Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 29, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Tennant Company | ||
Entity Central Index Key | 97,134 | ||
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 Public Float | $ 1,170,672,343 | ||
Entity Common Stock, Shares Outstanding | 17,649,840 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Earnings [Abstract] | |||
Net Sales | $ 811,799 | $ 821,983 | $ 752,011 |
Cost of Sales | 462,739 | 469,556 | 426,103 |
Gross Profit | 349,060 | 352,427 | 325,908 |
Operating Expense: | |||
Research and Development Expense | 32,415 | 29,432 | 30,529 |
Selling and Administrative Expense | 252,270 | 250,898 | 232,976 |
Impairment of Long-Lived Assets | 11,199 | 0 | 0 |
Total Operating Expense | 295,884 | 280,330 | 263,505 |
Profit from Operations | 53,176 | 72,097 | 62,403 |
Other Income (Expense): | |||
Interest Income | 172 | 302 | 390 |
Interest Expense | (1,313) | (1,722) | (1,761) |
Net Foreign Currency Transaction Losses | (954) | (690) | (671) |
Other Expense, Net | (657) | (449) | (483) |
Total Other Expense, Net | (2,752) | (2,559) | (2,525) |
Profit Before Income Taxes | 50,424 | 69,538 | 59,878 |
Income Tax Expense | 18,336 | 18,887 | 19,647 |
Net Earnings | $ 32,088 | $ 50,651 | $ 40,231 |
Net Earnings per Share: | |||
Basic | $ 1.78 | $ 2.78 | $ 2.20 |
Diluted | $ 1.74 | $ 2.70 | $ 2.14 |
Weighted Average Shares Outstanding: | |||
Basic | 18,015,151 | 18,217,384 | 18,297,371 |
Diluted | 18,493,447 | 18,740,858 | 18,833,453 |
Cash Dividends Declared per Common Share | $ 0.80 | $ 0.78 | $ 0.72 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net Earnings | $ 32,088 | $ 50,651 | $ 40,231 |
Other Comprehensive (Loss) Income: | |||
Foreign currency translation adjustments | (12,520) | (10,112) | (2,242) |
Pension and retiree medical benefits | 4,121 | (5,382) | 12,282 |
Cash Flow Hedge | 164 | 0 | 0 |
Income Taxes: | |||
Foreign currency translation adjustments | 25 | 13 | (15) |
Pension and retiree medical benefits | (1,265) | 1,859 | (4,663) |
Cash Flow Hedge | (61) | 0 | 0 |
Total Other Comprehensive (Loss) Income, net of tax | (9,536) | (13,622) | 5,362 |
Comprehensive Income | $ 22,552 | $ 37,029 | $ 45,593 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and Cash Equivalents | $ 51,300 | $ 92,962 |
Restricted Cash | 640 | 352 |
Receivables: | ||
Trade, less Allowance of $3,615 and $3,936, respectively | 136,344 | 147,228 |
Other | 4,101 | 5,155 |
Net Receivables | 140,445 | 152,383 |
Inventories | 77,292 | 80,511 |
Prepaid Expenses | 14,656 | 9,552 |
Deferred Income Taxes, Current Portion | 0 | 9,738 |
Other Current Assets | 2,485 | 1,591 |
Assets Held for Sale | 6,826 | 0 |
Total Current Assets | 293,644 | 347,089 |
Property, Plant and Equipment | 276,811 | 262,214 |
Accumulated Depreciation | (181,853) | (175,671) |
Property, Plant and Equipment, Net | 94,958 | 86,543 |
Deferred Income Taxes, Long-Term Portion | 12,051 | 8,165 |
Goodwill | 16,803 | 18,355 |
Intangible Assets, Net | 3,195 | 15,588 |
Other Assets | 11,644 | 11,192 |
Total Assets | 432,295 | 486,932 |
Current Liabilities: | ||
Short-Term Debt and Current Portion of Long-Term Debt | 3,459 | 3,566 |
Accounts Payable | 50,350 | 61,627 |
Employee Compensation and Benefits | 34,528 | 33,842 |
Income Taxes Payable | 1,398 | 1,087 |
Other Current Liabilities | 43,027 | 45,508 |
Liabilities Held for Sale | 454 | 0 |
Total Current Liabilities | 133,216 | 145,630 |
Long-Term Liabilities: | ||
Long-Term Debt | 21,194 | 24,571 |
Employee-Related Benefits | 21,508 | 25,711 |
Deferred Income Taxes, Long-Term Portion | 5 | 5,989 |
Other Liabilities | 4,165 | 4,380 |
Total Long-Term Liabilities | 46,872 | 60,651 |
Total Liabilities | $ 180,088 | $ 206,281 |
Commitments and Contingencies (Note 15) | ||
Shareholders' Equity: | ||
Preferred Stock of $0.02 par value per share, 1,000,000 shares authorized; no shares issued or outstanding | $ 0 | $ 0 |
Common Stock, $0.375 par value per share, 60,000,000 shares authorized; 17,744,381 and 18,415,047 issued and outstanding, respectively | 6,654 | 6,906 |
Additional Paid-In Capital | 0 | 26,247 |
Retained Earnings | 293,682 | 286,091 |
Accumulated Other Comprehensive Loss | (48,129) | (38,593) |
Total Shareholders' Equity | 252,207 | 280,651 |
Total Liabilities and Shareholders' Equity | $ 432,295 | $ 486,932 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Allowance For Doubtful Receivables and Sales Returns | $ 3,615 | $ 3,936 |
Shareholders' Equity: | ||
Preferred Stock, par value (in dollars per share) | $ 0.02 | $ 0.02 |
Preferred Stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred Stock, issued (in shares) | 0 | 0 |
Preferred Stock, outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.375 | $ 0.375 |
Common Stock, authorized (in shares) | 60,000,000 | 60,000,000 |
Common Stock, issued (in shares) | 17,744,381 | 18,415,047 |
Common Stock, outstanding (in shares) | 17,744,381 | 18,415,047 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | |||
Net Earnings | $ 32,088 | $ 50,651 | $ 40,231 |
Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities: | |||
Depreciation | 16,550 | 17,694 | 17,686 |
Amortization | 1,481 | 2,369 | 2,560 |
Impairment of Long-Lived Assets | 11,199 | 0 | 0 |
Deferred Income Taxes | (1,129) | 129 | 5,622 |
Share-Based Compensation Expense | 8,222 | 7,314 | 6,116 |
Allowance for Doubtful Accounts and Returns | 1,089 | 1,504 | 1,279 |
Other, Net | (100) | 24 | 219 |
Changes in Operating Assets and Liabilities | |||
Receivables, Net | 4,547 | (18,811) | (7,618) |
Inventories | (10,190) | (21,155) | (11,967) |
Accounts Payable | (10,455) | 10,192 | 6,120 |
Employee Compensation and Benefits | 716 | 1,927 | (4,178) |
Other Current Liabilities | (402) | 2,782 | 5,552 |
Income Taxes | (4,283) | 3,466 | (248) |
Other Assets and Liabilities | (4,101) | 1,276 | (1,560) |
Net Cash Provided by Operating Activities | 45,232 | 59,362 | 59,814 |
INVESTING ACTIVITIES | |||
Purchases of Property, Plant and Equipment | (24,780) | (19,583) | (14,775) |
Proceeds form Disposals of Property, Plant and Equipment | 336 | 291 | 120 |
Acquisition of Businesses, Net of Cash Acquired | 0 | 0 | (750) |
Proceeds from Sale of Business | 1,185 | 1,416 | 4,261 |
(Increase) Decrease in Restricted Cash | (322) | 6 | (253) |
Net Cash Used for Investing Activities | (23,581) | (17,870) | (11,397) |
FINANCING ACTIVITIES | |||
Short-Term Debt Borrowings | 0 | 0 | 1,500 |
Payments of Short-term Debt | 0 | (1,500) | 0 |
Payments of Long-Term Debt | (3,445) | (2,016) | (1,096) |
Purchases of Common Stock | (45,998) | (14,097) | (22,157) |
Proceeds from Issuances of Common Stock | 1,677 | 2,269 | 8,313 |
Excess Tax Benefit on Stock Plans | 859 | 1,793 | 5,178 |
Dividends Paid | (14,498) | (14,487) | (13,233) |
Net Cash Used for Financing Activities | (61,405) | (28,038) | (21,495) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (1,908) | (1,476) | 122 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (41,662) | 11,978 | 27,044 |
Cash and Cash Equivalents at Beginning of Year | 92,962 | 80,984 | 53,940 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 51,300 | 92,962 | 80,984 |
Cash Paid During the Year for: | |||
Income Taxes | 23,421 | 11,342 | 13,458 |
Interest | 1,167 | 1,470 | 1,602 |
Supplemental Non-Cash Investing and Financing Activities: | |||
Capital Expenditures in Accounts Payable | $ 1,830 | $ 1,197 | $ 1,090 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2012 | $ 235,054 | $ 6,924 | $ 22,398 | $ 236,065 | $ (30,333) | |
Balance (in shares) at Dec. 31, 2012 | 18,464,450 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Earnings | 40,231 | 0 | 0 | 40,231 | 0 | |
Other Comprehensive Income (Loss) | 5,362 | 0 | 0 | 0 | 5,362 | |
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings (9,457, 46,152 and 23,160 shares) | 6,722 | 173 | 6,549 | 0 | 0 | |
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings (9,457, 46,152 and 23,160 shares) (in shares) | 461,192 | |||||
Share-Based Compensation | 6,689 | 0 | 6,689 | 0 | 0 | |
Dividends paid ($0.72, $0.78 and $0.80) per Common Share) | (13,233) | 0 | 0 | (13,233) | 0 | |
Tax Benefit on Stock Plans | 5,178 | 0 | 5,178 | 0 | 0 | |
Purchases of Common Stock | (22,157) | (163) | (8,858) | (13,136) | 0 | |
Purchases of Common Stock (in shares) | (434,118) | |||||
Balance at Dec. 31, 2013 | 263,846 | 6,934 | 31,956 | 249,927 | (24,971) | |
Balance (in shares) at Dec. 31, 2013 | 18,491,524 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Earnings | 50,651 | 0 | 0 | 50,651 | 0 | |
Other Comprehensive Income (Loss) | (13,622) | 0 | 0 | 0 | (13,622) | |
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings (9,457, 46,152 and 23,160 shares) | (748) | 56 | (804) | 0 | 0 | |
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings (9,457, 46,152 and 23,160 shares) (in shares) | 148,557 | |||||
Share-Based Compensation | 7,314 | 0 | 7,314 | 0 | 0 | |
Dividends paid ($0.72, $0.78 and $0.80) per Common Share) | (14,487) | 0 | 0 | (14,487) | 0 | |
Tax Benefit on Stock Plans | 1,793 | 0 | 1,793 | 0 | 0 | |
Purchases of Common Stock | (14,096) | (84) | (14,012) | 0 | 0 | |
Purchases of Common Stock (in shares) | (225,034) | |||||
Balance at Dec. 31, 2014 | $ 280,651 | 6,906 | 26,247 | 286,091 | (38,593) | |
Balance (in shares) at Dec. 31, 2014 | 18,415,047 | 18,415,047 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Earnings | $ 32,088 | 0 | 0 | 32,088 | 0 | |
Other Comprehensive Income (Loss) | (9,536) | 0 | 0 | 0 | (9,536) | |
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings (9,457, 46,152 and 23,160 shares) | 419 | 35 | 384 | 0 | 0 | |
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings (9,457, 46,152 and 23,160 shares) (in shares) | 93,380 | |||||
Share-Based Compensation | 8,222 | 0 | 8,222 | 0 | 0 | |
Dividends paid ($0.72, $0.78 and $0.80) per Common Share) | (14,498) | 0 | 0 | (14,498) | 0 | |
Tax Benefit on Stock Plans | 859 | 0 | 859 | 0 | 0 | |
Purchases of Common Stock | (45,998) | (287) | (35,712) | (9,999) | 0 | |
Purchases of Common Stock (in shares) | (764,046) | |||||
Balance at Dec. 31, 2015 | $ 252,207 | $ 6,654 | $ 0 | $ 293,682 | $ (48,129) | |
Balance (in shares) at Dec. 31, 2015 | 17,744,381 | 17,744,381 |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Shareholders' Equity (Parenthetical) | |||
Tax withholdings for Directors, Employee Benefit and Stock Plans (in shares) | 23,160 | 46,152 | 9,457 |
Dividends paid per Common Share (in dollars per share) | $ 0.80 | $ 0.78 | $ 0.72 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Operations – Our primary business is in designing, manufacturing and marketing solutions that empower customers to achieve quality cleaning performance, significantly reduce environmental impact and help create a cleaner, safer, healthier world. Tennant is committed to creating and commercializing breakthrough, sustainable cleaning innovations to enhance its broad suite of products, including: floor maintenance and outdoor cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, specialty surface coatings and asset management solutions. Tennant products are used in many types of environments including: Retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, parking lots and streets, and more. Customers include contract cleaners to whom organizations outsource facilities maintenance, as well as businesses that perform facilities maintenance themselves. The Company reaches these customers through the industry's largest direct sales and service organization and through a strong and well-supported network of authorized distributors worldwide. Consolidation – The Consolidated Financial Statements include the accounts of Tennant Company and its subsidiaries. All intercompany transactions and balances have been eliminated. In these Notes to the Consolidated Financial Statements, Tennant Company is referred to as “Tennant,” “we,” “us,” or “our.” Translation of Non-U.S. Currency – Foreign currency-denominated assets and liabilities have been translated to U.S. dollars at year-end exchange rates, while income and expense items are translated at average exchange rates prevailing during the year. Gains or losses resulting from translation are included as a separate component of Accumulated Other Comprehensive Loss. The balance of cumulative foreign currency translation adjustments recorded within Accumulated Other Comprehensive Loss as of December 31, 2015 , 2014 and 2013 was a net loss of $44,585 , $32,090 and $21,991 , respectively. The majority of translation adjustments are not adjusted for income taxes as substantially all translation adjustments relate to permanent investments in non-U.S. subsidiaries. Net Foreign Currency Transaction Losses are included in Other Income (Expense). Use of Estimates – In preparing the consolidated financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP"), management must make decisions that impact the reported amounts of assets, liabilities, revenues, expenses and the related disclosures, including disclosures of contingent assets and liabilities. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. Estimates are used in determining, among other items, sales promotions and incentives accruals, inventory valuation, warranty reserves, allowance for doubtful accounts, pension and postretirement accruals, useful lives for intangible assets, and future cash flows associated with impairment testing for Goodwill and other long-lived assets. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. A number of these factors include, among others, economic conditions, credit markets, foreign currency, commodity cost volatility and consumer spending and confidence, all of which have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual amounts could differ significantly from those estimated at the time the consolidated financial statements are prepared. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash and Cash Equivalents – We consider all highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. Restricted Cash – We have a total of $640 as of December 31, 2015 that serves as collateral backing certain bank guarantees and is therefore restricted. This money is invested in time deposits. Receivables – Credit is granted to our customers in the normal course of business. Receivables are recorded at original carrying value less reserves for estimated uncollectible accounts and sales returns. To assess the collectability of these receivables, we perform ongoing credit evaluations of our customers’ financial condition. Through these evaluations, we may become aware of a situation where a customer may not be able to meet its financial obligations due to deterioration of its financial viability, credit ratings or bankruptcy. The reserve requirements are based on the best facts available to us and are reevaluated and adjusted as additional information becomes available. Our reserves are also based on amounts determined by using percentages applied to trade receivables. These percentages are determined by a variety of factors including, but not limited to, current economic trends, historical payment and bad debt write-off experience. An account is considered past-due or delinquent when it has not been paid within the contractual terms. Uncollectible accounts are written off against the reserves when it is deemed that a customer account is uncollectible. Inventories – Inventories are valued at the lower of cost or market. Cost is determined on a first-in, first-out (“FIFO”) basis except for Inventories in North America, which are determined on a last-in, first-out (“LIFO”) basis. Property, Plant and Equipment – Property, plant and equipment is carried at cost. Additions and improvements that extend the lives of the assets are capitalized while expenditures for repairs and maintenance are expensed as incurred. We generally depreciate buildings and improvements by the straight-line method over a life of 30 years . Other property, plant and equipment are generally depreciated using the straight-line method based on lives of 3 years to 15 years . Goodwill – Goodwill represents the excess of cost over the fair value of net assets of businesses acquired. We analyze Goodwill on an annual basis as of year end and when an event occurs or circumstances change that may reduce the fair value of one of our reporting units below its carrying amount. A goodwill impairment occurs if the carrying amount of a reporting unit’s Goodwill exceeds its fair value. In assessing the recoverability of Goodwill, we use an analysis of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step Goodwill impairment test. Intangible Assets – Intangible Assets consist of definite lived customer lists, service contracts and technology. Intangible Assets with a definite life are amortized on a straight-line basis. Impairment of Long-lived Assets and Assets Held for Sale – We periodically review our intangible and long-lived assets for impairment and assess whether events or circumstances indicate that the carrying amount of the assets may not be recoverable. We generally deem an asset group to be impaired if an estimate of undiscounted future operating cash flows is less than its carrying amount. If impaired, an impairment loss is recognized based on the excess of the carrying amount of the individual asset group over its fair value. Assets held for sale are measured at the lower of their carrying value or fair value less costs to sell. Upon retirement or disposition, the asset cost and related accumulated depreciation or amortization are removed from the accounts and a gain or loss is recognized based on the difference between the fair value of proceeds received and carrying value of the assets held for sale. In fiscal 2015, we adopted a plan to sell assets and liabilities of our Green Machines™ outdoor city cleaning line as a result of determining that the product line does not sufficiently complement our core business. The long-lived assets involved were tested for recoverability at the end of third quarter; accordingly, a pre-tax impairment loss of $11,199 was recognized, which represents the amount by which the carrying values of the assets exceeded their fair value less costs to sell. The impairment charge is included in the caption "Impairment of Long-Lived Assets" in the accompanying Consolidated Statements of Earnings. For additional information regarding the impairment of our Green Machines outdoor city cleaning line and the related accounting impact, refer to Note 6. Purchases of Common Stock – We repurchase our Common Stock under a 2015 repurchase program authorized by our Board of Directors. This program allows us to repurchase up to an additional 1,000,000 shares of our Common Stock. Upon repurchase, the par value is charged to Common Stock and the remaining purchase price is charged to Additional Paid-in Capital. If the amount of the remaining purchase price causes the Additional Paid-in Capital account to be in a debit position, this amount is then reclassified to Retained Earnings. Common Stock repurchased is included in shares authorized but is not included in shares outstanding. Warranty – We record a liability for estimated 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. In the event we determine that our current or future product repair and replacement costs exceed our estimates, an adjustment to these reserves would be charged to earnings in the period such determination is made. Warranty terms on machines 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 out for older equipment warranty issues. Environmental – We record a liability for environmental clean-up on an undiscounted basis when a loss is probable and can be reasonably estimated. Pension and Profit Sharing Plans – We have pension and/or profit sharing plans covering substantially all of our employees. Pension plan costs are accrued based on actuarial estimates with the required pension cost funded annually, as needed. No new participants have entered the pension plan since 2000. Postretirement Benefits – We accrue and recognize the cost of retiree health benefits over the employees’ period of service based on actuarial estimates. Benefits are only available for U.S. employees hired before January 1, 1999. Derivative Financial Instruments – In countries outside the U.S., we transact business in U.S. dollars and in various other currencies. We hedge our net recognized foreign currency denominated assets and liabilities with foreign exchange forward contracts to reduce the risk that the value of these assets and liabilities will be adversely affected by changes in exchange rates. We may also use foreign exchange option contracts or forward contracts to hedge certain cash flow exposures resulting from changes in foreign currency exchange rates. We enter into these foreign exchange contracts to hedge a portion of our forecasted currency denominated revenue in the normal course of business, and accordingly, they are not speculative in nature. We account for our foreign currency hedging instruments as either assets or liabilities on the balance sheet and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Gains and losses from foreign exchange forward contracts that hedge certain balance sheet positions are recorded each period to Net Foreign Currency Transaction Losses in our Consolidated Statements of Earnings. Foreign exchange option contracts or forward contracts hedging forecasted foreign currency revenue are designated as cash flow hedges under accounting for derivative instruments and hedging activities, with gains and losses recorded each period to Accumulated Other Comprehensive Loss in our Consolidated Balance Sheets, until the forecasted transaction occurs. When the forecasted transaction occurs, we reclassify the related gain or loss on the cash flow hedge to Net Sales. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from Accumulated Other Comprehensive Loss to Net Foreign Currency Transaction Losses in our Consolidated Statements of Earnings at that time. If we do not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in Net Foreign Currency Transaction Losses in our Consolidated Statements of Earnings. See Note 11 for additional information regarding our hedging activities. Revenue Recognition – We recognize revenue when persuasive evidence of an arrangement exists, title and risk of ownership have passed to the customer, the sales price is fixed or determinable and collectability is reasonably assured. Generally, these criteria are met at the time the product is shipped. Provisions for estimated returns, rebates and discounts are provided for at the time the related revenue is recognized. Freight revenue billed to customers is included in Net Sales and the related shipping expense is included in Cost of Sales. Service revenue is recognized in the period the service is performed or ratably over the period of the related service contract. Customers may obtain financing through third-party leasing companies to assist in their acquisition of our equipment products. Certain lease transactions classified as operating leases contain retained ownership provisions or guarantees, which results in recognition of revenue over the lease term. As a result, we defer the sale of these transactions and record the sales proceeds as collateralized borrowings or deferred revenue. The underlying equipment relating to operating leases is depreciated on a straight-line basis, not to exceed the equipment’s estimated useful life. Revenues from contracts with multiple element arrangements are recognized as each element is earned. We offer service contracts in conjunction with equipment sales in addition to selling equipment and service contracts separately. Sales proceeds related to service contracts are deferred if the proceeds are received in advance of the service and recognized ratably over the contract period. Share-based Compensation – We account for employee share-based compensation using the fair value based method. Our share-based compensation plans are more fully described in Note 17 of the Consolidated Financial Statements. Research and Development – Research and development costs are expensed as incurred. Advertising Costs – We advertise products, technologies and solutions to customers and prospective customers through a variety of marketing campaign and promotional efforts. These efforts include tradeshows, online advertising, e-mail marketing, mailings, sponsorships and telemarketing. Advertising costs are expensed as incurred. In 2015 , 2014 and 2013 such activities amounted to $7,418 , $8,583 and $6,412 , respectively. Income Taxes – Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the book and tax bases of existing assets and liabilities. A valuation allowance is provided when, in management’s judgment, it is more likely than not that some portion or all of the deferred tax asset will not be realized. We have established contingent tax liabilities using management’s best judgment. We follow guidance provided by Accounting Standards Codification ("ASC") 740, Income Taxes , regarding uncertainty in income taxes, to record these contingent tax liabilities (refer to Note 16 of the Consolidated Financial Statements for additional information). We adjust these liabilities as facts and circumstances change. Interest Expense is recognized in the first period the interest would begin accruing. Penalties are recognized in the period we claim or expect to claim the position in our tax return. Interest and penalties expenses are classified as an income tax expense. Sales Tax – Sales taxes collected from customers and remitted to governmental authorities are presented on a net basis. Earnings per Share – Basic earnings per share is computed by dividing Net Earnings by the Weighted Average Shares Outstanding during the period. Diluted earnings per share assume conversion of potentially dilutive stock options, performance shares, restricted shares and restricted stock units. |
