard will have a material impact on the manner in which we estimate our allowance for doubtful accounts on trade accounts receivable, or on our consolidated financial statements. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 3. Leases Significant Accounting Policy We determine if an arrangement is a lease at inception. For operating leases, we include and report operating lease right-of-use (“ROU”) assets, sundry payables and accrued expenses, and noncurrent operating lease liabilities on our consolidated balance sheet for leases with a term longer than twelve months. Finance leases are reported on our consolidated balance sheets in property, plant and equipment, current portion of other debt, and long-term debt. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the total lease payments over the lease term. Our ROU assets represent the right to use an underlying leased asset over the existing lease term, and the corresponding lease liabilities represent our obligation to make lease payments arising from the lease agreement. As most of our leases do not provide for an implicit rate, we use our secured incremental borrowing rate based on the information available when determining the present value of our lease payments. Our lease terms may include options to terminate, or extend, our lease when it is reasonably certain that we will execute the option. Lease agreements may contain lease and non-lease components, which are generally accounted for separately. Operating lease expense is recognized on a straight-line basis over the lease term. Quantitative Lease Disclosures We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to ten years, some of which may include one or more five-year renewal options. We have included the five-year renewal option for one of our leases in our operating lease payments as we concluded that it is reasonably certain that we will exercise the option. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term. Finance leases are not material. The following tables provide quantitative disclosures related to our operating leases (in thousands) : Balance Sheet Information September 30, 2019 Assets Operating lease right-of-use assets $ 34,055 Liabilities Sundry payables and accrued expenses $ 7,899 Noncurrent operating lease liabilities 27,214 Total operating lease liabilities $ 35,113 Weighted Average Remaining Lease Term Operating leases 6 Years Weighted Average Discount Rate Operating leases 3.8 % Lease Expense Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating Lease Expense (a) $ 2,199 $ 6,633 (a) Excludes expenses of approximately $1.9 million related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material. Nine Months Ended September 30, 2019 Supplemental Cash Flow Information Cash paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,490 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 856 Minimum Lease Payments At September 30, 2019, we are obligated to make minimum lease payments through 2028, under operating leases, which are as follows (in thousands): 2019 $ 2,158 2020 7,787 2021 7,088 2022 5,861 2023 5,279 Thereafter 11,316 Total lease payments $ 39,489 Less: Interest (4,376 ) Present value of lease liabilities $ 35,113 |
Business Acquisitions and Inves
Business Acquisitions and Investments | 9 Months Ended |
Sep. 30, 2019 | |
Business Acquisitions and Investments [Abstract] | |
Business Acquisitions and Investments | Note 4. Business Acquisitions and Investments 2019 Business Acquisition and Investment Jiangsu Che Yijia New Energy Technology Co., Ltd. Equity Investment In August 2019, we acquired an approximate 29% minority interest in Jiangsu Che Yijia New Energy Technology Co., Ltd. (“CYJ”) for approximately $5.1 million. Our investment in CYJ was funded through borrowings under our revolving credit facility with JPMorgan Chase Bank, N.A. CYJ is a manufacturer of electric air conditioning compressors for electric vehicles and is located in China. Our minority interest in CYJ is accounted for using the equity method of accounting. Pollak Business of Stoneridge, Inc. Acquisition In April 2019, we acquired certain assets and liabilities of the Pollak business of Stoneridge, Inc. for approximately $40 million, subject to post-closing adjustments. In May 2019, the post-closing adjustments were finalized at $1.6 million, reducing the purchase price to $38.4 million. The acquisition was funded through borrowings under our revolving credit facility with JPMorgan Chase Bank, N.A. Stoneridge’s Pollak business had manufacturing and distribution facilities in Canton, Massachusetts, El Paso, Texas, and Juarez, Mexico, and distributed a range of engine management products including sensors, switches, and connectors. The acquisition, reported as part of our Engine Management Segment, enhanced our growth opportunities in the OE/OES, heavy duty and commercial vehicle markets and added to our existing expertise in aftermarket distribution, product management and service. We will be relocating all production to our existing facilities, and have not acquired any of the Pollak facilities or employees. We anticipate that the business will be fully integrated within 12 months. Revenues generated from the acquired business were approximately $45 million for the year ended December 31, 2018. The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed, based on their fair values (in thousands): Purchase Price $ 38,427 Assets acquired and liabilities assumed: Inventory $ 3,331 Property, plant and equipment, net 45 Intangible assets 24,650 Goodwill 10,401 Net assets acquired $ 38,427 Intangible assets acquired of $24.7 million consist of customer relationships related to the acquired OE/OES business of $17.2 million that will be amortized on a straight-line basis over the estimated useful life of 10 years; customer relationships related to the acquired aftermarket business of $7.2 million that will be amortized on a straight-line basis over the estimated useful life of 15 years; a trademark of $0.2 million that will be amortized on a straight-line basis over the estimated useful life of 10 years; and a non-compete agreement of $0.1 million that will be amortized on a straight-line basis over the estimated useful life of 5 years. Goodwill of $10.4 million was allocated to the Engine Management Segment and is deductible for income tax purposes. The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations, as well as the value of expected synergies. Revenues included in our consolidated statements of operations for the acquisition were $20 million from the date of acquisition through September 30, 2019. 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 approximately $4.2 million, thereby increasing our equity interest in the joint venture to 65%. The $4.2 million payment for our additional 15% investment was made in cash installments through September 30, 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. |
Restructuring and Integration E
Restructuring and Integration Expenses | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 and September 30, 2019 and activity for the nine months ended September 30, 2019 consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2018 $ 742 $ — $ 742 Restructuring and integration costs: Amounts provided for during 2019 — 1,469 1,469 Cash payments (271 ) (1,177 ) (1,448 ) Reclassification to inventory reserves — (292 ) (292 ) Exit activity liability at September 30, 2019 $ 471 $ — $ 471 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 of 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. In December 2018, we completed the sale of the property located in Grapevine, Texas. Net proceeds from the sale of $4.8 million were received in January 2019. The plant rationalization program is substantially completed. Cash payments made during the first nine months of 2019 and the remaining aggregate liability related to the program as of September 30, 2019 consists of severance payments to former employees. Activity, by segment, for the nine months ended September 30, 2019 related to our plant rationalization program consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31, 2018 $ — $ 304 $ — $ 304 Restructuring and integration costs: Amounts provided for during 2019 — — — — Cash payments — (77 ) — (77 ) Exit activity liability at September 30, 2019 $ — $ 227 $ — $ 227 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. The Orlando plant rationalization program is substantially completed. Cash payments made during the first nine months of 2019 and the remaining aggregate liability related to the program as of September 30, 2019 consists of severance payments to former employees. Activity, by segment, for the nine months ended September 30, 2019 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, 2018 $ 438 $ — $ — $ 438 Restructuring and integration costs: Amounts provided for during 2019 — — — — Cash payments (194 ) — — (194 ) Exit activity liability at September 30, 2019 $ 244 $ — $ — $ 244 Integration Costs Pollak Relocation In connection with our April 2019 acquisition of certain assets and liabilities of the Pollak business of Stoneridge, Inc., we are incurring certain integration expenses in connection with the relocation of certain inventory, machinery, and equipment from Pollak’s distribution and manufacturing facilities in El Paso, Texas, Canton, Massachusetts, and Juarez, Mexico, to our existing facilities in Disputanta, Virginia, Reynosa, Mexico and Independence, Kansas. Total integration expenses of approximately $1.8 million are expected to be incurred related to the relocation. During the nine months ended September 30, 2019, integration expenses related to the relocation of $1.5 million were recognized. We anticipate that the Pollak relocation will be substantially completed by the end of 2019. Activity, by segment, for the nine months ended September 30, 2019 related to the Pollak relocation consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31, 2018 $ — $ — $ — $ — Restructuring and integration costs: Amounts provided for during 2019 1,469 — — 1,469 Cash payments (1,177 ) — — (1,177 ) Reclassification to inventory reserves (292 ) — — (292 ) Exit activity liability at September 30, 2019 $ — $ — $ — $ — |
