Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 27, 2020 | |
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 | 22,348,271 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
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, 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 | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | |||||
Net sales | [1] | $ 247,939 | $ 305,172 | $ 502,241 | $ 588,938 |
Cost of sales | 183,581 | 216,267 | 367,488 | 422,070 | |
Gross profit | 64,358 | 88,905 | 134,753 | 166,868 | |
Selling, general and administrative expenses | 48,328 | 60,536 | 104,201 | 120,536 | |
Restructuring and integration expenses | 9 | 644 | 214 | 644 | |
Other income (expense), net | 0 | 3 | 6 | (3) | |
Operating income | 16,021 | 27,728 | 30,344 | 45,685 | |
Other non-operating income, net | 602 | 1,411 | 78 | 2,057 | |
Interest expense | 772 | 1,722 | 1,645 | 2,811 | |
Earnings from continuing operations before taxes | 15,851 | 27,417 | 28,777 | 44,931 | |
Provision for income taxes | 4,009 | 6,862 | 7,314 | 11,272 | |
Earnings from continuing operations | 11,842 | 20,555 | 21,463 | 33,659 | |
Loss from discontinued operations, net of income taxes | (875) | (1,123) | (1,869) | (2,011) | |
Net earnings | $ 10,967 | $ 19,432 | $ 19,594 | $ 31,648 | |
Net earnings per common share - Basic: | |||||
Earnings from continuing operations (in dollars per share) | $ 0.53 | $ 0.92 | $ 0.96 | $ 1.50 | |
Discontinued operations (in dollars per share) | (0.04) | (0.05) | (0.08) | (0.09) | |
Net earnings per common share - Basic (in dollars per share) | 0.49 | 0.87 | 0.88 | 1.41 | |
Net earnings per common share - Diluted: | |||||
Earnings from continuing operations (in dollars per share) | 0.52 | 0.90 | 0.94 | 1.47 | |
Discontinued operations (in dollars per share) | (0.04) | (0.05) | (0.08) | (0.09) | |
Net earnings per common share - Diluted (in dollars per share) | 0.48 | 0.85 | 0.86 | 1.38 | |
Dividends declared per share (in dollars per share) | $ 0 | $ 0.23 | $ 0.25 | $ 0.46 | |
Average number of common shares (in shares) | 22,330,476 | 22,328,292 | 22,384,281 | 22,374,785 | |
Average number of common shares and dilutive common shares (in shares) | 22,718,680 | 22,795,677 | 22,793,606 | 22,857,435 | |
[1] | Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Net earnings | $ 10,967 | $ 19,432 | $ 19,594 | $ 31,648 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 1,877 | 398 | (4,424) | 1,093 |
Pension and postretirement plans | (4) | (5) | (8) | (10) |
Total other comprehensive income (loss), net of tax | 1,873 | 393 | (4,432) | 1,083 |
Comprehensive income | $ 12,840 | $ 19,825 | $ 15,162 | $ 32,731 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 22,510 | $ 10,372 |
Accounts receivable, less allowances for discounts and doubtful accounts of $5,774 and $5,212 for 2020 and 2019, respectively | 184,518 | 135,516 |
Inventories | 353,315 | 368,221 |
Unreturned customer inventories | 18,868 | 19,722 |
Prepaid expenses and other current assets | 10,687 | 15,602 |
Total current assets | 589,898 | 549,433 |
Property, plant and equipment, net of accumulated depreciation of $205,897 and $199,476 for 2020 and 2019, respectively | 88,022 | 89,649 |
Operating lease right-of-use assets | 32,536 | 36,020 |
Goodwill | 77,593 | 77,802 |
Other intangibles, net | 60,594 | 64,861 |
Deferred income taxes | 37,040 | 37,272 |
Investments in unconsolidated affiliates | 39,319 | 38,858 |
Other assets | 19,763 | 18,835 |
Total assets | 944,765 | 912,730 |
CURRENT LIABILITIES: | ||
Notes payable | 85,000 | 52,460 |
Current portion of other debt | 6,084 | 4,456 |
Accounts payable | 72,133 | 92,535 |
Sundry payables and accrued expenses | 33,518 | 38,819 |
Accrued customer returns | 64,803 | 44,116 |
Accrued core liability | 19,440 | 24,357 |
Accrued rebates | 35,550 | 26,072 |
Payroll and commissions | 21,078 | 26,649 |
Total current liabilities | 337,606 | 309,464 |
Long-term debt | 108 | 129 |
Noncurrent operating lease liabilities | 25,148 | 28,376 |
Other accrued liabilities | 23,539 | 20,837 |
Accrued asbestos liabilities | 47,708 | 49,696 |
Total liabilities | 434,109 | 408,502 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock - par value $2.00 per share: Authorized - 30,000,000 shares; issued 23,936,036 shares | 47,872 | 47,872 |
Capital in excess of par value | 104,128 | 102,742 |
Retained earnings | 431,416 | 417,437 |
Accumulated other comprehensive income | (13,021) | (8,589) |
Treasury stock - at cost (1,587,765 shares and 1,477,594 shares in 2020 and 2019, respectively) | (59,739) | (55,234) |
Total stockholders' equity | 510,656 | 504,228 |
Total liabilities and stockholders' equity | $ 944,765 | $ 912,730 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Accounts receivable, allowances for discounts and doubtful accounts | $ 5,774 | $ 5,212 |
Property, plant and equipment, accumulated depreciation | $ 205,897 | $ 199,476 |
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) | 1,587,765 | 1,477,594 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 19,594 | $ 31,648 |
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Depreciation and amortization | 12,877 | 12,744 |
Amortization of deferred financing cost | 114 | 113 |
Increase to allowance for doubtful accounts | 376 | 337 |
Increase to inventory reserves | 3,048 | 1,552 |
Equity income from joint ventures | (429) | (2,047) |
Employee stock ownership plan allocation | 1,150 | 1,260 |
Stock-based compensation | 3,306 | 3,848 |
Decrease in deferred income taxes | 232 | 2,547 |
Loss on discontinued operations, net of tax | 1,869 | 2,011 |
Change in assets and liabilities: | ||
Increase in accounts receivable | (51,326) | (26,622) |
(Increase) decrease in inventories | 12,725 | (19,691) |
(Increase) decrease in prepaid expenses and other current assets | 5,664 | (6,406) |
Decrease in accounts payable | (21,804) | (6,994) |
Increase (decrease) in sundry payables and accrued expenses | 14,788 | (7,545) |
Net change in other assets and liabilities | (3,069) | (6,261) |
Net cash used in operating activities | (885) | (19,506) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of and investments in businesses | 0 | (38,427) |
Net proceeds from sale of Grapevine, Texas facility | 0 | 4,801 |
Capital expenditures | (9,026) | (7,578) |
Other investing activities | 6 | 46 |
Net cash used in investing activities | (9,020) | (41,158) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net borrowings under line-of-credit agreements | 32,540 | 86,311 |
Net borrowings (payments) of other debt and capital lease obligations | 1,809 | (355) |
Purchase of treasury stock | (8,726) | (10,738) |
Increase in overdraft balances | 1,818 | 1,691 |
Dividends paid | (5,615) | (10,296) |
Net cash provided by financing activities | 21,826 | 66,613 |
Effect of exchange rate changes on cash | 217 | 332 |
Net increase in cash and cash equivalents | 12,138 | 6,281 |
CASH AND CASH EQUIVALENTS at beginning of period | 10,372 | 11,138 |
CASH AND CASH EQUIVALENTS at end of period | 22,510 | 17,419 |
Cash paid during the period for: | ||
Interest | 1,561 | 2,516 |
Income taxes | $ 1,030 | $ 13,785 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
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 | 31,648 | 0 | 0 | 31,648 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 1,083 | 0 | 1,083 |
Cash dividends paid | 0 | 0 | (10,296) | 0 | 0 | (10,296) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (10,738) | (10,738) |
Stock-based compensation | 0 | 2,132 | 0 | 0 | 1,716 | 3,848 |
Employee Stock Ownership Plan | 0 | 745 | 0 | 0 | 2,519 | |
Employee Stock Ownership Plan | 1,774 | |||||
Balance at end of period at Jun. 30, 2019 | 47,872 | 105,347 | 401,465 | (8,511) | (60,908) | 485,265 |
Balance at beginning of period at Mar. 31, 2019 | 47,872 | 104,467 | 387,170 | (8,904) | (57,565) | 473,040 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 19,432 | 0 | 0 | 19,432 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 393 | 0 | 393 |
Cash dividends paid | 0 | 0 | (5,137) | 0 | 0 | (5,137) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (4,411) | (4,411) |
Stock-based compensation | 0 | 880 | 0 | 0 | 1,068 | 1,948 |
Balance at end of period at Jun. 30, 2019 | 47,872 | 105,347 | 401,465 | (8,511) | (60,908) | 485,265 |
Balance at beginning of period at Dec. 31, 2019 | 47,872 | 102,742 | 417,437 | (8,589) | (55,234) | 504,228 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 19,594 | 0 | 0 | 19,594 |
Other comprehensive income, net of tax | 0 | 0 | 0 | (4,432) | 0 | (4,432) |
Cash dividends paid | 0 | 0 | (5,615) | 0 | 0 | (5,615) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (8,726) | (8,726) |
Stock-based compensation | 0 | 756 | 0 | 0 | 2,550 | 3,306 |
Employee Stock Ownership Plan | 0 | 630 | 0 | 0 | 2,301 | |
