Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
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 $2.00 per share | |
Trading Symbol | SMP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 21,712,938 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||||
Net sales | [1] | $ 389,829 | $ 353,075 | $ 721,232 | $ 681,103 |
Cost of sales | 278,382 | 251,806 | 520,263 | 488,567 | |
Gross profit | 111,447 | 101,269 | 200,969 | 192,536 | |
Selling, general and administrative expenses | 83,885 | 73,843 | 158,618 | 143,476 | |
Restructuring and integration expenses | 2,559 | 294 | 2,751 | 1,206 | |
Other income (expense), net | (17) | 46 | 5 | 70 | |
Operating income | 24,986 | 27,178 | 39,605 | 47,924 | |
Other non-operating income, net | 2,199 | 802 | 3,018 | 1,027 | |
Interest expense | 2,752 | 3,283 | 4,819 | 7,145 | |
Earnings from continuing operations before taxes | 24,433 | 24,697 | 37,804 | 41,806 | |
Provision for income taxes | 6,109 | 6,289 | 9,451 | 10,661 | |
Earnings from continuing operations | 18,324 | 18,408 | 28,353 | 31,145 | |
Loss from discontinued operations, net of income taxes | (917) | (9,221) | (1,956) | (10,001) | |
Net earnings | 17,407 | 9,187 | 26,397 | 21,144 | |
Net earnings attributable to noncontrolling interest | 344 | 50 | 510 | 89 | |
Net earnings attributable to SMP | [2] | 17,063 | 9,137 | 25,887 | 21,055 |
Net earnings (loss) attributable to SMP | |||||
Continuing operations | 17,980 | 18,358 | 27,843 | 31,056 | |
Discontinued operations | (917) | (9,221) | (1,956) | (10,001) | |
Net earnings attributable to SMP | [2] | $ 17,063 | $ 9,137 | $ 25,887 | $ 21,055 |
Basic: | |||||
Continuing operations (in dollars per share) | $ 0.83 | $ 0.85 | $ 1.27 | $ 1.43 | |
Discontinued operations (in dollars per share) | (0.05) | (0.43) | (0.09) | (0.46) | |
Net earnings attributable to SMP per common share (in dollars per share) | 0.78 | 0.42 | 1.18 | 0.97 | |
Diluted: | |||||
Continuing operations (in dollars per share) | 0.81 | 0.83 | 1.25 | 1.4 | |
Discontinued operations (in dollars per share) | (0.04) | (0.42) | (0.09) | (0.45) | |
Net earnings attributable to SMP per common share (in dollars per share) | 0.77 | 0.41 | 1.16 | 0.95 | |
Dividend declared per common share (in dollars per share) | $ 0.29 | $ 0.29 | $ 0.58 | $ 0.58 | |
Weighted average number of common shares, basic (in shares) | 21,767,526 | 21,689,067 | 21,845,678 | 21,649,562 | |
Weighted average number of common shares, diluted (in shares) | 22,185,536 | 22,183,489 | 22,277,590 | 22,139,708 | |
[1]There are no intersegment sales among our Vehicle Control, Temperature Control and Engineered Solutions operating 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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net earnings | $ 17,407 | $ 9,187 | $ 26,397 | $ 21,144 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (3,744) | 1,166 | (4,968) | 3,986 |
Derivative instruments | 79 | 1,831 | 1,470 | 454 |
Pension and postretirement plans | (2) | (4) | (5) | (7) |
Other comprehensive income, net of tax | (3,667) | 2,993 | (3,503) | 4,433 |
Comprehensive income | 13,740 | 12,180 | 22,894 | 25,577 |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax: | ||||
Net earnings | 344 | 50 | 510 | 89 |
Foreign currency translation adjustments | (11) | (81) | (15) | (110) |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax | 333 | (31) | 495 | (21) |
Comprehensive income attributable to SMP | $ 13,407 | $ 12,211 | $ 22,399 | $ 25,598 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 26,156 | $ 32,526 |
Accounts receivable, less allowances for discounts and expected credit losses of $8,672 and $8,045 for 2024 and 2023, respectively | 239,317 | 160,282 |
Inventories | 508,183 | 507,075 |
Unreturned customer inventories | 18,119 | 18,240 |
Prepaid expenses and other current assets | 24,880 | 26,100 |
Total current assets | 816,655 | 744,223 |
Property, plant and equipment, net of accumulated depreciation of $265,904 and $259,656 for 2024 and 2023, respectively | 131,921 | 121,872 |
Operating lease right-of-use assets | 99,121 | 100,065 |
Goodwill | 134,476 | 134,729 |
Other intangibles, net | 87,597 | 92,308 |
Deferred income taxes | 40,287 | 40,533 |
Investments in unconsolidated affiliates | 25,615 | 24,050 |
Other assets | 38,656 | 35,267 |
Total assets | 1,374,328 | 1,293,047 |
CURRENT LIABILITIES: | ||
Current portion of term loan and other debt | 5,030 | 5,029 |
Accounts payable | 105,094 | 107,455 |
Sundry payables and accrued expenses | 66,239 | 63,303 |
Accrued customer returns | 53,102 | 38,238 |
Accrued core liability | 16,017 | 18,399 |
Accrued rebates | 54,280 | 42,278 |
Payroll and commissions | 32,404 | 29,561 |
Total current liabilities | 332,166 | 304,263 |
Long-term debt | 203,162 | 151,182 |
Noncurrent operating lease liabilities | 88,820 | 88,974 |
Other accrued liabilities | 29,501 | 25,742 |
Accrued asbestos liabilities | 66,357 | 72,013 |
Total liabilities | 720,006 | 642,174 |
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 | 102,738 | 101,751 |
Retained earnings | 586,407 | 573,226 |
Accumulated other comprehensive income | (9,462) | (5,974) |
Treasury stock - at cost (2,223,698 shares and 2,018,982 shares in 2024 and 2023, respectively) | (87,537) | (81,811) |
Total SMP stockholders' equity | 640,018 | 635,064 |
Noncontrolling interest | 14,304 | 15,809 |
Total stockholders' equity | 654,322 | 650,873 |
Total liabilities and stockholders' equity | $ 1,374,328 | $ 1,293,047 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
CURRENT ASSETS: | ||
Accounts receivable, allowances for discounts and expected credit losses | $ 8,672 | $ 8,045 |
Property, plant and equipment, accumulated depreciation | $ 265,904 | $ 259,656 |
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) | 2,223,698 | 2,018,982 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 26,397 | $ 21,144 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 14,619 | 14,129 |
Amortization of deferred financing cost | 240 | 248 |
Increase to allowance for expected credit losses | 418 | 204 |
Increase to inventory reserves | 2,907 | 1,600 |
Equity income from joint ventures | (2,207) | (943) |
Employee stock ownership plan allocation | 1,394 | 1,483 |
Stock-based compensation | 3,049 | 3,633 |
Increase in deferred income taxes | (241) | (390) |
Loss on discontinued operations, net of tax | 1,956 | 10,001 |
Change in assets and liabilities: | ||
Increase in accounts receivable | (81,060) | (48,271) |
(Increase) decrease in inventories | (3,641) | 30,924 |
Increase (decrease) in prepaid expenses and other current assets | 2,757 | (468) |
Increase (decrease) in accounts payable | (2,168) | 4,323 |
Increase in sundry payables and accrued expenses | 29,966 | 2,776 |
Net change in other assets and liabilities | (4,525) | (1,023) |
Net cash provided by (used in) operating activities | (10,139) | 39,370 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (22,941) | (9,507) |
Other investing activities | 18 | 66 |
Net cash used in investing activities | (22,923) | (9,441) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of term loan | (2,500) | (2,500) |
Net borrowings (repayments) under revolving credit facilities | 54,500 | (14,000) |
Net borrowings (repayments) of other debt and lease obligations | (14) | (47) |
Purchase of treasury stock | (10,409) | 0 |
Increase in overdraft balances | 200 | 258 |
Dividends paid | (12,706) | (12,544) |
Dividends paid to noncontrolling interest | (600) | (255) |
Net cash provided by (used in) financing activities | 28,471 | (29,088) |
Effect of exchange rate changes on cash | (1,779) | 1,028 |
Net increase (decrease) in cash and cash equivalents | (6,370) | 1,869 |
CASH AND CASH EQUIVALENTS at beginning of period | 32,526 | 21,150 |
CASH AND CASH EQUIVALENTS at end of period | 26,156 | 23,019 |
Cash paid during the period for: | ||
Interest | 5,603 | 7,694 |
Income taxes | 6,435 | 9,356 |
Noncash financing activity: | ||
Dividend payable to noncontrolling interest | $ 1,400 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total SMP [Member] | Non-Controlling Interest [Member] | Total |
Balance at beginning of period at Dec. 31, 2022 | $ 47,872 | $ 105,615 | $ 564,242 | $ (12,470) | $ (95,239) | $ 610,020 | $ 11,018 | $ 621,038 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 21,055 | 0 | 0 | 21,055 | 89 | 21,144 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 4,543 | 0 | 4,543 | (110) | 4,433 |
Cash dividends paid | 0 | 0 | (12,544) | 0 | 0 | (12,544) | 0 | (12,544) |
Dividends to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | (255) | (255) |
Stock-based compensation | 0 | 898 | 0 | 0 | 2,735 | 3,633 | 0 | 3,633 |
Employee Stock Ownership Plan | 0 | 16 | 0 | 0 | 2,950 | 2,966 | 0 | 2,966 |
Balance at end of period at Jun. 30, 2023 | 47,872 | 106,529 | 572,753 | (7,927) | (89,554) | 629,673 | 10,742 | 640,415 |
Balance at beginning of period at Mar. 31, 2023 | 47,872 | 106,675 | 569,899 | (11,001) | (91,801) | 621,644 | 11,028 | 632,672 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 9,137 | 0 | 0 | 9,137 | 50 | 9,187 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 3,074 | 0 | 3,074 | (81) | 2,993 |
Cash dividends paid | 0 | 0 | (6,283) | 0 | 0 | (6,283) | 0 | (6,283) |
Dividends to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | (255) | (255) |
Stock-based compensation | 0 | (146) | 0 | 0 | 2,247 | 2,101 | 0 | 2,101 |
Balance at end of period at Jun. 30, 2023 | 47,872 | 106,529 | 572,753 | (7,927) | (89,554) | 629,673 | 10,742 | 640,415 |
Balance at beginning of period at Dec. 31, 2023 | 47,872 | 101,751 | 573,226 | (5,974) | (81,811) | 635,064 | 15,809 | 650,873 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 25,887 | 0 | 0 | 25,887 | 510 | 26,397 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (3,488) | 0 | (3,488) | (15) | (3,503) |
Cash dividends paid | 0 | 0 | (12,706) | 0 | 0 | (12,706) | 0 | (12,706) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (10,409) | (10,409) | 0 | (10,409) |
Dividends to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | (2,000) | (2,000) |
Stock-based compensation | 0 | 984 | 0 | 0 | 1,899 | 2,883 | 0 | 2,883 |
Employee Stock Ownership Plan | 0 | 3 | 0 | 0 | 2,784 | 2,787 | 0 | 2,787 |
Balance at end of period at Jun. 30, 2024 | 47,872 | 102,738 | 586,407 | (9,462) | (87,537) | 640,018 | 14,304 | 654,322 |
Balance at beginning of period at Mar. 31, 2024 | 47,872 | 102,704 | 575,658 | (5,806) | (81,278) | 639,150 | 15,971 | 655,121 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 17,063 | 0 | 0 | 17,063 | 344 | 17,407 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (3,656) | 0 | (3,656) | (11) | (3,667) |
Cash dividends paid | 0 | 0 | (6,314) | 0 | 0 | (6,314) | 0 | (6,314) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (7,838) | (7,838) | 0 | (7,838) |
Dividends to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | (2,000) | (2,000) |
Stock-based compensation | 0 | 34 | 0 | 0 | 1,579 | 1,613 | 0 | 1,613 |