Sale of Receivables
Sale of Receivables | 9 Months Ended |
Sep. 30, 2019 | |
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 $199.6 million and $560.6 million of receivables during the three months and nine months ended September 30, 2019, respectively, and $224.4 million and $566 million for the comparable periods in 2018. A charge in the amount of $5.6 million and $17.7 million related to the sale of receivables is included in selling, general and administrative expense in our consolidated statements of operations for the three months and nine months ended September 30, 2019, respectively, and $7.3 million and $19 million for the comparable periods in 2018. If we do not enter into these arrangements or if any of the financial institutions with which we enter into these arrangements were to experience financial difficulties or otherwise terminate these arrangements, our financial condition, results of operations and cash flows could be materially and adversely affected by delays or failures to collect future trade accounts receivable. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
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) and net realizable value, consist of the following: September 30, 2019 December 31, 2018 (In thousands) Finished goods $ 217,708 $ 226,802 Work in process 9,475 10,527 Raw materials 113,048 112,482 Subtotal 340,231 349,811 Unreturned customer inventories 20,325 20,484 Total inventories $ 360,556 $ 370,295 |
Acquired Intangible Assets
Acquired Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Acquired Intangible Assets [Abstract] | |
Acquired Intangible Assets | Note 8. Acquired Intangible Assets Acquired identifiable intangible assets consist of the following: September 30, 2019 December 31, 2018 (In thousands) Customer relationships $ 111,521 $ 87,195 Trademarks and trade names 6,980 6,800 Non-compete agreements 3,273 3,193 Patents 723 723 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 123,457 98,871 Less accumulated amortization (1) (57,329 ) (51,391 ) Net acquired intangible assets $ 66,128 $ 47,480 (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. In April 2019, we acquired certain assets and liabilities of the Pollak business of Stoneridge, Inc. Intangible assets acquired of $ 24.7 million consist of customer relationships related to the acquired OE/OES business of $ 17.2 million that will be amortized on a straight-line basis over the estimated useful life of 10 years; customer relationships related to the acquired aftermarket business of $ 7.2 million that will be amortized on a straight-line basis over the estimated useful life of 15 years; a trademark of $ 0.2 million that will be amortized on a straight-line basis over the estimated useful life of 10 years; and a non-compete agreement of $ 0.1 million that will be amortized on a straight-line basis over the estimated useful life of 5 years. Total amortization expense for acquired intangible assets was $ million and $ million for the three months and nine 30, 2019, respectively, Based on the current estimated useful lives assigned to our acquired intangible assets, amortization expense is estimated to be $ million for the remainder of 2019, $ million in 2020, $ million in 2021, $ million in 2022 and $ million in the aggregate for the years 2023 through 2034. |
Credit Facilities and Long-Term
Credit Facilities and Long-Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, 2019 December 31, 2018 (In thousands) Revolving credit facilities $ 78,211 $ 43,689 Other (1) 5,357 5,530 Total debt $ 83,568 $ 49,219 Current maturities of debt $ 83,436 $ 49,066 Long-term debt 132 153 Total debt $ 83,568 $ 49,219 (1) Other includes borrowings under our Polish overdraft facility of Zloty 20.7 million (approximately $5.2 million) and Zloty 19.9 million (approximately $5.3 million) as of September 30, 2019 and December 31, 2018, respectively. Revolving Credit Facility In December 2018, we amended our Credit Agreement with JPMorgan Chase Bank, N.A., as agent, and a syndicate of lenders. The amended credit agreement provides 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 extends the maturity date to December 2023 Borrowings under the amended 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 amended credit agreement is based on a formula of eligible accounts receivable, eligible drafts presented to the banks under our factoring agreements, eligible inventory, eligible equipment and eligible fixed assets. After taking into account outstanding borrowings under the amended credit agreement, there was an additional $168.6 million available for us to borrow pursuant to the formula at September 30, 2019. Outstanding borrowings under the amended credit agreement, which are classified as current liabilities, were $78.2 million and $43.7 million at September 30, 2019 and December 31, 2018, respectively. Borrowings under the amended credit agreement have been classified as current liabilities based upon accounting rules and certain provisions in the agreement. At September 30, 2019, the weighted average interest rate on our amended credit agreement was 3.4%, which consisted of $75 million in direct borrowings at 3.2% and an alternative base rate loan of $3.2 million at 5.3%. At December 31, 2018, the weighted average interest rate on our amended credit agreement was 3.9%, which consisted of $40 million in direct borrowings at 3.4% and an alternative base rate loan of $3.7 million at 5.8%. During the nine months ended September 30, 2019, our average daily alternative base rate loan balance was $1.6 million, compared to a balance of $2 million for the nine months ended September 30, 2018, and a balance of $1.8 million for the year ended December 31, 2018. 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 amended 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 September 30, 2019, we were not subject to these covenants. The amended credit agreement permits us to pay cash dividends of $20 million and make stock repurchases of $20 million in any fiscal year subject to a minimum availability of $25 million. Provided specific conditions are met, the amended credit agreement also permits acquisitions, permissible debt financing, capital expenditures, and cash dividend payments and stock repurchases of greater than $20 million. Polish Overdraft Facility Our Polish subsidiary, SMP Poland sp.z.o.o., has entered into an overdraft facility with HSBC Bank Polska S.A. (“HSBC Poland”) for Zloty 30 million (approximately $7.5 million). The facility, as amended, expires in December 2019. 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 September 30, 2019 and December 31, 2018, borrowings under the overdraft facility were Zloty 20.7 million (approximately $5.2 million) and Zloty 19.9 million (approximately $5.3 million), respectively. We anticipate that the overdraft facility will be renewed in the fourth quarter of 2019. Deferred Financing Costs We had deferred financing costs of $0.9 million and $1.1 million as of September 30, 2019 and December 31, 2018, respectively. Deferred financing costs are related to our revolving credit facility. Deferred financing costs as of September 30, 2019 are being amortized in the amounts of $0.1 million for the remainder of 2019, $0.2 million in 2020, $0.2 million in 2021, $0.2 million in 2022 and $0.2 million in 2023. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | Note 10. 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 one Our restricted and performance-based share activity was as follows for the nine months ended September 30, 2019: Shares Weighted Average Grant Date Fair Value Per Share Balance at 870,041 $ 34.59 Granted 204,650 42.05 Vested (68,945 ) 28.89 Forfeited (11,950 ) 44.11 Balance at 993,796 $ 36.40 We recorded compensation expense related to restricted shares and performance-based shares of $5.3 million ($3.9 million, net of tax) and $5 million ($3.7 million, net of tax) for the nine months ended September 30, 2019 and 2018, respectively. The unamortized compensation expense related to our restricted and performance-based shares was $17.9 million at September 30, 2019, and is expected to be recognized as they vest over a weighted average period of 3.9 years and 0.6 years for employees and directors, respectively. |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Employee Benefits [Abstract] | |