Employee Stock Ownership Plan | 1,671 | |||||
Balance at end of period at Jun. 30, 2020 | 47,872 | 104,128 | 431,416 | (13,021) | (59,739) | 510,656 |
Balance at beginning of period at Mar. 31, 2020 | 47,872 | 104,245 | 420,449 | (14,894) | (61,059) | 496,613 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 10,967 | 0 | 0 | 10,967 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 1,873 | 0 | 1,873 |
Cash dividends paid | 0 | 0 | 0 | 0 | 0 | 0 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation | 0 | (117) | 0 | 0 | 1,320 | 1,203 |
Balance at end of period at Jun. 30, 2020 | $ 47,872 | $ 104,128 | $ 431,416 | $ (13,021) | $ (59,739) | $ 510,656 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation Standard Motor Products, Inc. and subsidiaries (referred to hereinafter in these notes to the consolidated financial statements as “we,” “us,” “our” or the “Company”) is engaged in the manufacture and distribution of replacement parts for motor vehicles in the automotive aftermarket industry with a complementary focus on the heavy duty, industrial equipment and original equipment service 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, 2019. 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 | 6 Months Ended |
Jun. 30, 2020 | |
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 assurances that actual results will not differ from those estimates. Although we do not believe that there is a reasonable likelihood that there will be a material change in the future estimates, or in the assumptions that we use in calculating the estimates, the uncertain future effects of the COVID- pandemic based upon the volatility, uncertainty and potential economic disruption caused by the pandemic, and other unforeseen changes in the industry, or business, could materially impact the estimates, and may have a material adverse effect on our business, financial condition and results of operations. 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 of the notes to our consolidated financial statements in our Annual Report on Form -K for the year ended December Recently Issued Accounting Pronouncements Standards that were adopted Standard Description Date of adoption Effects on the financial statements or other significant matters ASU - Simplifying the Test for Goodwill Impairment This standard simplifies the accounting for goodwill impairment. ASU - removes Step 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 The new standard will be applied prospectively when performing our annual impairment test of goodwill, or in an interim period if an event occurs, or circumstances change, that may indicate that the fair value of a reporting unit is below its carrying amount. We anticipate that the prospective adoption of the standard will not materially impact the amount of goodwill impairment, if any. ASU - 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 The adoption of the standard did not 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. Standards that are not yet adopted as of June The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted as of June and that could have an impact on our financial statements: Standard Description Date of adoption / Effective date Effects on the financial statements or other significant matters ASU - Income Taxes (Topic 740) : Simplifying the Accounting for Income Taxes This standard is intended to simplify the accounting for income taxes by removing certain ASC Topic exceptions in performing intra-period tax allocations among income statement components, in calculating certain deferred tax liabilities related to outside basis differences, and in calculating income taxes in interim periods with year-to-date losses. In addition, this standard is also intended to improve consistency and add simplification by clarifying and amending the reporting of franchise taxes and other taxes partially based on income, the recognition of deferred income taxes related to the step-up in tax basis goodwill, and the reporting in interim periods of the recognition of the enactment of tax laws or rate changes. January with early adoption permitted The new standard clarifies the accounting for income taxes in certain technical areas that will not impact all companies. Although we currently believe that the technical clarifications in the new standard will not materially impact our accounting for income taxes, our consolidated financial statements and related disclosures upon adoption, we are currently evaluating its potential impact. The new standard can be applied on a prospective basis in certain instances and in other instances on a retrospective or modified retrospective basis. ASU - Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting This standard is intended to provide optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The new standard is applicable to contracts that reference LIBOR, or another reference rate, expected to be discontinued due to reference rate reform. Effective March through December The new standard may be applied as of the beginning of an interim period that includes March through December As certain of our contracts reference LIBOR, including our revolving credit facility and supply chain financing arrangements, we are currently reviewing the optional guidance in the standard to determine its impact upon the discontinuance of LIBOR. At this time, we do not believe that the new guidance, nor the discontinuance of LIBOR, will have a material impact on our consolidated financial statements and related disclosures. |
Business Acquisitions and Inves
Business Acquisitions and Investments | 6 Months Ended |
Jun. 30, 2020 | |
Business Acquisitions and Investments [Abstract] | |
Business Acquisitions and Investments | Note 3. 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 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 have not acquired any of the Pollak facilities or employees, and have relocated all production to our existing facilities. 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. Incremental net sales from the acquired Pollak business were for the months ended March and were included in our consolidated statements of operations for the six months ended June 30, 2020. |
Restructuring and Integration E
Restructuring and Integration Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Integration Expenses [Abstract] | |
Restructuring and Integration Expenses | Note 4. 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, 2019 and June 30, 2020 and activity for the six months ended June 30, 2020 consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2019 $ 336 $ — $ 336 Restructuring and integration costs: Amounts provided for during 2020 — 214 214 Cash payments (60 ) (214 ) (274 ) Exit activity liability at June 30, 2020 $ 276 $ — $ 276 Restructuring Costs Plant Rationalization Program In February in connection with our ongoing efforts to improve operating efficiencies and reduce costs, we implemented 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; certain production activities at our Greenville, South Carolina facility were moved to our facility in Bialystok, Poland; certain service functions were relocated from Grapevine, Texas to our administrative offices in Lewisville, Texas; and our vacated Grapevine, Texas facility was sold. The Plant Rationalization Program has been completed. Cash payments made of during the months ended June and the remaining aggregate liability related to the program as of June of consists of severance payments to former Temperature Control employees. Orlando Plant Rationalization Program In January to further our ongoing efforts to improve operating efficiencies and reduce costs, we implemented a plant rationalization initiative at our Orlando, Florida facility. As part of the initiative, all of our Orlando, Florida production activities were moved to our facility in Independence, Kansas; certain production activities at our Independence, Kansas facility were moved to our facility in Reynosa, Mexico; and our Orlando, Florida facility was closed. The Orlando Plant Rationalization Program has been completed. Cash payments made of during the months ended June and the remaining aggregate liability related to the program as of June of $ consists of severance payments to former Engine Management employees. Integration Costs Pollak Relocation In connection with our April acquisition of certain assets and liabilities of the Pollak business of Stoneridge, Inc., we incurred 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. The Pollak Relocation has been completed. Integration expense recognized and cash payments made of during the months ended June related to residual relocation activities in our Engine Management segment. There is remaining aggregate liability related to the Pollak Relocation as of June |
