Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
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 $2.00 per share | |
Trading Symbol | SMP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 21,408,957 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||||
Net sales | [1] | $ 359,412 | $ 342,076 | $ 682,243 | $ 618,629 |
Cost of sales | 263,061 | 242,804 | 496,052 | 435,573 | |
Gross profit | 96,351 | 99,272 | 186,191 | 183,056 | |
Selling, general and administrative expenses | 68,468 | 62,347 | 131,352 | 116,807 | |
Restructuring and integration expenses | 3 | 0 | 44 | 0 | |
Other income, net | 13 | 0 | 13 | 0 | |
Operating income | 27,893 | 36,925 | 54,808 | 66,249 | |
Other non-operating income, net | 1,927 | 832 | 3,376 | 1,467 | |
Interest expense | 1,821 | 495 | 2,626 | 704 | |
Earnings from continuing operations before taxes | 27,999 | 37,262 | 55,558 | 67,012 | |
Provision for income taxes | 7,122 | 9,248 | 14,127 | 16,834 | |
Earnings from continuing operations | 20,877 | 28,014 | 41,431 | 50,178 | |
Loss from discontinued operations, net of income taxes | (1,666) | (853) | (2,782) | (2,017) | |
Net earnings | 19,211 | 27,161 | 38,649 | 48,161 | |
Net earnings attributable to noncontrolling interest | 85 | 19 | 77 | 19 | |
Net earnings attributable to SMP | [2] | 19,126 | 27,142 | 38,572 | 48,142 |
Net earnings attributable to SMP | |||||
Earnings from continuing operations | 20,792 | 27,995 | 41,354 | 50,159 | |
Discontinued operations | (1,666) | (853) | (2,782) | (2,017) | |
Net earnings attributable to SMP | [2] | $ 19,126 | $ 27,142 | $ 38,572 | $ 48,142 |
Net earnings per common share - Basic: | |||||
Earnings from continuing operations (in dollars per share) | $ 0.96 | $ 1.26 | $ 1.89 | $ 2.25 | |
Discontinued operations (in dollars per share) | (0.08) | (0.04) | (0.13) | (0.09) | |
Net earnings per common share - Basic (in dollars per share) | 0.88 | 1.22 | 1.76 | 2.16 | |
Net earnings per common share - Diluted: | |||||
Earnings from continuing operations (in dollars per share) | 0.93 | 1.23 | 1.85 | 2.21 | |
Discontinued operations (in dollars per share) | (0.07) | (0.03) | (0.13) | (0.09) | |
Net earnings per common share - Diluted (in dollars per share) | 0.86 | 1.20 | 1.72 | 2.12 | |
Dividend declared per share (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.54 | $ 0.50 | |
Average number of common shares (in shares) | 21,757,998 | 22,198,545 | 21,867,644 | 22,257,922 | |
Average number of common shares and dilutive common shares (in shares) | 22,255,642 | 22,686,384 | 22,372,702 | 22,741,171 | |
[1]Segment net sales include intersegment sales in our Engine Management and Temperature Control segments.[2]Throughout this Form 10-Q, “SMP” refers to Standard Motor Products, Inc. and subsidiaries. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net earnings | $ 19,211 | $ 27,161 | $ 38,649 | $ 48,161 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (6,528) | 2,477 | (7,166) | 561 |
Derivative instruments | 105 | 0 | 105 | 0 |
Pension and postretirement plans | (4) | (4) | (9) | (9) |
Total other comprehensive income, net of tax | (6,427) | 2,473 | (7,070) | 552 |
Total Comprehensive income | 12,784 | 29,634 | 31,579 | 48,713 |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax: | ||||
Net earnings | 85 | 19 | 77 | 19 |
Foreign currency translation adjustments | (64) | (22) | (61) | (22) |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax | 21 | (3) | 16 | (3) |
Comprehensive income attributable to SMP | $ 12,763 | $ 29,637 | $ 31,563 | $ 48,716 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 14,186 | $ 21,755 |
Accounts receivable, less allowances for discounts and expected credit losses of $6,012 and $6,170 for 2022 and 2021, respectively | 229,657 | 180,604 |
Inventories | 551,415 | 468,755 |
Unreturned customer inventories | 21,405 | 22,268 |
Prepaid expenses and other current assets | 26,198 | 17,823 |
Total current assets | 842,861 | 711,205 |
Property, plant and equipment, net of accumulated depreciation of $234,217 and $227,788 for 2022 and 2021, respectively | 104,931 | 102,786 |
Operating lease right-of-use assets | 39,827 | 40,469 |
Goodwill | 131,125 | 131,652 |
Other intangibles, net | 101,649 | 106,234 |
Deferred income taxes | 34,086 | 36,126 |
Investments in unconsolidated affiliates | 44,885 | 44,087 |
Other assets | 27,188 | 25,402 |
Total assets | 1,326,552 | 1,197,961 |
CURRENT LIABILITIES: | ||
Current portion of revolving credit facility | 56,000 | 125,298 |
Current portion of term loan and other debt | 7,954 | 3,117 |
Accounts payable | 140,082 | 137,167 |
Sundry payables and accrued expenses | 49,710 | 57,182 |
Accrued customer returns | 55,725 | 42,412 |
Accrued core liability | 23,117 | 23,663 |
Accrued rebates | 41,647 | 42,472 |
Payroll and commissions | 35,985 | 45,058 |
Total current liabilities | 410,220 | 476,369 |
Long-term debt | 203,500 | 21 |
Noncurrent operating lease liabilities | 30,039 | 31,206 |
Other accrued liabilities | 22,119 | 25,040 |
Accrued asbestos liabilities | 48,025 | 52,698 |
Total liabilities | 713,903 | 585,334 |
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 | 109,117 | 105,377 |
Retained earnings | 559,069 | 532,319 |
Accumulated other comprehensive income | (15,178) | (8,169) |
Treasury stock - at cost (2,458,247 shares and 1,911,792 shares in 2022 and 2021, respectively) | (99,294) | (75,819) |
Total SMP stockholders' equity | 601,586 | 601,580 |
Noncontrolling interest | 11,063 | 11,047 |
Total stockholders' equity | 612,649 | 612,627 |
Total liabilities and stockholders' equity | $ 1,326,552 | $ 1,197,961 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Accounts receivable, allowances for discounts and expected credit losses | $ 6,012 | $ 6,170 |
Property, plant and equipment, accumulated depreciation | $ 234,217 | $ 227,788 |
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) | 2,458,247 | 1,911,792 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 38,649 | $ 48,161 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 13,893 | 13,100 |
Amortization of deferred financing cost | 164 | 114 |
Increase (decrease) to allowance for expected credit losses | (253) | 321 |
Increase (decrease) to inventory reserves | 2,959 | (463) |
Equity income from joint ventures | (2,524) | (1,156) |
Employee stock ownership plan allocation | 1,148 | 1,257 |
Stock-based compensation | 4,465 | 4,381 |
(Increase) decrease in deferred income taxes | 2,090 | (2,344) |
Loss on discontinued operations, net of tax | 2,782 | 2,017 |
Change in assets and liabilities: | ||
(Increase) in accounts receivable | (49,659) | (4,715) |
(Increase) in inventories | (87,744) | (46,682) |
(Increase) decrease in prepaid expenses and other current assets | (7,102) | 3,220 |
Increase in accounts payable | 1,591 | 16,097 |
(Decrease) in sundry payables and accrued expenses | (5,020) | (6,491) |
Net change in other assets and liabilities | (10,772) | (3,664) |
Net cash provided by (used in) operating activities | (95,333) | 23,153 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of and investments in businesses | 0 | (109,267) |
Capital expenditures | (13,203) | (11,709) |
Other investing activities | 0 | 2 |
Net cash used in investing activities | (13,203) | (120,974) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under the term loan | 100,000 | 0 |
Net borrowings under revolving credit facilities | 39,202 | 125,000 |
Net borrowings of other debt and capital lease obligations | 117 | 2,250 |
Purchase of treasury stock | (25,605) | (11,096) |
Payments of debt issuance costs | (2,128) | 0 |
Increase in overdraft balances | 1,903 | 694 |
Dividends paid | (11,822) | (11,134) |
Net cash provided by financing activities | 101,667 | 105,714 |
Effect of exchange rate changes on cash | (700) | 72 |
Net increase (decrease) in cash and cash equivalents | (7,569) | 7,965 |
CASH AND CASH EQUIVALENTS at beginning of period | 21,755 | 19,488 |
CASH AND CASH EQUIVALENTS at end of period | 14,186 | 27,453 |
Cash paid during the period for: | ||
Interest | 2,219 | 481 |
Income taxes | $ 18,897 | $ 12,803 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT 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, 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 acquired | 0 | 0 | 0 | 0 | 0 | 0 | 11,504 | 11,504 |
Net earnings | 0 | 0 | 48,142 | 0 | 0 | 48,142 | 19 | 48,161 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 574 | 0 | 574 | (22) | 552 |
Cash dividends paid | 0 | 0 | (11,134) | 0 | 0 | (11,134) | 0 | (11,134) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (11,096) | (11,096) | 0 | (11,096) |
Stock-based compensation | 0 | 1,844 | 0 | 0 | 2,537 | 4,381 | 0 | 4,381 |
Employee Stock Ownership Plan | 0 | 134 | 0 | 0 | 2,379 | 2,513 | 0 | 2,513 |
Balance at end of period at Jun. 30, 2021 | 47,872 | 107,062 | 500,620 | (5,102) | (66,836) | 583,616 | 11,501 | 595,117 |
Balance at beginning of period at Mar. 31, 2021 | 47,872 | 106,366 | 479,024 | (7,597) | (68,725) | 556,940 | 0 | 556,940 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling interest acquired | 0 | 0 | 0 | 0 | 0 | 0 | 11,504 | 11,504 |
Net earnings | 0 | 0 | 27,142 | 0 | 0 | 27,142 | 19 | 27,161 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 2,495 | 0 | 2,495 | (22) | 2,473 |
Cash dividends paid | 0 | 0 | (5,546) | 0 | 0 | (5,546) | 0 | (5,546) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation | 0 | 696 | 0 | 0 | 1,889 | 2,585 | 0 | 2,585 |
Balance at end of period at Jun. 30, 2021 | 47,872 | 107,062 | 500,620 | (5,102) | (66,836) | 583,616 | 11,501 | 595,117 |
Balance at beginning of period at Dec. 31, 2021 | 47,872 | 105,377 | 532,319 | (8,169) | (75,819) | 601,580 | 11,047 | 612,627 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 38,572 | 0 | 0 | 38,572 | 77 | 38,649 |
Other comprehensive income, net of tax | 0 | 0 | 0 | (7,009) | 0 | (7,009) | (61) | (7,070) |
Cash dividends paid | 0 | 0 | (11,822) | 0 | 0 | (11,822) | 0 | (11,822) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (26,496) | (26,496) | 0 | (26,496) |
Stock-based compensation | 0 | 3,371 | 0 | 0 | 1,094 | 4,465 | 0 | 4,465 |
Employee Stock Ownership Plan | 0 | 369 | 0 | 0 | 1,927 | 2,296 | 0 | 2,296 |
Balance at end of period at Jun. 30, 2022 | 47,872 | 109,117 | 559,069 | (15,178) | (99,294) | 601,586 | 11,063 | 612,649 |
Balance at beginning of period at Mar. 31, 2022 | 47,872 | 107,606 | 545,830 | (8,815) | (80,622) | 611,871 | 11,042 | 622,913 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 19,126 | 0 | 0 | 19,126 | 85 | 19,211 |
Other comprehensive income, net of tax | 0 | 0 | 0 | (6,363) | 0 | (6,363) | (64) | (6,427) |
Cash dividends paid | 0 | 0 | (5,887) | 0 | 0 | (5,887) | 0 | (5,887) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (19,646) | (19,646) | 0 | (19,646) |
Stock-based compensation | 0 | 1,511 | 0 | 0 | 974 | 2,485 | 0 | 2,485 |
Balance at end of period at Jun. 30, 2022 | $ 47,872 | $ 109,117 | $ 559,069 | $ (15,178) | $ (99,294) | $ 601,586 | $ 11,063 | $ 612,649 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation Standard Motor Products, Inc. and subsidiaries (referred to hereinafter in these notes to the consolidated financial statements as “we,” “us,” “our,” “SMP,” or the “Company”) is a leading manufacturer and distributor of premium replacement parts utilized in the maintenance, repair and service of vehicles in the automotive aftermarket industry along with a complementary focus on specialized equipment parts for manufacturers across multiple industries around the world. The accompanying unaudited financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form -K for the year ended December The unaudited consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 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 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. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form -Q and Rule - of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year. Reclassification Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2022 presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies The . Derivative Instruments and Hedging Activities We Other than the addition of the foregoing accounting policy, “Derivative Instruments and Hedging Activities,” there have been no material changes to our critical accounting policies and estimates from the information provided in Note of the notes to our consolidated financial statements in our Annual Report on Form -K for the year ended December Recently Issued Accounting Pronouncements Standards that are not yet adopted as of June T he following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted as of June 30, 2022, 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 A SU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting T his 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. E ffective 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 supply chain financing arrangements, we are currently reviewing the optional guidance in the standard to determine its impact upon the discontinuance of LIBOR. At this time, we do not believe that the new guidance, nor the discontinuance of LIBOR, will have a material impact on our consolidated financial statements and related disclosures. |
Business Acquisitions and Inves
Business Acquisitions and Investments | 6 Months Ended |
Jun. 30, 2022 | |
Business Acquisitions and Investments [Abstract] | |
