Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SUP | |
Entity Registrant Name | SUPERIOR INDUSTRIES INTERNATIONAL, INC. | |
Entity Central Index Key | 0000095552 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,886,053 | |
Smaller Reporting Company | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-06615 | |
Entity Tax Identification Number | 95-2594729 | |
Entity Address, Address Line One | 26600 Telegraph Road | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Southfield | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48033 | |
City Area Code | 248 | |
Local Phone Number | 352-7300 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
NET SALES | $ 318,967 | $ 372,603 | $ 635,243 | $ 753,569 |
Cost of sales | 287,347 | 331,570 | 582,477 | 677,958 |
GROSS PROFIT | 31,620 | 41,033 | 52,766 | 75,611 |
Selling, general and administrative expenses | 21,376 | 17,016 | 42,208 | 36,458 |
INCOME (LOSS) FROM OPERATIONS | 10,244 | 24,017 | 10,558 | 39,153 |
Interest expense, net | (15,823) | (15,690) | (31,701) | (31,388) |
Other income (expense), net | 875 | (2,600) | 338 | (2,787) |
INCOME (LOSS) BEFORE INCOME TAXES | (4,704) | 5,727 | (20,805) | 4,978 |
Income tax (provision) benefit | (6,420) | (5,794) | (23,068) | (9,092) |
NET INCOME (LOSS) | $ (11,124) | $ (67) | $ (43,873) | $ (4,114) |
EARNINGS (LOSS) PER SHARE - BASIC | $ (0.75) | $ (0.35) | $ (2.26) | $ (0.84) |
EARNINGS (LOSS) PER SHARE - DILUTED | $ (0.75) | $ (0.35) | $ (2.26) | $ (0.84) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (11,124) | $ (67) | $ (43,873) | $ (4,114) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation gain (loss) | (18,247) | 8,542 | (15,748) | 23,173 |
Change in unrecognized gains (losses) on derivative instruments | ||||
Change in fair value of derivatives | (20,723) | 33,595 | (17,257) | 53,048 |
Tax (provision) benefit | 4,747 | (3,251) | 3,975 | (4,584) |
Change in unrecognized gains (losses) on derivative instruments, net of tax | (15,976) | 30,344 | (13,282) | 48,464 |
Defined benefit pension plan: | ||||
Amortization of actuarial losses on pension obligation | 3 | 3 | ||
Tax (provision) benefit | 178 | |||
Pension changes, net of tax | 3 | 181 | ||
Other comprehensive income (loss), net of tax | (34,220) | 38,886 | (28,849) | 71,637 |
Comprehensive income (loss) | $ (45,344) | $ 38,819 | $ (72,722) | $ 67,523 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 172,262 | $ 201,606 |
Accounts receivable, net | 79,016 | 56,393 |
Inventories, net | 147,362 | 144,609 |
Income taxes receivable | 4,133 | 1,559 |
Current derivative financial instruments | 30,261 | 38,298 |
Other current assets | 22,533 | 17,464 |
Total current assets | 455,567 | 459,929 |
Property, plant and equipment, net | 366,451 | 398,599 |
Deferred income tax assets, net | 35,608 | 52,213 |
Intangibles, net | 22,620 | 33,242 |
Derivative financial instruments | 28,275 | 40,471 |
Other noncurrent assets | 45,281 | 46,117 |
Total assets | 953,802 | 1,030,571 |
Current liabilities: | ||
Accounts payable | 138,025 | 124,907 |
Short-term debt | 236,032 | 5,322 |
Accrued expenses | 67,232 | 66,838 |
Income taxes payable | 551 | 1,844 |
Total current liabilities | 441,840 | 198,911 |
Long-term debt (less current portion) | 371,693 | 610,632 |
Noncurrent income tax liabilities | 5,845 | 8,129 |
Deferred income tax liabilities, net | 1,194 | 1,903 |
Other noncurrent liabilities | 43,740 | 47,821 |
Commitments and contingent liabilities (Note 15) | ||
Mezzanine equity: | ||
Preferred stock, $0.01 par value Authorized - 1,000,000 shares Issued and outstanding - 150,000 shares outstanding at June 30, 2024 and December 31, 2023 | 265,386 | 248,222 |
Noncontrolling redeemable equity | 550 | 893 |
Shareholders' equity (deficit): | ||
Common stock, $0.01 par value Authorized - 100,000,000 shares Issued and outstanding - 28,886,053 and 28,091,440 shares at June 30, 2024 and December 31, 2023 | 118,082 | 115,340 |
Accumulated other comprehensive income (loss) | (51,140) | (22,291) |
Retained earnings (deficit) | (243,388) | (178,989) |
Total shareholders' equity (deficit) | (176,446) | (85,940) |
Total liabilities, mezzanine equity and shareholders' equity (deficit) | $ 953,802 | $ 1,030,571 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 150,000 | 150,000 |
Preferred stock, shares outstanding | 150,000 | 150,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 28,886,053 | 28,091,440 |
Common stock, shares outstanding | 28,886,053 | 28,091,440 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (43,873) | $ (4,114) |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 43,834 | 46,308 |
Income tax, noncash changes | 18,659 | 11,316 |
Stock-based compensation | 4,086 | 3,004 |
Amortization of debt issuance costs | 2,370 | 2,383 |
Other noncash items | (2,902) | 44 |
Accounts receivable | (28,544) | (24,847) |
Inventories | (6,358) | 1,392 |
Other assets and liabilities | (1,933) | 796 |
Accounts payable | 16,249 | (12,832) |
Income taxes | (6,132) | (12,283) |
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | (4,544) | 11,167 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property, plant, and equipment | (14,844) | (21,751) |
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | (14,844) | (21,751) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of debt | (2,774) | (12,414) |
Cash dividends paid | (3,383) | (6,696) |
Financing costs paid and other | (299) | (31) |
Payments related to tax withholdings for stock-based compensation | (1,345) | (3,307) |
Finance lease payments | (293) | (551) |
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | (8,094) | (22,999) |
Effect of exchange rate changes on cash | (1,862) | 1,676 |
Net changes in cash and cash equivalents | (29,344) | (31,907) |
Cash and cash equivalents at the beginning of the period | 201,606 | 213,022 |
Cash and cash equivalents at the end of the period | 172,262 | 181,115 |
Supplemental Cash Flow Information | ||
Cash paid during the period for interest | 31,625 | 30,653 |
Cash paid during the period for income taxes, net of refunds | 10,435 | 10,038 |
Non-cash Investing Activities | ||
Period end balance of accounts payable for property, plant, and equipment | $ 2,982 | $ 1,655 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Cumulative Translation Adjustment | Hedging Instruments | Pension Obligations | Retained Earnings (Deficit) |
Beginning of period at Dec. 31, 2022 | $ (25,297) | $ 111,105 | $ (110,704) | $ 19,844 | $ 1,591 | $ (47,133) |
Beginning of the period (in shares) at Dec. 31, 2022 | 27,016,125 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (4,114) | (4,114) | ||||
Change in accumulated other comprehensive income (loss), net of tax | 71,637 | 23,173 | 48,464 | |||
Common stock issued, net of shares withheld for employee taxes (in shares) | 1,075,315 | |||||
Stock-based compensation | (303) | $ (303) | ||||
Redeemable preferred 9% dividend and accretion | (19,085) | (19,085) | ||||
Noncontrolling redeemable equity dividend | (21) | (21) | ||||
End of period at Jun. 30, 2023 | 22,817 | $ 110,802 | (87,531) | 68,308 | 1,591 | (70,353) |
End of the period (in shares) at Jun. 30, 2023 | 28,091,440 | |||||
Beginning of period at Mar. 31, 2023 | (8,545) | $ 108,603 | (96,073) | 37,964 | 1,591 | (60,630) |
Beginning of the period (in shares) at Mar. 31, 2023 | 27,908,669 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (67) | (67) | ||||
Change in accumulated other comprehensive income (loss), net of tax | 38,886 | 8,542 | 30,344 | |||
Common stock issued, net of shares withheld for employee taxes (in shares) | 182,771 | |||||
Stock-based compensation | 2,199 | $ 2,199 | ||||
Redeemable preferred 9% dividend and accretion | (9,645) | (9,645) | ||||
Noncontrolling redeemable equity dividend | (11) | (11) | ||||
End of period at Jun. 30, 2023 | 22,817 | $ 110,802 | (87,531) | 68,308 | 1,591 | (70,353) |
End of the period (in shares) at Jun. 30, 2023 | 28,091,440 | |||||
Beginning of period at Dec. 31, 2023 | $ (85,940) | $ 115,340 | (83,002) | 59,859 | 852 | (178,989) |
Beginning of the period (in shares) at Dec. 31, 2023 | 28,091,440 | 28,091,440 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ (43,873) | (43,873) | ||||
Change in accumulated other comprehensive income (loss), net of tax | (28,849) | (15,748) | (13,282) | 181 | ||
Common stock issued, net of shares withheld for employee taxes (in shares) | 794,613 | |||||
Stock-based compensation | 2,742 | $ 2,742 | ||||
Redeemable preferred 9% dividend and accretion | (20,519) | (20,519) | ||||
Noncontrolling redeemable equity dividend | (7) | (7) | ||||
End of period at Jun. 30, 2024 | $ (176,446) | $ 118,082 | (98,750) | 46,577 | 1,033 | (243,388) |
End of the period (in shares) at Jun. 30, 2024 | 28,886,053 | 28,886,053 | ||||
Beginning of period at Mar. 31, 2024 | $ (122,907) | $ 115,924 | (80,503) | 62,553 | 1,030 | (221,911) |
Beginning of the period (in shares) at Mar. 31, 2024 | 28,600,152 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (11,124) | (11,124) | ||||
Change in accumulated other comprehensive income (loss), net of tax | (34,220) | (18,247) | (15,976) | 3 | ||
Common stock issued, net of shares withheld for employee taxes (in shares) | 285,901 | |||||
Stock-based compensation | 2,158 | $ 2,158 | ||||
Redeemable preferred 9% dividend and accretion | (10,353) | (10,353) | ||||
End of period at Jun. 30, 2024 | $ (176,446) | $ 118,082 | $ (98,750) | $ 46,577 | $ 1,033 | $ (243,388) |
End of the period (in shares) at Jun. 30, 2024 | 28,886,053 | 28,886,053 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Deficit) (Parenthetical) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Preferred stock, dividend rate, percentage | 9% | 9% | 9% | 9% |
Nature of Operations and Presen