Balance at end of period at Jun. 30, 2024 | $ 47,872 | $ 102,738 | $ 586,407 | $ (9,462) | $ (87,537) | $ 640,018 | $ 14,304 | $ 654,322 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation Standard Motor Products, Inc. and its 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 in the automotive aftermarket, and a custom-engineered solutions provider to vehicle and equipment manufacturers in diverse non-aftermarket end markets. Our automotive aftermarket is comprised of two segments, Vehicle Control and Temperature Control, while our Engineered Solutions segment offers a broad array of conventional and future-oriented technologies in markets for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics and lawn and garden. We sell our products primarily to retailers, warehouse distributors, original equipment manufacturers and original equipment service part operations in the United States, Canada, Europe, Asia, Mexico and other Latin American countries. 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 GAAP 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 2024 presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies The preparation of consolidated annual and quarterly financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. We have made a number of estimates and assumptions in the preparation of these consolidated financial statements. We can give no assurance that actual results will not differ from those estimates. Although we do not believe that there is a reasonable likelihood that there will be a material change in the future estimates, or in the assumptions that we use in calculating the estimates, the uncertain future effects, if any, of disruptions in the supply chain caused by geo-political risks, future increases in interest rates, inflation, macroeconomic uncertainty, and other unforeseen changes in the industry, or business, could materially impact the estimates, and may have a material adverse effect on our business, financial condition and results of operations. Some of the more significant estimates include allowances for expected credit losses, cash discounts, valuation of inventory, valuation of long-lived assets, goodwill and other intangible assets, depreciation and amortization of long-lived assets, product liability exposures, asbestos, environmental and litigation matters, valuation of deferred tax assets, share based compensation and sales returns and other allowances. There have been no material changes to our critical accounting policies and estimates from the information provided in Note 1 of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2023. Recently Issued Accounting Pronouncements Standards not yet adopted as of June 30, 2024 Standard Description Effective date Effects on the financial statements or other significant matters ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ASU 2023-07 will improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses on an interim and annual basis. ASU 2023-07 expands segment disclosures by requiring disclosure of (1) significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; (2) the amount and description of the composition of other segment items to reconcile to segment profit and loss; and (3) the CODM’s title and position and how the CODM uses the reported segment measures to allocate resources. Additionally, ASU 2023-07 requires interim disclosures of all reportable segment profit or loss and assets previously required annually by Topic 280. The ASU is effective for the fiscal years beginning after December 15, 2023, which for us is December 31, 2024, and all subsequent interim periods, with full retrospective application required to all prior periods presented. Early adoption is permitted. The new standard will require expanding our segment disclosure to include additional segment level information. We are currently evaluating the full impact of adopting ASU 2023-07 on our consolidated financial statements, disclosures, processes and controls. On an ongoing basis, we will continue to assess the impact of the new standard through our planned date of adoption of December 31, 2024. ASU 2023-09, Income Taxes (Topic 270): Improvements to Income Tax Disclosures ASU 2023-09 will improve transparency and decision making usefulness of income tax disclosures. ASU 2023-09 will expand the annual required effective income tax rate reconciliation disclosures to include (1) eight specific categories of rate reconciling items; (2) additional information for reconciling items that meet or exceed a quantitative threshold; and (3) expand the required disclosures to include reconciling percentages as well as reported amounts. Additionally, the ASU 2023-09 will expand required annual disclosures of income taxes paid to include the disaggregation by federal, state and foreign jurisdictions. The ASU is effective for annual reporting periods beginning after December 15, 2024, which for us is December 31, 2025, with prospective application. Early adoption and retrospective application are permitted. The new standard will require expanding our annual income tax disclosures in our financial statements. We are currently evaluating the full impact of adopting ASU 2023-09 on our consolidated financial statements, disclosures, processes and controls. On an ongoing basis, we will continue to assess the impact of the new standard through our planned date of adoption of December 31, 2025. We have reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a material impact on the Company’s consolidated financial statements. |
Business Acquisitions and Inves
Business Acquisitions and Investments | 6 Months Ended |
Jun. 30, 2024 | |
Business Acquisitions and Investments [Abstract] | |
Business Acquisitions and Investments | Note 3. Business Acquisitions and Investments Investment in Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. In April 2014, we formed Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. (“Gwo Yng”), a 50/50 joint venture with Gwo Yng Enterprise Co., Ltd., a China-based manufacturer of air conditioner accumulators, filter driers, hose assemblies and switches. We acquired our 50% interest in the joint venture for approximately $14 million. In March 2018, we acquired an additional 15% equity interest in the joint venture for Chinese yuan renminbi 26,475,583 (approximately $4.2 million), thereby increasing our equity interest in the joint venture to 65%. While we increased our equity interest in the joint venture to 65%, the minority shareholder maintained substantive participating rights that allowed it to participate in certain significant financial and operating decisions that occur in the ordinary course of business. As a result, we continued to account for our investment in the joint venture under the equity method of accounting. In July 2023, we acquired an additional 15% equity interest in the joint venture for Chinese yuan renminbi 27,378,290 (approximately $4 million), thereby increasing our equity interest in Gwo Yng to 80%. In connection with the transaction, we amended and restated the charter documents of Gwo Yng to remove all minority shareholder substantive participating rights, giving SMP control of Gwo Yng. As a result, as of the closing date of the transaction, Gwo Yng was accounted for as a business combination achieved in stages (“a step acquisition”). Accordingly, commencing on the closing of the transaction, we reported the results of Gwo Yng on a consolidated basis with the minority ownership interest reported as a noncontrolling interest. The following table summarizes the allocation of the total step acquisition purchase consideration to the identifiable assets acquired and liabilities assumed based on their fair values (in thousands): Total purchase consideration (a) $ 21,725 Assets acquired and liabilities assumed: Cash and cash equivalents $ 6,779 Receivables 5,912 Inventory 5,945 Other current assets 528 Property, plant and equipment, net 2,924 Operating lease right-of-use assets 4,372 Intangible assets (b) 532 Goodwill 2,208 Long term investments and other assets 7,257 Current liabilities (6,004 ) Noncurrent operating lease liabilities (3,455 ) Subtotal 26,998 Fair value of acquired noncontrolling interest (5,273 ) Total purchase consideration allocated to net assets acquired $ 21,725 (a) Total purchase consideration is the sum of the fair value of the previously held equity investment interest in Gwo Yng of $17.7 million and the cash paid of $4 million for the acquisition of the additional 15% equity ownership interest. (b) Intangible assets consists of customer relationships of $0.4 million and capitalized software of $0.1 million. Intangible assets of $0.4 million consisting of customer relationships is amortized on a straight-line basis over the estimated useful life of 10 years. Goodwill of $2.2 million was allocated to the Temperature Control and Engineered Solutions segments in the amounts of $1.2 million and $1 million, respectively. The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations |
Restructuring and Integration E
Restructuring and Integration Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Integration Expenses [Abstract] | |
Restructuring and Integration Expenses | Note 4. Restructuring and Integration Expenses Voluntary Retirement Incentive Program During the quarter we offered a voluntary retirement incentive package of severance and other benefit enhancements to eligible employees in the United States and Canada as part of our commitment to optimizing our cost structure and providing professional development opportunities to our employees. The offer period ended on June 14, 2024. Costs primarily comprise of compensation expense and enhanced medical benefits and are charged to restructuring and integration expenses in our statement of operations as a one-time termination benefit either when the employee accepted the offer or over their remaining period of service based on the agreed retirement date. We anticipate that the Voluntary Retirement Incentive Program will be substantially complete by the end of 2027. Additional pre-tax restructuring costs related to the program are expected to be $3.1 million in the remainder of 2024, $0.4 million in 2025, and $0.1 million in 2026 for an aggregate cost of approximately $6.2 million. Activity for the six months ended June 30, 2024 related to the voluntary retirement incentive program workforce reduction consisted of the following (in thousands): Exit activity liability at December 31, 2023 $ — Restructuring and integration costs: Amounts provided for during 2024 (a) 2,589 Stock-based compensation 166 Cash payments (128 ) Exit activity liability at June 30, 2024 $ 2,627 (a) Restructuring and integration expenses incurred during the six months ended June 30, 2024 consist of $1.1 million in our Vehicle Control segment, $0.2 million in our Temperature Control segment, $0.4 million in our Engineered Solutions segment and $0.9 million in our Other segment. Cost Reduction Initiative During the fourth quarter of 2022, to further our ongoing efforts to improve operating efficiencies and reduce costs, we announced plans for a reduction in our sales force, and initiated plans to relocate certain product lines from our Independence, Kansas manufacturing facility and from our St. Thomas, Canada manufacturing facility to our manufacturing facilities in Reynosa, Mexico. We anticipate that the Cost Reduction Initiative will be substantially completed by the end of 2024. Additional restructuring costs related to the initiative are expected to be immaterial. Activity for the six months ended June 30, 2024 related to the cost reduction initiative consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2023 $ 1,729 $ — $ 1,729 Restructuring and integration costs: Amounts provided for during 2024 (a) (46 ) 208 162 Cash payments (949 ) (208 ) (1,157 ) Foreign currency exchange rate changes (24 ) — (24 ) Exit activity liability at June 30, 2024 $ 710 $ — $ 710 (a) Restructuring and integration expenses incurred during the six months ended June 30, 2024 consist of $52,000 in our Vehicle Control segment, $75,000 in our Temperature Control segment and $35,000 in our Engineered Solutions segment. Restructuring and integration activities are included within “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet. |
Sale of Receivables
Sale of Receivables | 6 Months Ended |
Jun. 30, 2024 | |
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 accounted for as a sale. Pursuant to these agreements, we sold $230.1 million and $400.9 million of receivables during the three and six months ended June 30, 2024, $211.6 million and $382.5 million for the comparable periods in 2023. June $14.4 million and $4.5 million, respectively, and sale. A charge in the amount of $13.4 million and $23.4 million related to the sale of receivables was included in selling, general and administrative expense in our consolidated statements of operations for the three and six months ended June 30, 2024, respectively, and $12.4 million and $21.5 million for the comparable periods in 2023. 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, or delays or failures in collecting trade accounts receivable. The utility of the supply chain financing arrangements also depends upon a benchmark reference rate for the purpose of determining the discount rate applicable to each arrangement. If the 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, 2024 | |
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, 2024 December 31, 2023 (In thousands) Finished goods $ 310,310 $ 302,557 Work in process 15,094 18,503 Raw materials 182,779 186,015 Subtotal 508,183 507,075 Unreturned customer inventories 18,119 18,240 Total inventories $ 526,302 $ 525,315 |
Acquired Intangible Assets
Acquired Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Acquired Intangible Assets [Abstract] | |
Acquired Intangible Assets | Note 7. Acquired Intangible Assets Acquired identifiable intangible assets consist of the following: June 30, 2024 December 31, 2023 (In thousands) Customer relationships $ 159,824 $ 159,641 Patents, developed technology and intellectual property 14,123 14,123 Trademarks and trade names 8,880 8,880 Non-compete agreements 3,308 3,295 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 187,095 186,899 Less: Accumulated amortization (a) (100,379 ) (95,681 ) Net acquired intangible assets $ 86,716 $ 91,218 (a) 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 $2.1 million and $4.3 million for the three and six months ended June 30, 2024, respectively, and $2.1 million and $4.3 million for the comparable periods in 2023. Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be $4.1 million for the remainder of 2024, $8.5 million in 2025, $8.5 million in 2026, $8.5 million in 2027 and $54.5 million in the aggregate for the years 2028 through 2041. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