Employee Benefits | Note 11. Employee Benefits We provided, and continue to provide, certain medical and dental care benefits to eligible retired U.S. and Canadian employees. The postretirement medical plans to eligible U.S. employees, other than to former union employees, and eligible Canadian employees terminated on December 31, 2016. As related to the U.S. non-union employees, annually and through the year ended December 31, 2016, a fixed amount was credited into a Health Reimbursement account (“HRA”) to cover both medical and dental costs for all current and future eligible retirees. Balances in the HRA accounts upon termination of the plan at December 31, 2016 remained available for use until December 31, 2018. Any remaining balance at December 31, 2018 was forfeited. Postretirement medical and dental benefits to the remaining eligible 19 former union employees in the U.S. will continue to be provided. The postretirement medical and dental benefit obligation for the former union employees in the U.S. as of September 30, 2019, and the net periodic benefit cost for our postretirement benefit plans for the three months and nine months ended September 30, 2019 and 2018 were not material. 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 2019, we made company contributions to the plan of $0.3 million related to calendar year 2018. 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 nine months ended September 30, 2019, we contributed to the trust an additional 49,100 shares from our treasury and released 49,100 shares from the trust leaving 200 shares remaining in the trust as of September 30, 2019. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 12. 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 | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 13. 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Basic Net Earnings Per Common Share: Earnings from continuing operations $ 22,654 $ 19,273 $ 56,313 $ 44,697 Loss from discontinued operations (7,903 ) (3,524 ) (9,914 ) (5,014 ) Net earnings available to common stockholders $ 14,751 $ 15,749 $ 46,399 $ 39,683 Weighted average common shares outstanding 22,330 22,425 22,360 22,465 Earnings from continuing operations per common share $ 1.01 $ 0.86 $ 2.52 $ 1.99 Loss from discontinued operations per common share (0.35 ) (0.16 ) (0.44 ) (0.22 ) Basic net earnings per common share $ 0.66 $ 0.70 $ 2.08 $ 1.77 Diluted Net Earnings Per Common Share: Earnings from continuing operations $ 22,654 $ 19,273 $ 56,313 $ 44,697 Loss from discontinued operations (7,903 ) (3,524 ) (9,914 ) (5,014 ) Net earnings available to common stockholders $ 14,751 $ 15,749 $ 46,399 $ 39,683 Weighted average common shares outstanding 22,330 22,425 22,360 22,465 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock and performance-based stock 424 514 454 490 Weighted average common shares outstanding – Diluted 22,754 22,939 22,814 22,955 Earnings from continuing operations per common share $ 1.00 $ 0.84 $ 2.47 $ 1.95 Loss from discontinued operations per common share (0.35 ) (0.15 ) (0.44 ) (0.22 ) Diluted net earnings per common share $ 0.65 $ 0.69 $ 2.03 $ 1.73 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Restricted and performance-based shares 269 210 260 246 |
Industry Segments
Industry Segments | 9 Months Ended |
Sep. 30, 2019 | |
Industry Segments [Abstract] | |
Industry Segments | Note 14. 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net Sales (a) Engine Management $ 215,973 $ 197,570 $ 647,204 $ 600,487 Temperature Control 88,301 96,079 241,631 236,680 All Other 3,449 2,970 7,826 7,914 Consolidated $ 307,723 $ 296,619 $ 896,661 $ 845,081 Intersegment Revenue (a) Engine Management $ 4,758 $ 6,500 $ 15,028 $ 17,472 Temperature Control 1,504 2,444 5,223 6,264 All Other (6,262 ) (8,944 ) (20,251 ) (23,736 ) Consolidated $ — $ — $ — $ — Operating Income Engine Management $ 29,477 $ 21,635 $ 77,530 $ 62,149 Temperature Control 7,478 8,571 16,682 14,284 All Other (5,651 ) (3,028 ) (17,223 ) (13,598 ) Consolidated $ 31,304 $ 27,178 $ 76,989 $ 62,835 (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 15, “Net Sales.” |
Net Sales
Net Sales | 9 Months Ended |
Sep. 30, 2019 | |
Net Sales [Abstract] | |
Net Sales | Note 15. Net Sales 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 nine months ended September 30, 2019 and 2018 (in thousands): Three months ended September Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 195,953 $ 85,075 $ — $ 281,028 Canada 6,853 2,617 3,449 12,919 Mexico 5,234 145 — 5,379 Europe 3,283 150 — 3,433 Other foreign 4,650 314 — 4,964 Total $ 215,973 $ 88,301 $ 3,449 $ 307,723 Major Product Group: Ignition, emission control, fuel and safety related system products $ 180,826 $ — $ 1,742 $ 182,568 Wire and cable 35,147 — 348 35,495 Compressors — 52,776 756 53,532 Other climate control parts — 35,525 603 36,128 Total $ 215,973 $ 88,301 $ 3,449 $ 307,723 Major Sales Channel: Aftermarket $ 180,535 $ 81,581 $ 3,449 $ 265,565 OE/OES 30,135 6,122 — 36,257 Export 5,303 598 — 5,901 Total $ 215,973 $ 88,301 $ 3,449 $ 307,723 Three months ended September 30, 2018 (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 175,863 $ 91,687 $ — $ 267,550 Canada 9,309 3,591 2,970 15,870 Mexico 4,909 219 — 5,128 Europe 3,227 156 — 3,383 Other foreign 4,262 426 — 4,688 Total $ 197,570 $ 96,079 $ 2,970 $ 296,619 Major Product Group: Ignition, emission control, fuel and safety related system products $ 159,101 $ — $ 1,171 $ 160,272 Wire and cable 38,469 — 118 38,587 Compressors — 54,842 1,070 55,912 Other climate control parts — 41,237 611 41,848 Total $ 197,570 $ 96,079 $ 2,970 $ 296,619 Major Sales Channel: Aftermarket $ 168,836 $ 88,681 $ 2,970 $ 260,487 OE/OES 23,345 6,718 — 30,063 Export 5,389 680 — 6,069 Total $ 197,570 $ 96,079 $ 2,970 $ 296,619 Nine (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 577,974 $ 230,581 $ — $ 808,555 Canada 20,655 9,390 7,826 37,871 Mexico 14,601 508 — 15,109 Europe 9,957 424 — 10,381 Other foreign 24,017 728 — 24,745 Total $ 647,204 $ 241,631 $ 7,826 $ 896,661 Major Product Group: Ignition, emission control, fuel and safety related system products $ 538,718 $ — $ 4,625 $ 543,343 Wire and cable 108,486 — 360 108,846 Compressors — 145,080 1,288 146,368 Other climate control parts — 96,551 1,553 98,104 Total $ 647,204 $ 241,631 $ 7,826 $ 896,661 Major Sales Channel: Aftermarket $ 536,228 $ 217,453 $ 7,826 $ 761,507 OE/OES 95,241 22,638 — 117,879 Export 15,735 1,540 — 17,275 Total $ 647,204 $ 241,631 $ 7,826 $ 896,661 Nine (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 534,625 $ 223,861 $ — $ 758,486 Canada 24,401 10,685 7,914 43,000 Mexico 14,142 610 — 14,752 Europe 10,353 469 — 10,822 Other foreign 16,966 1,055 — 18,021 Total $ 600,487 $ 236,680 $ 7,914 $ 845,081 Major Product Group: Ignition, emission control, fuel and safety related system products $ 482,640 $ — $ 4,024 $ 486,664 Wire and cable 117,847 — 467 118,314 Compressors — 131,680 1,832 133,512 Other climate control parts — 105,000 1,591 106,591 Total $ 600,487 $ 236,680 $ 7,914 $ 845,081 Major Sales Channel: Aftermarket $ 510,010 $ 210,990 $ 7,914 $ 728,914 OE/OES 74,202 24,115 — 98,317 Export 16,275 1,575 — 17,850 Total $ 600,487 $ 236,680 $ 7,914 $ 845,081 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. (b) 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 control, fuel and safety related system products, 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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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 in the accompanying statement of operations. 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 settlements, awards of asbestos-related damages, and defense of such claims. At September 30, 2019, approximately 1,500 cases were outstanding for which we may be responsible for any related liabilities. Since inception in September 2001 through September 30, 2019, the amounts paid for settled claims are approximately $30.5 million. We do not have insurance coverage for the indemnity and defense costs associated with the claims we face. 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 such claims. 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 ; and perform an annual actuarial evaluation in the third quarter of each year and whenever events or changes in circumstances indicate that additional provisions may be necessary. 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. 