Business Acquisitions and Investments | Note 3. 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. 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, 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 (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 of cash acquired. Intangible assets . Incremental revenues from the acquired Stabil business included in our consolidated statement of operations for the three months and six months ended June 30, 2022 were and $11.5 million, respectively. Acquisition of Capital Stock of Trumpet Holdings, Inc. (“Trombetta”) In May we acquired of the capital stock of Trumpet Holdings, Inc., a Delaware corporation, (more commonly known as “Trombetta”), for . 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 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 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 $ 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 of cash acquired. Intangible assets acquired of consist of customer relationships of that will be amortized on a straight-line basis over the estimated useful life of years; developed technology of that will be amortized on a straight-line basis over the estimated useful life of years; and a trade name of that will be amortized on a straight-line basis over the estimated useful life of years. Goodwill of 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. Incremental revenues from the acquired Trombetta business included in our consolidated statement of operations for the three months and six months ended June 30, 2022 were $10.8 million and $27.4 million, respectively . Acquisition of Particulate Matter Sensor Business of Stoneridge, Inc. (“Soot Sensor”) I n March 2021 and November 2021, we finalized the acquisitions of certain Soot Sensor product lines from Stoneridge, Inc. for $ 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, and equipment and certain intangible assets. The product lines acquired were used to manufacture sensors used in the exhaust and emission systems of diesel engines. The acquired product lines were located in Stoneridge’s facilities in Lexington, Ohio and Tallinn, Estonia. We did not acquire these facilities, nor any of Stoneridge’s employees, and have substantially completed the relocation of the acquired inventory, machinery and equipment related to the product lines to our engine management plants in Independence, Kansas and Bialystok, Poland. The acquisition, reported as part of our Engine Management Segment, aligns with our strategy of expansion into non-aftermarket parts. Customer relationships acquired include Volvo, CNHi and Hino. 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 $ million consist of customer relationships that will be amortized on a straight-line basis over the estimated useful life of years. Incremental revenues from the acquired Soot Sensor business included in our consolidated statement of operations for six months ended June 30, 2022 were $ 2.3 million, all of which relates to the first quarter of 2022. |
Restructuring and Integration E
Restructuring and Integration Expenses | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Integration Expenses [Abstract] | |
Restructuring and Integration Expenses | Note 4. Restructuring and Integration Expenses The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of December 31, 2021 and June 30, 2022 and for the six months ended June 30, 2022, consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2021 $ 79 $ — $ 79 Restructuring and integration costs: Amounts provided for during 2022 — 44 44 Cash payments (16 ) (44 ) (60 ) Reclassification (29 ) — (29 ) Exit activity liability at June 30, 2022 $ 34 $ — $ 34 Integration Costs Particulate Matter Sensor (“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 equipment to our existing facilities in Independence, Kansas and Bialystok, Poland. Integration expenses recognized and cash payments made of $44,000, during the six months ended June 30, 2022, related to these relocation activities in our Engine Management segment. The soot sensor product line relocation has been substantially completed. 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 Plant Rationalization Program, which included the shutdown our Orlando, Florida facility, have been substantially completed. Cash payments made of $ ,000 during the six months ended June 30, 2022 and the remaining aggregate liability of $ ,000 consists of severance payments to former employees terminated in connection with these programs |
Sale of Receivables
Sale of Receivables | 6 Months Ended |
Jun. 30, 2022 | |
Sale of Receivables [Abstract] | |
Sale of Receivables | Note 5. Sale of Receivables We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt. Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables, and do not service the receivables after the sale. As such, these transactions are being accounted for as a sale. Pursuant to these agreements, we sold $218.4 million and $374.1 million of receivables during the three months and six months ended June , 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, or an alternative benchmark reference rate, as it is a component of the discount rate applicable to each arrangement. If the LIBOR rate, or alternative benchmark reference rate, increases significantly, we may be negatively impacted as we may not be able to pass these added costs on to our customers, which could have a material and adverse effect upon our financial condition, results of operations and cash flows. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventories [Abstract] | |
Inventories | Note 6. Inventories Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) and net realizable value, consist of the following: June 30, 2022 December 31, 2021 (In thousands) Finished goods $ 345,200 $ 296,739 Work in process 17,248 16,010 Raw materials 188,967 156,006 Subtotal 551,415 468,755 Unreturned customer inventories 21,405 22,268 Total inventories $ 572,820 $ 491,023 |
Acquired Intangible Assets
Acquired Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Acquired Intangible Assets [Abstract] | |
Acquired Intangible Assets | Note 7. Acquired Intangible Assets Acquired identifiable intangible assets consist of the following: June 30, 2022 December 31, 2021 (In thousands) Customer relationships $ 156,321 $ 157,020 Patents, developed technology and intellectual property 14,123 14,123 Trademarks and trade names 8,880 8,880 Non-compete agreements 3,280 3,280 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 183,564 184,263 Less accumulated amortization (1) (82,956 ) (78,932 ) Net acquired intangible assets $ 100,608 $ 105,331 (1) Applies to all intangible assets, except for trademarks and trade names totaling $2.6 million, which have indefinite useful lives and, as such, are not being amortized. Total amortization expense for acquired intangible assets was $2.2 million and $4.3 million for the three months and six months ended June 30, 2022, respectively, and $2.1 million and $4.1 million for the comparable periods in 2021. Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be million for the remainder of 2022, |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 8. Leases We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to ten years, some of which may include one or more five-year renewal options. We have included the five-year renewal option for one of our leases in our operating lease payments as we concluded that it is reasonably certain that we will exercise the option. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term. Finance leases are not material. The following tables provide quantitative disclosures related to our operating leases and includes all operating leases acquired from the date of acquisition : Balance Sheet Information June 30, 2022 December 31, 2021 Assets Operating lease right-of-use assets $ 39,827 $ 40,469 Liabilities Sundry payables and accrued expenses $ 11,122 $ 10,544 Noncurrent operating lease liabilities 30,039 31,206 Total operating lease liabilities $ 41,161 $ 41,750 Weighted Average Remaining Lease Term Operating leases 4.9 Years 5.3 Years Weighted Average Discount Rate Operating leases 3.1 % 3 % Expense and Cash Flow Information Three Months Ended June 30, 2022 2021 Lease Expense Operating lease expense (a) $ 2,711 $ 2,441 Six Months Ended June 30 2022 2021 Lease Expense Operating lease expense (a) $ 5,541 $ 4,777 Supplemental Cash Flow Information Cash paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,397 $ 4,733 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 4,458 $ 14,077 (a) Excludes expenses of approximately $0.7 million and $1.1 million for the three and six months ended June 30, 2022, respectively, and approximately $0.3 million and $0.9 million for the comparable periods in 2021, 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. Minimum Lease Payments At June 30, 2022, we are obligated to make minimum lease payments through 2031, under operating leases, which are as follows (in thousands): 2022 $ 5,784 2023 10,788 2024 8,316 2025 6,588 2026 5,780 Thereafter 6,851 Total lease payments $ 44,107 Less: Interest (2,946 ) Present value of lease liabilities $ 41,161 |
Credit Facilities and Long-Term
Credit Facilities and Long-Term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Credit Facilities and Long-Term Debt | Note 9. Credit Facilities and Long-Term Debt Total debt outstanding is summarized as follows: June 30, 2022 December 31, 2021 (In thousands) Credit facility – term loan due 2027 $ 100,000 $ — Credit facility – revolver due 2027 164,500 — Senior secured facility – revolver due 2023 — 125,298 Other (1) 2,954 3,138 Total debt $ 267,454 $ 128,436 Current maturities of debt $ 63,954 $ 128,415 Long-term debt 203,500 21 Total debt $ 267,454 $ 128,436 (1) Other includes borrowings under our Polish overdraft facility of Zloty 12.9 million (approximately $2.9 million) and Zloty 12.3 million (approximately $3 million) as of June 30, 2022 and December 31, 2021, respectively. Term Loan and Revolving Credit Facilities In March 2022, the Company and its wholly owned subsidiaries, SMP Motor Products Ltd. and Trumpet Holdings, Inc., entered into an amendment to our existing Credit Agreement, dated as of October 28, 2015, as amended (the "2015 Credit Agreement"), with JP Morgan Chase Bank, N.A., as agent, and a syndicate of lenders for our senior secured revolving credit facility. The amendment provided for the drawdown of an additional $50 million from the agreement’s accordion feature to increase the line of credit under the revolving credit facility from $250 million to $300 million, and updated the benchmark provisions to replace LIBOR with Term SOFR as the reference rate. In June 2022, the Company entered into a new Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders (the “Credit Agreement”). The Credit Agreement provides for a $500 million credit facility comprised of a $100 million term loan facility (the “term loan”) and a $400 million multi-currency revolving credit facility available in U.S. Dollars, Euros, Sterling, Swiss Francs, Canadian Dollars and other currencies as agreed to by the administrative agent and the lenders (the “revolving facility”). The Credit Agreement replaces and refinances the 2015 Credit Agreement. Borrowings under the Credit Agreement were used to repay all outstanding borrowings under the 2015 Credit Agreement, and pay certain fees and expenses incurred in connection with the Credit Agreement, with future borrowings used for other general corporate purposes of the Company and its subsidiaries. The term loan amortizes in quarterly installments of 1.25% in each of the first four years, and quarterly installments of 2.5% in the fifth year of the Credit Agreement. The revolving facility has a $25 million sub-limit for the issuance of letters of credit and a $25 million sub-limit for the borrowing of swingline loans. The maturity date is June 1, 2027. The Company may request up to two one-year extensions of the maturity date. The Company may, upon the agreement of one or more then existing lenders or of additional financial institutions not currently party to the Credit Agreement, increase the revolving facility commitments or obtain incremental term loans by an aggregate amount not to exceed (x) the greater of (i) $168 million or (ii) 100% of consolidated EBITDA (as defined in the Credit Agreement) for the four fiscal quarters ended most recently before such date, plus (y) the amount of any voluntary prepayment of term loans, plus (z) an unlimited amount so long as, immediately after giving effect thereto, the pro forma First Lien Net Leverage Ratio (as defined in the Credit Agreement) does not exceed 2.5 to 1.0. Term loan and revolver facility borrowings in U.S. Dollars bear interest, at the Company’s election, at a rate per annum equal to Term SOFR plus 0.10% plus an applicable margin, or an alternate base rate plus an applicable margin, where the alternate base rate is the greater of the prime rate, the federal funds effective rate plus 0.50%, and one-month Term SOFR plus 0.10% plus 1.00%. Term loan borrowings were made at one-month Term SOFR. The applicable margin for the term benchmark borrowings ranges from 1.0% to 2.0%, and the applicable margin for alternate base rate borrowings ranges from 0% to 1.0%, in each case, based on the total net leverage ratio of the Company and its restricted subsidiaries. The Company may select interest periods of one, three or six months for Term SOFR borrowings. Interest is payable at the end of the selected interest period, but no less frequently than quarterly. The Company’s obligations under the Credit Agreement are guaranteed by its material domestic subsidiaries (each, a “Guarantor”), and secured by a first priority perfected security interest in substantially all of the existing and future personal property