Newly Adopted Accounting Princi
Newly Adopted Accounting Principles | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Newly Adopted Accounting Pronouncements | 2. Newly Adopted Accounting Pronouncements Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . This guidance simplifies the presentation of deferred income taxes by requiring an entity to classify deferred tax liabilities and assets as noncurrent in the classified statement of financial position. The amendments in this update apply to all entities that present a classified statement of financial position and does not affect the current requirement that deferred tax liabilities and assets be offset and presented as a single amount. Early application of the amendments is permitted for all entities as of the beginning of an interim or annual reporting period. Furthermore, the ASU allows entities to apply the guidance either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. If the entity applies the guidance prospectively, the entity should disclose in the first interim and first annual period of change, the nature of and reason for the change in accounting principle and a statement that the prior periods were not retrospectively adjusted. If an entity applies the guidance retrospectively, the entity should disclose in the first interim and first annual period of change the nature of and reason for the change in accounting principle and quantitative information about the effects of the accounting change on prior periods. We have decided to early adopt the amendments of this ASU prospectively to all deferred tax liabilities and assets. We believe adopting these amendments early and prospectively is reasonable as the ASU gives the option for early adoption and allows for explicit transition guidance to adopt the standard prospectively. The change only affects the classification of our deferred tax liabilities and assets reported in 2015 on our Consolidated Balance Sheets. Deferred tax liabilities and assets reported as current in 2014 were not retrospectively adjusted. |
Management Actions
Management Actions | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Management Actions | 3. Management Actions Q3 2015 Action – During the third quarter of 2015, we implemented a restructuring action to reduce our infrastructure costs that we anticipate will improve Selling and Administrative Expense operating leverage in future quarters. The pre-tax charge of $1,779 recognized in the third quarter of 2015 consisted primarily of severance, the majority of which was in Europe, and was included within Selling and Administrative Expense in the Consolidated Statements of Earnings. We believe the anticipated savings will offset the pre-tax charge in approximately one year . The charge impacted our Americas, EMEA and APAC operating segments. 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 Q3 2015 restructuring action $ 1,779 Cash payments (815 ) Foreign currency adjustments (19 ) December 31, 2015 balance $ 945 Q4 2015 Action – During the fourth quarter of 2015, we implemented an additional restructuring action to reduce our infrastructure costs that we anticipate will improve Selling and Administrative Expense operating leverage in future quarters. The pre-tax charge of $1,965 , including other associated costs of $481 , consisted primarily of severance and was recorded in the fourth quarter of 2015. the pre-tax charge was included within Selling and Administrative Expense in the Consolidated Statements of Earnings. We believe the anticipated savings will offset the pre-tax charge in approximately 1.5 years . The charge impacted our Americas, EMEA and APAC operating segments. 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 2015 restructuring action $ 1,484 Cash payments (517 ) December 31, 2015 $ 967 |
Divestiture (Notes)
Divestiture (Notes) | 12 Months Ended |
Dec. 31, 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 third and final anniversary payment of €1,075 , or $1,185 , was received on July 31, 2015. As a result of this divestiture, we recorded a pre-tax gain of $784 in our Profit from Operations in the 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 21, 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 Tennant is not the primary beneficiary of this VIE. The only financing Tennant has 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. Assets and Liabilities Held for Sale On August 19, 2015, we adopted a plan to sell assets and liabilities of our Green Machines outdoor city cleaning line as a result of determining that the product line, which constitutes approximately two percent of our total sales, does not sufficiently complement our core business. The long-lived assets involved were tested for recoverability as of the 2015 third quarter balance sheet date; accordingly, a pre-tax impairment loss of $11,199 was recognized, which represents the amount by which the carrying values of the assets exceeded their fair value, less costs to sell. The $11,199 consisted of $10,577 of intangible assets and $622 of fixed assets. The impairment loss is recorded as a separate line item ("Impairment of Long-Lived Assets") in the Consolidated Statements of Earnings. The carrying value of the assets and liabilities that are held for sale are separately presented in the Consolidated Balance Sheets in the captions "Assets Held for Sale" and "Liabilities Held for Sale," respectively. The long-lived assets classified as held for sale are no longer being depreciated. On January 19, 2016, we signed a Business Purchase Agreement ("BPA") with Green Machines International GmbH and affiliates, subsidiaries of M&F, which is also parent company of the master distributor of our products in Central Eastern Europe, Middle East and Africa, TCS EMEA GmbH, for the sale of our Green Machines outdoor city cleaning line. Per the BPA, the sale officially closed on January 31, 2016. The assets and liabilities of Green Machines held for sale as of December 31, consisted of the following: 2015 Assets: Accounts Receivable $ 1,715 Inventories 4,679 Prepaid Expenses 239 Property, Plant and Equipment, net 193 Total Assets Held for Sale $ 6,826 Liabilities: Employee Compensation and Benefits $ 338 Other Current Liabilities 116 Total Liabilities Held for Sale $ 454 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories Inventories as of December 31, consisted of the following: 2015 2014 Inventories carried at LIFO: Finished goods $ 41,225 $ 41,687 Raw materials, production parts and work-in-process 22,158 24,458 LIFO reserve (27,645 ) (28,166 ) Total LIFO inventories $ 35,738 $ 37,979 Inventories carried at FIFO: Finished goods $ 32,421 $ 29,851 Raw materials, production parts and work-in-process 13,812 12,681 Less: Inventories held for sale (4,679 ) — Total FIFO inventories $ 41,554 $ 42,532 Total inventories $ 77,292 $ 80,511 The LIFO reserve approximates the difference between LIFO carrying cost and FIFO. |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | 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 third and final anniversary payment of €1,075 , or $1,185 , was received on July 31, 2015. As a result of this divestiture, we recorded a pre-tax gain of $784 in our Profit from Operations in the 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 21, 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 Tennant is not the primary beneficiary of this VIE. The only financing Tennant has 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. Assets and Liabilities Held for Sale On August 19, 2015, we adopted a plan to sell assets and liabilities of our Green Machines outdoor city cleaning line as a result of determining that the product line, which constitutes approximately two percent of our total sales, does not sufficiently complement our core business. The long-lived assets involved were tested for recoverability as of the 2015 third quarter balance sheet date; accordingly, a pre-tax impairment loss of $11,199 was recognized, which represents the amount by which the carrying values of the assets exceeded their fair value, less costs to sell. The $11,199 consisted of $10,577 of intangible assets and $622 of fixed assets. The impairment loss is recorded as a separate line item ("Impairment of Long-Lived Assets") in the Consolidated Statements of Earnings. The carrying value of the assets and liabilities that are held for sale are separately presented in the Consolidated Balance Sheets in the captions "Assets Held for Sale" and "Liabilities Held for Sale," respectively. The long-lived assets classified as held for sale are no longer being depreciated. On January 19, 2016, we signed a Business Purchase Agreement ("BPA") with Green Machines International GmbH and affiliates, subsidiaries of M&F, which is also parent company of the master distributor of our products in Central Eastern Europe, Middle East and Africa, TCS EMEA GmbH, for the sale of our Green Machines outdoor city cleaning line. Per the BPA, the sale officially closed on January 31, 2016. The assets and liabilities of Green Machines held for sale as of December 31, consisted of the following: 2015 Assets: Accounts Receivable $ 1,715 Inventories 4,679 Prepaid Expenses 239 Property, Plant and Equipment, net 193 Total Assets Held for Sale $ 6,826 Liabilities: Employee Compensation and Benefits $ 338 Other Current Liabilities 116 Total Liabilities Held for Sale $ 454 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, Plant and Equipment and related Accumulated Depreciation, including equipment under capital leases, as of December 31, consisted of the following: 2015 2014 Property, Plant and Equipment: Land $ 4,232 $ 4,265 Buildings and improvements 52,118 52,962 Machinery and manufacturing equipment 117,197 117,622 Office equipment 80,972 73,677 Work in progress 24,481 13,688 Less: Gross Property, Plant and Equipment held for sale (2,189 ) — Total Property, Plant and Equipment $ 276,811 $ 262,214 Accumulated Depreciation: Accumulated Depreciation $ (183,849 ) $ (175,671 ) Add: Accumulated Depreciation on Property, Plant and Equipment held for sale 1,996 — Total Accumulated Depreciation $ (181,853 ) $ (175,671 ) Property, Plant and Equipment, Net $ 94,958 $ 86,543 We recorded an impairment loss on Green Machines' fixed assets during 2015, totaling $622 , due to our strategic decision to hold the assets of the Green Machines product line for sale. This amount was recorded in Accumulated Depreciation as a write off against Property, Plant and Equipment. The impairment charge was included within Impairment of Long-Lived Assets in the Consolidated Statements of Earnings. Further details regarding the sale of our Green Machines outdoor city cleaning line are discussed in Note 6. Depreciation expense was $16,550 in 2015 , $17,694 in 2014 and $17,686 in 2013 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets For purposes of performing our goodwill impairment analysis, we have identified our reporting units as North America, Latin America, EMEA and APAC. As of December 31, 2015 , 2014 and 2013 , we performed an analysis of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. Based on our analysis of qualitative factors, we determined that it was not necessary to perform the two-step goodwill impairment test for any of our reporting units. The changes in the carrying amount of Goodwill are as follows: Goodwill Accumulated Impairment Losses Total Balance as of December 31, 2013 $ 68,906 $ (49,977 ) $ 18,929 Foreign currency fluctuations (4,048 ) 3,474 (574 ) Balance as of December 31, 2014 $ 64,858 $ (46,503 ) $ 18,355 Foreign currency fluctuations (4,411 ) 2,859 (1,552 ) Balance as of December 31, 2015 $ 60,447 $ (43,644 ) $ 16,803 The balances of acquired Intangible Assets, excluding Goodwill, as of December 31, are as follows: Customer Lists and Service Contracts Trade Name Technology Total Balance as of December 31, 2015 Original cost $ 19,781 $ 3,859 $ 6,596 $ 30,236 Accumulated amortization (19,232 ) (3,859 ) (3,950 ) (27,041 ) Carrying amount $ 549 $ — $ 2,646 $ 3,195 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 amount $ 9,847 $ 2,232 $ 3,509 $ 15,588 Weighted-average original life (in years) 15 14 13 We recorded an impairment loss on the Green Machines customer lists, trade name and technology intangible assets during the third quarter of 2015, totaling $10,577 , due to our strategic decision to hold the assets of the Green Machines product line for sale. The impairment was included within Impairment of Long-Lived Assets in the 2015 Consolidated Statements of Earnings. Further details regarding the sale of our Green Machines outdoor city cleaning line are discussed in Note 6. Amortization expense on Intangible Assets was $1,481 , $2,369 and $2,560 for the years ended December 31, 2015 , 2014 and 2013 , respectively. Estimated aggregate amortization expense based on the current carrying amount of amortizable Intangible Assets for each of the five succeeding years is as follows: 2016 $ 407 2017 315 2018 309 2019 309 2020 309 Thereafter 1,546 Total $ 3,195 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt as of December 31, consisted of the following: 2015 2014 Long-Term Debt: Credit facility borrowings 24,571 28,000 Collateralized borrowings — 7 Capital lease obligations 82 130 Total Debt 24,653 28,137 Less: current portion (3,459 ) (3,566 ) Long-term portion $ 21,194 $ 24,571 As of December 31, 2015 , we had committed lines of credit totaling approximately $125,000 and uncommitted credit facilities totaling $87,173 .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 December 31, 2015 . In addition, we had stand alone letters of credit and bank guarantees outstanding in the amount of $3,249 . Commitment fees on unused lines of credit for the year ended December 31, 2015 were $275 . Our most restrictive covenants are part of our 2015 Amended and Restated Credit Agreement (as defined below), which are the same covenants in our 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 December 31, 2015 , our indebtedness to EBITDA ratio was 0.37 to 1 and our EBITDA to interest expense ratio was 64.39 to 1 . Credit Facilities JPMorgan Chase Bank, National Association On June 30, 2015, we entered into an Amended and Restated Credit Agreement (the "Amended and Restated Credit Agreement") that amended and restated the Credit Agreement dated May 5, 2011 between us and 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 and Restated Credit Agreement provides us and certain of our foreign subsidiaries access to a senior unsecured credit facility until June 30, 2020 , in the amount of $125,000 , with an option to expand by up to $62,500 to a total of $187,500 . Borrowings may be denominated in U.S. dollars or certain other currencies. The Amended and Restated Credit Agreement contains a $100,000 sublimit on borrowings by foreign subsidiaries. The Amended and Restated Credit Agreement principally provided the following changes to the Credit Agreement: • changed the fees for committed funds from an annual rate ranging from 0.20% to 0.35% , depending on our leverage ratio, under the Credit Agreement to an annual rate ranging from 0.175% to 0.300% , depending on our leverage ratio, under the Amended and Restated Credit Agreement; • removed RBS Citizens, N.A. as a co-documentation agent; • changed the rate at which Eurocurrency borrowings bear interest from a rate per annum equal to adjusted LIBOR plus an additional spread of 1.30% to 1.90% , depending on our leverage ratio, under the Credit Agreement to a rate per annum equal to adjusted LIBOR plus an additional spread of 1.075% to 1.700% , depending on our leverage ratio, under the Amended and Restated Credit Agreement; • under the Credit Agreement, Alternate Base Rate (“ABR”) borrowings bore interest at 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 0.30% to 0.90% , depending on our leverage ratio. The ABR borrowings bear interest under the Amended and Restated Credit Agreement at a rate per annum equal to the greatest of (a) the primate 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 our leverage ratio. The Amended and Restated Credit Agreement gives the Lenders a pledge of 65% of the stock of certain first tier foreign subsidiaries. The obligations under the Amended and Restated Credit Agreement are also guaranteed by certain of our first tier domestic subsidiaries. The Amended and Restated Credit Agreement contains customary representations, warranties and covenants, including but not limited to covenants restricting our ability to incur indebtedness and liens and merge or consolidate with another entity. It also incorporates new or recently revised financial regulations and other compliance matters. Further, the Amended and Restated Credit Agreement contains the following covenants: • a covenant requiring us to maintain an indebtedness to EBITDA ratio as of the end of each quarter of not greater than 3.25 to 1 . Under the Credit Agreement, the required indebtedness to EBITDA ratio as of the end of each quarter was not greater than 3.00 to 1 ; • a covenant requiring us to maintain an EBITDA to interest expense ratio as of the end of each quarter of no less than 3.50 to 1 ; • a covenant restricting us from paying dividends or repurchasing stock if, after giving effect to such payments, our leverage ratio is greater than 2.00 to 1 , in such case limiting such payments to an amount ranging from $50,000 to $75,000 during any fiscal year based on our leverage ratio after giving effect to such payments; • a covenant restricting us from paying any dividends or repurchasing stock, if, after giving effect to such payments, our leverage ratio is greater than 3.25 to 1 ; and • a covenant restricting our ability to make acquisitions, if, after giving pro-forma effect to such acquisitions, our leverage ratio is greater than 3.00 to 1 , in such case limiting acquisitions to $25,000 . Under the Credit Agreement, our leverage ratio restriction under this covenant was 2.75 to 1 . A copy of the full terms and conditions of the Amended and Restated Credit Agreement are incorporated by reference in Item 15 to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on July 7, 2015. As of December 31, 2015 , we were in compliance with all covenants under this Amended and Restated Credit Agreement. There were $10,000 in outstanding borrowings under this facility at December 31, 2015 , with a weighted average interest rate of 1.29% . Prudential Investment Management, Inc. On July 29, 2009, we entered into a Private Shelf Agreement (the “Shelf Agreement”) with Prudential Investment Management, Inc. (“Prudential”) and Prudential affiliates from time to time party thereto. The Shelf Agreement provides us and our subsidiaries access to an uncommitted, senior secured, maximum aggregate principal amount of $80,000 of debt capital. The Shelf Agreement contains representations, warranties and covenants, including but not limited to covenants restricting our ability to incur indebtedness and liens and to merge or consolidate with another entity. A copy of the full terms and conditions of the Shelf Agreement are incorporated by reference in Item 15 to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on July 30, 2009. On May 5, 2011, we entered into Amendment No. 1 to our Private Shelf Agreement (the “Amendment”). The Amendment principally provided the following changes to the Shelf Agreement: • elimination of the security interest in our personal property and subsidiaries; and • an amendment to our restriction regarding the payment of dividends or repurchase of stock to restrict us from paying dividends or repurchasing stock if, after giving effect to such payments, our leverage ratio is greater than 2.00 to 1 , in such case limiting such payments to an amount ranging from $50,000 to $75,000 during any fiscal year based on our leverage ratio after giving effect to such payments. A copy of the full terms and conditions of the Amendment are incorporated by reference in Item 15 to Exhibit 10.2 to the Company's Form 10-Q for the quarter ended June 30, 2011. On July 24, 2012, we entered into Amendment No. 2 to our Private Shelf Agreement (“Amendment No. 2”), which amended the Shelf Agreement. The principal change effected by Amendment No. 2 was an extension of the Issuance Period for Shelf Notes under the Shelf Agreement. A copy of the full terms and conditions of Amendment No. 2 are incorporated by reference in Item 15 to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on July 26, 2012. On June 30, 2015 we entered into Amendment No. 3 to our Private Shelf Agreement ("Amendment No. 3"), which amends the Shelf Agreement by and among the Company, Prudential and Prudential affiliates from time to time party thereto, as amended by Amendment No. 1 and Amendment No. 2. Amendment No. 3 principally provided the following changes to the Shelf Agreement: • extended the the Issuance Period to June 30, 2018 from July 24, 2015 ; • changed the covenant regarding our indebtedness to EBITDA ratio at the end of each quarter to not greater than 3.25 to 1 . The previous covenant required a ratio of not greater than 3.00 to 1 ; • added the covenant restricting us from paying any dividends or repurchasing stock, if, after giving such effect to such payments, our leverage ratio is greater than 3.25 to 1 ; and • changed the covenant restricting us from making acquisitions, if, after giving pro-forma effect to such acquisitions, our leverage ratio is greater than 3.00 to 1 , in such case limiting acquisitions to $25,000 . The previous covenant limiting our ability to make acquisitions under Amendment No. 1 was 2.75 to 1 . A copy of the full terms and conditions of Amendment No. 3 are incorporated by reference in Item 15 to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on July 7, 2015. As of December 31, 2015 , there were $14,571 in outstanding borrowings under this facility, consisting of the $6,000 Series A notes issued in March 2011 with a fixed interest rate of 4.00% and a term of seven years , with remaining serial maturities 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 term of 10 years , with remaining serial maturities from 2016 to 2021 . The first payment of $2,000 on Series A notes was made during the first quarter of 2014. 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 this Shelf Agreement as of December 31, 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 $2,173 . There was no balance outstanding on this facility as of December 31, 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 . During the first quarter of 2014, we repaid previous borrowings under this facility amounting to $1,500 and, as of December 31, 2015 , there were no outstanding borrowings on this facility. Collateralized Borrowings Collateralized borrowings represent deferred sales proceeds on certain leasing transactions with third-party leasing companies. These transactions are accounted for as borrowings, with the related assets capitalized as property, plant and equipment and depreciated straight-line over the lease term. Capital Lease Obligations Capital lease obligations outstanding are primarily related to sale-leaseback transactions with third-party leasing companies whereby we sell our manufactured equipment to the leasing company and lease it back. The equipment covered by these leases is rented to our customers over the lease term. The aggregate maturities of our outstanding debt, including capital lease obligations as of December 31, 2015 , are as follows: 2016 $ 4,097 2017 3,958 2018 3,807 2019 1,704 2020 11,646 Thereafter 1,523 Total minimum obligations $ 26,735 Less: amount representing interest (2,082 ) Total $ 24,653 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other Current Liabilities as of December 31, consisted of the following: 2015 2014 Other Current Liabilities: Taxes, other than income taxes $ 5,030 $ 7,052 Warranty 10,093 9,686 Deferred revenue 2,512 2,368 Rebates 10,399 11,503 Freight 6,461 5,006 Restructuring 1,927 — Miscellaneous accrued expenses 4,230 6,581 Other 2,491 3,312 Less: Other Current Liabilities held for sale (116 ) — Total Other Current Liabilities $ 43,027 $ 45,508 The changes in warranty reserves for the three years ended December 31 were as follows: 2015 2014 2013 Beginning balance $ 9,686 $ 9,663 $ 9,357 Product warranty provision 11,719 10,605 10,649 Foreign currency (207 ) (215 ) (48 ) Claims paid (11,105 ) (10,367 ) (10,295 ) Ending balance $ 10,093 $ 9,686 $ 9,663 |