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 and awards of asbestos-related damages 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. As related to our potential asbestos-related liability, in 2018, we were a defendant in an asbestos liability case in California, in which we were found liable for $7.6 million in compensatory damages. We are pursuing all rights of appeal of this case, and during the appeal process, interest will accrue at a rate of ten percent (10%) per annum. During the fourth quarter of 2018, our actuarial firm revised the results of its August 31, 2018 study. Based upon the results of the revised actuarial study, in December 2018, we increased our asbestos liability to $46.7 million and recorded an incremental pre-tax provision of $10.1 million in earnings (loss) from discontinued operations. In accordance with our policy to perform an annual actuarial evaluation in the third quarter of each year, an updated actuarial study was performed as of August 31, 2019. The results of the August 31, 2019 study included an estimate of our undiscounted liability for settlement payments and awards of asbestos-related damages, excluding legal costs and any potential recovery from insurance carriers, ranging from $52 million to $90.6 million for the period through 2064. The change from the revised prior year study, which was performed in the fourth quarter of 2018, was a $5.3 million increase for the low end of the range and a $6.7 million increase for the high end of the range. The increase in the estimated undiscounted liability from the revised prior year study at both the low end and high end of the range reflects our actual experience, our historical data and certain assumptions with respect to events that may occur in the future. Based upon the results of the August 31, 2019 actuarial study, in September 2019, we increased our asbestos liability to $52 million, the low end of the range, and recorded an incremental pre-tax provision of $9.7 million in earnings (loss) from discontinued operations in the accompanying statement of operations. Future legal costs, which are expensed as incurred and reported in earnings (loss) from discontinued operations in the accompanying statement of operations, are estimated, according to the updated study, to range from $50.6 million to $85.2 million for the period through 2064. We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future and whenever events or changes in circumstances indicate that additional provisions may be necessary. 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 events and changes in circumstances surrounding these potential liabilities in determining whether to perform additional actuarial evaluations and 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 business, financial condition or results of operations. We may at any time determine that settling any of these matters is in our best interests, which settlement may include substantial payments. Although we cannot currently predict the specific amount of any liability that may ultimately arise with respect to any of these matters, we will record provisions when the liability is considered probable and reasonably estimable. Significant judgment is required in both the determination of probability and the determination as to whether an exposure can be reasonably estimated. As additional information becomes available, we reassess our potential liability related to these matters. Such revisions of the potential liabilities could have a material adverse effect on our business, financial condition or results of operations. 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 September 30, 2019 and 2018, we have accrued $20.6 million and $24.1 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance, beginning of period $ 22,086 $ 21,705 $ 19,636 $ 20,929 Liabilities accrued for current year sales 26,112 25,748 76,791 70,126 Settlements of warranty claims (27,573 ) (23,396 ) (75,802 ) (66,998 ) Balance, end of period $ 20,625 $ 24,057 $ 20,625 $ 24,057 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Standards that were adopted Leases Effective January 1, 2019, we adopted ASU 2016-02, Leases, In adopting ASU 2016-02, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward our historical lease identification and lease classifications. In addition, upon adoption, we evaluated all of our leases, and in particular our real estate leases, to determine the appropriate lease term. In evaluating our leases, we determined that the lease term for one of our leases should be lengthened, as we concluded that it is reasonably certain that we will exercise the five-year renewal option in the lease. The lease term for all of our other leases remained unchanged. Additionally, we elected to apply the provisions of ASU 2018-11, Targeted Improvements Adoption of the new standard resulted in the following changes in our consolidated balance sheet as of January 1, 2019 (in thousands): Balance at December 31, 2018 Adjustments Due to Adoption of ASU 2016-02 Balance at January 1, 2019 Balance Sheet Operating lease right-of-use asset $ — $ 38,580 $ 38,580 Sundry payables and accrued expenses 31,033 7,232 38,265 Noncurrent operating lease liabilities — 31,348 31,348 See Note 3 for further information regarding our adoption of ASU 2016-02. Standards that are not yet adopted as of September 30, 2019 The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted as of September 30, 2019, 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 2017-04, 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 will be applied prospectively. We do not anticipate that the adoption of this standard will have a material impact when performing our annual impairment test. ASU 2016-13, Financial Instruments – Credit Losses This standard creates a single model to measure impairment on financial assets, which includes trade accounts receivable. An estimate of expected credit losses on trade accounts receivable 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 We do not anticipate that the adoption of this standard will have a material impact on the manner in which we estimate our allowance for doubtful accounts on trade accounts receivable, or on our consolidated financial statements. |
Leases (Policies)
Leases (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Significant Accounting Policy We determine if an arrangement is a lease at inception. For operating leases, we include and report operating lease right-of-use (“ROU”) assets, sundry payables and accrued expenses, and noncurrent operating lease liabilities on our consolidated balance sheet for leases with a term longer than twelve months. Finance leases are reported on our consolidated balance sheets in property, plant and equipment, current portion of other debt, and long-term debt. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the total lease payments over the lease term. Our ROU assets represent the right to use an underlying leased asset over the existing lease term, and the corresponding lease liabilities represent our obligation to make lease payments arising from the lease agreement. As most of our leases do not provide for an implicit rate, we use our secured incremental borrowing rate based on the information available when determining the present value of our lease payments. Our lease terms may include options to terminate, or extend, our lease when it is reasonably certain that we will execute the option. Lease agreements may contain lease and non-lease components, which are generally accounted for separately. Operating lease expense is recognized on a straight-line basis over the lease term. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Impact of Adopting ASU 2016-02 on Consolidated Balance Sheet | Adoption of the new standard resulted in the following changes in our consolidated balance sheet as of January 1, 2019 (in thousands): Balance at December 31, 2018 Adjustments Due to Adoption of ASU 2016-02 Balance at January 1, 2019 Balance Sheet Operating lease right-of-use asset $ — $ 38,580 $ 38,580 Sundry payables and accrued expenses 31,033 7,232 38,265 Noncurrent operating lease liabilities — 31,348 31,348 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Quantitative Disclosures Related to Operating Leases | The following tables provide quantitative disclosures related to our operating leases (in thousands) : Balance Sheet Information September 30, 2019 Assets Operating lease right-of-use assets $ 34,055 Liabilities Sundry payables and accrued expenses $ 7,899 Noncurrent operating lease liabilities 27,214 Total operating lease liabilities $ 35,113 Weighted Average Remaining Lease Term Operating leases 6 Years Weighted Average Discount Rate Operating leases 3.8 % Lease Expense Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating Lease Expense (a) $ 2,199 $ 6,633 (a) Excludes expenses of approximately $1.9 million related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material. Nine Months Ended September 30, 2019 Supplemental Cash Flow Information Cash paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,490 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 856 |
Minimum Lease Payments | At September 30, 2019, we are obligated to make minimum lease payments through 2028, under operating leases, which are as follows (in thousands): 2019 $ 2,158 2020 7,787 2021 7,088 2022 5,861 2023 5,279 Thereafter 11,316 Total lease payments $ 39,489 Less: Interest (4,376 ) Present value of lease liabilities $ 35,113 |
Business Acquisitions and Inv_2
Business Acquisitions and Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Acquisitions and Investments [Abstract] | |
Allocation of Purchase Price, Assets Acquired And Liabilities Assumed | The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed, based on their fair values (in thousands): Purchase Price $ 38,427 Assets acquired and liabilities assumed: Inventory $ 3,331 Property, plant and equipment, net 45 Intangible assets 24,650 Goodwill 10,401 Net assets acquired $ 38,427 |
Restructuring and Integration_2
Restructuring and Integration Expenses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 and September 30, 2019 and activity for the nine months ended September 30, 2019 consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2018 $ 742 $ — $ 742 Restructuring and integration costs: Amounts provided for during 2019 — 1,469 1,469 Cash payments (271 ) (1,177 ) (1,448 ) Reclassification to inventory reserves — (292 ) (292 ) Exit activity liability at September 30, 2019 $ 471 $ — $ 471 |
Plant Rationalization Program [Member] | |
Restructuring Reserve [Abstract] | |
