Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 17, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Entity File Number | 001-04743 | ||
Entity Registrant Name | Standard Motor Products, Inc. | ||
Entity Central Index Key | 0000093389 | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 11-1362020 | ||
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 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 868,423,747 | ||
Entity Common Stock, Shares Outstanding | 21,962,762 | ||
Auditor Name | KPMG LLP | ||
Auditor Location | New York, New York | ||
Auditor Firm ID | 185 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||||
Net sales | [1] | $ 1,298,816 | $ 1,128,588 | $ 1,137,913 | |
Cost of sales | 921,885 | 791,933 | 806,113 | ||
Gross profit | 376,931 | 336,655 | 331,800 | ||
Selling, general and administrative expenses | 247,547 | 224,670 | 234,715 | ||
Intangible asset impairment | 0 | 2,600 | 0 | ||
Restructuring and integration expenses | 392 | 464 | [2] | 2,585 | |
Other income (expense), net | 7 | (26) | (5) | ||
Operating income | 128,999 | 108,895 | 94,495 | ||
Other non-operating income, net | 3,494 | 812 | 2,587 | ||
Interest expense | 2,028 | 2,328 | 5,286 | ||
Earnings from continuing operations before income taxes | 130,465 | 107,379 | 91,796 | ||
Provision for income taxes | 31,044 | 26,962 | 22,745 | ||
Earnings from continuing operations | 99,421 | 80,417 | 69,051 | ||
Loss from discontinued operations, net of income tax benefit of $2,975, $8,089 and $3,912 | (8,467) | (23,024) | (11,134) | ||
Net earnings | 90,954 | 57,393 | 57,917 | ||
Net earnings attributable to noncontrolling interest | 68 | 0 | 0 | ||
Net earnings attributable to SMP | [3] | 90,886 | 57,393 | 57,917 | |
Net earnings attributable to SMP | |||||
Earnings from continuing operations | 99,353 | 80,417 | 69,051 | ||
Discontinued operations | (8,467) | (23,024) | (11,134) | ||
Net earnings attributable to SMP | [3] | $ 90,886 | $ 57,393 | $ 57,917 | |
Net earnings per common share - Basic: | |||||
Earnings from continuing operations (in dollars per share) | $ 4.49 | $ 3.59 | $ 3.09 | ||
Discontinued operations (in dollars per share) | (0.39) | (1.02) | (0.50) | ||
Net earnings per common share - Basic (in dollars per share) | 4.10 | 2.57 | 2.59 | ||
Net earnings per common share - Diluted: | |||||
Earnings from continuing operations (in dollars per share) | 4.39 | 3.52 | 3.03 | ||
Discontinued operations (in dollars per share) | (0.37) | (1.01) | (0.49) | ||
Net earnings per common share - Diluted (in dollars per share) | 4.02 | 2.51 | 2.54 | ||
Dividend declared per share (in dollars per share) | $ 1 | $ 0.50 | $ 0.92 | ||
Average number of common shares (in shares) | 22,147,479 | 22,374,123 | 22,378,414 | ||
Average number of common shares and dilutive common shares (in shares) | 22,616,456 | 22,825,885 | 22,818,451 | ||
[1] | Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. | ||||
[2] | Included in restructuring and integration costs in 2020 is a $0.3 million increase in environmental cleanup costs related to ongoing monitoring and remediation in connection with the prior closure of our manufacturing operations at our Long Island City, New York location. The environmental liability has been reclassed to accrued liabilities as of December 31, 2020. | ||||
[3] | Throughout this Form 10-K, “SMP” refers to Standard Motor Products, Inc. and subsidiaries. |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Income tax benefit | $ 2,975 | $ 8,089 | $ 3,912 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net earnings | $ 90,954 | $ 57,393 | $ 57,917 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (2,462) | 2,929 | 1,024 |
Pension and postretirement plans | (16) | (16) | (19) |
Total other comprehensive income (loss), net of tax | (2,478) | 2,913 | 1,005 |
Total comprehensive income | 88,476 | 60,306 | 58,922 |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax: | |||
Net earnings | 68 | 0 | 0 |
Foreign currency translation adjustments | 15 | 0 | 0 |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax | 83 | 0 | 0 |
Comprehensive income attributable to SMP | $ 88,393 | $ 60,306 | $ 58,922 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 21,755 | $ 19,488 |
Accounts receivable, less allowances for discounts and expected credit losses of $6,170 and $5,822 in 2021 and 2020, respectively | 180,604 | 198,039 |
Inventories | 468,755 | 345,502 |
Unreturned customer inventories | 22,268 | 19,632 |
Prepaid expenses and other current assets | 17,823 | 15,875 |
Total current assets | 711,205 | 598,536 |
Property, plant and equipment, net | 102,786 | 89,105 |
Operating lease right-of-use assets | 40,469 | 29,958 |
Goodwill | 131,652 | 77,837 |
Other intangibles, net | 106,234 | 54,004 |
Deferred incomes taxes | 36,126 | 44,770 |
Investments in unconsolidated affiliates | 44,087 | 40,507 |
Other assets | 25,402 | 21,823 |
Total assets | 1,197,961 | 956,540 |
CURRENT LIABILITIES: | ||
Notes payable | 125,298 | 10,000 |
Current portion of other debt | 3,117 | 135 |
Accounts payable | 137,167 | 100,018 |
Sundry payables and accrued expenses | 57,182 | 47,078 |
Accrued customer returns | 42,412 | 40,982 |
Accrued core liability | 23,663 | 22,014 |
Accrued rebates | 42,472 | 46,437 |
Payroll and commissions | 45,058 | 35,938 |
Total current liabilities | 476,369 | 302,602 |
Long-term debt | 21 | 97 |
Noncurrent operating lease liabilities | 31,206 | 22,450 |
Other accrued liabilities | 25,040 | 25,929 |
Accrued asbestos liabilities | 52,698 | 55,226 |
Total liabilities | 585,334 | 406,304 |
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 | 105,377 | 105,084 |
Retained earnings | 532,319 | 463,612 |
Accumulated other comprehensive income | (8,169) | (5,676) |
Treasury stock - at cost (1,911,792 shares and 1,586,923 shares in 2021 and 2020, respectively) | (75,819) | (60,656) |
Total SMP stockholders' equity | 601,580 | 550,236 |
Noncontrolling Interest | 11,047 | 0 |
Total Stockholders' Equity | 612,627 | 550,236 |
Total liabilities and stockholders' equity | $ 1,197,961 | $ 956,540 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Accounts receivable, allowances for discounts and expected credit losses | $ 6,170 | $ 5,822 |
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) | 1,911,792 | 1,586,923 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net earnings | $ 90,954 | $ 57,393 | $ 57,917 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 27,243 | 26,323 | 25,809 |
Amortization of deferred financing cost | 228 | 228 | 225 |
Increase (decrease) to allowance for expected credit losses | 451 | 396 | (295) |
Increase (decrease) to inventory reserves | (585) | 5,962 | 4,858 |
Intangible asset impairment | 0 | 2,600 | 0 |
Equity (income) from joint ventures | (3,295) | (820) | (2,865) |
Employee stock ownership plan allocation | 2,513 | 2,301 | 2,519 |
Stock-based compensation | 9,479 | 8,101 | 6,917 |
(Increase) decrease in deferred income taxes | (1,801) | (8,334) | 4,736 |
Increase in tax valuation allowance | 466 | 864 | 358 |
Loss on discontinued operations, net of tax | 8,467 | 23,024 | 11,134 |
Change in assets and liabilities: | |||
(Increase) decrease in accounts receivable | 28,464 | (71,933) | 2,789 |
(Increase) decrease in inventories | (107,609) | 17,984 | (17,901) |
Increase in prepaid expenses and other current assets | (843) | (370) | (8,296) |
Increase (decrease) in accounts payable | 33,046 | 7,428 | (1,950) |
Increase (decrease) in sundry payables and accrued expenses | 13,430 | 40,651 | (2,957) |
Net changes in other assets and liabilities | (15,044) | (13,902) | (6,070) |
Net cash provided by operating activities | 85,564 | 97,896 | 76,928 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisitions of and investments in businesses, net of cash acquired | (125,419) | 0 | (43,490) |
Net proceeds from sale of Grapevine, Texas facility | 0 | 0 | 4,801 |
Capital expenditures | (25,875) | (17,820) | (16,185) |
Other investing activities | 45 | 21 | 62 |
Net cash used in investing activities | (151,249) | (17,799) | (54,812) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net borrowings (repayments) under line-of-credit agreements | 115,298 | (42,460) | 8,771 |
Net borrowings (repayments) of other debt and lease obligations | 3,048 | (4,248) | (911) |
Purchase of treasury stock | (26,862) | (13,482) | (10,738) |
Dividends paid | (22,179) | (11,218) | (20,593) |
Increase (decrease) in overdraft balances | 247 | (108) | 93 |
Dividends paid to noncontrolling interest | (540) | 0 | 0 |
Net cash provided by (used in) financing activities | 69,012 | (71,516) | (23,378) |
Effect of exchange rate changes on cash | (1,060) | 535 | 496 |
Net increase (decrease) in cash and cash equivalents | 2,267 | 9,116 | (766) |
CASH AND CASH EQUIVALENTS at beginning of year | 19,488 | 10,372 | 11,138 |
CASH AND CASH EQUIVALENTS at end of year | 21,755 | 19,488 | 10,372 |
Cash paid during the year for: | |||
Interest | 1,721 | 2,187 | 5,030 |
Income taxes | $ 26,323 | $ 24,640 | $ 22,267 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 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 SMP [Member] | Non-controlling Interest [Member] | Total |
Balance at beginning of period at Dec. 31, 2018 | $ 47,872 | $ 102,470 | $ 380,113 | $ (9,594) | $ (53,660) | $ 467,201 | $ 0 | $ 467,201 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 57,917 | 0 | 0 | 57,917 | 0 | 57,917 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 1,005 | 0 | 1,005 | 0 | 1,005 |
Cash dividends paid | 0 | 0 | (20,593) | 0 | 0 | (20,593) | 0 | (20,593) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (10,738) | (10,738) | 0 | (10,738) |
Stock-based compensation | 0 | (473) | 0 | 0 | 7,390 | 6,917 | 0 | 6,917 |
Employee Stock Ownership Plan | 0 | 745 | 0 | 0 | 1,774 | 2,519 | 0 | 2,519 |
Balance at end of period at Dec. 31, 2019 | 47,872 | 102,742 | 417,437 | (8,589) | (55,234) | 504,228 | 0 | 504,228 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 57,393 | 0 | 0 | 57,393 | 0 | 57,393 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 2,913 | 0 | 2,913 | 0 | 2,913 |
Cash dividends paid | 0 | 0 | (11,218) | 0 | 0 | (11,218) | 0 | (11,218) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (13,482) | (13,482) | 0 | (13,482) |
Stock-based compensation | 0 | 1,712 | 0 | 0 | 6,389 | 8,101 | 0 | 8,101 |
Employee Stock Ownership Plan | 0 | 630 | 0 | 0 | 1,671 | 2,301 | 0 | 2,301 |
Balance at end of period at Dec. 31, 2020 | 47,872 | 105,084 | 463,612 | (5,676) | (60,656) | 550,236 | 0 | 550,236 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling interest in business acquired | 0 | 0 | 0 | 0 | 0 | 0 | 11,504 | 11,504 |
Net earnings | 0 | 0 | 90,886 | 0 | 0 | 90,886 | 68 | 90,954 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (2,493) | 0 | (2,493) | 15 | (2,478) |
Cash dividends paid | 0 | 0 | (22,179) | 0 | 0 | (22,179) | 0 | (22,179) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (26,862) | (26,862) | 0 | (26,862) |
Dividends paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | (540) | (540) |
Stock-based compensation | 0 | 159 | 0 | 0 | 9,320 | 9,479 | 0 | 9,479 |
Employee Stock Ownership Plan | 0 | 134 | 0 | 0 | 2,379 | 2,513 | 0 | 2,513 |
Balance at end of period at Dec. 31, 2021 | $ 47,872 | $ 105,377 | $ 532,319 | $ (8,169) | $ (75,819) | $ 601,580 | $ 11,047 | $ 612,627 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract] | |||
Cash dividends paid (in dollars per share) | $ 1 | $ 0.50 | $ 0.92 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Principles of Consolidation Standard Motor Products, Inc. and subsidiaries (referred to hereinafter in these notes to the consolidated financial statements as “we,” “us,” “our,” “SMP,” or the “Company”) is a leading automotive parts manufacturer and distributor of engine management and temperature control systems of motor vehicles in the automotive aftermarket industry with a complementary focus on the heavy duty, industrial equipment and original equipment service markets. The 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. In instances where we have more than a 50% equity ownership and the minority shareholder does not maintain substantive participating rights, our consolidated financial statements include the accounts of the company on a consolidated basis with its net income and equity reported at amounts attributable to both our equity position and that of the noncontrolling interest. 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 Use of Estimates The preparation of consolidated 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 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, if any, of the COVID 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. Reclassification Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2021 presentation. Cash and Cash Equivalents We consider all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Allowance for Expected Credit Losses and Cash Discounts We do not generally require collateral for our trade accounts receivable. Accounts receivable have been reduced by an allowance for amounts that may become uncollectible in the future. These allowances are established based on a combination of write-off history, supportable forecasts, aging analysis, and specific account evaluations. When a receivable balance is known to be uncollectible, it is written off against the allowance for expected credit losses. Cash discounts are provided based on an overall average experience rate applied to qualifying accounts receivable balances. Inventories Inventories are valued at the lower of cost and net realizable value. Cost is determined on the first-in first-out basis. Where appropriate, standard cost systems are utilized for purposes of determining cost; the standards are adjusted as necessary to ensure they approximate actual costs. Estimates of lower of cost and net realizable value of inventory are determined by comparing the actual cost of the product to the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation of the inventory. We also evaluate inventories on a regular basis to identify inventory on hand that may be obsolete or in excess of current and future projected market demand. For inventory deemed to be obsolete, we provide a reserve on the full value of the inventory. Inventory that is in excess of current and projected use is reduced by an allowance to a level that approximates our estimate of future demand. Future projected demand requires management judgment and is based upon (a) our review of historical trends and (b) our estimate of projected customer specific buying patterns and trends in the industry and markets in which we do business. Using rolling twelve month historical information, we estimate future demand on a continuous basis. The historical volatility of such estimates has been minimal. We maintain provisions for inventory reserves of $46.2 million and $49.4 million as of December 31, 2021 and 2020, respectively We utilize cores (used parts) in our remanufacturing processes for air conditioning compressors, diesel injectors, and diesel pumps. The production of air conditioning compressors, diesel injectors, and diesel pumps involves the rebuilding of used cores, which we acquire either in outright purchases from used parts brokers, or from returns pursuant to an exchange program with customers. Under such exchange programs, at the time of sale of air conditioning compressors, diesel injectors, and diesel pumps, we estimate the core expected to be returned from the customer and record the estimated return as unreturned customer inventory. In addition, many of our customers can return inventory to us based upon customer warranty and overstock arrangements within customer specific limits. At the time products are sold, we accrue a liability for product warranties and overstock returns and record as unreturned customer inventory our estimate of anticipated customer returns. Estimates are based upon historical information on the nature, frequency and probability of the customer return. Unreturned core, warranty and overstock customer inventory is recorded at standard cost. Revision to these estimates is made when necessary, based upon changes in these factors. We regularly study trends of such claims. Property, Plant and Equipment Property, plant and equipment are recorded at historical cost and are depreciated using the straight-line method of depreciation over the estimated useful lives as follows: Estimated Life Buildings 25 to 33-1/2 Building improvements 10 to 25 years Machinery and equipment 5 to years Tools, dies and auxiliary equipment 3 to years Furniture and fixtures 3 to years Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. Costs related to maintenance and repairs which do not prolong the assets useful lives are expensed as incurred. We assess our property, plant and equipment to be held and used for impairment when indicators are present that the carrying value may not be recoverable. Leases We determine if an arrangement is a lease at inception. For operating leases, we include and report operating lease right-of-use (“ROU”) assets, sundry payables and accrued expenses, and noncurrent operating lease liabilities on our consolidated balance sheet for leases with a term longer than twelve months. Finance leases are reported on our consolidated balance sheets in property, plant and equipment, current portion of other debt, and long-term debt. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the total lease payments over the lease term. Our ROU assets represent the right to use an underlying leased asset over the existing lease term, and the corresponding lease liabilities represent our obligation to make lease payments arising from the lease agreement. As most of our leases do not provide for an implicit rate, we use our secured incremental borrowing rate based on the information available when determining the present value of our lease payments. Our lease terms may include options to terminate, or extend, our lease when it is reasonably certain that we will execute the option. Lease agreements may contain lease and non-lease components, which are generally accounted for separately. Operating lease expense is recognized on a straight-line basis over the lease term. Valuation of Long-Lived and Intangible Assets and Goodwill At acquisition, we estimate and record the fair value of purchased intangible assets, which primarily consist of customer relationships, trademarks and trade names, patents, developed technology and intellectual property, and non-compete agreements. Intangible assets acquired through business combinations are subject to potential adjustments within the measurement period, which is up to one year from the acquisition date. Valuing intangible assets requires the use of significant estimates and assumptions. As related to valuing customer relationships, significant estimates and assumptions used include but are not limited to: (1) forecasted revenues attributable to existing customers; (2) forecasted earnings before interest and taxes (“EBIT”) margins; (3) customer attrition rates; and (4) the discount rate. Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill and certain other intangible assets having indefinite lives are not amortized to earnings, but instead are subject to periodic testing for impairment. Intangible assets determined to have definite lives are amortized over their remaining useful lives. We believe that the fair value of acquired identifiable net assets, including intangible assets, are based upon reasonable estimates and assumptions. We assess the impairment of long‑lived assets, identifiable intangibles assets and goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. With respect to goodwill and identifiable intangible assets having indefinite lives, we test for impairment on an annual basis or in interim periods if an event occurs or circumstances change that may indicate the fair value is below its carrying amount. Factors we consider important, which could trigger an impairment review, include the following: (a) significant underperformance relative to expected historical or projected future operating results; (b) significant changes in the manner of our use of the acquired assets or the strategy for our overall business; and (c) significant negative industry or economic trends. We review the fair values using the discounted cash flows method and market multiples. When performing our evaluation of goodwill for impairment, if we conclude qualitatively that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then a quantitative impairment test would not be required. If we are unable to reach this conclusion, then we would perform a goodwill quantitative impairment test. In performing the quantitative test, the fair value of the reporting unit is compared to its carrying amount. A charge for impairment is recognized by the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Identifiable intangible assets having indefinite lives are reviewed for impairment on an annual basis using a methodology similar with that used to evaluate goodwill. Intangible assets having definite lives and other long-lived assets are reviewed for impairment whenever events such as product discontinuance, plant closures, product dispositions or other changes in circumstances indicate that the carrying amount may not be recoverable. In reviewing intangible assets having definite lives and other long-lived assets for impairment, we compare the carrying value of such assets to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets fair value and their carrying value. There are inherent assumptions and estimates used in developing future cash flows requiring our judgment in applying these assumptions and estimates to the analysis of identifiable intangibles and long‑lived asset impairment including projecting revenues, interest rates, tax rates and the cost of capital. Many of the factors used in assessing fair value are outside our control and it is reasonably likely that assumptions and estimates will change in future periods. These changes can result in future impairments. In the event our planning assumptions were modified resulting in impairment to our assets, we would be required to include an expense in our statement of operations, which could materially impact our business, financial condition and results of operations. Foreign Currency Translation Assets and liabilities of our foreign operations are translated into U.S. dollars at year-end exchange rates. Income statement accounts are translated using the average exchange rates prevailing during the year. The resulting translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) and remains there until the underlying foreign operation is liquidated or substantially disposed of. Foreign currency transaction gains or losses are recorded in the statement of operations under the caption “other non-operating income (expense), net.” Revenue