Derivatives (Notes)
Derivatives (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging | Derivatives Hedge Accounting and Hedging Programs In 2015, we expanded our foreign currency hedging programs to include foreign exchange purchased options and forward contracts to hedge our foreign currency denominated revenue. We recognize all derivative instruments as either assets or liabilities in our Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. We evaluate hedge effectiveness on our hedges that are designated and qualify for hedge accounting at the inception of the hedge prospectively, as well as retrospectively, and record any ineffective portion of the hedging instruments in Net Foreign Currency Transaction Losses on our Consolidated Statements of Earnings. The time value of purchased contracts is recorded in Net Foreign Currency Transaction Losses in our Consolidated Statements of Earnings. Our hedging policy establishes maximum limits for each counterparty to mitigate any concentration of risk. Balance Sheet Hedging - Hedges of Foreign Currency Assets and Liabilities We hedge our net recognized foreign currency denominated assets and liabilities with foreign exchange forward contracts to reduce the risk that the value of these assets and liabilities will be adversely affected by changes in exchange rates. These contracts hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value as either assets or liabilities on the Consolidated Balance Sheets with changes in the fair value recorded to Net Foreign Currency Transaction Losses in our Consolidated Statements of Earnings. These contracts do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged. At December 31, 2015 and December 31, 2014 , the notional amounts of foreign currency forward exchange contracts outstanding not designated as hedging instruments were $45,851 and $34,631 , respectively. Cash Flow Hedging - Hedges of Forecasted Foreign Currency Transactions In countries outside the U.S., we transact business in U.S. dollars and in various other currencies. We may use foreign exchange option contracts or forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities of up to 15 months . We enter into these foreign exchange contracts to hedge a portion of our forecasted foreign currency denominated revenue in the normal course of business, and accordingly, they are not speculative in nature. The notional amount of outstanding foreign currency forward contracts designated as cash flow hedges was $2,486 as of December 31, 2015 . The notional amount of outstanding foreign currency option contracts designated as cash flow hedges was $11,271 as of December 31, 2015 . There were no outstanding foreign currency forward or option contracts designated as cash flow hedges as of December 31, 2014 . To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. We record changes in the fair value of these cash flow hedges in Accumulated Other Comprehensive Loss in our Consolidated Balance Sheets, until the forecasted transaction occurs. When the forecasted transaction occurs, we reclassify the related gain or loss on the cash flow hedge to Net Sales. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from Accumulated Other Comprehensive Loss to Net Foreign Currency Transaction Losses in our Consolidated Statements of Earnings at that time. If we do not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in Net Foreign Currency Transaction Losses in our Consolidated Statements of Earnings. The fair value of derivative instruments on our Consolidated Balance Sheets as of December 31 , consisted of the following: 2015 2014 Fair Value Asset Derivatives Fair Value Liability Derivatives Fair Value Asset Derivatives Fair Value Liability Derivatives Derivatives designated as hedging instruments: Foreign currency option contracts (1)(2) $ 387 $ — $ — $ — Foreign currency forward contracts (1) 113 — — — Derivatives not designated as hedging instruments: Foreign currency forward contracts (1) $ 171 $ 7 $ 130 $ — (1) Contracts that mature within the next twelve months are included in Other Current Assets and Other Current Liabilities for asset derivatives and liabilities derivatives, respectively, on our Consolidated Balance Sheets. (2) Contracts with a maturity greater than twelve months are included in Other Assets and Other Liabilities for asset derivatives and liability derivatives, respectively, on our Consolidated Balance Sheets. As of December 31, 2015 , we anticipate reclassifying approximately $169 of gains from Accumulated Other Comprehensive Loss to n et earnings during the next twelve months. The effect of foreign currency derivative instruments designated as cash flow hedges and foreign currency derivative instruments not designated as hedges in our Consolidated Statements of Earnings for the three years ended December 31 were as follows: 2015 2014 2013 Foreign Currency Option Contracts Foreign Currency Forward Contracts Foreign Currency Option Contracts Foreign Currency Forward Contracts Foreign Currency Option Contracts Foreign Currency Forward Contracts Derivatives in cash flow hedging relationships: Net gain recognized in Other Comprehensive Loss, net of tax (1) $ 31 $ 77 $ — $ — $ — $ — Net gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax (2) — 5 — — — — Net gain (loss) recognized in earnings (3) 6 (2 ) — — — — Derivatives not designated as hedging instruments: Net gain recognized in earnings (4) $ — $ 4,047 $ — $ 2,384 $ — $ 1,068 (1) Net change in the fair value of the effective portion classified in Other Comprehensive Loss. (2) Effective portion classified as Net Sales. (3) Ineffective portion and amount excluded from effectiveness testing classified in Net Foreign Currency Transaction Losses. (4) Classified in Net Foreign Currency Transaction Losses. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 December 31, 2015 is as follows: Fair Value Level 1 Level 2 Level 3 Assets: Foreign currency forward exchange contracts $ 284 $ — $ 284 $ — Foreign currency option contracts 387 — 387 — Total Assets $ 671 $ — $ 671 $ — Liabilities: Foreign currency forward exchange contracts $ 7 $ — $ 7 $ — Total Liabilities $ 7 $ — $ 7 $ — Our foreign currency forward exchange and option contracts are valued using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present value amount. Further details regarding our foreign currency forward exchange and option contracts are discussed in Note 11. The carrying amounts reported in the Consolidated Balance Sheets for Cash and Cash Equivalents, Restricted Cash, Receivables, Other Current Assets, Assets Held for Sale, Accounts Payable, Other Current Liabilities and Liabilities Held for Sale approximate fair value due to their short-term nature. The fair market 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. From time to time, we measure certain assets at fair value on a non-recurring basis, including evaluation of long-lived assets, goodwill and other intangible assets for impairment using company-specific assumptions which would fall within Level 3 of the fair value hierarchy. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Substantially all U.S. employees are covered by various retirement benefit plans, including defined benefit pension plans, postretirement medical plans and defined contribution savings plans. Retirement benefits for eligible employees in foreign locations are funded principally through defined benefit plans, annuity or government programs. The total cost of benefits for our plans was $12,428 , $11,334 and $11,766 in 2015 , 2014 and 2013 , respectively. We have a qualified, funded defined benefit retirement plan (the “U.S. Pension Plan”) covering certain current and retired employees in the U.S. Pension Plan benefits are based on the years of service and compensation during the highest five consecutive years of service in the final ten years of employment. No new participants have entered the plan since 2000. During 2015, the plan was amended to freeze benefits for all participants effective January 31, 2017. The plan has 361 participants including 69 active employees as of December 31, 2015 . We have a U.S. postretirement medical benefit plan (the “U.S. Retiree Plan”) to provide certain healthcare benefits for U.S. employees hired before January 1, 1999. Eligibility for those benefits is based upon a combination of years of service with us and age upon retirement. Our defined contribution savings plan (“401(k)”) covers substantially all U.S. employees. Under this plan, we match up to 3% of the employee’s annual compensation in cash to be invested per their election. We also make a profit sharing contribution to the 401(k) plan for employees with more than one year of service in accordance with our Profit Sharing Plan. This contribution is based upon our financial performance and can be funded in the form of Tennant stock, cash or a combination of both. Expenses for the 401(k) plan were $8,098 , $7,475 and $6,423 during 2015 , 2014 and 2013 , respectively. We have a U.S. nonqualified supplemental benefit plan (the “U.S. Nonqualified Plan”) to provide additional retirement benefits for certain employees whose benefits under our 401(k) plan or U.S. Pension Plan are limited by either the Employee Retirement Income Security Act or the Internal Revenue Code. We also have defined pension benefit plans in the United Kingdom and Germany (the “U.K. Pension Plan” and the “German Pension Plan”). The U.K. Pension Plan and German Pension Plan cover certain current and retired employees and both plans are closed to new participants. We expect to contribute approximately $243 to our U.S. Nonqualified Plan, $835 to our U.S. Retiree Plan, $308 to our U.K. Pension Plan and $33 to our German Pension Plan in 2016 . No contributions to the U.S. Pension Plan are expected to be required during 2016 . There were no contributions made to the U.S. Pension Plan during 2015. Weighted-average asset allocations by asset category of the U.S. and U.K. Pension Plans as of December 31, 2015 are as follows: Asset Category Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and Cash Equivalents $ 954 $ 954 $ — $ — Mutual Funds: U.S. Large-Cap 9,194 9,194 — — U.S. Small-Cap 2,258 2,258 — — International Equities 2,206 2,206 — — Fixed-Income Domestic 32,589 32,589 — — Investment Account held by Pension Plan (1) 10,691 — — 10,691 Total $ 57,892 $ 47,201 $ — $ 10,691 (1) This category is comprised of investments in insurance contracts. Weighted-average asset allocations by asset category of the U.S. and U.K. Pension Plans as of December 31, 2014 are as follows: Asset Category Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and Cash Equivalents $ 486 $ 486 $ — $ — Mutual Funds: U.S. Large-Cap 12,955 12,955 — — U.S. Small-Cap 4,004 4,004 — — International Equities 3,788 3,788 — — Fixed-Income Domestic 30,652 30,652 — — Investment Account held by Pension Plan (1) 9,989 — — 9,989 Total $ 61,874 $ 51,885 $ — $ 9,989 (1) This category is comprised of investments in insurance contracts. Estimates of the fair value of U.S. and U.K Pension Plan assets are based on the framework established in the accounting guidance for fair value measurements. A brief description of the three levels can be found in Note 12. Equity Securities and Mutual Funds traded in active markets are classified as Level 1. The Investment Account held by the U.K. Pension Plan invests in insurance contracts for purposes of funding the U.K. Pension Plan and is classified as Level 3. The fair value of the Investment Account is the cash surrender values as determined by the provider which are the amounts the plan would receive if the contracts were cashed out at year end. The underlying assets held by these contracts are primarily invested in assets traded in active markets. A reconciliation of the beginning and ending balances of the Level 3 investments of our U.K. Pension Plan during the years ended are as follows: 2015 2014 Fair value at beginning of year $ 9,989 $ 9,733 Purchases, sales, issuances and settlements, net 52 (96 ) Net gain 1,232 974 Foreign currency (582 ) (622 ) Fair value at end of year $ 10,691 $ 9,989 The primary objective of our U.S. and U.K. Pension Plans is to meet retirement income commitments to plan participants at a reasonable cost to us and to maintain a sound actuarially funded status. This objective is accomplished through growth of capital and safety of funds invested. The pension plans' assets are invested in securities to achieve growth of capital over inflation through appreciation and accumulation and reinvestment of dividend and interest income. Investments are diversified to control risk. The target allocation for the U.S. Pension Plan is 60% debt securities and 40% equity. Equity securities within the U.S. Pension Plan do not include any direct investments in Tennant Company Common Stock. The U.K. Pension Plan is invested in insurance contracts with underlying investments primarily in equity and fixed income securities. Our German Pension Plan is unfunded, which is customary in that country. Weighted-average assumptions used to determine benefit obligations as of December 31 are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2015 2014 2015 2014 2015 2014 Discount rate 4.08 % 3.76 % 3.59 % 3.38 % 3.70 % 3.39 % Rate of compensation increase 3.00 % 3.00 % 3.50 % 3.50 % — — Weighted-average assumptions used to determine net periodic benefit costs as of December 31 are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 3.76 % 4.63 % 3.79 % 3.38 % 4.33 % 4.41 % 3.39 % 4.10 % 3.27 % Expected long-term rate of return on plan assets 5.20 % 5.70 % 6.50 % 4.40 % 5.60 % 4.70 % — — — Rate of compensation increase 3.00 % 3.00 % 3.00 % 3.50 % 4.50 % 4.50 % — — — The discount rate is used to discount future benefit obligations back to today’s dollars. Our discount rates were determined based on high-quality fixed income investments. The resulting discount rates are consistent with the duration of plan liabilities. The Citigroup Above Median Spot Rate is used in determining the discount rate for the U.S. Plans. The expected return on assets assumption on the investment portfolios for the pension plans is based on the long-term expected returns for the investment mix of assets currently in the portfolio. Management uses historic return trends of the asset portfolio combined with recent market conditions to estimate the future rate of return. The accumulated benefit obligations as of December 31, for all defined benefit plans are as follows: 2015 2014 U.S. Pension Plans $ 41,537 $ 45,695 U.K. Pension Plan 9,720 10,658 German Pension Plan 870 1,027 Information for our plans with an accumulated benefit obligation in excess of plan assets as of December 31 is as follows: 2015 2014 Accumulated benefit obligation $ 2,616 $ 13,872 Fair value of plan assets — 9,989 As of December 31, 2015 , the U.S. Nonqualified and the German Pension Plans had an accumulated benefit obligation in excess of plan assets. As of December 31, 2014 , the U.S. Nonqualified, the U.K. Pension and the German Pension Plans had an accumulated benefit obligation in excess of plan assets. Information for our plans with a projected benefit obligation in excess of plan assets as of December 31 is as follows: 2015 2014 Projected benefit obligation $ 2,616 $ 14,207 Fair value of plan assets — 9,989 As of December 31, 2015 , the U.S. Nonqualified and the German Pension Plans had a projected benefit obligation in excess of plan assets. As of December 31, 2014 , the U.S. Nonqualified, the U.K. Pension and the German Pension Plans had a projected benefit obligation in excess of plan assets. Assumed healthcare cost trend rates as of December 31 are as follows: 2015 2014 Healthcare cost trend rate assumption for the next year 6.76 % 7.50 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2031 2031 Assumed healthcare cost trend rates have a significant effect on the amounts reported for healthcare plans. To illustrate, a one-percentage-point change in assumed healthcare cost trends would have the following effects: 1-Percentage- Point Decrease 1-Percentage- Point Increase Effect on total of service and interest cost components $ (37 ) $ 42 Effect on postretirement benefit obligation $ (803 ) $ 910 Summaries related to changes in benefit obligations and plan assets and to the funded status of our defined benefit and postretirement medical benefit plans are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2015 2014 2015 2014 2015 2014 Change in benefit obligation: Benefit obligation at beginning of year $ 47,027 $ 43,653 $ 12,014 $ 11,238 $ 13,292 $ 13,186 Service cost 480 493 153 155 96 128 Interest cost 1,711 1,964 396 476 393 497 Plan participants' contributions — — 20 21 — — Actuarial (gain) loss (3,352 ) 5,907 (718 ) 1,421 (1,618 ) 591 Foreign exchange — — (681 ) (815 ) — — Benefits paid (1,944 ) (1,706 ) (301 ) (482 ) (1,019 ) (1,110 ) Settlement (2,148 ) (3,284 ) — — — — Benefit obligation at end of year $ 41,774 $ 47,027 $ 10,883 $ 12,014 $ 11,144 $ 13,292 Change in fair value of plan assets and net accrued liabilities: Fair value of plan assets at beginning of year $ 51,885 $ 52,397 $ 9,989 $ 9,733 $ — $ — Actual return on plan assets (933 ) 4,236 1,232 974 — — Employer contributions 341 242 333 365 1,019 1,110 Plan participants' contributions — — 20 21 — — Foreign exchange — — (582 ) (622 ) — — Benefits paid (1,944 ) (1,706 ) (301 ) (482 ) (1,019 ) (1,110 ) Settlement (2,148 ) (3,284 ) — — — — Fair value of plan assets at end of year 47,201 51,885 10,691 9,989 — — Funded status at end of year $ 5,427 $ 4,858 $ (192 ) $ (2,025 ) $ (11,144 ) $ (13,292 ) Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent Other Assets $ 7,173 $ 7,051 $ 678 $ — $ — $ — Current Liabilities (243 ) (185 ) (33 ) (37 ) (835 ) (947 ) Long-Term Liabilities (1,503 ) (2,008 ) (837 ) (1,988 ) (10,309 ) (12,345 ) Net accrued asset (liability) $ 5,427 $ 4,858 $ (192 ) $ (2,025 ) $ (11,144 ) $ (13,292 ) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Prior service cost $ (42 ) $ (109 ) $ — $ — $ — $ — Net actuarial loss (5,127 ) (5,993 ) (111 ) (1,682 ) (560 ) (2,178 ) Accumulated Other Comprehensive Loss $ (5,169 ) $ (6,102 ) $ (111 ) $ (1,682 ) $ (560 ) $ (2,178 ) The components of the net periodic benefit cost for the three years ended December 31 were as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $ 480 $ 493 $ 690 $ 153 $ 155 $ 142 $ 96 $ 128 $ 154 Interest cost 1,711 1,964 1,803 396 476 422 393 497 443 Expected return on plan assets (2,613 ) (2,683 ) (2,911 ) (433 ) (539 ) (402 ) — — — Amortization of net actuarial loss 835 147 1,751 54 9 9 — — 201 Amortization of prior service cost (credit) 42 43 73 — — — — (6 ) (103 ) Foreign currency — — — (35 ) (61 ) 21 — — — Curtailment charge 25 — — — — — — — — Settlement charge 225 356 — — — — — — — Net periodic benefit cost $ 705 $ 320 $ 1,406 $ 135 $ 40 $ 192 $ 489 $ 619 $ 695 The changes in Accumulated Other Comprehensive Loss for the three years ended December 31 were as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 Net actuarial loss (gain) $ 195 $ 4,353 $ (9,817 ) $ (1,517 ) $ 987 $ 467 $ (1,618 ) $ 591 $ (1,001 ) Amortization of prior service (cost) credit (67 ) (43 ) (73 ) — — — — 6 103 Amortization of net actuarial loss (1,060 ) (503 ) (1,751 ) (54 ) (9 ) (9 ) — — (201 ) Total recognized in other comprehensive (income) loss $ (932 ) $ 3,807 $ (11,641 ) $ (1,571 ) $ 978 $ 458 $ (1,618 ) $ 597 $ (1,099 ) Total recognized in net periodic (cost) benefit and other comprehensive (income) loss $ (227 ) $ 4,127 $ (10,235 ) $ (1,436 ) $ 1,018 $ 650 $ (1,129 ) $ 1,216 $ (404 ) The following benefit payments, which reflect expected future service, are expected to be paid for our U.S. and Non-U.S. plans: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2016 $ 2,296 $ 225 $ 835 2017 2,450 230 890 2018 2,594 238 914 2019 2,573 244 959 2020 2,637 251 1,010 2021 to 2025 13,582 1,377 4,574 Total $ 26,132 $ 2,565 $ 9,182 The following amounts are included in Accumulated Other Comprehensive Loss as of December 31, 2015 and are expected to be recognized as components of net periodic benefit cost during 2016 : Pension Benefits Postretirement Medical Benefits Net actuarial loss $ 64 $ 173 Prior service cost 42 — |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Authorized Shares We are authorized to issue an aggregate of 61,000,000 shares; 60,000,000 are designated as Common Stock, having a par value of $0.375 per share, and 1,000,000 are designated as Preferred Stock, having a par value of $0.02 per share. The Board of Directors is authorized to establish one or more series of preferred stock, setting forth the designation of each such series, and fixing the relative rights and preferences of each such series. Purchase Rights On November 10, 2006, the Board of Directors approved a Rights Agreement and declared a dividend of one preferred share purchase right for each outstanding share of Common Stock. Each right entitles the registered holder to purchase from us one one-hundredth of a Series A Junior Participating Preferred Share of the par value of $0.02 per share at a price of $100 per one hundredth of a Preferred Share, subject to adjustment. The rights are not exercisable or transferable apart from the Common Stock until the earlier of: (i) the close of business on the fifteenth day following a public announcement that a person or group of affiliated or associated persons has become an “Acquiring Person” (i.e., has become, subject to certain exceptions, including for stock ownership by employee benefit plans, the beneficial owner of 20% or more of the outstanding Common Stock), or (ii) the close of business on the fifteenth day following the first public announcement of a tender offer or exchange offer the consummation of which would result in a person or group of affiliated or associated persons becoming, subject to certain exceptions, the beneficial owner of 20% or more of the outstanding Common Stock (or such later date as may be determined by our Board of Directors prior to a person or group of affiliated or associated persons becoming an Acquiring Person). After a person or group becomes an Acquiring Person, each holder of a Right (other than an Acquiring Person) will be able to exercise the right at the current exercise price of the Right and receive the number of shares of Common Stock having a market value of two times the exercise price of the right, or, depending upon the circumstances in which the rights became exercisable, the number of common shares of the Acquiring Person having a market value of two times the exercise