Restructuring and Integration Expense (Income) | Engine Management Temperature Control Other Total Exit activity liability at December 31, 2018 $ — $ 304 $ — $ 304 Restructuring and integration costs: Amounts provided for during 2019 — — — — Cash payments — (77 ) — (77 ) Exit activity liability at September 30, 2019 $ — $ 227 $ — $ 227 |
Orlando Plant Rationalization Program [Member] | |
Restructuring Reserve [Abstract] | |
Restructuring and Integration Expense (Income) | Activity, by segment, for the nine months ended September 30, 2019 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, 2018 $ 438 $ — $ — $ 438 Restructuring and integration costs: Amounts provided for during 2019 — — — — Cash payments (194 ) — — (194 ) Exit activity liability at September 30, 2019 $ 244 $ — $ — $ 244 |
Pollak Relocation [Member] | |
Restructuring Reserve [Abstract] | |
Restructuring and Integration Expense (Income) | Activity, by segment, for the nine months ended September 30, 2019 related to the Pollak relocation consisted of the following (in thousands): Engine Management Temperature Control Other Total Exit activity liability at December 31, 2018 $ — $ — $ — $ — Restructuring and integration costs: Amounts provided for during 2019 1,469 — — 1,469 Cash payments (1,177 ) — — (1,177 ) Reclassification to inventory reserves (292 ) — — (292 ) Exit activity liability at September 30, 2019 $ — $ — $ — $ — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventories [Abstract] | |
Inventories | Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) and net realizable value, consist of the following: September 30, 2019 December 31, 2018 (In thousands) Finished goods $ 217,708 $ 226,802 Work in process 9,475 10,527 Raw materials 113,048 112,482 Subtotal 340,231 349,811 Unreturned customer inventories 20,325 20,484 Total inventories $ 360,556 $ 370,295 |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Acquired Intangible Assets [Abstract] | |
Acquired Identifiable Intangible Assets | Acquired identifiable intangible assets consist of the following: September 30, 2019 December 31, 2018 (In thousands) Customer relationships $ 111,521 $ 87,195 Trademarks and trade names 6,980 6,800 Non-compete agreements 3,273 3,193 Patents 723 723 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 123,457 98,871 Less accumulated amortization (1) (57,329 ) (51,391 ) Net acquired intangible assets $ 66,128 $ 47,480 (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-Te_2
Credit Facilities and Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Summary of Total Debt Outstanding | Total debt outstanding is summarized as follows: September 30, 2019 December 31, 2018 (In thousands) Revolving credit facilities $ 78,211 $ 43,689 Other (1) 5,357 5,530 Total debt $ 83,568 $ 49,219 Current maturities of debt $ 83,436 $ 49,066 Long-term debt 132 153 Total debt $ 83,568 $ 49,219 (1) Other includes borrowings under our Polish overdraft facility of Zloty 20.7 million (approximately $5.2 million) and Zloty 19.9 million (approximately $5.3 million) as of September 30, 2019 and December 31, 2018, respectively. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stock-Based Compensation Plans [Abstract] | |
Restricted and Performance-based Share Activity | Our restricted and performance-based share activity was as follows for the nine months ended September 30, 2019: Shares Weighted Average Grant Date Fair Value Per Share Balance at 870,041 $ 34.59 Granted 204,650 42.05 Vested (68,945 ) 28.89 Forfeited (11,950 ) 44.11 Balance at 993,796 $ 36.40 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliations of Earnings Available to Common Stockholders and 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Basic Net Earnings Per Common Share: Earnings from continuing operations $ 22,654 $ 19,273 $ 56,313 $ 44,697 Loss from discontinued operations (7,903 ) (3,524 ) (9,914 ) (5,014 ) Net earnings available to common stockholders $ 14,751 $ 15,749 $ 46,399 $ 39,683 Weighted average common shares outstanding 22,330 22,425 22,360 22,465 Earnings from continuing operations per common share $ 1.01 $ 0.86 $ 2.52 $ 1.99 Loss from discontinued operations per common share (0.35 ) (0.16 ) (0.44 ) (0.22 ) Basic net earnings per common share $ 0.66 $ 0.70 $ 2.08 $ 1.77 Diluted Net Earnings Per Common Share: Earnings from continuing operations $ 22,654 $ 19,273 $ 56,313 $ 44,697 Loss from discontinued operations (7,903 ) (3,524 ) (9,914 ) (5,014 ) Net earnings available to common stockholders $ 14,751 $ 15,749 $ 46,399 $ 39,683 Weighted average common shares outstanding 22,330 22,425 22,360 22,465 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock and performance-based stock 424 514 454 490 Weighted average common shares outstanding – Diluted 22,754 22,939 22,814 22,955 Earnings from continuing operations per common share $ 1.00 $ 0.84 $ 2.47 $ 1.95 Loss from discontinued operations per common share (0.35 ) (0.15 ) (0.44 ) (0.22 ) Diluted net earnings per common share $ 0.65 $ 0.69 $ 2.03 $ 1.73 |
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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Restricted and performance-based shares 269 210 260 246 |
Industry Segments (Tables)
Industry Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net Sales (a) Engine Management $ 215,973 $ 197,570 $ 647,204 $ 600,487 Temperature Control 88,301 96,079 241,631 236,680 All Other 3,449 2,970 7,826 7,914 Consolidated $ 307,723 $ 296,619 $ 896,661 $ 845,081 Intersegment Revenue (a) Engine Management $ 4,758 $ 6,500 $ 15,028 $ 17,472 Temperature Control 1,504 2,444 5,223 6,264 All Other (6,262 ) (8,944 ) (20,251 ) (23,736 ) Consolidated $ — $ — $ — $ — Operating Income Engine Management $ 29,477 $ 21,635 $ 77,530 $ 62,149 Temperature Control 7,478 8,571 16,682 14,284 All Other (5,651 ) (3,028 ) (17,223 ) (13,598 ) Consolidated $ 31,304 $ 27,178 $ 76,989 $ 62,835 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Net Sales (Tables)
Net Sales (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Net Sales [Abstract] | |
Disaggregation of Net Sales | The following tables provide disaggregation of net sales information for the three months and nine months ended September 30, 2019 and 2018 (in thousands): Three months ended September Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 195,953 $ 85,075 $ — $ 281,028 Canada 6,853 2,617 3,449 12,919 Mexico 5,234 145 — 5,379 Europe 3,283 150 — 3,433 Other foreign 4,650 314 — 4,964 Total $ 215,973 $ 88,301 $ 3,449 $ 307,723 Major Product Group: Ignition, emission control, fuel and safety related system products $ 180,826 $ — $ 1,742 $ 182,568 Wire and cable 35,147 — 348 35,495 Compressors — 52,776 756 53,532 Other climate control parts — 35,525 603 36,128 Total $ 215,973 $ 88,301 $ 3,449 $ 307,723 Major Sales Channel: Aftermarket $ 180,535 $ 81,581 $ 3,449 $ 265,565 OE/OES 30,135 6,122 — 36,257 Export 5,303 598 — 5,901 Total $ 215,973 $ 88,301 $ 3,449 $ 307,723 Three months ended September 30, 2018 (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 175,863 $ 91,687 $ — $ 267,550 Canada 9,309 3,591 2,970 15,870 Mexico 4,909 219 — 5,128 Europe 3,227 156 — 3,383 Other foreign 4,262 426 — 4,688 Total $ 197,570 $ 96,079 $ 2,970 $ 296,619 Major Product Group: Ignition, emission control, fuel and safety related system products $ 159,101 $ — $ 1,171 $ 160,272 Wire and cable 38,469 — 118 38,587 Compressors — 54,842 1,070 55,912 Other climate control parts — 41,237 611 41,848 Total $ 197,570 $ 96,079 $ 2,970 $ 296,619 Major Sales Channel: Aftermarket $ 168,836 $ 88,681 $ 2,970 $ 260,487 OE/OES 23,345 6,718 — 30,063 Export 5,389 680 — 6,069 Total $ 197,570 $ 96,079 $ 2,970 $ 296,619 Nine (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 577,974 $ 230,581 $ — $ 808,555 Canada 20,655 9,390 7,826 37,871 Mexico 14,601 508 — 15,109 Europe 9,957 424 — 10,381 Other foreign 24,017 728 — 24,745 Total $ 647,204 $ 241,631 $ 7,826 $ 896,661 Major Product Group: Ignition, emission control, fuel and safety related system products $ 538,718 $ — $ 4,625 $ 543,343 Wire and cable 108,486 — 360 108,846 Compressors — 145,080 1,288 146,368 Other climate control parts — 96,551 1,553 98,104 Total $ 647,204 $ 241,631 $ 7,826 $ 896,661 Major Sales Channel: Aftermarket $ 536,228 $ 217,453 $ 7,826 $ 761,507 OE/OES 95,241 22,638 — 117,879 Export 15,735 1,540 — 17,275 Total $ 647,204 $ 241,631 $ 7,826 $ 896,661 Nine (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 534,625 $ 223,861 $ — $ 758,486 Canada 24,401 10,685 7,914 43,000 Mexico 14,142 610 — 14,752 Europe 10,353 469 — 10,822 Other foreign 16,966 1,055 — 18,021 Total $ 600,487 $ 236,680 $ 7,914 $ 845,081 Major Product Group: Ignition, emission control, fuel and safety related system products $ 482,640 $ — $ 4,024 $ 486,664 Wire and cable 117,847 — 467 118,314 Compressors — 131,680 1,832 133,512 Other climate control parts — 105,000 1,591 106,591 Total $ 600,487 $ 236,680 $ 7,914 $ 845,081 Major Sales Channel: Aftermarket $ 510,010 $ 210,990 $ 7,914 $ 728,914 OE/OES 74,202 24,115 — 98,317 Export 16,275 1,575 — 17,850 Total $ 600,487 $ 236,680 $ 7,914 $ 845,081 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. (b) 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. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies [Abstract] | |