of the Company and each Guarantor, subject to certain exceptions. The collateral security described above also secures certain banking services obligations and interest rate swaps and currency or other hedging obligations of the Company owing to any of the then existing lenders or any affiliates thereof. Concurrently with the Company’s entry into the Credit Agreement, the Company also entered into a seven year interest rate swap agreement with Wells Fargo Bank, N.A., Co-Syndication Agent and lender under the Credit Agreement, on $100 million of borrowings under the Credit Agreement. The interest rate swap agreement matures in May 2029. Outstanding borrowings at June 30, 2022 under the Credit Agreement were $264.5 million, consisting of current borrowings of $61 million and long-term debt of $203.5 million; while outstanding borrowings at December 31, 2021 under the 2015 Credit Agreement were $125.3 million, consisting of current borrowings. Letters of credit outstanding under the Credit Agreement were $2.6 million at June 30, 2022, and $2.6 million under the 2015 Credit Agreement at December 31, 2021. Borrowings at December 31, 2021 under the 2015 Credit Agreement have been classified as current liabilities based upon accounting rules and certain provisions in the agreement. At June December The Credit Agreement contains customary covenants limiting, among other things, the incurrence of additional indebtedness, the creation of liens, mergers, consolidations, liquidations and dissolutions, sales of assets, dividends and other payments in respect of equity interests, acquisitions, investments, loans and guarantees, subject, in each case, to customary exceptions, thresholds and baskets. The Credit Agreement also contains customary events of default. Polish Overdraft Facility In February 2022, our Polish subsidiary, SMP Poland sp. z.o.o., amended its overdraft facility with HSBC Continental Europe (Spolka Akcyjna) Oddzial w Polsce, formerly HSBC France (Spolka Akcyjna) Oddzial w Polsce. The amended overdraft facility provides for borrowings of up to Zloty 30 million (approximately $6.7 million). Availability under the amended facility commenced in March 2022 Maturities of Debt As of June 30, 2022, maturities of debt through 2027, assuming no prepayments, are as follows (in thousands): Revolving Credit Facility Term Loan Facility Polish Overdraft Facility and Other Debt Total Remainder of 2022 $ — $ 2,500 $ 2,954 $ 5,454 2023 — 5,000 — 5,000 2024 — 5,000 — 5,000 2025 — 5,000 — 5,000 2026 — 7,500 — 7,500 2027 164,500 75,000 — 239,500 Total $ 164,500 $ 100,000 $ 2,954 $ 267,454 Less: current maturities (56,000 ) (5,000 ) (2,954 ) (63,954 ) Long-term debt $ 108,500 $ 95,000 $ — $ 203,500 Deferred Financing Costs We have deferred financing costs of approximately $2.4 million and $0.4 million as of June 30, 2022 and December 31, 2021, respectively. Deferred financing costs are related to our term loan and revolving credit facilities. In connection with the amendment to the 2015 Credit Agreement entered into in March 2022 and the Credit Agreement entered into in June 2022 with JPMorgan Chase Bank, N.A., as agent, we incurred and capitalized approximately $0.2 million, and $1.9 million, respectively, of deferred financing costs related to bank, legal, and other professional fees which are being amortized, along with certain preexisting deferred financing costs, through June 2027, the term of the Credit Agreement. In addition, upon entering into the Credit Agreement, we wrote-off $40,000 of unamortized deferred financing costs associated with the 2015 Credit Agreement. Unamortized deferred financing costs written-off in June 2022 were recorded in other non-operating income (expense), net in our consolidated statement of operations. Deferred financing costs as of June 30, 2022, assuming no prepayments, are being amortized as follows: (In thousands) Remainder of 2022 $ 257 2023 492 2024 479 2025 471 2026 465 2027 191 Total amortization $ 2,355 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 10. Accumulated Other Comprehensive Income Changes in Accumulated Other Comprehensive Income by Component (in thousands) Three Months Ended June 30, 2022 Foreign Currency Translation Unrecognized Postretirement Benefit Costs (Credit) Unrealized derivative gains (losses) Total Balance at March 31, 2022 attributable to SMP $ (8,862 ) $ 47 $ — $ (8,815 ) Other comprehensive income before reclassifications (6,464 ) — 4 (1) (6,460 ) Amounts reclassified from accumulated other comprehensive income — (4 ) 101 97 Other comprehensive income, net (6,464 ) (4 ) 105 (6,363 ) Balance at June 30, 2022 attributable to SMP $ (15,326 ) $ 43 $ 105 $ (15,178 ) Six Months Ended June 30, 2022 Foreign Currency Translation Unrecognized Postretirement Benefit Costs (Credit) Unrealized derivative gains (losses) Total Balance at December 31, 2021 attributable to SMP $ (8,221 ) $ 52 $ — $ (8,169 ) Other comprehensive income before reclassifications (7,105 ) — 4 (1) (7,101 ) Amounts reclassified from accumulated other comprehensive income — (9 ) 101 92 Other comprehensive income, net (7,105 ) (9 ) 105 (7,009 ) Balance at June 30, 2022 attributable to SMP $ (15,326 ) $ 43 $ 105 $ (15,178 ) (1) Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $137,000 ($102,000, net of tax) in the three months and six months ended June 30, 2022, net of cash settlements payments of $132,000 ($98,000, net of tax) in the three months and six months ended June 30, 2022. Reclassifications Out of Accumulated Other Comprehensive Income (in thousands) Three Months Ended June 30, Six Months Ended June 30, Details About Accumulated Other Comprehensive Income Components 2022 2022 Derivative cash flow hedge: Unrecognized gain (loss) (1) $ 136 $ 136 Postretirement Benefit Plans: Unrecognized gain (loss) (2) (6 ) (13 ) Total before income tax 130 123 Income tax expense 33 31 Total reclassifications attributable to SMP $ 97 $ 92 (1) Unrecognized accumulated other comprehensive income (loss) related to the cash flow interest rate hedge is reclassified to earnings and reported as part of interest expense in our consolidated statements of operations when the interest payments on the underlying borrowings are recognized. (2) Unrecognized accumulated other comprehensive income (loss) related to our post retirement plans is reclassified to earnings and included in the computation of net periodic postretirement benefit costs, whic |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2022 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | Note 11. Stock-Based Compensation Plans We account for our stock-based compensation plans in accordance with the provisions of FASB ASC 718, Stock Compensation Restricted and Performance Stock Grants 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 shares under the Amended and Restated Omnibus Incentive Plan (“Plan”). As part of the Plan, we currently grant shares of restricted stock to eligible employees and our independent directors and performance-based shares to eligible employees. We grant eligible employees 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 after the date of grant. Long-term retention restricted shares granted to selected executives vest at a rate on or within approximately of an executive reaching the ages 60 and 63 and become fully vested on or within approximately of an executive reaching the age 65 Restricted shares granted to directors become fully vested upon the first anniversary of the date of grant. 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 Our : Shares Weighted Average Grant Date Fair Value Per Share Balance at 2021 807,019 $ 34.92 Granted 8,125 33.81 Vested (13,300 ) 39.80 Forfeited (5,500 ) 42.24 Balance at June 30 2022 796,344 $ 34.78 We recorded compensation expense related to restricted shares and performance-based shares of $ million ($ million, net of tax) and $ million ($ million, net of tax) for the six . The unamortized compensation expense related to our restricted and performance-based shares was $ million at June 30, 2022, and is expected to be recognized as they vest over a weighted average period of years and years for employees and directors, respectively. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2022 | |
Employee Benefits [Abstract] | |
Employee Benefits | Note 12. Employee Benefits We provide certain medical and dental care benefits to former U.S. union employees. 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 2022, we made company contributions to the plan of $0.8 million related to calendar year 2021. We also have an Employee Stock Ownership Plan for employees who are not covered by a collective bargaining agreement. In connection therewith, we maintain an employee benefits trust to which we contribute shares of treasury stock. We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under the plan. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released. The trustees will vote the shares in accordance with their fiduciary duties. During the six months ended June 30, 2022 we contributed to the trust an additional shares from our treasury and released shares from the trust leaving shares remaining in the trust as of June 30, 2022. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note 13. Derivative Financial Instruments Interest Rate Swap Agreements We occasionally use derivative financial instruments to reduce our market risk to changes in interest rates on our variable rate borrowings. The principal financial instruments used for cash flow hedging purposes are interest rate swap agreements. The interest rate swaps effectively convert a portion of our variable rate borrowings under our existing facilities to a fixed rate based upon determined notional amount. We do not enter into interest rate swap agreements, or other financial instruments, for trading or speculative purposes. In June 2022, we entered into a seven year interest rate swap agreement with a notional amount of $100 million that is to mature in May 2029 The fair value of the interest rate swap agreement as of June 30, 2022 was an asset of $137,000, which has been deferred and recorded in accumulated other comprehensive income, net of income taxes, in our consolidated balance sheet. When the interest expense on the underlying borrowing is recognized, the deferred gain/loss in accumulated other comprehensive income is recorded in earnings as interest expense in the consolidated statements of operations. We plan to perform quarterly hedge effectiveness assessments, and anticipate that the interest rate swap will be highly effective throughout its term. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 14. Fair Value Measurements We follow a three-level fair value hierarchy that prioritizes the inputs to measure fair value. This hierarchy requires entities to maximize the use of “observable inputs” and minimize the use of “unobservable inputs.” The three levels of inputs used to measure fair value are as follows: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect assumptions that market participants would use in pricing an asset or liability. The following is a summary of the estimated fair values, carrying amounts, and classification under the fair value hierarchy of our financial instruments at June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Fair Value Hierarchy Fair Value Carrying Amount Fair Value Carrying Amount Cash and cash equivalents LEVEL 1 $ 14,186 $ 14,186 $ 21,755 $ 21,755 Deferred compensation LEVEL 1 20,217 20,217 23,623 23,623 Short term borrowings LEVEL 1 63,954 63,954 128,415 128,415 Long-term debt LEVEL 1 203,500 203,500 21 21 Cash flow interest rate swap LEVEL 2 137 137 — — The carrying value of cash and cash equivalents approximates fair value due to the short maturity of those investments. The fair value of the underlying assets held by the deferred compensation plan are based on the quoted market prices of the underlying funds which are held by registered investment companies. The carrying value of our variable rate short-term borrowings and long-term debt under our credit facilities approximates fair value as the variable interest rates in the facilities reflect current market rates. The fair value of our cash flow interest rate swap agreement is obtained from an independent third party, is based upon market quotes, and represents the net amount required to terminate the interest rate swap, taking into consideration market rates and counterparty credit risk. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15. Earnings Per 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 s, except per share data): Three Months Ended June 30, Six June 30, 2022 2021 2022 2021 N et Earnings Attributable to SMP - Earnings from continuing operations $ 20,792 $ 27,995 $ 41,354 $ 50,159 Loss from discontinued operations (1,666 ) (853 ) (2,782 ) (2,017 ) Net earnings attributable to SMP $ 19,126 $ 27,142 $ 38,572 $ 48,142 Basic Net Earnings Per Common Share Attributable to SMP - Earnings from continuing operations per common share $ 0.96 $ 1.26 $ 1.89 $ 2.25 Loss from discontinued operations per common share (0.08 ) (0.04 ) (0.13 ) (0.09 ) Net earnings per common share attributable to SMP $ 0.88 $ 1.22 $ 1.76 $ 2.16 Weighted average common shares outstanding 21,758 22,199 21,868 22,258 Diluted Net Earnings Per Common Share Attributable to SMP - Earnings from continuing operations per common share $ 0.93 $ 1.23 $ 1.85 $ 2.21 Loss from discontinued operations per common share (0.07 ) (0.03 ) (0.13 ) (0.09 ) Net earnings per common share attributable to SMP $ 0.86 $ 1.20 $ 1.72 $ 2.12 Weighted average common shares outstanding 21,758 22,199 21,868 22,258 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock and performance-based stock 498 487 505 483 Weighted average common shares outstanding – Diluted 22,256 22,686 22,373 22,741 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 s): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Restricted and performance-based shares 268 239 262 258 |
