Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 15, 2015 | |
Entity Information | ||
Entity Registrant Name | Tennant Company | |
Entity Central Index Key | 97,134 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,249,135 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Sales | $ 215,404 | $ 219,084 | $ 401,144 | $ 403,063 |
Cost of Sales | 120,371 | 123,821 | 228,030 | 230,883 |
Gross Profit | 95,033 | 95,263 | 173,114 | 172,180 |
Operating Expense: | ||||
Research and Development Expense | 8,404 | 7,651 | 16,114 | 15,132 |
Selling and Administrative Expense | 64,042 | 64,471 | 126,159 | 124,670 |
Total Operating Expense | 72,446 | 72,122 | 142,273 | 139,802 |
Profit from Operations | 22,587 | 23,141 | 30,841 | 32,378 |
Other Income (Expense): | ||||
Interest Income | 53 | 95 | 103 | 170 |
Interest Expense | (419) | (419) | (796) | (905) |
Net Foreign Currency Transaction (Losses) Gains | (225) | 328 | (668) | 120 |
Other Expense, Net | (185) | (89) | (237) | (120) |
Total Other Expense, Net | (776) | (85) | (1,598) | (735) |
Profit Before Income Taxes | 21,811 | 23,056 | 29,243 | 31,643 |
Income Tax Expense | 6,994 | 7,533 | 9,400 | 10,325 |
Net Earnings | $ 14,817 | $ 15,523 | $ 19,843 | $ 21,318 |
Net Earnings per Share: | ||||
Basic | $ 0.81 | $ 0.85 | $ 1.09 | $ 1.17 |
Diluted | $ 0.79 | $ 0.83 | $ 1.06 | $ 1.14 |
Weighted Average Shares Outstanding: | ||||
Basic | 18,197,431 | 18,167,054 | 18,240,027 | 18,242,240 |
Diluted | 18,672,040 | 18,675,607 | 18,724,859 | 18,776,369 |
Cash Dividend Declared per Common Share | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.38 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Earnings | $ 14,817 | $ 15,523 | $ 19,843 | $ 21,318 |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation adjustments | 1,945 | 814 | (6,196) | 1,851 |
Pension and retiree medical benefits | 166 | 47 | 438 | 92 |
Income Taxes: | ||||
Foreign currency translation adjustments | 0 | (1) | (1) | 13 |
Pension and retiree medical benefits | (62) | (17) | (163) | (34) |
Total Other Comprehensive Income (Loss), net of tax | 2,049 | 843 | (5,922) | 1,922 |
Comprehensive Income | $ 16,866 | $ 16,366 | $ 13,921 | $ 23,240 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and Cash Equivalents | $ 67,638 | $ 92,962 |
Restricted Cash | 349 | 352 |
Accounts Receivable, less Allowances of $4,366 and $3,936, respectively | 151,146 | 152,383 |
Inventories | 86,534 | 80,511 |
Prepaid Expenses | 11,357 | 9,552 |
Deferred Income Taxes, Current Portion | 9,747 | 9,738 |
Other Current Assets | 1,844 | 1,591 |
Total Current Assets | 328,615 | 347,089 |
Property, Plant and Equipment | 269,368 | 262,214 |
Accumulated Depreciation | (180,207) | (175,671) |
Property, Plant and Equipment, Net | 89,161 | 86,543 |
Deferred Income Taxes, Long-Term Portion | 7,625 | 8,165 |
Goodwill | 17,670 | 18,355 |
Intangible Assets, Net | 14,292 | 15,588 |
Other Assets | 12,379 | 11,192 |
Total Assets | 469,742 | 486,932 |
Current Liabilities: | ||
Short-Term Borrowings and Current Portion of Long-Term Debt | 3,435 | 3,566 |
Accounts Payable | 59,735 | 61,627 |
Employee Compensation and Benefits | 28,566 | 33,842 |
Income Taxes Payable | 3,579 | 1,087 |
Other Current Liabilities | 41,494 | 45,508 |
Total Current Liabilities | 136,809 | 145,630 |
Long-Term Liabilities: | ||
Long-Term Debt | 21,143 | 24,571 |
Employee-Related Benefits | 24,800 | 25,711 |
Deferred Income Taxes, Long-Term Portion | 4,343 | 5,989 |
Other Liabilities | 4,543 | 4,380 |
Total Long-Term Liabilities | 54,829 | 60,651 |
Total Liabilities | $ 191,638 | $ 206,281 |
Commitments and Contingencies (Note 10) | ||
Shareholders' Equity: | ||
Preferred Stock, $0.02 par value; 1,000,000 shares authorized; no shares issued or outstanding | $ 0 | $ 0 |
Common Stock, $0.375 par value; 60,000,000 shares authorized; 18,261,832 and 18,415,047 shares issued and outstanding, respectively | 6,848 | 6,906 |
Additional Paid-In Capital | 17,185 | 26,247 |
Retained Earnings | 298,586 | 286,091 |
Accumulated Other Comprehensive Loss | (44,515) | (38,593) |
Total Shareholders' Equity | 278,104 | 280,651 |
Total Liabilities and Shareholders' Equity | $ 469,742 | $ 486,932 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Allowance For Doubtful Receivables And Sales Returns | $ 4,366 | $ 3,936 |
Shareholders' Equity: | ||
Preferred Stock, par value per share | $ 0.02 | $ 0.02 |
Preferred Stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value per share | $ 0.375 | $ 0.375 |
Common Stock, shares authorized | 60,000,000 | 60,000,000 |
Common Stock, shares issued | 18,261,832 | 18,415,047 |
Common Stock, shares outstanding | 18,261,832 | 18,415,047 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net Earnings | $ 19,843 | $ 21,318 |
Adjustments to reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||
Depreciation | 8,155 | 8,818 |
Amortization | 1,036 | 1,223 |
Deferred Income Taxes | (1,754) | 3,964 |
Share-Based Compensation Expense | 4,889 | 3,756 |
Allowance for Doubtful Accounts and Returns | 1,246 | 776 |
Other, Net | (74) | 13 |
Changes in Operating Assets and Liabilities: | ||
Receivables | (1,717) | (18,649) |
Inventories | (11,002) | (13,208) |
Accounts Payable | (3,440) | 7,540 |
Employee Compensation and Benefits | (5,970) | (5,471) |
Other Current Liabilities | (3,174) | (2,238) |
Income Taxes | 1,668 | 2,819 |
Other Assets and Liabilities | (3,133) | (153) |
Net Cash Provided by Operating Activities | 6,573 | 10,508 |
INVESTING ACTIVITIES | ||
Purchases of Property, Plant and Equipment | (7,594) | (7,411) |
Proceeds from Disposals of Property, Plant and Equipment | 190 | 118 |
Increase in Restricted Cash | (18) | (12) |
Net Cash Used in Investing Activities | (7,422) | (7,305) |
FINANCING ACTIVITIES | ||
Payments of Short-Term Debt | 0 | (1,500) |
Payment of Long-Term Debt | (3,429) | (2,013) |
Purchases of Common Stock | (14,229) | (13,609) |
Proceeds from Issuance of Common Stock | 802 | 705 |
Excess Tax Benefit on Stock Plans | 669 | 1,329 |
Dividends Paid | (7,348) | (7,172) |
Net Cash Used in Financing Activities | (23,535) | (22,260) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (940) | 676 |
Net Decrease in Cash and Cash Equivalents | (25,324) | (18,381) |
Cash and Cash Equivalents at Beginning of Period | 92,962 | 80,984 |
Cash and Cash Equivalents at End of Period | 67,638 | 62,603 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Income Taxes | 8,702 | 1,645 |
Cash Paid for Interest | 718 | 775 |
Supplemental Non-cash Investing and Financing Activities: | ||