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 not included any of the renewal options in our operating lease payments as we concluded that it is not reasonably certain that we will exercise any of these renewal options. 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 include all operating leases acquired from the date of acquisition : Balance Sheet Information June 30, 2024 December 31, 2023 Assets Operating lease right-of-use assets $ 99,121 $ 100,065 Liabilities Sundry payables and accrued expenses $ 17,212 $ 17,139 Noncurrent operating lease liabilities 88,820 88,974 Total operating lease liabilities $ 106,032 $ 106,113 Weighted Average Remaining Lease Term 8.1 Years 8.3 Years Weighted Average Discount Rate 4.9 % 4.8 % Three Months Ended June 30, Six Months Ended June 30, Lease Expense 2024 2023 2024 2023 Lease expense $ 4,852 $ 3,776 $ 9,672 $ 6,885 Variable and other lease expense (a) 628 511 1,408 1,283 Total lease costs $ 5,480 $ 4,287 $ 11,080 $ 8,168 (a) Variable and other lease expense relate 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 are not material. Six Months Ended June 30, 2024 2023 Supplemental Cash Flow Information Cash paid for the amounts included in the measurement of lease liabilities $ 8,801 $ 5,476 Right-of-use assets obtained in exchange for new lease obligations (a) $ 6,674 $ 30,830 (a) Includes $4.7 million of right-of-use assets related to the lease modification and extension for our manufacturing facility in Bialystok, Poland during the six months ended June 30, 2024, and $27.8 million of right-of-use assets related to the lease modification and extension for our distribution center and office in Lewisville, Texas during the six months ended June 30, 2023. Minimum Lease Payments At June 30, 2024, we are obligated to make minimum lease payments through 2034, under operating leases, which are as follows (in thousands): 2024 $ 9,344 2025 16,919 2026 15,554 2027 14,317 2028 12,605 Thereafter 62,086 Total lease payments $ 130,825 Less: Interest (24,793 ) Present value of lease liabilities $ 106,032 |
Credit Facilities and Long-Term
Credit Facilities and Long-Term Debt | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 December 31, 2023 (In thousands) Credit facility – term loan due 2027 $ 90,000 $ 92,500 Credit facility – revolver due 2027 118,000 63,500 Other 192 211 Total debt $ 208,192 $ 156,211 Current maturities of debt $ 5,030 $ 5,029 Long-term debt 203,162 151,182 Total debt $ 208,192 $ 156,211 Term Loan and Revolving Credit Facility In June 2022, the Company entered into a five-year Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders (the “Credit Agreement”) which matures on June 1, 2027. The Credit Agreement provides for a $500 million credit facility comprised of a $100 million term loan facility (the “Term A-1 Loan”) and a $400 million multi-currency revolving credit facility available in U.S. dollars, euros, British pound sterling, Swiss francs, Canadian dollars and other currencies as agreed to by the administrative agent and the lenders (the “revolving facility”). 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. Borrowings under the Credit Agreement were used to repay all outstanding borrowings under the 2015 Credit Agreement, and are used for other general corporate purposes of the Company and its subsidiaries. The Term A-1 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. 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 lenders not currently party to the Credit Agreement, increase the revolving facility 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) any voluntary prepayment of term loans, plus (z) any amount that, after giving effect to the increase, 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 Secured Overnight Financing Rate ("SOFR") plus 0.10% plus a margin, or an alternate base rate plus a 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 1.10%. The Term A-1 Loan was made at one-month Term SOFR. The margin for benchmark borrowings ranges from 1.0% to 2.0%, and the 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. The Company entered into an interest rate swap agreement with Wells Fargo Bank, N.A., Co-Syndication Agent and lender concurrently with the Credit Agreement. Outstanding borrowings at June 30, 2024 under the Credit Agreement were $208 million, consisting of current borrowings of $5 million and long-term debt of $203 million; while outstanding borrowings at December 31, 2023 were $156 million, consisting of current borrowings of $5 million and long-term debt of $151 million. Letters of credit outstanding under the Credit Agreement were $2.3 million at both June 30, 2024 and December 31, 2023. At June 30, 2024, the weighted average interest rate under our Credit Agreement was 5.7%, which consisted of $208 million in borrowings under Term SOFR, adjusted for the impact of the interest rate swap agreement on $100 million of borrowings. At December 31, 2023, the weighted average interest rate under our Credit Agreement was 5%, which consisted of $156 million in borrowings at 5% under Term SOFR, adjusted for the impact of the interest rate swap agreement on $100 million of borrowings. During the six months ended June 30, 2024, our average daily alternative base rate loan balance was $1 million, compared to a balance of $0.2 million for the six months ended June 30, 2023 and a balance of $0.1 million for the year ended December 31, 2023. 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. In May 2024, the Company entered into Amendment No. 1 to the Credit Agreement to transition from the Canadian Dollar Offered Rate (“CDOR”) to the Canadian Overnight Repo Rate Average (“CORRA”) for benchmark borrowings denominated in Canadian dollars. In July 2024, the Company entered into Amendment No. 2 to the Credit Agreement, to provide for a new $125 million term loan (the “Term A-2 Loan”) and the use of funds available under the existing revolving facility to finance the acquisition of AX V Nissens III APS and its subsidiaries (“Nissens Automotive”) and related transaction costs. For additional information on our agreement to acquire Nissens Automotive see Note 19, “Subsequent Event”. Polish Overdraft Facility In November 2023, our Polish subsidiary, SMP Poland sp. z.o.o., further amended its overdraft facility with HSBC Continental Europe (Spolka Akcyjna) Oddzial w Polsce. The overdraft facility, as amended, provides The facility automatically renewed in June 2024 to a September 2024 maturity date. Maturities of Debt As of June 30, 2024, maturities of debt through 2027, assuming no prepayments, are as follows (in thousands): Revolving Credit Facility Term A-1 Loan Polish Overdraft Facility and Other Debt Total Remainder of 2024 $ — $ 2,500 $ 14 $ 2,514 2025 — 5,000 31 5,031 2026 — 7,500 47 7,547 2027 118,000 75,000 100 193,100 Total $ 118,000 $ 90,000 $ 192 $ 208,192 Less: current maturities — (5,000 ) (30 ) (5,030 ) Long-term debt $ 118,000 $ 85,000 $ 162 $ 203,162 Deferred Financing Costs We have deferred financing costs related to our term loan and revolving credit facilities of approximately $1.3 million and $1.6 million as of June 30, 2024 and December 31, 2023, respectively. Deferred financing costs as of June 30, 2024, assuming no prepayments, are being amortized in the amounts of $0.2 million for the remainder of 2024, $0.5 million in 2025, $0.5 million in 2026 and $0.1 million in 2027. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income Attributable to SMP | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income Attributable to SMP [Abstract] | |
Accumulated Other Comprehensive Income Attributable to SMP | Note 10. Accumulated Other Comprehensive Income Attributable to SMP Changes in Accumulated Other Comprehensive Income by Component (in thousands) Three Months Ended June 30, 2024 Foreign Currency Translation Unrealized derivative gains (losses) Unrecognized Postretirement Benefit Costs (Credit) Total Balance at March 31, 2024 $ (10,117 ) $ 4,290 $ 21 $ (5,806 ) Other comprehensive income (loss) before reclassifications (3,733 ) 573 (a) — (3,160 ) Amounts reclassified from accumulated other comprehensive income — (494 ) (2 ) (496 ) Other comprehensive income (loss), net (3,733 ) 79 (2 ) (3,656 ) Balance at June 30 2024 $ (13,850 ) $ 4,369 $ 19 $ (9,462 ) Six Months Ended June 30, 2024 Foreign Currency Translation Unrealized derivative gains (losses) Unrecognized Postretirement Benefit Costs (Credit) Total Balance at December 31, 2023 $ (8,897 ) $ 2,899 $ 24 $ (5,974 ) Other comprehensive income (loss) before reclassifications (4,953 ) 2,461 (a) — (2,492 ) Amounts reclassified from accumulated other comprehensive income — (991 ) (5 ) (996 ) Other comprehensive income (loss), net (4,953 ) 1,470 (5 ) (3,488 ) Balance at June 30 2024 $ (13,850 ) $ 4,369 $ 19 $ (9,462 ) (a) Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $ 0.1 0.1 2 1.5 0.7 0.5 1.3 1 Reclassifications Out of Accumulated Other Comprehensive Income (in thousands) Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 Derivative cash flow hedge: Unrecognized loss (a) $ (668 ) $ (1,339 ) Postretirement benefit plans: Unrecognized loss (b) (4 ) (9 ) Total before income tax (672 ) (1,348 ) Income tax benefit (176 ) (352 ) Total reclassifications attributable to SMP $ (496 ) $ (996 ) (a) 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. (b) Unrecognized accumulated other comprehensive income (loss) related to our postretirement benefit 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, 2024 | |
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 2023 880,976 $ 29.48 Granted 6,775 27.64 Vested (35,609 ) 28.77 Forfeited (29,225 ) 29.86 Balance at June 30 2024 822,917 $ 29.48 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 unrecognized compensation expense related to our restricted and performance-based shares was $ million at June 30, 2024, 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, 2024 | |
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 2024, we made company contributions to the plan of $0.5 million related to calendar year 2023. We also have an Employee Stock Ownership Plan and Trust for employees who are not covered by a collective bargaining agreement. In connection therewith, we maintain an employee benefits trust to which we contribute shares of treasury stock. We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under the plan. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released. The trustees will vote the shares in accordance with their fiduciary duties. During the six months ended June 30, 2024, 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, 2024. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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 for 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, 2024 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 and December 31, 2023 (in thousands): June 30, 2024 December 31, 2023 Fair Value Hierarchy Level Fair Value Carrying Amount Fair Value Carrying Amount Cash and cash equivalents (a) 1, 2 $ 26,156 $ 26,156 $ 32,526 $ 32,526 Deferred compensation 1 25,799 25,799 23,893 23,893 Short term borrowings 2 5,030 5,030 5,029 5,029 Long-term debt 2 203,162 203,162 151,182 151,182 Cash flow interest rate swap 2 5,926 5,926 3,939 3,939 Long-term investments 2 7,573 7,573 7,468 7,468 (a) As of June 30, 2024 cash and cash equivalents consist solely of cash of $ 26.2 29.5 3 Cash equivalents consist of certificates of deposit with original maturities of three months, or less. These securities are accounted for as held-to-maturity and recorded at amortized cost, which approximates their fair values at June 30, 2024. 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, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15. Earnings Per Share The Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 N et earnings (loss) attributable to SMP Continuing operations $ 17,980 $ 18,358 $ 27,843 $ 31,056 Discontinued operations (917 ) (9,221 ) (1,956 ) (10,001 ) Net earnings attributable to SMP $ 17,063 $ 9,137 $ 25,887 $ 21,055 Basic net earnings (loss) per common share attributable to SMP Continuing operations $ 0.83 $ 0.85 $ 1.27 $ 1.43 Discontinued operations $ (0.05 ) $ (0.43 ) $ (0.09 ) $ (0.46 ) Diluted net earnings (loss) per common share attributable to SMP Continuing operations $ 0.81 $ 0.83 $ 1.25 $ 1.40 Discontinued operations $ (0.04 ) $ (0.42 ) $ (0.09 ) $ (0.45 ) Weighted average common shares outstanding, basic 21,768 21,689 21,846 21,650 Dilutive effect of restricted stock and performance-based stock 418 494 432 490 Weighted average common shares outstanding, diluted 22,186 22,183 22,278 22,140 The Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Restricted and performance-based shares 290 273 286 286 |