price of the right. At no time do the rights have any voting power. We may redeem the rights for $0.001 per right at any time prior to a person or group acquiring 20% or more of the Common Stock. Under certain circumstances, the Board of Directors may exchange the rights for our Common Stock or reduce the 20% thresholds to not less than 10% . The rights will expire on December 26, 2016 , unless extended or earlier redeemed or exchanged by us. Accumulated Other Comprehensive Loss Components of Accumulated Other Comprehensive Loss, net of tax, within the Consolidated Balance Sheets and Statements of Shareholders' Equity as of December 31 are as follows: 2015 2014 2013 Foreign currency translation adjustments $ (44,585 ) $ (32,090 ) $ (21,991 ) Pension and retiree medical benefits (3,647 ) (6,503 ) (2,980 ) Cash flow hedge 103 — — Total Accumulated Other Comprehensive Loss $ (48,129 ) $ (38,593 ) $ (24,971 ) The changes in components of Accumulated Other Comprehensive Loss, net of tax, are as follows: Foreign Currency Translation Adjustments Pension and Postretirement Benefits Cash Flow Hedge Total December 31, 2014 $ (32,090 ) $ (6,503 ) $ — $ (38,593 ) Other comprehensive (loss) income before reclassifications (12,495 ) 2,153 108 (10,234 ) Amounts reclassified from Accumulated Other Comprehensive Loss — 703 (5 ) 698 Net current period other comprehensive (loss) income (12,495 ) 2,856 103 (9,536 ) December 31, 2015 $ (44,585 ) $ (3,647 ) $ 103 $ (48,129 ) Accumulated Other Comprehensive Loss associated with pension and postretirement benefits and cash flow hedges are included in Notes 13 and 11, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We lease office and warehouse facilities, vehicles and office equipment under operating lease agreements, which include both monthly and longer-term arrangements. Leases with initial terms of one year or more expire at various dates after 2025 and generally provide for extension options. Rent expense under the leasing agreements (exclusive of real estate taxes, insurance and other expenses payable under the leases) amounted to $17,804 , $18,446 and $17,873 in 2015 , 2014 and 2013 , respectively. The minimum rentals for aggregate lease commitments as of December 31, 2015 , were as follows: 2016 $ 7,707 2017 5,421 2018 3,856 2019 2,607 2020 1,663 Thereafter 2,673 Total $ 23,927 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. The aggregate residual value at lease expiration of those leases is $11,674 , of which we have guaranteed $9,439 . As of December 31, 2015 , we have recorded a liability for the estimated end-of-term loss related to this residual value guarantee of $290 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. During the third quarter of 2015, we renewed a lease for our facility in the United Kingdom. This lease has a term of ten years with a total commitment of $2,776 . During the fourth quarter of 2015, we entered into a lease agreement for the purposes of relocating our Australian headquarters. This lease has a term of seven years with a total commitment of $3,722 . During the fourth quarter of 2015, we entered into an agreement with a supplier, commencing April 1, 2016 , with a total commitment of $1,792 extending through December 31, 2016 . In the ordinary course of business, we may become liable with respect to pending and threatened litigation, tax, environmental and other matters. While the ultimate results of current claims, investigations and lawsuits involving us are unknown at this time, we do not expect that these matters will have a material adverse effect on our consolidated financial position or results of operations. Legal costs associated with such matters are expensed as incurred. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (Loss) from continuing operations for the three years ended December 31 was as follows: 2015 2014 2013 U.S. operations $ 51,189 $ 52,315 $ 54,702 Foreign operations (765 ) 17,223 5,176 Total $ 50,424 $ 69,538 $ 59,878 Income tax expense (benefit) for the three years ended December 31 was as follows: 2015 2014 2013 Current: Federal $ 15,117 $ 11,903 $ 13,551 Foreign 3,992 3,373 3,567 State 1,685 1,543 1,136 $ 20,794 $ 16,819 $ 18,254 Deferred: Federal $ (481 ) $ 2,650 $ 1,856 Foreign (1,888 ) (524 ) (424 ) State (89 ) (58 ) (39 ) $ (2,458 ) $ 2,068 $ 1,393 Total: Federal $ 14,636 $ 14,553 $ 15,407 Foreign 2,104 2,849 3,143 State 1,596 1,485 1,097 Total Income Tax Expense $ 18,336 $ 18,887 $ 19,647 U.S. income taxes have not been provided on approximately $30,786 of undistributed earnings of non-U.S. subsidiaries. We do not have any plans to repatriate the undistributed earnings. Any repatriation from foreign subsidiaries that would result in incremental U.S. taxation is not being considered. It is management’s belief that reinvesting these earnings outside the U.S. is the most efficient use of capital. We have Dutch and German tax loss carryforwards of approximately $9,889 and $11,834 , respectively. If unutilized, the Dutch tax loss carryforward will expire after 9 years . The German tax loss carryforward has no expiration date. Because of the uncertainty regarding realization of the Dutch tax loss carryforward, a valuation allowance was established. This valuation allowance increased in 2015 due to results of operations. We have Dutch foreign tax credit carryforwards of $1,102 . Because of the uncertainty regarding utilization of the Dutch foreign tax credit carryforward, a valuation allowance was established. A valuation allowance for the remaining deferred tax assets is not required since it is more likely than not that they will be realized through carryback to taxable income in prior years, future reversals of existing taxable temporary differences and future taxable income. Our effective income tax rate varied from the U.S. federal statutory tax rate for the three years ended December 31 as follows: 2015 2014 2013 Tax at statutory rate 35.0 % 35.0 % 35.0 % Increases (decreases) in the tax rate from: State and local taxes, net of federal benefit 2.2 1.7 1.7 Effect of foreign operations (5.1 ) (4.6 ) (3.3 ) Impairment of Long-Lived Assets 7.0 — — Effect of changes in valuation allowances 1.5 (0.9 ) 3.7 Domestic production activities deduction (2.7 ) (1.6 ) (1.6 ) Other, net (1.5 ) (2.4 ) (2.7 ) Effective income tax rate 36.4 % 27.2 % 32.8 % Deferred tax assets and liabilities were comprised of the following as of December 31: 2015 2014 Deferred Tax Assets: Employee wages and benefits, principally due to accruals for financial reporting purposes $ 16,395 $ 16,696 Warranty reserves accrued for financial reporting purposes 3,101 2,895 Receivables, principally due to allowance for doubtful accounts and tax accounting method for equipment rentals 1,446 1,549 Tax loss carryforwards 5,834 6,845 Tax credit carryforwards 1,102 1,043 Other 603 1,246 Gross Deferred Tax Assets $ 28,481 $ 30,274 Less: valuation allowance (5,884 ) (5,699 ) Total Net Deferred Tax Assets $ 22,597 $ 24,575 Deferred Tax Liabilities: Inventories, principally due to changes in inventory reserves $ 617 $ 305 Property, Plant and Equipment, principally due to differences in depreciation and related gains 6,619 6,745 Goodwill and Intangible Assets 3,315 5,611 Total Deferred Tax Liabilities $ 10,551 $ 12,661 Net Deferred Tax Assets $ 12,046 $ 11,914 The valuation allowance at December 31, 2015 principally applies to Dutch tax loss and tax credit carryforwards that, in the opinion of management, are more likely than not to expire unutilized. However, to the extent that tax benefits related to these carryforwards are realized in the future, the reduction in the valuation allowance will reduce income tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2015 2014 Balance at January 1, $ 3,029 $ 3,660 Increases as a result of tax positions taken during the current year 532 610 Decreases relating to settlement with tax authorities (72 ) (6 ) Reductions as a result of a lapse of the applicable statute of limitations (760 ) (1,033 ) Decreases as a result of foreign currency fluctuations (403 ) (202 ) Balance at December 31, $ 2,326 $ 3,029 Included in the balance of unrecognized tax benefits at December 31, 2015 and 2014 are potential benefits of $1,992 and $2,684 , respectively, that if recognized, would affect the effective tax rate from continuing operations. We recognize potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. In addition to the liability of $2,326 and $3,029 for unrecognized tax benefits as of December 31, 2015 and 2014 , there was approximately $504 and $557 , respectively, for accrued interest and penalties. To the extent interest and penalties are not assessed with respect to uncertain tax positions, the amounts accrued will be revised and reflected as an adjustment to income tax expense. 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 2012 and, with limited exceptions, state and foreign income tax examinations for taxable years before 2007 . We are currently undergoing income tax examinations in various state and foreign jurisdictions covering 2007 to 2014 . Although the final outcome of these examinations cannot be currently determined, we believe that we have adequate reserves with respect to these examinations. We do not anticipate that total unrecognized tax benefits will change significantly within the next 12 months. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | Share-Based Compensation We have four plans under which we have awarded share-based compensation grants: The 1999 Amended and Restated Stock Incentive Plan (“1999 Plan”), which provided for share-based compensation grants to our executives and key employees, the 1997 Non-Employee Directors Option Plan (“1997 Plan”), which provided for stock option grants to our non-employee Directors, the 2007 Stock Incentive Plan (“2007 Plan”) and the Amended and Restated 2010 Stock Incentive Plan, as Amended (“2010 Plan”), which were adopted as a continuing step toward aggregating our equity compensation programs to reduce the complexity of our equity compensation programs. The 1997 Plan was terminated in 2006 and all remaining shares were transferred to the 1999 Plan as approved by the shareholders in 2006. Awards granted under the 1997 Plan prior to 2006 that remain outstanding continue to be governed by the respective plan under which the grant was made. Upon approval of the 1999 Plan in 2006, we ceased making grants of future awards under these plans and subsequent grants of future awards were made from the 1999 Plan and governed by its terms. The 2007 Plan terminated our rights to grant awards under the 1999 Plan. Awards previously granted under the 1999 Plan remain outstanding and continue to be governed by the terms of that plan. The 2010 Plan, originally approved by our shareholders on April 28, 2010 and amended and restated by our shareholders on April 25, 2012, terminated our rights to grant awards under the 2007 Plan; however, any awards granted under the 2007 or 2010 Plans that do not result in the issuance of shares of Common Stock may again be used for an award under the 2010 Plan. The 2010 Plan was amended and restated by our shareholders on April 24, 2013, increasing the number of shares available under the amended 2010 Plan from 1,500,000 shares to 2,600,000 shares. As of December 31, 2015 , there were 262,498 shares reserved for issuance under the 1997 Plan, the 1999 Plan and the 2007 Plan for outstanding compensation awards and 1,078,271 shares were available for issuance under the 2010 Plan for current and future equity awards. The Compensation Committee of the Board of Directors determines the number of shares awarded and the grant date, subject to the terms of our equity award policy. We recognized total Share-Based Compensation Expense of $8,222 , $7,314 and $6,116 , respectively, during the years ended 2015, 2014 and 2013. The total excess tax benefit recognized for share-based compensation arrangements during the years ended 2015, 2014 and 2013 was $859 , $1,793 and $5,178 , respectively. Stock Option Awards We determined the fair value of our stock option awards using the Black-Scholes valuation model that uses the assumptions noted in the table below. The expected life selected for stock options granted during the year represents the period of time that the stock options are expected to be outstanding based on historical data of stock option holder exercise and termination behavior of similar grants. The risk-free interest rate for periods within the contractual life of the stock option is based on the U.S. Treasury rate over the expected life at the time of grant. Expected volatilities are based upon historical volatility of our stock over a period equal to the expected life of each stock option grant. Dividend yield is estimated over the expected life based on our dividend policy and historical dividends paid. We use historical data to estimate pre-vesting forfeiture rates and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The following table illustrates the valuation assumptions used for the 2015, 2014 and 2013 grants: 2015 2014 2013 Expected volatility 32 - 36% 47 - 50% 51% Weighted-average expected volatility 36% 50% 51% Expected dividend yield 1.1 - 1.2% 1.1 - 1.3% 1.6% Weighted-average expected dividend yield 1.2% 1.3% 1.6% Expected term, in years 5 6 6 Risk-free interest rate 1.4 - 1.6% 1.8 - 2.0% 0.9 - 1.1% Employee stock option awards prior to 2005 included a reload feature for options granted to key employees. This feature allowed employees to exercise options through a stock-for-stock exercise using mature shares, and employees were granted a new stock option (reload option) equal to the number of shares of Common Stock used to satisfy both the exercise price of the option and the minimum tax withholding requirements. The reload options granted had an exercise price equal to the fair market value of the Common Stock on the grant date. Stock options granted in conjunction with reloads vested immediately and had a term equal to the remaining life of the initial grant. Compensation expense was fully recognized for reload stock options as of the reload date. The final reload options outstanding were exercised in January 2014. Beginning in 2004, new stock option awards granted vest one-third each year over a three year period and have a ten year contractual term. These grants do not contain a reload feature. Compensation expense equal to the grant date fair value is recognized for these awards over the vesting period. Stock options granted to employees are subject to accelerated expensing if the option holder meets the retirements definition set forth in the 2010 Plan. In addition to stock options, we also occasionally grant cash-settled stock appreciation rights (“SARs”) to employees in certain foreign locations. There were no outstanding SARs as of December 31, 2015 and no SARs were granted during 2015 , 2014 or 2013 . The following table summarizes the activity during the year ended December 31, 2015 for stock option awards: Shares Weighted-Average Exercise Price Outstanding at beginning of year 908,030 $ 34.21 Granted 177,020 66.49 Exercised (54,060 ) 31.03 Forfeited (10,814 ) 59.22 Expired (1,218 ) 60.67 Outstanding at end of year 1,018,958 $ 39.69 Exercisable at end of year 756,470 $ 31.68 The weighted-average grant date fair value of stock options granted during the years ended December 31, 2015 , 2014 and 2013 was $20.08 , $26.93 and $19.62 , respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2015 , 2014 and 2013 was $1,702 , $2,972 and $15,641 , respectively. The aggregate intrinsic value of options outstanding and exercisable at December 31, 2015 was $19,260 and $18,926 , respectively. The weighted-average remaining contractual life for options outstanding and exercisable as of December 31, 2015 , was 6 years and 5 years, respectively. As of December 31, 2015 , there was unrecognized compensation cost for nonvested options of $2,187 which is expected to be recognized over a weighted-average period of 1.2 years. Restricted Share Awards Restricted share awards for employees generally have a three year vesting period from the effective date of the grant. Restricted share awards to non-employee directors vest upon a change of control or upon termination of service as a director occurring at least six months after grant date of the award so long as termination is for one of the following reasons: death; disability; retirement in accordance with Tennant policy (e.g., age, term limits, etc.); resignation at request of Board (other than for gross misconduct); resignation following at least six months’ advance notice; failure to be renominated (unless due to unwillingness to serve) or reelected by shareholders; or removal by shareholders. We use the closing share price the day before the grant date to determine the fair value our restricted share awards. Expenses on these awards are recognized over the vesting period. The following table summarizes the activity during the year ended December 31, 2015 for nonvested restricted share awards: Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of year 144,475 $ 40.51 Granted 23,048 66.33 Vested (24,245 ) 43.47 Forfeited (4,459 ) 55.96 Nonvested at end of year 138,819 $ 43.83 The total fair value of shares vested during the years ended December 31, 2015 , 2014 and 2013 was $1,054 , $827 and $643 , respectively. As of December 31, 2015 , there was $1,568 of total unrecognized compensation cost related to nonvested shares which is expected to be recognized over a weighted-average period of 1.8 years. Performance Share Awards We grant performance share awards to key employees as a part of our long-term management compensation program. These awards are earned based upon achievement of certain financial performance targets over a three year period. The number of shares of common stock a participant receives will be increased (up to 200 percent of target levels) or reduced (down to zero ) based on the level of achievement of the financial performance targets. We use the closing share price the day before the grant date to determine the fair value of our performance share awards. Expenses on these awards are recognized over a three year performance period. Performance shares are granted in restricted stock units. They are payable in stock and vest solely upon achievement of certain financial performance targets during this three year period. The following table summarizes the activity during the year ended December 31, 2015 for nonvested performance share awards: Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of year 152,555 $ 49.20 Granted 50,010 66.63 Vested (38,902 ) 44.03 Forfeited (22,289 ) 53.75 Nonvested at end of year 141,374 $ 56.07 The total fair value of shares vested during the year ended December 31, 2015 and 2014 was $1,713 and $4,346 , respectively. There were no shares paid out for the year ended December 31, 2013 . As of December 31, 2015 , there was $2,660 of total unrecognized compensation cost related to nonvested shares which is expected to be recognized over a weighted-average period of 1.7 years . Restricted Stock Units We grant restricted stock units to employees, which generally vest within three years from the date of the grant. Vested restricted stock units are paid out in stock. We use the closing share price the day before the grant date to determine the fair value our restricted stock units. Expenses on these awards are recognized over a three year period. The following table summarizes the activity during the year ended December 31, 2015 for nonvested restricted stock units: Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of year 16,549 $ 69.24 Granted 18,061 64.58 Vested (150 ) 65.26 Forfeited (1,814 ) 65.52 Nonvested at end of year 32,646 $ 66.89 The total fair value of shares vested during the year ended December 31, 2015 was $10 . Since 2015 was the first year we paid out on vested restricted stock units, there were no restricted stock units that vested for the years ended December 31, 2014 and 2013 . As of December 31, 2015 , there was $1,078 of total unrecognized compensation cost related to nonvested shares which is expected to be recognized over a weighted-average period of 1.2 years . Share-Based Liabilities As of December 31, 2015 and 2014 , we had $149 and $139 in total share-based liabilities recorded on our Consolidated Balance Sheets, respectively. During the years ended December 31, 2015 , 2014 and 2013 , we paid out $53 , $275 and $3,134 related to 2012, 2011 and 2010 share-based liability awards, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computations of Basic and Diluted Earnings per Share for the years ended December 31 were as follows: 2015 2014 2013 Numerator: Net Earnings $ 32,088 $ 50,651 $ 40,231 Denominator: Basic - Weighted Average Shares Outstanding 18,015,151 18,217,384 18,297,371 Effect of dilutive securities 478,296 523,474 536,082 Diluted - Weighted Average Shares Outstanding 18,493,447 18,740,858 18,833,453 Basic Earnings per Share $ 1.78 $ 2.78 $ 2.20 Diluted Earnings per Share $ 1.74 $ 2.70 $ 2.14 Options to purchase 222,092 , 91,199 and 132,803 shares of Common Stock were outstanding during 2015 , 2014 and 2013 , respectively, but were not included in the computation of diluted earnings per share. These exclusions are made if the exercise prices of these options are greater than the average market price of our Common Stock for the period, if the number of shares we can repurchase under the treasury stock method exceeds the weighted shares outstanding in the options, or if we have a net loss, as the effects are anti-dilutive. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We are organized into four operating segments: North America; Latin America; Europe, Middle East, 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. The following table presents Net Sales by operating segment for the years ended December 31: 2015 2014 2013 Net Sales: Americas $ 591,405 $ 569,004 $ 514,544 Europe, Middle East, Africa 139,834 165,686 157,208 Asia Pacific 80,560 87,293 80,259 Total $ 811,799 $ 821,983 $ 752,011 The following table presents long-lived assets by operating segment as of December 31: 2015 2014 2013 Long-lived assets: Americas $ 110,842 $ 103,958 $ 106,409 Europe, Middle East, Africa 11,100 24,051 28,296 Asia Pacific 4,658 3,669 3,882 Total $ 126,600 $ 131,678 $ 138,587 Accounting policies of the operations in the various operating segments are the same as those described in Note 1. Net Sales are attributed to each operating segment based on the country from which the product is shipped and are net of intercompany sales. Information regarding sales to customers geographically located in the United States is provided in Item 1, Business - Segment and Geographic Area Financial Information. No single customer represents more than 10% of our consolidated Net Sales. Long-lived assets consist of Property, Plant and Equipment, Goodwill, Intangible Assets and certain other assets. The following table presents revenues for groups of similar products and services for the years ended December 31: 2015 2014 2013 Net Sales: Equipment $ 499,634 $ 500,141 $ 444,773 Parts and consumables 175,697 182,845 176,442 Service and other 112,622 114,027 109,533 Specialty surface coatings 23,846 24,970 21,263 Total $ 811,799 $ 821,983 $ 752,011 |
Consolidated Quarterly Data