Changes in Product Warranties | The following table provides the changes in our product warranties (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance, beginning of period $ 22,086 $ 21,705 $ 19,636 $ 20,929 Liabilities accrued for current year sales 26,112 25,748 76,791 70,126 Settlements of warranty claims (27,573 ) (23,396 ) (75,802 ) (66,998 ) Balance, end of period $ 20,625 $ 24,057 $ 20,625 $ 24,057 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Sep. 30, 2019 |
Basis of Presentation [Abstract] | |
Equity ownership in entities included in consolidated financial statements, minimum | 50.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements [Abstract] | ||
Renewal option period | 5 years | |
Balance Sheet [Abstract] | ||
Operating lease right-of-use asset | $ 34,055 | $ 0 |
Sundry payables and accrued expenses | 31,033 | |
Noncurrent operating lease liabilities | $ 27,214 | 0 |
ASU 2016-02 [Member] | ||
Balance Sheet [Abstract] | ||
Operating lease right-of-use asset | 38,580 | |
Sundry payables and accrued expenses | 38,265 | |
Noncurrent operating lease liabilities | 31,348 | |
ASU 2016-02 [Member] | Adjustments due to Adoption of ASU 2016-02 [Member] | ||
Balance Sheet [Abstract] | ||
Operating lease right-of-use asset | 38,580 | |
Sundry payables and accrued expenses | 7,232 | |
Noncurrent operating lease liabilities | $ 31,348 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | ||
Quantitative Lease Disclosures [Abstract] | ||||
Renewal option period | 5 years | 5 years | ||
Assets [Abstract] | ||||
Operating lease right-of-use assets | $ 34,055 | $ 34,055 | $ 0 | |
Liabilities [Abstract] | ||||
Sundry payables and accrued expenses | 7,899 | 7,899 | ||
Noncurrent operating lease liabilities | 27,214 | 27,214 | $ 0 | |
Present value of lease liabilities | $ 35,113 | $ 35,113 | ||
Operating Leases [Abstract] | ||||
Weighted average remaining lease term | 6 years | 6 years | ||
Weighted average discount rate | 3.80% | 3.80% | ||
Lease Expense [Abstract] | ||||
Operating lease expense | [1] | $ 2,199 | $ 6,633 | |
Excluded expenses of non lease | 1,900 | |||
Cash Paid for the amounts included in the measurement of lease liabilities [Abstract] | ||||
Operating cash flows from operating leases | 6,490 | |||
Right-of-use assets obtained in exchange for new lease obligations [Abstract] | ||||
Operating leases | 856 | |||
Minimum Lease Payments [Abstract] | ||||
2019 | 2,158 | 2,158 | ||
2020 | 7,787 | 7,787 | ||
2021 | 7,088 | 7,088 | ||
2022 | 5,861 | 5,861 | ||
2023 | 5,279 | 5,279 | ||
Thereafter | 11,316 | 11,316 | ||
Total lease payments | 39,489 | 39,489 | ||
Less: Interest | (4,376) | (4,376) | ||
Present value of lease liabilities | $ 35,113 | $ 35,113 | ||
Maximum [Member] | ||||
Quantitative Lease Disclosures [Abstract] | ||||
Remaining operating lease terms | 10 years | |||
[1] | Excludes expenses of approximately $1.9 million related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material. |
Business Acquisitions and Inv_3
Business Acquisitions and Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
May 31, 2019 | Apr. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Aug. 31, 2019 | Mar. 31, 2018 | Apr. 30, 2014 | ||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||
Net sales | [1] | $ 307,723 | $ 296,619 | $ 896,661 | $ 845,081 | ||||||
Assets acquired and liabilities assumed [Abstract] | |||||||||||
Goodwill | $ 77,664 | $ 77,664 | $ 67,321 | ||||||||
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. [Member] | |||||||||||
Business Combination, Description [Abstract] | |||||||||||
Percentage of equity interest acquired in joint venture | 65.00% | 65.00% | 15.00% | 50.00% | |||||||
Investment in unconsolidated affiliates | $ 4,200 | $ 14,000 | |||||||||
Pollak business of Stoneridge, Inc. [Member] | |||||||||||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||
Acquisition of assets and liabilities | $ 40,000 | ||||||||||
Post-closing adjustments amount | $ 1,600 | ||||||||||
Net sales | $ 45,000 | ||||||||||
Purchase Price | 38,427 | ||||||||||
Assets acquired and liabilities assumed [Abstract] | |||||||||||
Inventory | 3,331 | ||||||||||
Property, plant and equipment, net | 45 | ||||||||||
Intangible assets | 24,650 | ||||||||||
Goodwill | 10,401 | ||||||||||
Net assets acquired | 38,427 | ||||||||||
Estimated useful life of intangible assets | 15 years | ||||||||||
Revenues | $ 20,000 | ||||||||||
Pollak business of Stoneridge, Inc. [Member] | Customer Relationships [Member] | |||||||||||
Assets acquired and liabilities assumed [Abstract] | |||||||||||
Intangible assets | 7,200 | ||||||||||
Estimated useful life of intangible assets | 15 years | ||||||||||
Pollak business of Stoneridge, Inc. [Member] | Trademarks [Member] | |||||||||||
Assets acquired and liabilities assumed [Abstract] | |||||||||||
Intangible assets | 200 | ||||||||||
Estimated useful life of intangible assets | 10 years | ||||||||||
Pollak business of Stoneridge, Inc. [Member] | Non-Compete Agreements [Member] | |||||||||||
Assets acquired and liabilities assumed [Abstract] | |||||||||||
Intangible assets | 100 | ||||||||||
Estimated useful life of intangible assets | 5 years | ||||||||||
Pollak business of Stoneridge, Inc. [Member] | OE/OES [Member] | |||||||||||
Assets acquired and liabilities assumed [Abstract] | |||||||||||
Estimated useful life of intangible assets | 10 years | ||||||||||
Pollak business of Stoneridge, Inc. [Member] | OE/OES [Member] | Customer Relationships [Member] | |||||||||||
Assets acquired and liabilities assumed [Abstract] | |||||||||||
Intangible assets | $ 17,200 | ||||||||||
Estimated useful life of intangible assets | 10 years | ||||||||||
Jiangsu Che Yijia New Energy Technology Co., Ltd. [Member] | |||||||||||
Business Combination, Description [Abstract] | |||||||||||
Percentage of equity interest acquired in joint venture | 29.00% | ||||||||||
Investment in unconsolidated affiliates | $ 5,100 | ||||||||||
[1] | Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Restructuring and Integration_3
Restructuring and Integration Expenses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Plant Rationalization Program [Abstract] | ||
Net proceeds from sale of Grapevine, Texas facility | $ 4,801 | $ 0 |
Restructuring and integration activities [Roll Forward] | ||
Exit activity liability, beginning of period | 742 | |
Restructuring and integration costs [Abstract] | ||
Amounts provided for during 2019 | 1,469 | |
Cash payments | (1,448) | |
Reclassification to inventory reserves | (292) | |
Exit activity liability, end of period | 471 | |
Plant Rationalization Program [Member] | ||
Plant Rationalization Program [Abstract] | ||
Net proceeds from sale of Grapevine, Texas facility | 4,800 | |
Restructuring and integration activities [Roll Forward] | ||
Exit activity liability, beginning of period | 304 | |
Restructuring and integration costs [Abstract] | ||
Amounts provided for during 2019 | 0 | |
Cash payments | (77) | |
Exit activity liability, end of period | 227 | |
Orlando Plant Rationalization Program [Member] | ||
Restructuring and integration activities [Roll Forward] | ||
Exit activity liability, beginning of period | 438 | |
Restructuring and integration costs [Abstract] | ||
Amounts provided for during 2019 | 0 | |
Cash payments | (194) | |
Exit activity liability, end of period | 244 | |
Pollak Relocation [Member] | ||
Restructuring and integration activities [Roll Forward] | ||
Exit activity liability, beginning of period | 0 | |
Restructuring and integration costs [Abstract] | ||
Amounts provided for during 2019 | 1,469 | |
Cash payments | (1,177) | |
Reclassification to inventory reserves | (292) | |
Exit activity liability, end of period | 0 | |
Integration expenses | 1,800 | |
Workforce Reduction [Member] | ||
Restructuring and integration activities [Roll Forward] | ||
Exit activity liability, beginning of period | 742 | |
Restructuring and integration costs [Abstract] | ||
Amounts provided for during 2019 | 0 | |
Cash payments | (271) | |
Reclassification to inventory reserves | 0 | |
Exit activity liability, end of period | 471 | |
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 2019 | 1,469 | |
Cash payments | (1,177) | |
Reclassification to inventory reserves | (292) | |
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 2019 | 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 | 438 | |
Restructuring and integration costs [Abstract] | ||
Amounts provided for during 2019 | 0 | |
Cash payments | (194) | |
Exit activity liability, end of period | 244 | |
Engine Management [Member] | Pollak Relocation [Member] | ||
Restructuring and integration activities [Roll Forward] | ||
Exit activity liability, beginning of period | 0 | |
Restructuring and integration costs [Abstract] | ||
Amounts provided for during 2019 | 1,469 | |
Cash payments | (1,177) | |
Reclassification to inventory reserves | (292) | |
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 | 304 | |
Restructuring and integration costs [Abstract] | ||
Amounts provided for during 2019 | 0 | |
Cash payments | (77) | |
Exit activity liability, end of period | 227 | |
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 2019 | 0 | |
Cash payments | 0 | |
Exit activity liability, end of period | 0 | |
Temperature Control [Member] | Pollak Relocation [Member] | ||
Restructuring and integration activities [Roll Forward] | ||
Exit activity liability, beginning of period | 0 | |
Restructuring and integration costs [Abstract] | ||
Amounts provided for during 2019 | 0 | |
Cash payments | 0 | |