Sale of Receivables
Sale of Receivables | 6 Months Ended |
Jun. 30, 2020 | |
Sale of Receivables [Abstract] | |
Sale of Receivables | Note 5. Sale of Receivables We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements 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 $ million and $ million of receivables during the three months and six months ended June 30, 2020, respectively, and $ million and $ million for the comparable periods in 2019, all of which were reflected as a reduction of accounts receivable in the consolidated balance sheet at the time of sale. A charge in the amount of $ million and $ million related to the sale of receivables was included in selling, general and administrative expense in our consolidated statements of operations for the three months and six months ended June 30, 2020, respectively, and $ million and $ million for the comparable periods in 2019. To the extent that these arrangements are terminated, our financial condition, results of operations, cash flows and liquidity could be adversely affected by extended payment terms, delays or failures in collecting trade accounts receivables. The utility of the supply chain financing arrangements also depends upon the LIBOR rate, as it is a component of the discount rate applicable to each arrangement. If the LIBOR rate increases significantly, we may be negatively impacted as we may not be able to pass these added costs on to our customers, which could have a material and adverse effect upon our financial condition, results of operations and cash flows. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventories [Abstract] | |
Inventories | Note 6. 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: June 30, 2020 December 31, 2019 (In thousands) Finished goods $ 216,541 $ 241,472 Work in process 12,659 11,138 Raw materials 124,115 115,611 Subtotal 353,315 368,221 Unreturned customer inventories 18,868 19,722 Total inventories $ 372,183 $ 387,943 |
Acquired Intangible Assets
Acquired Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Acquired Intangible Assets [Abstract] | |
Acquired Intangible Assets | Note 7. Acquired Intangible Assets Acquired identifiable intangible assets consist of the following: June 30, 2020 December 31, 2019 (In thousands) Customer relationships $ 111,409 $ 111,692 Trademarks and trade names 6,980 6,980 Non-compete agreements 3,264 3,276 Patents 723 723 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 123,336 123,631 Less accumulated amortization (1) (63,435 ) (59,431 ) Net acquired intangible assets $ 59,901 $ 64,200 (1) Applies to all intangible assets, except for trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being amortized. Total amortization expense for acquired intangible assets was $2 million and $4.1 million for the three months and six months ended June 30, 2020, respectively, and $ million and $ million for the comparable periods in 2019. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 8. Leases 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 : Balance Sheet Information June 30, 2020 December 31, 2019 Assets Operating lease right-of-use assets $ 32,536 $ 36,020 Liabilities Sundry payables and accrued expenses $ 8,555 $ 8,739 Noncurrent operating lease liabilities 25,148 28,376 Total operating lease liabilities $ 33,703 $ 37,115 Weighted Average Remaining Lease Term Operating leases 5.3 Years 5.6 Years Weighted Average Discount Rate Operating leases 3.7 % 3.7 % Three Months Ended June 30, Expense and Cash Flow Information 2020 2019 Lease Expense Operating lease expense (a) $ 2,303 $ 2,210 Six Months Ended June 30, 2020 2019 Lease Expense Operating lease expense (a) $ 4,616 $ 4,434 Supplemental Cash Flow Information Cash paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,544 $ 4,239 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 380 $ 744 (a) Excludes expenses of approximately $ million and $ million for the three and six months ended June 30, 2020, respectively, and approximately $ million and $ million for the comparable periods in 2019, respectively, Minimum Lease Payments At June 30, 2020, we are obligated to make minimum lease payments through 2028, under operating leases, which are as follows (in thousands): 2020 $ 4,461 2021 8,421 2022 7,020 2023 5,685 2024 3,881 Thereafter 7,844 Total lease payments $ 37,312 Less: Interest (3,609 ) Present value of lease liabilities $ 33,703 |
Credit Facilities and Long-Term
Credit Facilities and Long-Term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Credit Facilities and Long-Term Debt | Note 9. Credit Facilities and Long-Term Debt Total debt outstanding is summarized as follows: June 30, 2020 December 31, 2019 (In thousands) Revolving credit facilities $ 85,000 $ 52,460 Other (1) 6,192 4,585 Total debt $ 91,192 $ 57,045 Current maturities of debt $ 91,084 $ 56,916 Long-term debt 108 129 Total debt $ 91,192 $ 57,045 (1) Other includes borrowings under our Polish overdraft facility of Zloty 24.1 million (approximately $6 million) and Zloty 16.7 million (approximately $4.4 million) as of June 30, 2020 and December 31, 2019, 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 supply chain financing agreements and eligible inventory. In April 2020, we borrowed an additional $ million under the amended credit agreement. The borrowing was made as a precautionary measure to increase our cash position and preserve financial flexibility in light of the uncertainty in the global markets resulting from the COVID-19 pandemic. In June 2020, we repaid the additional $ million of borrowed funds. After taking into account outstanding borrowings under the amended credit agreement, there was an additional $146.4 million available for us to borrow pursuant to the formula at June 30, 2020. Outstanding borrowings under the amended credit agreement, which are classified as current liabilities, were $85 million and $52.5 million at June 30, 2020 and December 31, 2019, respectively; while letters of credit outstanding under the credit agreement were $ million at June 30, 2020 and December 31, 2019 At June 30, 2020, the weighted average interest rate on our amended credit agreement was 1.4%, which consisted of $85 million in direct borrowings. At December 31, 2019, the weighted average interest rate on our amended credit agreement was 3.5%, which consisted of $40 million in direct borrowings at 2.3% and an alternative base rate loan of $12.5 million at 5%. During the six months ended June 30, 2020, our average daily alternative base rate loan balance was $1.7 million, compared to a balance of $1.6 million for the six months ended June 30, 2019 and a balance of $1.7 million for the year ended December 31, 2019. 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 June 30, 2020, 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 France (Spolka Akcyjna) Oddzial w Polsce, formerly HSBC Bank Polska S.A., for Zloty 30 million (approximately $7.5 million). The facility, as amended, expires in December 2020 Deferred Financing Costs We had deferred financing costs of $0.7 million and $0.9 million as of June 30, 2020 and December 31, 2019, respectively. Deferred financing costs are related to our revolving credit facility. Deferred financing costs as of June 30, 2020 are being amortized in the amounts of $0.1 million for the remainder of 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 | 6 Months Ended |
Jun. 30, 2020 | |
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 six months ended June 30, 2020: Shares Weighted Average Grant Date Fair Value Per Share Balance at 852,540 $ 35.26 Granted 8,000 33.09 Vested (59,086 ) 32.56 Forfeited (6,150 ) 43.74 Balance at 795,304 $ 35.41 We recorded compensation expense related to restricted shares and performance-based shares of $3 million ($2.2 million, net of tax) and $3.4 million ($2.5 million, net of tax) for the six months ended June 30, 2020 and 2019, respectively. The unamortized compensation expense related to our restricted and performance-based shares was $11.9 million at June 30, 2020, and is expected to be recognized as they vest over a weighted average period of 4.4 years and 0.8 years for employees and directors, respectively. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2020 | |
Employee Benefits [Abstract] | |