Capital Expenditures in Accounts Payable | $ 3,652 | $ 715 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the Securities and Exchange Commission (“SEC”) requirements for interim reporting, which allows certain footnotes and other financial information normally required by accounting principles generally accepted in the United States of America to be condensed or omitted. In our opinion, the Condensed Consolidated Financial Statements contain all adjustments (consisting of only normal recurring adjustments) necessary for the fair presentation of our financial position and results of operations. These statements should be read in conjunction with the Consolidated Financial Statements and Notes included in our annual report on Form 10-K for the year ended December 31, 2014 . The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. |
Management Action
Management Action | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Management Actions | Management Action During the fourth quarter of 2013, we implemented a restructuring action to right size the cost structure in our European operations, primarily as a result of the strategic decision to adjust our Direct versus Distribution selling efforts, to enhance our go-to-market approach which was designed to improve profitability and increase customer satisfaction. The pre-tax charge of $1,577 recognized in the fourth quarter of 2013 consisted primarily of severance and was included within Selling and Administrative Expense in the Condensed Consolidated Statements of Earnings. The charge impacted our Europe, Middle East, Africa (EMEA) operating segment, which has no goodwill balance. We do not expect additional costs will be incurred related to this restructuring action. A reconciliation of the beginning and ending liability balances is as follows: Severance and Related Costs Q4 2013 restructuring action $ 1,577 December 31, 2013 balance 1,577 2014 utilization: Cash payments (1,151 ) Foreign currency adjustments (65 ) Change in estimate 5 December 31, 2014 balance $ 366 2015 utilization: Cash payments (334 ) Foreign currency adjustments (32 ) June 30, 2015 balance $ — |
Divestiture
Divestiture | 6 Months Ended |
Jun. 30, 2015 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Divestiture | Divestiture On July 31, 2012 , we entered into a Share Purchase Agreement (“SPA”) with M&F Management and Financing GmbH (“M&F”) for the sale of ownership of our subsidiary, Tennant CEE GmbH, and our minority interest in a joint venture, OOO Tennant. In exchange for the ownership of these entities, we received €815 , or $1,014 , in cash, as of the date of sale and financed the remaining €5,351 , for a total purchase price of €6,166 . A total of €2,126 , or $2,826 , was received in equal quarterly payments during 2013 and the first anniversary payment of €1,075 , or $1,435 , was received on July 31, 2013. The second anniversary payment of €1,075 , or $1,418 , was received on July 31, 2014. The remaining €1,075 , or $1,198 , as of June 30, 2015 , will be received on the third anniversary date of the divestiture, which is July 31, 2015. As a result of this divestiture, we recorded a pre-tax gain of $784 in our Profit from Operations in the Condensed Consolidated Statements of Earnings for the year ended December 31, 2012. M&F is now a master distributor of Tennant products in the Central Eastern Europe, Middle East and Africa markets. In addition, as further discussed in Note 16, M&F was a related party to Tennant at the time of the transaction. We have identified M&F as a variable interest entity (“VIE”) and have performed a qualitative assessment that considered M&F's purpose and design, our involvement and the risks and benefits and determined that we are not the primary beneficiary of this VIE. The only financing we have provided to M&F was related to the SPA, as noted above, and there are no arrangements that would require us to provide significant financial support in the future. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are valued at the lower of cost or market. Inventories at June 30, 2015 and December 31, 2014 consisted of the following: June 30, December 31, Inventories carried at LIFO: Finished goods $ 44,468 $ 41,687 Raw materials, production parts and work-in-process 25,428 24,458 LIFO reserve (28,166 ) (28,166 ) Total LIFO inventories 41,730 37,979 Inventories carried at FIFO: Finished goods 31,645 29,851 Raw materials, production parts and work-in-process 13,159 12,681 Total FIFO inventories 44,804 42,532 Total inventories $ 86,534 $ 80,511 The LIFO reserve approximates the difference between LIFO carrying cost and FIFO. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying value of Goodwill for the six months ended June 30, 2015 were as follows: Goodwill Accumulated Impairment Losses Total Balance as of December 31, 2014 $ 64,858 $ (46,503 ) $ 18,355 Foreign currency fluctuations (920 ) 235 (685 ) Balance as of June 30, 2015 $ 63,938 $ (46,268 ) $ 17,670 The balances of acquired Intangible Assets, excluding Goodwill, as of June 30, 2015 and December 31, 2014 , were as follows: Customer Lists Trade Name Technology Total Balance as of June 30, 2015 Original cost $ 21,322 $ 3,960 $ 6,669 $ 31,951 Accumulated amortization (12,209 ) (2,048 ) (3,402 ) (17,659 ) Carrying value $ 9,113 $ 1,912 $ 3,267 $ 14,292 Weighted-average original life (in years) 15 14 13 Balance as of December 31, 2014 Original cost $ 21,946 $ 4,300 $ 6,915 $ 33,161 Accumulated amortization (12,099 ) (2,068 ) (3,406 ) (17,573 ) Carrying value $ 9,847 $ 2,232 $ 3,509 $ 15,588 Weighted-average original life (in years) 15 14 13 Amortization expense on Intangible Assets for the three and six months ended June 30, 2015 was $516 and $1,036 , respectively. Amortization expense on Intangible Assets for the three and six months ended June 30, 2014 was $612 and $1,223 , respectively. Estimated aggregate amortization expense based on the current carrying value of amortizable Intangible Assets for each of the five succeeding years and thereafter is as follows: Remaining 2015 $ 923 2016 1,705 2017 1,608 2018 1,602 2019 1,490 Thereafter 6,964 Total $ 14,292 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt outstanding is summarized as follows: June 30, December 31, Long-Term Debt: Credit facility borrowings 24,571 28,000 Collateralized borrowings 7 7 Capital lease obligations — 130 Total Debt 24,578 28,137 Less: Current Portion (3,435 ) (3,566 ) Long-Term Portion $ 21,143 $ 24,571 As of June 30, 2015 , we had committed lines of credit totaling $125,000 and uncommitted credit facilities totaling $87,229 . There were $10,000 in outstanding borrowings under our JPMorgan facility (described below) and $14,571 in outstanding borrowings under our Prudential facility (described below) as of June 30, 2015 . In addition, we had stand alone letters of credit of $2,769 outstanding and bank guarantees in the amount of $28 . Commitment