Recognition We derive our revenue primarily from sales of replacement parts for motor vehicles from both our Engine Management and Temperature Control Segments. We recognize revenues when our performance obligation has been satisfied and the control of products has been transferred to a customer which typically occurs upon shipment. Revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of goods or providing services. The amount of consideration we receive and revenue we recognize depends on the marketing incentives, product warranty and overstock returns we offer to our customers. For certain of our sales of remanufactured products, we also charge our customers a deposit for the return of a used core component which we can use in our future remanufacturing activities. Such deposit is not recognized as revenue at the time of the sale but rather carried as a core liability. At the same time, we estimate the core expected to be returned from the customer and record the estimated return as unreturned customer inventory. The liability is extinguished when a core is actually returned to us, or at period end when we estimate and recognize revenue for the core deposits not expected to be returned. We estimate and record provisions for cash discounts, quantity rebates, sales returns and warranties in the period the sale is recorded, based upon our prior experience and current trends. Significant management judgments and estimates must be made and used in estimating sales returns and allowances relating to revenue recognized in any accounting period. Product Warranty and Overstock Returns Many of our products carry a warranty ranging from a -day limited warranty to a lifetime limited warranty, which generally covers defects in materials or workmanship and failure to meet industry published specifications and/or the result of installation error. In addition to warranty returns, we also permit our customers to return new, undamaged products to us within customer-specific limits (which are generally limited to a specified of their annual purchases from us) in the event that they have overstocked their inventories. At the time products are sold, we accrue a liability for product warranties and overstock returns as a of sales based upon estimates established using historical information on the nature, frequency and average cost of the claim and the probability of the customer return. At the same time, we record an estimate of anticipated customer returns as unreturned customer inventory. Significant judgments and estimates must be made and used in connection with establishing the sales returns and other allowances in any accounting period. Revision to these estimates is made when necessary, based upon changes in these factors. We regularly study trends of such claims. New Customer Acquisition Costs New customer acquisition costs refer to arrangements pursuant to which we incur change-over costs to induce a new customer to switch from a competitor’s brand. In addition, change-over costs include the costs related to removing the new customer’s inventory and replacing it with our inventory commonly referred to as a stock lift. New customer acquisition costs are recorded as a reduction to revenue when incurred. Selling, General and Administration Expenses Selling, general and administration expenses include shipping costs and advertising, which are expensed as incurred. Shipping and handling charges, as well as freight to customers, are included in distribution expenses as part of selling, general and administration expenses. Deferred Financing Costs Deferred financing costs represent costs incurred in conjunction with our debt financing activities. Deferred financing costs related to our revolving credit facility are capitalized and amortized over the life of the related financing arrangement. If the debt is retired early, the related unamortized deferred financing costs are written off in the period the debt is retired and are recorded in the statement of operations under the caption other non-operating income (expense), net. Accounting for Income Taxes Income taxes are calculated using the asset and liability method. Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities, as measured by the current enacted tax rates. We maintain valuation allowances when it is more likely than not that all or a portion of a deferred asset will not be realized. In determining whether a valuation allowance is warranted, we consider all positive and negative evidence and all sources of taxable income such as prior earnings history, expected future earnings, carryback and carryforward periods and tax strategies to estimate if sufficient future taxable income will be generated to realize the deferred tax asset. The assessment of the adequacy of our valuation allowance is based on our estimates of taxable income by jurisdiction in which we operate and the period over which our deferred tax assets will be recoverable. In the event that actual results differ from these estimates, or we adjust these estimates in future periods for current trends or expected changes in our estimating assumptions, we may need to modify the level of valuation allowance which could materially impact our business, financial condition and results of operations. The valuation allowance of as of December 31, 2021 is intended to provide for the uncertainty regarding the ultimate realization of our U.S. foreign tax credit carryovers and foreign net operating loss carryovers. Based on these considerations, we believe it is more likely than not that we will realize the benefit of the net deferred tax asset of as of December 31, 2021 which is net of the remaining valuation allowance. Tax benefits are recognized for an uncertain tax position when, in management’s judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, the tax benefit is measured as the largest amount that is judged to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances and when new information becomes available. Such adjustments are recognized entirely in the period in which they are identified. During the years ended December 31, 2021, 2020 and 2019 we did not establish a liability for uncertain tax positions. Environmental Reserves We are subject to various U.S. Federal and state and local environmental laws and regulations and are involved in certain environmental remediation efforts. We estimate and accrue our liabilities resulting from such matters based upon a variety of factors including the assessments of environmental engineers and consultants who provide estimates of potential liabilities and remediation costs. Such estimates are not discounted to reflect the time value of money due to the uncertainty in estimating the timing of the expenditures, which may extend over several years. Potential recoveries from insurers or other third parties of environmental remediation liabilities are recognized independently from the recorded liability, and any asset related to the recovery will be recognized only when the realization of the claim for recovery is deemed probable. Asbestos Litigation 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; (4) an analysis of our settlements and awards of asbestos-related damages to date; and (5) an analysis of closed claims with pay ratios and lag patterns in order to develop average future 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. Future legal costs are expensed as incurred and reported in earnings (loss) from discontinued operations in the accompanying statement of operations. We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future Loss Contingencies We have loss contingencies, for such matters as legal claims and legal proceedings. Establishing loss reserves for these matters requires estimates, judgment of risk exposure and ultimate liability. We record provisions when the liability is considered probable and reasonably estimable. Significant judgment is required for both the determination of probability and the determination as to whether an exposure can be reasonably estimated. We maintain an ongoing monitoring and identification process to assess how the activities are progressing against the accrued estimated costs. As additional information becomes available, we reassess our potential liability related to these matters. Adjustments to the liabilities are recorded in the statement of operations in the period when additional information becomes available. Such revisions of the potential liabilities could have a material adverse effect on our business, financial condition or results of operations. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash investments and accounts receivable. We place our cash investments with high quality financial institutions and limit the amount of credit exposure to any one institution. Although we are directly affected by developments in the vehicle parts industry, management does not believe significant credit risk exists. With respect to accounts receivable, such receivables are primarily from warehouse distributors and major retailers in the automotive aftermarket industry located in the U.S. We perform ongoing credit evaluations of our customers’ financial conditions. A significant portion of our net sales are concentrated from our largest individual customers. For further information on net sales to our largest customers and our concentration our customer risk, see Note , “Industry Segment and Geographic Data.” Foreign Cash Balances Substantially all of the cash and cash equivalents, including foreign cash balances, at December 31, 2021 and 2020 were uninsured. Foreign cash balances at December 31, 2021 and 2020 were and , respectively. Recently Issued Accounting Pronouncements Standards that were adopted Standard Description Date of adoption Effects on the financial statements or other significant matters ASU 2019-12 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 740 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 1, 2021 The adoption of the technical clarifications in the standard did not materially impact our accounting for income taxes, our consolidated financial statements and related disclosures. Standards that are not yet adopted as of December 31, 2021 The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted as of December 31, 2021 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 2020-04 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 12, 2020 through December 31, 2022 The new standard may be applied as of the beginning of an interim period that includes March 12, 2020 through December 31, 2022 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 | 12 Months Ended |
Dec. 31, 2021 | |
Business Acquisitions and Investments [Abstract] | |
Business Acquisitions and Investments | 2. Business Acquisitions and Investments 2021 Business Acquisitions Acquisition of Capital Stock of Stabil Operative Group GmbH (“Stabil”) In September 2021, we acquired 100% of the capital stock of Stabil Operative Group GmbH, a German company (“Stabil”), for Euros 13.7 million, or $16.3 million, subject to certain post-closing adjustments. Stabil is a manufacturer and distributor of a variety of components, including electronic sensors, control units, and clamping devices to the European Original Equipment (“OE”) market, serving both commercial and light vehicle applications. The acquired Stabil business was paid for with cash funded by borrowings under our revolving credit facility with JPMorgan Chase Bank, N.A., as agent, and is headquartered on the outskirts of Stuttgart, Germany with facilities in Germany and Hungary. The acquisition, to be reported as part of our Engine Management Segment, aligns with our strategy of expansion beyond our core aftermarket business into complementary areas, and gives us exposure to a diversified group of blue chip European commercial and light vehicle OE customers. The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values, subject to final agreement of post-closing adjustments, which we do anticipate will be significant (in thousands): Purchase price $ 16,290 Assets acquired and liabilities assumed: Receivables $ 2,852 Inventory 5,126 Other current assets (1) 1,628 Property, plant and equipment, net 1,810 Operating lease right-of-use assets 4,971 Intangible assets 5,471 Goodwill 4,827 Current liabilities (4,190 ) Noncurrent operating lease liabilities (4,454 ) Deferred income taxes (1,751 ) Net assets acquired $ 16,290 (1) The other current assets balance includes $0.9 million of cash acquired. Intangible assets acquired of $5.5 million consist of customer relationships that will be amortized on a straight-line basis over the estimated useful life of 20 years. Goodwill of $4.8 million was allocated to the Engine Management Segment. The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations. The intangible assets and goodwill are not deductible for tax purposes. Revenues from the acquired business included in our consolidated statement of operations from the acquisition date through December 31, 2021 were $7.2 million. Acquisition of Capital Stock of Trumpet Holdings, Inc. (“Trombetta”) In May 2021, we acquired 100% of the capital stock of Trumpet Holdings, Inc., a Delaware corporation, (more commonly known as “Trombetta”), for $111.7 million, subject to certain post-closing adjustments. In December 2021, the post-closing adjustments were finalized at approximately $30,000, thereby reducing the purchase price. Trombetta is a leading provider of power switching and power management products to Original Equipment (“OE”) customers in various markets. The acquired Trombetta business was paid for in cash funded by borrowings under our revolving credit facility with JPMorgan Chase Bank, N.A., as agent, and has manufacturing facilities in Milwaukee, Wisconsin; Sheboygan Falls, Wisconsin; Tijuana, Mexico, as well as a 70% ownership in a joint venture in Hong Kong, with operations in Shanghai and Wuxi, China (“Trombetta Asia, Ltd.”). The acquisition, to be reported as part of our Engine Management Segment, aligns with our strategy of expansion into the OE heavy duty market. The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values, subject to finalization of amounts related to deferred income taxes, which we do not anticipate will be significant (in thousands): Purchase price $ 111,711 Assets acquired and liabilities assumed: Receivables $ 9,173 Inventory 12,460 Other current assets (1) 5,193 Property, plant and equipment, net 4,939 Operating lease right-of-use assets 3,847 Intangible assets 54,700 Goodwill 49,250 Current liabilities (5,072 ) Noncurrent operating lease liabilities (3,065 ) Deferred income taxes (8,210 ) Subtotal 123,215 Fair value of acquired noncontrolling interest (11,504 ) Net assets acquired $ 111,711 (1) The other current assets balance includes $4.6 million of cash acquired. Intangible assets acquired of $54.7 million consist of customer relationships of $39.4 million that will be amortized on a straight-line basis over the estimated useful life of 20 years; developed technology of $13.4 million that will be amortized on a straight-line basis over the estimated useful life of 15 years; and a trade name of $1.9 million that will be amortized on a straight-line basis over the estimated useful life of 10 years. Goodwill of $49.3 million was allocated to the Engine Management Segment. The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations. The intangible assets and goodwill are not deductible for tax purposes. Revenues from the acquired business included in our consolidated statement of operations from the acquisition date through December 31, 2021 were $37.8 million. Acquisition of Particulate Matter Sensor Business of Stoneridge, Inc. (“Soot Sensor”) In March 2021, we agreed to acquire certain Soot Sensor product lines from Stoneridge, Inc. The product lines to be acquired manufacture sensors used in the exhaust and emission systems of diesel engines. The product lines acquired were located in Stoneridge’s facilities in Lexington, Ohio and Tallinn, Estonia. We are not acquiring these facilities, nor any of Stoneridge’s employees, and will be relocating the production lines to our engine management plants in Independence, Kansas and Bialystok, Poland, respectively. The acquisition, to be reported as part of our Engine Management Segment, aligns with our strategy of expansion into the OE heavy duty market. Customer relationships to be acquired include Volvo, CNHi and Hino. The product lines located in Stoneridge’s facility in Lexington, Ohio were acquired in March 2021 for $2.1 million, while the product lines located in Stoneridge’s facility in Tallinn, Estonia were acquired in November 2021 for $0.8 million. The acquired product lines were paid for with cash funded by borrowings under our revolving credit facility with JPMorgan Chase Bank, N.A. The assets acquired include inventory, machinery & equipment and certain intangible assets. 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 $ 2,924 Assets acquired and liabilities assumed: Inventory $ 1,032 Machinery and equipment, net 1,137 Intangible assets 755 Net assets acquired $ 2,924 Intangible assets acquired of approximately $0.8 million consist of customer relationships that will be amortized on a straight-line basis over the estimated useful life of 10 years. Revenues from the acquired business included in our consolidated statement of operations from the acquisition date through December 31, 2021 were $9.3 million. |
Restructuring and Integration E
Restructuring and Integration Expense | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Integration Expense [Abstract] | |
Restructuring and Integration Expense | 3. 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 and for the years ended December 31, 2021 and 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 (1) — 464 464 Cash payments (157 ) (214 ) (371 ) Reclassification of environmental liability (1) — (250 ) (250 ) Exit activity liability at December 31 2020 $ 179 $ — $ 179 Restructuring and integration costs: Amounts provided for during 2021 — 392 392 Cash payments (100 ) (392 ) (492 ) Exit activity liability at December 31 2021 $ 79 $ — $ 79 (1) Included in restructuring and integration costs in 2020 is a $0.3 million increase in environmental cleanup costs related to ongoing monitoring and remediation in connection with the prior closure of our manufacturing operations at our Long Island City, New York location. The environmental liability has been reclassed to accrued liabilities as of December 31, 2020. Integration Costs Particulate Matter Senso r (“Soot Sensor”) Product Line Relocation In connection with our acquisitions in March 2021 and November 2021 of certain soot sensor product lines from Stoneridge, Inc., we incurred certain integration expenses in connection with the relocation of certain inventory, machinery, and equip ment from Stoneridge’s facilities in Lexington, Ohio and Tallinn, Estonia to our existing facilities in Independence, Kansas and Bialystok, Poland, respectively. Integration expenses recognized and cash payments made of $392,000, during the year ended December 31, 2021, related to these relocation activities in our Engine Management segment. Total relocation expenses of approximately $600,000 are expected to be incurred related to the relocations. We anticipate that the soot sensor product line relocation will be completed by the end of the second quarter Pollak Relocation In connection with our April 2019 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 $214,000 during the year ended December 31, 2020 related to residual relocation activities in our Engine Management segment. There is no remaining aggregate liability related to the Pollak Relocation as of December 31, 2020. Restructuring Costs Plant Rationalization Programs The 2016 Plant Rationalization Program, which included the shutdown and sale of our Grapevine, Texas facility, and the 2017 Orlando Rationalization Program, which included the shutdown of our Orlando, Florida facility, have been substantially completed. Cash payments made of $100,000 and $157,000 during the years ended December 31, 2021 and 2020, respectively, and the remaining aggregate liability related to the programs as of December 31, 2021 of $79,000 consists of severance payments to former employees terminated in connection with these programs. |
Sale of Receivables
Sale of Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Sale of Receivables [Abstract] | |
Sale of Receivables | 4. 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 Pursuant to these agreements, we sold $818.8 million and $695.1 million of receivables for the years ended December 31, 2021 and 2020, respectively. Receivables presented at financial institutions and not yet collected as of December 31, 2021 and December 31, 2020 were approximately $1.3 million and $50 million, respectively, and remained in our accounts receivable balance for those periods. All receivables sold were reflected as a reduction of accounts receivable in the consolidated balance sheet at the time of sale. A charge in the amount of $11.5 million, $12.2 million and $22 million related to the sale of receivables is included in selling, general and administrative expenses in our consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019, respectively. 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 | 12 Months Ended |
Dec. 31, 2021 | |
Inventories [Abstract] | |