Industry Segments
Industry Segments | 6 Months Ended |
Jun. 30, 2022 | |
Industry Segments [Abstract] | |
Industry Segments | Note 16. Industry Segments 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 non-aftermarket, 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 following tables show our net sales, intersegment revenue and operating income for each reportable segment (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net Sales (a) Engine Management $ 241,873 $ 233,216 $ 481,130 $ 445,234 Temperature Control 114,432 106,471 195,753 168,944 All Other 3,107 2,389 5,360 4,451 Consolidated $ 359,412 $ 342,076 $ 682,243 $ 618,629 Intersegment Revenue (a) Engine Management $ 5,007 $ 5,185 $ 10,796 $ 10,544 Temperature Control 2,831 3,125 6,047 4,972 All Other (7,838 ) (8,310 ) (16,843 ) (15,516 ) Consolidated $ — $ — $ — $ — Operating Income Engine Management $ 21,100 $ 30,384 $ 47,816 $ 61,498 Temperature Control 12,265 13,229 17,483 16,821 All Other (5,472 ) (6,688 ) (10,491 ) (12,070 ) Consolidated $ 27,893 $ 36,925 $ 54,808 $ 66,249 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. For the disaggregation of our net sales from contracts with customers by geographic area, major product group and major sales channels for each of our segments, see Note 17, “Net Sales.” |
Net Sales
Net Sales | 6 Months Ended |
Jun. 30, 2022 | |
Net Sales [Abstract] | |
Net Sales | Note 17. Net Sales Disaggregation of Net Sales We disaggregate our net sales from contracts with customers by geographic area, major product group, and major sales channels for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our net sales are affected by economic factors. The following tables provide disaggregation of net sales information for the three months and six months ended June 30, 2022 and 2021 (in thousands): Three months ended June 30 2022 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 214,444 $ 108,154 $ — $ 322,598 Canada 6,257 5,873 3,107 15,237 Europe 10,378 69 — 10,447 Mexico 6,666 105 — 6,771 Asia 2,634 30 — 2,664 Other foreign 1,494 201 — 1,695 Total $ 241,873 $ 114,432 $ 3,107 $ 359,412 Major Product Group: Ignition, emission control, fuel and safety related system products $ 202,823 $ — $ 2,387 $ 205,210 Wire and cable 39,050 — 52 39,102 Compressors — 72,063 243 72,306 Other climate control parts — 42,369 425 42,794 Total $ 241,873 $ 114,432 $ 3,107 $ 359,412 Major Sales Channel: Aftermarket $ 173,361 $ 103,652 $ 3,107 $ 280,120 OE/OES 59,984 10,094 — 70,078 Export 8,528 686 — 9,214 Total $ 241,873 $ 114,432 $ 3,107 $ 359,412 Three months ended June 30 2021 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 202,274 $ 101,241 $ — $ 303,515 Canada 7,433 4,632 2,389 14,454 Europe 5,252 161 — 5,413 Mexico 6,460 115 — 6,575 Asia 9,447 68 — 9,515 Other foreign 2,350 254 — 2,604 Total $ 233,216 $ 106,471 $ 2,389 $ 342,076 Major Product Group: Ignition, emission control, fuel and safety related system products $ 192,486 $ — $ 1,832 $ 194,318 Wire and cable 40,730 — (142 ) 40,588 Compressors — 69,577 386 69,963 Other climate control parts — 36,894 313 37,207 Total $ 233,216 $ 106,471 $ 2,389 $ 342,076 Major Sales Channel: Aftermarket $ 172,676 $ 97,763 $ 2,389 $ 272,828 OE/OES 53,776 8,104 — 61,880 Export 6,764 604 — 7,368 Total $ 233,216 $ 106,471 $ 2,389 $ 342,076 Six months ended June 30, 2022 (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 416,267 $ 183,603 $ — $ 599,870 Canada 14,397 11,189 5,360 30,946 Europe 18,085 114 — 18,199 Mexico 15,007 189 — 15,196 Asia 14,126 192 — 14,318 Other foreign 3,248 466 — 3,714 Total $ 481,130 $ 195,753 $ 5,360 $ 682,243 Major Product Group: Ignition, emission control, fuel and safety related system products $ 403,177 $ — $ 4,707 $ 407,884 Wire and cable 77,953 — (31 ) 77,922 Compressors — 115,340 192 115,532 Other climate control parts — 80,413 492 80,905 Total $ 481,130 $ 195,753 $ 5,360 $ 682,243 Major Sales Channel: Aftermarket $ 338,486 $ 175,931 $ 5,360 $ 519,777 OE/OES 126,541 18,588 — 145,129 Export 16,103 1,234 — 17,337 Total $ 481,130 $ 195,753 $ 5,360 $ 682,243 Six June 30 2021 (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 383,375 $ 159,977 $ — $ 543,352 Canada 16,007 7,958 4,451 28,416 Europe 10,401 217 — 10,618 Mexico 12,607 180 — 12,787 Asia 19,082 144 — 19,226 Other foreign 3,762 468 — 4,230 Total $ 445,234 $ 168,944 $ 4,451 $ 618,629 Major Product Group: Ignition, emission control, fuel and safety related system products $ 366,152 $ — $ 3,501 $ 369,653 Wire and cable 79,082 — (135 ) 78,947 Compressors — 102,951 404 103,355 Other climate control parts — 65,993 681 66,674 Total $ 445,234 $ 168,944 $ 4,451 $ 618,629 Major Sales Channel: Aftermarket $ 337,309 $ 153,448 $ 4,451 $ 495,208 OE/OES 94,821 14,484 — 109,305 Export 13,104 1,012 — 14,116 Total $ 445,234 $ 168,944 $ 4,451 $ 618,629 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. (b) Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments as well as sales from our Canadian business unit that does not meet the criteria of a reportable operating segment. Intersegment wire and cable sales for the six months ended June 30, 2022, and for the three and six months ended June 30, 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 Specialized Original Equipment (“OE”) and Original Equipment Service (“OES”) channel, we sell our products to original equipment manufacturers who redistribute our products within their distribution network, independent dealerships and service dealer technicians. Lastly, in the Export channel, our domestic entities sell to customers outside the United States. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 18. Commitments and Contingencies Asbestos In 1986, we acquired a brake business, which we subsequently sold in March 1998 and which is accounted for as a discontinued operation in the accompanying statement of operations. When we originally acquired this brake business, we assumed future liabilities relating to any alleged exposure to asbestos-containing products manufactured by the seller of the acquired brake business. In accordance with the related purchase agreement, we agreed to assume the liabilities for all new claims filed on or after September 2001. Our ultimate exposure will depend upon the number of claims filed against us on or after September 2001, and the amounts paid for settlements, awards of asbestos-related damages, and defense of such claims. At June 30, 2022, approximately 1,590 cases were outstanding for which we may be responsible for any related liabilities. Since inception in September 2001 through June 30, 2022, the amounts paid for settled claims and awards of asbestos-related damages, including interest, were approximately $63.1 million. We do not have insurance coverage for the indemnity and defense costs associated with the claims we face. In evaluating our potential asbestos-related liability, we have considered various factors including, among other things, an actuarial study of the asbestos related liabilities performed by an independent actuarial firm, our settlement amounts and whether there are any co-defendants, the jurisdiction in which lawsuits are filed, and the status and results of such claims. As is our accounting policy, we consider the advice of actuarial consultants with experience in assessing asbestos-related liabilities to estimate our potential claim liability; and perform an actuarial evaluation in the third quarter of each year and whenever events or changes in circumstances indicate that additional provisions may be necessary. The methodology used to project asbestos-related liabilities and costs in our actuarial study considered: (1) historical data available from publicly available studies; (2) an analysis of our recent claims history to estimate likely filing rates into the future; (3) an analysis of our currently pending claims; (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 third quarter of each year, an actuarial study was performed as of August 31, 2021. The results of the August 31, 2021 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 $60.9 million to $100.2 million for the period through 2065. The change from the updated prior year study, which was in December of 2020, was a $2.1 million decrease for the low end of the range, and a $1.1 million increase for the high end of the range. The change in the estimated undiscounted liability from the updated prior year study at both the low end and the high end of the range reflects our actual experience, our historical data and certain assumptions with respect to events that may occur in the future. Based upon the results of the August 31, 2021 actuarial study, in September 2021 we increased our asbestos liability to $60.9 million, the low end of the range, and recorded an incremental pre-tax provision of $5.3 million in earnings (loss) from discontinued operations in the accompanying statement of operations. Future legal costs, which are expensed as incurred and reported in earnings (loss) from discontinued operations in the accompanying statement of operations, are estimated, according to the August 31, 2021 study, to range from $49.4 million to $99.3 million for the period through 2065. Total operating cash outflows related to discontinued operations, which include settlements, awards of asbestos-related damages and legal costs, net of taxes, were $9.5 million and $5.5 million for the six months ended June 30, 2022 and 2021, 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. Warranties We generally warrant our products against certain manufacturing and other defects. These product warranties are provided for specific periods of time of the product depending on the nature of the product. As of June 30, 2022 and 2021, we have accrued $23.8 million and $18.2 million, respectively, for estimated product warranty claims included in accrued customer returns. The accrued product warranty costs are based primarily on historical experience of actual warranty claims. The following table provides the changes in our product warranties (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Balance, beginning of period $ 20,711 $ 16,948 $ 17,463 $ 17,663 Liabilities accrued for current year sales 30,295 25,162 52,921 45,339 Settlements of warranty claims (27,240 ) (23,897 ) (46,618 ) (44,789 ) Balance, end of period $ 23,766 $ 18,213 $ 23,766 $ 18,213 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Basis of Presentation [Abstract] | |
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 manufacturer and distributor of premium replacement parts utilized in the maintenance, repair and service of vehicles in the automotive aftermarket industry along with a complementary focus on specialized equipment parts for manufacturers across multiple industries around the world. The accompanying unaudited financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form -K for the year ended December The unaudited consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 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 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. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form -Q and Rule - of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year. |
Reclassification | Reclassification Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2022 presentation. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities We Other than the addition of the foregoing accounting policy, “Derivative Instruments and Hedging Activities,” there have been no material changes to our critical accounting policies and estimates from the information provided in Note of the notes to our consolidated financial statements in our Annual Report on Form -K for the year ended December |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Standards that are not yet adopted as of June T he following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted as of June 30, 2022, 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 A SU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting T his 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. E ffective 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 supply chain financing arrangements, we are currently reviewing the optional guidance in the standard to determine its impact upon the discontinuance of LIBOR. At this time, we do not believe that the new guidance, nor the discontinuance of LIBOR, will have a material impact on our consolidated financial statements and related disclosures. |
Business Acquisitions and Inv_2
Business Acquisitions and Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 (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 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 (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 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 Expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Integration Expenses [Abstract] | |
Restructuring and Integration Expense | The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of December 31, 2021 and June 30, 2022 and for the six months ended June 30, 2022, consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2021 $ 79 $ — $ 79 Restructuring and integration costs: Amounts provided for during 2022 — 44 44 Cash payments (16 ) (44 ) (60 ) Reclassification (29 ) — (29 ) Exit activity liability at June 30, 2022 $ 34 $ — $ 34 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventories [Abstract] | |