Employee Benefits | Note 11. Employee Benefits We provide certain medical and dental care benefits to 16 former U.S. union employees. The postretirement medical and dental benefit obligation to the former union employees as of June 30, 2020, and the related net periodic benefit cost for the plan for the three and six months ended June 30, 2020 and 2019 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 2020, we made company contributions to the plan of $0.3 million related to calendar year 2019. We also have an Employee Stock Ownership Plan and Trust for employees who are not covered by a collective bargaining agreement. In connection therewith, we maintain an employee benefits trust to which we contribute shares of treasury stock. We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under the plan. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released. The trustees will vote the shares in accordance with their fiduciary duties. During the six months ended June 30, 2020, we contributed to the trust an additional 44,700 shares from our treasury and released 44,700 shares from the trust leaving 200 shares remaining in the trust as of June 30, 2020. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
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 | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic Net Earnings Per Common Share: Earnings from continuing operations $ 11,842 $ 20,555 $ 21,463 $ 33,659 Loss from discontinued operations (875 ) (1,123 ) (1,869 ) (2,011 ) Net earnings available to common stockholders $ 10,967 $ 19,432 $ 19,594 $ 31,648 Weighted average common shares outstanding 22,330 22,328 22,384 22,375 Earnings from continuing operations per common share $ 0.53 $ 0.92 $ 0.96 $ 1.50 Loss from discontinued operations per common share (0.04 ) (0.05 ) (0.08 ) (0.09 ) Basic net earnings per common share $ 0.49 $ 0.87 $ 0.88 $ 1.41 Diluted Net Earnings Per Common Share: Earnings from continuing operations $ 11,842 $ 20,555 $ 21,463 $ 33,659 Loss from discontinued operations (875 ) (1,123 ) (1,869 ) (2,011 ) Net earnings available to common stockholders $ 10,967 $ 19,432 $ 19,594 $ 31,648 Weighted average common shares outstanding 22,330 22,328 22,384 22,375 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock and performance-based stock 389 468 410 482 Weighted average common shares outstanding – Diluted 22,719 22,796 22,794 22,857 Earnings from continuing operations per common share $ 0.52 $ 0.90 $ 0.94 $ 1.47 Loss from discontinued operations per common share (0.04 ) (0.05 ) (0.08 ) (0.09 ) Diluted net earnings per common share $ 0.48 $ 0.85 $ 0.86 $ 1.38 The shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Restricted and performance-based shares 261 248 257 242 |
Industry Segments
Industry Segments | 6 Months Ended |
Jun. 30, 2020 | |
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 for each reportable segment (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net Sales (a) Engine Management $ 173,153 $ 218,042 $ 374,271 $ 431,231 Temperature Control 72,392 84,406 123,834 153,330 All Other 2,394 2,724 4,136 4,377 Consolidated $ 247,939 $ 305,172 $ 502,241 $ 588,938 Intersegment Revenue (a) Engine Management $ 2,666 $ 4,921 $ 6,680 $ 10,270 Temperature Control 1,387 1,786 2,778 3,719 All Other (4,053 ) (6,707 ) (9,458 ) (13,989 ) Consolidated $ — $ — $ — $ — Operating Income Engine Management $ 16,722 $ 25,709 $ 38,155 $ 48,053 Temperature Control 3,967 7,154 3,619 9,204 All Other (4,668 ) (5,135 ) (11,430 ) (11,572 ) Consolidated $ 16,021 $ 27,728 $ 30,344 $ 45,685 (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 | 6 Months Ended |
Jun. 30, 2020 | |
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 six months ended June 30, 2020 and 2019 (in thousands): Three months ended June Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 153,891 $ 69,770 $ — $ 223,661 Canada 4,525 2,257 2,394 9,176 Mexico 3,409 41 — 3,450 Europe 2,526 75 — 2,601 Other foreign 8,802 249 — 9,051 Total $ 173,153 $ 72,392 $ 2,394 $ 247,939 Three months ended June Engine Management Temperature Control Other (b) Total Major Product Group: Ignition, emission control, fuel and safety related system products $ 142,787 $ — $ 1,841 $ 144,628 Wire and cable 30,366 — 14 30,380 Compressors — 44,878 493 45,371 Other climate control parts — 27,514 46 27,560 Total $ 173,153 $ 72,392 $ 2,394 $ 247,939 Major Sales Channel: Aftermarket $ 141,476 $ 66,437 $ 2,394 $ 210,307 OE/OES 28,351 5,696 — 34,047 Export 3,326 259 — 3,585 Total $ 173,153 $ 72,392 $ 2,394 $ 247,939 Three months ended June 30, 2019 (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 194,127 $ 80,655 $ — $ 274,782 Canada 6,736 3,311 2,724 12,771 Mexico 4,879 208 — 5,087 Europe 3,577 117 — 3,694 Other foreign 8,723 115 — 8,838 Total $ 218,042 $ 84,406 $ 2,724 $ 305,172 Major Product Group: Ignition, emission control, fuel and safety related system products $ 181,831 $ — $ 1,492 $ 183,323 Wire and cable 36,211 — (68 ) 36,143 Compressors — 52,493 792 53,285 Other climate control parts — 31,913 508 32,421 Total $ 218,042 $ 84,406 $ 2,724 $ 305,172 Major Sales Channel: Aftermarket $ 177,154 $ 75,331 $ 2,724 $ 255,209 OE/OES 35,966 8,641 — 44,607 Export 4,922 434 — 5,356 Total $ 218,042 $ 84,406 $ 2,724 $ 305,172 Six (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 328,270 $ 117,646 $ — $ 445,916 Canada 11,114 5,398 4,136 20,648 Mexico 9,523 100 — 9,623 Europe 5,874 198 — 6,072 Other foreign 19,490 492 — 19,982 Total $ 374,271 $ 123,834 $ 4,136 $ 502,241 Major Product Group: Ignition, emission control, fuel and safety related system products $ 307,313 $ — $ 3,325 $ 310,638 Wire and cable 66,958 — (8 ) 66,950 Compressors — 70,226 351 70,577 Other climate control parts — 53,608 468 54,076 Total $ 374,271 $ 123,834 $ 4,136 $ 502,241 Major Sales Channel: Aftermarket $ 302,059 $ 110,831 $ 4,136 $ 417,026 OE/OES 63,471 12,475 — 75,946 Export 8,741 528 — 9,269 Total $ 374,271 $ 123,834 $ 4,136 $ 502,241 Six (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 382,021 $ 145,506 $ — $ 527,527 Canada 13,802 6,773 4,377 24,952 Mexico 9,367 363 — 9,730 Europe 6,674 274 — 6,948 Other foreign 19,367 414 — 19,781 Total $ 431,231 $ 153,330 $ 4,377 $ 588,938 Major Product Group: Ignition, emission control, fuel and safety related system products $ 357,892 $ — $ 2,883 $ 360,775 Wire and cable 73,339 — 12 73,351 Compressors — 92,304 532 92,836 Other climate control parts — 61,026 950 61,976 Total $ 431,231 $ 153,330 $ 4,377 $ 588,938 Major Sales Channel: Aftermarket $ 355,693 $ 135,872 $ 4,377 $ 495,942 OE/OES 65,106 16,516 — 81,622 Export 10,432 942 — 11,374 Total $ 431,231 $ 153,330 $ 4,377 $ 588,938 (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. Intersegment wire and cable sales for the six months ended June 30, 2020 and for the three months ended June 30, 2019 exceeded third party sales from our Canadian business unit. 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 | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020, approximately 1,600 cases were outstanding for which we may be responsible for any related liabilities. Since inception in September 2001 through June 30, 2020, the amounts paid for settled claims are approximately $33.4 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 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. 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. As related to our potential asbestos-related liability, we were found liable for $ million in compensatory damages as a defendant in a 2018 asbestos liability case in California. We are pursuing all rights of appeal of this case. Total operating cash outflows related to discontinued operations, which include settlements and legal costs, were $ million and $ million for the six months ended June 30, 2020 and 2019, respectively. 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 June 30, 2020 and 2019, we have accrued $26.5 million and $22.1 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Balance, beginning of period $ 23,224 $ 22,694 $ 22,445 $ 19,636 Liabilities accrued for current year sales 22,795 24,283 44,862 50,679 Settlements of warranty claims (19,522 ) (24,891 ) (40,810 ) (48,229 ) Balance, end of period $ 26,497 $ 22,086 $ 26,497 $ 22,086 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Standards that were adopted Standard Description Date of adoption Effects on the financial statements or other significant matters ASU - Simplifying the Test for Goodwill Impairment This standard simplifies the accounting for goodwill impairment. ASU - removes Step 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 The new standard will be applied prospectively when performing our annual impairment test of goodwill, or in an interim period if an event occurs, or circumstances change, that may indicate that the fair value of a reporting unit is below its carrying amount. We anticipate that the prospective adoption of the standard will not materially impact the amount of goodwill impairment, if any. ASU - 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 The adoption of the standard did not 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. Standards that are not yet adopted as of June