Nature of Operations and Presentation of Condensed Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Nature of Operations and Presentation of Condensed Consolidated Financial Statements | NOTE 1 – NATURE OF OPERATIONS AND PRESENTATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Nature of Operations The principal business of Superior Industries International, Inc. (referred herein as the “Company,” “Superior,” or “we” and “our”) is the design and manufacture of aluminum wheels for sale to original equipment manufacturers (“OEMs”) in North America and Europe and to the aftermarket in Europe. Our aluminum wheels are primarily sold to OEMs for factory installation on new light vehicles. We also sell aluminum wheels to the European aftermarket under the brands ATS, RIAL, ALUTEC and ANZIO. North America and Europe represent the primary markets for our products, but we have a diversified global customer base consisting of North American, European and Asian OEMs. Presentation of Condensed Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements include all adjustments, of a normal and recurring nature, which management believes are necessary for fair presentation of the financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes thereto filed with the SEC in our 2023 Annual Report on Form 10-K. These unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions are eliminated in consolidation. Interim financial reporting standards require us to make estimates that are based on assumptions regarding the outcome of future events and circumstances not known at that time. Inevitably, some assumptions will not materialize, unanticipated events or circumstances may occur which vary from those estimates and such variations may significantly affect our future results. Additionally, interim results may not be indicative of our results for future interim periods or our annual results. Accounting Standards Issued But Not Yet Adopted Accounting Standards Update (ASU) 2023-07, “Segment Reporting.” In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, ” which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss to assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ( “ CODM ” ), clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure requirements for entities with a single reportable segment, and requiring other new disclosures. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The Company is currently evaluating the effects of adopting this guidance. Accounting Standards Update (ASU) 2023-09, “Income Taxes (Topic 740).” In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures, ” which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures. The amendments in this ASU require a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. A public entity is also required to provide a qualitative description of the states and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions. The amendments are effective prospectively for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. The Company is currently evaluating the effects of adopting this guidance. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 2 – REVENUE The Company disaggregates revenue from contracts with customers into our reportable segments, North America and Europe. Revenues by segment for the three and six months ended June 30, 2024 and June 30, 2023 are summarized in Note 5, “Business Segments.” The opening and closing balances of the Company’s customer receivables and current and long-term contract liabilities balances are as follows: June 30, December 31, Change Customer receivables $ 65,267 $ 41,879 $ 23,388 Contract liabilities—current 5,632 2,982 2,650 Contract liabilities—noncurrent 6,648 8,530 ( 1,882 ) |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 3 - DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to market risks such as fluctuations in foreign currency exchange rates, interest rates, and aluminum and other commodity prices. Derivatives may be used to offset some of the effects of these market risks on the expected future cash flows and on certain existing assets and liabilities. In certain cases, the Company may or may not designate certain derivative instruments as hedges for accounting purposes. The Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations and the prohibitive economic cost of hedging particular exposures. Market Risks Foreign Currency Exchange Rate Risk The Company has manufacturing locations primarily in Mexico and Poland, and sells its products globally. As a result, the Company’ s financial results could be significantly affected by foreign currency exchange rates. To help mitigate gross margin and cash flow fluctuations due to changes in foreign currency exchange rates, certain subsidiaries in Mexico and Poland, whose functional currency is the U.S. dollar or the Euro, hedge a portion of their forecasted foreign currency costs denominated in the Mexican Peso and Polish Zloty. The Company may hedge portions of its forecasted foreign currency exposure up to 48 months. Interest Rate Risk The Company has borrowings under its Senior Secured Credit Facilities that are at variable rates of interest and expose it to interest rate risk. If interest rates increase, debt service obligations on the variable rate indebtedness will increase even though the amount borrowed remains the same. The Company has entered into interest rate swaps exchanging floating for fixed rate interest payments in order to reduce its interest rate volatility. Commodity Price Risk The principal raw material used in manufacturing aluminum wheels is aluminum alloys. While wheel prices under OEM customer contracts are adjusted for fluctuations in the cost of this material, the prices of our aftermarket wheels are generally fixed months in advance of the spring and winter sales seasons. Accordingly, the Company hedges a portion of its aftermarket aluminum purchases to offset the effect of fluctuating aluminum cost on its margins. In addition, the manufacture of aluminum wheels is energy intensive, so the Company fixes a portion of its natural gas and electricity purchases with derivatives or contractual arrangements with energy suppliers. Derivative Financial Instruments The Company has derivatives designated as cash flow hedges that hedge the exposure to variability in expected future cash flows. These derivatives are accounted for as either assets or liabilities and adjusted to fair value each period with the resulting gain or loss recognized in other comprehensive income or loss ("OCI" or "OCL") until the underlying hedged transaction is recognized in earnings. Once the hedged transaction is recognized in earnings for foreign exchange and commodity derivatives, the gain or loss initially recorded in accumulated OCI or OCL is recognized in cost of sales, while gains or losses on interest rate swaps are recognized in interest expense, net. Derivatives that have not been designated as hedges are adjusted to fair value each period and any gain or loss is recognized in other income (expense), net . The following tables display the fair value of derivatives by financial statement line item as of June 30, 2024 and December 31, 2023: June 30, 2024 Current Derivative Financial Instruments Derivative Financial Instruments Accrued Other Derivatives designated as hedging instruments: Foreign exchange contracts $ 26,422 $ 27,418 $ 382 $ 10 Commodity contracts 533 46 2,037 1,085 Interest rate contracts 3,306 811 — — Derivatives not designated as hedging instruments: Foreign exchange contracts — — 1,966 — Total derivative financial instruments $ 30,261 $ 28,275 $ 4,385 $ 1,095 December 31, 2023 Current Derivative Financial Instruments Derivative Financial Instruments Accrued Other Derivatives designated as hedging instruments: Foreign exchange contracts $ 33,075 $ 39,902 $ 440 $ 596 Commodity contracts 549 115 2,394 729 Interest rate contracts 3,162 454 — — Derivatives not designated as hedging instruments: Foreign exchange contracts 1,512 — 677 — Total derivative financial instruments $ 38,298 $ 40,471 $ 3,511 $ 1,325 The following table summarizes the notional amount of the Company's derivative financial instruments as of June 30, 2024 and December 31, 2023: Notional Amount June 30, December 31, Derivatives designated as hedging instruments: Foreign exchange contracts $ 377,035 $ 432,529 Commodity contracts 16,601 27,013 Interest rate contracts 200,000 200,000 Derivatives not designated as hedging instruments: Foreign exchange contracts 49,079 34,764 Total derivative financial instruments $ 642,715 $ 694,306 Notional amounts are presented on a net basis. The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties and, therefore, are not a direct measure of the exposure to the financial risks described above. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency exchange rates or commodity prices. The following table summarizes the gain or loss recognized in OCI or OCL, the amounts reclassified from accumulated OCI or OCL into earnings, and the amounts recognized directly into earnings for the three and six months ended June 30, 2024 and June 30, 2023: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Derivatives designated as hedging instruments: Amount of gain or (loss) recognized in OCI on derivatives, net of tax $ ( 15,976 ) $ 30,344 $ ( 13,282 ) $ 48,464 Amount of pre-tax gain or (loss) reclassified from accumulated OCI into: Cost of sales 8,785 4,946 16,815 7,978 Interest expense, net 1,140 1,204 2,287 2,100 Derivatives not designated as hedging instruments: Amount of pre-tax gain or (loss) recognized in other income (expense), net ( 2,049 ) 1,398 ( 1,824 ) 3,993 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 4 – FAIR VALUE MEASUREMENTS Assets and Fair Values Measured at Fair Value on a Recurring Basis Asset and Liability Instruments The carrying values for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values due to the short period of time until maturity. Derivative Financial Instruments Our derivatives are over-the-counter customized derivative instruments and are not exchange traded. We estimate the fair value of these instruments using the income valuation approach. Under this approach, we project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates, foreign exchange rates, commodity prices and the contractual terms of the derivative instruments. The discount rate used is the relevant benchmark rate (e.g., the secured overnight financing rate, “ SOFR ” ) plus an adjustment for counterparty risk. The following tables categorize items measured at fair value as of June 30, 2024 and December 31, 2023: Fair Value Hierarchy June 30, December 31, Derivative assets Level 2 $ 58,536 $ 78,769 Derivative liabilities Level 2 $ 5,480 $ 4,836 Financial Instruments Not Carried at Fair Value Debt Instruments The carrying values of the Company’s debt instruments vary from their fair values. The fair values were determined by reference to transacted prices and quotes for these instruments (Level 2). The estimated fair value, as well as the carrying value, of the Company’s debt instruments are shown below: June 30, December 31, Estimated fair value $ 625,799 $ 627,008 Carrying value 607,725 615,954 |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 5 - BUSINESS SEGMENTS North America and Europe comprise the Company’s reportable segments. Segment results for the three and six months ended June 30, 2024 and June 30, 2023 were as follows: Net Sales Depreciation and Amortization Income (Loss) from Operations Three Months Ended June 30, June 30, June 30, June 30, June 30, June 30, North America $ 203,203 $ 208,205 $ 10,334 $ 9,378 $ 13,195 $ 21,504 Europe 115,764 164,398 11,554 14,089 ( 2,951 ) 2,513 $ 318,967 $ 372,603 $ 21,888 $ 23,467 $ 10,244 $ 24,017 Net Sales Depreciation and Amortization Income (Loss) from Operations Six Months Ended June 30, June 30, June 30, June 30, June 30, June 30, North America $ 396,711 $ 419,823 $ 20,677 $ 18,425 $ 21,277 $ 43,219 Europe 238,532 333,746 23,157 27,883 ( 10,719 ) ( 4,066 ) $ 635,243 $ 753,569 $ 43,834 $ 46,308 $ 10,558 $ 39,153 Total Assets June 30, December 31, North America $ 583,438 $ 625,612 Europe 370,364 404,959 $ 953,802 $ 1,030,571 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 6 - INVENTORIES June 30, December 31, Raw materials $ 42,460 $ 44,539 Work in process 42,160 25,289 Finished goods 62,742 74,781 Inventories, net $ 147,362 $ 144,609 Service wheel and supplies inventory included in other noncurrent assets in the condensed consolidated balance sheets totaled $ 11.3 million and $ 11.7 million at June 30, 2024 and December 31, 2023. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 7 – INTANGIBLE ASSETS Amortization for the three and six months ended June 30, 2024 and June 30, 2023 were as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Amortization expense $ 4,842 $ 4,900 $ 9,726 $ 9,724 Annual Anticipated Future Amortization Amount Six Remaining Months of 2024 $ 9,639 2025 9,472 2026 2,477 2027 1,032 Total anticipated future amortization $ 22,620 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 8 – DEBT A summary of the Company ’s long-term obligations is as follows: June 30, 2024 December 31, 2023 Principal Carrying Value Principal Carrying Value Senior Secured Credit Facilities: Revolving Credit Facility $ — $ — $ — $ — Term Loan Facility 394,000 375,400 396,000 375,920 Senior Notes: 6.00 % Senior Notes 232,526 231,543 239,601 238,126 Other debt: European CapEx loans — — 784 784 Finance leases 782 782 1,124 1,124 607,725 615,954 Less: Current portion of long-term debt ( 236,032 ) ( 5,322 ) Long-term debt $ 371,693 $ 610,632 As of June 30, 2024, the Notes (as defined below) due June 15, 2025 have been included in short-term debt in the condensed consolidated balance sheet. If the Company has not repaid, refinanced or otherwise extended the maturity date of the Notes beyond the maturity date of its term loan facility by March 17, 2025, its term loan facility and revolving credit facility would become due on March 17, 2025. Based on the Company’s current estimates and forecasts, it believes the expected cash flows generated from its operations, along with existing liquidity, including undrawn capacity under its revolving credit facility, will be sufficient to satisfy its obligations as they become due over the next twelve months beyond the issuance date of these condensed consolidated financial statements, including repayment of the Notes prior to March 17, 2025. The Company initiated discussions with various lenders to refinance its existing debt, including the Notes, and is in advanced discussions with certain lenders for the funding necessary to retire the Notes. There can be no assurances that these discussions will result in any transaction or, if a transaction is undertaken, any assurances as to its terms or timing. Senior Secured Credit Facilities On December 15, 2022, the Company entered into a $ 400.0 million term loan facility (the “Term Loan Facility”) pursuant to a credit agreement (the “Term Loan Credit Agreement”) with Oaktree Fund Administration L.L.C., in its capacity as the administrative agent, JPMorgan Chase Bank, N.A., in its capacity as collateral agent, and other lenders party thereto. Concurrent with the execution of the Term Loan Facility, the Company entered into a $ 60.0 million revolving credit facility (the “Revolving Credit Facility” and, together with the Term Loan Facility, the “Senior Secured Credit Facilities” or “SSCF”) pursuant to a credit agreement (the “Revolving Credit Agreement” and, together with the Term Loan Credit Agreement, the “Credit Agreements”) with JPMorgan Chase Bank, N.A., in its capacity as administrative agent, collateral agent and issuing bank, and other lenders and issuing banks thereunder. The Revolving Credit Facility and the Term Loan Facility are scheduled to mature on December 15, 2027 and December 15, 2028 . However, in the event the Company has not repaid, refinanced or otherwise extended the maturity date of the Notes (as defined below) beyond the maturity date of the Term Loan Facility by the date 91 days prior to June 15, 2025, the Term Loan Facility and Revolving Credit Facility would mature 91 days prior to June 15, 2025. Similarly, in the event the Company has not redeemed, refinanced or otherwise extended the redemption date of the redeemable preferred stock beyond the maturity date of the Term Loan Facility by the date 91 days prior to September 14, 2025, the Term Loan Facility and Revolving Credit Facility would mature 91 days prior to September 14, 2025. The Term Loan Facility requires quarterly principal payments of $ 1.0 million. Additional principal payments may be due with respect to asset sales, debt issuances and as a percentage of cash flow in excess of a specified threshold. Amounts borrowed under the Term Loan Facility may be voluntarily prepaid subject to a prepayment premium of 2.00 percent and 1.00 percent of the loan principal during second and third years. After the third anniversary of the closing date, there is no prepayment premium. Interest Rates As of June 30, 2024, the interest rate on borrowings under the Term Loan Facility was SOFR plus 8.0 percent and will remain at SOFR plus 8.0 percent for each period for which the Company ’ s Secured Net Leverage Ratio (as defined in the Term Loan Credit Agreement) is greater than 1.0 to 1.0 . Further information on the interest rates of the Senior Secured Credit Facilities is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Guarantees and Collateral Security Further information on the guarantees and collateral security of the Senior Secured Credit Facilities is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Covenants As of June 30, 2024, the Company was in compliance with all covenants under the Credit Agreements. Further information on the covenants of the Senior Secured Credit Facilities is included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Available Unused Commitments under the Revolving Credit Facility As of June 30, 2024, the Company had no outstanding borrowings under the Revolving Credit Facility, had outstanding letters of credit of $ 8.4 million and had available unused commitments under the Revolving Credit Facility of $ 51.6 million. Senior Notes On June 15, 2017, the Company issued € 250.0 million aggregate principal amount of 6.00 % Senior Notes due June 15, 2025 (the “Notes”). Interest on the Notes is payable semiannually, on June 15 and December 15. The Company may redeem the Notes, in whole or in part, at a redemption price of 100 percent, plus any accrued and unpaid interest to, but not including, the applicable redemption date. If we experience a change of control or sell certain assets, the Company may be required to offer to purchase the Notes from the holders. The Notes are senior unsecured obligations ranking equally in right of payment with all of its existing and future senior indebtedness and senior in right of payment to any subordinated indebtedness. The Notes are effectively subordinated in right of payment to the existing and future secured indebtedness of the Company, including the Senior Secured Credit Facilities, to the extent of the assets securing such indebtedness. Guarantee Further information on the guarantee of the Notes is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Covenants As of June 30, 2024, the Company was in compliance with all covenants under the indenture governing the Notes. Further information on the covenants of the Notes is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Debt maturities as of June 30, 2024, which are due in the next five years are as follows: Debt Maturities Amount Six remaining months of 2024 $ 2,490 2025 236,734 2026 4,076 2027 4,017 2028 379,991 Total debt liabilities $ 627,308 |
Supplier Finance Program
Supplier Finance Program | 6 Months Ended |
Jun. 30, 2024 | |
Supplier Finance Program [Abstract] | |
Supplier Finance Program | NOTE 9 - SUPPLIER FINANCE PROGRAM The Company receives extended payment terms for a portion of its purchases (90 days rather than 60 days) with one of its principal aluminum suppliers in exchange for a nominal adjustment to the product pricing. The supplier factors receivables due from the Company with a financial institution. Obligations due to the factoring institution under this program as of June 30, 2024 and December 31, 2023 were $ 23.0 million and $ 18.0 million. |
Redeemable Shares
Redeemable Shares | 6 Months Ended |
Jun. 30, 2024 | |
Text Block [Abstract] | |
Redeemable Shares | NOTE 10 - REDEEMABLE SHARES Preferred Stock During the three months ended June 30, 2024, the preferred stock dividends were paid-in-kind, which increased the stated value of the preferred stock by $ 3.4 million. The preferred shares will continue to accrue dividends at 9.0 percent on the stated value ($ 153.4 million). The associated redemption premium on the increase in the stated value will be accreted from July 1, 2024 through September 14, 2025 using the interest method. The redemption value of the preferred stock will be the greater of (i) two times the stated value ($ 153.4 million) plus any accrued unpaid dividends, currently $ 306.7 million as of June 30, 2024 , or (ii) the product of the number of common shares into which the redeemable preferred stock could be converted ( 5.4 million shares currently) and the then current market price of the common stock. The redeemable preferred stock may be redeemed at the holder’s election on or after September 14, 2025 or upon the occurrence of a redemption event, provided the Company has cash legally available to pay such redemption. If the Company is unable to redeem the shares of preferred stock in full, any shares of preferred stock not redeemed would continue to receive an annual dividend of 9.0 percent on the stated value which would be payable quarterly. The Board of Directors would have to evaluate periodically the ability of the Company to make any redemption payments until the full redemption amount has been paid. As of June 30, 2024, there have been no changes in the preferred shareholder rights, including conversion and redemption rights from those described in our Annual Report on Form 10-K for the year ended December 31, 2023. Noncontrolling Redeemable Equity The Company has a noncontrolling interest that is currently redeemable. It is presented in the temporary equity section of the condensed consolidated balance sheets and is adjusted to its redemption value at the end of each reporting period. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 11 – EARNINGS PER SHARE Basic earnings per share is computed by dividing net income (loss), after deducting preferred dividends and accretion and European noncontrolling redeemable equity dividends, by the weighted average number of common shares outstanding. For purposes of calculating diluted earnings per share, the weighted average shares outstanding includes the dilutive effect of outstanding stock options and time and performance based restricted stock units under the treasury stock method. The redeemable preferred shares discussed in Note 10, “Redeemable Shares” (convertible into 5,446 thousand shares) are participating securities and have not been included in the diluted earnings per share because they would be anti-dilutive for the three and six months ended June 30, 2024 and June 30, 2023. In calculating basic and diluted earnings per share, a company with participating securities must allocate earnings to the participating securities with a corresponding reduction in the earnings attributable to common shares under the two-class method. Losses are only allocated to participating securities when the security holders have a contractual obligation to share in the losses of the Company with common stockholders. Because the redeemable preferred shareholders do not have a contractual obligation to share in the Company’s losses with common stockholders, the full amount of the Company’s losses for the three and six months ended June 30, 2024 and June 30, 2023 were attributed to the common shares. Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Dollars in thousands, except per share amounts) Basic Earnings (Loss) Per Share: Net income (loss) $ ( 11,124 ) $ ( 67 ) $ ( 43,873 ) $ ( 4,114 ) Less: Redeemable preferred stock dividends and accretion ( 10,353 ) ( 9,645 ) ( 20,519 ) ( 19,085 ) Less: Noncontrolling redeemable equity dividend — ( 11 ) ( 7 ) ( 21 ) Basic numerator $ ( 21,477 ) $ ( 9,723 ) $ ( 64,399 ) $ ( 23,220 ) Basic earnings (loss) per share $ ( 0.75 ) $ ( 0.35 ) $ ( 2.26 ) $ ( 0.84 ) Weighted average shares outstanding – Basic 28,732 28,035 28,493 27,669 Diluted Earnings (Loss) Per Share: Net income (loss) $ ( 11,124 ) $ ( 67 ) $ ( 43,873 ) $ ( 4,114 ) Less: Redeemable preferred stock dividends and accretion ( 10,353 ) ( 9,645 ) ( 20,519 ) ( 19,085 ) Less: Noncontrolling redeemable equity dividend — ( 11 ) ( 7 ) ( 21 ) Diluted numerator $ ( 21,477 ) $ ( 9,723 ) $ ( 64,399 ) $ ( 23,220 ) Diluted earnings (loss) per share $ ( 0.75 ) $ ( 0.35 ) $ ( 2.26 ) $ ( 0.84 ) Weighted average shares outstanding – Basic 28,732 28,035 28,493 27,669 Dilutive effect of common share equivalents — — — — Weighted average shares outstanding – Diluted 28,732 28,035 28,493 27,669 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 - INCOME TAXES The estimated annual effective tax rate is forecasted quarterly using actual historical information and forward-looking estimates and applied to year-to-date ordinary income. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances, settlements with taxing authorities and effects of changes in tax laws or rates, and changes due to tax restructuring are reported in the interim period in which they occur. The income tax provision for the three and six months ended June 30, 2024 was $ 6.4 million and $ 23.1 million on pre-tax losses of $ 4.7 million and $ 20.8 million, resulting in an effective income tax rate of ( 136.5 ) percent and ( 110.9 ) perce nt. The effective income tax rate for the three months ended June 30, 2024 differs from the statutory rate primarily due to valuation allowances and the mix of earnings among tax jurisdictions. The effective income tax rate for the six months ended June 30, 2024 differs from the statutory rate primarily due to valuation allowances, the reversal of an uncertain tax position, the mix of earnings among tax jurisdictions, and a deferred tax charge related to tax restructuring of $ 17.8 million. The income tax provision for the three and six months ended June 30, 2023 was $ 5.8 million and $ 9.1 million on pre-tax income of $ 5.7 million and $ 5.0 million, resulting in an effective income tax rate of 101.2 percent and 182.6 percent. The effective income tax rate for the three months ended June 30, 2023 differs from the statutory rate primarily due to valuation allowances and the mix of earnings among tax jurisdictions. The effective income tax rate for the six months ended June 30, 2023 differs from the statutory rate primarily due to valuation allowances, the reversal of an uncertain tax position and the mix of earnings among tax jurisdictions. The Company continuously evaluates the realizability of our net deferred tax assets. As of June 30, 2024, certain U.S. and substantially all our German deferred tax assets, net of deferred tax liabilities, were subject to valuation allowances. The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of 15.0 percent effective January 1, 2024. While the United States has not yet adopted the Pillar Two rules, various other governments around the world have enacted part of the legislation. As currently designed, Pillar Two ultimately applies to our worldwide operations. Currently, enacted Pillar Two legislation does not have a material effect on our consolidated financial statements. We will continue to assess U.S. and global legislative action related to Pillar Two for potential effects. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | NOTE 13 - LEASES The Company determines whether an arrangement is or contains a lease at the inception of the arrangement. Operating leases are included in other noncurrent assets, accrued expenses and other noncurrent liabilities in our condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, net, short-term debt and long-term debt (less current portion) in our condensed consolidated balance sheets. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Finance and operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. Since we generally do not have access to the interest rate implicit in the lease, the Company uses our incremental borrowing rate (for fully collateralized debt) at the inception of the lease in determining the present value of the lease payments. The implicit rate is, however, used where readily available. Lease expense under operating leases is recognized on a straight-line basis over the term of the lease. Certain of our leases contain both lease and nonlease components, which are accounted for separately. The Company has operating and finance leases for office facilities, a data center and certain equipment. The remaining terms of our leases range from ove r one year to five years . C ertain leases include options to extend the lease term for up to ten years , as well as options to terminate, both of which have been excluded from the term of the lease since exercise of these options is not reasonably certain. Lease expense and cash flow for the three and six months ended June 30, 2024 and June 30, 2023 are as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Lease Expense Finance lease expense: Amortization of right-of-use assets $ 129 $ 251 $ 263 $ 496 Interest on lease liabilities 5 15 11 31 Operating lease expense 807 738 1,634 1,361 Total lease expense $ 941 $ 1,004 $ 1,908 $ 1,888 Cash Flow Components Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from finance leases $ 5 $ 15 $ 11 $ 31 Operating cash outflows from operating leases 833 766 1,685 1,402 Financing cash outflows from finance leases 144 263 293 551 Right-of-use assets obtained in exchange for finance lease liabilities, 7 142 13 538 Right-of-use assets obtained in exchange for operating lease 24 651 39 651 Operating and finance lease assets and liabilities, average lease term, and average discount rate as of June 30, 2024 and December 31, 2023 are as follows: June 30, December 31, Balance Sheet Information Operating leases: Other noncurrent assets $ 8,461 $ 10,003 Accrued liabilities $ ( 2,877 ) $ ( 2,987 ) Other noncurrent liabilities ( 5,519 ) ( 7,000 ) Total operating lease liabilities $ ( 8,396 ) $ ( 9,987 ) Finance leases: Property, plant and equipment gross $ 2,314 $ 2,301 Accumulated depreciation ( 1,145 ) ( 882 ) Property, plant and equipment, net $ 1,169 $ 1,419 Current portion of long-term debt $ ( 490 ) $ ( 538 ) Long-term debt (less current portion) ( 292 ) ( 586 ) Total finance lease liabilities $ ( 782 ) $ ( 1,124 ) Lease Term and Discount Rates Weighted-average remaining lease term - finance leases (years) 1.7 2.0 Weighted-average remaining lease term - operating leases (years) 2.9 3.3 Weighted-average discount rate - finance leases 2.4 % 2.4 % Weighted-average discount rate - operating leases 5.0 % 5.0 % Future minimum payments under our leases as of June 30, 2024 are as follows: Amount Lease Maturities Finance Leases Operating Leases Six remaining months of 2024 $ 490 $ 1,735 2025 208 3,045 2026 76 2,900 2027 17 1,295 2028 8 - Total 799 8,975 Less: Imputed interest ( 17 ) ( 579 ) Total lease liabilities, net of interest $ 782 $ 8,396 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 14 - STOCK-BASED COMPENSATION Our 2018 Equity Incentive Plan (the “Plan”), as amended, authorizes us to issue up to 9.85 million shares of common stock, along with non-qualified stock options, stock appreciation rights, restricted stock units and performance restricted stock units to our officers, key employees, nonemployee directors and consultants. At June 30, 2024, there were 0.6 million shares available for future grants under this Plan. It is our policy to issue shares from authorized but not issued shares upon the exercise of stock options. Under the terms of the Plan, each year eligible participants are granted time value restricted stock units (“RSUs”), vesting ratably over a three-year period, and performance restricted stock units (“PSUs”) with three-year cliff vesting. Upon vesting, each restricted stock award is exchangeable for one share of the Company’s common stock, with accrued dividends. Unrecognized stock-based compensation expense related to nonvested awards of $ 8.6 million is expected to be recognized over a weighted average period of approximately 1.9 years as of June 30, 2024. Stock-based compensation expense is recognized in selling, general and administrative expenses in the condensed consolidated statement of income (loss). Total compensation expense is as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Stock compensation expense $ 2,367 $ 2,203 $ 4,087 $ 3,004 RSU and PSU activity for the six months ended June 30, 2024 is summarized in the following table: Equity Incentive Awards Restricted Weighted Performance Weighted Balance at January 1, 2024 1,001,634 $ 4.39 2,192,759 $ 5.24 Granted 621,524 3.26 762,584 3.82 Settled ( 574,185 ) 4.49 ( 605,150 ) 5.80 Balance at June 30, 2024 1,048,973 $ 3.66 2,350,193 $ 4.63 Awards estimated to vest in the future 1,048,973 $ 3.66 2,350,193 $ 4.63 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 15 – COMMITMENTS AND CONTINGENCIES Purchase Commitments When market conditions warrant, we may enter into purchase commitments to secure the supply of certain commodities used in the manufacture of our products, such as aluminum, electricity, natural gas and other raw materials. Prices under our aluminum contracts are based on a market index and regional premiums for processing, transportation and alloy components which are adjusted quarterly for purchases in the ensuing quarter. Certain of our purchase agreements include volume commitments, however any excess commitments are generally negotiated with suppliers and those which have occurred in the past have been carried over to future periods. Contingencies We are party to various legal and environmental proceedings incidental to our business. Certain claims, suits and complaints arising in the ordinary course of business have been filed or are pending against us. Based on facts now known, except as provided below, we believe all such matters are adequately provided for, covered by insurance, are without merit and/or involve such amounts that would not materially adversely affect our consolidated results of operations, cash flows or financial position. In March 2022, the German Federal Cartel Office initiated an investigation related to European light alloy wheel manufacturers, including Superior Industries Europe AG (a wholly owned subsidiary of the Company), on suspicion of conduct restricting competition. The Company is cooperating fully with the German Federal Cartel Office. In the event Superior Industries Europe AG is deemed to have violated the applicable statutes, the Company could be subject to a fine or civil proceedings. At this point, we are unable to predict the duration or the outcome of the investigation. The Company purchases electricity and natural gas requirements for its manufacturing operations in Poland from a single energy distributor. Superior and its energy distributor, as well as the parent company of the energy distributor, have filed various claims against one another. These claims generally request the court to determine whether Superior’s energy contracts with the energy distributor were valid during the period December 2021 through May 2022. In December 2021, the Company’s energy distributor informed the Company it would no longer supply energy, notwithstanding its contractual obligation to continue supply. Following a request from the Company, the court issued an injunction ordering the energy distributor to continue supplying energy and gas to the Company. In 2022, the Company obtained a final and binding judgment confirming that the original contracts with the energy distributor had not been effectively dissolved, and thus remained binding. In September of 2022, the energy distributor’s parent company filed a suit against the Company asserting that the Company’s energy contracts were no longer valid and asserting that the Company owed additional amounts for its purchases between December 2021 and May 2022 equal to the excess of market prices over prices set forth in the original energy contracts. In June 2023, the Company obtained a judgment dismissing the claim in its entirety. In August 2023, the energy distributor's parent company filed an appeal. B ased on recent developments at an appellate hearing, the Company has concluded that an adverse judgment is now probable of occurring. Accordingly, the Company has recognized a provision of $ 1.5 million which represents the low end of the estimated range of the potential loss. The remaining potential loss is immaterial. |