Consolidated Quarterly Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Consolidated Quarterly Data (Unaudited) | Consolidated Quarterly Data (Unaudited) 2015 Q1 Q2 Q3 Q4 Net Sales $ 185,740 $ 215,404 $ 204,802 $ 205,853 Gross Profit 78,081 95,033 88,657 87,289 Net Earnings (Loss) 5,026 14,817 (951 ) 13,196 Basic Earnings (Loss) per Share $ 0.27 $ 0.81 $ (0.05 ) $ 0.74 Diluted Earnings (Loss) per Share $ 0.27 $ 0.79 $ (0.05 ) $ 0.73 2014 Q1 Q2 Q3 Q4 Net Sales $ 183,979 $ 219,084 $ 202,643 $ 216,277 Gross Profit 76,917 95,263 87,163 93,084 Net Earnings 5,795 15,523 11,792 17,541 Basic Earnings per Share $ 0.32 $ 0.85 $ 0.65 $ 0.96 Diluted Earnings per Share $ 0.31 $ 0.83 $ 0.63 $ 0.93 The summation of quarterly data may not equate to the calculation for the full fiscal year as quarterly calculations are performed on a discrete basis. Regular quarterly dividends aggregated to $0.80 per share in 2015 , or $0.20 per share per quarter, and $0.78 per share in 2014, or $0.18 per share for the first quarter of 2014 and $0.20 per share for the last three quarters of 2014 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On July 31, 2012, we entered into a SPA with M&F, as further discussed in Note 4. Two of the M&F shareholders are individuals who were employed by Tennant prior to the transaction date and are 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. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event On January 19, 2016, we signed a BPA with Green Machines International GmbH and affiliates, subsidiaries of M&F, which is also parent company of the master distributor of our products in Central Eastern Europe, Middle East and Africa, TCS EMEA GmbH, for the sale of our Green Machines outdoor city cleaning line. Per the BPA, the sale officially closed on January 31, 2016. Further details regarding the sale of our Green Machines outdoor city cleaning line are discussed in Note 6. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts (In thousands) 2015 2014 2013 Allowance for Doubtful Accounts and Returns: Balance at beginning of year $ 3,936 $ 4,526 $ 4,399 Charged to costs and expenses 1,087 999 1,279 Reclassification (1) 172 — — Charged to other accounts (2) (159 ) (319 ) 102 Deductions (3) (1,421 ) (1,270 ) (1,254 ) Balance at end of year $ 3,615 $ 3,936 $ 4,526 Inventory Reserves: Balance at beginning of year $ 3,272 $ 3,250 $ 3,724 Charged to costs and expenses 1,728 622 1,044 Charged to other accounts (2) (160 ) (194 ) (88 ) Deductions (4) (1,300 ) (406 ) (1,430 ) Balance at end of year $ 3,540 $ 3,272 $ 3,250 Valuation Allowance for Deferred Tax Assets: Balance at beginning of year $ 5,699 $ 7,243 $ 4,719 Charged to costs and expenses 734 (636 ) 2,239 Charged to other accounts (2) (549 ) (908 ) 285 Balance at end of year $ 5,884 $ 5,699 $ 7,243 (1) Includes amount reclassified from Other Current Liabilities to Allowance for Doubtful Accounts to properly classify a customer's open receivables balance. (2) Primarily includes impact from foreign currency fluctuations. (3) Includes accounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves. (4) Includes inventory identified as excess, slow moving or obsolete and charged against reserves. All other schedules are omitted because they are not applicable or the required information is shown in the Consolidated Financial Statements or notes thereto. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations – Our primary business is in designing, manufacturing and marketing solutions that empower customers to achieve quality cleaning performance, significantly reduce environmental impact and help create a cleaner, safer, healthier world. Tennant is committed to creating and commercializing breakthrough, sustainable cleaning innovations to enhance its broad suite of products, including: floor maintenance and outdoor cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, specialty surface coatings and asset management solutions. Tennant products are used in many types of environments including: Retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, parking lots and streets, and more. Customers include contract cleaners to whom organizations outsource facilities maintenance, as well as businesses that perform facilities maintenance themselves. The Company reaches these customers through the industry's largest direct sales and service organization and through a strong and well-supported network of authorized distributors worldwide. |
Consolidation | Consolidation – The Consolidated Financial Statements include the accounts of Tennant Company and its subsidiaries. All intercompany transactions and balances have been eliminated. In these Notes to the Consolidated Financial Statements, Tennant Company is referred to as “Tennant,” “we,” “us,” or “our.” |
Translations of Non-U.S. Currency | Translation of Non-U.S. Currency – Foreign currency-denominated assets and liabilities have been translated to U.S. dollars at year-end exchange rates, while income and expense items are translated at average exchange rates prevailing during the year. Gains or losses resulting from translation are included as a separate component of Accumulated Other Comprehensive Loss. The balance of cumulative foreign currency translation adjustments recorded within Accumulated Other Comprehensive Loss as of December 31, 2015 , 2014 and 2013 was a net loss of $44,585 , $32,090 and $21,991 , respectively. The majority of translation adjustments are not adjusted for income taxes as substantially all translation adjustments relate to permanent investments in non-U.S. subsidiaries. Net Foreign Currency Transaction Losses are included in Other Income (Expense). |
Use of Estimates | Use of Estimates – In preparing the consolidated financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP"), management must make decisions that impact the reported amounts of assets, liabilities, revenues, expenses and the related disclosures, including disclosures of contingent assets and liabilities. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. Estimates are used in determining, among other items, sales promotions and incentives accruals, inventory valuation, warranty reserves, allowance for doubtful accounts, pension and postretirement accruals, useful lives for intangible assets, and future cash flows associated with impairment testing for Goodwill and other long-lived assets. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. A number of these factors include, among others, economic conditions, credit markets, foreign currency, commodity cost volatility and consumer spending and confidence, all of which have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual amounts could differ significantly from those estimated at the time the consolidated financial statements are prepared. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Cash and Cash Equivalents | Cash and Cash Equivalents – We consider all highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. |
Restricted Cash | Restricted Cash – We have a total of $640 as of December 31, 2015 that serves as collateral backing certain bank guarantees and is therefore restricted. This money is invested in time deposits. |
Receivables | Receivables – Credit is granted to our customers in the normal course of business. Receivables are recorded at original carrying value less reserves for estimated uncollectible accounts and sales returns. To assess the collectability of these receivables, we perform ongoing credit evaluations of our customers’ financial condition. Through these evaluations, we may become aware of a situation where a customer may not be able to meet its financial obligations due to deterioration of its financial viability, credit ratings or bankruptcy. The reserve requirements are based on the best facts available to us and are reevaluated and adjusted as additional information becomes available. Our reserves are also based on amounts determined by using percentages applied to trade receivables. These percentages are determined by a variety of factors including, but not limited to, current economic trends, historical payment and bad debt write-off experience. An account is considered past-due or delinquent when it has not been paid within the contractual terms. Uncollectible accounts are written off against the reserves when it is deemed that a customer account is uncollectible. |
Inventories | Inventories – Inventories are valued at the lower of cost or market. Cost is determined on a first-in, first-out (“FIFO”) basis except for Inventories in North America, which are determined on a last-in, first-out (“LIFO”) basis. |
Property, Plant and Equipment | Property, Plant and Equipment – Property, plant and equipment is carried at cost. Additions and improvements that extend the lives of the assets are capitalized while expenditures for repairs and maintenance are expensed as incurred. We generally depreciate buildings and improvements by the straight-line method over a life of 30 years . Other property, plant and equipment are generally depreciated using the straight-line method based on lives of 3 years to 15 years . |
Goodwill | Goodwill – Goodwill represents the excess of cost over the fair value of net assets of businesses acquired. We analyze Goodwill on an annual basis as of year end and when an event occurs or circumstances change that may reduce the fair value of one of our reporting units below its carrying amount. A goodwill impairment occurs if the carrying amount of a reporting unit’s Goodwill exceeds its fair value. In assessing the recoverability of Goodwill, we use an analysis of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step Goodwill impairment test. |
Intangible Assets | Intangible Assets – Intangible Assets consist of definite lived customer lists, service contracts and technology. Intangible Assets with a definite life are amortized on a straight-line basis. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets and Assets Held for Sale – We periodically review our intangible and long-lived assets for impairment and assess whether events or circumstances indicate that the carrying amount of the assets may not be recoverable. We generally deem an asset group to be impaired if an estimate of undiscounted future operating cash flows is less than its carrying amount. If impaired, an impairment loss is recognized based on the excess of the carrying amount of the individual asset group over its fair value. Assets held for sale are measured at the lower of their carrying value or fair value less costs to sell. Upon retirement or disposition, the asset cost and related accumulated depreciation or amortization are removed from the accounts and a gain or loss is recognized based on the difference between the fair value of proceeds received and carrying value of the assets held for sale. In fiscal 2015, we adopted a plan to sell assets and liabilities of our Green Machines™ outdoor city cleaning line as a result of determining that the product line does not sufficiently complement our core business. The long-lived assets involved were tested for recoverability at the end of third quarter; accordingly, a pre-tax impairment loss of $11,199 was recognized, which represents the amount by which the carrying values of the assets exceeded their fair value less costs to sell. The impairment charge is included in the caption "Impairment of Long-Lived Assets" in the accompanying Consolidated Statements of Earnings. For additional information regarding the impairment of our Green Machines outdoor city cleaning line and the related accounting impact, refer to Note 6. |
Purchases of Common Stock | Purchases of Common Stock – We repurchase our Common Stock under a 2015 repurchase program authorized by our Board of Directors. This program allows us to repurchase up to an additional 1,000,000 shares of our Common Stock. Upon repurchase, the par value is charged to Common Stock and the remaining purchase price is charged to Additional Paid-in Capital. If the amount of the remaining purchase price causes the Additional Paid-in Capital account to be in a debit position, this amount is then reclassified to Retained Earnings. Common Stock repurchased is included in shares authorized but is not included in shares outstanding. |
Warranty | Warranty – We record a liability for estimated 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. In the event we determine that our current or future product repair and replacement costs exceed our estimates, an adjustment to these reserves would be charged to earnings in the period such determination is made. Warranty terms on machines 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 out for older equipment warranty issues. |
Environmental | Environmental – We record a liability for environmental clean-up on an undiscounted basis when a loss is probable and can be reasonably estimated. |
Pension and Profit Sharing Plans | Pension and Profit Sharing Plans – We have pension and/or profit sharing plans covering substantially all of our employees. Pension plan costs are accrued based on actuarial estimates with the required pension cost funded annually, as needed. No new participants have entered the pension plan since 2000. |
Postretirement Benefits | Postretirement Benefits – We accrue and recognize the cost of retiree health benefits over the employees’ period of service based on actuarial estimates. Benefits are only available for U.S. employees hired before January 1, 1999. |
Derivative Financial Instruments | Derivative Financial Instruments – In countries outside the U.S., we transact business in U.S. dollars and in various other currencies. We hedge our net recognized foreign currency denominated assets and liabilities with foreign exchange forward contracts to reduce the risk that the value of these assets and liabilities will be adversely affected by changes in exchange rates. We may also use foreign exchange option contracts or forward contracts to hedge certain cash flow exposures resulting from changes in foreign currency exchange rates. We enter into these foreign exchange contracts to hedge a portion of our forecasted currency denominated revenue in the normal course of business, and accordingly, they are not speculative in nature. We account for our foreign currency hedging instruments as either assets or liabilities on the balance sheet and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Gains and losses from foreign exchange forward contracts that hedge certain balance sheet positions are recorded each period to Net Foreign Currency Transaction Losses in our Consolidated Statements of Earnings. Foreign exchange option contracts or forward contracts hedging forecasted foreign currency revenue are designated as cash flow hedges under accounting for derivative instruments and hedging activities, with gains and losses recorded each period to Accumulated Other Comprehensive Loss in our Consolidated Balance Sheets, until the forecasted transaction occurs. When the forecasted transaction occurs, we reclassify the related gain or loss on the cash flow hedge to Net Sales. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from Accumulated Other Comprehensive Loss to Net Foreign Currency Transaction Losses in our Consolidated Statements of Earnings at that time. If we do not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in Net Foreign Currency Transaction Losses in our Consolidated Statements of Earnings. See Note 11 for additional information regarding our hedging activities. |
Revenue Recognition | Revenue Recognition – We recognize revenue when persuasive evidence of an arrangement exists, title and risk of ownership have passed to the customer, the sales price is fixed or determinable and collectability is reasonably assured. Generally, these criteria are met at the time the product is shipped. Provisions for estimated returns, rebates and discounts are provided for at the time the related revenue is recognized. Freight revenue billed to customers is included in Net Sales and the related shipping expense is included in Cost of Sales. Service revenue is recognized in the period the service is performed or ratably over the period of the related service contract. Customers may obtain financing through third-party leasing companies to assist in their acquisition of our equipment products. Certain lease transactions classified as operating leases contain retained ownership provisions or guarantees, which results in recognition of revenue over the lease term. As a result, we defer the sale of these transactions and record the sales proceeds as collateralized borrowings or deferred revenue. The underlying equipment relating to operating leases is depreciated on a straight-line basis, not to exceed the equipment’s estimated useful life. Revenues from contracts with multiple element arrangements are recognized as each element is earned. We offer service contracts in conjunction with equipment sales in addition to selling equipment and service contracts separately. Sales proceeds related to service contracts are deferred if the proceeds are received in advance of the service and recognized ratably over the contract period. |
Share-based Compensation | Share-based Compensation – We account for employee share-based compensation using the fair value based method. Our share-based compensation plans are more fully described in Note 17 of the Consolidated Financial Statements. |
Research and Development | Research and Development – Research and development costs are expensed as incurred. |
Advertising Costs | Advertising Costs – We advertise products, technologies and solutions to customers and prospective customers through a variety of marketing campaign and promotional efforts. These efforts include tradeshows, online advertising, e-mail marketing, mailings, sponsorships and telemarketing. Advertising costs are expensed as incurred. In 2015 , 2014 and 2013 such activities amounted to $7,418 , $8,583 and $6,412 , respectively. |
Income Taxes | Income Taxes – Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the book and tax bases of existing assets and liabilities. A valuation allowance is provided when, in management’s judgment, it is more likely than not that some portion or all of the deferred tax asset will not be realized. We have established contingent tax liabilities using management’s best judgment. We follow guidance provided by Accounting Standards Codification ("ASC") 740, Income Taxes , regarding uncertainty in income taxes, to record these contingent tax liabilities (refer to Note 16 of the Consolidated Financial Statements for additional information). We adjust these liabilities as facts and circumstances change. Interest Expense is recognized in the first period the interest would begin accruing. Penalties are recognized in the period we claim or expect to claim the position in our tax return. Interest and penalties expenses are classified as an income tax expense. |
Sales Tax | Sales Tax – Sales taxes collected from customers and remitted to governmental authorities are presented on a net basis. |
Earnings per Share | Earnings per Share – Basic earnings per share is computed by dividing Net Earnings by the Weighted Average Shares Outstanding during the period. Diluted earnings per share assume conversion of potentially dilutive stock |
Management Actions (Tables)
Management Actions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Q3 2015 Action | |
Restructuring Cost and Reserve | |
Reconciliation of beginning and ending liability balances | A reconciliation of the beginning and ending liability balances is as follows: Severance and Related Costs Q3 2015 restructuring action $ 1,779 Cash payments (815 ) Foreign currency adjustments (19 ) December 31, 2015 balance $ 945 |
Q4 2015 Action | |
Restructuring Cost and Reserve | |
Reconciliation of beginning and ending liability balances | A reconciliation of the beginning and ending liability balances is as follows: Severance and Related Costs Q4 2015 restructuring action $ 1,484 Cash payments (517 ) December 31, 2015 $ 967 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories as of December 31, consisted of the following: 2015 2014 Inventories carried at LIFO: Finished goods $ 41,225 $ 41,687 Raw materials, production parts and work-in-process 22,158 24,458 LIFO reserve (27,645 ) (28,166 ) Total LIFO inventories $ 35,738 $ 37,979 Inventories carried at FIFO: Finished goods $ 32,421 $ 29,851 Raw materials, production parts and work-in-process 13,812 12,681 Less: Inventories held for sale (4,679 ) — Total FIFO inventories $ 41,554 $ 42,532 Total inventories $ 77,292 $ 80,511 |
Assets and Liabilities Held f35
Assets and Liabilities Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Balances of Assets and Liabilities Held for Sale | 2015 Assets: Accounts Receivable $ 1,715 Inventories 4,679 Prepaid Expenses 239 Property, Plant and Equipment, net 193 Total Assets Held for Sale $ 6,826 Liabilities: Employee Compensation and Benefits $ 338 Other Current Liabilities 116 Total Liabilities Held for Sale $ 454 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment and related Accumulated Depreciation, including equipment under capital leases, as of December 31, consisted of the following: 2015 2014 Property, Plant and Equipment: Land $ 4,232 $ 4,265 Buildings and improvements 52,118 52,962 Machinery and manufacturing equipment 117,197 117,622 Office equipment 80,972 73,677 Work in progress 24,481 13,688 Less: Gross Property, Plant and Equipment held for sale (2,189 ) — Total Property, Plant and Equipment $ 276,811 $ 262,214 Accumulated Depreciation: Accumulated Depreciation $ (183,849 ) $ (175,671 ) Add: Accumulated Depreciation on Property, Plant and Equipment held for sale 1,996 — Total Accumulated Depreciation $ (181,853 ) $ (175,671 ) Property, Plant and Equipment, Net $ 94,958 $ 86,543 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of Goodwill | The changes in the carrying amount of Goodwill are as follows: Goodwill Accumulated Impairment Losses Total Balance as of December 31, 2013 $ 68,906 $ (49,977 ) $ 18,929 Foreign currency fluctuations (4,048 ) 3,474 (574 ) Balance as of December 31, 2014 $ 64,858 $ (46,503 ) $ 18,355 Foreign currency fluctuations (4,411 ) 2,859 (1,552 ) Balance as of December 31, 2015 $ 60,447 $ (43,644 ) $ 16,803 |
Acquired Intangible Assets excluding Goodwill | Customer Lists and Service Contracts Trade Name Technology Total Balance as of December 31, 2015 Original cost $ 19,781 $ 3,859 $ 6,596 $ 30,236 Accumulated amortization (19,232 ) (3,859 ) (3,950 ) (27,041 ) Carrying amount $ 549 $ — $ 2,646 $ 3,195 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 amount $ 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 amount of amortizable Intangible Assets for each of the five succeeding years is as follows: 2016 $ 407 2017 315 2018 309 2019 309 2020 309 Thereafter 1,546 Total $ 3,195 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Short-term and Long-term Debt | Debt as of December 31, consisted of the following: 2015 2014 Long-Term Debt: Credit facility borrowings 24,571 28,000 Collateralized borrowings — 7 Capital lease obligations 82 130 Total Debt 24,653 28,137 Less: current portion (3,459 ) (3,566 ) Long-term portion $ 21,194 $ 24,571 |
Aggregate maturities of outstanding debt including capital lease obligations | The aggregate maturities of our outstanding debt, including capital lease obligations as of December 31, 2015 , are as follows: 2016 $ 4,097 2017 3,958 2018 3,807 2019 1,704 2020 11,646 Thereafter 1,523 Total minimum obligations $ 26,735 Less: amount representing interest (2,082 ) Total $ 24,653 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other Current Liabilities as of December 31, consisted of the following: 2015 2014 Other Current Liabilities: Taxes, other than income taxes $ 5,030 $ 7,052 Warranty 10,093 9,686 Deferred revenue 2,512 2,368 Rebates 10,399 11,503 Freight 6,461 5,006 Restructuring 1,927 — Miscellaneous accrued expenses 4,230 6,581 Other 2,491 3,312 Less: Other Current Liabilities held for sale (116 ) — Total Other Current Liabilities $ 43,027 $ 45,508 |
Changes in warranty reserves | The changes in warranty reserves for the three years ended December 31 were as follows: 2015 2014 2013 Beginning balance $ 9,686 $ 9,663 $ 9,357 Product warranty provision 11,719 10,605 10,649 Foreign currency (207 ) (215 ) (48 ) Claims paid (11,105 ) (10,367 ) (10,295 ) Ending balance $ 10,093 $ 9,686 $ 9,663 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Balance Sheet, Fair Value | The fair value of derivative instruments on our Consolidated Balance Sheets as of December 31 , consisted of the following: 2015 2014 Fair Value Asset Derivatives Fair Value Liability Derivatives Fair Value Asset Derivatives Fair Value Liability Derivatives Derivatives designated as hedging instruments: Foreign currency option contracts (1)(2) $ 387 $ — $ — $ — Foreign currency forward contracts (1) 113 — — — Derivatives not designated as hedging instruments: Foreign currency forward contracts (1) $ 171 $ 7 $ 130 $ — (1) Contracts that mature within the next twelve months are included in Other Current Assets and Other Current Liabilities for asset derivatives and liabilities derivatives, respectively, on our Consolidated Balance Sheets. (2) Contracts with a maturity greater than twelve months are included in Other Assets and Other Liabilities for asset derivatives and liability derivatives, respectively, on our Consolidated Balance Sheets. |