Inventories | 5. Inventories December 31, 2021 December 31, 2020 (In thousands) Finished goods $ 296,739 $ 225,523 Work-in-process 16,010 10,711 Raw materials 156,006 109,268 Subtotal 468,755 345,502 Unreturned customer inventories 22,268 19,632 Total inventories $ 491,023 $ 365,134 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, Plant and Equipment December 31, 2021 2020 (In thousands) Land, buildings and improvements $ 40,882 $ 38,833 Machinery and equipment 159,967 148,578 Tools, dies and auxiliary equipment 63,944 60,102 Furniture and fixtures 30,688 30,347 Leasehold improvements 14,081 11,948 Construction-in-progress 21,012 13,691 Total property, plant and equipment 330,574 303,499 Less accumulated depreciation 227,788 214,394 Total property, plant and equipment, net $ 102,786 $ 89,105 Depreciation expense was $18.2 million in 2021, $17.8 million in 2020 and $17.4 million in 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 7. Leases Quantitative Lease Disclosures We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to , some of which may include or more renewal options. We have included the renewal option for 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 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 and includes all operating leases acquired in the Stabil and Trombetta acquisitions from the date of the acquisition : December 31, Balance Sheet Information 2021 2020 Assets Operating lease right-of-use assets $ 40,469 $ 29,958 Liabilities Sundry payables and accrued expenses $ 10,544 $ 8,719 Noncurrent operating lease liabilities 31,206 22,450 Total operating lease liabilities $ 41,750 $ 31,169 Weighted Average Remaining Lease Term Operating leases 5.3 Years 5 Years Weighted Average Discount Rate Operating leases 3 % 3.6 % Year Ended, December 31, Expense and Cash Flow Information 2021 2020 Lease Expense Operating lease expense (a) $ 10,051 $ 9,203 Supplemental Cash Flow Information Cash Paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,985 $ 9,087 Right-of-use assets obtained in exchange for new lease obligations: Operating leases (b) $ 20,975 $ 3,180 (a) Excludes expenses of approximately $2 million and $2.5 million for the years ended December 31, 2021 and 2020, 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. (b) Includes $8.8 million of right-of-use assets obtained in business acquisitions during the year ended December 31, 2021. Minimum Lease Payments At December 31, 2021, we are obligated to make minimum lease payments through 2031, under operating leases, which are as follows (in thousands): 2022 $ 10,707 2023 9,537 2024 7,165 2025 5,860 2026 5,109 Thereafter 6,562 Total lease payments $ 44,940 Less: Interest (3,190 ) Present value of lease liabilities $ 41,750 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets Goodwill We assess the impairment of long ‑ When performing our evaluation of goodwill for impairment, if we conclude qualitatively that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then a quantitative impairment test would not be required. If we are unable to reach this conclusion, then we would perform a goodwill quantitative impairment test. In performing the quantitative test, the fair value of the reporting unit is compared to its carrying amount. A charge for impairment is recognized by the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. As of December 31, 2021, we performed a qualitative assessment of the likelihood of a goodwill impairment for both the Engine Management and Temperature Control reporting units. Based upon our qualitative assessment, we determined that it was not more likely than not that the fair value of the each of the Engine Management and Temperature Control reporting units was less than their respective carrying amounts. As such, we concluded that the quantitative impairment test would not be required, and that there would be no required goodwill impairment charge as of December 31, 2021 at each of the Engine Management and Temperature Control reporting units. While we concluded that we did not have a goodwill impairment charge as of December 31, 2021, and we do not believe that future impairments are probable, we will need to maintain the current ongoing performance levels at each of the Engine Management and Temperature Control reporting units in future periods to sustain their goodwill carrying values. Changes in the carrying values of goodwill by operating segment during the years ended December 31, 2021 and 2020 are as follows (in thousands): Engine Management Temperature Control Total Balance as of December 31 2019 Goodwill $ 102,020 $ 14,270 $ 116,290 Accumulated impairment losses (38,488 ) — (38,488 ) $ 63,532 $ 14,270 $ 77,802 Activity in 2020 Foreign currency exchange rate change 35 — 35 Balance as of December 31 2020 Goodwill 102,055 14,270 116,325 Accumulated impairment losses (38,488 ) — (38,488 ) $ 63,567 $ 14,270 $ 77,837 Activity in 2021 Acquisition of Trombetta 49,250 — 49,250 Acquisition of Stabil 4,827 — 4,827 Foreign currency exchange rate change (262 ) — (262 ) Balance as of December 31 2021 Goodwill 155,870 14,270 170,140 Accumulated impairment losses (38,488 ) — (38,488 ) $ 117,382 $ 14,270 $ 131,652 Acquired Intangible Assets Acquired identifiable intangible assets as of December 31, 2021 and 2020 consist of: December 31, 2021 2020 (In thousands) Customer relationships $ 157,020 $ 111,701 Patents, developed technology and intellectual property 14,123 723 Trademarks and trade names 8,880 6,980 Non-compete agreements 3,280 3,272 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 184,263 123,636 Less accumulated amortization (1) (78,932 ) (70,221 ) Net acquired intangible assets $ 105,331 $ 53,415 (1) Applies to all intangible assets, except for a related trademark/trade name totaling $2.6 million, which has an indefinite useful life and, as such, is not being amortized. In December 2020, a large retail customer informed us of its decision to pursue a private brand strategy for its engine management product line. As a result of this development, revenues sold under the BWD trademark were significantly reduced. In connection with the decision, in 2020, we recorded an impairment charge of $2.6 million to write-off the BWD intangible asset trademark. Total amortization expense for acquired intangible assets was $8.7 million for the year ended December 31, 2021, $8.2 million for the year ended December 31, 2020, and $8 million for the year ended December 31, 2019. Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be $8.5 million for 2022, $8.4 million in 2023, $8.2 million in 2024, $8.2 million in 2025 and $69.4 million in the aggregate for the years 2026 through 2041. For information related to identified intangible assets acquired in the Stabil, Trombetta, and Soot Sensor acquisitions, see Note 2, “Business Acquisitions and Investments,” of the notes to our consolidated financial statements. Other Intangible Assets Other intangible assets include computer software. Computer software as of December 31, 2021 and 2020 totaled $17.4 million and , respectively Fully amortized computer software, no longer in use, of $ million was written-off during each of the years ended December 31, 2021 and 2020. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2021 | |
Investments in Unconsolidated Affiliates [Abstract] | |
Investments in Unconsolidated Affiliates | 9. Investments in Unconsolidated Affiliates December 31, 2021 2020 (In thousands) Foshan GWOYNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. $ 20,692 $ 18,869 Foshan FGD SMP Automotive Compressor Co. Ltd 16,676 15,036 Foshan Che Yijia New Energy Technology Co., Ltd. 3,990 4,174 Orange Electronic Co. Ltd 2,729 2,428 Total $ 44,087 $ 40,507 Investment in Foshan Che Yijia New Energy Technology Co., Ltd. In August we acquired an approximate minority interest in Foshan Che Yijia New Energy Technology Co., Ltd. (“CYJ”) for approximately . CYJ is a manufacturer of automotive electric air conditioning compressors and is located in China. Our minority interest in CYJ is accounted for using the equity method of accounting. In December 2021, Standard Motor Products (Hong Kong), Ltd., (“SMP HK”), a subsidiary of Standard Motor Products, Inc., entered into an unsecured loan agreement with CYJ. Under the terms of the loan agreement, CYJ shall have the right to borrow from SMP HK, as lender, up to an aggregate principal amount of $4 million, with interest calculated on the basis of simple interest of five percent (5%) per annum and a maturity date of November 30, 2023, subject to extension by SMP HK at its sole discretion. At December 31, 2021, there was no outstanding borrowings under the loan agreement. During the years ended December 31, 2021 and 2020, purchases we made from CYJ were not material. Investment in Foshan FGD SMP Automotive Compressor Co. Ltd. In November 2017, we formed Foshan FGD SMP Automotive Compressor Co., Ltd., a 50/50 joint venture with Foshan Guangdong Automotive Air Conditioning Co., Ltd. (“FGD”), a China-based manufacturer of automotive belt driven air conditioning compressors. We acquired our 50% interest in the joint venture for approximately $12.5 million. We determined that due to a lack of a voting majority, and other qualitative factors, we do not control the operations of the joint venture and accordingly, our investment in the joint venture is accounted for under the equity method of accounting. During the years ended December 31, 2021 and 2020, we made purchases from the joint venture of approximately and Investment in Foshan GWOYNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. In April 2014, we formed Foshan GWOYNG SMP Vehicle Climate Control & Cooling Products Co. Ltd., a 50/50 joint venture with Gwo Yng Enterprise Co., Ltd. (“Gwo Yng”), a China-based manufacturer of automotive air conditioner accumulators, filter driers, hose assemblies and switches . In March 2018, we acquired an additional 15% equity interest in the joint venture for approximately $4.2 million, thereby increasing our equity interest in the joint venture to 65%. Although we increased our equity interest in the joint venture to 65%, the minority shareholder maintained participating rights that allowed it to participate in certain significant financial and operating decisions that occur in the ordinary course of business. As a result of the existence of these substantive participating rights of the minority shareholder, we continued to account for our investment in the joint venture under the equity method of accounting. During the years ended December 31, 2021 and 2020, we made purchases from the joint venture of approximately $15.9 million and $12.4 million, respectively. Investment in Orange Electronic Co. Ltd. In January 2013, we acquired an approximate 25% minority interest in Orange Electronic Co., Ltd. (“Orange”) for $6.3 million. Orange is a manufacturer of tire pressure monitoring system sensors and is located in Taiwan. As of December 31, 2021, our minority interest in Orange of 19.4% is accounted for using the equity method of accounting as we have the ability to exercise significant influence. During the years ended December 31, 2021 and 2020, we made purchases from Orange of approximately $7.8 million and $4.4 million, respectively. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Other Assets | 10. Other Assets December 31, 2021 2020 (In thousands) Deferred compensation $ 23,623 $ 20,775 Deferred financing costs, net 206 431 Other 1,573 617 Total other assets, net $ 25,402 $ 21,823 Deferred compensation consists of assets held in a nonqualified defined contribution pension plan as of December 31, 2021 and 2020, respectively. |
Credit Facilities and Long-Term
Credit Facilities and Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Credit Facilities and Long-Term Debt | 11. Credit Facilities and Long-Term Debt Total debt outstanding is summarized as follows: December 31, 2021 2020 (In thousands) Revolving credit facilities $ 125,298 $ 10,000 Other (1) 3,138 232 Total debt $ 128,436 $ 10,232 Current maturities of debt $ 128,415 $ 10,135 Long-term debt 21 97 Total debt $ 128,436 $ 10,232 (1) Other includes borrowings under our Polish overdraft facility of Zloty 12.3 million (approximately $3 million) and Zloty 0.4 million (approximately $0.1 million) as of December 31, 2021 and 2020, respectively. Maturities of long-term debt are not material for the year ended December 31, 2021 and beyond. Revolving Credit Facility We have entered into an amended 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 arrangements The loss of business of one or more of our key customers or, a significant reduction in purchases of our products from any one of them, could adversely impact availability under our revolving credit facility. Outstanding borrowings under the credit agreement, which are classified as current liabilities, were $125.3 million and $10 million at December 31, 2021 and 2020, respectively ; while letters of credit outstanding under the credit agreement were $ million and $ million at December 31, 2021 and 2020, respectively. At December 31, 2021, the weighted average interest rate on our amended credit agreement was , which consisted of $ million in direct borrowings 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 December 31, 2021, 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 In February 2022, our Polish subsidiary, SMP Poland sp. z.o.o., amended its an overdraft facility with HSBC Continental Europe (Spolka Akcyjna) Oddzial w Polsce, formerly HSBC France (Spolka Akcyjna) Oddzial w Polsce. March 2022 June 2022 Deferred Financing Costs We have deferred financing costs of approximately $0.4 million and $0.7 million as of December 31, 2021 and 2020, respectively. Deferred financing costs as of December 31, 2021 are related to our revolving credit facility. Scheduled amortization for future years, assuming no prepayments of principal is as follows: (In thousands) 2022 225 2023 206 Total amortization $ 431 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 12. Stockholders’ Equity We have authority to issue 500,000 shares of preferred stock, $20 par value, and our Board of Directors is vested with the authority to establish and designate any series of preferred, to fix the number of shares therein and the variations in relative rights as between each series. In December 1995, our Board of Directors established a new series of preferred shares designated as Series A Participating Preferred Stock. The number of shares constituting the Series A Preferred Stock is 30,000. The Series A Preferred Stock is designed to participate in dividends, ranks senior to our common stock as to dividends and liquidation rights and has voting rights. Each share of the Series A Preferred Stock shall entitle the holder to one thousand votes In March 2020, our Board of Directors authorized the purchase of up to $20 million of our common stock under a stock repurchase program. Stock repurchases under this program, during the years ended December 31, 2021 and 2020, were 150,273 and 323,867 shares of our common stock, respectively, at a total cost of $6.5 million and $13.5 million, respectively, thereby completing the 2020 Board of Directors authorization. In February 2021, our Board of Directors authorized the purchase of up to an additional $20 million of our common stock under a stock repurchase program. Stock repurchases under this program, during the year ended December 31, 2021, were 464,992 shares of our common stock at a total cost of $20 million, thereby completing the 2021 Board of Directors authorization. In October 2021, our Board of Directors authorized the purchase of up to an additional $30 million of our common stock under a stock repurchase program. Stock will be purchased under the program from time to time, in the open market or through private transactions, as market conditions warrant. Stock repurchases under this program, during the year ended December 31, 2021, were 7,000 shares of our common stock, at a total cost of $0.3 million. As of December 31, 2021, there was approximately $29.7 million available for future stock purchases under the program. During the period from January 1, 2022 through February 17, 2022, we have repurchased an additional 64,482 shares of our common stock at a total cost of $3.1 million, thereby reducing the availability under the program to $26.6 million. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 13. Stock-Based Compensation Plans Our stock-based compensation program is a broad-based program designed to attract and retain employees while also aligning employees’ interests with the interests of our shareholders. In addition, members of our Board of Directors participate in our stock-based compensation program in connection with their service on our board. In May 2016, our Board of Directors and Shareholders approved the 2016 Omnibus Incentive Plan. The 2016 Omnibus Incentive Plan supersedes the 2006 Omnibus Incentive Plan, which terminated in May 2016. The 2016 Omnibus Incentive Plan is the only remaining plan available to provide stock-based incentive compensation to our employees, directors and other eligible persons. In May 2021, our Board of Directors and Shareholders approved an amendment and restatement to the 2016 Omnibus Incentive Plan (the “Plan”). Under the Plan, which terminates in May 2026, we are authorized to issue, among other things, shares of restricted and performance-based stock to eligible employees and restricted stock to directors of up to 2,050,000 shares; and shares of restricted and performance-based stock to nonemployee directors of up to 350,000 shares. Shares issued under the Plan that are cancelled, forfeited or expire by their terms are eligible to be granted again under the Plan. Awards previously granted under the 2006 Omnibus Incentive Plan are not affected by the plan’s termination, while shares not yet granted under the plan are not available for future issuance. We account for our stock-based compensation plans in accordance with the provisions of ASC 718, Stock Compensation Restricted Stock and Performance Share Grants We currently grant shares of restricted stock to eligible employees and our independent directors and performance-based stock to eligible employees. We grant eligible employees two types of restricted stock (standard restricted shares and long-term retention restricted shares). Standard restricted shares granted to employees become fully vested no earlier than three years after the date of grant. Long-term retention restricted shares granted to selected executives vest at a 25% rate on or within approximately two months of an executive reaching the ages of 60 and 63, and become fully vested Performance-based shares issued to eligible employees 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 no earlier than three years after the date of grant. Each period we evaluate the probability of achieving the applicable targets, and we adjust our accrual accordingly. Restricted shares (other than long-term retention restricted shares) and performance shares issued to certain key executives and directors are subject to a one Prior to the time a restricted share becomes fully vested or a performance share is issued, the awardees cannot transfer, pledge, hypothecate or encumber such shares. Prior to the time a restricted share is fully vested, the awardees have all other rights of a stockholder, including the right to vote (but do not receive dividends during the vesting period). Prior to the time a performance share is issued, the awardees shall have no rights as a stockholder. All shares and rights are subject to forfeiture if certain employment conditions are not met. Under the amended and restated 2016 Omnibus Incentive Plan, 2,050,000 shares are authorized to be issued. At December 31, 2021, under the plan, there were an aggregate of (a) 1,121,445 shares of restricted and performance-based stock grants issued, net of forfeitures, and (b) 928,555 shares of common stock available for future grants. For the year ended December 31, 2021, 211,815 restricted and performance-based shares were granted (159,565 restricted shares and 52,250 performance-based shares). In determining the grant date fair value, the stock price on the date of grant, as quoted on the New York Stock Exchange, was reduced by the present value of dividends expected to be paid on the shares issued and outstanding during the requisite service period, discounted at a risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the restriction or vesting period at the grant date. In addition, a further discount for the lack of marketability reduced the fair value of grants issued to certain key executives and directors subject to the one As related to restricted and performance stock shares, we recorded compensation expense of $9.1 million ($6.9 million, net of tax), $7.8 million ($5.8 million, net of tax) and $6.5 million ($4.9 million, net of tax), for the years ended December 31, 2021, 2020 and 2019, respectively. The unamortized compensation expense related to our restricted and performance-based shares was $16.6 million and $15.2 million at December 31, 2021 and 2020, respectively and is expected to be recognized over a weighted average period of 4.7 years and 0.4 years for employees and directors, respectively, as of December 31, 2021 and over a weighted average period of 4.6 years and 0.3 years for employees and directors, respectively, as of December 31, 2020. Our restricted and performance-based share activity was as follows for the years ended December 31, 2021 and 2020: Shares Weighted Average Grant Date Fair Value per Share Balance at December 31 2019 852,540 $ 35.26 Granted 208,200 38.21 Vested (161,054 ) 39.23 Forfeited (1) (60,000 ) 42.25 Balance at December 31 2020 839,686 $ 34.77 Granted 211,815 38.51 Vested (227,682 ) 36.10 Forfeited (16,800 ) 39.39 Balance at December 31 2021 807,019 $ 34.92 (1) Due to the lack of achievement of performance targets, performance-based shares forfeited in the year ended December 31, 2020 were shares. The weighted-average grant date fair value of restricted and performance-based shares outstanding as of December 31, 2021, 2020 and 2019 was $28.2 million (or $34.92 per share), $29.2 million (or $34.77 per share), and $30.1 million (or $35.26 per share), respectively. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits [Abstract] | |
Employee Benefits | 14. Employee Benefits Defined Contribution Plans We maintain various defined contribution plans, which include profit sharing, and provide retirement benefits for substantially all of our employees. Matching obligations, in connection with the plans which are funded in cash and typically contributed to the plans in March of the following year, are as follows (in thousands): U.S. Defined Contribution Year ended December 31, 2021 $ 9,763 2020 9,457 2019 9,080 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 2021 and 2020, contributions of $0.5 million and $0.3 million were made related to calendar year 2020 and 2019, respectively. As of December 31, 2021, we have recorded an obligation of $0.8 million for 2021. We also have an Employee Stock Ownership Plan and Trust (“ESOP”) 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 its fiduciary duties. During 2021, we contributed to the trust an additional 61,800 shares from our treasury and released 61,800 shares from the trust leaving 200 shares remaining in the trust as of December 31, 2021. The provision for expense in connection with the ESOP was approximately $2.5 million in 2021, $2.3 million in 2020 and $2.5 million in 2019. Defined Benefit Pension Plan We maintain a defined benefit unfunded Supplemental Executive Retirement Plan (“SERP”). The SERP, as amended, is a defined benefit plan pursuant to which we will pay supplemental pension benefits to certain key employees upon the attainment of a contractual participant’s payment date based upon the employees’ years of service and compensation. As there are no current participants in the SERP, there was no benefit obligation outstanding related to the plan as of December 31, 2021 and 2020 and we recorded no expense related to the plan during the years ended December 31, 2021, 2020 and 2019. Postretirement Medical Benefits We provide certain medical and dental care benefits to 14 former U.S. union employees. The postretirement medical and dental benefit obligation for the former union employees as of December 31, 2021, and the net periodic benefit cost for our postretirement benefit plans for the years ended December 31, 2021, 2020 and 2019 were not material. |