Receivables Factoring
Receivables Factoring | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Receivables Factoring | NOTE 16 – RECEIVABLES FACTORING The Company sells certain customer trade receivables on a non-recourse basis as a "true sale" under factoring arrangements with designated financial institutions and cash proceeds are included in cash provided by operating activities. The Company's ongoing involvement under the factoring arrangements is limited to processing of customer payments on the factored receivables. Factoring arrangements incorporate customary representations and warranties, including representations as to validity of amounts due, completeness of performance obligations and absence of commercial disputes. During the three months ended June 30, 2024 and June 30, 2023, the Company sold trade receivables totaling $ 135.8 million and $ 198.1 million and incurred factoring fees of $ 1.1 million and $ 1.0 million. During the six months ended June 30, 2024 and June 30, 2023, the Company sold trade receivables totaling $ 297.6 million and $ 423.4 million and incurred factoring fees of $ 2.3 million and $ 2.0 million. As of June 30, 2024 and December 31, 2023, receivables of $ 94.5 million and $ 92.4 million had been factored and had not yet been paid by customers to the respective financial institutions. The collective limit under our factoring arrangements was $ 141.0 million and $ 142.1 million as of June 30, 2024 and December 31, 2023. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | NOTE 17 – RESTRUCTURING The Company initiates restructuring activities to execute management’s strategy, such as gaining operational efficiencies and achieving net cost reductions. Restructuring charges primarily consist of employee severance costs. During the three months ended June 30, 2024, an additional restructuring charge was incurred of $ 1.0 million related to further restructuring of our European business. During the three and six months ended June 30, 2023, we initiated a program to reduce our global workforce to better align our cost structure with lower automotive industry production levels. As a result, we recognized restructuring charges of $ 2.5 million and $ 7.8 million for the three and six months ended June 30, 2023. The changes in the restructuring reserve balance for the three and six months ended June 30, 2024 and June 30, 2023 were as follows: 2024 2023 Balance at beginning of period $ ( 3,386 ) $ — Revision to previous estimates 933 ( 5,270 ) Cash payment 907 — Foreign exchange 77 — Balance at March 31 $ ( 1,469 ) $ ( 5,270 ) Provision ( 1,014 ) ( 2,537 ) Cash payment 45 — Foreign exchange 11 — Balance at end of period $ ( 2,427 ) $ ( 7,807 ) |
Receivable from SPG Bankruptcy
Receivable from SPG Bankruptcy Estate | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Receivable from SPG Bankruptcy Estate | NOTE 18 – RECEIVABLE FROM SPG BANKRUPTCY ESTATE On August 31, 2023, the Company’s owned subsidiary Superior Industries Production Germany GmbH (“SPG”) filed voluntary petitions for preliminary insolvency proceedings (i.e., equivalent to Chapter 11 under the U.S. Bankruptcy Code). Effective August 31, 2023, the Company no longer controls SPG and deconsolidated the subsidiary, therefore, it is no longer included in the Company’s condensed consolidated financial statements. As of June 30, 2024 and December 31, 2023, the Company’s receivable due from the SPG bankruptcy estate was $ 15.1 million and $ 15.3 million and the associated allowance was $ 12.0 million and $ 14.8 million. The resulting net receivable as of June 30, 2024 and December 31, 2023 was $ 3.1 million and $ 0.5 million which has been included in other noncurrent assets in the Company’s condensed consolidated balance sheet. |
Nature of Operations and Pres_2
Nature of Operations and Presentation of Condensed Consolidated Financial Statements (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations The principal business of Superior Industries International, Inc. (referred herein as the “Company,” “Superior,” or “we” and “our”) is the design and manufacture of aluminum wheels for sale to original equipment manufacturers (“OEMs”) in North America and Europe and to the aftermarket in Europe. Our aluminum wheels are primarily sold to OEMs for factory installation on new light vehicles. We also sell aluminum wheels to the European aftermarket under the brands ATS, RIAL, ALUTEC and ANZIO. North America and Europe represent the primary markets for our products, but we have a diversified global customer base consisting of North American, European and Asian OEMs. |
Presentation of Condensed Consolidated Financial Statements | Presentation of Condensed Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements include all adjustments, of a normal and recurring nature, which management believes are necessary for fair presentation of the financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes thereto filed with the SEC in our 2023 Annual Report on Form 10-K. These unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions are eliminated in consolidation. Interim financial reporting standards require us to make estimates that are based on assumptions regarding the outcome of future events and circumstances not known at that time. Inevitably, some assumptions will not materialize, unanticipated events or circumstances may occur which vary from those estimates and such variations may significantly affect our future results. Additionally, interim results may not be indicative of our results for future interim periods or our annual results. |
Accounting Standards Issued But Not Yet Adopted | Accounting Standards Issued But Not Yet Adopted Accounting Standards Update (ASU) 2023-07, “Segment Reporting.” In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, ” which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss to assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ( “ CODM ” ), clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure requirements for entities with a single reportable segment, and requiring other new disclosures. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The Company is currently evaluating the effects of adopting this guidance. Accounting Standards Update (ASU) 2023-09, “Income Taxes (Topic 740).” In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures, ” which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures. The amendments in this ASU require a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. A public entity is also required to provide a qualitative description of the states and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions. The amendments are effective prospectively for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. The Company is currently evaluating the effects of adopting this guidance. |
Fair Value Measurements | The carrying values for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values due to the short period of time until maturity. |
Derivatives, Methods of Accounting, Hedging Derivatives | The Company is exposed to market risks such as fluctuations in foreign currency exchange rates, interest rates, and aluminum and other commodity prices. Derivatives may be used to offset some of the effects of these market risks on the expected future cash flows and on certain existing assets and liabilities. In certain cases, the Company may or may not designate certain derivative instruments as hedges for accounting purposes. The Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations and the prohibitive economic cost of hedging particular exposures. Market Risks Foreign Currency Exchange Rate Risk The Company has manufacturing locations primarily in Mexico and Poland, and sells its products globally. As a result, the Company’ s financial results could be significantly affected by foreign currency exchange rates. To help mitigate gross margin and cash flow fluctuations due to changes in foreign currency exchange rates, certain subsidiaries in Mexico and Poland, whose functional currency is the U.S. dollar or the Euro, hedge a portion of their forecasted foreign currency costs denominated in the Mexican Peso and Polish Zloty. The Company may hedge portions of its forecasted foreign currency exposure up to 48 months. Interest Rate Risk The Company has borrowings under its Senior Secured Credit Facilities that are at variable rates of interest and expose it to interest rate risk. If interest rates increase, debt service obligations on the variable rate indebtedness will increase even though the amount borrowed remains the same. The Company has entered into interest rate swaps exchanging floating for fixed rate interest payments in order to reduce its interest rate volatility. Commodity Price Risk The principal raw material used in manufacturing aluminum wheels is aluminum alloys. While wheel prices under OEM customer contracts are adjusted for fluctuations in the cost of this material, the prices of our aftermarket wheels are generally fixed months in advance of the spring and winter sales seasons. Accordingly, the Company hedges a portion of its aftermarket aluminum purchases to offset the effect of fluctuating aluminum cost on its margins. In addition, the manufacture of aluminum wheels is energy intensive, so the Company fixes a portion of its natural gas and electricity purchases with derivatives or contractual arrangements with energy suppliers. Derivative Financial Instruments The Company has derivatives designated as cash flow hedges that hedge the exposure to variability in expected future cash flows. These derivatives are accounted for as either assets or liabilities and adjusted to fair value each period with the resulting gain or loss recognized in other comprehensive