The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted as of June and that could have an impact on our financial statements: Standard Description Date of adoption / Effective date Effects on the financial statements or other significant matters ASU - Income Taxes (Topic 740) : Simplifying the Accounting for Income Taxes This standard is intended to simplify the accounting for income taxes by removing certain ASC Topic exceptions in performing intra-period tax allocations among income statement components, in calculating certain deferred tax liabilities related to outside basis differences, and in calculating income taxes in interim periods with year-to-date losses. In addition, this standard is also intended to improve consistency and add simplification by clarifying and amending the reporting of franchise taxes and other taxes partially based on income, the recognition of deferred income taxes related to the step-up in tax basis goodwill, and the reporting in interim periods of the recognition of the enactment of tax laws or rate changes. January with early adoption permitted The new standard clarifies the accounting for income taxes in certain technical areas that will not impact all companies. Although we currently believe that the technical clarifications in the new standard will not materially impact our accounting for income taxes, our consolidated financial statements and related disclosures upon adoption, we are currently evaluating its potential impact. The new standard can be applied on a prospective basis in certain instances and in other instances on a retrospective or modified retrospective basis. ASU - Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting This standard is intended to provide optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The new standard is applicable to contracts that reference LIBOR, or another reference rate, expected to be discontinued due to reference rate reform. Effective March through December The new standard may be applied as of the beginning of an interim period that includes March through December As certain of our contracts reference LIBOR, including our revolving credit facility and supply chain financing arrangements, we are currently reviewing the optional guidance in the standard to determine its impact upon the discontinuance of LIBOR. At this time, we do not believe that the new guidance, nor the discontinuance of LIBOR, will have a material impact on our consolidated financial statements and related disclosures. |
Business Acquisitions and Inv_2
Business Acquisitions and Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Integration Expenses [Abstract] | |
Restructuring and Integration Expense | 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, 2019 and June 30, 2020 and activity for the six months ended June 30, 2020 consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2019 $ 336 $ — $ 336 Restructuring and integration costs: Amounts provided for during 2020 — 214 214 Cash payments (60 ) (214 ) (274 ) Exit activity liability at June 30, 2020 $ 276 $ — $ 276 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: June 30, 2020 December 31, 2019 (In thousands) Finished goods $ 216,541 $ 241,472 Work in process 12,659 11,138 Raw materials 124,115 115,611 Subtotal 353,315 368,221 Unreturned customer inventories 18,868 19,722 Total inventories $ 372,183 $ 387,943 |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Acquired Intangible Assets [Abstract] | |
Acquired Identifiable Intangible Assets | Acquired identifiable intangible assets consist of the following: June 30, 2020 December 31, 2019 (In thousands) Customer relationships $ 111,409 $ 111,692 Trademarks and trade names 6,980 6,980 Non-compete agreements 3,264 3,276 Patents 723 723 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 123,336 123,631 Less accumulated amortization (1) (63,435 ) (59,431 ) Net acquired intangible assets $ 59,901 $ 64,200 (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. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Quantitative Disclosures Related to Operating Leases | The following tables provide quantitative disclosures related to our operating leases : Balance Sheet Information June 30, 2020 December 31, 2019 Assets Operating lease right-of-use assets $ 32,536 $ 36,020 Liabilities Sundry payables and accrued expenses $ 8,555 $ 8,739 Noncurrent operating lease liabilities 25,148 28,376 Total operating lease liabilities $ 33,703 $ 37,115 Weighted Average Remaining Lease Term Operating leases 5.3 Years 5.6 Years Weighted Average Discount Rate Operating leases 3.7 % 3.7 % Three Months Ended June 30, Expense and Cash Flow Information 2020 2019 Lease Expense Operating lease expense (a) $ 2,303 $ 2,210 Six Months Ended June 30, 2020 2019 Lease Expense Operating lease expense (a) $ 4,616 $ 4,434 Supplemental Cash Flow Information Cash paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,544 $ 4,239 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 380 $ 744 (a) Excludes expenses of approximately $ million and $ million for the three and six months ended June 30, 2020, respectively, and approximately $ million and $ million for the comparable periods in 2019, respectively, |
Minimum Lease Payments | At June 30, 2020, we are obligated to make minimum lease payments through 2028, under operating leases, which are as follows (in thousands): 2020 $ 4,461 2021 8,421 2022 7,020 2023 5,685 2024 3,881 Thereafter 7,844 Total lease payments $ 37,312 Less: Interest (3,609 ) Present value of lease liabilities $ 33,703 |
Credit Facilities and Long-Te_2
Credit Facilities and Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Summary of Total Debt Outstanding | Total debt outstanding is summarized as follows: June 30, 2020 December 31, 2019 (In thousands) Revolving credit facilities $ 85,000 $ 52,460 Other (1) 6,192 4,585 Total debt $ 91,192 $ 57,045 Current maturities of debt $ 91,084 $ 56,916 Long-term debt 108 129 Total debt $ 91,192 $ 57,045 (1) Other includes borrowings under our Polish overdraft facility of Zloty 24.1 million (approximately $6 million) and Zloty 16.7 million (approximately $4.4 million) as of June 30, 2020 and December 31, 2019, respectively. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stock-Based Compensation Plans [Abstract] | |
Restricted and Performance-based Share Activity | Our restricted and performance-based share activity was as follows for the six months ended June 30, 2020: Shares Weighted Average Grant Date Fair Value Per Share Balance at 852,540 $ 35.26 Granted 8,000 33.09 Vested (59,086 ) 32.56 Forfeited (6,150 ) 43.74 Balance at 795,304 $ 35.41 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic Net Earnings Per Common Share: Earnings from continuing operations $ 11,842 $ 20,555 $ 21,463 $ 33,659 Loss from discontinued operations (875 ) (1,123 ) (1,869 ) (2,011 ) Net earnings available to common stockholders $ 10,967 $ 19,432 $ 19,594 $ 31,648 Weighted average common shares outstanding 22,330 22,328 22,384 22,375 Earnings from continuing operations per common share $ 0.53 $ 0.92 $ 0.96 $ 1.50 Loss from discontinued operations per common share (0.04 ) (0.05 ) (0.08 ) (0.09 ) Basic net earnings per common share $ 0.49 $ 0.87 $ 0.88 $ 1.41 Diluted Net Earnings Per Common Share: Earnings from continuing operations $ 11,842 $ 20,555 $ 21,463 $ 33,659 Loss from discontinued operations (875 ) (1,123 ) (1,869 ) (2,011 ) Net earnings available to common stockholders $ 10,967 $ 19,432 $ 19,594 $ 31,648 Weighted average common shares outstanding 22,330 22,328 22,384 22,375 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock and performance-based stock 389 468 410 482 Weighted average common shares outstanding – Diluted 22,719 22,796 22,794 22,857 Earnings from continuing operations per common share $ 0.52 $ 0.90 $ 0.94 $ 1.47 Loss from discontinued operations per common share (0.04 ) (0.05 ) (0.08 ) (0.09 ) Diluted net earnings per common share $ 0.48 $ 0.85 $ 0.86 $ 1.38 |
Anti-dilutive Securities Excluded from Computation of Earnings per Share | The shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Restricted and performance-based shares 261 248 257 242 |
Industry Segments (Tables)
Industry Segments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Industry Segments [Abstract] | |
Sales and Operating Income by Operating Segments | The following tables show our net sales, intersegment revenue and operating income for each reportable segment (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net Sales (a) Engine Management $ 173,153 $ 218,042 $ 374,271 $ 431,231 Temperature Control 72,392 84,406 123,834 153,330 All Other 2,394 2,724 4,136 4,377 Consolidated $ 247,939 $ 305,172 $ 502,241 $ 588,938 Intersegment Revenue (a) Engine Management $ 2,666 $ 4,921 $ 6,680 $ 10,270 Temperature Control 1,387 1,786 2,778 3,719 All Other (4,053 ) (6,707 ) (9,458 ) (13,989 ) Consolidated $ — $ — $ — $ — Operating Income Engine Management $ 16,722 $ 25,709 $ 38,155 $ 48,053 Temperature Control 3,967 7,154 3,619 9,204 All Other (4,668 ) (5,135 ) (11,430 ) (11,572 ) Consolidated $ 16,021 $ 27,728 $ 30,344 $ 45,685 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Net Sales [Abstract] | |