Other Non-Operating Income (Exp
Other Non-Operating Income (Expense), Net | 12 Months Ended |
Dec. 31, 2021 | |
Other Non-Operating Income (Expense), Net [Abstract] | |
Other Non-Operating Income (Expense), Net | 15. Other Non-Operating Income (Expense), Net The components of other non-operating income (expense), net are as follows: Year Ended December 31, 2021 2020 2019 (In thousands) Interest and dividend income $ 49 $ 109 $ 97 Equity income from joint ventures 3,295 820 2,865 Loss on foreign exchange (257 ) (350 ) (502 ) Other non-operating income, net 407 233 127 Total other non-operating income, net $ 3,494 $ 812 $ 2,587 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 16. 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | 17. Income Taxes The income tax provision (benefit) consists of the following (in thousands): Year Ended December 31, 2021 2020 2019 Current: Domestic $ 26,528 $ 30,368 $ 14,632 Foreign 5,851 4,064 3,019 Total current 32,379 34,432 17,651 Deferred: Domestic (1,161 ) (7,418 ) 4,677 Foreign (174 ) (52 ) 417 Total deferred (1,335 ) (7,470 ) 5,094 Total income tax provision $ 31,044 $ 26,962 $ 22,745 Reconciliations between taxes at the U.S. Federal income tax rate and taxes at our effective income tax rate on earnings from continuing operations before income taxes are as follows (in thousands): Year Ended December 31, 2021 2020 2019 U.S. Federal income tax rate of 21 $ 27,398 $ 22,550 $ 19,277 Increase (decrease) in tax rate resulting from: State and local income taxes, net of federal income tax benefit 4,579 3,781 3,328 Income tax (tax benefit) attributable to foreign income (122 ) 330 191 Other non-deductible items, net (1,277 ) (563 ) (409 ) Change in valuation allowance 466 864 358 Provision for income taxes $ 31,044 $ 26,962 $ 22,745 The following is a summary of the components of the net deferred tax assets and liabilities recognized in the accompanying consolidated balance sheets (in thousands): December 31, 2021 2020 Deferred tax assets: Inventories $ 12,181 $ 12,773 Allowance for customer returns 14,185 13,804 Postretirement benefits 33 42 Allowance for expected credit losses 1,450 1,412 Accrued salaries and benefits 15,585 12,984 Tax credit and NOL carryforwards 5,702 1,451 Accrued asbestos liabilities 15,463 15,372 Other 190 170 64,789 58,008 Valuation allowance (2,087 ) (1,621 ) Total deferred tax assets 62,702 56,387 Deferred tax liabilities: Intangible assets acquired, net of amortization 13,450 — Depreciation 7,589 7,710 Other 5,537 3,907 Total deferred tax liabilities 26,576 11,617 Net deferred tax assets $ 36,126 $ 44,770 In assessing the realizability of the deferred tax assets, we consider whether it is more likely than not that some portion or the entire deferred tax asset will be realized. Ultimately, the realization of the deferred tax asset is dependent upon the generation of sufficient taxable income in those periods in which temporary differences become deductible and/or net operating loss carryforwards can be utilized. We consider the level of historical taxable income, scheduled reversal of temporary differences, carryback and carryforward periods, tax planning strategies and projected future taxable income in determining whether a valuation allowance is warranted. We also consider cumulative losses in recent years as well as the impact of one-time events in assessing our pre-tax earnings. Assumptions regarding future taxable income require significant judgment. Our assumptions are consistent with estimates and plans used to manage our business. The valuation allowance of $2.1 million as of December 31, 2021 is intended to provide for uncertainty regarding the ultimate realization of our U.S. foreign tax credit carryovers and foreign net operating loss carryovers. Based on these considerations, we believe it is more likely than not that we would realize the benefit of the net deferred tax asset of $36.1 million as of December 31, 2021, which is net of the remaining valuation allowance. At December 31, 2021, we have foreign tax credit carryforwards of approximately $1.9 million that will expire in varying amounts by 2030 As related to the taxation of our foreign subsidiaries, we aggregate our foreign earnings and profits, and utilize allowable deductions and available foreign tax credits in computing our U.S. tax. Notwithstanding the U.S. taxation of these amounts, we intend to continue to invest most or all of these earnings indefinitely outside of the U.S., and do not expect to incur any significant additional taxes related to such amounts. In accordance with generally accepted accounting practices, we recognize in our financial statements only those tax positions that meet the more-likely-than-not recognition threshold. We establish tax reserves for uncertain tax positions that do not meet this threshold. During the years ended December 31, 2021, 2020 and 2019, we did t establish a liability for uncertain tax positions. We are subject to taxation in the U.S. and various state, local and foreign jurisdictions. As of December 31, 2021, the Company is no longer subject to U.S. Federal tax examinations for years before 2018. We remain subject to examination by state and local tax authorities for tax years 2017 through 2020 2017 2016 2017 2017 2016 2015 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 18. Earnings Per Share We present two calculations of earnings per common share. “Basic” earnings per common share equals net earnings attributable to SMP divided by weighted average common shares outstanding during the period. “Diluted” earnings per common share equals net earnings attributable to SMP divided by the sum of weighted average common shares outstanding during the period plus potentially dilutive common shares. Potentially dilutive common shares that are anti-dilutive are excluded from net earnings per common share. The following are reconciliations of the net earnings attributable to SMP and the shares used in calculating basic and dilutive net earnings per common share attributable to SMP (in thousands, except per share data): Year Ended December 31, 2021 2020 2019 Net Earnings Attributable to SMP - Earnings from continuing operations $ 99,353 $ 80,417 $ 69,051 Loss from discontinued operations (8,467 ) (23,024 ) (11,134 ) Net earnings attributable to SMP $ 90,886 $ 57,393 $ 57,917 Basic Net Earnings Per Common Share Attributable to SMP - Earnings from continuing operations per common share $ 4.49 $ 3.59 $ 3.09 Loss from discontinued operations per common share (0.39 ) (1.02 ) (0.50 ) Net earnings per common share attributable to SMP $ 4.10 $ 2.57 $ 2.59 Weighted average common shares outstanding 22,147 22,374 22,378 Diluted Net Earnings Per Common Share Attributable to SMP - Earnings from continuing operations per common share $ 4.39 $ 3.52 $ 3.03 Loss from discontinued operations per common share (0.37 ) (1.01 ) (0.49 ) Net earnings per common share attributable to SMP $ 4.02 $ 2.51 $ 2.54 Weighted average common shares outstanding 22,147 22,374 22,378 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock and performance-based stock 469 452 440 Weighted average common shares outstanding – Diluted 22,616 22,826 22,818 The shares listed below were not included in the computation of diluted net earnings per common share attributable to SMP because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands): 2021 2020 2019 Restricted and performance shares 269 268 255 |
Industry Segment and Geographic
Industry Segment and Geographic Data | 12 Months Ended |
Dec. 31, 2021 | |
Industry Segment and Geographic Data [Abstract] | |
Industry Segment and Geographic Data | 19. Industry Segment and Geographic Data We have two major reportable operating segments, each of which focuses on a specific line of automotive parts in the automotive aftermarket with a complementary focus on the heavy duty, industrial equipment and original equipment service markets. 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 accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1). The following tables contain financial information for each reportable segment (in thousands): Year Ended December 31, 2021 2020 2019 Net sales (a): Engine Management $ 937,936 $ 835,685 $ 849,161 Temperature Control 348,423 281,954 278,355 Other 12,457 10,949 10,397 Total net sales $ 1,298,816 $ 1,128,588 $ 1,137,913 Intersegment sales (a) Engine Management $ 23,599 $ 15,952 $ 19,569 Temperature Control 9,024 6,162 6,545 Other (32,623 ) (22,114 ) (26,114 ) Total intersegment sales $ — $ — $ — Depreciation and Amortization: Engine Management $ 21,881 $ 20,417 $ 19,463 Temperature Control 3,626 4,035 4,568 Other 1,736 1,871 1,778 Total depreciation and amortization $ 27,243 $ 26,323 $ 25,809 Operating income (loss) Engine Management $ 117,367 $ 111,217 $ 103,808 Temperature Control 36,997 21,296 13,667 Other (25,365 ) (23,618 ) (22,980 ) Total operating income $ 128,999 $ 108,895 $ 94,495 Investment in unconsolidated affiliates: Engine Management $ 2,729 $ 2,428 $ 2,243 Temperature Control 41,358 38,079 36,615 Other — — — Total investment in unconsolidated affiliates $ 44,087 $ 40,507 $ 38,858 Capital expenditures Engine Management $ 21,922 $ 13,496 $ 12,593 Temperature Control 2,586 1,988 2,273 Other 1,367 2,336 1,319 Total capital expenditures $ 25,875 $ 17,820 $ 16,185 Total assets Engine Management $ 845,767 $ 618,210 $ 594,953 Temperature Control 257,114 230,111 216,591 Other 95,080 108,219 92,310 Total assets $ 1,197,961 $ 956,540 $ 903,854 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments, as well as items pertaining to our Canadian business unit that does not meet the criteria of a reportable operating segment and our corporate headquarters function. Reconciliation of segment operating income to net earnings: Year Ended December 31, 2021 2020 2019 (In thousands) Operating income $ 128,999 $ 108,895 $ 94,495 Other non-operating income, net 3,494 812 2,587 Interest expense 2,028 2,328 5,286 Earnings from continuing operations before income taxes 130,465 107,379 91,796 Provision for income taxes 31,044 26,962 22,745 Earnings from continuing operations 99,421 80,417 69,051 Discontinued operations, net of tax (8,467 ) (23,024 ) (11,134 ) Net earnings $ 90,954 $ 57,393 $ 57,917 December 31, 2021 2020 2019 Long-lived assets (a) (In thousands) United States $ 315,983 $ 241,053 $ 253,384 Asia 80,175 40,621 38,942 Europe 37,892 16,504 17,004 Mexico 12,119 10,586 12,036 Canada 4,461 4,470 4,659 Total long-lived assets $ 450,630 $ 313,234 $ 326,025 (a) Long-lived assets are attributed to countries based upon the location of the assets. Our three largest individual customers accounted for approximately 57% of our consolidated net sales in 2021. The loss of one or more of these customers or, a significant reduction in purchases of our products from any one of them, could have a materially adverse impact on our business, financial condition and results of operations. For the disaggregation of our net sales from customers by geographic area, major product group and major sales channels for each of our segments, see Note 20, “Net Sales.” |
Net Sales
Net Sales | 12 Months Ended |
Dec. 31, 2021 | |
Net Sales [Abstract] | |
Net Sales | 20. Net Sales Disaggregation of Net Sales We disaggregate our net sales from 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 years ended December 31, 2021, 2020 and 2019 (in thousands): Year Ended December 31, 2021 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 804,398 $ 329,980 $ — $ 1,134,378 Canada 33,590 16,513 12,457 62,560 Asia 40,668 348 — 41,016 Mexico 25,288 358 — 25,646 Europe 27,293 390 — 27,683 Other foreign 6,699 834 — 7,533 Total $ 937,936 $ 348,423 $ 12,457 $ 1,298,816 Major Product Group: Ignition, emission control, fuel and safety related system products $ 786,514 $ — $ 8,956 $ 795,470 Wire and cable 151,422 — (275 ) 151,147 Compressors — 206,697 1,434 208,131 Other climate control parts — 141,726 2,342 144,068 Total $ 937,936 $ 348,423 $ 12,457 $ 1,298,816 Major Sales Channel: Aftermarket $ 692,895 $ 317,427 $ 12,457 $ 1,022,779 OE/OES 218,338 28,922 — 247,260 Export 26,703 2,074 — 28,777 Total $ 937,936 $ 348,423 $ 12,457 $ 1,298,816 Year Ended December 31, 2020 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 738,521 $ 268,680 $ — $ 1,007,201 Canada 25,842 11,679 10,949 48,470 Asia 35,079 165 — 35,244 Mexico 19,336 271 — 19,607 Europe 12,255 351 — 12,606 Other foreign 4,652 808 — 5,460 Total $ 835,685 $ 281,954 $ 10,949 $ 1,128,588 Major Product Group: Ignition, emission control, fuel and safety related system products $ 691,722 $ — $ 8,172 $ 699,894 Wire and cable 143,963 — 159 144,122 Compressors — 163,071 812 163,883 Other climate control parts — 118,883 1,806 120,689 Total $ 835,685 $ 281,954 $ 10,949 $ 1,128,588 Major Sales Channel: Aftermarket $ 674,744 $ 255,716 $ 10,949 $ 941,409 OE/OES 142,072 25,070 — 167,142 Export 18,869 1,168 — 20,037 Total $ 835,685 $ 281,954 $ 10,949 $ 1,128,588 Year Ended December 31, 2019 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 760,134 $ 263,769 $ — $ 1,023,903 Canada 27,439 12,322 10,397 50,158 Asia 24,838 130 — 24,968 Mexico 19,330 705 — 20,035 Europe 13,341 534 — 13,875 Other foreign 4,079 895 — 4,974 Total $ 849,161 $ 278,355 $ 10,397 $ 1,137,913 Major Product Group: Ignition, emission control, fuel and safety related system products $ 705,994 $ — $ 6,381 $ 712,375 Wire and cable 143,167 — 477 143,644 Compressors — 160,485 1,338 161,823 Other climate control parts — 117,870 2,201 120,071 Total $ 849,161 $ 278,355 $ 10,397 $ 1,137,913 Major Sales Channel: Aftermarket $ 697,722 $ 248,420 $ 10,397 $ 956,539 OE/OES 129,815 27,915 — 157,730 Export 21,624 2,020 — 23,644 Total $ 849,161 $ 278,355 $ 10,397 $ 1,137,913 (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 year ended December 31, 2021 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 parts in the automotive aftermarket 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 parts in the automotive aftermarket 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 | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 21. Commitments and Contingencies Total rent expense for the three years ended December 31, 2021 was as follows (in thousands): Total Real Estate Other 2021 $ 12,065 $ 9,500 $ 2,565 2020 11,669 8,290 3,379 2019 11,382 7,909 3,473 (1) In cludes expenses of approximately $2 million and $ million for the years ended December 31, 2021 and 2020, 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 no For our operating lease minimal rental payments that we are obligated to make, see Note 7, “Leases.” Warranties We generally warrant our products against certain manufacturing and other defects. These product warranties are provided for specific periods of time depending on the nature of the product. As of December 31, 2021 and 2020, we have accrued $17.5 million and $17.7 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. Warranty expense for each of the years 2021, 2020 and 2019 were The following table provides the changes in our product warranties: December 31, 2021 2020 (In thousands) Balance, beginning of period $ 17,663 $ 17,175 Liabilities accrued for current year sales 91,908 87,116 Settlements of warranty claims (92,108 ) (86,628 ) Balance, end of period $ 17,463 $ 17,663 Letters of Credit At December 31, 2021, we had outstanding letters of credit with certain vendors aggregating approximately $2.6 million. These letters of credit are being maintained as security for reimbursements to insurance companies and as security to the landlord of our administrative offices in Long Island City, New York. The contract amount of the letters of credit is a reasonable estimate of their value as the value for each is fixed over the life of the commitment. Change of Control Arrangements We have a change in control arrangement with one key officer. In the event of a change of control (as defined in the agreement), the executive will receive severance payments and certain other benefits as provided in his agreement. Asbestos I n 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 December 31, 2021, Since inception in September 2001 through December 31, 2021, the amounts paid for settled claims and awards of asbestos-related damages, including interest, were approximately 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; (4) an analysis of our settlements and awards of asbestos-related damages to date; and (5) an analysis of closed claims with pay ratios and lag patterns in order to develop average future 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 quarter of each year, an actuarial study was performed as of . The results of the 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 $ to $ for the period through . Based upon the results of the actuarial study, in we increased our asbestos liability to $ , the low end of the range, and recorded an incremental pre-tax provision of $ 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 August 31, 2021 study, to range from $ to $ for the period through . Total operating cash outflows related to discontinued operations, which include settlements, awards of asbestos-related damages and legal costs, net of taxes, were $ , $ and $ for the years ended and , 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 . We may at any time determine that settling any of these matters is in our best interests, which settlement may include substantial payments. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES Schedule II ‑ Years ended December 31, 2021, 2020 and 2019 Additions Description Balance at beginning of year Charged to costs and expenses Other Deductions Balance at end of year Year ended December 31, 2021 : Allowance for expected credit losses $ 4,406,000 $ 450,000 $ — $ 41,000 $ 4,815,000 Allowance for discounts 1,416,000 13,827,000 — 13,888,000 1,355,000 $ 5,822,000 $ 14,277,000 $ — $ 13,929,000 $ 6,170,000 Allowance for sales returns $ 40,982,000 $ 129,964,000 $ — $ 128,534,000 $ 42,412,000 Year ended December 31, 2020 : Allowance for expected credit losses $ 4,244,000 $ 392,000 $ — $ 230,000 $ 4,406,000 Allowance for discounts 968,000 11,488,000 — 11,040,000 1,416,000 $ 5,212,000 $ 11,880,000 $ — $ 11,270,000 $ 5,822,000 Allowance for sales returns $ 35,240,000 $ 135,448,000 $ — $ 129,706,000 $ 40,982,000 Year ended December 31, 2019 : Allowance for expected credit losses $ 4,488,000 $ (295,000 ) $ — $ (51,000 ) $ 4,244,000 Allowance for discounts 1,199,000 10,660,000 — 10,891,000 968,000 $ 5,687,000 $ 10,365,000 $ — $ 10,840,000 $ 5,212,000 Allowance for sales returns $ 33,417,000 $ 136,777,000 $ — $ 134,954,000 $ 35,240,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Standard Motor Products, Inc. and subsidiaries (referred to hereinafter in these notes to the consolidated financial statements as “we,” “us,” “our,” “SMP,” or the “Company”) is a leading automotive parts manufacturer and distributor of engine management and temperature control systems of motor vehicles in the automotive aftermarket industry with a complementary focus on the heavy duty, industrial equipment and original equipment service markets. The 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. In instances where we have more than a 50% equity ownership and the minority shareholder does not maintain substantive participating rights, our consolidated financial statements include the accounts of the company on a consolidated basis with its net income and equity reported at amounts attributable to both our equity position and that of the noncontrolling interest. 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 |
Use of Estimates | Use of Estimates The preparation of consolidated 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 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, if any, of the COVID 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. |
Reclassification | Reclassification Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2021 presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. |
Allowance for Expected Credit Losses and Cash Discounts | Allowance for Expected Credit Losses and Cash Discounts We do not generally require collateral for our trade accounts receivable. Accounts receivable have been reduced by an allowance for amounts that may become uncollectible in the future. These allowances are established based on a combination of write-off history, supportable forecasts, aging analysis, and specific account evaluations. When a receivable balance is known to be uncollectible, it is written off against the allowance for expected credit losses. Cash discounts are provided based on an overall average experience rate applied to qualifying accounts receivable balances. |
Inventories | Inventories Inventories are valued at the lower of cost and net realizable value. Cost is determined on the first-in first-out basis. Where appropriate, standard cost systems are utilized for purposes of determining cost; the standards are adjusted as necessary to ensure they approximate actual costs. Estimates of lower of cost and net realizable value of inventory are determined by comparing the actual cost of the product to the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation of the inventory. We also evaluate inventories on a regular basis to identify inventory on hand that may be obsolete or in excess of current and future projected market demand. For inventory deemed to be obsolete, we provide a reserve on the full value of the inventory. Inventory that is in excess of current and projected use is reduced by an allowance to a level that approximates our estimate of future demand. Future projected demand requires management judgment and is based upon (a) our review of historical trends and (b) our estimate of projected customer specific buying patterns and trends in the industry and markets in which we do business. Using rolling twelve month historical information, we estimate future demand on a continuous basis. The historical volatility of such estimates has been minimal. We maintain provisions for inventory reserves of $46.2 million and $49.4 million as of December 31, 2021 and 2020, respectively We utilize cores (used parts) in our remanufacturing processes for air conditioning compressors, diesel injectors, and diesel pumps. The production of air conditioning compressors, diesel injectors, and diesel pumps involves the rebuilding of used cores, which we acquire either in outright purchases from used parts brokers, or from returns pursuant to an exchange program with customers. Under such exchange programs, at the time of sale of air conditioning compressors, diesel injectors, and diesel pumps, we estimate the core expected to be returned from the customer and record the estimated return as unreturned customer inventory. In addition, many of our customers can return inventory to us based upon customer warranty and overstock arrangements within customer specific limits. At the time products are sold, we accrue a liability for product warranties and overstock returns and record as unreturned customer inventory our estimate of anticipated customer returns. Estimates are based upon historical information on the nature, frequency and probability of the customer return. Unreturned core, warranty and overstock customer inventory is recorded at standard cost. Revision to these estimates is made when necessary, based upon changes in these factors. We regularly study trends of such claims. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at historical cost and are depreciated using the straight-line method of depreciation over the estimated useful lives as follows: Estimated Life Buildings 25 to 33-1/2 Building improvements 10 to 25 years Machinery and equipment 5 to years Tools, dies and auxiliary equipment 3 to years Furniture and fixtures 3 to years Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. Costs related to maintenance and repairs which do not prolong the assets useful lives are expensed as incurred. We assess our property, plant and equipment to be held and used for impairment when indicators are present that the carrying value may not be recoverable. |