Industry Segments
Industry Segments | 6 Months Ended |
Jun. 30, 2024 | |
Industry Segments [Abstract] | |
Industry Segments | Note 16. Industry Segments Our business is organized into three operating segments, Vehicle Control, Temperature Control and Engineered Solutions, each of which focuses on a specific line of business. Our automotive aftermarket business is comprised of two operating segments, Vehicle Control Temperature Control, The following tables show our net sales and operating income for each reportable operating segment (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net Sales (a) Vehicle Control $ 188,741 $ 183,789 $ 374,265 $ 368,366 Temperature Control 124,481 97,074 196,089 169,480 Engineered Solutions 76,607 72,212 150,878 143,257 Other — — — — Consolidated $ 389,829 $ 353,075 $ 721,232 $ 681,103 Operating Income Vehicle Control $ 15,116 $ 19,273 $ 30,656 $ 36,648 Temperature Control 13,197 5,800 15,228 7,884 Engineered Solutions 5,812 6,163 8,044 11,810 Other (9,139 ) (4,058 ) (14,323 ) (8,418 ) Consolidated $ 24,986 $ 27,178 $ 39,605 $ 47,924 (a) There are no intersegment sales among our Vehicle Control, Temperature Control and Engineered Solutions operating segments. For the disaggregation of our net sales from contracts with customers by major product group and geographic area within each of our operating segments, see Note 17, “Net Sales.” |
Net Sales
Net Sales | 6 Months Ended |
Jun. 30, 2024 | |
Net Sales [Abstract] | |
Net Sales | Note 17. Net Sales Disaggregation of Net Sales We disaggregate our net sales from contracts with customers by major product group and geographic area within 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. Major Product Group The Vehicle Control operating segment generates its revenues from core automotive aftermarket sales of ignition, emissions, and fuel delivery, electrical and safety, and wire sets and other product categories. The Temperature Control The following table summarizes consolidated net sales by major product group within each operating segment for the three and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Vehicle Control Engine Management (Ignition, Emissions and Fuel Delivery) $ 115,529 $ 113,589 $ 231,614 $ 229,672 Electrical and Safety 57,128 52,867 109,535 104,671 Wire Sets and Other 16,084 17,333 33,116 34,023 Total Vehicle Control 188,741 183,789 374,265 368,366 Temperature Control AC System Components 99,970 72,730 149,930 123,528 Other Thermal Components 24,511 24,344 46,159 45,952 Total Temperature Control 124,481 97,074 196,089 169,480 Engineered Solutions Commercial Vehicle 23,483 20,225 46,391 40,457 Construction/Agriculture 9,473 11,138 19,549 22,830 Light Vehicle 24,686 23,981 46,489 47,000 All Other 18,965 16,868 38,449 32,970 Total Engineered Solutions 76,607 72,212 150,878 143,257 Other — — — — Total $ 389,829 $ 353,075 $ 721,232 $ 681,103 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. The following tables provide disaggregation of net sales information by geographic area within each operating segment for the three and six months ended June 30, 2024 and 2023 (in thousands): Three months ended June 30, 2024 Vehicle Control Temperature Control Engineered Solutions Other Total United States $ 167,899 $ 117,632 $ 40,949 $ — $ 326,480 Canada 8,681 6,585 8,497 — 23,763 Europe 261 35 13,878 — 14,174 Mexico 10,795 4 2,723 — 13,522 Asia 27 154 9,644 — 9,825 Other foreign 1,078 71 916 — 2,065 Total $ 188,741 $ 124,481 $ 76,607 $ — $ 389,829 Three months ended June 30, 2023 Vehicle Control Temperature Control Engineered Solutions Other Total United States $ 165,198 $ 92,099 $ 44,565 $ — $ 301,862 Canada 8,834 4,926 6,126 — 19,886 Europe 248 — 14,914 — 15,162 Mexico 8,179 18 2,038 — 10,235 Asia 88 — 4,273 — 4,361 Other foreign 1,242 31 296 — 1,569 Total $ 183,789 $ 97,074 $ 72,212 $ — $ 353,075 Six months ended June 30, 2024 Vehicle Control Temperature Control Engineered Solutions Other Total United States $ 332,720 $ 182,297 $ 81,403 $ — $ 596,420 Canada 17,839 13,217 16,679 — 47,735 Europe 544 51 28,084 — 28,679 Mexico 20,815 9 4,930 — 25,754 Asia 128 295 18,205 — 18,628 Other foreign 2,219 220 1,577 — 4,016 Total $ 374,265 $ 196,089 $ 150,878 $ — $ 721,232 Six months ended June 30, 2023 Vehicle Control Temperature Control Engineered Solutions Other Total United States $ 331,610 $ 161,670 $ 88,771 $ — $ 582,051 Canada 17,164 7,681 11,364 — 36,209 Europe 446 — 29,998 — 30,444 Mexico 16,766 18 3,806 — 20,590 Asia 150 20 8,327 — 8,497 Other foreign 2,230 91 991 — 3,312 Total $ 368,366 $ 169,480 $ 143,257 $ — $ 681,103 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024, approximately 1,500 cases were outstanding for which we may be responsible for any related liabilities. Since inception in September 2001 through June 30, 2024, the amounts paid for settled claims and awards of asbestos-related damages, including interest, were approximately $80.3 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 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, 2023. The results of the August 31, 2023 study included an estimate of our undiscounted liability for settlement payments and awards of asbestos-related damages, excluding legal costs, ranging from $84 million to $135.3 million for the period through 2065. The change from the prior year study, which was as of August 31,2022, was a $15.2 million increase for the low end of the range and a $23.7 million increase for the high end of the range. The increase in the estimated undiscounted liability from the prior year study at both the low end and high end of the range reflects our actual experience, our historical data and certain assumptions with respect to events that may occur in the future. Based upon the results of the August 31, 2023 actuarial study, in September 2023 we increased our asbestos liability to $84 million, the low end of the range, and recorded an incremental pre-tax provision of $23.8 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, 2023 study, to range from $53.1 million to $105.2 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 $5.2 million and $4.5 million for the six months ended June 30, 2024 and 2023, 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. The accrued product warranty costs are based primarily on historical experience of actual warranty claims and included in accrued customer returns. The following table provides the changes in our product warranties (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Balance, beginning of period $ 23,092 $ 20,600 $ 21,134 $ 19,667 Liabilities accrued for current year sales 37,003 30,047 65,680 55,840 Settlements of warranty claims (32,552 ) (27,061 ) (59,271 ) (51,921 ) Balance, end of period $ 27,543 $ 23,586 $ 27,543 $ 23,586 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Event [Abstract] | |
Subsequent Event | Note 19. Subsequent Event In July 2024, we entered into an agreement to acquire Nissens Automotive, for €360 million (approximately $388 million) in cash, subject to adjustment at closing. We expect to fund the entire purchase price and related transaction costs with borrowings under our Credit Agreement. For additional information on our Credit Agreement see Note 9, “Credit Facilities and Long-Term Debt”. The transaction is expected to be completed by the end of 2024, subject to regulatory approval and customary closing requirements. Nissens Automotive is a leading European manufacturer and distributor of aftermarket engine cooling and air conditioning products with a growing array of vehicle control technologies. Nissens Automotive is headquartered in Denmark, with manufacturing facilities in Slovakia and Denmark, and warehouses and distribution centers across multiple countries, primarily in Europe. Nissens Automotive employs approximately 530 employees worldwide. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Basis of Presentation [Abstract] | |
Principles of Consolidation | Standard Motor Products, Inc. and its 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 in the automotive aftermarket, and a custom-engineered solutions provider to vehicle and equipment manufacturers in diverse non-aftermarket end markets. Our automotive aftermarket is comprised of two segments, Vehicle Control and Temperature Control, while our Engineered Solutions segment offers a broad array of conventional and future-oriented technologies in markets for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics and lawn and garden. We sell our products primarily to retailers, warehouse distributors, original equipment manufacturers and original equipment service part operations in the United States, Canada, Europe, Asia, Mexico and other Latin American countries. 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 GAAP 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 2024 presentation. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Standards not yet adopted as of June 30, 2024 Standard Description Effective date Effects on the financial statements or other significant matters ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ASU 2023-07 will improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses on an interim and annual basis. ASU 2023-07 expands segment disclosures by requiring disclosure of (1) significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; (2) the amount and description of the composition of other segment items to reconcile to segment profit and loss; and (3) the CODM’s title and position and how the CODM uses the reported segment measures to allocate resources. Additionally, ASU 2023-07 requires interim disclosures of all reportable segment profit or loss and assets previously required annually by Topic 280. The ASU is effective for the fiscal years beginning after December 15, 2023, which for us is December 31, 2024, and all subsequent interim periods, with full retrospective application required to all prior periods presented. Early adoption is permitted. The new standard will require expanding our segment disclosure to include additional segment level information. We are currently evaluating the full impact of adopting ASU 2023-07 on our consolidated financial statements, disclosures, processes and controls. On an ongoing basis, we will continue to assess the impact of the new standard through our planned date of adoption of December 31, 2024. ASU 2023-09, Income Taxes (Topic 270): Improvements to Income Tax Disclosures ASU 2023-09 will improve transparency and decision making usefulness of income tax disclosures. ASU 2023-09 will expand the annual required effective income tax rate reconciliation disclosures to include (1) eight specific categories of rate reconciling items; (2) additional information for reconciling items that meet or exceed a quantitative threshold; and (3) expand the required disclosures to include reconciling percentages as well as reported amounts. Additionally, the ASU 2023-09 will expand required annual disclosures of income taxes paid to include the disaggregation by federal, state and foreign jurisdictions. The ASU is effective for annual reporting periods beginning after December 15, 2024, which for us is December 31, 2025, with prospective application. Early adoption and retrospective application are permitted. The new standard will require expanding our annual income tax disclosures in our financial statements. We are currently evaluating the full impact of adopting ASU 2023-09 on our consolidated financial statements, disclosures, processes and controls. On an ongoing basis, we will continue to assess the impact of the new standard through our planned date of adoption of December 31, 2025. We have reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a material impact on the Company’s consolidated financial statements. |
Business Acquisitions and Inv_2