Disaggregation of Net Sales | The following tables provide disaggregation of net sales information for the three months and six months ended June 30, 2020 and 2019 (in thousands): Three months ended June Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 153,891 $ 69,770 $ — $ 223,661 Canada 4,525 2,257 2,394 9,176 Mexico 3,409 41 — 3,450 Europe 2,526 75 — 2,601 Other foreign 8,802 249 — 9,051 Total $ 173,153 $ 72,392 $ 2,394 $ 247,939 Three months ended June Engine Management Temperature Control Other (b) Total Major Product Group: Ignition, emission control, fuel and safety related system products $ 142,787 $ — $ 1,841 $ 144,628 Wire and cable 30,366 — 14 30,380 Compressors — 44,878 493 45,371 Other climate control parts — 27,514 46 27,560 Total $ 173,153 $ 72,392 $ 2,394 $ 247,939 Major Sales Channel: Aftermarket $ 141,476 $ 66,437 $ 2,394 $ 210,307 OE/OES 28,351 5,696 — 34,047 Export 3,326 259 — 3,585 Total $ 173,153 $ 72,392 $ 2,394 $ 247,939 Three months ended June 30, 2019 (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 194,127 $ 80,655 $ — $ 274,782 Canada 6,736 3,311 2,724 12,771 Mexico 4,879 208 — 5,087 Europe 3,577 117 — 3,694 Other foreign 8,723 115 — 8,838 Total $ 218,042 $ 84,406 $ 2,724 $ 305,172 Major Product Group: Ignition, emission control, fuel and safety related system products $ 181,831 $ — $ 1,492 $ 183,323 Wire and cable 36,211 — (68 ) 36,143 Compressors — 52,493 792 53,285 Other climate control parts — 31,913 508 32,421 Total $ 218,042 $ 84,406 $ 2,724 $ 305,172 Major Sales Channel: Aftermarket $ 177,154 $ 75,331 $ 2,724 $ 255,209 OE/OES 35,966 8,641 — 44,607 Export 4,922 434 — 5,356 Total $ 218,042 $ 84,406 $ 2,724 $ 305,172 Six (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 328,270 $ 117,646 $ — $ 445,916 Canada 11,114 5,398 4,136 20,648 Mexico 9,523 100 — 9,623 Europe 5,874 198 — 6,072 Other foreign 19,490 492 — 19,982 Total $ 374,271 $ 123,834 $ 4,136 $ 502,241 Major Product Group: Ignition, emission control, fuel and safety related system products $ 307,313 $ — $ 3,325 $ 310,638 Wire and cable 66,958 — (8 ) 66,950 Compressors — 70,226 351 70,577 Other climate control parts — 53,608 468 54,076 Total $ 374,271 $ 123,834 $ 4,136 $ 502,241 Major Sales Channel: Aftermarket $ 302,059 $ 110,831 $ 4,136 $ 417,026 OE/OES 63,471 12,475 — 75,946 Export 8,741 528 — 9,269 Total $ 374,271 $ 123,834 $ 4,136 $ 502,241 Six (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 382,021 $ 145,506 $ — $ 527,527 Canada 13,802 6,773 4,377 24,952 Mexico 9,367 363 — 9,730 Europe 6,674 274 — 6,948 Other foreign 19,367 414 — 19,781 Total $ 431,231 $ 153,330 $ 4,377 $ 588,938 Major Product Group: Ignition, emission control, fuel and safety related system products $ 357,892 $ — $ 2,883 $ 360,775 Wire and cable 73,339 — 12 73,351 Compressors — 92,304 532 92,836 Other climate control parts — 61,026 950 61,976 Total $ 431,231 $ 153,330 $ 4,377 $ 588,938 Major Sales Channel: Aftermarket $ 355,693 $ 135,872 $ 4,377 $ 495,942 OE/OES 65,106 16,516 — 81,622 Export 10,432 942 — 11,374 Total $ 431,231 $ 153,330 $ 4,377 $ 588,938 (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. Intersegment wire and cable sales for the six months ended June 30, 2020 and for the three months ended June 30, 2019 exceeded third party sales from our Canadian business unit. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies [Abstract] | |
Changes in Product Warranties | The following table provides the changes in our product warranties (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Balance, beginning of period $ 23,224 $ 22,694 $ 22,445 $ 19,636 Liabilities accrued for current year sales 22,795 24,283 44,862 50,679 Settlements of warranty claims (19,522 ) (24,891 ) (40,810 ) (48,229 ) Balance, end of period $ 26,497 $ 22,086 $ 26,497 $ 22,086 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 30, 2020 |
Basis of Presentation [Abstract] | |
Equity ownership in entities included in consolidated financial statements, minimum | 50.00% |
Business Acquisitions and Inv_3
Business Acquisitions and Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2019 | Apr. 30, 2019 | Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | |
Assets acquired and liabilities assumed [Abstract] | ||||||
Goodwill | $ 77,593 | $ 77,802 | ||||
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 | |||||
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 | |||||
Incremental net sales | $ 9,500 | |||||
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] | 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 |
Restructuring and Integration_3
Restructuring and Integration Expenses (Details) | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | $ 336,000 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2020 | 214,000 |
Cash payments | (274,000) |
Exit activity liability, end of period | 276,000 |
Plant Rationalization Program [Member] | |
Restructuring and integration costs [Abstract] | |
Cash payments | (34,000) |
Remaining aggregate liability | 142,000 |
Orlando Plant Rationalization Program [Member] | |
Restructuring and integration costs [Abstract] | |
Cash payments | (26,000) |
Remaining aggregate liability | 134,000 |
Pollak Relocation [Member] | |
Restructuring and integration costs [Abstract] | |
Remaining aggregate liability | 0 |
Integration expenses | 214,000 |
Workforce Reduction [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 336,000 |
Restructuring and integration costs [Abstract] | |
Amounts provided for during 2020 | 0 |
Cash payments | (60,000) |
Exit activity liability, end of period | 276,000 |
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 2020 | 214,000 |
Cash payments | (214,000) |
Exit activity liability, end of period | $ 0 |
Sale of Receivables (Details)
Sale of Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Sale of Receivables [Abstract] | ||||
Sale of receivables to financial institutions | $ 147.7 | $ 190 | $ 297.9 | $ 361 |
Charge related to sale of receivables | $ 3.1 | $ 6.4 | $ 5.9 | $ 12.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventories [Abstract] | ||
Finished goods | $ 216,541 | $ 241,472 |
Work in process | 12,659 | 11,138 |
Raw materials | 124,115 | 115,611 |
Subtotal | 353,315 | 368,221 |
Unreturned customer inventories | 18,868 | 19,722 |
Total inventories | $ 372,183 | $ 387,943 |
Acquired Intangible Assets, Ide
Acquired Intangible Assets, Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | $ 123,336 | $ 123,631 | |
Less accumulated amortization | [1] | (63,435) | (59,431) |
Net acquired intangible assets | 59,901 | 64,200 | |
Customer Relationships [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 111,409 | 111,692 | |
Trademarks and Trade Names [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 6,980 | 6,980 | |
Non-compete Agreements [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 3,264 | 3,276 | |
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 Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Amortization of acquired intangible assets [Abstract] | ||||
Amortization expense | $ 2 | $ 2.1 | $ 4.1 | $ 3.9 |
Estimated amortization expense, remainder of 2020 | 4.1 | 4.1 | ||
Estimated amortization expense in year 2021 | 6.8 | 6.8 | ||
Estimated amortization expense in year 2022 | 5.2 | 5.2 | ||
Estimated amortization expense in year 2023 | 4.9 | 4.9 | ||
Estimated amortization expense in years 2024 through 2034 | 33.7 | 33.7 | ||
Trademarks and Trade Names [Member] | ||||
Intangible assets acquired [Abstract] | ||||
Amount of acquired indefinite-lived intangible assets | $ 5.2 | $ 5.2 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | ||||
Quantitative Lease Disclosures [Abstract] | ||||||||
Renewal option period | 5 years | 5 years | ||||||
Assets [Abstract] | ||||||||
Operating lease right-of-use assets | $ 32,536 | $ 32,536 | $ 36,020 | |||||
Liabilities [Abstract] | ||||||||
Sundry payables and accrued expenses | 8,555 | 8,555 | 8,739 | |||||
Noncurrent operating lease liabilities | 25,148 | 25,148 | 28,376 | |||||
Total operating lease liabilities | $ 33,703 | $ 33,703 | $ 37,115 | |||||
Operating Leases [Abstract] | ||||||||
Weighted average remaining lease term | 5 years 3 months 18 days | 5 years 3 months 18 days | 5 years 7 months 6 days | |||||
Weighted average discount rate | 3.70% | 3.70% | 3.70% | |||||
Lease Expense [Abstract] | ||||||||