Inventories | Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) and net realizable value, consist of the following: June 30, 2022 December 31, 2021 (In thousands) Finished goods $ 345,200 $ 296,739 Work in process 17,248 16,010 Raw materials 188,967 156,006 Subtotal 551,415 468,755 Unreturned customer inventories 21,405 22,268 Total inventories $ 572,820 $ 491,023 |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Acquired Intangible Assets [Abstract] | |
Acquired Identifiable Intangible Assets | Acquired identifiable intangible assets consist of the following: June 30, 2022 December 31, 2021 (In thousands) Customer relationships $ 156,321 $ 157,020 Patents, developed technology and intellectual property 14,123 14,123 Trademarks and trade names 8,880 8,880 Non-compete agreements 3,280 3,280 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 183,564 184,263 Less accumulated amortization (1) (82,956 ) (78,932 ) Net acquired intangible assets $ 100,608 $ 105,331 (1) Applies to all intangible assets, except for trademarks and trade names totaling $2.6 million, which have indefinite useful lives and, as such, are not being amortized. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 from the date of acquisition : Balance Sheet Information June 30, 2022 December 31, 2021 Assets Operating lease right-of-use assets $ 39,827 $ 40,469 Liabilities Sundry payables and accrued expenses $ 11,122 $ 10,544 Noncurrent operating lease liabilities 30,039 31,206 Total operating lease liabilities $ 41,161 $ 41,750 Weighted Average Remaining Lease Term Operating leases 4.9 Years 5.3 Years Weighted Average Discount Rate Operating leases 3.1 % 3 % Expense and Cash Flow Information Three Months Ended June 30, 2022 2021 Lease Expense Operating lease expense (a) $ 2,711 $ 2,441 Six Months Ended June 30 2022 2021 Lease Expense Operating lease expense (a) $ 5,541 $ 4,777 Supplemental Cash Flow Information Cash paid for the amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,397 $ 4,733 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 4,458 $ 14,077 (a) Excludes expenses of approximately $0.7 million and $1.1 million for the three and six months ended June 30, 2022, respectively, and approximately $0.3 million and $0.9 million for the comparable periods in 2021, 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. |
Minimum Lease Payments | At June 30, 2022, we are obligated to make minimum lease payments through 2031, under operating leases, which are as follows (in thousands): 2022 $ 5,784 2023 10,788 2024 8,316 2025 6,588 2026 5,780 Thereafter 6,851 Total lease payments $ 44,107 Less: Interest (2,946 ) Present value of lease liabilities $ 41,161 |
Credit Facilities and Long-Te_2
Credit Facilities and Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Summary of Total Debt Outstanding | Total debt outstanding is summarized as follows: June 30, 2022 December 31, 2021 (In thousands) Credit facility – term loan due 2027 $ 100,000 $ — Credit facility – revolver due 2027 164,500 — Senior secured facility – revolver due 2023 — 125,298 Other (1) 2,954 3,138 Total debt $ 267,454 $ 128,436 Current maturities of debt $ 63,954 $ 128,415 Long-term debt 203,500 21 Total debt $ 267,454 $ 128,436 (1) Other includes borrowings under our Polish overdraft facility of Zloty 12.9 million (approximately $2.9 million) and Zloty 12.3 million (approximately $3 million) as of June 30, 2022 and December 31, 2021, respectively. |
Maturities of Debt | As of June 30, 2022, maturities of debt through 2027, assuming no prepayments, are as follows (in thousands): Revolving Credit Facility Term Loan Facility Polish Overdraft Facility and Other Debt Total Remainder of 2022 $ — $ 2,500 $ 2,954 $ 5,454 2023 — 5,000 — 5,000 2024 — 5,000 — 5,000 2025 — 5,000 — 5,000 2026 — 7,500 — 7,500 2027 164,500 75,000 — 239,500 Total $ 164,500 $ 100,000 $ 2,954 $ 267,454 Less: current maturities (56,000 ) (5,000 ) (2,954 ) (63,954 ) Long-term debt $ 108,500 $ 95,000 $ — $ 203,500 |
Schedule of Deferred Financing Costs | Deferred financing costs as of June 30, 2022, assuming no prepayments, are being amortized as follows: (In thousands) Remainder of 2022 $ 257 2023 492 2024 479 2025 471 2026 465 2027 191 Total amortization $ 2,355 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in Accumulated Other Comprehensive Income by Component | Changes in Accumulated Other Comprehensive Income by Component (in thousands) Three Months Ended June 30, 2022 Foreign Currency Translation Unrecognized Postretirement Benefit Costs (Credit) Unrealized derivative gains (losses) Total Balance at March 31, 2022 attributable to SMP $ (8,862 ) $ 47 $ — $ (8,815 ) Other comprehensive income before reclassifications (6,464 ) — 4 (1) (6,460 ) Amounts reclassified from accumulated other comprehensive income — (4 ) 101 97 Other comprehensive income, net (6,464 ) (4 ) 105 (6,363 ) Balance at June 30, 2022 attributable to SMP $ (15,326 ) $ 43 $ 105 $ (15,178 ) Six Months Ended June 30, 2022 Foreign Currency Translation Unrecognized Postretirement Benefit Costs (Credit) Unrealized derivative gains (losses) Total Balance at December 31, 2021 attributable to SMP $ (8,221 ) $ 52 $ — $ (8,169 ) Other comprehensive income before reclassifications (7,105 ) — 4 (1) (7,101 ) Amounts reclassified from accumulated other comprehensive income — (9 ) 101 92 Other comprehensive income, net (7,105 ) (9 ) 105 (7,009 ) Balance at June 30, 2022 attributable to SMP $ (15,326 ) $ 43 $ 105 $ (15,178 ) (1) Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $137,000 ($102,000, net of tax) in the three months and six months ended June 30, 2022, net of cash settlements payments of $132,000 ($98,000, net of tax) in the three months and six months ended June 30, 2022. |
Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications Out of Accumulated Other Comprehensive Income (in thousands) Three Months Ended June 30, Six Months Ended June 30, Details About Accumulated Other Comprehensive Income Components 2022 2022 Derivative cash flow hedge: Unrecognized gain (loss) (1) $ 136 $ 136 Postretirement Benefit Plans: Unrecognized gain (loss) (2) (6 ) (13 ) Total before income tax 130 123 Income tax expense 33 31 Total reclassifications attributable to SMP $ 97 $ 92 (1) Unrecognized accumulated other comprehensive income (loss) related to the cash flow interest rate hedge is reclassified to earnings and reported as part of interest expense in our consolidated statements of operations when the interest payments on the underlying borrowings are recognized. (2) Unrecognized accumulated other comprehensive income (loss) related to our post retirement plans is reclassified to earnings and included in the computation of net periodic postretirement benefit costs, whic |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stock-Based Compensation Plans [Abstract] | |
Restricted and Performance-based Share Activity | Our : Shares Weighted Average Grant Date Fair Value Per Share Balance at 2021 807,019 $ 34.92 Granted 8,125 33.81 Vested (13,300 ) 39.80 Forfeited (5,500 ) 42.24 Balance at June 30 2022 796,344 $ 34.78 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurements [Abstract] | |
Summary of Estimated Fair Values, Carrying Amounts and Classification under Fair Value Hierarchy | The following is a summary of the estimated fair values, carrying amounts, and classification under the fair value hierarchy of our financial instruments at June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Fair Value Hierarchy Fair Value Carrying Amount Fair Value Carrying Amount Cash and cash equivalents LEVEL 1 $ 14,186 $ 14,186 $ 21,755 $ 21,755 Deferred compensation LEVEL 1 20,217 20,217 23,623 23,623 Short term borrowings LEVEL 1 63,954 63,954 128,415 128,415 Long-term debt LEVEL 1 203,500 203,500 21 21 Cash flow interest rate swap LEVEL 2 137 137 — — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliations of Earnings Available to Common Stockholders and Shares used in Calculating Basic and Dilutive Net Earnings per Common Share | The following are reconciliations of the net earnings attributable to SMP and the shares used in calculating basic and dilutive net earnings per common share attributable to SMP (in s, except per share data): Three Months Ended June 30, Six June 30, 2022 2021 2022 2021 N et Earnings Attributable to SMP - Earnings from continuing operations $ 20,792 $ 27,995 $ 41,354 $ 50,159 Loss from discontinued operations (1,666 ) (853 ) (2,782 ) (2,017 ) Net earnings attributable to SMP $ 19,126 $ 27,142 $ 38,572 $ 48,142 Basic Net Earnings Per Common Share Attributable to SMP - Earnings from continuing operations per common share $ 0.96 $ 1.26 $ 1.89 $ 2.25 Loss from discontinued operations per common share (0.08 ) (0.04 ) (0.13 ) (0.09 ) Net earnings per common share attributable to SMP $ 0.88 $ 1.22 $ 1.76 $ 2.16 Weighted average common shares outstanding 21,758 22,199 21,868 22,258 Diluted Net Earnings Per Common Share Attributable to SMP - Earnings from continuing operations per common share $ 0.93 $ 1.23 $ 1.85 $ 2.21 Loss from discontinued operations per common share (0.07 ) (0.03 ) (0.13 ) (0.09 ) Net earnings per common share attributable to SMP $ 0.86 $ 1.20 $ 1.72 $ 2.12 Weighted average common shares outstanding 21,758 22,199 21,868 22,258 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock and performance-based stock 498 487 505 483 Weighted average common shares outstanding – Diluted 22,256 22,686 22,373 22,741 |
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 s): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Restricted and performance-based shares 268 239 262 258 |
Industry Segments (Tables)
Industry Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Industry Segments [Abstract] | |
Sales and Operating Income by Operating Segments | The following tables show our net sales, intersegment revenue and operating income for each reportable segment (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net Sales (a) Engine Management $ 241,873 $ 233,216 $ 481,130 $ 445,234 Temperature Control 114,432 106,471 195,753 168,944 All Other 3,107 2,389 5,360 4,451 Consolidated $ 359,412 $ 342,076 $ 682,243 $ 618,629 Intersegment Revenue (a) Engine Management $ 5,007 $ 5,185 $ 10,796 $ 10,544 Temperature Control 2,831 3,125 6,047 4,972 All Other (7,838 ) (8,310 ) (16,843 ) (15,516 ) Consolidated $ — $ — $ — $ — Operating Income Engine Management $ 21,100 $ 30,384 $ 47,816 $ 61,498 Temperature Control 12,265 13,229 17,483 16,821 All Other (5,472 ) (6,688 ) (10,491 ) (12,070 ) Consolidated $ 27,893 $ 36,925 $ 54,808 $ 66,249 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Net Sales [Abstract] | |
Disaggregation of Net Sales | The following tables provide disaggregation of net sales information for the three months and six months ended June 30, 2022 and 2021 (in thousands): Three months ended June 30 2022 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 214,444 $ 108,154 $ — $ 322,598 Canada 6,257 5,873 3,107 15,237 Europe 10,378 69 — 10,447 Mexico 6,666 105 — 6,771 Asia 2,634 30 — 2,664 Other foreign 1,494 201 — 1,695 Total $ 241,873 $ 114,432 $ 3,107 $ 359,412 Major Product Group: Ignition, emission control, fuel and safety related system products $ 202,823 $ — $ 2,387 $ 205,210 Wire and cable 39,050 — 52 39,102 Compressors — 72,063 243 72,306 Other climate control parts — 42,369 425 42,794 Total $ 241,873 $ 114,432 $ 3,107 $ 359,412 Major Sales Channel: Aftermarket $ 173,361 $ 103,652 $ 3,107 $ 280,120 OE/OES 59,984 10,094 — 70,078 Export 8,528 686 — 9,214 Total $ 241,873 $ 114,432 $ 3,107 $ 359,412 Three months ended June 30 2021 Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 202,274 $ 101,241 $ — $ 303,515 Canada 7,433 4,632 2,389 14,454 Europe 5,252 161 — 5,413 Mexico 6,460 115 — 6,575 Asia 9,447 68 — 9,515 Other foreign 2,350 254 — 2,604 Total $ 233,216 $ 106,471 $ 2,389 $ 342,076 Major Product Group: Ignition, emission control, fuel and safety related system products $ 192,486 $ — $ 1,832 $ 194,318 Wire and cable 40,730 — (142 ) 40,588 Compressors — 69,577 386 69,963 Other climate control parts — 36,894 313 37,207 Total $ 233,216 $ 106,471 $ 2,389 $ 342,076 Major Sales Channel: Aftermarket $ 172,676 $ 97,763 $ 2,389 $ 272,828 OE/OES 53,776 8,104 — 61,880 Export 6,764 604 — 7,368 Total $ 233,216 $ 106,471 $ 2,389 $ 342,076 Six months ended June 30, 2022 (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 416,267 $ 183,603 $ — $ 599,870 Canada 14,397 11,189 5,360 30,946 Europe 18,085 114 — 18,199 Mexico 15,007 189 — 15,196 Asia 14,126 192 — 14,318 Other foreign 3,248 466 — 3,714 Total $ 481,130 $ 195,753 $ 5,360 $ 682,243 Major Product Group: Ignition, emission control, fuel and safety related system products $ 403,177 $ — $ 4,707 $ 407,884 Wire and cable 77,953 — (31 ) 77,922 Compressors — 115,340 192 115,532 Other climate control parts — 80,413 492 80,905 Total $ 481,130 $ 195,753 $ 5,360 $ 682,243 Major Sales Channel: Aftermarket $ 338,486 $ 175,931 $ 5,360 $ 519,777 OE/OES 126,541 18,588 — 145,129 Export 16,103 1,234 — 17,337 Total $ 481,130 $ 195,753 $ 5,360 $ 682,243 Six June 30 2021 (a) Engine Management Temperature Control Other (b) Total Geographic Area: United States $ 383,375 $ 159,977 $ — $ 543,352 Canada 16,007 7,958 4,451 28,416 Europe 10,401 217 — 10,618 Mexico 12,607 180 — 12,787 Asia 19,082 144 — 19,226 Other foreign 3,762 468 — 4,230 Total $ 445,234 $ 168,944 $ 4,451 $ 618,629 Major Product Group: Ignition, emission control, fuel and safety related system products $ 366,152 $ — $ 3,501 $ 369,653 Wire and cable 79,082 — (135 ) 78,947 Compressors — 102,951 404 103,355 Other climate control parts — 65,993 681 66,674 Total $ 445,234 $ 168,944 $ 4,451 $ 618,629 Major Sales Channel: Aftermarket $ 337,309 $ 153,448 $ 4,451 $ 495,208 OE/OES 94,821 14,484 — 109,305 Export 13,104 1,012 — 14,116 Total $ 445,234 $ 168,944 $ 4,451 $ 618,629 (a) Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. (b) Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments as well as sales from our Canadian business unit that does not meet the criteria of a reportable operating segment. Intersegment wire and cable sales for the six months ended June 30, 2022, and for the three and six months ended June 30, 2021 exceeded third party sales from our Canadian business unit. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies [Abstract] | |