Leases | Leases We determine if an arrangement is a lease at inception. For operating leases, we include and report operating lease right-of-use (“ROU”) assets, sundry payables and accrued expenses, and noncurrent operating lease liabilities on our consolidated balance sheet for leases with a term longer than twelve months. Finance leases are reported on our consolidated balance sheets in property, plant and equipment, current portion of other debt, and long-term debt. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the total lease payments over the lease term. Our ROU assets represent the right to use an underlying leased asset over the existing lease term, and the corresponding lease liabilities represent our obligation to make lease payments arising from the lease agreement. As most of our leases do not provide for an implicit rate, we use our secured incremental borrowing rate based on the information available when determining the present value of our lease payments. Our lease terms may include options to terminate, or extend, our lease when it is reasonably certain that we will execute the option. Lease agreements may contain lease and non-lease components, which are generally accounted for separately. Operating lease expense is recognized on a straight-line basis over the lease term. |
Valuation of Long-Lived and Intangible Assets and Goodwill | Valuation of Long-Lived and Intangible Assets and Goodwill At acquisition, we estimate and record the fair value of purchased intangible assets, which primarily consist of customer relationships, trademarks and trade names, patents, developed technology and intellectual property, and non-compete agreements. Intangible assets acquired through business combinations are subject to potential adjustments within the measurement period, which is up to one year from the acquisition date. Valuing intangible assets requires the use of significant estimates and assumptions. As related to valuing customer relationships, significant estimates and assumptions used include but are not limited to: (1) forecasted revenues attributable to existing customers; (2) forecasted earnings before interest and taxes (“EBIT”) margins; (3) customer attrition rates; and (4) the discount rate. Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill and certain other intangible assets having indefinite lives are not amortized to earnings, but instead are subject to periodic testing for impairment. Intangible assets determined to have definite lives are amortized over their remaining useful lives. We believe that the fair value of acquired identifiable net assets, including intangible assets, are based upon reasonable estimates and assumptions. We assess the impairment of long‑lived assets, identifiable intangibles assets and goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. With respect to goodwill and identifiable intangible assets having indefinite lives, we test for impairment on an annual basis or in interim periods if an event occurs or circumstances change that may indicate the fair value is below its carrying amount. Factors we consider important, which could trigger an impairment review, include the following: (a) significant underperformance relative to expected historical or projected future operating results; (b) significant changes in the manner of our use of the acquired assets or the strategy for our overall business; and (c) significant negative industry or economic trends. We review the fair values using the discounted cash flows method and market multiples. When performing our evaluation of goodwill for impairment, if we conclude qualitatively that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then a quantitative impairment test would not be required. If we are unable to reach this conclusion, then we would perform a goodwill quantitative impairment test. In performing the quantitative test, the fair value of the reporting unit is compared to its carrying amount. A charge for impairment is recognized by the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Identifiable intangible assets having indefinite lives are reviewed for impairment on an annual basis using a methodology similar with that used to evaluate goodwill. Intangible assets having definite lives and other long-lived assets are reviewed for impairment whenever events such as product discontinuance, plant closures, product dispositions or other changes in circumstances indicate that the carrying amount may not be recoverable. In reviewing intangible assets having definite lives and other long-lived assets for impairment, we compare the carrying value of such assets to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets fair value and their carrying value. There are inherent assumptions and estimates used in developing future cash flows requiring our judgment in applying these assumptions and estimates to the analysis of identifiable intangibles and long‑lived asset impairment including projecting revenues, interest rates, tax rates and the cost of capital. Many of the factors used in assessing fair value are outside our control and it is reasonably likely that assumptions and estimates will change in future periods. These changes can result in future impairments. In the event our planning assumptions were modified resulting in impairment to our assets, we would be required to include an expense in our statement of operations, which could materially impact our business, financial condition and results of operations. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of our foreign operations are translated into U.S. dollars at year-end exchange rates. Income statement accounts are translated using the average exchange rates prevailing during the year. The resulting translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) and remains there until the underlying foreign operation is liquidated or substantially disposed of. Foreign currency transaction gains or losses are recorded in the statement of operations under the caption “other non-operating income (expense), net.” |
Revenue Recognition | Revenue Recognition We derive our revenue primarily from sales of replacement parts for motor vehicles from both our Engine Management and Temperature Control Segments. We recognize revenues when our performance obligation has been satisfied and the control of products has been transferred to a customer which typically occurs upon shipment. Revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of goods or providing services. The amount of consideration we receive and revenue we recognize depends on the marketing incentives, product warranty and overstock returns we offer to our customers. For certain of our sales of remanufactured products, we also charge our customers a deposit for the return of a used core component which we can use in our future remanufacturing activities. Such deposit is not recognized as revenue at the time of the sale but rather carried as a core liability. At the same time, we estimate the core expected to be returned from the customer and record the estimated return as unreturned customer inventory. The liability is extinguished when a core is actually returned to us, or at period end when we estimate and recognize revenue for the core deposits not expected to be returned. We estimate and record provisions for cash discounts, quantity rebates, sales returns and warranties in the period the sale is recorded, based upon our prior experience and current trends. Significant management judgments and estimates must be made and used in estimating sales returns and allowances relating to revenue recognized in any accounting period. |
Product Warranty and Overstock Returns | Product Warranty and Overstock Returns Many of our products carry a warranty ranging from a -day limited warranty to a lifetime limited warranty, which generally covers defects in materials or workmanship and failure to meet industry published specifications and/or the result of installation error. In addition to warranty returns, we also permit our customers to return new, undamaged products to us within customer-specific limits (which are generally limited to a specified of their annual purchases from us) in the event that they have overstocked their inventories. At the time products are sold, we accrue a liability for product warranties and overstock returns as a of sales based upon estimates established using historical information on the nature, frequency and average cost of the claim and the probability of the customer return. At the same time, we record an estimate of anticipated customer returns as unreturned customer inventory. Significant judgments and estimates must be made and used in connection with establishing the sales returns and other allowances in any accounting period. Revision to these estimates is made when necessary, based upon changes in these factors. We regularly study trends of such claims. |
New Customer Acquisition Costs | New Customer Acquisition Costs New customer acquisition costs refer to arrangements pursuant to which we incur change-over costs to induce a new customer to switch from a competitor’s brand. In addition, change-over costs include the costs related to removing the new customer’s inventory and replacing it with our inventory commonly referred to as a stock lift. New customer acquisition costs are recorded as a reduction to revenue when incurred. |
Selling, General and Administration Expenses | Selling, General and Administration Expenses Selling, general and administration expenses include shipping costs and advertising, which are expensed as incurred. Shipping and handling charges, as well as freight to customers, are included in distribution expenses as part of selling, general and administration expenses. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs represent costs incurred in conjunction with our debt financing activities. Deferred financing costs related to our revolving credit facility are capitalized and amortized over the life of the related financing arrangement. If the debt is retired early, the related unamortized deferred financing costs are written off in the period the debt is retired and are recorded in the statement of operations under the caption other non-operating income (expense), net. |
Accounting for Income Taxes | Accounting for Income Taxes Income taxes are calculated using the asset and liability method. Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities, as measured by the current enacted tax rates. We maintain valuation allowances when it is more likely than not that all or a portion of a deferred asset will not be realized. In determining whether a valuation allowance is warranted, we consider all positive and negative evidence and all sources of taxable income such as prior earnings history, expected future earnings, carryback and carryforward periods and tax strategies to estimate if sufficient future taxable income will be generated to realize the deferred tax asset. The assessment of the adequacy of our valuation allowance is based on our estimates of taxable income by jurisdiction in which we operate and the period over which our deferred tax assets will be recoverable. In the event that actual results differ from these estimates, or we adjust these estimates in future periods for current trends or expected changes in our estimating assumptions, we may need to modify the level of valuation allowance which could materially impact our business, financial condition and results of operations. The valuation allowance of as of December 31, 2021 is intended to provide for the uncertainty regarding the ultimate realization of our U.S. foreign tax credit carryovers and foreign net operating loss carryovers. Based on these considerations, we believe it is more likely than not that we will realize the benefit of the net deferred tax asset of as of December 31, 2021 which is net of the remaining valuation allowance. Tax benefits are recognized for an uncertain tax position when, in management’s judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, the tax benefit is measured as the largest amount that is judged to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances and when new information becomes available. Such adjustments are recognized entirely in the period in which they are identified. During the years ended December 31, 2021, 2020 and 2019 we did not establish a liability for uncertain tax positions. |
Environmental Reserves | Environmental Reserves We are subject to various U.S. Federal and state and local environmental laws and regulations and are involved in certain environmental remediation efforts. We estimate and accrue our liabilities resulting from such matters based upon a variety of factors including the assessments of environmental engineers and consultants who provide estimates of potential liabilities and remediation costs. Such estimates are not discounted to reflect the time value of money due to the uncertainty in estimating the timing of the expenditures, which may extend over several years. Potential recoveries from insurers or other third parties of environmental remediation liabilities are recognized independently from the recorded liability, and any asset related to the recovery will be recognized only when the realization of the claim for recovery is deemed probable. |
Asbestos Litigation | Asbestos Litigation 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; (4) an analysis of our settlements and awards of asbestos-related damages to date; and (5) an analysis of closed claims with pay ratios and lag patterns in order to develop average future 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. Future legal costs are expensed as incurred and reported in earnings (loss) from discontinued operations in the accompanying statement of operations. We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future |
Loss Contingencies | Loss Contingencies We have loss contingencies, for such matters as legal claims and legal proceedings. Establishing loss reserves for these matters requires estimates, judgment of risk exposure and ultimate liability. We record provisions when the liability is considered probable and reasonably estimable. Significant judgment is required for both the determination of probability and the determination as to whether an exposure can be reasonably estimated. We maintain an ongoing monitoring and identification process to assess how the activities are progressing against the accrued estimated costs. As additional information becomes available, we reassess our potential liability related to these matters. Adjustments to the liabilities are recorded in the statement of operations in the period when additional information becomes available. Such revisions of the potential liabilities could have a material adverse effect on our business, financial condition or results of operations. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash investments and accounts receivable. We place our cash investments with high quality financial institutions and limit the amount of credit exposure to any one institution. Although we are directly affected by developments in the vehicle parts industry, management does not believe significant credit risk exists. With respect to accounts receivable, such receivables are primarily from warehouse distributors and major retailers in the automotive aftermarket industry located in the U.S. We perform ongoing credit evaluations of our customers’ financial conditions. A significant portion of our net sales are concentrated from our largest individual customers. For further information on net sales to our largest customers and our concentration our customer risk, see Note , “Industry Segment and Geographic Data.” |
Foreign Cash Balances | Foreign Cash Balances Substantially all of the cash and cash equivalents, including foreign cash balances, at December 31, 2021 and 2020 were uninsured. Foreign cash balances at December 31, 2021 and 2020 were and , respectively. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Standards that were adopted Standard Description Date of adoption Effects on the financial statements or other significant matters ASU 2019-12 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 740 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 1, 2021 The adoption of the technical clarifications in the standard did not materially impact our accounting for income taxes, our consolidated financial statements and related disclosures. Standards that are not yet adopted as of December 31, 2021 The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted as of December 31, 2021 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 2020-04 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 12, 2020 through December 31, 2022 The new standard may be applied as of the beginning of an interim period that includes March 12, 2020 through December 31, 2022 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Estimated Useful Lives of Property, Plant and Equipment | Property, plant and equipment are recorded at historical cost and are depreciated using the straight-line method of depreciation over the estimated useful lives as follows: Estimated Life Buildings 25 to 33-1/2 Building improvements 10 to 25 years Machinery and equipment 5 to years Tools, dies and auxiliary equipment 3 to years Furniture and fixtures 3 to years |
Business Acquisitions and Inv_2
Business Acquisitions and Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stabil [Member] | |
Business Acquisition [Line Items] | |
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, subject to final agreement of post-closing adjustments, which we do anticipate will be significant (in thousands): Purchase price $ 16,290 Assets acquired and liabilities assumed: Receivables $ 2,852 Inventory 5,126 Other current assets (1) 1,628 Property, plant and equipment, net 1,810 Operating lease right-of-use assets 4,971 Intangible assets 5,471 Goodwill 4,827 Current liabilities (4,190 ) Noncurrent operating lease liabilities (4,454 ) Deferred income taxes (1,751 ) Net assets acquired $ 16,290 (1) The other current assets balance includes $0.9 million of cash acquired. |
Trombetta [Member] | |
Business Acquisition [Line Items] | |
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, subject to finalization of amounts related to deferred income taxes, which we do not anticipate will be significant (in thousands): Purchase price $ 111,711 Assets acquired and liabilities assumed: Receivables $ 9,173 Inventory 12,460 Other current assets (1) 5,193 Property, plant and equipment, net 4,939 Operating lease right-of-use assets 3,847 Intangible assets 54,700 Goodwill 49,250 Current liabilities (5,072 ) Noncurrent operating lease liabilities (3,065 ) Deferred income taxes (8,210 ) Subtotal 123,215 Fair value of acquired noncontrolling interest (11,504 ) Net assets acquired $ 111,711 (1) The other current assets balance includes $4.6 million of cash acquired. |
Soot Sensor [Member] | |
Business Acquisition [Line Items] | |
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 $ 2,924 Assets acquired and liabilities assumed: Inventory $ 1,032 Machinery and equipment, net 1,137 Intangible assets 755 Net assets acquired $ 2,924 |
Restructuring and Integration_2
Restructuring and Integration Expense (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Integration Expense [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 and for the years ended December 31, 2021 and 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 (1) — 464 464 Cash payments (157 ) (214 ) (371 ) Reclassification of environmental liability (1) — (250 ) (250 ) Exit activity liability at December 31 2020 $ 179 $ — $ 179 Restructuring and integration costs: Amounts provided for during 2021 — 392 392 Cash payments (100 ) (392 ) (492 ) Exit activity liability at December 31 2021 $ 79 $ — $ 79 (1) Included in restructuring and integration costs in 2020 is a $0.3 million increase in environmental cleanup costs related to ongoing monitoring and remediation in connection with the prior closure of our manufacturing operations at our Long Island City, New York location. The environmental liability has been reclassed to accrued liabilities as of December 31, 2020. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories [Abstract] | |
Inventories | December 31, 2021 December 31, 2020 (In thousands) Finished goods $ 296,739 $ 225,523 Work-in-process 16,010 10,711 Raw materials 156,006 109,268 Subtotal 468,755 345,502 Unreturned customer inventories 22,268 19,632 Total inventories $ 491,023 $ 365,134 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | December 31, 2021 2020 (In thousands) Land, buildings and improvements $ 40,882 $ 38,833 Machinery and equipment 159,967 148,578 Tools, dies and auxiliary equipment 63,944 60,102 Furniture and fixtures 30,688 30,347 Leasehold improvements 14,081 11,948 Construction-in-progress 21,012 13,691 Total property, plant and equipment 330,574 303,499 Less accumulated depreciation 227,788 214,394 Total property, plant and equipment, net $ 102,786 $ 89,105 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Quantitative Disclosures Related to Operating Leases | The following tables provide quantitative disclosures related to our operating leases and includes all operating leases acquired in the Stabil and Trombetta acquisitions from the date of the acquisition : December 31, Balance Sheet Information 2021 2020 Assets Operating lease right-of-use assets $ 40,469 $ 29,958 Liabilities Sundry payables and accrued expenses $ 10,544 $ 8,719 Noncurrent operating lease liabilities 31,206 22,450 Total operating lease liabilities $ 41,750 $ 31,169 Weighted Average Remaining Lease Term Operating leases 5.3 Years 5 Years Weighted Average Discount Rate Operating leases 3 % 3.6 % Year Ended, December 31, Expense and Cash Flow Information 2021 2020 Lease Expense Operating lease expense (a) $ 10,051 $ 9,203 Supplemental Cash Flow Information Cash Paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,985 $ 9,087 Right-of-use assets obtained in exchange for new lease obligations: Operating leases (b) $ 20,975 $ 3,180 (a) Excludes expenses of approximately $2 million and $2.5 million for the years ended December 31, 2021 and 2020, 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. (b) Includes $8.8 million of right-of-use assets obtained in business acquisitions during the year ended December 31, 2021. |