Operating lease expense | $ 2,303 | [1] | $ 2,210 | $ 4,616 | [1] | $ 4,434 | [1] | |
Excluded expenses of non lease | 500 | $ 600 | 900 | 1,100 | ||||
Cash Paid for the amounts included in the measurement of lease liabilities [Abstract] | ||||||||
Operating cash flows from operating leases | 4,544 | 4,239 | ||||||
Right-of-use assets obtained in exchange for new lease obligations [Abstract] | ||||||||
Operating leases | 380 | $ 744 | ||||||
Minimum Lease Payments [Abstract] | ||||||||
2020 | 4,461 | 4,461 | ||||||
2021 | 8,421 | 8,421 | ||||||
2022 | 7,020 | 7,020 | ||||||
2023 | 5,685 | 5,685 | ||||||
2024 | 3,881 | 3,881 | ||||||
Thereafter | 7,844 | 7,844 | ||||||
Total lease payments | 37,312 | 37,312 | ||||||
Less: Interest | (3,609) | (3,609) | ||||||
Present value of lease liabilities | $ 33,703 | $ 33,703 | $ 37,115 | |||||
Maximum [Member] | ||||||||
Quantitative Lease Disclosures [Abstract] | ||||||||
Remaining operating lease terms | 10 years | 10 years | ||||||
[1] | Excludes expenses of approximately $0.5 million and $0.9 million for the three and six months ended June 30, 2020, respectively, and approximately $0.6 million and $1.1 million for the comparable periods in 2019, respectively, 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. |
Credit Facilities and Long-Te_3
Credit Facilities and Long-Term Debt, Total Debt Outstanding (Details) $ in Thousands, zł in Millions | Jun. 30, 2020USD ($) | Jun. 30, 2020PLN (zł) | Dec. 31, 2019USD ($) | Dec. 31, 2019PLN (zł) | |
Credit Facilities and Long-Term Debt [Abstract] | |||||
Revolving credit facilities | $ 85,000 | $ 52,460 | |||
Other | [1] | 6,192 | 4,585 | ||
Total debt | 91,192 | 57,045 | |||
Current maturities of debt | 91,084 | 56,916 | |||
Long-term debt | 108 | 129 | |||
HSBC Bank Polska S.A. [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Overdraft facility | $ 6,000 | zł 24.1 | $ 4,400 | zł 16.7 | |
[1] | Other includes borrowings under our Polish overdraft facility of Zloty 24.1 million (approximately $6 million) and Zloty 16.7 million (approximately $4.4 million) as of June 30, 2020 and December 31, 2019, respectively. |
Credit Facilities and Long-Te_4
Credit Facilities and Long-Term Debt, Revolving Credit Facility (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Apr. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Line of Credit Facility [Abstract] | |||||
Outstanding borrowings under credit facility | $ 85,000 | $ 85,000 | $ 52,460 | ||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | 250,000 | 250,000 | |||
Line of credit facility, accordian feature | 50,000 | $ 50,000 | |||
Maturity date | Dec. 31, 2023 | ||||
Proceeds from line of credit | $ 75,000 | ||||
Repayments of line of credit | 75,000 | ||||
Additional available borrowing capacity | 146,400 | $ 146,400 | |||
Outstanding borrowings under credit facility | 85,000 | 85,000 | 52,500 | ||
Outstanding letters of credit | $ 3,100 | $ 3,100 | $ 3,100 | ||
Weighted average interest rate | 1.40% | 1.40% | 3.50% | ||
Coverage ratio | 1 | ||||
Revolving Credit Facility [Member] | Pay Cash Dividend [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Agreement permissions | $ 20,000 | $ 20,000 | |||
Revolving Credit Facility [Member] | Stock Repurchase [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Agreement permissions | 20,000 | 20,000 | |||
Revolving Credit Facility [Member] | Stock Repurchase [Member] | Minimum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Borrowing base | 25,000 | 25,000 | |||
Revolving Credit Facility [Member] | Cash Dividend And Stock Repurchases [Member] | Minimum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Agreement permissions | 20,000 | $ 20,000 | |||
Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 1.25% | ||||
Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 1.75% | ||||
Revolving Credit Facility [Member] | Alternate Base Rate [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Outstanding borrowings under credit facility | $ 12,500 | ||||
Weighted average interest rate | 5.00% | ||||
Average daily loan balance outstanding | $ 1,700 | $ 1,600 | $ 1,700 | ||
Revolving Credit Facility [Member] | Alternate Base Rate [Member] | Minimum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 0.25% | ||||
Revolving Credit Facility [Member] | Alternate Base Rate [Member] | Maximum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 0.75% | ||||
Revolving Credit Facility [Member] | Fixed Assets Not Included in Borrowing Base [Member] | Maximum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Borrowing base | $ 25,000 | $ 25,000 | |||
Borrowing base percentage | 10.00% | 10.00% | |||
Revolving Credit Facility [Member] | Fixed Assets Included in Borrowing Base [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Borrowing base | $ 31,250 | $ 31,250 | |||
Borrowing base percentage | 12.50% | 12.50% | |||
Revolving Credit Facility [Member] | Direct Borrowings [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Outstanding borrowings under credit facility | $ 40,000 | ||||
Weighted average interest rate | 2.30% | ||||
Revolving Credit Facility [Member] | Canada [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | $ 10,000 | $ 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 | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020PLN (zł) | Jun. 30, 2020PLN (zł) | Jun. 30, 2020USD ($) | Dec. 31, 2019PLN (zł) | Dec. 31, 2019USD ($) | |
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | zł 30 | zł 30 | $ 7.5 | ||
Overdraft facility expiration date | Dec. 31, 2020 | ||||
Overdraft facility | zł 24.1 | zł 24.1 | $ 6 | zł 16.7 | $ 4.4 |
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 | Jun. 30, 2020 | Dec. 31, 2019 |
Deferred Financing Costs [Abstract] | ||
Deferred financing costs | $ 0.7 | $ 0.9 |
Amortization of financing costs reminder of 2020 | 0.1 | |
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 | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Additional Disclosures [Abstract] | ||
Compensation expense, gross | $ 3,306 | $ 3,848 |
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) | 852,540 | |
Granted (in shares) | 8,000 | |
Vested (in shares) | (59,086) | |
Forfeited (in shares) | (6,150) | |
End of period (in shares) | 795,304 | |
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward] | ||
Beginning of period (in dollars per share) | $ 35.26 | |
Granted (in dollars per share) | 33.09 | |
Vested (in dollars per share) | 32.56 | |
Forfeited (in dollars per share) | 43.74 | |
End of period (in dollars per share) | $ 35.41 | |
Additional Disclosures [Abstract] | ||
Compensation expense, gross | $ 3,000 | 3,400 |
Compensation expense, net of tax | 2,200 | $ 2,500 |
Unamortized compensation expense | $ 11,900 | |
Restricted and Performance-Based Shares [Member] | Employees [Member] | ||
Additional Disclosures [Abstract] | ||
Weighted average period of recognition for unrecognized compensation expense | 4 years 4 months 24 days | |
Restricted and Performance-Based Shares [Member] | Directors [Member] | ||
Additional Disclosures [Abstract] | ||
Weighted average period of recognition for unrecognized compensation expense | 9 months 18 days | |
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Expiration of vesting period | 3 years | |
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Minimum [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Post vesting holding period for restricted and performance shares issued | 1 year | |
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Maximum [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Post vesting holding period for restricted and performance shares issued | 2 years |
Employee Benefits (Details)
Employee Benefits (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020USD ($) | Jun. 30, 2020Employeeshares | |
Benefit Plan [Abstract] | ||
Number of former union employees covered by the plan | Employee | 16 | |
Supplemental Executive Retirement Plan [Member] | ||
Defined Contribution Pension and Other Postretirement Plans [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) | 44,700 | |
Shares released from trust (in shares) | 44,700 | |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic Net Earnings Per Common Share [Abstract] | ||||
Earnings from continuing operations | $ 11,842 | $ 20,555 | $ 21,463 | $ 33,659 |
Loss from discontinued operations | (875) | (1,123) | (1,869) | (2,011) |
Net earnings available to common stockholders | $ 10,967 | $ 19,432 | $ 19,594 | $ 31,648 |
Weighted average common shares outstanding (in shares) | 22,330,476 | 22,328,292 | 22,384,281 | 22,374,785 |
Earnings from continuing operations per common share (in dollars per share) | $ 0.53 | $ 0.92 | $ 0.96 | $ 1.50 |
Loss from discontinued operations per common share (in dollars per share) | (0.04) | (0.05) | (0.08) | (0.09) |