fees on unused lines of credit for the six months ended June 30, 2015 were $163 . Our most restrictive covenants are part of our 2015 Amended and Restated Credit Agreement (as defined below), which are the same covenants in the Shelf Agreement (as defined below) with Prudential (as defined below), and require us to maintain an indebtedness to EBITDA ratio of not greater than 3.25 to 1 and to maintain an EBITDA to interest expense ratio of no less than 3.50 to 1 as of the end of each quarter. As of June 30, 2015 , our indebtedness to EBITDA ratio was 0.31 to 1 and our EBITDA to interest expense ratio was 54.38 to 1 . Credit Facilities JPMorgan Chase Bank, National Association On June 30, 2015, we entered into an Amended and Restated Credit Agreement (the "Amended Credit Agreement") that amends and restates the Credit Agreement dated May 5, 2011 that was with JP Morgan Chase Bank, N.A. ("JPMorgan"), as administrative agent and collateral agent, U.S. Bank National Association, as syndication agent, Wells Fargo Bank, National Association, and RBS Citizens, N.A., as co-documentation agents, and the Lenders (including JPMorgan) from time to time party thereto, as amended by Amendment No. 1 dated April 25, 2013 (the "Credit Agreement"). The Amended Credit Agreement principally provides the following changes to the Credit Agreement: • extends the maturity date to June 30, 2020 ; • removes RBS Citizens, N.A. as a co-documentation agent; • changes the covenant regarding the Company's indebtedness to EBITDA ratio at the end of each quarter to not greater than 3.25 to 1 ; • changes the covenant restricting the Company from paying dividends or repurchasing stock to allow no dividends or repurchases, if, after giving effect to such payments the Company’s leverage ratio is greater than 3.25 to 1 ; • changes the covenant restricting the Company from making acquisitions, if after giving pro-forma effect to such acquisition, the Company’s leverage ratio is greater than 3.00 to 1 , in such case limiting acquisitions to $25,000 ; • changes the fees for committed funds under the Credit Agreement to an annual rate ranging from 0.175% to 0.300% , depending on the Company’s leverage ratio; • changes the rate at which Eurocurrency borrowings under the Credit Agreement bear interest to a rate per annum equal to adjusted LIBOR plus an additional spread of 1.075% to 1.700% , depending on the Company’s leverage ratio; • changes the rate at which ABR borrowings bear interest to a rate per annum equal to the greatest of (a) the prime rate, (b) the federal funds rate plus 0.50% and (c) the adjusted LIBOR rate for a one month period plus 1.00% , plus, in any such case, an additional spread of 0.075% to 0.700% , depending on the Company’s leverage ratio; and • changes related to new or recently revised financial regulations and other compliance matters. The full terms and conditions are set forth in the Amended Credit Agreement, a copy of which is filed as Exhibit 10.1 to our Form 8-K dated June 30, 2015. The original terms regarding our Credit Agreement are described in Note 8 of our annual report on Form 10-K for the year ended December 31, 2014. As of June 30, 2015 , we were in compliance with all covenants under the Amended Credit Agreement. There were $10,000 in outstanding borrowings under this facility at June 30, 2015 , with a weighted average interest rate of 1.48% . Prudential Investment Management, Inc. On June 30, 2015, we entered into Amendment No. 3 to our Private Shelf Agreement (the "Amendment"), which amends the Private Shelf Agreement, dated as of July 29, 2009, by and among the Company, Prudential Investment Management, Inc. and Prudential affiliates from time to time party thereto, as amended by Amendment No. 1 dated May 5, 2011 and Amendment No. 2 dated July 24, 2012 (the "Shelf Agreement"). The principal changes effected by the Amendment are an extension of the Issuance Period for Shelf Notes under the Shelf Agreement and to make the same corresponding changes as those made to the Credit Agreement under the Amended Credit Agreement. The Issuance Period now expires on June 30, 2018 . The original terms regarding the Shelf Agreement are described in Note 8 of our annual report on Form 10-K for the year ended December 31, 2014. As of June 30, 2015 , there were $14,571 in outstanding borrowings under this facility, consisting of $6,000 of Series A notes issued in March 2011 with a fixed interest rate of 4.00% and a seven year term serially maturing from 2016 to 2018 and the $8,571 Series B notes issued in June 2011 with a fixed interest rate of 4.10% and a 10 year term serially maturing from 2016 to 2021 . The second payment of $2,000 on Series A notes was made during the first quarter of 2015. The first payment of $1,429 on Series B notes was made during the second quarter of 2015. We were in compliance with all covenants under the Amendment as of June 30, 2015 . The Royal Bank of Scotland Citizens, N.A. On September 14, 2010 , we entered into an overdraft facility with The Royal Bank of Scotland Citizens, N.A. in the amount of €2,000 , or approximately $2,229 . There was no balance outstanding on this facility as of June 30, 2015 . HSBC Bank (China) Company Limited, Shanghai Branch On June 20, 2012, we entered into a banking facility with the HSBC Bank (China) Company Limited, Shanghai Branch in the amount of $5,000 . As of June 30, 2015 , there were no outstanding borrowings on this facility. |
Warranty
Warranty | 6 Months Ended |
Jun. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
Warranty | Warranty We record a liability for warranty claims at the time of sale. The amount of the liability is based on the trend in the historical ratio of claims to sales, the historical length of time between the sale and resulting warranty claim, new product introductions and other factors. Warranty terms on machines generally range from one to four years. However, the majority of our claims are paid out within the first six to nine months following a sale. The majority of the liability for estimated warranty claims represents amounts to be paid out in the near term for qualified warranty issues, with immaterial amounts reserved to be paid for older equipment warranty issues. The changes in warranty reserves for the six months ended June 30, 2015 and 2014 were as follows: Six Months Ended June 30 2015 2014 Beginning balance $ 9,686 $ 9,663 Additions charged to expense 5,670 5,127 Foreign currency fluctuations (118 ) 33 Claims paid (5,209 ) (4,916 ) Ending balance $ 10,029 $ 9,907 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Our population of assets and liabilities subject to fair value measurements at June 30, 2015 is as follows: Fair Value Level 1 Level 