income or loss ("OCI" or "OCL") until the underlying hedged transaction is recognized in earnings. Once the hedged transaction is recognized in earnings for foreign exchange and commodity derivatives, the gain or loss initially recorded in accumulated OCI or OCL is recognized in cost of sales, while gains or losses on interest rate swaps are recognized in interest expense, net. Derivatives that have not been designated as hedges are adjusted to fair value each period and any gain or loss is recognized in other income (expense), net |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Opening and Closing Balances of Company's Customer Receivables and Current and Long-term Contract Liabilities | The opening and closing balances of the Company’s customer receivables and current and long-term contract liabilities balances are as follows: June 30, December 31, Change Customer receivables $ 65,267 $ 41,879 $ 23,388 Contract liabilities—current 5,632 2,982 2,650 Contract liabilities—noncurrent 6,648 8,530 ( 1,882 ) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Derivatives by Financial Statement Line Item | The following tables display the fair value of derivatives by financial statement line item as of June 30, 2024 and December 31, 2023: June 30, 2024 Current Derivative Financial Instruments Derivative Financial Instruments Accrued Other Derivatives designated as hedging instruments: Foreign exchange contracts $ 26,422 $ 27,418 $ 382 $ 10 Commodity contracts 533 46 2,037 1,085 Interest rate contracts 3,306 811 — — Derivatives not designated as hedging instruments: Foreign exchange contracts — — 1,966 — Total derivative financial instruments $ 30,261 $ 28,275 $ 4,385 $ 1,095 December 31, 2023 Current Derivative Financial Instruments Derivative Financial Instruments Accrued Other Derivatives designated as hedging instruments: Foreign exchange contracts $ 33,075 $ 39,902 $ 440 $ 596 Commodity contracts 549 115 2,394 729 Interest rate contracts 3,162 454 — — Derivatives not designated as hedging instruments: Foreign exchange contracts 1,512 — 677 — Total derivative financial instruments $ 38,298 $ 40,471 $ 3,511 $ 1,325 |
Summary of Notional Amount of Derivative Financial Instruments | The following table summarizes the notional amount of the Company's derivative financial instruments as of June 30, 2024 and December 31, 2023: Notional Amount June 30, December 31, Derivatives designated as hedging instruments: Foreign exchange contracts $ 377,035 $ 432,529 Commodity contracts 16,601 27,013 Interest rate contracts 200,000 200,000 Derivatives not designated as hedging instruments: Foreign exchange contracts 49,079 34,764 Total derivative financial instruments $ 642,715 $ 694,306 |
Summary of Gain or Loss Recognized in OCI or OCL | The following table summarizes the gain or loss recognized in OCI or OCL, the amounts reclassified from accumulated OCI or OCL into earnings, and the amounts recognized directly into earnings for the three and six months ended June 30, 2024 and June 30, 2023: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Derivatives designated as hedging instruments: Amount of gain or (loss) recognized in OCI on derivatives, net of tax $ ( 15,976 ) $ 30,344 $ ( 13,282 ) $ 48,464 Amount of pre-tax gain or (loss) reclassified from accumulated OCI into: Cost of sales 8,785 4,946 16,815 7,978 Interest expense, net 1,140 1,204 2,287 2,100 Derivatives not designated as hedging instruments: Amount of pre-tax gain or (loss) recognized in other income (expense), net ( 2,049 ) 1,398 ( 1,824 ) 3,993 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Items Measured at Fair Value | The following tables categorize items measured at fair value as of June 30, 2024 and December 31, 2023: Fair Value Hierarchy June 30, December 31, Derivative assets Level 2 $ 58,536 $ 78,769 Derivative liabilities Level 2 $ 5,480 $ 4,836 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The estimated fair value, as well as the carrying value, of the Company’s debt instruments are shown below: June 30, December 31, Estimated fair value $ 625,799 $ 627,008 Carrying value 607,725 615,954 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Summary of Net Sales and Results of Operations and Total Assets by Reportable Segment | Net Sales Depreciation and Amortization Income (Loss) from Operations Three Months Ended June 30, June 30, June 30, June 30, June 30, June 30, North America $ 203,203 $ 208,205 $ 10,334 $ 9,378 $ 13,195 $ 21,504 Europe 115,764 164,398 11,554 14,089 ( 2,951 ) 2,513 $ 318,967 $ 372,603 $ 21,888 $ 23,467 $ 10,244 $ 24,017 Net Sales Depreciation and Amortization Income (Loss) from Operations Six Months Ended June 30, June 30, June 30, June 30, June 30, June 30, North America $ 396,711 $ 419,823 $ 20,677 $ 18,425 $ 21,277 $ 43,219 Europe 238,532 333,746 23,157 27,883 ( 10,719 ) ( 4,066 ) $ 635,243 $ 753,569 $ 43,834 $ 46,308 $ 10,558 $ 39,153 Total Assets June 30, December 31, North America $ 583,438 $ 625,612 Europe 370,364 404,959 $ 953,802 $ 1,030,571 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | June 30, December 31, Raw materials $ 42,460 $ 44,539 Work in process 42,160 25,289 Finished goods 62,742 74,781 Inventories, net $ 147,362 $ 144,609 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Amortization Expense and Annual Anticipated Future Amortization | Amortization for the three and six months ended June 30, 2024 and June 30, 2023 were as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Amortization expense $ 4,842 $ 4,900 $ 9,726 $ 9,724 Annual Anticipated Future Amortization Amount Six Remaining Months of 2024 $ 9,639 2025 9,472 2026 2,477 2027 1,032 Total anticipated future amortization $ 22,620 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Obligations | A summary of the Company ’s long-term obligations is as follows: June 30, 2024 December 31, 2023 Principal Carrying Value Principal Carrying Value Senior Secured Credit Facilities: Revolving Credit Facility $ — $ — $ — $ — Term Loan Facility 394,000 375,400 396,000 375,920 Senior Notes: 6.00 % Senior Notes 232,526 231,543 239,601 238,126 Other debt: European CapEx loans — — 784 784 Finance leases 782 782 1,124 1,124 607,725 615,954 Less: Current portion of long-term debt ( 236,032 ) ( 5,322 ) Long-term debt $ 371,693 $ 610,632 |
Schedule of Debt Maturities | Debt maturities as of June 30, 2024, which are due in the next five years are as follows: Debt Maturities Amount Six remaining months of 2024 $ 2,490 2025 236,734 2026 4,076 2027 4,017 2028 379,991 Total debt liabilities $ 627,308 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Dollars in thousands, except per share amounts) Basic Earnings (Loss) Per Share: Net income (loss) $ ( 11,124 ) $ ( 67 ) $ ( 43,873 ) $ ( 4,114 ) Less: Redeemable preferred stock dividends and accretion ( 10,353 ) ( 9,645 ) ( 20,519 ) ( 19,085 ) Less: Noncontrolling redeemable equity dividend — ( 11 ) ( 7 ) ( 21 ) Basic numerator $ ( 21,477 ) $ ( 9,723 ) $ ( 64,399 ) $ ( 23,220 ) Basic earnings (loss) per share $ ( 0.75 ) $ ( 0.35 ) $ ( 2.26 ) $ ( 0.84 ) Weighted average shares outstanding – Basic 28,732 28,035 28,493 27,669 Diluted Earnings (Loss) Per Share: Net income (loss) $ ( 11,124 ) $ ( 67 ) $ ( 43,873 ) $ ( 4,114 ) Less: Redeemable preferred stock dividends and accretion ( 10,353 ) ( 9,645 ) ( 20,519 ) ( 19,085 ) Less: Noncontrolling redeemable equity dividend — ( 11 ) ( 7 ) ( 21 ) Diluted numerator $ ( 21,477 ) $ ( 9,723 ) $ ( 64,399 ) $ ( 23,220 ) Diluted earnings (loss) per share $ ( 0.75 ) $ ( 0.35 ) $ ( 2.26 ) $ ( 0.84 ) Weighted average shares outstanding – Basic 28,732 28,035 28,493 27,669 Dilutive effect of common share equivalents — — — — Weighted average shares outstanding – Diluted 28,732 28,035 28,493 27,669 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Lease Expense, Cash Flow, Operating and Finance Lease Assets and Liabilities, Average Lease Term and Average Discount Rate | Lease expense and cash flow for the three and six months ended June 30, 2024 and June 30, 2023 are as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Lease Expense Finance lease expense: Amortization of right-of-use assets $ 129 $ 251 $ 263 $ 496 Interest on lease liabilities 5 15 11 31 Operating lease expense 807 738 1,634 1,361 Total lease expense $ 941 $ 1,004 $ 1,908 $ 1,888 Cash Flow Components Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from finance leases $ 5 $ 15 $ 11 $ 31 Operating cash outflows from operating leases 833 766 1,685 1,402 Financing cash outflows from finance leases 144 263 293 551 Right-of-use assets obtained in exchange for finance lease liabilities, 7 142 13 538 Right-of-use assets obtained in exchange for operating lease 24 651 39 651 Operating and finance lease assets and liabilities, average lease term, and average discount rate as of June 30, 2024 and December 31, 2023 are as follows: June 30, December 31, Balance Sheet Information Operating leases: Other noncurrent assets $ 8,461 $ 10,003 Accrued liabilities $ ( 2,877 ) $ ( 2,987 ) Other noncurrent liabilities ( 5,519 ) ( 7,000 ) Total operating lease liabilities $ ( 8,396 ) $ ( 9,987 ) Finance leases: Property, plant and equipment gross $ 2,314 $ 2,301 Accumulated depreciation ( 1,145 ) ( 882 ) Property, plant and equipment, net $ 1,169 $ 1,419 Current portion of long-term debt $ ( 490 ) $ ( 538 ) Long-term debt (less current portion) ( 292 ) ( 586 ) Total finance lease liabilities $ ( 782 ) $ ( 1,124 ) Lease Term and Discount Rates Weighted-average remaining lease term - finance leases (years) 1.7 2.0 Weighted-average remaining lease term - operating leases (years) 2.9 3.3 Weighted-average discount rate - finance leases 2.4 % 2.4 % Weighted-average discount rate - operating leases 5.0 % 5.0 % |
Schedule of Future Minimum Rental Payments Under Finance and Operating Leases | Future minimum payments under our leases as of June 30, 2024 are as follows: Amount Lease Maturities Finance Leases Operating Leases Six remaining months of 2024 $ 490 $ 1,735 2025 208 3,045 2026 76 2,900 2027 17 1,295 2028 8 - Total 799 8,975 Less: Imputed interest ( 17 ) ( 579 ) Total lease liabilities, net of interest $ 782 $ 8,396 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Summary of Changes in Restructuring Reserve Balance | The changes in the restructuring reserve balance for the three and six months ended June 30, 2024 and June 30, 2023 were as follows: 2024 2023 Balance at beginning of period $ ( 3,386 ) $ — Revision to previous estimates 933 ( 5,270 ) Cash payment 907 — Foreign exchange 77 — Balance at March 31 $ ( 1,469 ) $ ( 5,270 ) Provision ( 1,014 ) ( 2,537 ) Cash payment 45 — Foreign exchange 11 — Balance at end of period $ ( 2,427 ) $ ( 7,807 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Total compensation Expense | Stock-based compensation expense is recognized in selling, general and administrative expenses in the condensed consolidated statement of income (loss). Total compensation expense is as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Stock compensation expense $ 2,367 $ 2,203 $ 4,087 $ 3,004 |
Summary of RSU and PSU Activity | RSU and PSU activity for the six months ended June 30, 2024 is summarized in the following table: Equity Incentive Awards Restricted Weighted Performance Weighted Balance at January 1, 2024 1,001,634 $ 4.39 2,192,759 $ 5.24 Granted 621,524 3.26 762,584 3.82 Settled ( 574,185 ) 4.49 ( 605,150 ) 5.80 Balance at June 30, 2024 1,048,973 $ 3.66 2,350,193 $ 4.63 Awards estimated to vest in the future 1,048,973 $ 3.66 2,350,193 $ 4.63 |