Net earnings per common share - Basic (in dollars per share) | $ 0.49 | $ 0.87 | $ 0.88 | $ 1.41 |
Diluted Net Earnings Per Common Share [Abstract] | ||||
Earnings from continuing operations | $ 11,842 | $ 20,555 | $ 21,463 | $ 33,659 |
Loss from discontinued operations | (875) | (1,123) | (1,869) | (2,011) |
Net earnings available to common stockholders | $ 10,967 | $ 19,432 | $ 19,594 | $ 31,648 |
Weighted average common shares outstanding (in shares) | 22,330,476 | 22,328,292 | 22,384,281 | 22,374,785 |
Plus incremental shares from assumed conversions [Abstract] | ||||
Dilutive effect of restricted stock and performance stock (in shares) | 389,000 | 468,000 | 410,000 | 482,000 |
Weighted average common shares outstanding - Diluted (in shares) | 22,718,680 | 22,795,677 | 22,793,606 | 22,857,435 |
Earnings from continuing operations per common share (in dollars per share) | $ 0.52 | $ 0.90 | $ 0.94 | $ 1.47 |
Loss from discontinued operations per common share (in dollars per share) | (0.04) | (0.05) | (0.08) | (0.09) |
Net earnings per common share - Diluted (in dollars per share) | $ 0.48 | $ 0.85 | $ 0.86 | $ 1.38 |
Restricted and Performance Shares [Member] | ||||
Earnings Per Share[Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 261,000 | 248,000 | 257,000 | 242,000 |
Industry Segments (Details)
Industry Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)Segment | Jun. 30, 2019USD ($) | ||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Number of reportable operating segments | Segment | 2 | ||||
Net sales | [1] | $ 247,939 | $ 305,172 | $ 502,241 | $ 588,938 |
Operating Income (Loss) | 16,021 | 27,728 | 30,344 | 45,685 | |
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] | 173,153 | 218,042 | 374,271 | 431,231 |
Operating Income (Loss) | 16,722 | 25,709 | 38,155 | 48,053 | |
Engine Management [Member] | Intersegment Revenues [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 2,666 | 4,921 | 6,680 | 10,270 |
Temperature Control [Member] | Reportable Segments [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 72,392 | 84,406 | 123,834 | 153,330 |
Operating Income (Loss) | 3,967 | 7,154 | 3,619 | 9,204 | |
Temperature Control [Member] | Intersegment Revenues [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 1,387 | 1,786 | 2,778 | 3,719 |
All Other [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 2,394 | 2,724 | 4,136 | 4,377 |
Operating Income (Loss) | (4,668) | (5,135) | (11,430) | (11,572) | |
All Other [Member] | Intersegment Revenues [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | $ (4,053) | $ (6,707) | $ (9,458) | $ (13,989) |
[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 | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | $ 247,939 | $ 305,172 | $ 502,241 | $ 588,938 |
Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 210,307 | 255,209 | 417,026 | 495,942 |
OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 34,047 | 44,607 | 75,946 | 81,622 |
Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 3,585 | 5,356 | 9,269 | 11,374 |
Ignition, Emission Control, Fuel and Safety Related System Products [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 144,628 | 183,323 | 310,638 | 360,775 |
Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 30,380 | 36,143 | 66,950 | 73,351 |
Compressors [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 45,371 | 53,285 | 70,577 | 92,836 |
Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 27,560 | 32,421 | 54,076 | 61,976 |
United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 223,661 | 274,782 | 445,916 | 527,527 |
Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 9,176 | 12,771 | 20,648 | 24,952 |
Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 3,450 | 5,087 | 9,623 | 9,730 |
Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 2,601 | 3,694 | 6,072 | 6,948 |
Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 9,051 | 8,838 | 19,982 | 19,781 |
Engine Management [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 173,153 | 218,042 | 374,271 | 431,231 |
Engine Management [Member] | Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 141,476 | 177,154 | 302,059 | 355,693 |
Engine Management [Member] | OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 28,351 | 35,966 | 63,471 | 65,106 |
Engine Management [Member] | Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 3,326 | 4,922 | 8,741 | 10,432 |
Engine Management [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 142,787 | 181,831 | 307,313 | 357,892 |
Engine Management [Member] | Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 30,366 | 36,211 | 66,958 | 73,339 |
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] | 153,891 | 194,127 | 328,270 | 382,021 |
Engine Management [Member] | Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 4,525 | 6,736 | 11,114 | 13,802 |
Engine Management [Member] | Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 3,409 | 4,879 | 9,523 | 9,367 |
Engine Management [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 2,526 | 3,577 | 5,874 | 6,674 |
Engine Management [Member] | Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 8,802 | 8,723 | 19,490 | 19,367 |
Temperature Control [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 72,392 | 84,406 | 123,834 | 153,330 |
Temperature Control [Member] | Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 66,437 | 75,331 | 110,831 | 135,872 |
Temperature Control [Member] | OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 5,696 | 8,641 | 12,475 | 16,516 |
Temperature Control [Member] | Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 259 | 434 | 528 | 942 |
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] | 44,878 | 52,493 | 70,226 | 92,304 |
Temperature Control [Member] | Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 27,514 | 31,913 | 53,608 | 61,026 |
Temperature Control [Member] | United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 69,770 | 80,655 | 117,646 | 145,506 |
Temperature Control [Member] | Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 2,257 | 3,311 | 5,398 | 6,773 |
Temperature Control [Member] | Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 41 | 208 | 100 | 363 |
Temperature Control [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 75 | 117 | 198 | 274 |
Temperature Control [Member] | Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 249 | 115 | 492 | 414 |
Other [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 2,394 | 2,724 | 4,136 | 4,377 |
Other [Member] | Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 2,394 | 2,724 | 4,136 | 4,377 |
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] | 1,841 | 1,492 | 3,325 | 2,883 |
Other [Member] | Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 14 | (68) | (8) | 12 |
Other [Member] | Compressors [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 493 | 792 | 351 | 532 |
Other [Member] | Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 46 | 508 | 468 | 950 |
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] | 2,394 | 2,724 | 4,136 | 4,377 |
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. Intersegment wire and cable sales for the six months ended June 30, 2020 and for the three months ended June 30, 2019 exceeded third party sales from our Canadian business unit. |
Commitments and Contingencies,
Commitments and Contingencies, Asbestos (Details) - Asbestos [Member] $ in Millions | 6 Months Ended | 226 Months Ended | |||
Jun. 30, 2020USD ($)Claim | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)Claim | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Asbestos [Abstract] | |||||
Pending claims, approximate number | Claim | 1,600 | 1,600 | |||
Payments for settled claims | $ 33.4 | ||||
Minimum [Member] | |||||
Asbestos [Abstract] | |||||
Range of possible loss | $ 52 | 52 | $ 52 | ||
Increase in the range of possible loss | $ 5.3 | ||||
Incremental pre-tax provision | 9.7 | ||||
Maximum [Member] | |||||
Asbestos [Abstract] | |||||
Range of possible loss | 90.6 | 90.6 | |||
Increase in the range of possible loss | 6.7 | ||||
California Case [Member] | |||||
Asbestos [Abstract] | |||||
Range of possible loss | $ 7.6 | ||||
Discontinued Operations [Member] | |||||
Asbestos [Abstract] | |||||
Total operating cash outflows related to discontinued operations | 3.4 | $ 5.1 | |||
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Changes in product warranties [Roll forward] | ||||
Balance, beginning of period | $ 23,224 | $ 22,694 | $ 22,445 | $ 19,636 |
Liabilities accrued for current year sales | 22,795 | 24,283 | 44,862 | 50,679 |
Settlements of warranty claims | (19,522) | (24,891) | (40,810) | (48,229) |
Balance, end of period | $ 26,497 | $ 22,086 | $ 26,497 | $ 22,086 |