Schedule of Derivative Instruments, Gain (Loss) | The effect of foreign currency derivative instruments designated as cash flow hedges and foreign currency derivative instruments not designated as hedges in our Consolidated Statements of Earnings for the three years ended December 31 were as follows: 2015 2014 2013 Foreign Currency Option Contracts Foreign Currency Forward Contracts Foreign Currency Option Contracts Foreign Currency Forward Contracts Foreign Currency Option Contracts Foreign Currency Forward Contracts Derivatives in cash flow hedging relationships: Net gain recognized in Other Comprehensive Loss, net of tax (1) $ 31 $ 77 $ — $ — $ — $ — Net gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax (2) — 5 — — — — Net gain (loss) recognized in earnings (3) 6 (2 ) — — — — Derivatives not designated as hedging instruments: Net gain recognized in earnings (4) $ — $ 4,047 $ — $ 2,384 $ — $ 1,068 (1) Net change in the fair value of the effective portion classified in Other Comprehensive Loss. (2) Effective portion classified as Net Sales. (3) Ineffective portion and amount excluded from effectiveness testing classified in Net Foreign Currency Transaction Losses. (4) Classified in Net Foreign Currency Transaction Losses. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements of assets and liabilities | Our population of assets and liabilities subject to fair value measurements at December 31, 2015 is as follows: Fair Value Level 1 Level 2 Level 3 Assets: Foreign currency forward exchange contracts $ 284 $ — $ 284 $ — Foreign currency option contracts 387 — 387 — Total Assets $ 671 $ — $ 671 $ — Liabilities: Foreign currency forward exchange contracts $ 7 $ — $ 7 $ — Total Liabilities $ 7 $ — $ 7 $ — |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Weighted-average asset allocations by asset category of the U.S. and U.K. Pension Plans | Weighted-average asset allocations by asset category of the U.S. and U.K. Pension Plans as of December 31, 2015 are as follows: Asset Category Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and Cash Equivalents $ 954 $ 954 $ — $ — Mutual Funds: U.S. Large-Cap 9,194 9,194 — — U.S. Small-Cap 2,258 2,258 — — International Equities 2,206 2,206 — — Fixed-Income Domestic 32,589 32,589 — — Investment Account held by Pension Plan (1) 10,691 — — 10,691 Total $ 57,892 $ 47,201 $ — $ 10,691 (1) This category is comprised of investments in insurance contracts. Weighted-average asset allocations by asset category of the U.S. and U.K. Pension Plans as of December 31, 2014 are as follows: Asset Category Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and Cash Equivalents $ 486 $ 486 $ — $ — Mutual Funds: U.S. Large-Cap 12,955 12,955 — — U.S. Small-Cap 4,004 4,004 — — International Equities 3,788 3,788 — — Fixed-Income Domestic 30,652 30,652 — — Investment Account held by Pension Plan (1) 9,989 — — 9,989 Total $ 61,874 $ 51,885 $ — $ 9,989 (1) This category is comprised of investments in insurance contracts. |
Reconciliation of beginning and ending balances of Level 3 plan assets | A reconciliation of the beginning and ending balances of the Level 3 investments of our U.K. Pension Plan during the years ended are as follows: 2015 2014 Fair value at beginning of year $ 9,989 $ 9,733 Purchases, sales, issuances and settlements, net 52 (96 ) Net gain 1,232 974 Foreign currency (582 ) (622 ) Fair value at end of year $ 10,691 $ 9,989 |
Weighted-average assumptions used to determine benefit obligations and net periodic benefit costs | Weighted-average assumptions used to determine benefit obligations as of December 31 are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2015 2014 2015 2014 2015 2014 Discount rate 4.08 % 3.76 % 3.59 % 3.38 % 3.70 % 3.39 % Rate of compensation increase 3.00 % 3.00 % 3.50 % 3.50 % — — Weighted-average assumptions used to determine net periodic benefit costs as of December 31 are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 3.76 % 4.63 % 3.79 % 3.38 % 4.33 % 4.41 % 3.39 % 4.10 % 3.27 % Expected long-term rate of return on plan assets 5.20 % 5.70 % 6.50 % 4.40 % 5.60 % 4.70 % — — — Rate of compensation increase 3.00 % 3.00 % 3.00 % 3.50 % 4.50 % 4.50 % — — — |
Accumulated benefit obligations for all defined benefit plans | The accumulated benefit obligations as of December 31, for all defined benefit plans are as follows: 2015 2014 U.S. Pension Plans $ 41,537 $ 45,695 U.K. Pension Plan 9,720 10,658 German Pension Plan 870 1,027 |
Plans with accumulated benefit obligation in excess of plan assets | Information for our plans with an accumulated benefit obligation in excess of plan assets as of December 31 is as follows: 2015 2014 Accumulated benefit obligation $ 2,616 $ 13,872 Fair value of plan assets — 9,989 |
Plans with projected benefit obligations in excess of plan assets | Information for our plans with a projected benefit obligation in excess of plan assets as of December 31 is as follows: 2015 2014 Projected benefit obligation $ 2,616 $ 14,207 Fair value of plan assets — 9,989 |
Assumed healthcare cost trend rates | Assumed healthcare cost trend rates as of December 31 are as follows: 2015 2014 Healthcare cost trend rate assumption for the next year 6.76 % 7.50 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2031 2031 |
Effect of one-percentage-point change in assumed healthcare cost trends | To illustrate, a one-percentage-point change in assumed healthcare cost trends would have the following effects: 1-Percentage- Point Decrease 1-Percentage- Point Increase Effect on total of service and interest cost components $ (37 ) $ 42 Effect on postretirement benefit obligation $ (803 ) $ 910 |
Changes in benefit obligations and plan assets and funded status | Summaries related to changes in benefit obligations and plan assets and to the funded status of our defined benefit and postretirement medical benefit plans are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2015 2014 2015 2014 2015 2014 Change in benefit obligation: Benefit obligation at beginning of year $ 47,027 $ 43,653 $ 12,014 $ 11,238 $ 13,292 $ 13,186 Service cost 480 493 153 155 96 128 Interest cost 1,711 1,964 396 476 393 497 Plan participants' contributions — — 20 21 — — Actuarial (gain) loss (3,352 ) 5,907 (718 ) 1,421 (1,618 ) 591 Foreign exchange — — (681 ) (815 ) — — Benefits paid (1,944 ) (1,706 ) (301 ) (482 ) (1,019 ) (1,110 ) Settlement (2,148 ) (3,284 ) — — — — Benefit obligation at end of year $ 41,774 $ 47,027 $ 10,883 $ 12,014 $ 11,144 $ 13,292 Change in fair value of plan assets and net accrued liabilities: Fair value of plan assets at beginning of year $ 51,885 $ 52,397 $ 9,989 $ 9,733 $ — $ — Actual return on plan assets (933 ) 4,236 1,232 974 — — Employer contributions 341 242 333 365 1,019 1,110 Plan participants' contributions — — 20 21 — — Foreign exchange — — (582 ) (622 ) — — Benefits paid (1,944 ) (1,706 ) (301 ) (482 ) (1,019 ) (1,110 ) Settlement (2,148 ) (3,284 ) — — — — Fair value of plan assets at end of year 47,201 51,885 10,691 9,989 — — Funded status at end of year $ 5,427 $ 4,858 $ (192 ) $ (2,025 ) $ (11,144 ) $ (13,292 ) Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent Other Assets $ 7,173 $ 7,051 $ 678 $ — $ — $ — Current Liabilities (243 ) (185 ) (33 ) (37 ) (835 ) (947 ) Long-Term Liabilities (1,503 ) (2,008 ) (837 ) (1,988 ) (10,309 ) (12,345 ) Net accrued asset (liability) $ 5,427 $ 4,858 $ (192 ) $ (2,025 ) $ (11,144 ) $ (13,292 ) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Prior service cost $ (42 ) $ (109 ) $ — $ — $ — $ — Net actuarial loss (5,127 ) (5,993 ) (111 ) (1,682 ) (560 ) (2,178 ) Accumulated Other Comprehensive Loss $ (5,169 ) $ (6,102 ) $ (111 ) $ (1,682 ) $ (560 ) $ (2,178 ) |
Components of the net periodic benefit cost | The components of the net periodic benefit cost for the three years ended December 31 were as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $ 480 $ 493 $ 690 $ 153 $ 155 $ 142 $ 96 $ 128 $ 154 Interest cost 1,711 1,964 1,803 396 476 422 393 497 443 Expected return on plan assets (2,613 ) (2,683 ) (2,911 ) (433 ) (539 ) (402 ) — — — Amortization of net actuarial loss 835 147 1,751 54 9 9 — — 201 Amortization of prior service cost (credit) 42 43 73 — — — — (6 ) (103 ) Foreign currency — — — (35 ) (61 ) 21 — — — Curtailment charge 25 — — — — — — — — Settlement charge 225 356 — — — — — — — Net periodic benefit cost $ 705 $ 320 $ 1,406 $ 135 $ 40 $ 192 $ 489 $ 619 $ 695 |
Changes in accumulated other comprehensive loss | The changes in Accumulated Other Comprehensive Loss for the three years ended December 31 were as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 Net actuarial loss (gain) $ 195 $ 4,353 $ (9,817 ) $ (1,517 ) $ 987 $ 467 $ (1,618 ) $ 591 $ (1,001 ) Amortization of prior service (cost) credit (67 ) (43 ) (73 ) — — — — 6 103 Amortization of net actuarial loss (1,060 ) (503 ) (1,751 ) (54 ) (9 ) (9 ) — — (201 ) Total recognized in other comprehensive (income) loss $ (932 ) $ 3,807 $ (11,641 ) $ (1,571 ) $ 978 $ 458 $ (1,618 ) $ 597 $ (1,099 ) Total recognized in net periodic (cost) benefit and other comprehensive (income) loss $ (227 ) $ 4,127 $ (10,235 ) $ (1,436 ) $ 1,018 $ 650 $ (1,129 ) $ 1,216 $ (404 ) |
Expected future benefit payments | The following benefit payments, which reflect expected future service, are expected to be paid for our U.S. and Non-U.S. plans: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2016 $ 2,296 $ 225 $ 835 2017 2,450 230 890 2018 2,594 238 914 2019 2,573 244 959 2020 2,637 251 1,010 2021 to 2025 13,582 1,377 4,574 Total $ 26,132 $ 2,565 $ 9,182 |
Amounts in accumulated other comprehensive loss to be recognized over next fiscal year | The following amounts are included in Accumulated Other Comprehensive Loss as of December 31, 2015 and are expected to be recognized as components of net periodic benefit cost during 2016 : Pension Benefits Postretirement Medical Benefits Net actuarial loss $ 64 $ 173 Prior service cost 42 — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Components of Accumulated Other Comprehensive Loss, net of tax | Components of Accumulated Other Comprehensive Loss, net of tax, within the Consolidated Balance Sheets and Statements of Shareholders' Equity as of December 31 are as follows: 2015 2014 2013 Foreign currency translation adjustments $ (44,585 ) $ (32,090 ) $ (21,991 ) Pension and retiree medical benefits (3,647 ) (6,503 ) (2,980 ) Cash flow hedge 103 — — Total Accumulated Other Comprehensive Loss $ (48,129 ) $ (38,593 ) $ (24,971 ) |
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 Postretirement Benefits Cash Flow Hedge Total December 31, 2014 $ (32,090 ) $ (6,503 ) $ — $ (38,593 ) Other comprehensive (loss) income before reclassifications (12,495 ) 2,153 108 (10,234 ) Amounts reclassified from Accumulated Other Comprehensive Loss — 703 (5 ) 698 Net current period other comprehensive (loss) income (12,495 ) 2,856 103 (9,536 ) December 31, 2015 $ (44,585 ) $ (3,647 ) $ 103 $ (48,129 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum rentals for aggregate lease commitments | The minimum rentals for aggregate lease commitments as of December 31, 2015 , were as follows: 2016 $ 7,707 2017 5,421 2018 3,856 2019 2,607 2020 1,663 Thereafter 2,673 Total $ 23,927 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) from continuing operations | Income (Loss) from continuing operations for the three years ended December 31 was as follows: 2015 2014 2013 U.S. operations $ 51,189 $ 52,315 $ 54,702 Foreign operations (765 ) 17,223 5,176 Total $ 50,424 $ 69,538 $ 59,878 |
Income tax expense (benefit) | Income tax expense (benefit) for the three years ended December 31 was as follows: 2015 2014 2013 Current: Federal $ 15,117 $ 11,903 $ 13,551 Foreign 3,992 3,373 3,567 State 1,685 1,543 1,136 $ 20,794 $ 16,819 $ 18,254 Deferred: Federal $ (481 ) $ 2,650 $ 1,856 Foreign (1,888 ) (524 ) (424 ) State (89 ) (58 ) (39 ) $ (2,458 ) $ 2,068 $ 1,393 Total: Federal $ 14,636 $ 14,553 $ 15,407 Foreign 2,104 2,849 3,143 State 1,596 1,485 1,097 Total Income Tax Expense $ 18,336 $ 18,887 $ 19,647 |
Effective tax rate reconciliation | Our effective income tax rate varied from the U.S. federal statutory tax rate for the three years ended December 31 as follows: 2015 2014 2013 Tax at statutory rate 35.0 % 35.0 % 35.0 % Increases (decreases) in the tax rate from: State and local taxes, net of federal benefit 2.2 1.7 1.7 Effect of foreign operations (5.1 ) (4.6 ) (3.3 ) Impairment of Long-Lived Assets 7.0 — — Effect of changes in valuation allowances 1.5 (0.9 ) 3.7 Domestic production activities deduction (2.7 ) (1.6 ) (1.6 ) Other, net (1.5 ) (2.4 ) (2.7 ) Effective income tax rate 36.4 % 27.2 % 32.8 % |
Deferred tax assets and liabilities | Deferred tax assets and liabilities were comprised of the following as of December 31: 2015 2014 Deferred Tax Assets: Employee wages and benefits, principally due to accruals for financial reporting purposes $ 16,395 $ 16,696 Warranty reserves accrued for financial reporting purposes 3,101 2,895 Receivables, principally due to allowance for doubtful accounts and tax accounting method for equipment rentals 1,446 1,549 Tax loss carryforwards 5,834 6,845 Tax credit carryforwards 1,102 1,043 Other 603 1,246 Gross Deferred Tax Assets $ 28,481 $ 30,274 Less: valuation allowance (5,884 ) (5,699 ) Total Net Deferred Tax Assets $ 22,597 $ 24,575 Deferred Tax Liabilities: Inventories, principally due to changes in inventory reserves $ 617 $ 305 Property, Plant and Equipment, principally due to differences in depreciation and related gains 6,619 6,745 Goodwill and Intangible Assets 3,315 5,611 Total Deferred Tax Liabilities $ 10,551 $ 12,661 Net Deferred Tax Assets $ 12,046 $ 11,914 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2015 2014 Balance at January 1, $ 3,029 $ 3,660 Increases as a result of tax positions taken during the current year 532 610 Decreases relating to settlement with tax authorities (72 ) (6 ) Reductions as a result of a lapse of the applicable statute of limitations (760 ) (1,033 ) Decreases as a result of foreign currency fluctuations (403 ) (202 ) Balance at December 31, $ 2,326 $ 3,029 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Assumptions used for the grants | The following table illustrates the valuation assumptions used for the 2015, 2014 and 2013 grants: 2015 2014 2013 Expected volatility 32 - 36% 47 - 50% 51% Weighted-average expected volatility 36% 50% 51% Expected dividend yield 1.1 - 1.2% 1.1 - 1.3% 1.6% Weighted-average expected dividend yield 1.2% 1.3% 1.6% Expected term, in years 5 6 6 Risk-free interest rate 1.4 - 1.6% 1.8 - 2.0% 0.9 - 1.1% |
Stock option activity | The following table summarizes the activity during the year ended December 31, 2015 for stock option awards: Shares Weighted-Average Exercise Price Outstanding at beginning of year 908,030 $ 34.21 Granted 177,020 66.49 Exercised (54,060 ) 31.03 Forfeited (10,814 ) 59.22 Expired (1,218 ) 60.67 Outstanding at end of year 1,018,958 $ 39.69 Exercisable at end of year 756,470 $ 31.68 |
Nonvested restricted share awards activity | The following table summarizes the activity during the year ended December 31, 2015 for nonvested restricted share awards: Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of year 144,475 $ 40.51 Granted 23,048 66.33 Vested (24,245 ) 43.47 Forfeited (4,459 ) 55.96 Nonvested at end of year 138,819 $ 43.83 |
Nonvested performance share awards activity | The following table summarizes the activity during the year ended December 31, 2015 for nonvested performance share awards: Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of year 152,555 $ 49.20 Granted 50,010 66.63 Vested (38,902 ) 44.03 Forfeited (22,289 ) 53.75 Nonvested at end of year 141,374 $ 56.07 |
Nonvested restricted stock units activity | The following table summarizes the activity during the year ended December 31, 2015 for nonvested restricted stock units: Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of year 16,549 $ 69.24 Granted 18,061 64.58 Vested (150 ) 65.26 Forfeited (1,814 ) 65.52 Nonvested at end of year 32,646 $ 66.89 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The computations of Basic and Diluted Earnings per Share for the years ended December 31 were as follows: 2015 2014 2013 Numerator: Net Earnings $ 32,088 $ 50,651 $ 40,231 Denominator: Basic - Weighted Average Shares Outstanding 18,015,151 18,217,384 18,297,371 Effect of dilutive securities 478,296 523,474 536,082 Diluted - Weighted Average Shares Outstanding 18,493,447 18,740,858 18,833,453 Basic Earnings per Share $ 1.78 $ 2.78 $ 2.20 Diluted Earnings per Share $ 1.74 $ 2.70 $ 2.14 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Financial information by operating segment | The following table presents Net Sales by operating segment for the years ended December 31: 2015 2014 2013 Net Sales: Americas $ 591,405 $ 569,004 $ 514,544 Europe, Middle East, Africa 139,834 165,686 157,208 Asia Pacific 80,560 87,293 80,259 Total $ 811,799 $ 821,983 $ 752,011 The following table presents long-lived assets by operating segment as of December 31: 2015 2014 2013 Long-lived assets: Americas $ 110,842 $ 103,958 $ 106,409 Europe, Middle East, Africa 11,100 24,051 28,296 Asia Pacific 4,658 3,669 3,882 Total $ 126,600 $ 131,678 $ 138,587 |
Net Sales by groups of similar products and services | The following table presents revenues for groups of similar products and services for the years ended December 31: 2015 2014 2013 Net Sales: Equipment $ 499,634 $ 500,141 $ 444,773 Parts and consumables 175,697 182,845 176,442 Service and other 112,622 114,027 109,533 Specialty surface coatings 23,846 24,970 21,263 Total $ 811,799 $ 821,983 $ 752,011 |
Consolidated Quarterly Data (Ta
Consolidated Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Consolidated Quarterly Data (Unaudited) | Consolidated Quarterly Data (Unaudited) 2015 Q1 Q2 Q3 Q4 Net Sales $ 185,740 $ 215,404 $ 204,802 $ 205,853 Gross Profit 78,081 95,033 88,657 87,289 Net Earnings (Loss) 5,026 14,817 (951 ) 13,196 Basic Earnings (Loss) per Share $ 0.27 $ 0.81 $ (0.05 ) $ 0.74 Diluted Earnings (Loss) per Share $ 0.27 $ 0.79 $ (0.05 ) $ 0.73 2014 Q1 Q2 Q3 Q4 Net Sales $ 183,979 $ 219,084 $ 202,643 $ 216,277 Gross Profit 76,917 95,263 87,163 93,084 Net Earnings 5,795 15,523 11,792 17,541 Basic Earnings per Share $ 0.32 $ 0.85 $ 0.65 $ 0.96 Diluted Earnings per Share $ 0.31 $ 0.83 $ 0.63 $ 0.93 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | |||
Accumulated Other Comprehensive Loss, Foreign Currency Translation Adjustment, Net of Tax | $ 44,585 | $ 32,090 | $ 21,991 |
Restricted Cash | 640 | 352 | |
Impairment of Long-Lived Assets | $ 11,199 | $ 0 | 0 |
Number of shares authorized to be repurchased under our stock repurchase programs | 1,000,000 | ||
Machine warranty, range minimum (in years) | 1 year | ||
Machine warranty, range maximum (in years) | 4 years | ||
Advertising Costs | $ 7,418 | $ 8,583 | $ 6,412 |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment, Useful life, Average | 30 years | ||
Property, Plant and Equipment, Other Types | Minimum | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment, Useful life, Average | 3 years | ||
Property, Plant and Equipment, Other Types | Maximum | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment, Useful life, Average | 15 years |
Management Actions (Details)
Management Actions (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Reconciliation of restructuring liability | |
Restructuring Reserve beginning balance | $ 0 |
Restructuring Reserve ending balance | 1,927 |
Q3 2015 Action | |
Reconciliation of restructuring liability | |
Restructuring action | 1,779 |
Cash payments | (815) |
Foreign currency adjustments | (19) |
Restructuring Reserve ending balance | 945 |
Q4 2015 Action | |
Reconciliation of restructuring liability | |
Restructuring action | 1,484 |
Cash payments | (517) |
Restructuring Reserve ending balance | $ 967 |
Management Actions Narrative (D
Management Actions Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Q3 2015 Action | |
Restructuring Cost and Reserve | |
Approximate time anticipated savings will offset the restructuring charge | 1 year |
Q4 2015 Action | |
Restructuring Cost and Reserve | |
Restructuring charge | $ 1,965 |
Other associated restructuring charges | $ 481 |
Approximate time anticipated savings will offset the restructuring charge | 1 year 6 months |
Divestiture (Details)
Divestiture (Details) € in Thousands, $ in Thousands | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Dec. 31, 2013EUR (€) | Dec. 31, 2013USD ($) | Dec. 31, 2012EUR (€) | Dec. 31, 2012USD ($) | Jul. 31, 2015EUR (€) | Jul. 31, 2015USD ($) | Jul. 31, 2014EUR (€) | Jul. 31, 2014USD ($) | Jul. 31, 2013EUR (€) | Jul. 31, 2013USD ($) | Jul. 31, 2012EUR (€) | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | ||||||||||||
Date of divestiture | Jul. 31, 2012 | |||||||||||
Proceeds from divestiture | € 815 | $ 1,014 | ||||||||||
Amount financed as part of selling price | € 5,351 | |||||||||||
Total selling price | € 6,166 | |||||||||||
Amount of installment payments received quarterly 2013 | € 2,126 | $ 2,826 | ||||||||||
First anniversary payment received | € 1,075 | $ 1,435 | ||||||||||
Second anniversary payment received | € 1,075 | $ 1,418 | ||||||||||
Third and final anniversary payment received | € 1,075 | $ 1,185 | ||||||||||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | $ | $ 784 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories carried at LIFO: | ||
Finished goods | $ 41,225 | $ 41,687 |
Raw materials, production parts and work-in-process | 22,158 | 24,458 |
LIFO Reserve | (27,645) | (28,166) |
Total LIFO inventories | 35,738 | 37,979 |
Inventories carried at FIFO: | ||
Finished goods | 32,421 | 29,851 |
Raw materials, production parts and work-in-process | 13,812 | 12,681 |
Disposal Group, Including Discontinued Operation, FIFO Inventory, Current | (4,679) | 0 |
Total FIFO inventories | 41,554 | 42,532 |
Inventories | $ 77,292 | $ 80,511 |
Assets and Liabilities Held f55
Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment of Long-Lived Assets | $ 11,199 | $ 0 | $ 0 |
Impairment loss recorded on intangible assets | 10,577 | ||
Impairment loss recorded on fixed assets | 622 | ||
Assets | |||
Total Assets Held for Sale | 6,826 | 0 | |
Liabilities | |||
Total Liabilities Held for Sale | 454 | 0 | |
Property, Plant and Equipment, Net | $ 94,958 | $ 86,543 | |
Green Machines | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Relative size of the disposal group compared to the total company, in terms of revenue | 2.00% | ||
Impairment of Long-Lived Assets | $ 11,199 | ||
Impairment loss recorded on intangible assets | 10,577 | ||
Impairment loss recorded on fixed assets | 622 | ||
Assets | |||
Accounts Receivable | 1,715 | ||
Inventories | 4,679 | ||
Prepaid Expenses | 239 | ||
Property, Plant and Equipment, net | 193 | ||
Total Assets Held for Sale | 6,826 | ||
Liabilities | |||
Employee Compensation and Benefits | 338 | ||
Other Current Liabilities | 116 | ||
Total Liabilities Held for Sale | $ 454 |
Property, Plant and Equipment56
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment | |||
Property, Plant and Equipment | $ 276,811 | $ 262,214 | |
Accumulated Depreciation | (181,853) | (175,671) | |
Property, Plant and Equipment, Net | 94,958 | 86,543 | |
Accumulated Depreciation, Property, Plant and Equipment prior to Assets Held for Sale | 183,849 | 175,671 | |
Impairment loss recorded on fixed assets | 622 | ||
Depreciation expense | 16,550 | 17,694 | $ 17,686 |
Land | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment | 4,232 | 4,265 | |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment | 52,118 | 52,962 | |
Machinery and manufacturing equipment | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment | 117,197 | 117,622 | |
Office equipment | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment | 80,972 | 73,677 | |
Work in progress | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment | 24,481 | 13,688 | |
Gross Property, Plant and Equipment held for sale | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment | (2,189) | 0 | |