Changes in Product Warranties | The following table provides the changes in our product warranties (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Balance, beginning of period $ 20,711 $ 16,948 $ 17,463 $ 17,663 Liabilities accrued for current year sales 30,295 25,162 52,921 45,339 Settlements of warranty claims (27,240 ) (23,897 ) (46,618 ) (44,789 ) Balance, end of period $ 23,766 $ 18,213 $ 23,766 $ 18,213 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 30, 2022 |
Basis of Presentation [Abstract] | |
Equity ownership in entities included in consolidated financial statements, minimum | 50% |
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 | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2021 USD ($) | Sep. 30, 2021 EUR (€) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Assets acquired and liabilities assumed [Abstract] | ||||||
Goodwill | $ 131,125 | $ 131,125 | $ 131,652 | |||
Stabil [Member] | ||||||
Business Combination, Description [Abstract] | ||||||
Percentage of entity acquired | 100% | |||||
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 | [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 | |||||
Cash acquired | $ 900 | |||||
Incremental revenues from acquisition date | $ 5,700 | $ 11,500 | ||||
Stabil [Member] | Customer Relationships [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Estimated useful life of intangible assets | 20 years | |||||
[1]The other current assets balance includes $0.9 million of cash acquired. |
Business Acquisitions and Inv_4
Business Acquisitions and Investments, Acquisition of Capital Stock of Trumpet Holdings, Inc. (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2021 | Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | ||
Assets acquired and liabilities assumed [Abstract] | |||||
Goodwill | $ 131,125 | $ 131,125 | $ 131,652 | ||
Trombetta [Member] | |||||
Business Combination, Description [Abstract] | |||||
Percentage of entity acquired | 100% | ||||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||||
Purchase Price | $ 111,711 | ||||
Assets acquired and liabilities assumed [Abstract] | |||||
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 | ||||
Cash acquired | 4,600 | ||||
Incremental revenues from acquisition date | $ 10,800 | $ 27,400 | |||
Trombetta [Member] | Customer Relationships [Member] | |||||
Assets acquired and liabilities assumed [Abstract] | |||||
Intangible assets | 39,400 | ||||
Estimated useful life of intangible assets | 20 years | ||||
Trombetta [Member] | Developed Technology [Member] | |||||
Assets acquired and liabilities assumed [Abstract] | |||||
Intangible assets | 13,400 | ||||
Estimated useful life of intangible assets | 15 years | ||||
Trombetta [Member] | Trade Names [Member] | |||||
Assets acquired and liabilities assumed [Abstract] | |||||
Intangible assets | $ 1,900 | ||||
Estimated useful life of intangible assets | 10 years | ||||
Trombetta [Member] | Trombetta Asia, Ltd [Member] | |||||
Business Combination, Description [Abstract] | |||||
Percentage of entity acquired | 70% | ||||
[1]The other current assets balance includes $4.6 million of cash acquired. |
Business Acquisitions and Inv_5
Business Acquisitions and Investments, Acquisition of Particulate Matter Sensor Business of Stoneridge, Inc. (Details) - Soot Sensor [Member] - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended |
Jun. 30, 2022 | Nov. 30, 2021 | |
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] | ||
Incremental revenues from acquisition date | $ 2,300 | |
Customer Relationships [Member] | ||
Assets acquired and liabilities assumed [Abstract] | ||
Intangible assets | $ 800 | |
Business Combination, Description [Abstract] | ||
Estimated useful life of intangible assets | 10 years |
Restructuring and Integration_3
Restructuring and Integration Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring and integration activities [Roll Forward] | ||||
Exit activity liability, beginning of period | $ 79 | |||
Restructuring and integration costs provided for during 2022 | $ 3 | $ 0 | 44 | $ 0 |
Cash payments | (60) | |||
Reclassification | (29) | |||
Exit activity liability, end of period | 34 | 34 | ||
Soot Sensor Product Line Relocation [Member] | ||||
Restructuring and integration activities [Roll Forward] | ||||
Cash payments | (44) | |||
Plant Rationalization Program [Member] | ||||
Restructuring and integration activities [Roll Forward] | ||||
Cash payments | (16) | |||
Exit activity liability, end of period | 34 | 34 | ||
Workforce Reduction [Member] | ||||
Restructuring and integration activities [Roll Forward] | ||||
Exit activity liability, beginning of period | 79 | |||
Restructuring and integration costs provided for during 2022 | 0 | |||
Cash payments | (16) | |||
Reclassification | (29) | |||
Exit activity liability, end of period | 34 | 34 | ||
Other Exit Costs [Member] | ||||
Restructuring and integration activities [Roll Forward] | ||||
Exit activity liability, beginning of period | 0 | |||
Restructuring and integration costs provided for during 2022 | 44 | |||
Cash payments | (44) | |||
Reclassification | 0 | |||
Exit activity liability, end of period | $ 0 | $ 0 |
Sale of Receivables (Details)
Sale of Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Sale of Receivables [Abstract] | |||||
Sale of receivables to financial institutions | $ 218.4 | $ 203.1 | $ 374.1 | $ 394.4 | |
Receivables not yet sold | 10.8 | 10.8 | $ 1.3 | ||
Charge related to sale of receivables | $ 7.7 | $ 3 | $ 11.2 | $ 5.7 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Inventories [Abstract] | ||
Finished goods | $ 345,200 | $ 296,739 |
Work in process | 17,248 | 16,010 |
Raw materials | 188,967 | 156,006 |
Subtotal | 551,415 | 468,755 |
Unreturned customer inventories | 21,405 | 22,268 |
Total inventories | $ 572,820 | $ 491,023 |
Acquired Intangible Assets, Ide
Acquired Intangible Assets, Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | $ 183,564 | $ 184,263 | |
Less accumulated amortization | [1] | (82,956) | (78,932) |
Net acquired intangible assets | 100,608 | 105,331 | |
Customer Relationships [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 156,321 | 157,020 | |
Patents, Developed Technology and Intellectual Property [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 14,123 | 14,123 | |
Trademarks and Trade Names [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 8,880 | 8,880 | |
Acquired indefinite-lived intangible assets | 2,600 | ||
Non-compete Agreements [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 3,280 | 3,280 | |
Supply Agreements [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | 800 | 800 | |
Leaseholds [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Total acquired intangible assets | $ 160 | $ 160 | |
[1]Applies to all intangible assets, except for trademarks and trade names totaling $2.6 million, which have indefinite useful lives and, as such, are not being amortized. |
Acquired Intangible Assets, Amo
Acquired Intangible Assets, Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Amortization of acquired intangible assets [Abstract] | ||||
Amortization expense | $ 2.2 | $ 2.1 | $ 4.3 | $ 4.1 |
Estimated amortization expense, remainder of 2022 | 4.3 | 4.3 | ||
Estimated amortization expense in year 2023 | 8.3 | 8.3 | ||
Estimated amortization expense in year 2024 | 8.3 | 8.3 | ||
Estimated amortization expense in year 2025 | 8.3 | 8.3 | ||
Estimated amortization expense in years 2026 through 2041 | $ 68.8 | $ 68.8 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Quantitative Lease Disclosures [Abstract] | ||||||
Renewal option period | 5 years | 5 years | ||||
Assets [Abstract] | ||||||
Operating lease right-of-use assets | $ 39,827 | $ 39,827 | $ 40,469 | |||
Liabilities [Abstract] | ||||||
Sundry payables and accrued expenses | 11,122 | 11,122 | 10,544 | |||
Noncurrent operating lease liabilities | 30,039 | 30,039 | 31,206 | |||
Total operating lease liabilities | $ 41,161 | $ 41,161 | $ 41,750 | |||
Operating Leases [Abstract] | ||||||
Weighted average remaining lease term | 4 years 10 months 24 days | 4 years 10 months 24 days | 5 years 3 months 18 days | |||
Weighted average discount rate | 3.10% | 3.10% | 3% | |||
Lease Expense [Abstract] | ||||||
Operating lease expense | [1] | $ 2,711 | $ 2,441 | $ 5,541 | $ 4,777 | |
Excluded expenses of non lease | 700 | $ 300 | 1,100 | 900 | ||
Cash Paid for the amounts included in the measurement of lease liabilities [Abstract] | ||||||
Operating cash flows from operating leases | 5,397 | 4,733 | ||||
Right-of-use assets obtained in exchange for new lease obligations [Abstract] | ||||||
Operating leases | 4,458 | $ 14,077 | ||||
Minimum Lease Payments [Abstract] | ||||||
2022 | 5,784 | 5,784 | ||||
2023 | 10,788 | 10,788 | ||||
2024 | 8,316 | 8,316 | ||||
2025 | 6,588 | 6,588 | ||||
2026 | 5,780 | 5,780 | ||||
Thereafter | 6,851 | 6,851 | ||||
Total lease payments | 44,107 | 44,107 | ||||
Less: Interest | (2,946) | (2,946) | ||||
Total operating lease liabilities | $ 41,161 | $ 41,161 | $ 41,750 | |||
Maximum [Member] | ||||||
Quantitative Lease Disclosures [Abstract] | ||||||
Remaining operating lease terms | 10 years | 10 years | ||||
[1]Excludes expenses of approximately $0.7 million and $1.1 million for the three and six months ended June 30, 2022, respectively, and approximately $0.3 million and $0.9 million for the comparable periods in 2021, respectively, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material. |
Credit Facilities and Long-Te_3
Credit Facilities and Long-Term Debt, Total Debt Outstanding (Details) $ in Thousands, zł in Millions | Jun. 30, 2022 USD ($) | Jun. 30, 2022 PLN (zł) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 PLN (zł) | |
Debt Instruments [Abstract] | |||||
Total debt | $ 267,454 | $ 128,436 | |||
Current maturities of debt | 63,954 | 128,415 | |||
Long-term debt | 203,500 | 21 | |||
Credit Facility - Term Loan Due 2027 [Member] | |||||
Debt Instruments [Abstract] | |||||
Total debt | 100,000 | 0 | |||
Current maturities of debt | 5,000 | ||||
Long-term debt | 95,000 | ||||
Credit Facility - Revolver Due 2027 [Member] | |||||
Debt Instruments [Abstract] | |||||
Total debt | 164,500 | 0 | |||
Current maturities of debt | 56,000 | ||||
Long-term debt | 108,500 | ||||
Senior Secured Facility - Revolver Due 2023 [Member] | |||||
Debt Instruments [Abstract] | |||||
Total debt | 0 | 125,298 | |||
Other [Member] | |||||
Debt Instruments [Abstract] | |||||
Total debt | [1] | 2,954 | 3,138 | ||
Current maturities of debt | 2,954 | ||||
Long-term debt | 0 | ||||
Line of Credit Facility [Abstract] | |||||
Overdraft facility | $ 2,900 | zł 12.9 | $ 3,000 | zł 12.3 | |
[1]Other includes borrowings under our Polish overdraft facility of Zloty 12.9 million (approximately $2.9 million) and Zloty 12.3 million (approximately $3 million) as of June 30, 2022 and December 31, 2021, respectively. |
Credit Facilities and Long-Te_4
Credit Facilities and Long-Term Debt, Term Loan and Revolving Credit Facilities (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) Installment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) | |
Line of Credit Facility [Abstract] | ||||
Current portion of debt | $ 56,000 | $ 125,298 | ||
Senior Secured Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | 300,000 | 250,000 | ||
Line of credit facility, accordion feature | $ 50,000 | |||
Outstanding borrowings under credit facility | 125,300 | |||
Outstanding letters of credit | $ 2,600 | |||
Weighted average interest rate | 1.40% | |||
Senior Secured 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 | $ 1,000 | $ 1,100 | ||
Senior Secured Revolving Credit Facility [Member] | Direct Borrowings [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Outstanding borrowings under credit facility | $ 125,000 | |||
Weighted average interest rate | 1.40% | |||
Term Loan and Revolving Credit Facilities [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | $ 500,000 | |||
Maturity date | Jun. 01, 2027 | |||
Frequency of periodic payment | quarterly | |||
Debt instrument, extension period | 1 year | |||
Borrowing base | $ 168,000 | |||
Maximum consolidated EBITDA | 1 | |||
Net Leverage Ratio | 250% | |||
Outstanding borrowings under credit facility | $ 264,500 | |||
Current portion of debt | 61,000 | |||
Long-term debt | 203,500 | |||
Outstanding letters of credit | $ 2,600 | |||
Weighted average interest rate | 3.50% | |||
Term Loan and Revolving Credit Facilities [Member] | SOFR [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 0.10% | |||
Term of variable rate | 1 month | |||
Interest rate periods | one, three or six months | |||
Outstanding borrowings under credit facility | $ 260,000 | |||
Weighted average interest rate | 3.50% | |||