Reclassification to inventory reserves | 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 2019 | 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 2019 | 0 | |
Cash payments | 0 | |
Exit activity liability, end of period | 0 | |
Other [Member] | Pollak Relocation [Member] | ||
Restructuring and integration activities [Roll Forward] | ||
Exit activity liability, beginning of period | 0 | |
Restructuring and integration costs [Abstract] | ||
Amounts provided for during 2019 | 0 | |
Cash payments | 0 | |
Reclassification to inventory reserves | 0 | |
Exit activity liability, end of period | $ 0 |
Sale of Receivables (Details)
Sale of Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Sale of Receivables [Abstract] | ||||
Sale of receivables to financial institutions | $ 199.6 | $ 224.4 | $ 560.6 | $ 566 |
Charge related to sale of receivables | $ 5.6 | $ 7.3 | $ 17.7 | $ 19 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Finished goods | $ 217,708 | $ 226,802 |
Work in process | 9,475 | 10,527 |
Raw materials | 113,048 | 112,482 |
Subtotal | 340,231 | 349,811 |
Unreturned customer inventories | 20,325 | 20,484 |
Total inventories | $ 360,556 | $ 370,295 |
Acquired Intangible Assets, Ide
Acquired Intangible Assets, Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | $ 123,457 | $ 98,871 | |
Less accumulated amortization | [1] | (57,329) | (51,391) |
Net acquired intangible assets | 66,128 | 47,480 | |
Customer Relationships [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 111,521 | 87,195 | |
Trademarks [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 6,980 | 6,800 | |
Non-compete Agreements [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 3,273 | 3,193 | |
Patents [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 723 | 723 | |
Supply Agreements [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 800 | 800 | |
Leaseholds [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | $ 160 | $ 160 | |
[1] | Applies to all intangible assets, except for trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being amortized. |
Acquired Intangible Assets, Acq
Acquired Intangible Assets, Acquired Assets and Liabilities and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Apr. 30, 2019 | |
Amortization of acquired intangible assets [Abstract] | |||||
Amortization expense | $ 2,000 | $ 1,900 | $ 6,000 | $ 5,700 | |
Estimated amortization expense, remainder of 2019 | 2,000 | 2,000 | |||
Estimated amortization expense in year 2020 | 8,100 | 8,100 | |||
Estimated amortization expense in year 2021 | 6,800 | 6,800 | |||
Estimated amortization expense in year 2022 | 5,200 | 5,200 | |||
Estimated amortization expense in years 2023 through 2034 | 38,800 | 38,800 | |||
Trademarks [Member] | |||||
Intangible assets acquired [Abstract] | |||||
Amount of acquired indefinite-lived intangible assets | $ 5,200 | $ 5,200 | |||
Pollak business of Stoneridge, Inc. [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Intangible assets | $ 24,650 | ||||
Estimated useful life of intangible assets | 15 years | ||||
Pollak business of Stoneridge, Inc. [Member] | OE/OES [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life of intangible assets | 10 years | ||||
Pollak business of Stoneridge, Inc. [Member] | Customer Relationships [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Intangible assets | 7,200 | ||||
Estimated useful life of intangible assets | 15 years | ||||
Pollak business of Stoneridge, Inc. [Member] | Customer Relationships [Member] | OE/OES [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Intangible assets | 17,200 | ||||
Estimated useful life of intangible assets | 10 years | ||||
Pollak business of Stoneridge, Inc. [Member] | Trademarks [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Intangible assets | 200 | ||||
Estimated useful life of intangible assets | 10 years | ||||
Pollak business of Stoneridge, Inc. [Member] | Non-compete Agreements [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Intangible assets | $ 100 | ||||
Estimated useful life of intangible assets | 5 years |
Credit Facilities and Long-Te_3
Credit Facilities and Long-Term Debt, Total Debt Outstanding (Details) $ in Thousands, zł in Millions | Sep. 30, 2019PLN (zł) | Sep. 30, 2019USD ($) | Dec. 31, 2018PLN (zł) | Dec. 31, 2018USD ($) | |
Credit Facilities and Long-Term Debt [Abstract] | |||||
Revolving credit facilities | $ 78,211 | $ 43,689 | |||
Other | [1] | 5,357 | 5,530 | ||
Total debt | 83,568 | 49,219 | |||
Current maturities of debt | 83,436 | 49,066 | |||
Long-term debt | 132 | 153 | |||
HSBC Bank Polska S.A. [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Overdraft facility | zł 20.7 | $ 5,200 | zł 19.9 | $ 5,300 | |
[1] | Other includes borrowings under our Polish overdraft facility of Zloty 20.7 million (approximately $5.2 million) and Zloty 19.9 million (approximately $5.3 million) as of September 30, 2019 and December 31, 2018, respectively. |
Credit Facilities and Long-Te_4
Credit Facilities and Long-Term Debt, Revolving Credit Facility (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Line of Credit Facility [Abstract] | |||
Notes payable | $ 78,211 | $ 43,689 | |
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 | Dec. 31, 2023 | ||
Additional available borrowing capacity | $ 168,600 | ||
Notes payable | $ 78,200 | $ 43,700 | |
Weighted average interest rate | 3.40% | 3.90% | |
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] | |||
Notes payable | $ 3,200 | $ 3,700 | |
Weighted average interest rate | 5.30% | 5.80% | |
Average daily loan balance outstanding | $ 1,600 | $ 2,000 | $ 1,800 |
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] | |||
Notes payable | $ 75,000 | $ 40,000 | |
Weighted average interest rate | 3.20% | 3.40% | |
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] | Cash Dividend 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-Te_5
Credit Facilities and Long-Term Debt, Polish Overdraft Facility (Details) - HSBC Bank Polska S.A. [Member] zł in Millions, $ in Millions | 9 Months Ended | |||
Sep. 30, 2019PLN (zł) | Sep. 30, 2019USD ($) | Dec. 31, 2018PLN (zł) | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | zł 30 | $ 7.5 | ||
Overdraft facility | zł 20.7 | $ 5.2 | zł 19.9 | $ 5.3 |
1M WIBOR [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable rate | 0.75% |
Credit Facilities and Long-Te_6
Credit Facilities and Long-Term Debt, Deferred Financing Costs (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Deferred Financing Costs [Abstract] | ||
Deferred financing costs | $ 0.9 | $ 1.1 |
Amortization of financing costs reminder of 2019 | 0.1 | |
Amortization of financing costs in 2020 | 0.2 | |
Amortization of financing costs in 2021 | 0.2 | |
Amortization of financing costs in 2022 | 0.2 | |
Amortization of financing costs in 2023 | $ 0.2 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Additional Disclosures [Abstract] | ||
Compensation expense, gross | $ 5,742 | $ 5,614 |
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) | 870,041 | |
Granted (in shares) | 204,650 | |
Vested (in shares) | (68,945) | |
Forfeited (in shares) | (11,950) | |
End of period (in shares) | 993,796 | |
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward] | ||
Beginning of period (in dollars per share) | $ 34.59 | |
Granted (in dollars per share) | 42.05 | |
Vested (in dollars per share) | 28.89 | |
Forfeited (in dollars per share) | 44.11 | |
End of period (in dollars per share) | $ 36.40 | |
Additional Disclosures [Abstract] | ||
Compensation expense, gross | $ 5,300 | 5,000 |
Compensation expense, net of tax | 3,900 | $ 3,700 |
Unamortized compensation expense | $ 17,900 | |
Restricted and Performance-Based Shares [Member] | Employees [Member] | ||
Additional Disclosures [Abstract] | ||
Weighted average period of recognition for unrecognized compensation expense | 3 years 10 months 24 days | |
Restricted and Performance-Based Shares [Member] | Directors [Member] | ||
Additional Disclosures [Abstract] | ||
Weighted average period of recognition for unrecognized compensation expense | 7 months 6 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 Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2019USD ($) | Sep. 30, 2019Employeeshares | |
Benefit Plan [Abstract] | ||
Number of former union employees covered by the plan | Employee | 19 | |
Supplemental Executive Retirement Plan [Member] | ||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||
Employer discretionary contribution amount | $ | $ 0.3 | |
Employee Stock Ownership Plan and Trust (ESOP) [Member] | ||
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract] | ||
Additional shares contributed to ESOP (in shares) | 49,100 | |
Shares released from trust (in shares) | 49,100 | |
Total remaining balance of shares in the ESOP (in shares) | 200 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic Net Earnings Per Common Share [Abstract] | ||||
Earnings from continuing operations | $ 22,654 | $ 19,273 | $ 56,313 | $ 44,697 |
Loss from discontinued operations | (7,903) | (3,524) | (9,914) | (5,014) |
Net earnings available to common stockholders | $ 14,751 | $ 15,749 | $ 46,399 | $ 39,683 |
Weighted average common shares outstanding (in shares) | 22,329,835 | 22,424,962 | 22,359,637 | 22,464,697 |
Earnings from continuing operations per common share (in dollars per share) | $ 1.01 | $ 0.86 | $ 2.52 | $ 1.99 |