Revenue - Summary of Opening an
Revenue - Summary of Opening and Closing Balances of Company's Customer Receivables and Current and Long-term Contract Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Contract With Customer Asset And Liability [Line Items] | ||
Customer receivables | $ 65,267 | $ 41,879 |
Contract liabilities—current | 5,632 | 2,982 |
Contract liabilities-noncurrent | 6,648 | $ 8,530 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||
Contract With Customer Asset And Liability [Line Items] | ||
Customer receivables | 23,388 | |
Contract liabilities—current | 2,650 | |
Contract liabilities-noncurrent | $ (1,882) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative instruments objectives | The Company is exposed to market risks such as fluctuations in foreign currency exchange rates, interest rates, and aluminum and other commodity prices. Derivatives may be used to offset some of the effects of these market risks on the expected future cash flows and on certain existing assets and liabilities. |
Maximum length of time, foreign currency cash flow hedge | 48 months |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Fair Value of Derivatives by Financial Statement Line Item (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current Derivative Financial Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 30,261 | $ 38,298 |
Derivative Financial Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 28,275 | 40,471 |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 4,385 | 3,511 |
Other Non-current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 1,095 | 1,325 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Current Derivative Financial Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 26,422 | 33,075 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Derivative Financial Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 27,418 | 39,902 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 382 | 440 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 10 | 596 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Current Derivative Financial Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 1,512 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 1,966 | 677 |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Current Derivative Financial Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 533 | 549 |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Derivative Financial Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 46 | 115 |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 2,037 | 2,394 |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 1,085 | 729 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Current Derivative Financial Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 3,306 | 3,162 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Derivative Financial Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 811 | $ 454 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Notional Amount of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 642,715 | $ 694,306 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 377,035 | 432,529 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 16,601 | 27,013 |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 200,000 | 200,000 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 49,079 | $ 34,764 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Gain or Loss Recognized in OCI or OCL (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in OCI on derivatives, net of tax | $ (15,976) | $ 30,344 | $ (13,282) | $ 48,464 |
Amount of pre-tax gain or (loss) reclassified from accumulated OCI into: | ||||
Cost of sales | 287,347 | 331,570 | 582,477 | 677,958 |
Interest expense, net | (15,823) | (15,690) | (31,701) | (31,388) |
Amount of pre-tax gain or (loss) recognized in other income (expense), net | 875 | (2,600) | 338 | (2,787) |
Designated as Hedging Instrument [Member] | Derivative [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in OCI on derivatives, net of tax | (15,976) | 30,344 | (13,282) | 48,464 |
Amount of pre-tax gain or (loss) reclassified from accumulated OCI into: | ||||
Cost of sales | 8,785 | 4,946 | 16,815 | 7,978 |
Interest expense, net | 1,140 | 1,204 | 2,287 | 2,100 |
Not Designated as Hedging Instrument [Member] | Derivative [Member] | ||||
Amount of pre-tax gain or (loss) reclassified from accumulated OCI into: | ||||
Amount of pre-tax gain or (loss) recognized in other income (expense), net | $ (2,049) | $ 1,398 | $ (1,824) | $ 3,993 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Detail) - Recurring [Member] - Level 2 [Member] - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Derivative assets | $ 58,536 | $ 78,769 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Assets, Current | Assets, Current |
Liabilities | ||
Derivative liabilities | $ 5,480 | $ 4,836 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities, Current | Liabilities, Current |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Instrument Detail [Abstract] | ||
Estimated fair value | $ 625,799 | $ 627,008 |
Aggregate carrying value | $ 607,725 | $ 615,954 |
Business Segments - Summary of
Business Segments - Summary of Net Sales and Results of Operations and Total Assets by Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net Sales | $ 318,967 | $ 372,603 | $ 635,243 | $ 753,569 | |
Depreciation and amortization | 21,888 | 23,467 | 43,834 | 46,308 | |
Income (Loss) from Operations | 10,244 | 24,017 | 10,558 | 39,153 | |
Total assets | 953,802 | 953,802 | $ 1,030,571 | ||
North America [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net Sales | 203,203 | 208,205 | 396,711 | 419,823 | |
Depreciation and amortization | 10,334 | 9,378 | 20,677 | 18,425 | |
Income (Loss) from Operations | 13,195 | 21,504 | 21,277 | 43,219 | |
Total assets | 583,438 | 583,438 | 625,612 | ||
Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net Sales | 115,764 | 164,398 | 238,532 | 333,746 | |
Depreciation and amortization | 11,554 | 14,089 | 23,157 | 27,883 | |
Income (Loss) from Operations | (2,951) | $ 2,513 | (10,719) | $ (4,066) | |
Total assets | $ 370,364 | $ 370,364 | $ 404,959 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 42,460 | $ 44,539 |
Work in process | 42,160 | 25,289 |
Finished goods | 62,742 | 74,781 |
Inventories, net | $ 147,362 | $ 144,609 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Inventory, non-current | $ 11.3 | $ 11.7 |
Intangible Assets - Summary of
Intangible Assets - Summary of Amortization Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 4,842 | $ 4,900 | $ 9,726 | $ 9,724 |
Intangible Assets - Summary o_2
Intangible Assets - Summary of Annual Anticipated Future Amortization (Detail) $ in Thousands | Jun. 30, 2024 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Six Remaining Months of 2024 | $ 9,639 |
2025 | 9,472 |
2026 | 2,477 |
2027 | 1,032 |
Total anticipated future amortization | $ 22,620 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 366,451 | $ 398,599 |
Debt - Summary of Long-Term Obl
Debt - Summary of Long-Term Obligations (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Principal | $ 627,308 | |
Carrying Value | 607,725 | $ 615,954 |
Less: Current portion | (236,032) | (5,322) |
Long-term debt | 371,693 | 610,632 |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 394,000 | 396,000 |
Carrying Value | 375,400 | 375,920 |
Senior Notes [Member] | 6.00% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 232,526 | 239,601 |
Carrying Value | 231,543 | 238,126 |
European CapEx Loans [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 784 | |
Carrying Value | 784 | |
Finance Leases [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 782 | 1,124 |
Carrying Value | $ 782 | $ 1,124 |
Debt - Summary of Long-Term O_2
Debt - Summary of Long-Term Obligations (Parenthetical) (Detail) | Jun. 30, 2024 | Dec. 31, 2023 |
6.00% Senior Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate stated, percentage | 6% | 6% |
Debt - Additional Information (
Debt - Additional Information (Detail) | 6 Months Ended | |||
Dec. 15, 2022 USD ($) | Jun. 15, 2017 EUR (€) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 627,308,000 | |||
Long-term debt, term | 5 years | |||
Term loan facility balance | $ 607,725,000 | $ 615,954,000 | ||
Senior Notes, 6.00%, due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Jun. 15, 2025 | |||
Debt instrument maturity date description | If the Company has not repaid, refinanced or otherwise extended the maturity date of the Notes beyond the maturity date of its term loan facility by March 17, 2025, its term loan facility and revolving credit facility would become due on March 17, 2025. | |||
Senior Notes, 6.00%, due 2025 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | € | € 250,000,000 | |||
Debt instrument, interest rate stated, percentage | 6% | |||
Senior Secured Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity date description | However, in the event the Company has not repaid, refinanced or otherwise extended the maturity date of the Notes (as defined below) beyond the maturity date of the Term Loan Facility by the date 91 days prior to June 15, 2025, the Term Loan Facility and Revolving Credit Facility would mature 91 days prior to June 15, 2025. Similarly, in the event the Company has not redeemed, refinanced or otherwise extended the redemption date of the redeemable preferred stock beyond the maturity date of the Term Loan Facility by the date 91 days prior to September 14, 2025, | |||
Prepayment premium during second year | 2% | |||
Prepayment premium during third year | 1% | |||
Senior Secured Term Loan Facility [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of term loan facility | $ 400,000,000 | |||
Line of credit facility maturity date | Dec. 15, 2028 | |||
Principal payment amount | $ 1,000,000 | |||
Amount outstanding | $ 8,400,000 | |||
Senior Secured Term Loan Facility [Member] | SOFR [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 8% | |||
Debt Instrument Redemption Period Two [Member] | Senior Notes, 6.00%, due 2025 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption percentage | 100% | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured net leverage ratio | 1% | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured net leverage ratio | 1% | |||
Revolving Credit Facility [Member] | Senior Secured Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of term loan facility | $ 60,000,000 | |||
Line of credit facility maturity date | Dec. 15, 2027 | |||
Outstanding borrowings | $ 0 | |||
Revolving Credit Facility [Member] | Senior Secured Term Loan Facility [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of availability | $ 51,600,000 |
Debt - Schedule of Debt Maturit
Debt - Schedule of Debt Maturities (Detail) $ in Thousands | Jun. 30, 2024 USD ($) |
Maturities of Long-Term Debt [Abstract] | |
Six remaining months of 2024 | $ 2,490 |
2025 | 236,734 |
2026 | 4,076 |
2027 | 4,017 |
2028 | 379,991 |
Carrying Value | $ 627,308 |
Supplier Finance Program - Addi