Term Loan and Revolving Credit Facilities [Member] | Federal Funds Rate [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 0.50% | |||
Term Loan and Revolving Credit Facilities [Member] | Term Benchmark Borrowings [Member] | Minimum [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 1% | |||
Term Loan and Revolving Credit Facilities [Member] | Term Benchmark Borrowings [Member] | Maximum [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 2% | |||
Term Loan and Revolving Credit Facilities [Member] | Alternate Base Rate [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 1% | |||
Outstanding borrowings under credit facility | $ 4,500 | |||
Weighted average interest rate | 5.30% | |||
Average daily loan balance outstanding | $ 10,800 | |||
Term Loan and Revolving Credit Facilities [Member] | Alternate Base Rate [Member] | Minimum [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 0% | |||
Term Loan and Revolving Credit Facilities [Member] | Alternate Base Rate [Member] | Maximum [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 1% | |||
Term Loan Facility [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | $ 100,000 | |||
Term Loan Facility [Member] | Maximum [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Number of extensions of maturity date | Installment | 2 | |||
Term Loan Facility [Member] | First Four Years [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Periodic payment amortization percentage | 1.25% | |||
Term Loan Facility [Member] | Fifth Year [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Periodic payment amortization percentage | 2.50% | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | $ 400,000 | |||
Letter of Credit Sublimit [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | 25,000 | |||
Swing Line Loans [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | 25,000 | |||
Interest Rate Swap Agreement [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | $ 100,000 | |||
Period of agreement | 7 years | |||
Outstanding borrowings under credit facility | $ 100,000 | |||
Interest Rate Swap Agreement [Member] | SOFR [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Margin on variable rate | 1.50% | |||
Term of variable rate | 1 month |
Credit Facilities and Long-Te_5
Credit Facilities and Long-Term Debt, Polish Overdraft Facility (Details) - Polish Overdraft Facility [Member] zł in Millions, $ in Millions | 6 Months Ended | |||||
Jun. 30, 2022 PLN (zł) | Jun. 30, 2022 USD ($) | Feb. 28, 2022 PLN (zł) | Feb. 28, 2022 USD ($) | Dec. 31, 2021 PLN (zł) | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Abstract] | ||||||
Maximum borrowing capacity | zł 30 | $ 6.7 | ||||
Overdraft facility initiation date | Mar. 01, 2022 | |||||
Overdraft facility renewal period | 3 months | |||||
Overdraft facility cancellation period | 30 days | |||||
Overdraft facility | zł 12.9 | $ 2.9 | zł 12.3 | $ 3 | ||
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, Maturities of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Maturities of Debt [Abstract] | |||
Remainder of 2022 | $ 5,454 | ||
2023 | 5,000 | ||
2024 | 5,000 | ||
2025 | 5,000 | ||
2026 | 7,500 | ||
2027 | 239,500 | ||
Total debt | 267,454 | $ 128,436 | |
Less: current maturities | (63,954) | (128,415) | |
Long-term debt | 203,500 | 21 | |
Revolving Credit Facility [Member] | |||
Maturities of Debt [Abstract] | |||
Remainder of 2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 164,500 | ||
Total debt | 164,500 | 0 | |
Less: current maturities | (56,000) | ||
Long-term debt | 108,500 | ||
Term Loan Facility [Member] | |||
Maturities of Debt [Abstract] | |||
Remainder of 2022 | 2,500 | ||
2023 | 5,000 | ||
2024 | 5,000 | ||
2025 | 5,000 | ||
2026 | 7,500 | ||
2027 | 75,000 | ||
Total debt | 100,000 | 0 | |
Less: current maturities | (5,000) | ||
Long-term debt | 95,000 | ||
Polish Overdraft Facility and Other Debt [Member] | |||
Maturities of Debt [Abstract] | |||
Remainder of 2022 | 2,954 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
Total debt | [1] | 2,954 | $ 3,138 |
Less: current maturities | (2,954) | ||
Long-term debt | $ 0 | ||
[1]Other includes borrowings under our Polish overdraft facility of Zloty 12.9 million (approximately $2.9 million) and Zloty 12.3 million (approximately $3 million) as of June 30, 2022 and December 31, 2021, respectively. |
Credit Facilities and Long-Te_7
Credit Facilities and Long-Term Debt, Deferred Financing Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
Deferred Financing Costs [Abstract] | |||
Deferred financing costs | $ 2,355 | $ 400 | |
Write off of unamortized deferred financing costs | 40,000 | ||
Deferred Finance Costs, Amortization [Abstract] | |||
Remainder of 2022 | 257 | ||
2023 | 492 | ||
2024 | 479 | ||
2025 | 471 | ||
2026 | 465 | ||
2027 | 191 | ||
Total amortization | 2,355 | $ 400 | |
Term Loan and Revolving Credit Facilities [Member] | |||
Deferred Financing Costs [Abstract] | |||
Deferred financing costs | 1,900 | $ 200 | |
Deferred Finance Costs, Amortization [Abstract] | |||
Total amortization | $ 1,900 | $ 200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income, Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | ||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Balance attributable to SMP | $ 601,580 | ||
Other comprehensive income before reclassifications | $ (6,460) | (7,101) | |
Amounts reclassified from accumulated other comprehensive income | 97 | 92 | |
Other comprehensive income, net | (6,363) | (7,009) | |
Balance attributable to SMP | 601,586 | 601,586 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Unrecognized gain relating to change in fair value of cash flow interest rate hedge | 137 | 137 | |
Unrecognized gain relating to change in fair value of cash flow interest rate hedge, net of tax | 102 | 102 | |
Unrecognized gain, net of cash settlements payments | 132 | 132 | |
Unrecognized gain, net of cash settlements payments, net of tax | 98 | 98 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Balance attributable to SMP | (8,815) | (8,169) | |
Balance attributable to SMP | (15,178) | (15,178) | |
Foreign Currency Translation [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Balance attributable to SMP | (8,862) | (8,221) | |
Other comprehensive income before reclassifications | (6,464) | (7,105) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Other comprehensive income, net | (6,464) | (7,105) | |
Balance attributable to SMP | (15,326) | (15,326) | |
Unrecognized Postretirement Benefit Costs (Credit) [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Balance attributable to SMP | 47 | 52 | |
Other comprehensive income before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | (4) | (9) | |
Other comprehensive income, net | (4) | (9) | |
Balance attributable to SMP | 43 | 43 | |
Unrealized Derivative Gains (Losses) [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Balance attributable to SMP | 0 | 0 | |
Other comprehensive income before reclassifications | [1] | 4 | 4 |
Amounts reclassified from accumulated other comprehensive income | 101 | 101 | |
Other comprehensive income, net | 105 | 105 | |
Balance attributable to SMP | $ 105 | $ 105 | |
[1]Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $137,000 ($102,000, net of tax) in the three months and six months ended June 30, 2022, net of cash settlements payments of $132,000 ($98,000, net of tax) in the three months and six months ended June 30, 2022. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income, Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Details About Accumulated Other Comprehensive Income Components [Abstract] | |||||
Interest expense | $ 1,821 | $ 495 | $ 2,626 | $ 704 | |
Other non-operating income, net | 1,927 | 832 | 3,376 | 1,467 | |
Earnings from continuing operations before taxes | 27,999 | 37,262 | 55,558 | 67,012 | |
Income tax expense | 7,122 | 9,248 | 14,127 | 16,834 | |
Net earnings attributable to SMP | [1] | 19,126 | $ 27,142 | 38,572 | $ 48,142 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Details About Accumulated Other Comprehensive Income Components [Abstract] | |||||
Earnings from continuing operations before taxes | 130 | 123 | |||
Income tax expense | 33 | 31 | |||
Net earnings attributable to SMP | 97 | 92 | |||
Unrealized Derivative Gains (Losses) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Details About Accumulated Other Comprehensive Income Components [Abstract] | |||||
Interest expense | [2] | 136 | 136 | ||
Unrecognized Postretirement Benefit Costs (Credit) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Details About Accumulated Other Comprehensive Income Components [Abstract] | |||||
Other non-operating income, net | [3] | $ (6) | $ (13) | ||
[1]Throughout this Form 10-Q, “SMP” refers to Standard Motor Products, Inc. and subsidiaries.[2]Unrecognized accumulated other comprehensive income (loss) related to the cash flow interest rate hedge is reclassified to earnings and reported as part of interest expense in our consolidated statements of operations when the interest payments on the underlying borrowings are recognized.[3]Unrecognized accumulated other comprehensive income (loss) related to our post retirement plans is reclassified to earnings and included in the computation of net periodic postretirement benefit costs, which are included in other non-operating income, net in our consolidated statements of operations (see Note 12, “Employee Benefits,” for additional information). |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) Type $ / shares shares | Jun. 30, 2021 USD ($) | |
Restricted and Performance Stock Grants [Abstract] | ||
Number of types of restricted stock | Type | 2 | |
Additional Disclosures [Abstract] | ||
Compensation expense, gross | $ | $ 4,465 | $ 4,381 |
Restricted Shares [Member] | Minimum [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Expiration of vesting period | 3 years | |
Restricted Shares [Member] | Employees [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Estimated forfeitures | 5% | |
Restricted Shares [Member] | Executives [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Estimated forfeitures | 0% | |
Restricted Shares [Member] | Directors [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Estimated forfeitures | 0% | |
Restricted Shares [Member] | Age 60 [Member] | Executives [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Vesting percentage | 25% | |
Vesting period before reaching age limit | 2 months | |
Restricted Shares [Member] | Age 63 [Member] | Executives [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Vesting percentage | 25% | |
Vesting period before reaching age limit | 2 months | |
Restricted Shares [Member] | Age 65 [Member] | Executives [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Vesting percentage | 100% | |
Vesting period before reaching age limit | 2 months | |
Performance-based Shares [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Measuring period for performance-based shares | 3 years | |
Performance-based Shares [Member] | Minimum [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Expiration of vesting period | 3 years | |
Restricted and Performance-Based Shares [Member] | ||
Restricted and performance-based stock, shares [Roll Forward] | ||
Beginning of period (in shares) | 807,019 | |
Granted (in shares) | 8,125 | |
Vested (in shares) | (13,300) | |
Forfeited (in shares) | (5,500) | |
End of period (in shares) | 796,344 | |
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward] | ||
Beginning of period (in dollars per share) | $ / shares | $ 34.92 | |
Granted (in dollars per share) | $ / shares | 33.81 | |
Vested (in dollars per share) | $ / shares | 39.80 | |
Forfeited (in dollars per share) | $ / shares | 42.24 | |
End of period (in dollars per share) | $ / shares | $ 34.78 | |
Additional Disclosures [Abstract] | ||
Compensation expense, gross | $ | $ 3,900 | 4,000 |
Compensation expense, net of tax | $ | 2,900 | $ 3,000 |
Unamortized compensation expense | $ | $ 13,300 | |
Restricted and Performance-Based Shares [Member] | Employees [Member] | ||
Additional Disclosures [Abstract] | ||
Weighted average period of recognition for unrecognized compensation expense | 4 years 2 months 12 days | |
Restricted and Performance-Based Shares [Member] | Directors [Member] | ||
Additional Disclosures [Abstract] | ||
Weighted average period of recognition for unrecognized compensation expense | 9 months 21 days | |
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Minimum [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Post vesting holding period for restricted and performance shares issued | 1 year | |
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Maximum [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Post vesting holding period for restricted and performance shares issued | 2 years | |
2016 Omnibus Incentive Plan [Member] | Restricted and Performance-Based Shares [Member] | Maximum [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Shares authorized for issuance (in shares) | 2,050,000 |
Employee Benefits (Details)
Employee Benefits (Details) $ in Millions | 1 Months Ended | 6 Months Ended |
Mar. 31, 2022 USD ($) | Jun. 30, 2022 Employee shares | |
Benefit Plan [Abstract] | ||
Number of former union employees covered by the plan | Employee | 14 | |
Supplemental Executive Retirement Plan [Member] | ||
Defined Contribution Pension and Other Postretirement Plans [Abstract] | ||
Employer discretionary contribution amount | $ | $ 0.8 | |
Employee Stock Ownership Plan and Trust (ESOP) [Member] | ||
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract] | ||