Minimum Lease Payments | At December 31, 2021, we are obligated to make minimum lease payments through 2031, under operating leases, which are as follows (in thousands): 2022 $ 10,707 2023 9,537 2024 7,165 2025 5,860 2026 5,109 Thereafter 6,562 Total lease payments $ 44,940 Less: Interest (3,190 ) Present value of lease liabilities $ 41,750 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Other Intangible Assets [Abstract] | |
Carrying Value of Goodwill by Operating Segment | Changes in the carrying values of goodwill by operating segment during the years ended December 31, 2021 and 2020 are as follows (in thousands): Engine Management Temperature Control Total Balance as of December 31 2019 Goodwill $ 102,020 $ 14,270 $ 116,290 Accumulated impairment losses (38,488 ) — (38,488 ) $ 63,532 $ 14,270 $ 77,802 Activity in 2020 Foreign currency exchange rate change 35 — 35 Balance as of December 31 2020 Goodwill 102,055 14,270 116,325 Accumulated impairment losses (38,488 ) — (38,488 ) $ 63,567 $ 14,270 $ 77,837 Activity in 2021 Acquisition of Trombetta 49,250 — 49,250 Acquisition of Stabil 4,827 — 4,827 Foreign currency exchange rate change (262 ) — (262 ) Balance as of December 31 2021 Goodwill 155,870 14,270 170,140 Accumulated impairment losses (38,488 ) — (38,488 ) $ 117,382 $ 14,270 $ 131,652 |
Acquired Identifiable Intangible Assets | Acquired identifiable intangible assets as of December 31, 2021 and 2020 consist of: December 31, 2021 2020 (In thousands) Customer relationships $ 157,020 $ 111,701 Patents, developed technology and intellectual property 14,123 723 Trademarks and trade names 8,880 6,980 Non-compete agreements 3,280 3,272 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 184,263 123,636 Less accumulated amortization (1) (78,932 ) (70,221 ) Net acquired intangible assets $ 105,331 $ 53,415 (1) Applies to all intangible assets, except for a related trademark/trade name totaling $2.6 million, which has an indefinite useful life and, as such, is not being amortized. |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments in Unconsolidated Affiliates [Abstract] | |
Investments in Unconsolidated Affiliates | December 31, 2021 2020 (In thousands) Foshan GWOYNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. $ 20,692 $ 18,869 Foshan FGD SMP Automotive Compressor Co. Ltd 16,676 15,036 Foshan Che Yijia New Energy Technology Co., Ltd. 3,990 4,174 Orange Electronic Co. Ltd 2,729 2,428 Total $ 44,087 $ 40,507 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Other Assets | December 31, 2021 2020 (In thousands) Deferred compensation $ 23,623 $ 20,775 Deferred financing costs, net 206 431 Other 1,573 617 Total other assets, net $ 25,402 $ 21,823 |
Credit Facilities and Long-Te_2
Credit Facilities and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Summary of Total Debt Outstanding | Total debt outstanding is summarized as follows: December 31, 2021 2020 (In thousands) Revolving credit facilities $ 125,298 $ 10,000 Other (1) 3,138 232 Total debt $ 128,436 $ 10,232 Current maturities of debt $ 128,415 $ 10,135 Long-term debt 21 97 Total debt $ 128,436 $ 10,232 (1) Other includes borrowings under our Polish overdraft facility of Zloty 12.3 million (approximately $3 million) and Zloty 0.4 million (approximately $0.1 million) as of December 31, 2021 and 2020, respectively. |
Scheduled Amortization of Deferred Financing Cost for Future Years | We have deferred financing costs of approximately $0.4 million and $0.7 million as of December 31, 2021 and 2020, respectively. Deferred financing costs as of December 31, 2021 are related to our revolving credit facility. Scheduled amortization for future years, assuming no prepayments of principal is as follows: (In thousands) 2022 225 2023 206 Total amortization $ 431 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation Plans [Abstract] | |
Restricted and Performance-Based Share Activity | Our restricted and performance-based share activity was as follows for the years ended December 31, 2021 and 2020: Shares Weighted Average Grant Date Fair Value per Share Balance at December 31 2019 852,540 $ 35.26 Granted 208,200 38.21 Vested (161,054 ) 39.23 Forfeited (1) (60,000 ) 42.25 Balance at December 31 2020 839,686 $ 34.77 Granted 211,815 38.51 Vested (227,682 ) 36.10 Forfeited (16,800 ) 39.39 Balance at December 31 2021 807,019 $ 34.92 (1) Due to the lack of achievement of performance targets, performance-based shares forfeited in the year ended December 31, 2020 were shares. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits [Abstract] | |
Defined Contribution Plan Matching Obligations | We maintain various defined contribution plans, which include profit sharing, and provide retirement benefits for substantially all of our employees. Matching obligations, in connection with the plans which are funded in cash and typically contributed to the plans in March of the following year, are as follows (in thousands): U.S. Defined Contribution Year ended December 31, 2021 $ 9,763 2020 9,457 2019 9,080 |
Other Non-Operating Income (E_2
Other Non-Operating Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Non-Operating Income (Expense), Net [Abstract] | |
Components of Other Non-Operating Income (Expense) | The components of other non-operating income (expense), net are as follows: Year Ended December 31, 2021 2020 2019 (In thousands) Interest and dividend income $ 49 $ 109 $ 97 Equity income from joint ventures 3,295 820 2,865 Loss on foreign exchange (257 ) (350 ) (502 ) Other non-operating income, net 407 233 127 Total other non-operating income, net $ 3,494 $ 812 $ 2,587 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following (in thousands): Year Ended December 31, 2021 2020 2019 Current: Domestic $ 26,528 $ 30,368 $ 14,632 Foreign 5,851 4,064 3,019 Total current 32,379 34,432 17,651 Deferred: Domestic (1,161 ) (7,418 ) 4,677 Foreign (174 ) (52 ) 417 Total deferred (1,335 ) (7,470 ) 5,094 Total income tax provision $ 31,044 $ 26,962 $ 22,745 |
Effective Income Tax Rate Reconciliation | Reconciliations between taxes at the U.S. Federal income tax rate and taxes at our effective income tax rate on earnings from continuing operations before income taxes are as follows (in thousands): Year Ended December 31, 2021 2020 2019 U.S. Federal income tax rate of 21 $ 27,398 $ 22,550 $ 19,277 Increase (decrease) in tax rate resulting from: State and local income taxes, net of federal income tax benefit 4,579 3,781 3,328 Income tax (tax benefit) attributable to foreign income (122 ) 330 191 Other non-deductible items, net (1,277 ) (563 ) (409 ) Change in valuation allowance 466 864 358 Provision for income taxes $ 31,044 $ 26,962 $ 22,745 |
Components of Net Deferred Tax Assets and Liabilities | The following is a summary of the components of the net deferred tax assets and liabilities recognized in the accompanying consolidated balance sheets (in thousands): December 31, 2021 2020 Deferred tax assets: Inventories $ 12,181 $ 12,773 Allowance for customer returns 14,185 13,804 Postretirement benefits 33 42 Allowance for expected credit losses 1,450 1,412 Accrued salaries and benefits 15,585 12,984 Tax credit and NOL carryforwards 5,702 1,451 Accrued asbestos liabilities 15,463 15,372 Other 190 170 64,789 58,008 Valuation allowance (2,087 ) (1,621 ) Total deferred tax assets 62,702 56,387 Deferred tax liabilities: Intangible assets acquired, net of amortization 13,450 — Depreciation 7,589 7,710 Other 5,537 3,907 Total deferred tax liabilities 26,576 11,617 Net deferred tax assets $ 36,126 $ 44,770 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliations of the Earnings Available to Common Stockholders and the Shares used in Calculating Basic and Dilutive Net Earnings per Common Share | The following are reconciliations of the net earnings attributable to SMP and the shares used in calculating basic and dilutive net earnings per common share attributable to SMP (in thousands, except per share data): Year Ended December 31, 2021 2020 2019 Net Earnings Attributable to SMP - Earnings from continuing operations $ 99,353 $ 80,417 $ 69,051 Loss from discontinued operations (8,467 ) (23,024 ) (11,134 ) Net earnings attributable to SMP $ 90,886 $ 57,393 $ 57,917 Basic Net Earnings Per Common Share Attributable to SMP - Earnings from continuing operations per common share $ 4.49 $ 3.59 $ 3.09 Loss from discontinued operations per common share (0.39 ) (1.02 ) (0.50 ) Net earnings per common share attributable to SMP $ 4.10 $ 2.57 $ 2.59 Weighted average common shares outstanding 22,147 22,374 22,378 Diluted Net Earnings Per Common Share Attributable to SMP - Earnings from continuing operations per common share $ 4.39 $ 3.52 $ 3.03 Loss from discontinued operations per common share (0.37 ) (1.01 ) (0.49 ) Net earnings per common share attributable to SMP $ 4.02 $ 2.51 $ 2.54 Weighted average common shares outstanding 22,147 22,374 22,378 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock and performance-based stock 469 452 440 Weighted average common shares outstanding – Diluted 22,616 22,826 22,818 |
Anti-dilutive Securities Excluded from Computation of Earnings per Share | The shares listed below were not included in the computation of diluted net earnings per common share attributable to SMP because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands): 2021 2020 2019 Restricted and performance shares 269 268 255 |
Industry Segment and Geograph_2
Industry Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Industry Segment and Geographic Data [Abstract] | |
Sales and Operating Income by Operating Segments | The accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1). The following tables contain financial information for each reportable segment (in thousands): Year Ended December 31, 2021 2020 2019 Net sales (a): Engine Management $ 937,936 $ 835,685 $ 849,161 Temperature Control 348,423 281,954 278,355 Other 12,457 10,949 10,397 Total net sales $ 1,298,816 $ 1,128,588 $ 1,137,913 Intersegment sales (a) Engine Management $ 23,599 $ 15,952 $ 19,569 Temperature Control 9,024 6,162 6,545 Other (32,623 ) (22,114 ) (26,114 ) Total intersegment sales $ — $ — $ — Depreciation and Amortization: Engine Management $ 21,881 $ 20,417 $ 19,463 Temperature Control 3,626 4,035 4,568 Other 1,736 1,871 1,778 Total depreciation and amortization $ 27,243 $ 26,323 $ 25,809 Operating income (loss) Engine Management $ 117,367 $ 111,217 $ 103,808 Temperature Control 36,997 21,296 13,667 Other (25,365 ) (23,618 ) (22,980 ) Total operating income $ 128,999 $ 108,895 $ 94,495 Investment in unconsolidated affiliates: Engine Management $ 2,729 $ 2,428 $ 2,243 Temperature Control 41,358 38,079 36,615 Other — — — Total investment in unconsolidated affiliates $ 44,087 $ 40,507 $ 38,858 Capital expenditures Engine Management $ 21,922 $ 13,496 $ 12,593 Temperature Control 2,586 1,988 2,273 Other 1,367 2,336 1,319 Total capital expenditures $ 25,875 $ 17,820 $ 16,185 Total assets Engine Management $ 845,767 $ 618,210 $ 594,953 Temperature Control 257,114 230,111 216,591 Other 95,080 108,219 92,310 Total assets $ 1,197,961 $ 956,540 $ 903,854 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Reconciliation of Segment Operating Income to Net Earnings | Reconciliation of segment operating income to net earnings: Year Ended December 31, 2021 2020 2019 (In thousands) Operating income $ 128,999 $ 108,895 $ 94,495 Other non-operating income, net 3,494 812 2,587 Interest expense 2,028 2,328 5,286 Earnings from continuing operations before income taxes 130,465 107,379 91,796 Provision for income taxes 31,044 26,962 22,745 Earnings from continuing operations 99,421 80,417 69,051 Discontinued operations, net of tax (8,467 ) (23,024 ) (11,134 ) Net earnings $ 90,954 $ 57,393 $ 57,917 |
Long-lived Assets by Geographical Areas | December 31, 2021 2020 2019 Long-lived assets (a) (In thousands) United States $ 315,983 $ 241,053 $ 253,384 Asia 80,175 40,621 38,942 Europe 37,892 16,504 17,004 Mexico 12,119 10,586 12,036 Canada 4,461 4,470 4,659 Total long-lived assets $ 450,630 $ 313,234 $ 326,025 (a) Long-lived assets are attributed to countries based upon the location of the assets. |
Net Sales (Tables)
Net Sales (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net Sales [Abstract] | |
Disaggregation of Net Sales | The following tables provide disaggregation of net sales information for the years ended December 31, 2021, 2020 and 2019 (in thousands): Year Ended December 31, 2021 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 804,398 $ 329,980 $ — $ 1,134,378 Canada 33,590 16,513 12,457 62,560 Asia 40,668 348 — 41,016 Mexico 25,288 358 — 25,646 Europe 27,293 390 — 27,683 Other foreign 6,699 834 — 7,533 Total $ 937,936 $ 348,423 $ 12,457 $ 1,298,816 Major Product Group: Ignition, emission control, fuel and safety related system products $ 786,514 $ — $ 8,956 $ 795,470 Wire and cable 151,422 — (275 ) 151,147 Compressors — 206,697 1,434 208,131 Other climate control parts — 141,726 2,342 144,068 Total $ 937,936 $ 348,423 $ 12,457 $ 1,298,816 Major Sales Channel: Aftermarket $ 692,895 $ 317,427 $ 12,457 $ 1,022,779 OE/OES 218,338 28,922 — 247,260 Export 26,703 2,074 — 28,777 Total $ 937,936 $ 348,423 $ 12,457 $ 1,298,816 Year Ended December 31, 2020 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 738,521 $ 268,680 $ — $ 1,007,201 Canada 25,842 11,679 10,949 48,470 Asia 35,079 165 — 35,244 Mexico 19,336 271 — 19,607 Europe 12,255 351 — 12,606 Other foreign 4,652 808 — 5,460 Total $ 835,685 $ 281,954 $ 10,949 $ 1,128,588 Major Product Group: Ignition, emission control, fuel and safety related system products $ 691,722 $ — $ 8,172 $ 699,894 Wire and cable 143,963 — 159 144,122 Compressors — 163,071 812 163,883 Other climate control parts — 118,883 1,806 120,689 Total $ 835,685 $ 281,954 $ 10,949 $ 1,128,588 Major Sales Channel: Aftermarket $ 674,744 $ 255,716 $ 10,949 $ 941,409 OE/OES 142,072 25,070 — 167,142 Export 18,869 1,168 — 20,037 Total $ 835,685 $ 281,954 $ 10,949 $ 1,128,588 Year Ended December 31, 2019 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 760,134 $ 263,769 $ — $ 1,023,903 Canada 27,439 12,322 10,397 50,158 Asia 24,838 130 — 24,968 Mexico 19,330 705 — 20,035 Europe 13,341 534 — 13,875 Other foreign 4,079 895 — 4,974 Total $ 849,161 $ 278,355 $ 10,397 $ 1,137,913 Major Product Group: Ignition, emission control, fuel and safety related system products $ 705,994 $ — $ 6,381 $ 712,375 Wire and cable 143,167 — 477 143,644 Compressors — 160,485 1,338 161,823 Other climate control parts — 117,870 2,201 120,071 Total $ 849,161 $ 278,355 $ 10,397 $ 1,137,913 Major Sales Channel: Aftermarket $ 697,722 $ 248,420 $ 10,397 $ 956,539 OE/OES 129,815 27,915 — 157,730 Export 21,624 2,020 — 23,644 Total $ 849,161 $ 278,355 $ 10,397 $ 1,137,913 (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 year ended December 31, 2021 exceeded third party sales from our Canadian business unit. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies [Abstract] | |
Rent Expense | Total rent expense for the three years ended December 31, 2021 was as follows (in thousands): Total Real Estate Other 2021 $ 12,065 $ 9,500 $ 2,565 2020 11,669 8,290 3,379 2019 11,382 7,909 3,473 (1) In cludes expenses of approximately $2 million and $ million for the years ended December 31, 2021 and 2020, 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 no |
Changes in Product Warranties | The following table provides the changes in our product warranties: December 31, 2021 2020 (In thousands) Balance, beginning of period $ 17,663 $ 17,175 Liabilities accrued for current year sales 91,908 87,116 Settlements of warranty claims (92,108 ) (86,628 ) Balance, end of period $ 17,463 $ 17,663 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies, Principles of Consolidation, Inventories and PPE (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies [Abstract] | ||
Equity ownership in entities included in consolidated financial statements, minimum | 50.00% | |
Inventory reserve | $ 46.2 | $ 49.4 |
Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful life | 25 years | |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful life | 33 years 6 months | |
Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful life | 10 years | |
Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful life | 25 years | |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful life | 5 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful life | 12 years | |
Tools, Dies and Auxiliary Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful life | 3 years | |
Tools, Dies and Auxiliary Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful life | 8 years | |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful life | 3 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Estimated useful life | 12 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies, Product Warranty and Overstock Returns and Accounting for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Product Warranty and Overstock Returns [Abstract] | ||
Product warranty period | 90 days | |
Accounting for Income Taxes [Abstract] | ||
Valuation allowance | $ 2,087 | $ 1,621 |
Net deferred tax asset | $ 36,126 | $ 44,770 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies, Concentrations of Credit Risk and Foreign Cash Balances (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)Customer | Dec. 31, 2020USD ($) | |
Foreign Cash Balances [Abstract] | ||
Foreign cash balance | $ | $ 16.8 | $ 16.4 |
Customer Concentration Risk [Member] | ||
Concentration Risk [Abstract] | ||
Number of largest individual customers | Customer | 3 |
Business Acquisitions and Inv_3
Business Acquisitions and Investments, Acquisition of Capital Stock of Stabil Operative Group GmbH (Details) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021USD ($) | Sep. 30, 2021EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | ||
Assets acquired and liabilities assumed [Abstract] | ||||||
Operating lease right-of-use assets | [1] | $ 8,800 | ||||
Goodwill | 131,652 | $ 77,837 | $ 77,802 | |||
Stabil [Member] | ||||||
Business Combination, Description [Abstract] | ||||||
Percentage of entity acquired | 100.00% | |||||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | ||||||
Purchase Price | $ 16,290 | € 13.7 | ||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Receivables | 2,852 | |||||
Inventory | 5,126 | |||||
Other current assets | [2] | 1,628 | ||||
Property, plant, and equipment, net | 1,810 | |||||
Operating lease right-of-use assets | 4,971 | |||||
Intangible assets | 5,471 | |||||
Goodwill | 4,827 | |||||
Current liabilities | (4,190) | |||||
Noncurrent operating lease liabilities | (4,454) | |||||
Deferred income taxes | (1,751) | |||||
Net assets acquired | 16,290 | |||||
Cash acquired | $ 900 | |||||
Revenues from acquisition date | $ 7,200 | |||||
Stabil [Member] | Customer Relationships [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Estimated useful life of intangible assets | 20 years | |||||
[1] | Includes $8.8 million of right-of-use assets obtained in business acquisitions during the year ended December 31, 2021. | |||||
[2] | The other current assets balance includes $0.9 million of cash acquired. |
Business Acquisitions and Inv_4
Business Acquisitions and Investments, Acquisition of Capital Stock of Trumpet Holdings, Inc. (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | May 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Assets acquired and liabilities assumed [Abstract] | ||||||
Operating lease right-of-use assets | [1] | $ 8,800,000 | $ 8,800,000 | |||
Goodwill | 131,652,000 | 131,652,000 | $ 77,837,000 | $ 77,802,000 | ||
Trombetta [Member] | ||||||
Business Combination, Description [Abstract] | ||||||
Percentage of entity acquired | 100.00% | |||||
Post-closing adjustments | $ (30,000) | |||||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | ||||||
Purchase Price | $ 111,711,000 | |||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Receivables | 9,173,000 | |||||
Inventory | 12,460,000 | |||||
Other current assets | [2] | 5,193,000 | ||||
Property, plant, and equipment, net | 4,939,000 | |||||
Operating lease right-of-use assets | 3,847,000 | |||||
Intangible assets | 54,700,000 | |||||
Goodwill | 49,250,000 | |||||
Current liabilities | (5,072,000) | |||||
Noncurrent operating lease liabilities | (3,065,000) | |||||
Deferred income taxes | (8,210,000) | |||||
Subtotal | 123,215,000 | |||||
Fair value of acquired noncontrolling interest | (11,504,000) | |||||
Net assets acquired | 111,711,000 | |||||
Cash acquired | 4,600,000 | |||||
Revenues from acquisition date | $ 37,800,000 | |||||
Trombetta [Member] | Customer Relationships [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Intangible assets | 39,400,000 | |||||
Estimated useful life of intangible assets | 20 years | |||||
Trombetta [Member] | Developed Technology [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Intangible assets | 13,400,000 | |||||
Estimated useful life of intangible assets | 15 years | |||||
Trombetta [Member] | Trade Names [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Intangible assets | $ 1,900,000 | |||||
Estimated useful life of intangible assets | 10 years | |||||
Trombetta [Member] | Trombetta Asia, Ltd [Member] | ||||||
Business Combination, Description [Abstract] | ||||||
Percentage of entity acquired | 70.00% | |||||
[1] | Includes $8.8 million of right-of-use assets obtained in business acquisitions during the year ended December 31, 2021. | |||||
[2] | The other current assets balance includes $4.6 million of cash acquired. |
Business Acquisitions and Inv_5
Business Acquisitions and Investments, Acquisition of Particulate Matter Sensor Business of Stoneridge, Inc. (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | |
Soot Sensor [Member] | |||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||
Purchase Price | $ 2,924 | ||
Assets acquired and liabilities assumed [Abstract] | |||
Inventory | 1,032 | ||
Machinery and equipment, net | 1,137 | ||
Intangible assets | 755 | ||
Net assets acquired | 2,924 | ||
Business Combination, Description [Abstract] | |||