2 Level 3 Assets: Foreign currency forward exchange contracts $ 80 $ — $ 80 $ — Total Assets $ 80 $ — $ 80 $ — Liabilities: Foreign currency forward exchange contracts $ 46 $ — $ 46 $ — Total Liabilities $ 46 $ — $ 46 $ — Our foreign currency forward exchange contracts are valued based on quoted forward foreign exchange prices at the reporting date. We use derivative instruments to manage exposures to foreign currency only in an attempt to limit underlying exposures from currency fluctuations and not for trading purposes. Gains or losses on forward foreign exchange contracts that hedge foreign currency-denominated assets and liabilities are recognized in Other Current Assets and Other Current Liabilities within the Condensed Consolidated Balance Sheets and are recognized in Other Income (Expense) under Net Foreign Currency Transaction (Losses) Gains within the Condensed Consolidated Statements of Earnings. As of June 30, 2015 , the fair value of such contracts outstanding was an asset of $80 and a liability of $46 . As of December 31, 2014 , the fair value of such contracts outstanding was an asset of $130 . There were no outstanding liabilities. At June 30, 2015 and December 31, 2014 , the notional amounts of foreign currency forward exchange contracts outstanding were $38,463 and $34,631 , respectively. We recognized a net gain of $1,753 and a net loss of $902 on such contracts during the first six months of 2015 and 2014 , respectively. The carrying amounts reported in the Condensed Consolidated Balance Sheets for Cash and Cash Equivalents, Accounts Receivable, Other Current Assets, Accounts Payable and Other Current Liabilities approximate fair value. The fair value of our Long-Term Debt approximates cost based on the borrowing rates currently available to us for bank loans with similar terms and remaining maturities. |
Retirement Benefit Plans
Retirement Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Our defined benefit pension plans and postretirement medical plan are described in Note 11 of our annual report on Form 10-K for the year ended December 31, 2014. We have contributed $76 and $204 during the second quarter of 2015 and $202 and $584 during the first six months of 2015 to our pension plans and to our postretirement medical plan, respectively. The components of the net periodic cost (benefit) for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended June 30 Pension Benefits Postretirement U.S. Plans Non-U.S. Plans Medical Benefits 2015 2014 2015 2014 2015 2014 Service cost $ 134 $ 123 $ 36 $ 38 $ 17 $ 32 Interest cost 423 488 125 134 87 118 Expected return on plan assets (655 ) (672 ) (146 ) (131 ) — — Amortization of net actuarial loss (gain) 192 30 — — (35 ) (11 ) Amortization of prior service cost (benefit) 10 10 65 47 — (1 ) Foreign currency — — 118 (2 ) — — Net periodic cost (benefit) $ 104 $ (21 ) $ 198 $ 86 $ 69 $ 138 Six Months Ended June 30 Pension Benefits Postretirement U.S. Plans Non-U.S. Plans Medical Benefits 2015 2014 2015 2014 2015 2014 Service cost 240 247 72 76 48 64 Interest cost 855 982 248 266 196 249 Expected return on plan assets (1,307 ) (1,342 ) (290 ) (260 ) — — Amortization of net actuarial loss 418 74 — — — — Amortization of prior service cost (benefit) 21 21 130 93 — (3 ) Foreign currency — — 35 16 — — Net periodic cost (benefit) 227 (18 ) 195 191 244 310 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Certain operating leases for vehicles contain residual value guarantee provisions, which would become due at the expiration of the operating lease agreement if the fair value of the leased vehicles is less than the guaranteed residual value. As of June 30, 2015 , of those leases that contain residual value guarantees, the aggregate residual value at lease expiration was $11,542 , of which we have guaranteed $9,351 . As of June 30, 2015 , we have recorded a liability for the estimated end of term loss related to this residual value guarantee of $184 for certain vehicles within our fleet. Our fleet also contains vehicles we estimate will settle at a gain. Gains on these vehicles will be recognized at the end of the lease term. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Components of Accumulated Other Comprehensive Loss, net of tax, within the Condensed Consolidated Balance Sheets, are as follows: June 30, 2015 December 31, 2014 Foreign currency translation adjustments $ (38,287 ) $ (32,090 ) Pension and retiree medical benefits (6,228 ) (6,503 ) Total Accumulated Other Comprehensive Loss $ (44,515 ) $ (38,593 ) The changes in components of Accumulated Other Comprehensive Loss, net of tax, are as follows: Foreign Currency Translation Adjustments Pension and Post Retirement Benefits Total December 31, 2014 $ (32,090 ) $ (6,503 ) $ (38,593 ) Other comprehensive loss before reclassifications (6,197 ) — (6,197 ) Amounts reclassified from Accumulated Other Comprehensive Loss — 275 275 Net current period other comprehensive (loss) income (6,197 ) 275 (5,922 ) June 30, 2015 $ (38,287 ) $ (6,228 ) $ (44,515 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We and our subsidiaries are subject to U.S. federal income tax as well as income tax of numerous state and foreign jurisdictions. We are generally no longer subject to U.S. federal tax examinations for taxable years before 2011 and, with limited exceptions, state and foreign income tax examinations for taxable years before 2007 . We recognize potential accrued interest and penalties related to unrecognized tax benefits in Income Tax Expense. In addition to the liability of $2,897 for unrecognized tax benefits as of June 30, 2015 , there was approximately $605 for accrued interest and penalties. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of June 30, 2015 was $2,555 . To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be revised and reflected as an adjustment of the Income Tax Expense. Unrecognized tax benefits were reduced by $131 during the first six months of 2015 for expiration of the statute of limitations in various jurisdictions. We are currently undergoing income tax examinations in various state and foreign jurisdictions covering 2007 to 2013 . Although the final outcome of these examinations cannot be currently determined, we believe that we have adequate reserves with respect to these examinations. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | Share-Based Compensation Our share-based compensation plans are described in Note 15 of our annual report on Form 10-K for the year ended December 31, 2014. During the three months ended June 30, 2015 and 2014 , we recognized total Share-Based Compensation Expense of $2,182 and $2,216 , respectively. During the six months ended June 30, 2015 and 2014 , we recognized total Share-Based Compensation Expense of $4,889 and $3,756 , respectively. The total excess tax benefit recognized for share-based compensation arrangements during the six months ended June 30, 2015 and 2014 was $669 and $1,329 , respectively. During the first six months of 2015 , we granted 23,048 restricted shares. The weighted average grant date fair value of each share awarded was $66.33 . Restricted share awards generally have a three year vesting period from the effective date of the grant. The total fair value of shares vested during the six months ended June 30, 2015 and 2014 was $833 and $827 , respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computations of Basic and Diluted Earnings per Share were as follows: Three Months Ended Six Months Ended June 30 June 30 2015 2014 2015 2014 Numerator: Net Earnings $ 14,817 $ 15,523 $ 19,843 $ 21,318 Denominator: Basic - Weighted Average Shares Outstanding 18,197,431 18,167,054 18,240,027 18,242,240 Effect of dilutive securities: Share-based compensation plans 474,609 508,553 484,832 534,129 Diluted - Weighted Average Shares Outstanding 18,672,040 18,675,607 18,724,859 18,776,369 Basic Earnings per Share $ 0.81 $ 0.85 $ 1.09 $ 1.17 Diluted Earnings per Share $ 0.79 $ 0.83 $ 1.06 $ 1.14 Excluded from the dilutive securities shown above were options to purchase 237,405 and 154,897 shares of Common Stock during the three months ended June 30, 2015 and 2014 , respectively. Excluded from the dilutive securities shown above were options to purchase 215,767 and 155,497 shares of Common Stock during the six months ended June 30, 2015 and 2014 , respectively. These exclusions were made as the effects were anti-dilutive. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We are organized into four operating segments: North America; Latin America; Europe, Middle East and Africa; and Asia Pacific. We combine our North America and Latin America operating segments into the “Americas” for reporting Net Sales by geographic area. In accordance with the objective and basic principles of the applicable accounting guidance, we aggregate our operating segments into one reportable segment that consists of the design, manufacture and sale of products used primarily in the maintenance of nonresidential surfaces. Net Sales attributed to each geographic area for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended Six Months Ended June 30 June 30 2015 2014 2015 2014 Americas $ 161,429 $ 153,698 $ 295,432 $ 276,087 Europe, Middle East and Africa 33,741 41,273 68,388 84,336 Asia Pacific 20,234 24,113 37,324 42,640 Total $ 215,404 $ 219,084 $ 401,144 $ 403,063 Net Sales are attributed to each geographic area based on the country from which the product was shipped and are net of intercompany sales. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On July 31, 2012, we entered into a share purchase agreement with M&F, as further discussed in Note 3. Two of the M&F shareholders are individuals who were employed by Tennant prior to the transaction date and were no longer employed by Tennant as of the transaction date. During the first quarter of 2008 , we acquired Sociedade Alfa Ltda. and entered into lease agreements for certain properties owned by or partially owned by the former owners of this entity. Some of these individuals are current employees of Tennant. Lease payments made under these lease agreements are not material to our financial position or results of operations. |
Management Action (Tables)
Management Action (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Reconciliation of beginning and ending liability balances | A reconciliation of the beginning and ending liability balances is as follows: Severance and Related Costs Q4 2013 restructuring action $ 1,577 December 31, 2013 balance 1,577 2014 utilization: Cash payments (1,151 ) Foreign currency adjustments (65 ) Change in estimate 5 December 31, 2014 balance $ 366 2015 utilization: Cash payments (334 ) Foreign currency adjustments (32 ) June 30, 2015 balance $ — |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories are valued at the lower of cost or market. Inventories at June 30, 2015 and December 31, 2014 consisted of the following: June 30, December 31, Inventories carried at LIFO: Finished goods $ 44,468 $ 41,687 Raw materials, production parts and work-in-process 25,428 24,458 LIFO reserve (28,166 ) (28,166 ) Total LIFO inventories 41,730 37,979 Inventories carried at FIFO: Finished goods 31,645 29,851 Raw materials, production parts and work-in-process 13,159 12,681 Total FIFO inventories 44,804 42,532 Total inventories $ 86,534 $ 80,511 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of Goodwill | The changes in the carrying value of Goodwill for the six months ended June 30, 2015 were as follows: Goodwill Accumulated Impairment Losses Total Balance as of December 31, 2014 $ 64,858 $ (46,503 ) $ 18,355 Foreign currency fluctuations (920 ) 235 (685 ) Balance as of June 30, 2015 $ 63,938 $ (46,268 ) $ 17,670 |
Acquired Intangible Assets excluding Goodwill | The balances of acquired Intangible Assets, excluding Goodwill, as of June 30, 2015 and December 31, 2014 , were as follows: Customer Lists Trade Name Technology Total Balance as of June 30, 2015 Original cost $ 21,322 $ 3,960 $ 6,669 $ 31,951 Accumulated amortization (12,209 ) (2,048 ) (3,402 ) (17,659 ) Carrying value $ 9,113 $ 1,912 $ 3,267 $ 14,292 Weighted-average original life (in years) 15 14 13 Balance as of December 31, 2014 Original cost $ 21,946 $ 4,300 $ 6,915 $ 33,161 Accumulated amortization (12,099 ) (2,068 ) (3,406 ) (17,573 ) Carrying value $ 9,847 $ 2,232 $ 3,509 $ 15,588 Weighted-average original life (in years) 15 14 13 |
Estimated aggregate amortization expense of Intangible Assets | Estimated aggregate amortization expense based on the current carrying value of amortizable Intangible Assets for each of the five succeeding years and thereafter is as follows: Remaining 2015 $ 923 2016 1,705 2017 1,608 2018 1,602 2019 1,490 Thereafter 6,964 Total $ 14,292 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of outstanding Short-Term and Long-Term Debt | Debt outstanding is summarized as follows: June 30, December 31, Long-Term Debt: Credit facility borrowings 24,571 28,000 Collateralized borrowings 7 7 Capital lease obligations — 130 Total Debt 24,578 28,137 Less: Current Portion (3,435 ) (3,566 ) Long-Term Portion $ 21,143 $ 24,571 |
Warranty (Tables)
Warranty (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