Accumulated Depreciation, reduction due to assets held for sale | $ 1,996 | $ 0 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill, Gross | |||
Balance, beginning of period | $ 64,858 | $ 68,906 | |
Foreign currency fluctuations | (4,411) | (4,048) | |
Balance, end of period | 60,447 | 64,858 | $ 68,906 |
Accumulated Impairment Losses | |||
Balance, beginning of period | (46,503) | (49,977) | |
Foreign currency fluctuations | 2,859 | 3,474 | |
Balance, end of period | (43,644) | (46,503) | (49,977) |
Goodwill, Net | |||
Balance, beginning of period | 18,355 | 18,929 | |
Foreign currency fluctuations | (1,552) | (574) | |
Balance, end of period | 16,803 | 18,355 | 18,929 |
Acquired Finite-lived Intangible Assets | |||
Original cost | 30,236 | 33,161 | |
Accumulated amortization | (27,041) | (17,573) | |
Intangible Assets, Net | 3,195 | 15,588 | |
Impairment loss recorded on intangible assets | 10,577 | ||
Amortization expense | 1,481 | 2,369 | $ 2,560 |
Estimated aggregate amortization expense of Intangible Assets | |||
2,016 | 407 | ||
2,017 | 315 | ||
2,018 | 309 | ||
2,019 | 309 | ||
2,020 | 309 | ||
Thereafter | 1,546 | ||
Total | 3,195 | ||
Customer Lists and Service Contracts | |||
Acquired Finite-lived Intangible Assets | |||
Original cost | 19,781 | 21,946 | |
Accumulated amortization | (19,232) | (12,099) | |
Intangible Assets, Net | $ 549 | $ 9,847 | |
Weighted-average original life (in years) | 15 years | 15 years | |
Trade Name | |||
Acquired Finite-lived Intangible Assets | |||
Original cost | $ 3,859 | $ 4,300 | |
Accumulated amortization | (3,859) | (2,068) | |
Intangible Assets, Net | $ 0 | $ 2,232 | |
Weighted-average original life (in years) | 14 years | 14 years | |
Technology | |||
Acquired Finite-lived Intangible Assets | |||
Original cost | $ 6,596 | $ 6,915 | |
Accumulated amortization | (3,950) | (3,406) | |
Intangible Assets, Net | $ 2,646 | $ 3,509 | |
Weighted-average original life (in years) | 13 years | 13 years |
Debt Part 1 (Details)
Debt Part 1 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument | ||
Total Debt | $ 24,653 | $ 28,137 |
Less: current portion | (3,459) | (3,566) |
Long-Term Debt | 21,194 | 24,571 |
Committed lines of credit | 125,000 | |
Uncommitted lines of credit | 87,173 | |
Letters of credit, Outstanding amount | 3,249 | |
Commitment fees on unused lines of credit | $ 275 | |
Indebtedness to EBITDA ratio | 0.37 to 1 | |
EBITDA to interest expense ratio | 64.39 to 1 | |
Aggregate maturities of outstanding debt including capital lease obligations | ||
2,016 | $ 4,097 | |
2,017 | 3,958 | |
2,018 | 3,807 | |
2,019 | 1,704 | |
2,020 | 11,646 | |
Thereafter | 1,523 | |
Total minimum obligations | 26,735 | |
Less: amount representing interest | (2,082) | |
Total | 24,653 | 28,137 |
Prudential Investment Management, Inc. Private Shelf Agreement | ||
Debt Instrument | ||
Outstanding Borrowings | 14,571 | |
Credit facility borrowings, Long-Term | ||
Debt Instrument | ||
Total Debt | 24,571 | 28,000 |
Aggregate maturities of outstanding debt including capital lease obligations | ||
Total | 24,571 | 28,000 |
Collateralized Debt | ||
Debt Instrument | ||
Total Debt | 0 | 7 |
Aggregate maturities of outstanding debt including capital lease obligations | ||
Total | 0 | 7 |
Capital lease obligations | ||
Debt Instrument | ||
Total Debt | 82 | 130 |
Aggregate maturities of outstanding debt including capital lease obligations | ||
Total | $ 82 | $ 130 |
Debt Part 2 (Details)
Debt Part 2 (Details) € in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | |
Line of Credit Facility | |||||
Payments of Short-term Debt | $ 0 | $ 1,500 | $ 0 | ||
JPMorgan Chase Bank, National Association, Amended and Restated Credit Agreement | |||||
Line of Credit Facility | |||||
Expiration date | Jun. 30, 2020 | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 125,000 | ||||
Additional borrowing capacity available | 62,500 | ||||
Maximum borrowing capacity | 187,500 | ||||
Sublimit on borrowings by foreign subsidiaries | $ 100,000 | ||||
Minimum commitment fee percentage | 0.175% | ||||
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 ratio on Eurocurrency borrowings | 1.70% | ||||
Interest rate spread added to the federal funds rate on Alternate Base Rate borrowings | 0.50% | 0.50% | |||
Interest rate spread added to LIBOR rate for one month on Alternate Base Rate borrowings | 1.00% | 1.00% | |||
Minimum interest rate spread added to LIBOR rate on Alternate Base Rate borrowings | 0.075% | 0.075% | |||
Maximum interest rate spread added to LIBOR rate on Alternate Base Rate borrowings | 0.70% | 0.70% | |||
Percentage collateral in stock of certain subsidiaries | 65.00% | ||||
Covenant restriction, Minimum EBITDA to interest expense | 3.50 to 1 | ||||
Covenant restriction, maximum leverage after paying dividends or repurchasing stock, limit dividends | 2.00 to 1 | ||||
Covenant restriction, Maximum leverage after paying dividends or repuchasing stock, no dividends | 3.25 to 1 | ||||
Restriction on dividends and repurchases of common stock, Minimum | $ 50,000 | ||||
Restriction on dividends and repurchases of common stock, Maximum | $ 75,000 | ||||
Covenant restriction, Maximum leverage after acquisitions | 3.00 to 1 | ||||
Covenant restriction, Maximum level that can be paid for acquisitions | $ 25,000 | ||||
Weighted average interest rate at end of period | 1.29% | 1.29% | |||
Outstanding Borrowings | $ 10,000 | ||||
JP Morgan Chase Bank, National Association, The Credit Agreement | |||||
Line of Credit Facility | |||||
Minimum commitment fee percentage | 0.20% | ||||
Maximum commitment fee percentage | 0.35% | ||||
Minimum interest rate spread added to adjusted LIBOR rate based on leverage ratio on Eurocurrency borrowings | 1.30% | ||||
Maximum interest rate spread added to adjusted LIBOR rate based on leverage ratio on Eurocurrency borrowings | 1.90% | ||||
Interest rate spread added to the federal funds rate on Alternate Base Rate borrowings | 0.50% | ||||
Interest rate spread added to LIBOR rate for one month on Alternate Base Rate borrowings | 1.00% | ||||
Minimum interest rate spread added to LIBOR rate on Alternate Base Rate borrowings | 0.30% | ||||
Maximum interest rate spread added to LIBOR rate on Alternate Base Rate borrowings | 0.90% | ||||
Covenant restriction, Maximum leverage after acquisitions | 2.75 to 1 | ||||
Prudential Investment Management, Inc. Private Shelf Agreement | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity | 80,000 | ||||
Outstanding Borrowings | 14,571 | ||||
Second Amended Prudential Investment Management | |||||
Line of Credit Facility | |||||
Expiration date | Jul. 24, 2015 | ||||
Covenant restriction, Maximum indebtedness to EBITDA | 3.00 to 1 | ||||
Covenant restriction, maximum leverage after paying dividends or repurchasing stock, limit dividends | 2.00 to 1 | ||||
Restriction on dividends and repurchases of common stock, Minimum | $ 50,000 | ||||
Restriction on dividends and repurchases of common stock, Maximum | $ 75,000 | ||||
Covenant restriction, Maximum leverage after acquisitions | 2.75 to 1 | ||||
Series A Notes | |||||
Line of Credit Facility | |||||
Face amount | $ 6,000 | ||||
Interest rate, Stated percentage | 4.00% | 4.00% | |||
Debt Instrument Term | 7 years | ||||
Maturity date range, Start | Mar. 8, 2016 | ||||
Maturity date range, End | Mar. 8, 2018 | ||||
Repayments of Long-term Debt | $ 2,000 | $ 2,000 | |||
Series B Notes | |||||
Line of Credit Facility | |||||
Face amount | $ 8,571 | ||||
Interest rate, Stated percentage | 4.10% | 4.10% | |||
Debt Instrument Term | 10 years | ||||
Maturity date range, Start | Jun. 28, 2016 | ||||
Maturity date range, End | Jun. 28, 2021 | ||||
Repayments of Long-term Debt | $ 1,429 | ||||
Third Amended Prudential Investment Management Agreement [Member] | |||||
Line of Credit Facility | |||||
Expiration date | Jun. 30, 2018 | ||||
Covenant restriction, Maximum indebtedness to EBITDA | 3.25 to 1 | ||||
Covenant restriction, Maximum leverage after paying dividends or repuchasing stock, no dividends | 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 | ||||
Royal Bank of Scotland Citizens, N.A. | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity | € 2,000 | 2,173 | |||
Outstanding Borrowings | 0 | ||||
HSBC Bank (China) Company Limited, Shanghai Branch | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity | 5,000 | ||||
Payments of Short-term Debt | $ 1,500 | ||||
Outstanding Borrowings | $ 0 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taxes, other than income taxes | $ 5,030 | $ 7,052 | |
Warranty | 10,093 | 9,686 | |
Deferred revenue | 2,512 | 2,368 | |
Rebates | 10,399 | 11,503 | |
Freight | 6,461 | 5,006 | |
Restructuring | 1,927 | 0 | |
Miscellaneous accrued expenses | 4,230 | 6,581 | |
Other | 2,491 | 3,312 | |
Less: Other Current Liabilities held for sale | 116 | 0 | |
Total | 43,027 | 45,508 | |
Changes in warranty reserves | |||
Beginning balance | 9,686 | 9,663 | $ 9,357 |
Product warranty provision | 11,719 | 10,605 | 10,649 |
Foreign currency | (207) | (215) | (48) |
Claims paid | (11,105) | (10,367) | (10,295) |
Ending balance | $ 10,093 | $ 9,686 | $ 9,663 |
Derivatives Details 1
Derivatives Details 1 - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivatives designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Term of Contract | 15 months | ||
Cash Flow Hedge Gain to be Reclassified within Twelve Months | $ 169,000 | ||
Foreign currency option contracts | Derivatives designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 11,271,000 | $ 0 | |
Fair Value Asset Derivatives | [1],[2] | 387,000 | 0 |
Fair Value Liability Derivatives | [1],[2] | 0 | 0 |
Foreign currency forward contracts | Derivatives designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 2,486,000 | 0 | |
Fair Value Asset Derivatives | [1] | 113,000 | 0 |
Fair Value Liability Derivatives | [1] | 0 | 0 |
Foreign currency forward contracts | Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 45,851,000 | 34,631,000 | |
Fair Value Asset Derivatives | [1] | 171,000 | 130,000 |
Fair Value Liability Derivatives | [1] | $ 7,000 | $ 0 |
[1] | Contracts that mature within the next twelve months are included in Other Current Assets and Other Current Liabilities for asset derivatives and liabilities derivatives, respectively, on our Consolidated Balance Sheets. | ||
[2] | Contracts with a maturity greater than twelve months are included in Other Assets and Other Liabilities for asset derivatives and liability derivatives, respectively, on our Consolidated Balance Sheets. |
Derivatives Details 2
Derivatives Details 2 - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Foreign currency option contracts | Derivatives not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain recognized in earnings | [1] | $ 0 | $ 0 | $ 0 |
Foreign currency option contracts | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain recognized in Other Comprehensive Loss, net of tax | [2] | 31 | 0 | 0 |
Net gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax | [3] | 0 | 0 | 0 |
Net gain (loss) recognized in earnings | [4] | 6 | 0 | 0 |
Foreign currency forward contracts | Derivatives not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain recognized in earnings | [1] | 4,047 | 2,384 | 1,068 |
Foreign currency forward contracts | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain recognized in Other Comprehensive Loss, net of tax | [2] | 77 | 0 | 0 |
Net gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax | [3] | 5 | 0 | 0 |
Net gain (loss) recognized in earnings | [4] | $ (2) | $ 0 | $ 0 |
[1] | Classified in Net Foreign Currency Transaction Losses. | |||
[2] | Net change in the fair value of the effective portion classified in Other Comprehensive Loss. | |||
[3] | Effective portion classified as Net Sales. | |||
[4] | Ineffective portion and amount excluded from effectiveness testing classified in Net Foreign Currency Transaction Losses. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Fair Value | |
Assets: | |
Total Assets | $ 671 |
Liabilities: | |
Total Liabilities | 7 |
Fair Value | Foreign currency forward contracts | |
Assets: | |
Foreign currency contract, asset fair value | 284 |
Liabilities: | |
Foreign currency contract, liability fair value | 7 |
Fair Value | Foreign currency option contracts | |
Assets: | |
Foreign currency contract, asset fair value | 387 |
Level 1 | |
Assets: | |
Total Assets | 0 |
Liabilities: | |
Total Liabilities | 0 |
Level 1 | Foreign currency forward contracts | |
Assets: | |
Foreign currency contract, asset fair value | 0 |
Liabilities: | |
Foreign currency contract, liability fair value | 0 |
Level 1 | Foreign currency option contracts | |
Assets: | |
Foreign currency contract, asset fair value | 0 |
Level 2 | |
Assets: | |
Total Assets | 671 |
Liabilities: | |
Total Liabilities | 7 |
Level 2 | Foreign currency forward contracts | |
Assets: | |
Foreign currency contract, asset fair value | 284 |
Liabilities: | |
Foreign currency contract, liability fair value | 7 |
Level 2 | Foreign currency option contracts | |
Assets: | |
Foreign currency contract, asset fair value | 387 |
Level 3 | |
Assets: | |
Total Assets | 0 |
Liabilities: | |
Total Liabilities | 0 |
Level 3 | Foreign currency forward contracts | |
Assets: | |
Foreign currency contract, asset fair value | 0 |
Liabilities: | |
Foreign currency contract, liability fair value | 0 |
Level 3 | Foreign currency option contracts | |
Assets: | |
Foreign currency contract, asset fair value | $ 0 |
Retirement Benefit Plans Part 1
Retirement Benefit Plans Part 1 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||||
Total cost of benefit for U.S. and Non-U.S. Plans | $ 12,428 | $ 11,334 | $ 11,766 | |
Maximum employer contribution to 401(k) Plan as a percentage of employee's compensation | 3.00% | |||
Minimum service period required to be eligible for profit sharing contribution to 401(k) plan (in years) | 1 | |||
Expenses for 401(k) Plan | $ 8,098 | 7,475 | 6,423 | |
U.K. Pension Plan | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of year | 9,989 | 9,733 | ||
Purchases, sales, issuances and settlements, net | 52 | (96) | ||
Net gain | 1,232 | 974 | ||
Foreign currency | (582) | (622) | ||
Fair value at end of year | 10,691 | 9,989 | $ 9,733 | |
U.S. and U.K. Pension Plans | Fair Value | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 57,892 | 61,874 | ||
U.S. and U.K. Pension Plans | Level 1 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 47,201 | 51,885 | ||
U.S. and U.K. Pension Plans | Level 2 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. and U.K. Pension Plans | Level 3 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 10,691 | 9,989 | ||
U.S. and U.K. Pension Plans | Cash and Cash Equivalents | Fair Value | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 954 | 486 | ||
U.S. and U.K. Pension Plans | Cash and Cash Equivalents | Level 1 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 954 | 486 | ||
U.S. and U.K. Pension Plans | Cash and Cash Equivalents | Level 2 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. and U.K. Pension Plans | Cash and Cash Equivalents | Level 3 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. and U.K. Pension Plans | Mutual Funds - U.S. Large-Cap | Fair Value | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 9,194 | 12,955 | ||
U.S. and U.K. Pension Plans | Mutual Funds - U.S. Large-Cap | Level 1 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 9,194 | 12,955 | ||
U.S. and U.K. Pension Plans | Mutual Funds - U.S. Large-Cap | Level 2 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. and U.K. Pension Plans | Mutual Funds - U.S. Large-Cap | Level 3 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. and U.K. Pension Plans | Mutual Funds - U.S. Small-Cap | Fair Value | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 2,258 | 4,004 | ||
U.S. and U.K. Pension Plans | Mutual Funds - U.S. Small-Cap | Level 1 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 2,258 | 4,004 | ||
U.S. and U.K. Pension Plans | Mutual Funds - U.S. Small-Cap | Level 2 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. and U.K. Pension Plans | Mutual Funds - U.S. Small-Cap | Level 3 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. and U.K. Pension Plans | Mutual Funds - International Equities | Fair Value | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 2,206 | 3,788 | ||
U.S. and U.K. Pension Plans | Mutual Funds - International Equities | Level 1 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 2,206 | 3,788 | ||
U.S. and U.K. Pension Plans | Mutual Funds - International Equities | Level 2 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. and U.K. Pension Plans | Mutual Funds - International Equities | Level 3 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. and U.K. Pension Plans | Mutual Funds - Fixed-Income Domestic | Fair Value | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 32,589 | 30,652 | ||
U.S. and U.K. Pension Plans | Mutual Funds - Fixed-Income Domestic | Level 1 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 32,589 | 30,652 | ||
U.S. and U.K. Pension Plans | Mutual Funds - Fixed-Income Domestic | Level 2 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. and U.K. Pension Plans | Mutual Funds - Fixed-Income Domestic | Level 3 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. and U.K. Pension Plans | Investment Account Held By Pension Plan | Fair Value | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 10,691 | [1] | 9,989 | |
U.S. and U.K. Pension Plans | Investment Account Held By Pension Plan | Level 1 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | [1] | 0 | |
U.S. and U.K. Pension Plans | Investment Account Held By Pension Plan | Level 2 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | 0 | [1] | 0 | |
U.S. and U.K. Pension Plans | Investment Account Held By Pension Plan | Level 3 | ||||
Fair Value of Plan Assets by Investment Type | ||||
Fair value of plan assets | $ 10,691 | [1] | $ 9,989 | |
[1] | This category is comprised of investments in insurance contracts. |
Retirement Benefit Plans Part 2
Retirement Benefit Plans Part 2 (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Number of active employees participating in U.S. Pension Plan | 69 | ||
Plans with accumulated benefit obligation in excess of plan assets | |||
Accumulated benefit obligation | $ 2,616 | $ 13,872 | |
Fair value of plan assets | 0 | 9,989 | |
Plans with projected benefit obligation in excess of plan assets | |||
Projected benefit obligation | 2,616 | 14,207 | |
Fair value of plan assets | 0 | 9,989 | |
Changes in accumulated other comprehensive income: | |||
Total recognized in other comprehensive (income) loss | (4,121) | $ 5,382 | $ (12,282) |
Pension Benefits | |||
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | |||
Net actuarial loss | 64 | ||
Prior service cost | $ 42 | ||
U.S. Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Number of participants in U.S. Pension Plan | 361 | ||
Expected future employer contributions in the next fiscal year | $ 0 | ||
Weighted-average assumptions used to determine benefit obligation | |||
Discount rate | 4.08% | 3.76% | |
Rate of compensation increase | 3.00% | 3.00% | |
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 3.76% | 4.63% | 3.79% |
Expected long-term rate of return on plan assets | 5.20% | 5.70% | 6.50% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Accumulated benefit obligations | |||
Accumulated benefit obligations | $ 41,537 | $ 45,695 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 47,027 | 43,653 | |
Service cost | 480 | 493 | $ 690 |
Interest cost | 1,711 | 1,964 | 1,803 |
Plan participants' contributions | 0 | 0 | |
Actuarial (gain) loss | (3,352) | 5,907 | |
Foreign currency | 0 | 0 | |
Benefits paid | (1,944) | (1,706) | |
Settlement | (2,148) | (3,284) | |
Benefit obligation at end of year | 41,774 | 47,027 | 43,653 |
Change in fair value of plan assets and net accrued liabilities: | |||
Fair value of plan assets at beginning of year | 51,885 | 52,397 | |
Actual return on plan assets | (933) | 4,236 | |
Employer contributions | 341 | 242 | |
Plan participants' contributions | 0 | 0 | |
Foreign exchange | 0 | 0 | |
Benefits paid | (1,944) | (1,706) | |
Settlement | (2,148) | (3,284) | |
Fair value of plan assets at end of year | 47,201 | 51,885 | 52,397 |
Funded status at end of year | 5,427 | 4,858 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent Other Assets | 7,173 | 7,051 | |
Current Liabilities | (243) | (185) | |
Long-Term Liabilities | (1,503) | (2,008) | |
Net accrued asset (liability) | 5,427 | 4,858 | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Prior service (cost) credit | (42) | (109) | |
Net actuarial loss | (5,127) | (5,993) | |
Accumulated Other Comprehensive Loss | (5,169) | (6,102) | |
Components of the net periodic benefit cost | |||
Service cost | 480 | 493 | 690 |
Interest cost | 1,711 | 1,964 | 1,803 |
Expected return on plan assets | (2,613) | (2,683) | (2,911) |
Amortization of net actuarial loss | 835 | 147 | 1,751 |
Amortization of prior service cost (credit) | 42 | 43 | 73 |
Foreign currency | 0 | 0 | 0 |
Curtailment charge | 25 | 0 | 0 |
Settlement credit | 225 | 356 | 0 |
Net periodic benefit cost | 705 | 320 | 1,406 |
Changes in accumulated other comprehensive income: | |||
Net actuarial loss (gain) | 195 | 4,353 | (9,817) |
Amortization of prior service (cost) credit | (67) | (43) | (73) |
Amortization of net actuarial loss | (1,060) | (503) | (1,751) |
Total recognized in other comprehensive (income) loss | (932) | 3,807 | (11,641) |
Total recognized in net periodic benefit (cost) and other comprehensive (income) loss | (227) | $ 4,127 | $ (10,235) |
Expected future benefit payments | |||
2,016 | 2,296 | ||
2,017 | 2,450 | ||
2,018 | 2,594 | ||
2,019 | 2,573 | ||
2,020 | 2,637 | ||
2021 to 2025 | 13,582 | ||
Total | $ 26,132 | ||
U.S. Pension Plan | Debt Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Target allocation of investments | 60.00% | ||
U.S. Pension Plan | Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Target allocation of investments | 40.00% | ||
U.S. Nonqualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Expected future employer contributions in the next fiscal year | $ 243 | ||
Non-U.S. Pension Benefits | |||
Weighted-average assumptions used to determine benefit obligation | |||
Discount rate | 3.59% | 3.38% | |
Rate of compensation increase | 3.50% | 3.50% | |
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 3.38% | 4.33% | 4.41% |
Expected long-term rate of return on plan assets | 4.40% | 5.60% | 4.70% |
Rate of compensation increase | 3.50% | 4.50% | 4.50% |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 12,014 | $ 11,238 | |
Service cost | 153 | 155 | $ 142 |
Interest cost | 396 | 476 | 422 |
Plan participants' contributions | 20 | 21 | |
Actuarial (gain) loss | (718) | 1,421 | |
Foreign currency | 681 | 815 | |
Benefits paid | (301) | (482) | |
Settlement | 0 | 0 | |
Benefit obligation at end of year | 10,883 | 12,014 | 11,238 |
Change in fair value of plan assets and net accrued liabilities: | |||
Fair value of plan assets at beginning of year | 9,989 | 9,733 | |
Actual return on plan assets | 1,232 | 974 | |
Employer contributions | 333 | 365 | |
Plan participants' contributions | 20 | 21 | |
Foreign exchange | (582) | (622) | |
Benefits paid | (301) | (482) | |
Settlement | 0 | 0 | |
Fair value of plan assets at end of year | 10,691 | 9,989 | 9,733 |
Funded status at end of year | (192) | (2,025) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent Other Assets | 678 | 0 | |
Current Liabilities | (33) | (37) | |
Long-Term Liabilities | (837) | (1,988) | |
Net accrued asset (liability) | (192) | (2,025) | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Prior service (cost) credit | 0 | 0 | |
Net actuarial loss | (111) | (1,682) | |
Accumulated Other Comprehensive Loss | (111) | (1,682) | |
Components of the net periodic benefit cost | |||
Service cost | 153 | 155 | 142 |
Interest cost | 396 | 476 | 422 |
Expected return on plan assets | (433) | (539) | (402) |
Amortization of net actuarial loss | 54 | 9 | 9 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Foreign currency | (35) | (61) | 21 |
Curtailment charge | 0 | 0 | 0 |
Settlement credit | 0 | 0 | 0 |
Net periodic benefit cost | 135 | 40 | 192 |