Revenues from acquisition date | $ 9,300 | ||
Soot Sensor [Member] | Customer Relationships [Member] | |||
Assets acquired and liabilities assumed [Abstract] | |||
Intangible assets | 800 | ||
Business Combination, Description [Abstract] | |||
Estimated useful life of intangible assets | 10 years | ||
Lexington, Ohio Facility [Member] | |||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||
Purchase Price | $ 2,100 | ||
Tallinn, Estonia Facility [Member] | |||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||
Purchase Price | $ 800 |
Restructuring and Integration_3
Restructuring and Integration Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | $ 179 | $ 336 | |||
Restructuring and integration costs provided for during the period | 392 | 464 | [1] | $ 2,585 | |
Cash payments | (492) | (371) | |||
Reclassification of environment liability | [1] | (250) | |||
Exit activity liability, end of period | 79 | 179 | 336 | ||
Soot Sensor Product Line Relocation [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Cash payments | (392) | ||||
Integration Costs [Abstract] | |||||
Total relocation expected expenses | $ 600 | ||||
Soot Sensor Product Line Relocation [Member] | Maximum [Member] | |||||
Integration Costs [Abstract] | |||||
Expected period for completion of relocation | 6 months | ||||
Pollak Relocation [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | $ 0 | ||||
Cash payments | (214) | ||||
Exit activity liability, end of period | 0 | ||||
Plant Rationalization Programs [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Cash payments | (100) | (157) | |||
Exit activity liability, end of period | 79 | ||||
Workforce Reduction [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 179 | 336 | |||
Restructuring and integration costs provided for during the period | 0 | 0 | [1] | ||
Cash payments | (100) | (157) | |||
Reclassification of environment liability | [1] | 0 | |||
Exit activity liability, end of period | 79 | 179 | 336 | ||
Other Exit Costs [Member] | |||||
Restructuring and integration activities [Roll Forward] | |||||
Exit activity liability, beginning of period | 0 | 0 | |||
Restructuring and integration costs provided for during the period | 392 | 464 | [1] | ||
Cash payments | (392) | (214) | |||
Reclassification of environment liability | [1] | (250) | |||
Exit activity liability, end of period | $ 0 | $ 0 | $ 0 | ||
[1] | Included in restructuring and integration costs in 2020 is a $0.3 million increase in environmental cleanup costs related to ongoing monitoring and remediation in connection with the prior closure of our manufacturing operations at our Long Island City, New York location. The environmental liability has been reclassed to accrued liabilities as of December 31, 2020. |
Sale of Receivables (Details)
Sale of Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sale of Receivables [Abstract] | |||
Sale of receivables to financial institutions | $ 818.8 | $ 695.1 | |
Receivables not yet collected | 1.3 | 50 | |
Charge related to sale of receivables | $ 11.5 | $ 12.2 | $ 22 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventories [Abstract] | ||
Finished goods | $ 296,739 | $ 225,523 |
Work-in-process | 16,010 | 10,711 |
Raw materials | 156,006 | 109,268 |
Subtotal | 468,755 | 345,502 |
Unreturned customer inventories | 22,268 | 19,632 |
Total inventories | $ 491,023 | $ 365,134 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 330,574 | $ 303,499 | |
Less accumulated depreciation | 227,788 | 214,394 | |
Total property, plant and equipment, net | 102,786 | 89,105 | |
Depreciation expense | 18,200 | 17,800 | $ 17,400 |
Land, Buildings and Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 40,882 | 38,833 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 159,967 | 148,578 | |
Tools, Dies and Auxiliary Equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 63,944 | 60,102 | |
Furniture and Fixtures [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 30,688 | 30,347 | |
Leasehold Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 14,081 | 11,948 | |
Construction-in-Progress [Member] | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 21,012 | $ 13,691 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Quantitative Lease Disclosures [Abstract] | |||
Renewal option period | 5 years | ||
Assets [Abstract] | |||
Operating lease right-of-use assets | $ 40,469 | $ 29,958 | |
Liabilities [Abstract] | |||
Sundry payables and accrued expenses | 10,544 | 8,719 | |
Noncurrent operating lease liabilities | 31,206 | 22,450 | |
Total operating lease liabilities | $ 41,750 | $ 31,169 | |
Operating Leases [Abstract] | |||
Weighted average remaining lease term | 5 years 3 months 18 days | 5 years | |
Weighted average discount rate | 3.00% | 3.60% | |
Lease Expense [Abstract] | |||
Operating lease expense | [1] | $ 10,051 | $ 9,203 |
Excluded expenses of non lease | 2,000 | 2,500 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Right-of-use Assets | [2] | 8,800 | |
Cash paid for the amounts included in the measurement of lease liabilities [Abstract] | |||
Operating cash flows from operating leases | 9,985 | 9,087 | |
Right-of-use assets obtained in exchange for new lease obligations [Abstract] | |||
Operating leases | 20,975 | 3,180 | |
Minimum Lease Payments [Abstract] | |||
2022 | 10,707 | ||
2023 | 9,537 | ||
2024 | 7,165 | ||
2025 | 5,860 | ||
2026 | 5,109 | ||
Thereafter | 6,562 | ||
Total lease payments | 44,940 | ||
Less: Interest | (3,190) | ||
Total operating lease liabilities | $ 41,750 | $ 31,169 | |
Maximum [Member] | |||
Quantitative Lease Disclosures [Abstract] | |||
Remaining operating lease terms | 10 years | ||
[1] | Excludes expenses of approximately $2 million and $2.5 million for the years ended December 31, 2021 and 2020, 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. | ||
[2] | Includes $8.8 million of right-of-use assets obtained in business acquisitions during the year ended December 31, 2021. |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill by operating segment [Abstract] | ||
Goodwill gross, beginning balance | $ 116,325 | $ 116,290 |
Goodwill accumulated impairment losses, Beginning balance | (38,488) | (38,488) |
Goodwill net, beginning balance | 77,837 | 77,802 |
Goodwill foreign currency exchange rate change | (262) | 35 |
Goodwill gross, ending balance | 170,140 | 116,325 |
Goodwill accumulated impairment losses, Ending balance | (38,488) | (38,488) |
Goodwill net, ending balance | 131,652 | 77,837 |
Trombetta [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 49,250 | |
Stabil [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 4,827 | |
Engine Management [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill gross, beginning balance | 102,055 | 102,020 |
Goodwill accumulated impairment losses, Beginning balance | (38,488) | (38,488) |
Goodwill net, beginning balance | 63,567 | 63,532 |
Goodwill foreign currency exchange rate change | (262) | 35 |
Goodwill gross, ending balance | 155,870 | 102,055 |
Goodwill accumulated impairment losses, Ending balance | (38,488) | (38,488) |
Goodwill net, ending balance | 117,382 | 63,567 |
Engine Management [Member] | Trombetta [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 49,250 | |
Engine Management [Member] | Stabil [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 4,827 | |
Temperature Control [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill gross, beginning balance | 14,270 | 14,270 |
Goodwill accumulated impairment losses, Beginning balance | 0 | 0 |
Goodwill net, beginning balance | 14,270 | 14,270 |
Goodwill foreign currency exchange rate change | 0 | 0 |
Goodwill gross, ending balance | 14,270 | 14,270 |
Goodwill accumulated impairment losses, Ending balance | 0 | 0 |
Goodwill net, ending balance | 14,270 | $ 14,270 |
Temperature Control [Member] | Trombetta [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | 0 | |
Temperature Control [Member] | Stabil [Member] | ||
Goodwill by operating segment [Abstract] | ||
Goodwill acquisition | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | $ 184,263 | $ 123,636 | ||
Less accumulated amortization | [1] | (78,932) | (70,221) | |
Net acquired intangible assets | 105,331 | 53,415 | ||
Intangible assets acquired [Abstract] | ||||
Intangible asset impairment | 0 | 2,600 | $ 0 | |
Amortization of acquired intangible assets [Abstract] | ||||
Amortization expense | 8,700 | 8,200 | 8,000 | |
Estimated amortization expense in year 2022 | 8,500 | |||
Estimated amortization expense in year 2023 | 8,400 | |||
Estimated amortization expense in year 2024 | 8,200 | |||
Estimated amortization expense in years 2025 | 8,200 | |||
Estimated amortization expense in years 2026 through 2041 | 69,400 | |||
Other Intangible Assets [Abstract] | ||||
Amortization expense | 8,700 | 8,200 | 8,000 | |
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | 157,020 | 111,701 | ||
Patents, Developed Technology and Intellectual Property [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | 14,123 | 723 | ||
Trademarks and Trade Names [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | 8,880 | 6,980 | ||
Intangible assets acquired [Abstract] | ||||
Amount of acquired indefinite-lived intangible assets | 2,600 | |||
Intangible asset impairment | 2,600 | |||
Non-Compete Agreements [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | 3,280 | 3,272 | ||
Supply Agreements [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | 800 | 800 | ||
Leaseholds [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Total acquired intangible assets | 160 | 160 | ||
Computer Software [Member] | ||||
Amortization of acquired intangible assets [Abstract] | ||||
Amortization expense | 200 | 200 | ||
Other Intangible Assets [Abstract] | ||||
Other intangible assets | 17,400 | 17,000 | ||
Accumulated computer software amortization | (16,500) | (16,400) | ||
Amortization of computer software | 300 | 300 | $ 400 | |
Amortization expense | $ 200 | $ 200 | ||
Computer Software [Member] | Minimum [Member] | ||||
Other Intangible Assets [Abstract] | ||||
Estimated useful life of intangible assets | 3 years | |||
Computer Software [Member] | Maximum [Member] | ||||
Other Intangible Assets [Abstract] | ||||
Estimated useful life of intangible assets | 10 years | |||
[1] | Applies to all intangible assets, except for a related trademark/trade name totaling $2.6 million, which has an indefinite useful life and, as such, is not being amortized. |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2019 | Mar. 31, 2018 | Nov. 30, 2017 | Apr. 30, 2014 | Jan. 31, 2013 | |
Investments in and Advances to Affiliates, Balance [Abstract] | |||||||
Investments in unconsolidated affiliates | $ 44,087 | $ 40,507 | |||||
Outstanding borrowings | 128,436 | 10,232 | |||||
Foshan GWOYNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. [Member] | |||||||
Investments in and Advances to Affiliates, Balance [Abstract] | |||||||
Investments in unconsolidated affiliates | $ 20,692 | 18,869 | $ 4,200 | $ 14,000 | |||
Percentage of equity interest acquired | 65.00% | 15.00% | 50.00% | ||||
Purchases from equity method investment | $ 15,900 | 12,400 | |||||
Foshan FGD SMP Automotive Compressor Co. Ltd [Member] | |||||||
Investments in and Advances to Affiliates, Balance [Abstract] | |||||||
Investments in unconsolidated affiliates | 16,676 | 15,036 | $ 12,500 | ||||
Percentage of equity interest acquired | 50.00% | ||||||
Purchases from equity method investment | 32,200 | 17,400 | |||||
Foshan Che Yijia New Energy Technology Co., Ltd. [Member] | |||||||
Investments in and Advances to Affiliates, Balance [Abstract] | |||||||
Investments in unconsolidated affiliates | 3,990 | 4,174 | $ 5,100 | ||||
Percentage of equity interest acquired | 29.00% | ||||||
Maximum borrowing capacity | $ 4,000 | ||||||
Interest rate | 5.00% | ||||||
Maturity date | Nov. 30, 2023 | ||||||
Outstanding borrowings | $ 0 | ||||||
Orange Electronic Co., Ltd [Member] | |||||||
Investments in and Advances to Affiliates, Balance [Abstract] | |||||||
Investments in unconsolidated affiliates | $ 2,729 | 2,428 | $ 6,300 | ||||
Percentage of equity interest acquired | 19.40% | 25.00% | |||||
Purchases from equity method investment | $ 7,800 | $ 4,400 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Assets [Abstract] | ||
Deferred compensation | $ 23,623 | $ 20,775 |
Deferred financing costs, net | 206 | 431 |
Other | 1,573 | 617 |
Total other assets, net | $ 25,402 | $ 21,823 |
Credit Facilities and Long-Te_3
Credit Facilities and Long-Term Debt, Total Debt Outstanding (Details) $ in Thousands, zł in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021PLN (zł) | Dec. 31, 2020USD ($) | Dec. 31, 2020PLN (zł) | |
Credit Facilities and Long-Term Debt [Abstract] | |||||
Revolving credit facilities | $ 125,298 | $ 10,000 | |||
Other | [1] | 3,138 | 232 | ||
Total debt | 128,436 | 10,232 | |||
Current maturities of debt | 128,415 | 10,135 | |||
Long-term debt | 21 | 97 | |||
HSBC Bank Polska S.A. [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Overdraft facility | $ 3,000 | zł 12.3 | $ 100 | zł 0.4 | |
[1] | Other includes borrowings under our Polish overdraft facility of Zloty 12.3 million (approximately $3 million) and Zloty 0.4 million (approximately $0.1 million) as of December 31, 2021 and 2020, respectively. |
Credit Facilities and Long-Te_4
Credit Facilities and Long-Term Debt, Revolving Credit Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Abstract] | ||
Outstanding borrowings under credit facility | $ 125,298 | $ 10,000 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Abstract] | ||
Coverage ratio | 1 | |
Revolving Credit Facility [Member] | Pay Cash Dividend [Member] | ||
Line of Credit Facility [Abstract] | ||
Agreement permissions | $ 20,000 | |
Revolving Credit Facility [Member] | Stock Repurchase [Member] | ||
Line of Credit Facility [Abstract] | ||
Agreement permissions | 20,000 | |
Revolving Credit Facility [Member] | Stock Repurchase [Member] | Minimum [Member] | ||
Line of Credit Facility [Abstract] | ||
Borrowing base | 25,000 | |
Revolving Credit Facility [Member] | Cash Dividend And Stock Repurchases [Member] | Minimum [Member] | ||
Line of Credit Facility [Abstract] | ||
Agreement permissions | 20,000 | |
Revolving Credit Facility [Member] | Fixed Assets Included in Borrowing Base [Member] | Maximum [Member] | ||
Line of Credit Facility [Abstract] | ||
Borrowing base | $ 25,000 | |
Borrowing base percentage | 10.00% | |
Revolving Credit Facility [Member] | Fixed Assets Not Included in Borrowing Base [Member] | ||
Line of Credit Facility [Abstract] | ||
Borrowing base | $ 31,250 | |
Borrowing base percentage | 12.50% | |
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Abstract] | ||
Maximum borrowing capacity | $ 250,000 | |
Line of credit facility, accordian feature | $ 50,000 | |
Maturity date | Dec. 31, 2023 | |
Additional available borrowing capacity | $ 122,100 | |
Outstanding borrowings under credit facility | 125,300 | 10,000 |
Outstanding letters of credit | $ 2,600 | $ 2,800 |
Weighted average interest rate | 1.40% | 1.40% |
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | CANADA [Member] | ||
Line of Credit Facility [Abstract] | ||
Maximum borrowing capacity | $ 10,000 | |
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | ||
Line of Credit Facility [Abstract] | ||
Margin on variable rate | 1.25% | |
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | ||
Line of Credit Facility [Abstract] | ||
Margin on variable rate | 1.75% | |
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | Direct Borrowings [Member] | ||
Line of Credit Facility [Abstract] | ||
Outstanding borrowings under credit facility | $ 125,000 | $ 10,000 |
Weighted average interest rate | 1.40% | |
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | Alternate Base Rate [Member] | ||
Line of Credit Facility [Abstract] | ||
Outstanding borrowings under credit facility | $ 300 | |
Weighted average interest rate | 3.50% | |
Average daily loan balance outstanding | $ 1,100 | $ 1,500 |
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | Alternate Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Abstract] | ||
Margin on variable rate | 0.25% | |
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | Alternate Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Abstract] | ||
Margin on variable rate | 0.75% |
Credit Facilities and Long-Te_5
Credit Facilities and Long-Term Debt, Polish Overdraft Facility (Details) - HSBC Continental Europe [Member] zł in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Feb. 28, 2022USD ($) | Feb. 28, 2022PLN (zł) | Dec. 31, 2021PLN (zł) | Dec. 31, 2020USD ($) | Dec. 31, 2020PLN (zł) | |
Line of Credit Facility [Abstract] | ||||||
Overdraft facility initiation date | Mar. 31, 2022 | |||||
Overdraft facility expiration date | Jun. 30, 2022 | |||||
Overdraft facility renewal period | 3 months | |||||
Overdraft facility cancellation period | 30 days | |||||
Overdraft facility | $ 3 | zł 12.3 | $ 0.1 | zł 0.4 | ||
Subsequent Event [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Maximum borrowing capacity | $ 8 | zł 30 | ||||
1M WIBOR [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Basis spread on variable rate | 1.50% |
Credit Facilities and Long-Te_6
Credit Facilities and Long-Term Debt, Deferred Financing Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Amortization of financing cost for future years [Abstract] | ||
2022 | $ 225 | |
2023 | 206 | |
Total amortization | $ 431 | $ 700 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | 2 Months Ended | 12 Months Ended | |||||
Feb. 17, 2022USD ($)shares | Dec. 31, 2021USD ($)Vote$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Oct. 31, 2021USD ($) | Feb. 28, 2021USD ($) | Mar. 31, 2020USD ($) | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Stock repurchased during period | $ 26,862 | $ 13,482 | $ 10,738 | ||||
Preferred Stock [Member] | |||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Preferred stock, shares authorized (in shares) | shares | 500,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 20 | ||||||
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 | |||||
Series A Preferred Stock [Member] | |||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Preferred stock, shares authorized (in shares) | shares | 30,000 | ||||||
Number of votes per share | Vote | 1,000 | ||||||
Stock Repurchase Program 2020 [Member] | |||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Stock repurchase program, authorized amount | $ 20,000 | ||||||
Stock repurchased during period (in shares) | shares | 150,273 | 323,867 | |||||
Stock repurchased during period | $ 6,500 | $ 13,500 | |||||
Stock Repurchase Program 2021, February [Member] | |||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Stock repurchase program, authorized amount | $ 20,000 | ||||||
Stock repurchased during period (in shares) | shares | 464,992 | ||||||
Stock repurchased during period | $ 20,000 | ||||||
Stock Repurchase Program 2021, October [Member] | |||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Stock repurchase program, authorized amount | $ 30,000 | ||||||
Stock repurchased during period (in shares) | shares | 7,000 | ||||||
Stock repurchased during period | $ 300 | ||||||
Stock repurchase program, remaining authorized amount | $ 29,700 | ||||||
Stock Repurchase Program 2021, October [Member] | Subsequent Event [Member] | |||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Stock repurchased during period (in shares) | shares | 64,482 | ||||||
Stock repurchased during period | $ 3,100 | ||||||
Stock repurchase program, remaining authorized amount | $ 26,600 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($)Type$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | ||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Number of types of restricted stock | Type | 2 | |||
Restricted Shares [Member] | Minimum [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Expiration of vesting period | 3 years | |||
Restricted Shares [Member] | Employees [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Estimated forfeitures | 5.00% | |||
Restricted Shares [Member] | Executives [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Estimated forfeitures | 0.00% | |||
Restricted Shares [Member] | Directors [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Estimated forfeitures | 0.00% | |||
Restricted Shares [Member] | Age 60 [Member] | Executives [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Vesting percentage | 25.00% | |||
Vesting period before reaching age limit | 2 months | |||
Restricted Shares [Member] | Age 63 [Member] | Executives [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Vesting percentage | 25.00% | |||
Vesting period before reaching age limit | 2 months | |||
Restricted Shares [Member] | Age 65 [Member] | Executives [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Vesting percentage | 100.00% | |||
Vesting period before reaching age limit | 2 months | |||
Performance-Based Shares [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Measuring period for performance-based shares | 3 years | |||
Restricted and performance-based stock, shares [Roll Forward] | ||||
Forfeited (in shares) | (50,250) | |||
Performance-Based Shares [Member] | Minimum [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Expiration of vesting period | 3 years | |||
Restricted and Performance-Based Shares [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Unamortized compensation expense | $ | $ 16.6 | $ 15.2 | ||
Restricted and performance-based stock, shares [Roll Forward] | ||||
Beginning of period (in shares) | 839,686 | 852,540 | ||
Granted (in shares) | 211,815 | 208,200 | ||
Vested (in shares) | (227,682) | (161,054) | ||
Forfeited (in shares) | (16,800) | (60,000) | [1] | |
End of period (in shares) | 807,019 | 839,686 | 852,540 | |
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward] | ||||
Beginning of period (in dollars per share) | $ / shares | $ 34.77 | $ 35.26 | ||
Granted (in dollars per share) | $ / shares | 38.51 | 38.21 | ||
Vested (in dollars per share) | $ / shares | 36.10 | 39.23 | ||
Forfeited (in dollars per share) | $ / shares | 39.39 | 42.25 | ||
End of period (in dollars per share) | $ / shares | $ 34.92 | $ 34.77 | $ 35.26 | |
Weighted-average grant date fair value | $ | $ 28.2 | $ 29.2 | $ 30.1 | |
Restricted and Performance-Based Shares [Member] | Employees [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Weighted average period of recognition for unrecognized compensation expense | 4 years 8 months 12 days | 4 years 7 months 6 days | ||
Restricted and Performance-Based Shares [Member] | Directors [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Weighted average period of recognition for unrecognized compensation expense | 4 months 24 days | 3 months 18 days | ||