Business Acquisitions and Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co Ltd [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price, Assets Acquired And Liabilities Assumed | The following table summarizes the allocation of the total step acquisition purchase consideration to the identifiable assets acquired and liabilities assumed based on their fair values (in thousands): Total purchase consideration (a) $ 21,725 Assets acquired and liabilities assumed: Cash and cash equivalents $ 6,779 Receivables 5,912 Inventory 5,945 Other current assets 528 Property, plant and equipment, net 2,924 Operating lease right-of-use assets 4,372 Intangible assets (b) 532 Goodwill 2,208 Long term investments and other assets 7,257 Current liabilities (6,004 ) Noncurrent operating lease liabilities (3,455 ) Subtotal 26,998 Fair value of acquired noncontrolling interest (5,273 ) Total purchase consideration allocated to net assets acquired $ 21,725 (a) Total purchase consideration is the sum of the fair value of the previously held equity investment interest in Gwo Yng of $17.7 million and the cash paid of $4 million for the acquisition of the additional 15% equity ownership interest. (b) Intangible assets consists of customer relationships of $0.4 million and capitalized software of $0.1 million. |
Restructuring and Integration_2
Restructuring and Integration Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Integration Expenses [Abstract] | |
Restructuring and Integration Expense | Activity for the six months ended June 30, 2024 related to the voluntary retirement incentive program workforce reduction consisted of the following (in thousands): Exit activity liability at December 31, 2023 $ — Restructuring and integration costs: Amounts provided for during 2024 (a) 2,589 Stock-based compensation 166 Cash payments (128 ) Exit activity liability at June 30, 2024 $ 2,627 (a) Restructuring and integration expenses incurred during the six months ended June 30, 2024 consist of $1.1 million in our Vehicle Control segment, $0.2 million in our Temperature Control segment, $0.4 million in our Engineered Solutions segment and $0.9 million in our Other segment. Activity for the six months ended June 30, 2024 related to the cost reduction initiative consisted of the following (in thousands): Workforce Reduction Other Exit Costs Total Exit activity liability at December 31, 2023 $ 1,729 $ — $ 1,729 Restructuring and integration costs: Amounts provided for during 2024 (a) (46 ) 208 162 Cash payments (949 ) (208 ) (1,157 ) Foreign currency exchange rate changes (24 ) — (24 ) Exit activity liability at June 30, 2024 $ 710 $ — $ 710 (a) Restructuring and integration expenses incurred during the six months ended June 30, 2024 consist of $52,000 in our Vehicle Control segment, $75,000 in our Temperature Control segment and $35,000 in our Engineered Solutions segment. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 December 31, 2023 (In thousands) Finished goods $ 310,310 $ 302,557 Work in process 15,094 18,503 Raw materials 182,779 186,015 Subtotal 508,183 507,075 Unreturned customer inventories 18,119 18,240 Total inventories $ 526,302 $ 525,315 |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Acquired Intangible Assets [Abstract] | |
Acquired Identifiable Intangible Assets | Acquired identifiable intangible assets consist of the following: June 30, 2024 December 31, 2023 (In thousands) Customer relationships $ 159,824 $ 159,641 Patents, developed technology and intellectual property 14,123 14,123 Trademarks and trade names 8,880 8,880 Non-compete agreements 3,308 3,295 Supply agreements 800 800 Leaseholds 160 160 Total acquired intangible assets 187,095 186,899 Less: Accumulated amortization (a) (100,379 ) (95,681 ) Net acquired intangible assets $ 86,716 $ 91,218 (a) 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, 2024 | |
Leases [Abstract] | |
Quantitative Disclosures Related to Operating Leases | The following tables provide quantitative disclosures related to our operating leases and include all operating leases acquired from the date of acquisition : Balance Sheet Information June 30, 2024 December 31, 2023 Assets Operating lease right-of-use assets $ 99,121 $ 100,065 Liabilities Sundry payables and accrued expenses $ 17,212 $ 17,139 Noncurrent operating lease liabilities 88,820 88,974 Total operating lease liabilities $ 106,032 $ 106,113 Weighted Average Remaining Lease Term 8.1 Years 8.3 Years Weighted Average Discount Rate 4.9 % 4.8 % Three Months Ended June 30, Six Months Ended June 30, Lease Expense 2024 2023 2024 2023 Lease expense $ 4,852 $ 3,776 $ 9,672 $ 6,885 Variable and other lease expense (a) 628 511 1,408 1,283 Total lease costs $ 5,480 $ 4,287 $ 11,080 $ 8,168 (a) Variable and other lease expense relate 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 are not material. Six Months Ended June 30, 2024 2023 Supplemental Cash Flow Information Cash paid for the amounts included in the measurement of lease liabilities $ 8,801 $ 5,476 Right-of-use assets obtained in exchange for new lease obligations (a) $ 6,674 $ 30,830 (a) Includes $4.7 million of right-of-use assets related to the lease modification and extension for our manufacturing facility in Bialystok, Poland during the six months ended June 30, 2024, and $27.8 million of right-of-use assets related to the lease modification and extension for our distribution center and office in Lewisville, Texas during the six months ended June 30, 2023. |
Minimum Lease Payments | At June 30, 2024, we are obligated to make minimum lease payments through 2034, under operating leases, which are as follows (in thousands): 2024 $ 9,344 2025 16,919 2026 15,554 2027 14,317 2028 12,605 Thereafter 62,086 Total lease payments $ 130,825 Less: Interest (24,793 ) Present value of lease liabilities $ 106,032 |
Credit Facilities and Long-Te_2
Credit Facilities and Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Credit Facilities and Long-Term Debt [Abstract] | |
Summary of Total Debt Outstanding | Total debt outstanding is summarized as follows: June 30, 2024 December 31, 2023 (In thousands) Credit facility – term loan due 2027 $ 90,000 $ 92,500 Credit facility – revolver due 2027 118,000 63,500 Other 192 211 Total debt $ 208,192 $ 156,211 Current maturities of debt $ 5,030 $ 5,029 Long-term debt 203,162 151,182 Total debt $ 208,192 $ 156,211 |
Maturities of Debt | As of June 30, 2024, maturities of debt through 2027, assuming no prepayments, are as follows (in thousands): Revolving Credit Facility Term A-1 Loan Polish Overdraft Facility and Other Debt Total Remainder of 2024 $ — $ 2,500 $ 14 $ 2,514 2025 — 5,000 31 5,031 2026 — 7,500 47 7,547 2027 118,000 75,000 100 193,100 Total $ 118,000 $ 90,000 $ 192 $ 208,192 Less: current maturities — (5,000 ) (30 ) (5,030 ) Long-term debt $ 118,000 $ 85,000 $ 162 $ 203,162 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income Attributable to SMP (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income Attributable to SMP [Abstract] | |
Changes in Accumulated Other Comprehensive Income by Component | Changes in Accumulated Other Comprehensive Income by Component (in thousands) Three Months Ended June 30, 2024 Foreign Currency Translation Unrealized derivative gains (losses) Unrecognized Postretirement Benefit Costs (Credit) Total Balance at March 31, 2024 $ (10,117 ) $ 4,290 $ 21 $ (5,806 ) Other comprehensive income (loss) before reclassifications (3,733 ) 573 (a) — (3,160 ) Amounts reclassified from accumulated other comprehensive income — (494 ) (2 ) (496 ) Other comprehensive income (loss), net (3,733 ) 79 (2 ) (3,656 ) Balance at June 30 2024 $ (13,850 ) $ 4,369 $ 19 $ (9,462 ) Six Months Ended June 30, 2024 Foreign Currency Translation Unrealized derivative gains (losses) Unrecognized Postretirement Benefit Costs (Credit) Total Balance at December 31, 2023 $ (8,897 ) $ 2,899 $ 24 $ (5,974 ) Other comprehensive income (loss) before reclassifications (4,953 ) 2,461 (a) — (2,492 ) Amounts reclassified from accumulated other comprehensive income — (991 ) (5 ) (996 ) Other comprehensive income (loss), net (4,953 ) 1,470 (5 ) (3,488 ) Balance at June 30 2024 $ (13,850 ) $ 4,369 $ 19 $ (9,462 ) (a) Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $ 0.1 0.1 2 1.5 0.7 0.5 1.3 1 |
Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications Out of Accumulated Other Comprehensive Income (in thousands) Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 Derivative cash flow hedge: Unrecognized loss (a) $ (668 ) $ (1,339 ) Postretirement benefit plans: Unrecognized loss (b) (4 ) (9 ) Total before income tax (672 ) (1,348 ) Income tax benefit (176 ) (352 ) Total reclassifications attributable to SMP $ (496 ) $ (996 ) (a) 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. (b) Unrecognized accumulated other comprehensive income (loss) related to our postretirement benefit 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, 2024 | |
Stock-Based Compensation Plans [Abstract] | |
Restricted and Performance-based Share Activity | Our : Shares Weighted Average Grant Date Fair Value Per Share Balance at 2023 880,976 $ 29.48 Granted 6,775 27.64 Vested (35,609 ) 28.77 Forfeited (29,225 ) 29.86 Balance at June 30 2024 822,917 $ 29.48 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 and December 31, 2023 (in thousands): June 30, 2024 December 31, 2023 Fair Value Hierarchy Level Fair Value Carrying Amount Fair Value Carrying Amount Cash and cash equivalents (a) 1, 2 $ 26,156 $ 26,156 $ 32,526 $ 32,526 Deferred compensation 1 25,799 25,799 23,893 23,893 Short term borrowings 2 5,030 5,030 5,029 5,029 Long-term debt 2 203,162 203,162 151,182 151,182 Cash flow interest rate swap 2 5,926 5,926 3,939 3,939 Long-term investments 2 7,573 7,573 7,468 7,468 (a) As of June 30, 2024 cash and cash equivalents consist solely of cash of $ 26.2 29.5 3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 N et earnings (loss) attributable to SMP Continuing operations $ 17,980 $ 18,358 $ 27,843 $ 31,056 Discontinued operations (917 ) (9,221 ) (1,956 ) (10,001 ) Net earnings attributable to SMP $ 17,063 $ 9,137 $ 25,887 $ 21,055 Basic net earnings (loss) per common share attributable to SMP Continuing operations $ 0.83 $ 0.85 $ 1.27 $ 1.43 Discontinued operations $ (0.05 ) $ (0.43 ) $ (0.09 ) $ (0.46 ) Diluted net earnings (loss) per common share attributable to SMP Continuing operations $ 0.81 $ 0.83 $ 1.25 $ 1.40 Discontinued operations $ (0.04 ) $ (0.42 ) $ (0.09 ) $ (0.45 ) Weighted average common shares outstanding, basic 21,768 21,689 21,846 21,650 Dilutive effect of restricted stock and performance-based stock 418 494 432 490 Weighted average common shares outstanding, diluted 22,186 22,183 22,278 22,140 |
Anti-dilutive Securities Excluded from Computation of Earnings per Share | The Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Restricted and performance-based shares 290 273 286 286 |
Industry Segments (Tables)
Industry Segments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Industry Segments [Abstract] | |
Sales and Operating Income by Operating Segments | The following tables show our net sales and operating income for each reportable operating segment (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net Sales (a) Vehicle Control $ 188,741 $ 183,789 $ 374,265 $ 368,366 Temperature Control 124,481 97,074 196,089 169,480 Engineered Solutions 76,607 72,212 150,878 143,257 Other — — — — Consolidated $ 389,829 $ 353,075 $ 721,232 $ 681,103 Operating Income Vehicle Control $ 15,116 $ 19,273 $ 30,656 $ 36,648 Temperature Control 13,197 5,800 15,228 7,884 Engineered Solutions 5,812 6,163 8,044 11,810 Other (9,139 ) (4,058 ) (14,323 ) (8,418 ) Consolidated $ 24,986 $ 27,178 $ 39,605 $ 47,924 (a) There are no intersegment sales among our Vehicle Control, Temperature Control and Engineered Solutions operating segments. |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Net Sales [Abstract] | |