Changes in warranty reserve | The changes in warranty reserves for the six months ended June 30, 2015 and 2014 were as follows: Six Months Ended June 30 2015 2014 Beginning balance $ 9,686 $ 9,663 Additions charged to expense 5,670 5,127 Foreign currency fluctuations (118 ) 33 Claims paid (5,209 ) (4,916 ) Ending balance $ 10,029 $ 9,907 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements of assets and liabilities | Our population of assets and liabilities subject to fair value measurements at June 30, 2015 is as follows: Fair Value Level 1 Level 2 Level 3 Assets: Foreign currency forward exchange contracts $ 80 $ — $ 80 $ — Total Assets $ 80 $ — $ 80 $ — Liabilities: Foreign currency forward exchange contracts $ 46 $ — $ 46 $ — Total Liabilities $ 46 $ — $ 46 $ — Our foreign currency forward exchange contracts are valued based on quoted forward foreign exchange prices at the reporting date. |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Components of the net periodic cost (benefit) | The components of the net periodic cost (benefit) for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended June 30 Pension Benefits Postretirement U.S. Plans Non-U.S. Plans Medical Benefits 2015 2014 2015 2014 2015 2014 Service cost $ 134 $ 123 $ 36 $ 38 $ 17 $ 32 Interest cost 423 488 125 134 87 118 Expected return on plan assets (655 ) (672 ) (146 ) (131 ) — — Amortization of net actuarial loss (gain) 192 30 — — (35 ) (11 ) Amortization of prior service cost (benefit) 10 10 65 47 — (1 ) Foreign currency — — 118 (2 ) — — Net periodic cost (benefit) $ 104 $ (21 ) $ 198 $ 86 $ 69 $ 138 Six Months Ended June 30 Pension Benefits Postretirement U.S. Plans Non-U.S. Plans Medical Benefits 2015 2014 2015 2014 2015 2014 Service cost 240 247 72 76 48 64 Interest cost 855 982 248 266 196 249 Expected return on plan assets (1,307 ) (1,342 ) (290 ) (260 ) — — Amortization of net actuarial loss 418 74 — — — — Amortization of prior service cost (benefit) 21 21 130 93 — (3 ) Foreign currency — — 35 16 — — Net periodic cost (benefit) 227 (18 ) 195 191 244 310 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Components of Accumulated Other Comprehensive Loss, net of tax, within the Condensed Consolidated Balance Sheets | |
Components of Accumulated Other Comprehensive Loss, net of tax | Components of Accumulated Other Comprehensive Loss, net of tax, within the Condensed Consolidated Balance Sheets, are as follows: June 30, 2015 December 31, 2014 Foreign currency translation adjustments $ (38,287 ) $ (32,090 ) Pension and retiree medical benefits (6,228 ) (6,503 ) Total Accumulated Other Comprehensive Loss $ (44,515 ) $ (38,593 ) |
Changes in components of Accumulated Other Comprehensive Loss, net of tax | The changes in components of Accumulated Other Comprehensive Loss, net of tax, are as follows: Foreign Currency Translation Adjustments Pension and Post Retirement Benefits Total December 31, 2014 $ (32,090 ) $ (6,503 ) $ (38,593 ) Other comprehensive loss before reclassifications (6,197 ) — (6,197 ) Amounts reclassified from Accumulated Other Comprehensive Loss — 275 275 Net current period other comprehensive (loss) income (6,197 ) 275 (5,922 ) June 30, 2015 $ (38,287 ) $ (6,228 ) $ (44,515 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The computations of Basic and Diluted Earnings per Share were as follows: Three Months Ended Six Months Ended June 30 June 30 2015 2014 2015 2014 Numerator: Net Earnings $ 14,817 $ 15,523 $ 19,843 $ 21,318 Denominator: Basic - Weighted Average Shares Outstanding 18,197,431 18,167,054 18,240,027 18,242,240 Effect of dilutive securities: Share-based compensation plans 474,609 508,553 484,832 534,129 Diluted - Weighted Average Shares Outstanding 18,672,040 18,675,607 18,724,859 18,776,369 Basic Earnings per Share $ 0.81 $ 0.85 $ 1.09 $ 1.17 Diluted Earnings per Share $ 0.79 $ 0.83 $ 1.06 $ 1.14 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Net Sales by geographic area | Net Sales attributed to each geographic area for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended Six Months Ended June 30 June 30 2015 2014 2015 2014 Americas $ 161,429 $ 153,698 $ 295,432 $ 276,087 Europe, Middle East and Africa 33,741 41,273 68,388 84,336 Asia Pacific 20,234 24,113 37,324 42,640 Total $ 215,404 $ 219,084 $ 401,144 $ 403,063 |
Management Action (Details)
Management Action (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve beginning balance | $ 366 | $ 1,577 | |
Restructuring Charges | $ 1,577 | ||
Cash Payments | (334) | (1,151) | |
Foreign currency adjustments | (32) | (65) | |
Change in estimate | 5 | ||
Restructuring Reserve ending balance | $ 0 | $ 366 | $ 1,577 |
Divestiture (Details)
Divestiture (Details) € in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015EUR (€) | Dec. 31, 2013EUR (€) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Jun. 30, 2015USD ($) | Jul. 31, 2014EUR (€) | Jul. 31, 2014USD ($) | Jul. 31, 2013EUR (€) | Jul. 31, 2013USD ($) | Jul. 31, 2012EUR (€) | Jul. 31, 2012USD ($) | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |||||||||||
Date of divestiture | Jul. 31, 2012 | ||||||||||
Cash received as part of the selling price | € 815 | $ 1,014 | |||||||||
Amount financed as part of selling price | 5,351 | ||||||||||
Total selling price | € 6,166 | ||||||||||
Total amount of installment payments received quarterly in 2013 | € 2,126 | $ 2,826 | |||||||||
Total amount of first anniversary payment received | € 1,075 | $ 1,435 | |||||||||
Total amount of second anniversary payment received | € 1,075 | $ 1,418 | |||||||||
Remaining amount of payments remaining to be received on the third anniversary date | € 1,075 | $ 1,198 | |||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ | $ 784 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventories carried at LIFO: | ||
Finished goods | $ 44,468 | $ 41,687 |
Raw materials, production parts and work-in-process | 25,428 | 24,458 |
LIFO Reserve | (28,166) | (28,166) |
LIFO Inventory Amount | 41,730 | 37,979 |
Inventories carried at FIFO: | ||
Finished goods | 31,645 | 29,851 |
Raw materials, production parts and work-in-process | 13,159 | 12,681 |
Total FIFO inventories | 44,804 | 42,532 |
Total Inventories | $ 86,534 | $ 80,511 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Goodwill, Gross | |||||
Balance, beginning of period | $ 64,858 | ||||
Foreign currency fluctuations | (920) | ||||
Balance, end of period | $ 63,938 | 63,938 | $ 64,858 | ||
Accumulated Impairment Losses | |||||
Balance, beginning of period | (46,503) | ||||
Foreign currency fluctuations | 235 | ||||
Balance, end of period | (46,268) | (46,268) | (46,503) | ||
Goodwill, Net | |||||
Balance, beginning of period | 18,355 | ||||
Foreign currency fluctuations | (685) | ||||
Balance, end of period | 17,670 | 17,670 | 18,355 | ||
Acquired Finite-lived Intangible Assets | |||||
Original cost | 31,951 | 31,951 | 33,161 | ||
Accumulated amortization | (17,659) | (17,659) | (17,573) | ||