Changes in accumulated other comprehensive income: | |||
Net actuarial loss (gain) | (1,517) | 987 | 467 |
Amortization of prior service (cost) credit | 0 | 0 | 0 |
Amortization of net actuarial loss | (54) | (9) | (9) |
Total recognized in other comprehensive (income) loss | (1,571) | 978 | 458 |
Total recognized in net periodic benefit (cost) and other comprehensive (income) loss | (1,436) | 1,018 | $ 650 |
Expected future benefit payments | |||
2,016 | 225 | ||
2,017 | 230 | ||
2,018 | 238 | ||
2,019 | 244 | ||
2,020 | 251 | ||
2021 to 2025 | 1,377 | ||
Total | 2,565 | ||
U.K. Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Expected future employer contributions in the next fiscal year | 308 | ||
Accumulated benefit obligations | |||
Accumulated benefit obligations | 9,720 | 10,658 | |
German Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Expected future employer contributions in the next fiscal year | 33 | ||
Accumulated benefit obligations | |||
Accumulated benefit obligations | 870 | $ 1,027 | |
Postretirement Medical Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Expected future employer contributions in the next fiscal year | $ 835 | ||
Weighted-average assumptions used to determine benefit obligation | |||
Discount rate | 3.70% | 3.39% | |
Rate of compensation increase | 0.00% | 0.00% | |
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 3.39% | 4.10% | 3.27% |
Expected long-term rate of return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Assumed healthcare cost trend rates | |||
Healthcare cost trend rate assumption for the next year | 6.76% | 7.50% | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% | |
Year that the rate reaches the ultimate trend rate | 2,031 | 2,031 | |
Effect of one-percentage-point change in assumed healthcare cost trends | |||
Effect of one-percentage-point decrease on total of service and interest cost components | $ (37) | ||
Effect of one-percentage-point increase on total of service and interest cost components | 42 | ||
Effect of one-percentage-point decrease on postretirement benefit obligation | (803) | ||
Effect of one-percentage-point increase on postretirement benefit obligation | 910 | ||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 13,292 | $ 13,186 | |
Service cost | 96 | 128 | $ 154 |
Interest cost | 393 | 497 | 443 |
Plan participants' contributions | 0 | 0 | |
Actuarial (gain) loss | (1,618) | 591 | |
Foreign currency | 0 | 0 | |
Benefits paid | (1,019) | (1,110) | |
Settlement | 0 | 0 | |
Benefit obligation at end of year | 11,144 | 13,292 | 13,186 |
Change in fair value of plan assets and net accrued liabilities: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 1,019 | 1,110 | |
Plan participants' contributions | 0 | 0 | |
Foreign exchange | 0 | 0 | |
Benefits paid | (1,019) | (1,110) | |
Settlement | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status at end of year | (11,144) | (13,292) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent Other Assets | 0 | 0 | |
Current Liabilities | (835) | (947) | |
Long-Term Liabilities | (10,309) | (12,345) | |
Net accrued asset (liability) | (11,144) | (13,292) | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Prior service (cost) credit | 0 | 0 | |
Net actuarial loss | (560) | (2,178) | |
Accumulated Other Comprehensive Loss | (560) | (2,178) | |
Components of the net periodic benefit cost | |||
Service cost | 96 | 128 | 154 |
Interest cost | 393 | 497 | 443 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 | 201 |
Amortization of prior service cost (credit) | 0 | (6) | (103) |
Foreign currency | 0 | 0 | 0 |
Curtailment charge | 0 | 0 | 0 |
Settlement credit | 0 | 0 | 0 |
Net periodic benefit cost | 489 | 619 | 695 |
Changes in accumulated other comprehensive income: | |||
Net actuarial loss (gain) | (1,618) | 591 | (1,001) |
Amortization of prior service (cost) credit | 0 | 6 | 103 |
Amortization of net actuarial loss | 0 | 0 | (201) |
Total recognized in other comprehensive (income) loss | (1,618) | 597 | (1,099) |
Total recognized in net periodic benefit (cost) and other comprehensive (income) loss | (1,129) | $ 1,216 | $ (404) |
Expected future benefit payments | |||
2,016 | 835 | ||
2,017 | 890 | ||
2,018 | 914 | ||
2,019 | 959 | ||
2,020 | 1,010 | ||
2021 to 2025 | 4,574 | ||
Total | 9,182 | ||
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | |||
Net actuarial loss | 173 | ||
Prior service cost | $ 0 |
Shareholders' Equity Part 1 (De
Shareholders' Equity Part 1 (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | |||
Common Stock, authorized (in shares) | 60,000,000 | 60,000,000 | |
Common Stock, par value (in dollars per share) | $ 0.375 | $ 0.375 | |
Preferred Stock, authorized (in shares) | 1,000,000 | 1,000,000 | |
Preferred Stock, par value (in dollars per share) | $ 0.02 | $ 0.02 | |
Class of Warrant or Right | |||
Number of shares authorized for issue | 61,000,000 | ||
Preferred Stock, par value (in dollars per share) | $ 0.02 | $ 0.02 | |
Accumulated Other Comprehensive Loss, Net of Tax | |||
Foreign Currency Translation Adjustments | $ (44,585) | $ (32,090) | $ (21,991) |
Pension and retiree medical benefits | (3,647) | (6,503) | (2,980) |
Cash flow hedge | 103 | 0 | 0 |
Accumulated Other Comprehensive Loss | $ (48,129) | $ (38,593) | $ (24,971) |
Purchase Rights | |||
Stockholders' Equity Note [Abstract] | |||
Preferred Stock, par value (in dollars per share) | $ 0.02 | ||
Class of Warrant or Right | |||
Preferred Share purchase right dividend declared per common share outstanding (in shares) | 1 | ||
Preferred Stock, par value (in dollars per share) | $ 0.02 | ||
Exercise price per each Series A Junior Participating Preferred Stock (in dollars per share) | $ 100 | ||
Number of Series A Junior Participating Preferred shares the Rights holder is entitled to purchase (in shares) | 0.01 | ||
Maximum threshold of common stock ownership | 20.00% | ||
Redemption price per right | $ 0.001 | ||
Minimum threshold of common stock ownership | 10.00% | ||
Preferred Share purchase rights expiration date | Dec. 26, 2016 |
Shareholders' Equity Part 2 (De
Shareholders' Equity Part 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the year | $ (38,593) | $ (24,971) | |
Other comprehensive (loss) income before reclassifications | (10,234) | ||
Amounts reclassified from Accumulated Other Comprehensive Loss | 698 | ||
Total Other Comprehensive (Loss) Income, net of tax | 9,536 | 13,622 | $ (5,362) |
Balance at the end of the year | (48,129) | (38,593) | $ (24,971) |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the year | (32,090) | ||
Other comprehensive (loss) income before reclassifications | 12,495 | ||
Amounts reclassified from Accumulated Other Comprehensive Loss | 0 | ||
Total Other Comprehensive (Loss) Income, net of tax | (12,495) | ||
Balance at the end of the year | (44,585) | (32,090) | |
Pension and Post-retirement Benefits | |||
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the year | (6,503) | ||
Other comprehensive (loss) income before reclassifications | (2,153) | ||
Amounts reclassified from Accumulated Other Comprehensive Loss | (703) | ||
Total Other Comprehensive (Loss) Income, net of tax | 2,856 | ||
Balance at the end of the year | (3,647) | (6,503) | |
Cash Flow Hedge | |||
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the year | 0 | ||
Other comprehensive (loss) income before reclassifications | (108) | ||
Amounts reclassified from Accumulated Other Comprehensive Loss | 5 | ||
Total Other Comprehensive (Loss) Income, net of tax | 103 | ||
Balance at the end of the year | $ 103 | $ 0 |
Commitments and Contingencies68
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease expiration date | Aug. 31, 2025 | ||
Rent expense | $ 17,804 | $ 18,446 | $ 17,873 |
Minimum rentals for aggregate lease commitments | |||
2,016 | 7,707 | ||
2,017 | 5,421 | ||
2,018 | 3,856 | ||
2,019 | 2,607 | ||
2,020 | 1,663 | ||
Thereafter | 2,673 | ||
Total | 23,927 | ||
Aggregate residual value at lease expiration for vehicle leases | 11,674 | ||
Guaranteed aggregate residual value at lease expiration for vehicle leases | 9,439 | ||
Liability for the estimated end-of-term loss related to residual value guarantee | $ 290 | ||
United Kingdom | |||
Purchase Commitment | |||
Facility lease term | 10 years | ||
Future minimum payments due | $ 2,776 | ||
Australia | |||
Purchase Commitment | |||
Facility lease term | 7 years | ||
Future minimum payments due | $ 3,722 | ||
2015 Purchase Commitment | |||
Purchase Commitment | |||
Short-term purchase commitment, amount | $ 1,792 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income (Loss) from continuing operations | |||||
U.S. operations | $ 51,189 | $ 52,315 | $ 54,702 | ||
Foreign operations | (765) | 17,223 | 5,176 | ||
Profit Before Income Taxes | 50,424 | 69,538 | 59,878 | ||
Current: | |||||
Federal | 15,117 | 11,903 | 13,551 | ||
Foreign | 3,992 | 3,373 | 3,567 | ||
State | 1,685 | 1,543 | 1,136 | ||
Current Income Tax Expense | 20,794 | 16,819 | 18,254 | ||
Deferred: | |||||
Federal | (481) | 2,650 | 1,856 | ||
Foreign | (1,888) | (524) | (424) | ||
State | (89) | (58) | (39) | ||
Deferred Income Tax Expense | (2,458) | 2,068 | 1,393 | ||
Total: | |||||
Federal | 14,636 | 14,553 | 15,407 | ||
Foreign | 2,104 | 2,849 | 3,143 | ||
State | 1,596 | 1,485 | 1,097 | ||
Total Income Tax Expense | $ 18,336 | $ 18,887 | $ 19,647 | ||
Effective income tax rate reconciliation | |||||
Tax at statutory rate | 35.00% | 35.00% | 35.00% | ||
Increases (decreases) in the tax rate from: | |||||
State and local taxes, net of federal benefit | 2.20% | 1.70% | 1.70% | ||
Effect of foreign operations | (5.10%) | (4.60%) | (3.30%) | ||
Impairment of Long-Lived Assets | 7.00% | 0.00% | 0.00% | ||
Effect of changes in valuation allowances | 1.50% | (0.90%) | 3.70% | ||
Domestic production activities deduction | (2.70%) | (1.60%) | (1.60%) | ||
Other, net | (1.50%) | (2.40%) | (2.70%) | ||
Effective income tax rate | 36.40% | 27.20% | 32.80% | ||
Deferred Tax Assets: | |||||
Employee wages and benefits, principally due to accruals for financial reporting purposes | $ 16,395 | $ 16,696 | |||
Warranty reserves accrued for financial reporting purposes | 3,101 | 2,895 | |||
Receivable, principally due to allowance for doubtful accounts and tax accounting method for equipment rentals | 1,446 | 1,549 | |||
Tax loss carryforwards | 5,834 | 6,845 | |||
Tax credit carryforwards | 1,102 | 1,043 | |||
Other | 603 | 1,246 | |||
Gross Deferred Tax Assets | 28,481 | 30,274 | |||
Less: valuation allowance | (5,884) | (5,699) | |||
Total Net Deferred Tax Assets | 22,597 | 24,575 | |||
Deferred Tax Liabilities: | |||||
Inventories, principally due to changes in inventory reserves | 617 | 305 | |||
Property, Plant and Equipment, principally due to differences in depreciation and related gains | 6,619 | 6,745 | |||
Goodwill and Intangible Assets | 3,315 | 5,611 | |||
Total Deferred Tax Liabilities | 10,551 | 12,661 | |||
Net Deferred Tax Assets | 12,046 | 11,914 | |||
Reconciliation of unrecognized tax benefits | |||||
Balance at January 1, | $ 3,029 | $ 3,660 | |||
Increases as a result of tax positions taken during the current year | 532 | 610 | |||
Decreases relating to settlement with tax authorities | (72) | (6) | |||
Reductions as a result of a lapse of the applicable statute of limitations | (760) | (1,033) | |||
Decreases as a result of foreign currency fluctuations | (403) | (202) | |||
Balance at December 31, | 2,326 | 3,029 | $ 3,660 | ||
Unrecognized tax benefits that would impact the effective tax rate | 1,992 | 2,684 | |||
Unrecognized Tax Benefits | $ 3,029 | $ 3,660 | $ 3,660 | 2,326 | 3,029 |
Accrued interest and penalties | 504 | $ 557 | |||
Maximum | |||||
Income Tax General Disclosure [Abstract] | |||||
Income Tax Examination, Year under Examination | 2,014 | ||||
Minimum | |||||
Income Tax General Disclosure [Abstract] | |||||
Income Tax Examination, Year under Examination | 2,007 | ||||
U.S. | |||||
Income Tax General Disclosure [Abstract] | |||||
Undistributed earnings of non-U.S. subsidiaries | 30,786 | ||||
Dutch | |||||
Operating loss carryforwards | |||||
Tax loss carryforwards | 9,889 | ||||
Tax loss carryforwards expiration | 9 years | ||||
Foreign tax credit carryforwards | 1,102 | ||||
German | |||||
Operating loss carryforwards | |||||
Tax loss carryforwards | $ 11,834 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of stock appreciation rights outstanding | 0 | ||
Number of stock appreciation rights granted | 0 | 0 | 0 |
Share-Based Compensation Information | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of plans | 4 | ||
Share-based compensation expense | $ | $ 8,222 | $ 7,314 | $ 6,116 |
Excess Tax Benefit on Stock Plans | $ | $ 859 | $ 1,793 | $ 5,178 |
Valuation assumptions used for the 2015, 2014 and 2013 grants | |||
Expected volatility, minimum | 32.00% | 47.00% | 51.00% |
Expected volatiity, maximum | 36.00% | 50.00% | 51.00% |
Weighted-average expected volatility | 36.00% | 50.00% | 51.00% |
Expected dividend yield, minimum | 1.10% | 1.10% | |
Expected dividend yield, maximum | 1.20% | 1.30% | |
Expected dividend yield | 1.60% | ||
Weighted-average expected dividend yield | 1.20% | 1.30% | 1.60% |
Expected term, in years | 5 years | 6 years | 6 years |
Risk-free interest rate, minimum | 1.40% | 1.80% | 0.90% |
Risk-free interest rate, maximum | 2.00% | 2.00% | 1.10% |
Share-based Compensation Arrangement by Share-based Payment Award Additional Disclosures | |||
Weighted-average remaining contractual life for options outstanding (in years) | 6 years | ||
Weighted-average remaining contractual life for options exercisable (in years) | 5 years | ||
Fair value of shares vested | $ | $ 0 | ||
2010 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares authorized for future awards (in shares) | 1,500,000 | ||
Amended 2010 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares authorized for future awards (in shares) | 2,600,000 | ||
Shares reserved for issuance (in shares) | 1,078,271 | ||
All Plans Excluding 2010 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares reserved for issuance (in shares) | 262,498 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Ratio of new awards that vest each year | one-third | ||
Vesting period of new awards granted (in years) | 3 years | ||
Contractual term of new awards (in years) | 10 years | ||
Shares activity | |||
Outstanding at beginning of year (in shares) | 908,030 | ||
Granted (in shares) | 177,020 | ||
Exercised (in shares) | (54,060) | ||
Forfeited (in shares) | (10,814) | ||
Expired (in shares) | (1,218) | ||
Outstanding at end of year (in shares) | 1,018,958 | 908,030 | |
Exercisable at end of year (in shares) | 756,470 | ||
Weighted-Average Exercise Price | |||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 34.21 | ||
Granted (in dollars per share) | $ / shares | 66.49 | ||
Exercised (in dollars per share) | $ / shares | 31.03 | ||
Forfeited (in dollars per share) | $ / shares | 59.22 | ||
Expired (in dollars per share) | $ / shares | 60.67 | ||
Outstanding at end of year (in dollars per share) | $ / shares | 39.69 | $ 34.21 | |
Exercisable at end of year | $ / shares | 31.68 | ||
Share-based Compensation Arrangement by Share-based Payment Award Additional Disclosures | |||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 20.08 | $ 26.93 | $ 19.62 |
Total intrinsic value of stock options exercised | $ | $ 1,702 | $ 2,972 | $ 15,641 |
Aggregate intrinsic value of options outstanding | $ | 19,260 | ||
Aggregate intrinsic value of options exercisable | $ | 18,926 | ||
Unrecognized compensation cost for nonvested options | $ | $ 2,187 | ||
Compensation cost not yet recognized, weighted-average period for recognition (in years) | 1 year 2 months 30 days | ||
Restricted Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period of new awards granted (in years) | 3 years | ||
Shares activity | |||
Nonvested at beginning of year (in shares) | 144,475 | ||
Granted (in shares) | 23,048 | ||
Vested (in shares) | (24,245) | ||
Forfeited (in shares) | (4,459) | ||
Nonvested at end of year (in shares) | 138,819 | 144,475 | |
Weighted-Average Exercise Price | |||
Nonvested at beginning of year (in dollars per share) | $ / shares | $ 40.51 | ||
Granted (in dollars per share) | $ / shares | 66.33 | ||
Vested (in dollars per share) | $ / shares | 43.47 | ||
Forfeited (in dollars per share) | $ / shares | 55.96 | ||
Nonvested at end of year (in dollars per share) | $ / shares | $ 43.83 | $ 40.51 | |
Share-based Compensation Arrangement by Share-based Payment Award Additional Disclosures | |||
Fair value of shares vested | $ | $ 1,054 | $ 827 | 643 |
Unrecognized compensation cost for nonvested options | $ | $ 1,568 | ||
Compensation cost not yet recognized, weighted-average period for recognition (in years) | 1 year 10 months | ||
Performance Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Maximum increase in the number of shares of common stock a participant receives based on the achievement of performance goals (as a percent) | 200.00% | ||
Lowest potential number of shares of common stock that could be received based on the achievement level of performance goals | 0 | ||
Shares activity | |||
Nonvested at beginning of year (in shares) | 152,555 | ||
Granted (in shares) | 50,010 | ||
Vested (in shares) | (38,902) | ||
Forfeited (in shares) | (22,289) | ||
Nonvested at end of year (in shares) | 141,374 | 152,555 | |
Weighted-Average Exercise Price | |||
Nonvested at beginning of year (in dollars per share) | $ / shares | $ 49.20 | ||
Granted (in dollars per share) | $ / shares | 66.63 | ||
Vested (in dollars per share) | $ / shares | 44.03 | ||
Forfeited (in dollars per share) | $ / shares | 53.75 | ||
Nonvested at end of year (in dollars per share) | $ / shares | $ 56.07 | $ 49.20 | |
Share-based Compensation Arrangement by Share-based Payment Award Additional Disclosures | |||
Fair value of shares vested | $ | $ 1,713 | $ 4,346 | 0 |
Unrecognized compensation cost for nonvested options | $ | $ 2,660 | ||
Compensation cost not yet recognized, weighted-average period for recognition (in years) | 1 year 8 months | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period of new awards granted (in years) | 3 years | ||
Shares activity | |||
Nonvested at beginning of year (in shares) | 16,549 | ||
Granted (in shares) | 18,061 | ||
Vested (in shares) | (150) | ||
Forfeited (in shares) | (1,814) | ||
Nonvested at end of year (in shares) | 32,646 | 16,549 | |
Weighted-Average Exercise Price | |||
Nonvested at beginning of year (in dollars per share) | $ / shares | $ 69.24 | ||
Granted (in dollars per share) | $ / shares | 64.58 | ||
Vested (in dollars per share) | $ / shares | 65.26 | ||
Forfeited (in dollars per share) | $ / shares | 65.52 | ||
Nonvested at end of year (in dollars per share) | $ / shares | $ 66.89 | $ 69.24 | |
Share-based Compensation Arrangement by Share-based Payment Award Additional Disclosures | |||
Fair value of shares vested | $ | $ 10 | 0 | |
Unrecognized compensation cost for nonvested options | $ | $ 1,078 | ||
Compensation cost not yet recognized, weighted-average period for recognition (in years) | 1 year 2 months | ||
Share-Based Liabilities | |||
Share-based Compensation Arrangement by Share-based Payment Award Additional Disclosures | |||
Total share-based liabilities | $ | $ 149 | $ 139 | |
Amounts paid out related to share-based liability awards | $ | $ 53 | $ 275 | $ 3,134 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||||||||||
Net Earnings | $ 13,196 | $ (951) | $ 14,817 | $ 5,026 | $ 17,541 | $ 11,792 | $ 15,523 | $ 5,795 | $ 32,088 | $ 50,651 | $ 40,231 |
Basic - Weighted Average Shares Outstanding | 18,015,151 | 18,217,384 | 18,297,371 | ||||||||
Effect of dilutive securities | 478,296 | 523,474 | 536,082 | ||||||||
Diluted - Weighted Average Shares Outstanding | 18,493,447 | 18,740,858 | 18,833,453 | ||||||||
Basic Earnings per Share | $ 0.74 | $ (0.05) | $ 0.81 | $ 0.27 | $ 0.96 | $ 0.65 | $ 0.85 | $ 0.32 | $ 1.78 | $ 2.78 | $ 2.20 |
Diluted Earnings per Share | $ 0.73 | $ (0.05) | $ 0.79 | $ 0.27 | $ 0.93 | $ 0.63 | $ 0.83 | $ 0.31 | $ 1.74 | $ 2.70 | $ 2.14 |
Anti-dilutive securities excluded from earnings per share calculation (in shares) | 222,092 | 91,199 | 132,803 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | 4 | ||||||||||
Number of reportable segments | 1 | ||||||||||
Number of customers exceeding ten percent of net sales | 0 | ||||||||||
Concentration Risk, Percentage | 10.00% | ||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | $ 205,853 | $ 204,802 | $ 215,404 | $ 185,740 | $ 216,277 | $ 202,643 | $ 219,084 | $ 183,979 | $ 811,799 | $ 821,983 | $ 752,011 |
Long-Lived Assets | 126,600 | 131,678 | 126,600 | 131,678 | 138,587 | ||||||
Equipment | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 499,634 | 500,141 | 444,773 | ||||||||
Parts and consumables | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 175,697 | 182,845 | 176,442 | ||||||||
Service and other | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 112,622 | 114,027 | 109,533 | ||||||||
Specialty surface coatings | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 23,846 | 24,970 | 21,263 | ||||||||
Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 591,405 | 569,004 | 514,544 | ||||||||
Long-Lived Assets | 110,842 | 103,958 | 110,842 | 103,958 | 106,409 | ||||||
Europe, Middle East, Africa | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 139,834 | 165,686 | 157,208 | ||||||||
Long-Lived Assets | 11,100 | 24,051 | 11,100 | 24,051 | 28,296 | ||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 80,560 | 87,293 | 80,259 | ||||||||
Long-Lived Assets | $ 4,658 | $ 3,669 | $ 4,658 | $ 3,669 | $ 3,882 |
Consolidated Quarterly Data (De
Consolidated Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly financial data | |||||||||||
Net Sales | $ 205,853 | $ 204,802 | $ 215,404 | $ 185,740 | $ 216,277 | $ 202,643 | $ 219,084 | $ 183,979 | $ 811,799 | $ 821,983 | $ 752,011 |
Gross Profit | 87,289 | 88,657 | 95,033 | 78,081 | 93,084 | 87,163 | 95,263 | 76,917 | 349,060 | 352,427 | 325,908 |
Net Earnings (Loss) | $ 13,196 | $ (951) | $ 14,817 | $ 5,026 | $ 17,541 | $ 11,792 | $ 15,523 | $ 5,795 | $ 32,088 | $ 50,651 | $ 40,231 |
Earnings Per Share, Basic | $ 0.74 | $ (0.05) | $ 0.81 | $ 0.27 | $ 0.96 | $ 0.65 | $ 0.85 | $ 0.32 | $ 1.78 | $ 2.78 | $ 2.20 |
Earnings Per Share, Diluted | 0.73 | (0.05) | 0.79 | 0.27 | 0.93 | 0.63 | 0.83 | 0.31 | 1.74 | 2.70 | 2.14 |
Cash Dividends Declared per Common Share | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.18 | $ 0.80 | $ 0.78 | $ 0.72 |
Schedule II Valuation and Qua74
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Valuation and Qualifying Accounts Disclosure | ||||
Balance at beginning of year | $ 3,936 | |||
Balance at end of year | 3,615 | $ 3,936 | ||
Allowance for Doubtful Accounts and Returns | ||||
Valuation and Qualifying Accounts Disclosure | ||||
Balance at beginning of year | 3,936 | 4,526 | $ 4,399 | |
Charged to costs and expenses | 1,087 | 999 | 1,279 | |
Reclassification | [1] | 172 | 0 | 0 |
Charged to other accounts | [2] | (159) | (319) | (102) |
Deductions | [3] | (1,421) | (1,270) | (1,254) |
Balance at end of year | 3,615 | 3,936 | 4,526 | |
Inventory Reserves | ||||
Valuation and Qualifying Accounts Disclosure | ||||
Balance at beginning of year | 3,272 | 3,250 | 3,724 | |
Charged to costs and expenses | 1,728 | 622 | 1,044 | |
Charged to other accounts | [2] | (160) | (194) | (88) |
Deductions | [4] | (1,300) | (406) | (1,430) |
Balance at end of year | 3,540 | 3,272 | 3,250 | |
Valuation Allowance for Deferred Tax Assets | ||||
Valuation and Qualifying Accounts Disclosure | ||||
Balance at beginning of year | 5,699 | 7,243 | 4,719 | |
Charged to costs and expenses | 734 | (636) | 2,239 | |
Charged to other accounts | [2] | (549) | (908) | 285 |
Balance at end of year | $ 5,884 | $ 5,699 | $ 7,243 | |
[1] | Includes amount reclassified from Other Current Liabilities to Allowance for Doubtful Accounts to properly classify a customer's open receivables balance. | |||
[2] | Primarily includes impact from foreign currency fluctuations | |||
[3] | Includes accounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves. | |||
[4] | Includes inventory identified as excess, slow moving or obsolete and charged against reserves. |