Disaggregation of Net Sales | The following table summarizes consolidated net sales by major product group within each operating segment for the three and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Vehicle Control Engine Management (Ignition, Emissions and Fuel Delivery) $ 115,529 $ 113,589 $ 231,614 $ 229,672 Electrical and Safety 57,128 52,867 109,535 104,671 Wire Sets and Other 16,084 17,333 33,116 34,023 Total Vehicle Control 188,741 183,789 374,265 368,366 Temperature Control AC System Components 99,970 72,730 149,930 123,528 Other Thermal Components 24,511 24,344 46,159 45,952 Total Temperature Control 124,481 97,074 196,089 169,480 Engineered Solutions Commercial Vehicle 23,483 20,225 46,391 40,457 Construction/Agriculture 9,473 11,138 19,549 22,830 Light Vehicle 24,686 23,981 46,489 47,000 All Other 18,965 16,868 38,449 32,970 Total Engineered Solutions 76,607 72,212 150,878 143,257 Other — — — — Total $ 389,829 $ 353,075 $ 721,232 $ 681,103 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. The following tables provide disaggregation of net sales information by geographic area within each operating segment for the three and six months ended June 30, 2024 and 2023 (in thousands): Three months ended June 30, 2024 Vehicle Control Temperature Control Engineered Solutions Other Total United States $ 167,899 $ 117,632 $ 40,949 $ — $ 326,480 Canada 8,681 6,585 8,497 — 23,763 Europe 261 35 13,878 — 14,174 Mexico 10,795 4 2,723 — 13,522 Asia 27 154 9,644 — 9,825 Other foreign 1,078 71 916 — 2,065 Total $ 188,741 $ 124,481 $ 76,607 $ — $ 389,829 Three months ended June 30, 2023 Vehicle Control Temperature Control Engineered Solutions Other Total United States $ 165,198 $ 92,099 $ 44,565 $ — $ 301,862 Canada 8,834 4,926 6,126 — 19,886 Europe 248 — 14,914 — 15,162 Mexico 8,179 18 2,038 — 10,235 Asia 88 — 4,273 — 4,361 Other foreign 1,242 31 296 — 1,569 Total $ 183,789 $ 97,074 $ 72,212 $ — $ 353,075 Six months ended June 30, 2024 Vehicle Control Temperature Control Engineered Solutions Other Total United States $ 332,720 $ 182,297 $ 81,403 $ — $ 596,420 Canada 17,839 13,217 16,679 — 47,735 Europe 544 51 28,084 — 28,679 Mexico 20,815 9 4,930 — 25,754 Asia 128 295 18,205 — 18,628 Other foreign 2,219 220 1,577 — 4,016 Total $ 374,265 $ 196,089 $ 150,878 $ — $ 721,232 Six months ended June 30, 2023 Vehicle Control Temperature Control Engineered Solutions Other Total United States $ 331,610 $ 161,670 $ 88,771 $ — $ 582,051 Canada 17,164 7,681 11,364 — 36,209 Europe 446 — 29,998 — 30,444 Mexico 16,766 18 3,806 — 20,590 Asia 150 20 8,327 — 8,497 Other foreign 2,230 91 991 — 3,312 Total $ 368,366 $ 169,480 $ 143,257 $ — $ 681,103 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 2023 2024 2023 Balance, beginning of period $ 23,092 $ 20,600 $ 21,134 $ 19,667 Liabilities accrued for current year sales 37,003 30,047 65,680 55,840 Settlements of warranty claims (32,552 ) (27,061 ) (59,271 ) (51,921 ) Balance, end of period $ 27,543 $ 23,586 $ 27,543 $ 23,586 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2024 Segment | |
Basis of Presentation [Abstract] | |
Number of reportable segments | 2 |
Equity ownership in entities included in consolidated financial statements, minimum | 50% |
Business Acquisitions and Inv_3
Business Acquisitions and Investments (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||||||
Jul. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jul. 31, 2023 CNY (¥) | Dec. 31, 2022 | Mar. 31, 2018 USD ($) | Mar. 31, 2018 CNY (¥) | Apr. 30, 2014 USD ($) | ||
Investments in and Advances to Affiliates, Balance [Abstract] | ||||||||||
Investments in unconsolidated affiliates | $ 25,615 | $ 24,050 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||||
Goodwill | $ 134,476 | $ 134,729 | ||||||||
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co Ltd [Member] | ||||||||||
Investments in and Advances to Affiliates, Balance [Abstract] | ||||||||||
Percentage of equity interest acquired | 15% | 80% | 15% | 65% | 15% | 15% | 50% | |||
Investments in unconsolidated affiliates | $ 4,000 | ¥ 27,378,290 | $ 4,200 | ¥ 26,475,583 | $ 14,000 | |||||
Total purchase consideration | [1] | 21,725 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||||
Cash and cash equivalents | 6,779 | |||||||||
Receivables | 5,912 | |||||||||
Inventory | 5,945 | |||||||||
Other current assets | 528 | |||||||||
Property, plant, and equipment, net | 2,924 | |||||||||
Operating lease right-of-use assets | 4,372 | |||||||||
Intangible assets | [2] | 532 | ||||||||
Goodwill | 2,208 | |||||||||
Long term investments and other assets | 7,257 | |||||||||
Current liabilities | (6,004) | |||||||||
Noncurrent operating lease liabilities | (3,455) | |||||||||
Subtotal | 26,998 | |||||||||
Fair value of acquired noncontrolling interest | (5,273) | |||||||||
Net assets acquired | 21,725 | |||||||||
Equity investment interest held | $ 17,700 | |||||||||
Cash paid for the acquisition of equity interest | 4,000 | |||||||||
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co Ltd [Member] | Temperature Control Segment [Member] | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||||
Goodwill | 1,200 | |||||||||
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co Ltd [Member] | Engineered Solutions Segment [Member] | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||||
Goodwill | $ 1,000 | |||||||||
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co Ltd [Member] | Customer Relationships [Member] | ||||||||||
Investments in and Advances to Affiliates, Balance [Abstract] | ||||||||||
Estimated useful life of intangible assets | 10 years | 10 years | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||||
Intangible assets | $ 400 | |||||||||
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co Ltd [Member] | Capitalized Software [Member] | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||||
Intangible assets | $ 100 | |||||||||
[1]Total purchase consideration is the sum of the fair value of the previously held equity investment interest in Gwo Yng of $17.7 million and the cash paid of $4 million for the acquisition of the additional 15% equity ownership interest.[2]Intangible assets consists of customer relationships of $0.4 million and capitalized software of $0.1 million. |
Restructuring and Integration_3
Restructuring and Integration Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2026 | Dec. 31, 2025 | ||
Restructuring and integration activities [Roll Forward] | |||||||
Amounts provided for during 2024 (a) | $ 2,559 | $ 294 | $ 2,751 | $ 1,206 | |||
Voluntary Retirement Incentive Program [Member] | |||||||
Restructuring Costs [Abstract] | |||||||
Remaining expected restructuring costs | 3,100 | 3,100 | |||||
Aggregate restructuring cost | 6,200 | ||||||
Restructuring and integration activities [Roll Forward] | |||||||
Exit activity liability, beginning of period | 0 | ||||||
Amounts provided for during 2024 (a) | [1] | 2,589 | |||||
Stock-based compensation | 166 | ||||||
Cash payments | (128) | ||||||
Exit activity liability, end of period | 2,627 | 2,627 | |||||
Voluntary Retirement Incentive Program [Member] | Forecast [Member] | |||||||
Restructuring Costs [Abstract] | |||||||
Remaining expected restructuring costs | $ 100 | $ 400 | |||||
Voluntary Retirement Incentive Program [Member] | Vehicle Control Segment [Member] | |||||||
Restructuring and integration activities [Roll Forward] | |||||||
Amounts provided for during 2024 (a) | 1,100 | ||||||
Voluntary Retirement Incentive Program [Member] | Temperature Control Segment [Member] | |||||||
Restructuring and integration activities [Roll Forward] | |||||||
Amounts provided for during 2024 (a) | 200 | ||||||
Voluntary Retirement Incentive Program [Member] | Engineered Solutions Segment [Member] | |||||||
Restructuring and integration activities [Roll Forward] | |||||||
Amounts provided for during 2024 (a) | 400 | ||||||
Voluntary Retirement Incentive Program [Member] | Other Segment [Member] | |||||||
Restructuring and integration activities [Roll Forward] | |||||||
Amounts provided for during 2024 (a) | 900 | ||||||
Cost Reduction Initiative [Member] | |||||||
Restructuring and integration activities [Roll Forward] | |||||||
Exit activity liability, beginning of period | 1,729 | ||||||
Amounts provided for during 2024 (a) | [2] | 162 | |||||
Cash payments | (1,157) | ||||||
Foreign currency exchange rate changes | (24) | ||||||
Exit activity liability, end of period | 710 | 710 | |||||
Cost Reduction Initiative [Member] | Vehicle Control Segment [Member] | |||||||
Restructuring and integration activities [Roll Forward] | |||||||
Amounts provided for during 2024 (a) | 52 | ||||||
Cost Reduction Initiative [Member] | Temperature Control Segment [Member] | |||||||
Restructuring and integration activities [Roll Forward] | |||||||
Amounts provided for during 2024 (a) | 75 | ||||||
Cost Reduction Initiative [Member] | Engineered Solutions Segment [Member] | |||||||
Restructuring and integration activities [Roll Forward] | |||||||
Amounts provided for during 2024 (a) | 35 | ||||||
Cost Reduction Initiative [Member] | Workforce Reduction [Member] | |||||||
Restructuring and integration activities [Roll Forward] | |||||||
Exit activity liability, beginning of period | 1,729 | ||||||
Amounts provided for during 2024 (a) | [2] | (46) | |||||
Cash payments | (949) | ||||||
Foreign currency exchange rate changes | (24) | ||||||
Exit activity liability, end of period | 710 | 710 | |||||
Cost Reduction Initiative [Member] | Other Exit Costs [Member] | |||||||
Restructuring and integration activities [Roll Forward] | |||||||
Exit activity liability, beginning of period | 0 | ||||||
Amounts provided for during 2024 (a) | [2] | 208 | |||||
Cash payments | (208) | ||||||
Foreign currency exchange rate changes | 0 | ||||||
Exit activity liability, end of period | $ 0 | $ 0 | |||||
[1]Restructuring and integration expenses incurred during the six months ended June 30, 2024 consist of $1.1 million in our Vehicle Control segment, $0.2 million in our Temperature Control segment, $0.4 million in our Engineered Solutions segment and $0.9 million in our Other segment.[2]Restructuring and integration expenses incurred during the six months ended June 30, 2024 consist of $52,000 in our Vehicle Control segment, $75,000 in our Temperature Control segment and $35,000 in our Engineered Solutions segment. |
Sale of Receivables (Details)
Sale of Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Sale of Receivables [Abstract] | |||||
Sale of receivables to financial institutions | $ 230.1 | $ 211.6 | $ 400.9 | $ 382.5 | |
Receivables not yet collected | 14.4 | 14.4 | $ 4.5 | ||
Charge related to sale of receivables | $ 13.4 | $ 12.4 | $ 23.4 | $ 21.5 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Inventories [Abstract] | ||
Finished goods | $ 310,310 | $ 302,557 |
Work in process | 15,094 | 18,503 |
Raw materials | 182,779 | 186,015 |
Subtotal | 508,183 | 507,075 |
Unreturned customer inventories | 18,119 | 18,240 |
Total inventories | $ 526,302 | $ 525,315 |
Acquired Intangible Assets, Ide
Acquired Intangible Assets, Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Indefinite Lived Intangible Assets [Abstract] | |||
Acquired intangible assets | $ 187,095 | $ 186,899 | |
Less Accumulated amortization | [1] | (100,379) | (95,681) |
Net acquired intangible assets | 86,716 | 91,218 | |
Customer Relationships [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Acquired intangible assets | 159,824 | 159,641 | |
Patents, Developed Technology and Intellectual Property [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Acquired intangible assets | 14,123 | 14,123 | |
Trademarks and Trade Names [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Acquired intangible assets | 8,880 | 8,880 | |
Acquired indefinite-lived intangible assets | 2,600 | ||
Non-compete Agreements [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Acquired intangible assets | 3,308 | 3,295 | |
Supply Agreements [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
Acquired intangible assets | 800 | 800 | |
Leaseholds [Member] | |||
Indefinite Lived Intangible Assets [Abstract] | |||
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Amortization of acquired intangible assets [Abstract] | ||||
Amortization expense | $ 2.1 | $ 2.1 | $ 4.3 | $ 4.3 |
Estimated amortization expense, remainder of 2024 | 4.1 | 4.1 | ||
Estimated amortization expense in year 2025 | 8.5 | 8.5 | ||
Estimated amortization expense in year 2026 | 8.5 | 8.5 | ||
Estimated amortization expense in year 2027 | 8.5 | 8.5 | ||
Estimated amortization expense in years 2028 through 2041 | $ 54.5 | $ 54.5 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||
Quantitative Lease Disclosures [Abstract] | ||||||
Renewal option period | 5 years | 5 years | ||||
Assets [Abstract] | ||||||
Operating lease right-of-use assets | $ 99,121 | $ 99,121 | $ 100,065 | |||
Liabilities [Abstract] | ||||||
Sundry payables and accrued expenses | 17,212 | 17,212 | 17,139 | |||
Noncurrent operating lease liabilities | 88,820 | 88,820 | 88,974 | |||
Total operating lease liabilities | $ 106,032 | $ 106,032 | $ 106,113 | |||
Weighted average remaining lease term | 8 years 1 month 6 days | 8 years 1 month 6 days | 8 years 3 months 18 days | |||
Weighted average discount rate | 4.90% | 4.90% | 4.80% | |||
Lease Expense [Abstract] | ||||||
Lease expense | $ 4,852 | $ 3,776 | $ 9,672 | $ 6,885 | ||
Variable and other lease expense | [1] | 628 | 511 | 1,408 | 1,283 | |
Total lease costs | 5,480 | $ 4,287 | 11,080 | 8,168 | ||
Supplemental Cash Flow Information [Abstract] | ||||||
Cash paid for the amounts included in the measurement of lease liabilities | 8,801 | 5,476 | ||||
Right-of-use assets obtained in exchange for new lease obligations | [2] | 6,674 | 30,830 | |||
Minimum Lease Payments [Abstract] | ||||||
2024 | 9,344 | 9,344 | ||||
2025 | 16,919 | 16,919 | ||||
2026 | 15,554 | 15,554 | ||||
2027 | 14,317 | 14,317 | ||||
2028 | 12,605 | 12,605 | ||||
Thereafter | 62,086 | 62,086 | ||||
Total lease payments | 130,825 | 130,825 | ||||