Intangible Assets, Net | 14,292 | 14,292 | 15,588 | ||
Amortization expense | 516 | $ 612 | 1,036 | $ 1,223 | |
Estimated aggregate amortization expense of Intangible Assets | |||||
Remaining 2,015 | 923 | 923 | |||
2,016 | 1,705 | 1,705 | |||
2,017 | 1,608 | 1,608 | |||
2,018 | 1,602 | 1,602 | |||
2,019 | 1,490 | 1,490 | |||
Thereafter | 6,964 | 6,964 | |||
Total | 14,292 | 14,292 | |||
Customer Lists | |||||
Acquired Finite-lived Intangible Assets | |||||
Original cost | 21,322 | 21,322 | 21,946 | ||
Accumulated amortization | (12,209) | (12,209) | (12,099) | ||
Intangible Assets, Net | 9,113 | $ 9,113 | $ 9,847 | ||
Weighted-average original life | 15 years | 15 years | |||
Trade Name | |||||
Acquired Finite-lived Intangible Assets | |||||
Original cost | 3,960 | $ 3,960 | $ 4,300 | ||
Accumulated amortization | (2,048) | (2,048) | (2,068) | ||
Intangible Assets, Net | 1,912 | $ 1,912 | $ 2,232 | ||
Weighted-average original life | 14 years | 14 years | |||
Technology | |||||
Acquired Finite-lived Intangible Assets | |||||
Original cost | 6,669 | $ 6,669 | $ 6,915 | ||
Accumulated amortization | (3,402) | (3,402) | (3,406) | ||
Intangible Assets, Net | $ 3,267 | $ 3,267 | $ 3,509 | ||
Weighted-average original life | 13 years | 13 years |
Debt (Details) Part 1
Debt (Details) Part 1 - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument | ||
Total Debt | $ 24,578 | $ 28,137 |
Less: Current Portion | (3,435) | (3,566) |
Long-Term Portion | 21,143 | 24,571 |
Committed lines of credit | 125,000 | |
Uncommitted lines of credit | 87,229 | |
Letters of Credit Outstanding | 2,769 | |
Bank guarantees | 28 | |
Commitment fees on unused line of credit | $ 163 | |
Indebtedness to EBITDA ratio | 0.31 to 1 | |
Line of Credit Facility, EBITDA to interest expense ratio | 54.38 to 1 | |
Credit facility borrowings, Long-Term | ||
Debt Instrument | ||
Total Debt | $ 24,571 | 28,000 |
Collateralized borrowings | ||
Debt Instrument | ||
Total Debt | 7 | 7 |
Capital lease obligations | ||
Debt Instrument | ||
Total Debt | $ 0 | $ 130 |
Debt (Details) Part 2
Debt (Details) Part 2 - Jun. 30, 2015 € in Thousands, $ in Thousands | USD ($) | EUR (€) | USD ($) |
JPMorgan Chase Bank, National Association | |||
Line of Credit Facility | |||
Amount outstanding | $ 10,000 | ||
Covenant restriction, Maximum indebtedness to EBITDA | 3.25 to 1 | ||
Covenant restriction, Minimum EBITDA to interest expense | 3.50 to 1 | ||
Expiration date | Jun. 30, 2020 | ||
Covenant restriction, Maximum leverage after paying dividends or repurchasing stock | 3.25 to 1 | ||
Covenant restriction, Maximum leverage after acquisitions | 3.00 to 1 | ||
Covenant restriction, Maximum level that can be paid for acquisitions | $ 25,000 | ||
Line of credit facility, Minimum commitment fee percentage | 0.175% | ||
Line of credit facility, Maximum commitment fee percentage | 0.30% | ||
Minimum interest rate spread added to adjusted LIBOR rate based on leverage ratio on Eurocurrency borrowings | 1.075% | ||
Maximum interest rate spread added to adjusted LIBOR rate based on leverage ration on Eurocurrency borrowings | 1.70% | ||
Interest Rate Margin Spread Added To Federal Funds Rate | 0.50% | 0.50% | |
Interest Rate Margin Spread Added To LIBOR Rate | 1.00% | 1.00% | |
Minimum Interest Rate Margin Spread Added To LIBOR Rate | 0.075% | 0.075% | |
Maximum Interest Rate Margin Spread Added To LIBOR Rate | 0.70% | 0.70% | |
Weighted average interest rate | 1.48% | 1.48% | |
Prudential Investment Management, Inc. | |||
Line of Credit Facility | |||
Amount outstanding | $ 14,571 | ||
Covenant restriction, Maximum indebtedness to EBITDA | 3.25 to 1 | ||
Covenant restriction, Minimum EBITDA to interest expense | 3.50 to 1 | ||
Expiration date | Jun. 30, 2018 | ||
Covenant restriction, Maximum leverage after paying dividends or repurchasing stock | 3.25 to 1 | ||
Covenant restriction, Maximum leverage after acquisitions | 3.00 to 1 | ||
Covenant restriction, Maximum level that can be paid for acquisitions | $ 25,000 | ||
Line of credit facility, Minimum commitment fee percentage | 0.175% | ||
Line of credit facility, Maximum commitment fee percentage | 0.30% | ||
Minimum interest rate spread added to adjusted LIBOR rate based on leverage ratio on Eurocurrency borrowings | 1.075% | ||
Maximum interest rate spread added to adjusted LIBOR rate based on leverage ration on Eurocurrency borrowings | 1.70% | ||
Interest Rate Margin Spread Added To Federal Funds Rate | 0.50% | 0.50% | |
Interest Rate Margin Spread Added To LIBOR Rate | 1.00% | 1.00% | |
Minimum Interest Rate Margin Spread Added To LIBOR Rate | 0.075% | 0.075% | |
Maximum Interest Rate Margin Spread Added To LIBOR Rate | 0.70% | 0.70% | |
Series A notes | |||
Line of Credit Facility | |||
Face amount | $ 6,000 | ||
Interest rate, stated percentage | 4.00% | 4.00% | |
Note term | 7 years | ||
Maturity date range, start | Mar. 8, 2016 | ||
Maturity date range, end | Mar. 8, 2018 | ||
Repayments of Long-term Debt | $ 2,000 | ||
Series B notes | |||
Line of Credit Facility | |||
Face amount | $ 8,571 | ||
Interest rate, stated percentage | 4.10% | 4.10% | |
Note term | 10 years | ||
Maturity date range, start | Jun. 28, 2016 | ||
Maturity date range, end | Jun. 28, 2021 | ||
Repayments of Long-term Debt | $ 1,429 | ||
Royal Bank of Scotland Citizens, N.A. | |||
Line of Credit Facility | |||
Amount outstanding | $ 0 | ||
Maximum borrowing capacity | € 2,000 | 2,229 | |
HSBC Bank (China) Company Limited, Shanghai Branch | |||
Line of Credit Facility | |||
Amount outstanding | 0 | ||
Maximum borrowing capacity | $ 5,000 |
Warranty (Details)
Warranty (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Product Warranties Disclosures [Abstract] | ||
Warranty terms, minimum | 1 year | |
Warranty terms, maximum | 4 years | |
Period of time following a sale the majority of claims are paid, min | 6 months | |
Period of time following a sale the majority of claims are paid, max | 9 months | |
Changes in warranty reserves | ||
Beginning balance | $ 9,686 | $ 9,663 |
Additions charged to expense | 5,670 | 5,127 |
Foreign currency fluctuations | (118) | 33 |
Claims paid | (5,209) | (4,916) |
Ending balance | $ 10,029 | $ 9,907 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Assets: | |||
Foreign currency forward exchange contracts | $ 130 | ||
Liabilities: | |||
Foreign currency forward exchange contracts | 0 | ||
Notional amount of foreign currency derivatives | $ 38,463 | $ 34,631 | |
Net gain on foreign currency forward exchange contracts | 1,753 | $ (902) | |
Fair Value | |||
Assets: | |||
Foreign currency forward exchange contracts | 80 | ||
Total Assets | 80 | ||
Liabilities: | |||
Foreign currency forward exchange contracts | 46 | ||
Total Liabilities | 46 | ||
Level 1 | |||