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Minimum [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Holding period for restricted and performance shares issued | 1 year | |||
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 Stock and Performance Share Grants [Abstract] | ||||
Holding period for restricted and performance shares issued | 2 years | |||
Post vesting holding period for restricted and performance shares issued | 2 years | |||
2016 Omnibus Incentive Plan [Member] | Restricted Shares [Member] | ||||
Restricted and performance-based stock, shares [Roll Forward] | ||||
Granted (in shares) | 159,565 | |||
2016 Omnibus Incentive Plan [Member] | Performance-Based Shares [Member] | ||||
Restricted and performance-based stock, shares [Roll Forward] | ||||
Granted (in shares) | 52,250 | |||
2016 Omnibus Incentive Plan [Member] | Restricted and Performance-Based Shares [Member] | ||||
Restricted Stock and Performance Share Grants [Abstract] | ||||
Restricted and performance-based stock grants issued, net of forfeitures (in shares) | 1,121,445 | |||
Common stock available for future grants (in shares) | 928,555 | |||
2016 Omnibus Incentive Plan [Member] | Employees and Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Abstract] | ||||
Shares authorized for issuance (in shares) | 2,050,000 | |||
2016 Omnibus Incentive Plan [Member] | Nonemployee Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Abstract] | ||||
Shares authorized for issuance (in shares) | 350,000 | |||
[1] | Due to the lack of achievement of performance targets, performance-based shares forfeited in the year ended December 31, 2020 were 50,250 shares. |
Employee Benefits (Details)
Employee Benefits (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Employeeshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Defined Contribution Plans [Abstract] | |||
U.S defined contribution | $ 9,763 | $ 9,457 | $ 9,080 |
Employer discretionary contribution amount | 800 | 500 | 300 |
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract] | |||
Provision for expense in connection with ESOP | $ 2,500 | 2,300 | 2,500 |
Postretirement Medical Benefits [Abstract] | |||
Number of former union employees covered by the plan | Employee | 14 | ||
Supplemental Executive Retirement Plan [Member] | |||
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract] | |||
Benefit obligation outstanding | $ 0 | 0 | |
Net periodic benefit cost | $ 0 | $ 0 | $ 0 |
Employee Stock Ownership Plan and Trust (ESOP) [Member] | |||
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract] | |||
Additional shares contributed to ESOP (in shares) | shares | 61,800 | ||
Shares released from trust (in shares) | shares | 61,800 | ||
Total remaining balance of shares in the ESOP (in shares) | shares | 200 |
Other Non-Operating Income (E_3
Other Non-Operating Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Non-Operating Income (Expense), Net [Abstract] | |||
Interest and dividend income | $ 49 | $ 109 | $ 97 |
Equity income from joint ventures | 3,295 | 820 | 2,865 |
Loss on foreign exchange | (257) | (350) | (502) |
Other non-operating income, net | 407 | 233 | 127 |
Total other non-operating income, net | $ 3,494 | $ 812 | $ 2,587 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current [Abstract] | |||
Domestic | $ 26,528 | $ 30,368 | $ 14,632 |
Foreign | 5,851 | 4,064 | 3,019 |
Total current | 32,379 | 34,432 | 17,651 |
Deferred [Abstract] | |||
Domestic | (1,161) | (7,418) | 4,677 |
Foreign | (174) | (52) | 417 |
Total deferred | (1,335) | (7,470) | 5,094 |
Total income tax provision | 31,044 | 26,962 | 22,745 |
Reconciliations Between Taxes at the U.S. Federal Income Tax Rate and Taxes at our Effective Income Tax Rate on Earnings [Abstract] | |||
U.S. Federal income tax rate of 21% | 27,398 | 22,550 | 19,277 |
Increase (decrease) in tax rate resulting from [Abstract] | |||
State and local income taxes, net of federal income tax benefit | 4,579 | 3,781 | 3,328 |
Income tax (tax benefit) attributable to foreign income | (122) | 330 | 191 |
Other non-deductible items, net | (1,277) | (563) | (409) |
Change in valuation allowance | 466 | 864 | 358 |
Total income tax provision | $ 31,044 | $ 26,962 | $ 22,745 |
U.S. Federal income tax rate | 21.00% | 21.00% | 21.00% |
Deferred tax assets [Abstract] | |||
Inventories | $ 12,181 | $ 12,773 | |
Allowance for customer returns | 14,185 | 13,804 | |
Postretirement benefits | 33 | 42 | |
Allowance for expected credit losses | 1,450 | 1,412 | |
Accrued salaries and benefits | 15,585 | 12,984 | |
Tax credit and NOL carryforwards | 5,702 | 1,451 | |
Accrued asbestos liabilities | 15,463 | 15,372 | |
Other | 190 | 170 | |
Deferred tax assets, gross | 64,789 | 58,008 | |
Valuation allowance | (2,087) | (1,621) | |
Total deferred tax assets | 62,702 | 56,387 | |
Deferred tax liabilities [Abstract] | |||
Intangible assets acquired, net of amortization | 13,450 | 0 | |
Depreciation | 7,589 | 7,710 | |
Other | 5,537 | 3,907 | |
Total deferred tax liabilities | 26,576 | 11,617 | |
Net deferred tax assets | 36,126 | 44,770 | |
Valuation allowance, remaining amount | 2,100 | ||
Income Tax Contingency [Abstract] | |||
Recognized uncertain tax positions | $ 0 | $ 0 | $ 0 |
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2030 | ||
Tax credit carryforward | $ 1,900 | ||
Foreign Tax Authority [Member] | Minimum [Member] | |||
Income Tax Contingency [Abstract] | |||
Period for statutes of limitations | 2 years | ||
Foreign Tax Authority [Member] | Maximum [Member] | |||
Income Tax Contingency [Abstract] | |||
Period for statutes of limitations | 6 years | ||
State and Local [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2017 2018 2019 2020 | ||
Canada Tax Authority [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2017 2018 2019 2020 | ||
Hong Kong Tax Authority [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2016 2017 2018 2019 2020 | ||
State Administration of Taxation, China [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2017 2018 2019 2020 | ||
Mexican Tax Authority [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2017 2018 2019 2020 | ||
Poland Tax Authority [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2016 2017 2018 2019 2020 | ||
Hungary Tax Authority [Member] | |||
Income Tax Contingency [Abstract] | |||
Open Tax Years | 2015 2016 2017 2018 2019 2020 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Net Earnings Attributable to SMP - [Abstract] | ||||
Earnings from continuing operations | $ 99,353 | $ 80,417 | $ 69,051 | |
Loss from discontinued operations | (8,467) | (23,024) | (11,134) | |
Net earnings attributable to SMP | [1] | $ 90,886 | $ 57,393 | $ 57,917 |
Basic Net Earnings Per Common Share Attributable to SMP - [Abstract] | ||||
Earnings from continuing operations per common share (in dollars per share) | $ 4.49 | $ 3.59 | $ 3.09 | |
Loss from discontinued operations per common share (in dollars per share) | (0.39) | (1.02) | (0.50) | |
Net earnings per common share - Basic (in dollars per share) | $ 4.10 | $ 2.57 | $ 2.59 | |
Weighted average common shares outstanding (in shares) | 22,147,479 | 22,374,123 | 22,378,414 | |
Diluted Net Earnings Per Common Share Attributable to SMP - | ||||
Earnings from continuing operations per common share (in dollars per share) | $ 4.39 | $ 3.52 | $ 3.03 | |
Loss from discontinued operations per common share (in dollars per share) | (0.37) | (1.01) | (0.49) | |
Net earnings per common share - Diluted (in dollars per share) | $ 4.02 | $ 2.51 | $ 2.54 | |
Weighted average common shares outstanding (in shares) | 22,147,479 | 22,374,123 | 22,378,414 | |
Plus incremental shares from assumed conversions [Abstract] | ||||
Dilutive effect of restricted stock and performance-based stock (in shares) | 469,000 | 452,000 | 440,000 | |
Weighted average common shares outstanding - Diluted (in shares) | 22,616,456 | 22,825,885 | 22,818,451 | |
Restricted and Performance-Based Shares [Member] | ||||
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 269,000 | 268,000 | 255,000 | |
[1] | Throughout this Form 10-K, “SMP” refers to Standard Motor Products, Inc. and subsidiaries. |
Industry Segment and Geograph_3
Industry Segment and Geographic Data, Reportable Segments (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | ||
Financial information for reportable segment [Abstract] | ||||
Number of reportable operating segments | Segment | 2 | |||
Net sales | [1] | $ 1,298,816 | $ 1,128,588 | $ 1,137,913 |
Depreciation and amortization | 27,243 | 26,323 | 25,809 | |
Operating income (loss) | 128,999 | 108,895 | 94,495 | |
Investment in unconsolidated affiliates | 44,087 | 40,507 | 38,858 | |
Capital expenditures | 25,875 | 17,820 | 16,185 | |
Total assets | 1,197,961 | 956,540 | 903,854 | |
Intersegment Revenues [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | 0 | 0 | 0 |
Engine Management [Member] | Reportable Segments [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | 937,936 | 835,685 | 849,161 |
Depreciation and amortization | 21,881 | 20,417 | 19,463 | |
Operating income (loss) | 117,367 | 111,217 | 103,808 | |
Investment in unconsolidated affiliates | 2,729 | 2,428 | 2,243 | |
Capital expenditures | 21,922 | 13,496 | 12,593 | |
Total assets | 845,767 | 618,210 | 594,953 | |
Engine Management [Member] | Intersegment Revenues [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | 23,599 | 15,952 | 19,569 |
Temperature Control [Member] | Reportable Segments [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | 348,423 | 281,954 | 278,355 |
Depreciation and amortization | 3,626 | 4,035 | 4,568 | |
Operating income (loss) | 36,997 | 21,296 | 13,667 | |
Investment in unconsolidated affiliates | 41,358 | 38,079 | 36,615 | |
Capital expenditures | 2,586 | 1,988 | 2,273 | |
Total assets | 257,114 | 230,111 | 216,591 | |
Temperature Control [Member] | Intersegment Revenues [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | 9,024 | 6,162 | 6,545 |
Other [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | 12,457 | 10,949 | 10,397 |
Depreciation and amortization | 1,736 | 1,871 | 1,778 | |
Operating income (loss) | (25,365) | (23,618) | (22,980) | |
Investment in unconsolidated affiliates | 0 | 0 | 0 | |
Capital expenditures | 1,367 | 2,336 | 1,319 | |
Total assets | 95,080 | 108,219 | 92,310 | |
Other [Member] | Intersegment Revenues [Member] | ||||
Financial information for reportable segment [Abstract] | ||||
Net sales | [1] | $ (32,623) | $ (22,114) | $ (26,114) |
[1] | Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Industry Segment and Geograph_4
Industry Segment and Geographic Data, Operating Income to Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Reconciliation of segment operating income to net earnings [Abstract] | ||||
Operating Income | $ 128,999 | $ 108,895 | $ 94,495 | |
Other non-operating income, net | 3,494 | 812 | 2,587 | |
Interest expense | 2,028 | 2,328 | 5,286 | |
Earnings from continuing operations before income taxes | 130,465 | 107,379 | 91,796 | |
Provision for income taxes | 31,044 | 26,962 | 22,745 | |
Earnings from continuing operations | 99,421 | 80,417 | 69,051 | |
Discontinued operations, net of tax | (8,467) | (23,024) | (11,134) | |
Net earnings | 90,954 | 57,393 | 57,917 | |
Long-lived assets [Abstract] | ||||
Long-lived assets | [1] | 450,630 | 313,234 | 326,025 |
United States [Member] | ||||
Long-lived assets [Abstract] | ||||
Long-lived assets | [1] | 315,983 | 241,053 | 253,384 |
Asia [Member] | ||||
Long-lived assets [Abstract] | ||||
Long-lived assets | [1] | 80,175 | 40,621 | 38,942 |
Europe [Member] | ||||
Long-lived assets [Abstract] | ||||
Long-lived assets | [1] | 37,892 | 16,504 | 17,004 |
Mexico [Member] | ||||
Long-lived assets [Abstract] | ||||
Long-lived assets | [1] | 12,119 | 10,586 | 12,036 |
Canada [Member] | ||||
Long-lived assets [Abstract] | ||||
Long-lived assets | [1] | $ 4,461 | $ 4,470 | $ 4,659 |
[1] | Long-lived assets are attributed to countries based upon the location of the assets. |
Industry Segment and Geograph_5
Industry Segment and Geographic Data, Customer Concentration (Details) - Customer Concentration Risk [Member] | 12 Months Ended |
Dec. 31, 2021Customer | |
Customer Concentration [Abstract] | |
Number of largest individual customers | 3 |
Net Sales [Member] | Three Largest Individual Customers [Member] | |
Customer Concentration [Abstract] | |
Concentration risk, percentage | 57.00% |
Net Sales [Member] | O' Reilly [Member] | |
Customer Concentration [Abstract] | |
Concentration risk, percentage | 26.00% |
Net Sales [Member] | NAPA [Member] | |
Customer Concentration [Abstract] | |
Concentration risk, percentage | 17.00% |
Net Sales [Member] | AutoZone [Member] | |
Customer Concentration [Abstract] | |
Concentration risk, percentage | 14.00% |
Net Sales (Details)
Net Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | $ 1,298,816 | $ 1,128,588 | $ 1,137,913 | |
Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 1,022,779 | 941,409 | 956,539 | |
OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 247,260 | 167,142 | 157,730 | |
Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 28,777 | 20,037 | 23,644 | |
Ignition, Emission Control, Fuel and Safety Related System Products [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 795,470 | 699,894 | 712,375 | |
Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 151,147 | 144,122 | 143,644 | |
Compressors [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 208,131 | 163,883 | 161,823 | |
Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 144,068 | 120,689 | 120,071 | |
United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 1,134,378 | 1,007,201 | 1,023,903 | |
Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 62,560 | 48,470 | 50,158 | |
Asia [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 41,016 | 35,244 | 24,968 | |
Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 25,646 | 19,607 | 20,035 | |
Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 27,683 | 12,606 | 13,875 | |
Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 7,533 | 5,460 | 4,974 | |
Engine Management [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 937,936 | 835,685 | 849,161 | |
Engine Management [Member] | Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 692,895 | 674,744 | 697,722 | |
Engine Management [Member] | OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 218,338 | 142,072 | 129,815 | |
Engine Management [Member] | Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 26,703 | 18,869 | 21,624 | |
Engine Management [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 786,514 | 691,722 | 705,994 | |
Engine Management [Member] | Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 151,422 | 143,963 | 143,167 | |
Engine Management [Member] | Compressors [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | |
Engine Management [Member] | Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | |
Engine Management [Member] | United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 804,398 | 738,521 | 760,134 | |
Engine Management [Member] | Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 33,590 | 25,842 | 27,439 | |
Engine Management [Member] | Asia [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 40,668 | 35,079 | 24,838 | |
Engine Management [Member] | Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 25,288 | 19,336 | 19,330 | |
Engine Management [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 27,293 | 12,255 | 13,341 | |
Engine Management [Member] | Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 6,699 | 4,652 | 4,079 | |
Temperature Control [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 348,423 | 281,954 | 278,355 | |
Temperature Control [Member] | Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 317,427 | 255,716 | 248,420 | |
Temperature Control [Member] | OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 28,922 | 25,070 | 27,915 | |
Temperature Control [Member] | Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 2,074 | 1,168 | 2,020 | |
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 | |
Temperature Control [Member] | Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | |
Temperature Control [Member] | Compressors [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 206,697 | 163,071 | 160,485 | |
Temperature Control [Member] | Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 141,726 | 118,883 | 117,870 | |
Temperature Control [Member] | United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 329,980 | 268,680 | 263,769 | |
Temperature Control [Member] | Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 16,513 | 11,679 | 12,322 | |
Temperature Control [Member] | Asia [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 348 | 165 | 130 | |
Temperature Control [Member] | Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 358 | 271 | 705 | |
Temperature Control [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 390 | 351 | 534 | |
Temperature Control [Member] | Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 834 | 808 | 895 | |
Other [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 12,457 | [2] | 10,949 | 10,397 |
Other [Member] | Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 12,457 | [2] | 10,949 | 10,397 |
Other [Member] | OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | [2] | 0 | 0 |
Other [Member] | Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | [2] | 0 | 0 |
Other [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 8,956 | [2] | 8,172 | 6,381 |
Other [Member] | Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | (275) | [2] | 159 | 477 |
Other [Member] | Compressors [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 1,434 | [2] | 812 | 1,338 |
Other [Member] | Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 2,342 | [2] | 1,806 | 2,201 |
Other [Member] | United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | [2] | 0 | 0 |
Other [Member] | Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 12,457 | [2] | 10,949 | 10,397 |
Other [Member] | Asia [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | [2] | 0 | 0 |
Other [Member] | Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | [2] | 0 | 0 |
Other [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | [2] | 0 | 0 |
Other [Member] | Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | $ 0 | [2] | $ 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 year ended December 31, 2021 exceeded third party sales from our Canadian business unit. |
Commitments and Contingencies,
Commitments and Contingencies, Rent (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Rent [Abstract] | |||||
Total rent expense | $ 12,065 | [1] | $ 11,669 | [1] | $ 11,382 |
Expenses related to non lease components | 2,000 | 2,500 | |||
Real Estate [Member] | |||||
Rent [Abstract] | |||||
Total rent expense | 9,500 | [1] | 8,290 | [1] | 7,909 |
Other [Member] | |||||
Rent [Abstract] | |||||
Total rent expense | $ 2,565 | [1] | $ 3,379 | [1] | $ 3,473 |
[1] | Includes expenses of approximately $2 million and $2.5 million for the years ended December 31, 2021 and 2020, respectively, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material. |
Commitments and Contingencies_2
Commitments and Contingencies, Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Warranties [Abstract] | |||
Warranty expense | $ 91,900 | $ 87,100 | $ 99,300 |
Changes in product warranties [Roll forward] | |||
Balance, beginning of period | 17,663 | 17,175 | |
Liabilities accrued for current year sales | 91,908 | 87,116 | |
Settlements of warranty claims | (92,108) | (86,628) | |
Balance, end of period | $ 17,463 | $ 17,663 | $ 17,175 |
Commitments and Contingencies_3
Commitments and Contingencies, Letters of Credit and Asbestos (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | 232 Months Ended | |||
Sep. 30, 2020USD ($) | Dec. 31, 2021USD ($)OfficerClaim | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Aug. 31, 2020USD ($) | |
Letters of Credit and Asbestos [Abstract] | ||||||
Number of key officers | Officer | 1 | |||||
Accrued asbestos liabilities | $ 52,698 | $ 55,226 | $ 55,226 | |||
Financial Standby Letter of Credit [Member] | ||||||
Letters of Credit and Asbestos [Abstract] | ||||||
Outstanding letters of credit with certain vendors | $ 2,600 | |||||
Asbestos [Member] | ||||||
Letters of Credit and Asbestos [Abstract] | ||||||
Pending claims, approximate number | Claim | 1,554 | |||||
Payment for settled claims and awards related damages, including interest | $ 53,800 | |||||
Decrease in range of possible loss from lower range | 2,100 | |||||
Increase in range of possible loss from upper range | 1,100 | |||||
Accrued asbestos liabilities | $ 60,900 | |||||
Incremental pre-tax provision | $ 5,300 | |||||
Asbestos [Member] | Minimum [Member] | ||||||
Letters of Credit and Asbestos [Abstract] | ||||||
Range of possible loss | $ 60,900 | |||||
Asbestos [Member] | Maximum [Member] | ||||||
Letters of Credit and Asbestos [Abstract] | ||||||
Range of possible loss | $ 100,200 | |||||
Asbestos [Member] | Discontinued Operations [Member] | ||||||
Letters of Credit and Asbestos [Abstract] | ||||||
Total operating cash outflows related to discontinued operations | $ (8,800) | $ (16,400) | $ (7,600) | |||
Asbestos [Member] | Discontinued Operations [Member] | Minimum [Member] | ||||||
Letters of Credit and Asbestos [Abstract] | ||||||
Range of possible loss | 49,400 | |||||
Asbestos [Member] | Discontinued Operations [Member] | Maximum [Member] | ||||||
Letters of Credit and Asbestos [Abstract] | ||||||
Range of possible loss | $ 99,300 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation and Qualifying Accounts [Roll Forward] | |||
Balance at beginning of year | $ 5,822,000 | $ 5,212,000 | $ 5,687,000 |
Charged to costs and expenses | 14,277,000 | 11,880,000 | 10,365,000 |
Other | 0 | 0 | 0 |
Deductions | 13,929,000 | 11,270,000 | 10,840,000 |
Balance at end of year | 6,170,000 | 5,822,000 | 5,212,000 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts [Roll Forward] | |||
Balance at beginning of year | 4,406,000 | 4,244,000 | 4,488,000 |
Charged to costs and expenses | 450,000 | 392,000 | (295,000) |
Other | 0 | 0 | 0 |
Deductions | 41,000 | 230,000 | (51,000) |
Balance at end of year | 4,815,000 | 4,406,000 | 4,244,000 |
Allowance for Discounts [Member] | |||
Valuation and Qualifying Accounts [Roll Forward] | |||
Balance at beginning of year | 1,416,000 | 968,000 | 1,199,000 |
Charged to costs and expenses | 13,827,000 | 11,488,000 | 10,660,000 |
Other | 0 | 0 | 0 |
Deductions | 13,888,000 | 11,040,000 | 10,891,000 |
Balance at end of year | 1,355,000 | 1,416,000 | 968,000 |
Allowance for Sales Returns [Member] | |||
Valuation and Qualifying Accounts [Roll Forward] | |||
Balance at beginning of year | 40,982,000 | 35,240,000 | 33,417,000 |
Charged to costs and expenses | 129,964,000 | 135,448,000 | 136,777,000 |
Other | 0 | 0 | 0 |
Deductions | 128,534,000 | 129,706,000 | 134,954,000 |
Balance at end of year | $ 42,412,000 | $ 40,982,000 | $ 35,240,000 |