Less: Interest | (24,793) | (24,793) | ||||
Total operating lease liabilities | $ 106,032 | $ 106,032 | $ 106,113 | |||
Maximum [Member] | ||||||
Quantitative Lease Disclosures [Abstract] | ||||||
Remaining operating lease terms | 10 years | 10 years | ||||
Poland | ||||||
Supplemental Cash Flow Information [Abstract] | ||||||
Right-of-use assets related to lease modifications and extension | $ 4,700 | |||||
Texas | ||||||
Supplemental Cash Flow Information [Abstract] | ||||||
Right-of-use assets related to lease modifications and extension | $ 27,800 | |||||
[1]Variable and other lease expense relate 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 are not material.[2]Includes $4.7 million of right-of-use assets related to the lease modification and extension for our manufacturing facility in Bialystok, Poland during the six months ended June 30, 2024, and $27.8 million of right-of-use assets related to the lease modification and extension for our distribution center and office in Lewisville, Texas during the six months ended June 30, 2023. |
Credit Facilities and Long-Te_3
Credit Facilities and Long-Term Debt, Total Debt Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instruments [Abstract] | ||
Total debt | $ 208,192 | $ 156,211 |
Current maturities of debt | 5,030 | 5,029 |
Long-term debt | 203,162 | 151,182 |
Credit Facility - Term Loan Due 2027 [Member] | ||
Debt Instruments [Abstract] | ||
Total debt | 90,000 | 92,500 |
Credit Facility - Revolver Due 2027 [Member] | ||
Debt Instruments [Abstract] | ||
Total debt | 118,000 | 63,500 |
Current maturities of debt | 0 | |
Long-term debt | 118,000 | |
Other [Member] | ||
Debt Instruments [Abstract] | ||
Total debt | 192 | $ 211 |
Current maturities of debt | 30 | |
Long-term debt | $ 162 |
Credit Facilities and Long-Te_4
Credit Facilities and Long-Term Debt, Term Loan and Revolving Credit Facilities (Details) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2024 USD ($) | Jun. 30, 2024 USD ($) Installment | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Term Loan and Revolving Credit Facilities [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Debt instrument term | 5 years | ||||
Maturity date | Jun. 01, 2027 | ||||
Maximum borrowing capacity | $ 500 | ||||
Debt instrument, extension period | 1 year | ||||
Borrowing base | $ 168 | ||||
Maximum consolidated EBITDA | 1 | ||||
Outstanding borrowings under credit facility | $ 208 | $ 156 | |||
Current portion of debt | 5 | 5 | |||
Long-term debt | 203 | 151 | |||
Outstanding letters of credit | $ 2.3 | $ 2.3 | |||
Weighted average interest rate | 5.70% | 5% | |||
Term Loan and Revolving Credit Facilities [Member] | Maximum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Number of extensions of maturity date | Installment | 2 | ||||
Net leverage ratio | 250% | ||||
Term Loan and Revolving Credit Facilities [Member] | SOFR [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Term of variable rate | 1 month | ||||
Interest rate periods | one, three or six months | ||||
Outstanding borrowings under credit facility | $ 208 | $ 156 | |||
Weighted average interest rate | 5% | ||||
Term Loan and Revolving Credit Facilities [Member] | SOFR [Member] | Minimum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 0.10% | ||||
Term Loan and Revolving Credit Facilities [Member] | SOFR [Member] | Maximum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 1.10% | ||||
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] | |||||
Average daily loan balance outstanding | $ 1 | $ 0.2 | $ 0.1 | ||
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 A-1 Loan [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | 100 | ||||
Frequency of periodic payment | quarterly | ||||
Term A-1 Loan [Member] | First Four Years [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Periodic payment amortization percentage | 1.25% | ||||
Term A-1 Loan [Member] | Fifth Year [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Periodic payment amortization percentage | 2.50% | ||||
Term A-2 Loan [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Debt instrument term | 5 years | ||||
Frequency of periodic payment | quarterly | ||||
Term A-2 Loan [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | $ 125 | ||||
Term A-2 Loan [Member] | First and Second Year [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Periodic payment amortization percentage | 1.25% | ||||
Term A-2 Loan [Member] | Third Year [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Periodic payment amortization percentage | 1.875% | ||||
Term A-2 Loan [Member] | Fourth and Fifth Year [Member] | Subsequent Event [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 | ||||
Letter of Credit Sublimit [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | 25 | ||||
Swing Line Loans [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | 25 | ||||
Interest Rate Swap Agreement [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Term of variable rate | 1 month | ||||
Outstanding borrowings under credit facility | $ 100 | $ 100 | $ 100 |
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, 2024 USD ($) | Dec. 31, 2023 USD ($) | Nov. 30, 2023 USD ($) | Nov. 30, 2023 PLN (zł) | |
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | $ 7.5 | zł 30 | ||
Threshold percentage of borrowing capacity | 85% | |||
Threshold borrowing capacity limit | $ 6.4 | |||
Overdraft facility renewal period | 3 months | |||
Overdraft facility cancellation period | 30 days | |||
Overdraft facility | $ 0 | $ 0 | ||
1M WIBOR [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable rate | 1% | |||
1M EURIBOR [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable rate | 1% | |||
Mid-Point of Fed Target Range [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable rate | 1.25% |
Credit Facilities and Long-Te_6
Credit Facilities and Long-Term Debt, Maturities of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Maturities of Debt [Abstract] | ||
Remainder of 2024 | $ 2,514 | |
2025 | 5,031 | |
2026 | 7,547 | |
2027 | 193,100 | |
Total debt | 208,192 | $ 156,211 |
Less: current maturities | (5,030) | (5,029) |
Long-term debt | 203,162 | 151,182 |
Revolving Credit Facility [Member] | ||
Maturities of Debt [Abstract] | ||
Remainder of 2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 118,000 | |
Total debt | 118,000 | 63,500 |
Less: current maturities | 0 | |
Long-term debt | 118,000 | |
Term A-1 Loan [Member] | ||
Maturities of Debt [Abstract] | ||
Remainder of 2024 | 2,500 | |
2025 | 5,000 | |
2026 | 7,500 | |
2027 | 75,000 | |
Total debt | 90,000 | |
Less: current maturities | (5,000) | |
Long-term debt | 85,000 | |
Polish Overdraft Facility and Other Debt [Member] | ||
Maturities of Debt [Abstract] | ||
Remainder of 2024 | 14 | |
2025 | 31 | |
2026 | 47 | |
2027 | 100 | |
Total debt | 192 | $ 211 |
Less: current maturities | (30) | |
Long-term debt | $ 162 |
Credit Facilities and Long-Te_7
Credit Facilities and Long-Term Debt, Deferred Financing Costs (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Deferred Financing Costs [Abstract] | ||
Deferred financing costs | $ 1.3 | $ 1.6 |
Deferred Finance Costs, Amortization [Abstract] | ||
Remainder of 2024 | 0.2 | |
2025 | 0.5 | |
2026 | 0.5 | |
2027 | $ 0.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income Attributable to SMP, Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | ||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Beginning balance | $ 635,064 | ||
Other comprehensive income (loss) before reclassifications | $ (3,160) | (2,492) | |
Amounts reclassified from accumulated other comprehensive income | (496) | (996) | |
Other comprehensive income (loss), net | (3,656) | (3,488) | |
Ending balance | 640,018 | 640,018 | |
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 | 100 | 2,000 | |
Unrecognized gain relating to change in fair value of cash flow interest rate hedge, net of tax | 100 | 1,500 | |
Unrecognized gain, cash receipts | 700 | 1,300 | |
Unrecognized gain, cash receipts, net of tax | 500 | 1,000 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Beginning balance | (5,806) | (5,974) | |
Ending balance | (9,462) | (9,462) | |
Foreign Currency Translation [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Beginning balance | (10,117) | (8,897) | |
Other comprehensive income (loss) before reclassifications | (3,733) | (4,953) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Other comprehensive income (loss), net | (3,733) | (4,953) | |
Ending balance | (13,850) | (13,850) | |
Unrealized Derivative Gains (Losses) [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Beginning balance | 4,290 | 2,899 | |
Other comprehensive income (loss) before reclassifications | [1] | 573 | 2,461 |
Amounts reclassified from accumulated other comprehensive income | (494) | (991) | |
Other comprehensive income (loss), net | 79 | 1,470 | |
Ending balance | 4,369 | 4,369 | |
Unrecognized Postretirement Benefit Costs (Credit) [Member] | |||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | |||
Beginning balance | 21 | 24 | |
Other comprehensive income (loss) before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | (2) | (5) | |
Other comprehensive income (loss), net | (2) | (5) | |
Ending balance | $ 19 | $ 19 | |
[1]Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $ 0.1 0.1 2 1.5 0.7 0.5 1.3 1 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income Attributable to SMP, Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Details About Accumulated Other Comprehensive Income Components [Abstract] | |||||
Interest expense | $ 2,752 | $ 3,283 | $ 4,819 | $ 7,145 | |
Other non-operating income (expense), net | 2,199 | 802 | 3,018 | 1,027 | |
Earnings from continuing operations before taxes | 24,433 | 24,697 | 37,804 | 41,806 | |
Income tax benefit | 6,109 | 6,289 | 9,451 | 10,661 | |
Net earnings attributable to SMP | [1] | 17,063 | $ 9,137 | 25,887 | $ 21,055 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Details About Accumulated Other Comprehensive Income Components [Abstract] | |||||
Earnings from continuing operations before taxes | (672) | (1,348) | |||
Income tax benefit | (176) | (352) | |||
Net earnings attributable to SMP | (496) | (996) | |||
Unrealized Derivative Gains (Losses) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Details About Accumulated Other Comprehensive Income Components [Abstract] | |||||
Interest expense | [2] | (668) | (1,339) | ||
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 (expense), net | [3] | $ (4) | $ (9) | ||
[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 postretirement benefit 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, 2024 USD ($) Type $ / shares shares | Jun. 30, 2023 USD ($) | |
Restricted and Performance Stock Grants [Abstract] | ||
Number of types of restricted stock | Type | 2 | |
Additional Disclosures [Abstract] | ||
Compensation expense, gross | $ | $ 3,049 | $ 3,633 |
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) | 880,976 | |
Granted (in shares) | 6,775 | |
Vested (in shares) | (35,609) | |
Forfeited (in shares) | (29,225) | |
End of period (in shares) | 822,917 | |
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward] | ||
Beginning of period (in dollars per share) | $ / shares | $ 29.48 | |
Granted (in dollars per share) | $ / shares | 27.64 | |
Vested (in dollars per share) | $ / shares | 28.77 | |
Forfeited (in dollars per share) | $ / shares | 29.86 | |
End of period (in dollars per share) | $ / shares | $ 29.48 | |
Additional Disclosures [Abstract] | ||
Compensation expense, gross | $ | $ 3,000 | 3,200 |
Compensation expense, net of tax | $ | 2,300 | $ 2,400 |
Unrecognized compensation expense | $ | $ 9,900 | |
Restricted and Performance-Based Shares [Member] | Employees [Member] | ||
Additional Disclosures [Abstract] | ||
Weighted average period of recognition for unrecognized compensation expense | 3 years 8 months 1 day | |
Restricted and Performance-Based Shares [Member] | Directors [Member] | ||
Additional Disclosures [Abstract] | ||
Weighted average period of recognition for unrecognized compensation expense | 9 months 29 days | |
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Minimum [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
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] | ||
Holding period for restricted and performance shares issued | 2 years | |
2016 Omnibus Incentive Plan [Member] | Employees and Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Abstract] | ||
Shares authorized for issuance (in shares) | 2,050,000 |
Employee Benefits (Details)
Employee Benefits (Details) $ in Millions | 1 Months Ended | 6 Months Ended |
Mar. 31, 2024 USD ($) | Jun. 30, 2024 Employee shares | |