Supplier Finance Program - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Supplier Finance Program [Abstract] | ||
Extended payment terms of purchases of suppliers | The Company receives extended payment terms for a portion of its purchases (90 days rather than 60 days) with one of its principal aluminum suppliers in exchange for a nominal adjustment to the product pricing. | |
Supplier finance program | $ 23 | $ 18 |
Redeemable Shares - Additional
Redeemable Shares - Additional Information (Detail) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Temporary Equity [Line Items] | |||||
Redeemable preferred stock | $ 265,386,000 | $ 265,386,000 | $ 248,222,000 | ||
Preferred stock percentage | 9% | 9% | 9% | 9% | |
Increase in stated value of preferred stock | $ 3,400,000 | ||||
Preferred stock redemption date | Sep. 14, 2025 | ||||
Common stock, shares issued upon conversion of preferred stock | 5,446 | 5,446 | |||
Minimum [Member] | |||||
Temporary Equity [Line Items] | |||||
Date of dividend payment in kind | Jul. 01, 2024 | ||||
Maximum [Member] | |||||
Temporary Equity [Line Items] | |||||
Preferred stock redemption date | Sep. 14, 2025 | ||||
Convertible Preferred Stock Redemption Period Two [Member] | |||||
Temporary Equity [Line Items] | |||||
Convertible preferred stock redemption value description | two times the stated value ($153.4 million) plus any accrued unpaid dividends, currently $306.7 million as of June 30, 2024 | ||||
Convertible preferred stock, face value | $ 153,400,000 | $ 153,400,000 | |||
Convertible preferred stock, redemption value | $ 306,700,000 | $ 306,700,000 | |||
Common stock, shares issued upon conversion of preferred stock | 5,400 | 5,400 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) shares in Thousands | Jun. 30, 2024 shares |
Earnings Per Share [Abstract] | |
Common stock, shares issued upon conversion of preferred stock | 5,446 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic Earnings (Loss) Per Share: | ||||
Net income (loss) | $ (11,124) | $ (67) | $ (43,873) | $ (4,114) |
Less: Redeemable preferred stock dividends and accretion | (10,353) | (9,645) | (20,519) | (19,085) |
Less: Noncontrolling redeemable equity dividend | (11) | (7) | (21) | |
Basic numerator | $ (21,477) | $ (9,723) | $ (64,399) | $ (23,220) |
Basic earnings (loss) per share | $ (0.75) | $ (0.35) | $ (2.26) | $ (0.84) |
Weighted average shares outstanding – Basic | 28,732 | 28,035 | 28,493 | 27,669 |
Diluted Earnings (Loss) Per Share: | ||||
Net income (loss) | $ (11,124) | $ (67) | $ (43,873) | $ (4,114) |
Less: Redeemable preferred stock dividends and accretion | (10,353) | (9,645) | (20,519) | (19,085) |
Less: Noncontrolling redeemable equity dividend | (11) | (7) | (21) | |
Diluted numerator | $ (21,477) | $ (9,723) | $ (64,399) | $ (23,220) |
Diluted earnings (loss) per share | $ (0.75) | $ (0.35) | $ (2.26) | $ (0.84) |
Weighted average shares outstanding – Basic | 28,732 | 28,035 | 28,493 | 27,669 |
Weighted average shares outstanding – Diluted | 28,732 | 28,035 | 28,493 | 27,669 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 01, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 6,420 | $ 5,794 | $ 23,068 | $ 9,092 | |
Pre-tax (Losses) Income | $ (4,704) | $ 5,727 | $ (20,805) | $ 4,978 | |
Effective income tax rates | (136.50%) | 101.20% | (110.90%) | 182.60% | |
Deferred tax charge related to tax restructuring | $ 17,800 | $ 17,800 | |||
New global minimum tax rate | 15% |
Leases - Additional Information
Leases - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2024 | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, option to extend | Certain leases include options to extend the lease term for up to ten years |
Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 1 year |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 5 years |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense, Cash Flow, Operating and Finance Lease Assets and Liabilities, Average Lease Term and Average Discount Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Finance lease expense: | |||||
Amortization of right-of-use assets | $ 129 | $ 251 | $ 263 | $ 496 | |
Interest on lease liabilities | 5 | 15 | 11 | 31 | |
Operating lease expense | 807 | 738 | 1,634 | 1,361 | |
Total lease expense | 941 | 1,004 | 1,908 | 1,888 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash outflows from finance leases | 5 | 15 | 11 | 31 | |
Operating cash outflows from operating leases | 833 | 766 | 1,685 | 1,402 | |
Financing cash outflows from finance leases | 144 | 263 | 293 | 551 | |
Right-of-use assets obtained in exchange for finance lease liabilities, net of terminations and disposals | 7 | 142 | 13 | 538 | |
Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations and disposals | 24 | $ 651 | 39 | $ 651 | |
Operating leases: | |||||
Other noncurrent assets | $ 8,461 | $ 8,461 | $ 10,003 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets | Other non-current assets | ||
Accrued liabilities | $ (2,877) | $ (2,877) | $ (2,987) | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses | Accrued expenses | Accrued expenses | ||
Other noncurrent liabilities | $ (5,519) | $ (5,519) | $ (7,000) | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities | Other non-current liabilities | ||
Total operating lease liabilities | $ (8,396) | $ (8,396) | $ (9,987) | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | ||
Property, plant and equipment gross | $ 2,314 | $ 2,314 | $ 2,301 | ||
Accumulated depreciation | (1,145) | (1,145) | (882) | ||
Property, plant and equipment, net | $ 1,169 | $ 1,169 | $ 1,419 | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets | Other non-current assets | ||
Current portion of long-term debt | $ (490) | $ (490) | $ (538) | ||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses | Accrued expenses | Accrued expenses | ||
Long-term debt (less current portion) | $ (292) | $ (292) | $ (586) | ||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities | Other non-current liabilities | ||
Total finance lease liabilities | $ (782) | $ (782) | $ (1,124) | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | ||
Weighted-average remaining lease term - finance leases (years) | 1 year 8 months 12 days | 1 year 8 months 12 days | 2 years | ||
Weighted-average remaining lease term - operating leases (years) | 2 years 10 months 24 days | 2 years 10 months 24 days | 3 years 3 months 18 days | ||
Weighted-average discount rate - finance leases | 2.40% | 2.40% | 2.40% | ||
Weighted-average discount rate - operating leases | 5% | 5% | 5% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments For Finance and Operating Leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Finance Leases, Six remaining months of 2024 | $ 490 | |
Finance Leases, 2025 | 208 | |
Finance Leases, 2026 | 76 | |
Finance Leases, 2027 | 17 | |
Finance Leases, 2028 | 8 | |
Finance Leases, Total | 799 | |
Finance Leases, Less: Imputed interest | (17) | |
Finance Leases, Total lease liabilities, net of interest | 782 | $ 1,124 |
Operating Leases, Six remaining months of 2024 | 1,735 | |
Operating Leases, 2025 | 3,045 | |
Operating Leases, 2026 | 2,900 | |
Operating Leases, 2027 | 1,295 | |
Operating Leases, Total | 8,975 | |
Operating Leases, Less: Imputed interest | (579) | |
Operating Leases, Total lease liabilities, net of interest | $ 8,396 | $ 9,987 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorizes issuance of common stock | 9,850,000 | ||||
Number of shares available for grant | 600,000 | 600,000 | |||
Stock-based compensation expense | $ 2,367 | $ 2,203 | $ 4,087 | $ 3,004 | |
Amount of unrecognized stock-based compensation expense | $ 8,600 | $ 8,600 | |||
Weighted average period for recognition | 1 year 10 months 24 days | ||||
Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Performance Shares Unit [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Total compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 2,367 | $ 2,203 | $ 4,087 | $ 3,004 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of RSU and PSU Activity (Detail) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Restricted Stock Units [Member] | |
Number of Awards | |
Number of Awards, Beginning balance (in shares) | shares | 1,001,634 |
Granted (in shares) | shares | 621,524 |
Settled (in shares) | shares | (574,185) |
Number of Awards, Ending balance (in shares) | shares | 1,048,973 |
Number of awards, Awards estimated to vest in the future (in shares) | shares | 1,048,973 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ / shares | $ 4.39 |
Granted (in dollars per share) | $ / shares | 3.26 |
Settled (in dollars per share) | $ / shares | 4.49 |
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | $ / shares | 3.66 |
Weighted Average Grant Date Fair Value, Awards estimated to vest in the future (in dollar per share) | $ / shares | $ 3.66 |
Performance Shares Unit [Member] | |
Number of Awards | |
Number of Awards, Beginning balance (in shares) | shares | 2,192,759 |
Granted (in shares) | shares | 762,584 |
Settled (in shares) | shares | (605,150) |
Number of Awards, Ending balance (in shares) | shares | 2,350,193 |
Number of awards, Awards estimated to vest in the future (in shares) | shares | 2,350,193 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ / shares | $ 5.24 |
Granted (in dollars per share) | $ / shares | 3.82 |
Settled (in dollars per share) | $ / shares | 5.8 |
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | $ / shares | 4.63 |
Weighted Average Grant Date Fair Value, Awards estimated to vest in the future (in dollar per share) | $ / shares | $ 4.63 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Jun. 30, 2024 USD ($) |
Loss Contingencies [Line Items] | |
Estimate of potential loss | $ 1.5 |
Receivables Factoring - Additio
Receivables Factoring - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Accounts Receivable [Line Items] | |||||
Trade receivables | $ 135,800,000 | $ 198,100,000 | $ 297,600,000 | $ 423,400,000 | |
Collective limit under factoring arrangements | 141,000,000 | 141,000,000 | $ 142,100,000 | ||
Factored receivables yet not collected | 94,500,000 | 94,500,000 | $ 92,400,000 | ||
Other (Expense) Income, Net [Member] | |||||
Accounts Receivable [Line Items] | |||||
Factoring fees | $ 1,100,000 | $ 1,000,000 | $ 2,300,000 | $ 2,000,000 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |||||
Restructuring charge | $ 1,000 | $ 2,500 | $ 7,800 | ||
Revision to previous estimates | $ 933 | $ (5,270) |
Restructuring - Summary of Chan
Restructuring - Summary of Changes in Restructuring Reserve Balance (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | ||||
Beginning Balance | $ (1,469) | $ (3,386) | $ (5,270) | |
Revision to previous estimates | 933 | $ (5,270) | ||
Provision | (1,014) | (2,537) | ||
Cash payment | 45 | 907 | ||
Foreign exchange | 11 | 77 | ||
Ending Balance | $ (2,427) | $ (1,469) | $ (7,807) | $ (5,270) |
Receivable from SPG Bankruptc_2
Receivable from SPG Bankruptcy Estate - Additional Information (Details) - SPG Bankruptcy Estate [Member] - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Noncontrolling Interest [Line Items] | ||
Receivables from subsidiary | $ 15.1 | $ 15.3 |
Allowance for receivables | 12 | 14.8 |
Other Non-current Assets [Member] | ||
Noncontrolling Interest [Line Items] | ||
Receivables from subsidiary | $ 3.1 | $ 0.5 |