Additional shares contributed to ESOP (in shares) | 48,200 | |
Shares released from trust (in shares) | 48,200 | |
Total remaining balance of shares in the ESOP (in shares) | 200 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) $ in Thousands | 1 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Interest Rate Swap Agreement [Member] | ||
Notional Disclosures [Abstract] | ||
Derivative term of contract | 7 years | |
Borrowings under credit agreement | $ 100,000 | $ 100,000 |
Fixed interest rate | 2.683% | 2.683% |
Derivative, credit spread adjustment percentage | 0.10% | |
Interest Rate Swap Agreement [Member] | SOFR [Member] | ||
Notional Disclosures [Abstract] | ||
Term of variable rate | 1 month | |
Margin on variable rate | 1.50% | |
Interest Rate Swap [Member] | ||
Notional Disclosures [Abstract] | ||
Derivative term of contract | 7 years | |
Derivative, notional amount | $ 100,000 | $ 100,000 |
Derivative contract, maturity date | May 31, 2029 | |
Derivative fair value | $ 137 | $ 137 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value [Member] | LEVEL 1 [Member] | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash and cash equivalents | $ 14,186 | $ 21,755 |
Deferred compensation | 20,217 | 23,623 |
Short term borrowings | 63,954 | 128,415 |
Long-term debt | 203,500 | 21 |
Fair Value [Member] | LEVEL 2 [Member] | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash flow interest rate swap | 137 | 0 |
Carrying Amount [Member] | LEVEL 1 [Member] | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash and cash equivalents | 14,186 | 21,755 |
Deferred compensation | 20,217 | 23,623 |
Short term borrowings | 63,954 | 128,415 |
Long-term debt | 203,500 | 21 |
Carrying Amount [Member] | LEVEL 2 [Member] | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash flow interest rate swap | $ 137 | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Net Earnings Attributable to SMP [Abstract] | |||||
Earnings from continuing operations | $ 20,792 | $ 27,995 | $ 41,354 | $ 50,159 | |
Loss from discontinued operations | (1,666) | (853) | (2,782) | (2,017) | |
Net earnings attributable to SMP | [1] | $ 19,126 | $ 27,142 | $ 38,572 | $ 48,142 |
Basic Net Earnings Per Common Share Attributable to SMP [Abstract] | |||||
Earnings from continuing operations per common share (in dollars per share) | $ 0.96 | $ 1.26 | $ 1.89 | $ 2.25 | |
Loss from discontinued operations per common share (in dollars per share) | (0.08) | (0.04) | (0.13) | (0.09) | |
Net earnings per common share - Basic (in dollars per share) | $ 0.88 | $ 1.22 | $ 1.76 | $ 2.16 | |
Weighted average common shares outstanding (in shares) | 21,757,998 | 22,198,545 | 21,867,644 | 22,257,922 | |
Diluted Net Earnings Per Common Share Attributable to SMP [Abstract] | |||||
Earnings from continuing operations per common share (in dollars per share) | $ 0.93 | $ 1.23 | $ 1.85 | $ 2.21 | |
Loss from discontinued operations per common share (in dollars per share) | (0.07) | (0.03) | (0.13) | (0.09) | |
Net earnings per common share - Diluted (in dollars per share) | $ 0.86 | $ 1.20 | $ 1.72 | $ 2.12 | |
Weighted average common shares outstanding (in shares) | 21,757,998 | 22,198,545 | 21,867,644 | 22,257,922 | |
Plus incremental shares from assumed conversions [Abstract] | |||||
Dilutive effect of restricted stock and performance-based stock (in shares) | 498,000 | 487,000 | 505,000 | 483,000 | |
Weighted average common shares outstanding - Diluted (in shares) | 22,255,642 | 22,686,384 | 22,372,702 | 22,741,171 | |
Restricted and Performance-Based Shares [Member] | |||||
Earnings Per Share [Abstract] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 268,000 | 239,000 | 262,000 | 258,000 | |
[1]Throughout this Form 10-Q, “SMP” refers to Standard Motor Products, Inc. and subsidiaries. |
Industry Segments (Details)
Industry Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Segment | Jun. 30, 2021 USD ($) | ||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Number of reportable operating segments | Segment | 2 | ||||
Net sales | [1] | $ 359,412 | $ 342,076 | $ 682,243 | $ 618,629 |
Operating Income (Loss) | 27,893 | 36,925 | 54,808 | 66,249 | |
Intersegment Revenues [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 0 | 0 | 0 | 0 |
Engine Management [Member] | Reportable Segments [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 241,873 | 233,216 | 481,130 | 445,234 |
Operating Income (Loss) | 21,100 | 30,384 | 47,816 | 61,498 | |
Engine Management [Member] | Intersegment Revenues [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 5,007 | 5,185 | 10,796 | 10,544 |
Temperature Control [Member] | Reportable Segments [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 114,432 | 106,471 | 195,753 | 168,944 |
Operating Income (Loss) | 12,265 | 13,229 | 17,483 | 16,821 | |
Temperature Control [Member] | Intersegment Revenues [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 2,831 | 3,125 | 6,047 | 4,972 |
All Other [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 3,107 | 2,389 | 5,360 | 4,451 |
Operating Income (Loss) | (5,472) | (6,688) | (10,491) | (12,070) | |
All Other [Member] | Intersegment Revenues [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | $ (7,838) | $ (8,310) | $ (16,843) | $ (15,516) |
[1]Segment net sales include intersegment sales in our Engine Management and Temperature Control segments. |
Net Sales (Details)
Net Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | $ 359,412 | $ 342,076 | $ 682,243 | $ 618,629 |
Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 280,120 | 272,828 | 519,777 | 495,208 |
OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 70,078 | 61,880 | 145,129 | 109,305 |
Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 9,214 | 7,368 | 17,337 | 14,116 |
Ignition, Emission Control, Fuel and Safety Related System Products [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 205,210 | 194,318 | 407,884 | 369,653 |
Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 39,102 | 40,588 | 77,922 | 78,947 |
Compressors [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 72,306 | 69,963 | 115,532 | 103,355 |
Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 42,794 | 37,207 | 80,905 | 66,674 |
United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 322,598 | 303,515 | 599,870 | 543,352 |
Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 15,237 | 14,454 | 30,946 | 28,416 |
Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 10,447 | 5,413 | 18,199 | 10,618 |
Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 6,771 | 6,575 | 15,196 | 12,787 |
Asia [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 2,664 | 9,515 | 14,318 | 19,226 |
Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 1,695 | 2,604 | 3,714 | 4,230 |
Engine Management [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 241,873 | 233,216 | 481,130 | 445,234 |
Engine Management [Member] | Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 173,361 | 172,676 | 338,486 | 337,309 |
Engine Management [Member] | OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 59,984 | 53,776 | 126,541 | 94,821 |
Engine Management [Member] | Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 8,528 | 6,764 | 16,103 | 13,104 |
Engine Management [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 202,823 | 192,486 | 403,177 | 366,152 |
Engine Management [Member] | Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 39,050 | 40,730 | 77,953 | 79,082 |
Engine Management [Member] | Compressors [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | 0 |
Engine Management [Member] | Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | 0 |
Engine Management [Member] | United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 214,444 | 202,274 | 416,267 | 383,375 |
Engine Management [Member] | Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 6,257 | 7,433 | 14,397 | 16,007 |
Engine Management [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 10,378 | 5,252 | 18,085 | 10,401 |
Engine Management [Member] | Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 6,666 | 6,460 | 15,007 | 12,607 |
Engine Management [Member] | Asia [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 2,634 | 9,447 | 14,126 | 19,082 |
Engine Management [Member] | Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 1,494 | 2,350 | 3,248 | 3,762 |
Temperature Control [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 114,432 | 106,471 | 195,753 | 168,944 |
Temperature Control [Member] | Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 103,652 | 97,763 | 175,931 | 153,448 |
Temperature Control [Member] | OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 10,094 | 8,104 | 18,588 | 14,484 |
Temperature Control [Member] | Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 686 | 604 | 1,234 | 1,012 |
Temperature Control [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | 0 |
Temperature Control [Member] | Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | 0 |
Temperature Control [Member] | Compressors [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 72,063 | 69,577 | 115,340 | 102,951 |
Temperature Control [Member] | Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 42,369 | 36,894 | 80,413 | 65,993 |
Temperature Control [Member] | United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 108,154 | 101,241 | 183,603 | 159,977 |
Temperature Control [Member] | Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 5,873 | 4,632 | 11,189 | 7,958 |
Temperature Control [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 69 | 161 | 114 | 217 |
Temperature Control [Member] | Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 105 | 115 | 189 | 180 |
Temperature Control [Member] | Asia [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 30 | 68 | 192 | 144 |
Temperature Control [Member] | Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1] | 201 | 254 | 466 | 468 |
Other [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 3,107 | 2,389 | 5,360 | 4,451 |
Other [Member] | Aftermarket [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 3,107 | 2,389 | 5,360 | 4,451 |
Other [Member] | OE/OES [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 |
Other [Member] | Export [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 |
Other [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 2,387 | 1,832 | 4,707 | 3,501 |
Other [Member] | Wire and Cable [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 52 | (142) | (31) | (135) |
Other [Member] | Compressors [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 243 | 386 | 192 | 404 |
Other [Member] | Other Climate Control Parts [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 425 | 313 | 492 | 681 |
Other [Member] | United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 |
Other [Member] | Canada [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 3,107 | 2,389 | 5,360 | 4,451 |
Other [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 |
Other [Member] | Mexico [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 |
Other [Member] | Asia [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 |
Other [Member] | Other Foreign [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Disaggregation of net sales | [1],[2] | $ 0 | $ 0 | $ 0 | $ 0 |
[1]Segment net sales include intersegment sales in our Engine Management and Temperature Control segments.[2]Other consists of the elimination of intersegment sales from our Engine Management and Temperature Control segments as well as sales from our Canadian business unit that does not meet the criteria of a reportable operating segment. Intersegment wire and cable sales for the six months ended June 30, 2022, and for the three and six months ended June 30, 2021 exceeded third party sales from our Canadian business unit. |
Commitments and Contingencies,
Commitments and Contingencies, Asbestos (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | 250 Months Ended | |||
Sep. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Claim | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 30, 2022 USD ($) Claim | Dec. 31, 2021 USD ($) | Aug. 31, 2021 USD ($) | |
Asbestos [Abstract] | |||||||
Accrued asbestos liabilities | $ 48,025 | $ 48,025 | $ 52,698 | ||||
Asbestos [Member] | |||||||
Asbestos [Abstract] | |||||||
Pending claims, approximate number | Claim | 1,590 | 1,590 | |||||
Payment for settled claims and awards related damages, including interest | $ 63,100 | ||||||
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] | |||||||
Asbestos [Abstract] | |||||||
Range of possible loss | $ 60,900 | ||||||
Asbestos [Member] | Maximum [Member] | |||||||
Asbestos [Abstract] | |||||||
Range of possible loss | 100,200 | ||||||
Asbestos [Member] | Discontinued Operations [Member] | |||||||
Asbestos [Abstract] | |||||||
Total operating cash outflows related to discontinued operations | $ 9,500 | $ 5,500 | |||||
Asbestos [Member] | Discontinued Operations [Member] | Minimum [Member] | |||||||
Asbestos [Abstract] | |||||||
Range of possible loss | 49,400 | ||||||
Asbestos [Member] | Discontinued Operations [Member] | Maximum [Member] | |||||||
Asbestos [Abstract] | |||||||
Range of possible loss | $ 99,300 |
Commitments and Contingencies_2
Commitments and Contingencies, Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Changes in product warranties [Roll forward] | ||||
Balance, beginning of period | $ 20,711 | $ 16,948 | $ 17,463 | $ 17,663 |
Liabilities accrued for current year sales | 30,295 | 25,162 | 52,921 | 45,339 |
Settlements of warranty claims | (27,240) | (23,897) | (46,618) | (44,789) |
Balance, end of period | $ 23,766 | $ 18,213 | $ 23,766 | $ 18,213 |