Assets: | |||
Foreign currency forward exchange contracts | 0 | ||
Total Assets | 0 | ||
Liabilities: | |||
Foreign currency forward exchange contracts | 0 | ||
Total Liabilities | 0 | ||
Level 2 | |||
Assets: | |||
Foreign currency forward exchange contracts | 80 | ||
Total Assets | 80 | ||
Liabilities: | |||
Foreign currency forward exchange contracts | 46 | ||
Total Liabilities | 46 | ||
Level 3 | |||
Assets: | |||
Foreign currency forward exchange contracts | 0 | ||
Total Assets | 0 | ||
Liabilities: | |||
Foreign currency forward exchange contracts | 0 | ||
Total Liabilities | $ 0 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Foreign currency | $ 0 | |||
Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Plan contributions | $ 76 | $ 202 | ||
U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Service cost | 134 | $ 123 | 240 | 247 |
Interest cost | 423 | 488 | 855 | 982 |
Expected return on plan assets | (655) | (672) | (1,307) | (1,342) |
Amortization of net actuarial loss | 192 | 30 | 418 | 74 |
Amortization of prior service cost (benefit) | 10 | 10 | 21 | 21 |
Foreign currency | 0 | 0 | 0 | 0 |
Net periodic cost (benefit) | 104 | (21) | 227 | (18) |
Non-U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Service cost | 36 | 38 | 72 | 76 |
Interest cost | 125 | 134 | 248 | 266 |
Expected return on plan assets | (146) | (131) | (290) | (260) |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost (benefit) | 65 | 47 | 130 | 93 |
Foreign currency | 118 | (2) | 35 | 16 |
Net periodic cost (benefit) | 198 | 86 | 195 | 191 |
Postretirement Medical Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Plan contributions | 204 | 584 | ||
Service cost | 17 | 32 | 48 | 64 |
Interest cost | 87 | 118 | 196 | 249 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss | (35) | (11) | 0 | 0 |
Amortization of prior service cost (benefit) | 0 | (1) | 0 | (3) |
Foreign currency | 0 | 0 | 0 | |
Net periodic cost (benefit) | $ 69 | $ 138 | $ 244 | $ 310 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Aggregate residual value at lease expiration for vehicle leases | $ 11,542 |
Guaranteed aggregate residual value at lease expiration for vehicle leases | 9,351 |
Liability for the estimated end-of-term loss related to residual value guarantee | $ 184 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Loss (Details) Part 1 - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Components of Accumulated Other Comprehensive Loss | ||
Foreign currency translation adjustments | $ (38,287) | $ (32,090) |
Pension and retiree medical benefits | (6,228) | (6,503) |
Total Accumulated Other Comprehensive Loss | (44,515) | (38,593) |
Foreign Currency Translation Adjustments | ||
Components of Accumulated Other Comprehensive Loss | ||
Total Accumulated Other Comprehensive Loss | (38,287) | (32,090) |
Pension and Post Retirement Benefits | ||
Components of Accumulated Other Comprehensive Loss | ||
Total Accumulated Other Comprehensive Loss | $ (6,228) | $ (6,503) |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Loss (Details) Part 2 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in components of Accumulated Other Comprehensive Loss | ||||
Balance at the beginning of the year | $ (38,593) | |||
Other comprehensive loss before reclassifications | (6,197) | |||
Amounts reclassified from Accumulated Other Comprehensive Loss | 275 | |||
Net current period other comprehensive (loss) income | $ 2,049 | $ 843 | (5,922) | $ 1,922 |
Balance at the end of the period | (44,515) | (44,515) | ||
Foreign Currency Translation Adjustments | ||||
Changes in components of Accumulated Other Comprehensive Loss | ||||
Balance at the beginning of the year | (32,090) | |||
Other comprehensive loss before reclassifications | (6,197) | |||
Amounts reclassified from Accumulated Other Comprehensive Loss | 0 | |||
Net current period other comprehensive (loss) income | (6,197) | |||
Balance at the end of the period | (38,287) | (38,287) | ||
Pension and Post Retirement Benefits | ||||
Changes in components of Accumulated Other Comprehensive Loss | ||||
Balance at the beginning of the year | (6,503) | |||
Other comprehensive loss before reclassifications | 0 | |||
Amounts reclassified from Accumulated Other Comprehensive Loss | 275 | |||
Net current period other comprehensive (loss) income | 275 | |||
Balance at the end of the period | $ (6,228) | $ (6,228) |
Income Taxes (Details)
Income Taxes (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Income Tax Disclosure [Abstract] | |
Liability for unrecognized tax benefits | $ 2,897 |
Unrecognized tax benefits, income tax penalties and interest accrued | 605 |
Unrecognized tax benefits that would impact the effective tax rate | 2,555 |
Reductions in unrecognized tax benefits as a result of expiration of the statute of limitations in various jurisdictions. | $ 131 |
Minimum | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,007 |
Maximum | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,013 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Allocated Share-based Compensation Expense | $ 2,182 | $ 2,216 | $ 4,889 | $ 3,756 |
Excess Tax Benefit on Stock Plans | $ 669 | 1,329 | ||
Restricted shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares granted | 23,048 | |||
Weighted average grant date fair value, in dollars per share | $ 66.33 | |||
Vesting period of new awards granted | 3 years | |||
Fair value of shares vested | $ 833 | $ 827 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Net Earnings | $ 14,817 | $ 15,523 | $ 19,843 | $ 21,318 |
Denominator: | ||||
Basic - Weighted Average Shares Outstanding | 18,197,431 | 18,167,054 | 18,240,027 | 18,242,240 |
Effect of dilutive securities: | ||||
Share-based compensation plans | 474,609 | 508,553 | 484,832 | 534,129 |
Diluted - Weighted Average Shares Outstanding | 18,672,040 | 18,675,607 | 18,724,859 | 18,776,369 |
Basic Earnings per Share | $ 0.81 | $ 0.85 | $ 1.09 | $ 1.17 |
Diluted Earnings per Share | $ 0.79 | $ 0.83 | $ 1.06 | $ 1.14 |
Anti-dilutive securities excluded from earnings per share calculation | 237,405 | 154,897 | 215,767 | 155,497 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Segment Reporting [Abstract] | ||||
Number of operating segments | 4 | |||
Number of reportable segments | 1 | |||
Revenues from External Customers | ||||
Net Sales | $ 215,404 | $ 219,084 | $ 401,144 | $ 403,063 |
Americas | ||||
Revenues from External Customers | ||||
Net Sales | 161,429 | 153,698 | 295,432 | 276,087 |
Europe, Middle East and Africa | ||||
Revenues from External Customers | ||||
Net Sales | 33,741 | 41,273 | 68,388 | 84,336 |
Asia Pacific | ||||
Revenues from External Customers | ||||
Net Sales | $ 20,234 | $ 24,113 | $ 37,324 | $ 42,640 |