Loss from discontinued operations per common share (in dollars per share) | (0.35) | (0.16) | (0.44) | (0.22) |
Net earnings per common share - Basic (in dollars per share) | $ 0.66 | $ 0.70 | $ 2.08 | $ 1.77 |
Diluted Net Earnings Per Common Share [Abstract] | ||||
Earnings from continuing operations | $ 22,654 | $ 19,273 | $ 56,313 | $ 44,697 |
Loss from discontinued operations | (7,903) | (3,524) | (9,914) | (5,014) |
Net earnings available to common stockholders | $ 14,751 | $ 15,749 | $ 46,399 | $ 39,683 |
Weighted average common shares outstanding (in shares) | 22,329,835 | 22,424,962 | 22,359,637 | 22,464,697 |
Plus incremental shares from assumed conversions [Abstract] | ||||
Dilutive effect of restricted stock and performance-based stock (in shares) | 424,000 | 514,000 | 454,000 | 490,000 |
Weighted average common shares outstanding - Diluted (in shares) | 22,754,440 | 22,938,925 | 22,814,228 | 22,954,649 |
Earnings from continuing operations per common share (in dollars per share) | $ 1 | $ 0.84 | $ 2.47 | $ 1.95 |
Loss from discontinued operations per common share (in dollars per share) | (0.35) | (0.15) | (0.44) | (0.22) |
Net earnings per common share - Diluted (in dollars per share) | $ 0.65 | $ 0.69 | $ 2.03 | $ 1.73 |
Restricted and Performance-Based Shares [Member] | ||||
Earnings Per Share[Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 269,000 | 210,000 | 260,000 | 246,000 |
Industry Segments (Details)
Industry Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Segment | Sep. 30, 2018USD ($) | ||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Number of reportable operating segments | Segment | 2 | ||||
Net sales | [1] | $ 307,723 | $ 296,619 | $ 896,661 | $ 845,081 |
Operating income | 31,304 | 27,178 | 76,989 | 62,835 | |
Intersegment Revenues [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] | 215,973 | 197,570 | 647,204 | 600,487 |
Operating income | 29,477 | 21,635 | 77,530 | 62,149 | |
Engine Management [Member] | Intersegment Revenues [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 4,758 | 6,500 | 15,028 | 17,472 |
Temperature Control [Member] | Reportable Segments [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 88,301 | 96,079 | 241,631 | 236,680 |
Operating income | 7,478 | 8,571 | 16,682 | 14,284 | |
Temperature Control [Member] | Intersegment Revenues [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 1,504 | 2,444 | 5,223 | 6,264 |
All Other [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 3,449 | 2,970 | 7,826 | 7,914 |
Operating income | (5,651) | (3,028) | (17,223) | (13,598) | |
All Other [Member] | Intersegment Revenues [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | $ (6,262) | $ (8,944) | $ (20,251) | $ (23,736) |
[1] | 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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | $ 307,723 | $ 296,619 | $ 896,661 | $ 845,081 |
Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 265,565 | 260,487 | 761,507 | 728,914 |
OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 36,257 | 30,063 | 117,879 | 98,317 |
Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 5,901 | 6,069 | 17,275 | 17,850 |
Ignition, Emission Control, Fuel and Safety Related System Products [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 182,568 | 160,272 | 543,343 | 486,664 |
Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 35,495 | 38,587 | 108,846 | 118,314 |
Compressors [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 53,532 | 55,912 | 146,368 | 133,512 |
Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 36,128 | 41,848 | 98,104 | 106,591 |
United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 281,028 | 267,550 | 808,555 | 758,486 |
Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 12,919 | 15,870 | 37,871 | 43,000 |
Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 5,379 | 5,128 | 15,109 | 14,752 |
Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 3,433 | 3,383 | 10,381 | 10,822 |
Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 4,964 | 4,688 | 24,745 | 18,021 |
Engine Management [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 215,973 | 197,570 | 647,204 | 600,487 |
Engine Management [Member] | Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 180,535 | 168,836 | 536,228 | 510,010 |
Engine Management [Member] | OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 30,135 | 23,345 | 95,241 | 74,202 |
Engine Management [Member] | Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 5,303 | 5,389 | 15,735 | 16,275 |
Engine Management [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 180,826 | 159,101 | 538,718 | 482,640 |
Engine Management [Member] | Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 35,147 | 38,469 | 108,486 | 117,847 |
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] | 195,953 | 175,863 | 577,974 | 534,625 |
Engine Management [Member] | Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 6,853 | 9,309 | 20,655 | 24,401 |
Engine Management [Member] | Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 5,234 | 4,909 | 14,601 | 14,142 |
Engine Management [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 3,283 | 3,227 | 9,957 | 10,353 |
Engine Management [Member] | Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 4,650 | 4,262 | 24,017 | 16,966 |
Temperature Control [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 88,301 | 96,079 | 241,631 | 236,680 |
Temperature Control [Member] | Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 81,581 | 88,681 | 217,453 | 210,990 |
Temperature Control [Member] | OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 6,122 | 6,718 | 22,638 | 24,115 |
Temperature Control [Member] | Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 598 | 680 | 1,540 | 1,575 |
Temperature Control [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [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] | 52,776 | 54,842 | 145,080 | 131,680 |
Temperature Control [Member] | Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 35,525 | 41,237 | 96,551 | 105,000 |
Temperature Control [Member] | United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 85,075 | 91,687 | 230,581 | 223,861 |
Temperature Control [Member] | Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 2,617 | 3,591 | 9,390 | 10,685 |
Temperature Control [Member] | Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 145 | 219 | 508 | 610 |
Temperature Control [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 150 | 156 | 424 | 469 |
Temperature Control [Member] | Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 314 | 426 | 728 | 1,055 |
Other [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 3,449 | 2,970 | 7,826 | 7,914 |
Other [Member] | Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 3,449 | 2,970 | 7,826 | 7,914 |
Other [Member] | OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 |
Other [Member] | Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 |
Other [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 1,742 | 1,171 | 4,625 | 4,024 |
Other [Member] | Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 348 | 118 | 360 | 467 |
Other [Member] | Compressors [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 756 | 1,070 | 1,288 | 1,832 |
Other [Member] | Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 603 | 611 | 1,553 | 1,591 |
Other [Member] | United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 |
Other [Member] | Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 3,449 | 2,970 | 7,826 | 7,914 |
Other [Member] | Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 |
Other [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 |
Other [Member] | Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. | ||||
[2] | 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. |
Commitments and Contingencies,
Commitments and Contingencies, Asbestos (Details) - Asbestos [Member] $ in Millions | Feb. 28, 2019USD ($) | Sep. 30, 2019USD ($)Claim | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($)Claim |
Asbestos [Abstract] | ||||
Pending claims, approximate number | Claim | 1,500 | 1,500 | ||
Payments for settled claims | $ 30.5 | |||
Compensatory damages, amount of company responsibility | $ 7.6 | |||
Litigation settlement accrued interest rate | 10.00% | |||
Minimum [Member] | ||||
Asbestos [Abstract] | ||||
Range of possible loss | $ 52 | $ 46.7 | 52 | |
Incremental pre-tax provision | 9.7 | |||
Increase in the range of possible loss | 5.3 | |||
Maximum [Member] | ||||
Asbestos [Abstract] | ||||
Range of possible loss | 90.6 | 90.6 | ||
Increase in the range of possible loss | 6.7 | |||
Discontinued Operations [Member] | ||||
Asbestos [Abstract] | ||||
Incremental pre-tax provision | $ 10.1 | |||
Discontinued Operations [Member] | Minimum [Member] | ||||
Asbestos [Abstract] | ||||
Range of possible loss | 50.6 | 50.6 | ||
Discontinued Operations [Member] | Maximum [Member] | ||||
Asbestos [Abstract] | ||||
Range of possible loss | $ 85.2 | $ 85.2 |
Commitments and Contingencies_2
Commitments and Contingencies, Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Changes in product warranties [Roll forward] | ||||
Balance, beginning of period | $ 22,086 | $ 21,705 | $ 19,636 | $ 20,929 |
Liabilities accrued for current year sales | 26,112 | 25,748 | 76,791 | 70,126 |
Settlements of warranty claims | (27,573) | (23,396) | (75,802) | (66,998) |
Balance, end of period | $ 20,625 | $ 24,057 | $ 20,625 | $ 24,057 |