Benefit Plan [Abstract] | ||
Number of former union employees covered by the plan | Employee | 13 | |
Supplemental Executive Retirement Plan [Member] | ||
Defined Contribution Pension and Other Postretirement Plans [Abstract] | ||
Employer discretionary contribution amount | $ | $ 0.5 | |
Employee Stock Ownership Plan and Trust (ESOP) [Member] | ||
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract] | ||
Additional shares contributed to ESOP (in shares) | 68,700 | |
Shares released from trust (in shares) | 68,700 | |
Total remaining balance of shares in the ESOP (in shares) | 200 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2022 | |
Interest Rate Swap Agreement [Member] | |||
Notional Disclosures [Abstract] | |||
Borrowings under credit agreement | $ 100 | $ 100 | $ 100 |
Term of variable rate | 1 month | ||
Fixed interest rate | 2.683% | ||
Interest Rate Swap [Member] | |||
Notional Disclosures [Abstract] | |||
Derivative term of contract | 7 years | ||
Derivative, notional amount | $ 100 | ||
Derivative contract, maturity date | May 31, 2029 | ||
Derivative fair value | $ 5.9 | $ 3.9 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Level 1 [Member] | |||
Fair Value, Net Asset (Liability) [Abstract] | |||
Cash | $ 26,200 | $ 29,500 | |
Level 2 [Member] | |||
Fair Value, Net Asset (Liability) [Abstract] | |||
Cash equivalents | 3,000 | ||
Fair Value [Member] | Level 1/2 [Member] | |||
Fair Value, Net Asset (Liability) [Abstract] | |||
Cash and cash equivalents | [1] | 26,156 | 32,526 |
Fair Value [Member] | Level 1 [Member] | |||
Fair Value, Net Asset (Liability) [Abstract] | |||
Deferred compensation | 25,799 | 23,893 | |
Fair Value [Member] | Level 2 [Member] | |||
Fair Value, Net Asset (Liability) [Abstract] | |||
Short term borrowings | 5,030 | 5,029 | |
Long-term debt | 203,162 | 151,182 | |
Cash flow interest rate swap | 5,926 | 3,939 | |
Long-term investments | 7,573 | 7,468 | |
Carrying Amount [Member] | Level 1/2 [Member] | |||
Fair Value, Net Asset (Liability) [Abstract] | |||
Cash and cash equivalents | [1] | 26,156 | 32,526 |
Carrying Amount [Member] | Level 1 [Member] | |||
Fair Value, Net Asset (Liability) [Abstract] | |||
Deferred compensation | 25,799 | 23,893 | |
Carrying Amount [Member] | Level 2 [Member] | |||
Fair Value, Net Asset (Liability) [Abstract] | |||
Short term borrowings | 5,030 | 5,029 | |
Long-term debt | 203,162 | 151,182 | |
Cash flow interest rate swap | 5,926 | 3,939 | |
Long-term investments | $ 7,573 | $ 7,468 | |
[1] As of June 30, 2024 cash and cash equivalents consist solely of cash of $ 26.2 29.5 3 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Net earnings (loss) attributable to SMP [Abstract] | |||||
Continuing operations | $ 17,980 | $ 18,358 | $ 27,843 | $ 31,056 | |
Discontinued operations | (917) | (9,221) | (1,956) | (10,001) | |
Net earnings attributable to SMP | [1] | $ 17,063 | $ 9,137 | $ 25,887 | $ 21,055 |
Basic net earnings (loss) per common share attributable to SMP [Abstract] | |||||
Continuing operations (in dollars per share) | $ 0.83 | $ 0.85 | $ 1.27 | $ 1.43 | |
Discontinued operations (in dollars per share) | (0.05) | (0.43) | (0.09) | (0.46) | |
Diluted net earnings (loss) per common share attributable to SMP [Abstract] | |||||
Continuing operations (in dollars per share) | 0.81 | 0.83 | 1.25 | 1.4 | |
Discontinued operations (in dollars per share) | $ (0.04) | $ (0.42) | $ (0.09) | $ (0.45) | |
Weighted average common shares outstanding, basic (in shares) | 21,767,526 | 21,689,067 | 21,845,678 | 21,649,562 | |
Dilutive effect of restricted stock and performance-based stock (in shares) | 418,000 | 494,000 | 432,000 | 490,000 | |
Weighted average common shares outstanding, diluted (in shares) | 22,185,536 | 22,183,489 | 22,277,590 | 22,139,708 | |
Restricted and Performance-Based Shares [Member] | |||||
Earnings Per Share [Abstract] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 290,000 | 273,000 | 286,000 | 286,000 | |
[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, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Segment | Jun. 30, 2023 USD ($) | ||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Number of operating segments | Segment | 3 | ||||
Net sales | [1] | $ 389,829 | $ 353,075 | $ 721,232 | $ 681,103 |
Operating Income | 24,986 | 27,178 | 39,605 | 47,924 | |
Vehicle Control [Member] | Reportable Segments [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 188,741 | 183,789 | 374,265 | 368,366 |
Operating Income | 15,116 | 19,273 | 30,656 | 36,648 | |
Temperature Control [Member] | Reportable Segments [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 124,481 | 97,074 | 196,089 | 169,480 |
Operating Income | 13,197 | 5,800 | 15,228 | 7,884 | |
Engineered Solutions [Member] | Reportable Segments [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 76,607 | 72,212 | 150,878 | 143,257 |
Operating Income | 5,812 | 6,163 | 8,044 | 11,810 | |
Other [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net sales | [1] | 0 | 0 | 0 | 0 |
Operating Income | $ (9,139) | $ (4,058) | $ (14,323) | $ (8,418) | |
[1]There are no intersegment sales among our Vehicle Control, Temperature Control and Engineered Solutions operating segments. |
Net Sales (Details)
Net Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | $ 389,829 | $ 353,075 | $ 721,232 | $ 681,103 |
United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 326,480 | 301,862 | 596,420 | 582,051 |
Canada [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 23,763 | 19,886 | 47,735 | 36,209 |
Europe [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 14,174 | 15,162 | 28,679 | 30,444 |
Mexico [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 13,522 | 10,235 | 25,754 | 20,590 |
Asia [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 9,825 | 4,361 | 18,628 | 8,497 |
Other Foreign [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 2,065 | 1,569 | 4,016 | 3,312 |
Vehicle Control [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 188,741 | 183,789 | 374,265 | 368,366 |
Vehicle Control [Member] | United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 167,899 | 165,198 | 332,720 | 331,610 |
Vehicle Control [Member] | Canada [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 8,681 | 8,834 | 17,839 | 17,164 |
Vehicle Control [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 261 | 248 | 544 | 446 |
Vehicle Control [Member] | Mexico [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 10,795 | 8,179 | 20,815 | 16,766 |
Vehicle Control [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 27 | 88 | 128 | 150 |
Vehicle Control [Member] | Other Foreign [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 1,078 | 1,242 | 2,219 | 2,230 |
Vehicle Control [Member] | Engine Management (Ignition, Emissions and Fuel Delivery) [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 115,529 | 113,589 | 231,614 | 229,672 |
Vehicle Control [Member] | Electrical and Safety [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 57,128 | 52,867 | 109,535 | 104,671 |
Vehicle Control [Member] | Wire Sets and Other [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 16,084 | 17,333 | 33,116 | 34,023 |
Temperature Control [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 124,481 | 97,074 | 196,089 | 169,480 |
Temperature Control [Member] | United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 117,632 | 92,099 | 182,297 | 161,670 |
Temperature Control [Member] | Canada [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 6,585 | 4,926 | 13,217 | 7,681 |
Temperature Control [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 35 | 0 | 51 | 0 |
Temperature Control [Member] | Mexico [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 4 | 18 | 9 | 18 |
Temperature Control [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 154 | 0 | 295 | 20 |
Temperature Control [Member] | Other Foreign [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 71 | 31 | 220 | 91 |
Temperature Control [Member] | AC System Components [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 99,970 | 72,730 | 149,930 | 123,528 |
Temperature Control [Member] | Other Thermal Components [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 24,511 | 24,344 | 46,159 | 45,952 |
Engineered Solutions [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 76,607 | 72,212 | 150,878 | 143,257 |
Engineered Solutions [Member] | United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 40,949 | 44,565 | 81,403 | 88,771 |
Engineered Solutions [Member] | Canada [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 8,497 | 6,126 | 16,679 | 11,364 |
Engineered Solutions [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 13,878 | 14,914 | 28,084 | 29,998 |
Engineered Solutions [Member] | Mexico [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 2,723 | 2,038 | 4,930 | 3,806 |
Engineered Solutions [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 9,644 | 4,273 | 18,205 | 8,327 |
Engineered Solutions [Member] | Other Foreign [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 916 | 296 | 1,577 | 991 |
Engineered Solutions [Member] | Commercial Vehicle [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 23,483 | 20,225 | 46,391 | 40,457 |
Engineered Solutions [Member] | Construction Agriculture [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 9,473 | 11,138 | 19,549 | 22,830 |
Engineered Solutions [Member] | Light Vehicle [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 24,686 | 23,981 | 46,489 | 47,000 |
Engineered Solutions [Member] | All Other [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 18,965 | 16,868 | 38,449 | 32,970 |
Other [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 0 | 0 | 0 | 0 |
Other [Member] | United States [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 0 | 0 | 0 | 0 |
Other [Member] | Canada [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 0 | 0 | 0 | 0 |
Other [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 0 | 0 | 0 | 0 |
Other [Member] | Mexico [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 0 | 0 | 0 | 0 |
Other [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | 0 | 0 | 0 | 0 |
Other [Member] | Other Foreign [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Disaggregation of net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies,
Commitments and Contingencies, Asbestos and Other Litigation (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 274 Months Ended | ||||
Sep. 30, 2023 USD ($) | Aug. 31, 2022 USD ($) | Jun. 30, 2024 USD ($) Claim | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Claim | Dec. 31, 2023 USD ($) | Aug. 31, 2023 USD ($) | |
Asbestos [Abstract] | |||||||
Accrued asbestos liabilities | $ 66,357 | $ 66,357 | $ 72,013 | ||||
Asbestos [Member] | |||||||
Asbestos [Abstract] | |||||||
Pending claims, approximate number | Claim | 1,500 | 1,500 | |||||
Payment for settled claims and awards related damages, including interest | $ 80,300 | ||||||
Increase in range of possible loss from lower range | $ 15,200 | ||||||
Increase in range of possible loss from upper range | $ 23,700 | ||||||
Accrued asbestos liabilities | $ 84,000 | ||||||
Incremental pre-tax provision | $ 23,800 | ||||||
Asbestos [Member] | Minimum [Member] | |||||||
Asbestos [Abstract] | |||||||
Range of possible loss | $ 84,000 | ||||||
Asbestos [Member] | Maximum [Member] | |||||||
Asbestos [Abstract] | |||||||
Range of possible loss | 135,300 | ||||||
Asbestos [Member] | Discontinued Operations [Member] | |||||||
Asbestos [Abstract] | |||||||
Total operating cash outflows related to discontinued operations | $ 5,200 | $ 4,500 | |||||
Asbestos [Member] | Discontinued Operations [Member] | Minimum [Member] | |||||||
Asbestos [Abstract] | |||||||
Range of possible loss | 53,100 | ||||||
Asbestos [Member] | Discontinued Operations [Member] | Maximum [Member] | |||||||
Asbestos [Abstract] | |||||||
Range of possible loss | $ 105,200 |
Commitments and Contingencies_2
Commitments and Contingencies, Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Changes in product warranties [Roll forward] | ||||
Balance, beginning of period | $ 23,092 | $ 20,600 | $ 21,134 | $ 19,667 |
Liabilities accrued for current year sales | 37,003 | 30,047 | 65,680 | 55,840 |
Settlements of warranty claims | (32,552) | (27,061) | (59,271) | (51,921) |
Balance, end of period | $ 27,543 | $ 23,586 | $ 27,543 | $ 23,586 |
Subsequent Event (Details)
Subsequent Event (Details) - Nissens Automotive [Member] - Subsequent Event [Member] € in Millions, $ in Millions | 1 Months Ended | |
Jul. 31, 2024 EUR (€) Employee | Jul. 31, 2024 USD ($) Employee | |
Business Combination [Abstract] | ||
Acquisition price to be paid | € 360 | $ 388 |
Number of employees worldwide | 530 | 530 |