Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
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 | $ 1,292,419,327 | ||
Entity Common Stock, Shares Outstanding | 17,881,327 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net Sales | $ 1,003,066 | $ 808,572 | $ 811,799 |
Cost of Sales | 598,645 | 456,977 | 462,739 |
Gross Profit | 404,421 | 351,595 | 349,060 |
Operating Expense: | |||
Research and Development Expense | 32,013 | 34,738 | 32,415 |
Selling and Administrative Expense | 345,364 | 248,210 | 252,270 |
Impairment of Long-Lived Assets | 0 | 0 | 11,199 |
Loss on Sale of Business | 0 | 149 | 0 |
Total Operating Expense | 377,377 | 283,097 | 295,884 |
Profit from Operations | 27,044 | 68,498 | 53,176 |
Other Income (Expense): | |||
Interest Income | 2,405 | 330 | 172 |
Interest Expense | (25,394) | (1,279) | (1,313) |
Net Foreign Currency Transaction Losses | (3,387) | (392) | (954) |
Other Expense, Net | (1,960) | (666) | (657) |
Total Other Expense, Net | (28,336) | (2,007) | (2,752) |
(Loss) Profit Before Income Taxes | (1,292) | 66,491 | 50,424 |
Income Tax Expense | 4,913 | 19,877 | 18,336 |
Net (Loss) Earnings Including Noncontrolling Interest | (6,205) | 46,614 | 32,088 |
Net Loss Attributable to Noncontrolling Interest | (10) | 0 | 0 |
Net (Loss) Earnings Attributable to Tennant Company | $ (6,195) | $ 46,614 | $ 32,088 |
Net (Loss) Earnings Attributable to Tennant Company per Share: | |||
Basic (in dollars per share) | $ (0.35) | $ 2.66 | $ 1.78 |
Diluted (in dollars per share) | $ (0.35) | $ 2.59 | $ 1.74 |
Weighted Average Shares Outstanding: | |||
Basic (in shares) | 17,695,390 | 17,523,267 | 18,015,151 |
Diluted (in shares) | 17,695,390 | 17,976,183 | 18,493,447 |
Cash Dividends Declared per Common Share | $ 0.84 | $ 0.81 | $ 0.80 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net (Loss) Earnings Including Noncontrolling Interest | $ (6,205) | $ 46,614 | $ 32,088 |
Other Comprehensive Income (Loss): | |||
Foreign currency translation adjustments | 28,356 | 109 | (12,520) |
Pension and retiree medical benefits | 5,868 | (2,248) | 4,121 |
Cash flow hedge | (7,731) | (305) | 164 |
Income Taxes: | |||
Foreign currency translation adjustments | 310 | 32 | 25 |
Pension and retiree medical benefits | (2,087) | 504 | (1,265) |
Cash flow hedge | 2,884 | 114 | (61) |
Total Other Comprehensive Income (Loss), net of tax | 27,600 | (1,794) | (9,536) |
Total Comprehensive Income Including Noncontrolling Interest | 21,395 | 44,820 | 22,552 |
Comprehensive Loss Attributable to Noncontrolling Interest | (10) | 0 | 0 |
Comprehensive Income Attributable to Tennant Company | $ 21,405 | $ 44,820 | $ 22,552 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and Cash Equivalents | $ 58,398 | $ 58,033 |
Restricted Cash | 653 | 517 |
Receivables: | ||
Trade, less Allowances of $3,241 and $3,108, respectively | 203,280 | 145,299 |
Other | 6,236 | 3,835 |
Net Receivables | 209,516 | 149,134 |
Inventories | 127,694 | 78,622 |
Prepaid Expenses | 19,351 | 9,204 |
Other Current Assets | 7,503 | 2,412 |
Total Current Assets | 423,115 | 297,922 |
Property, Plant and Equipment | 382,768 | 298,500 |
Accumulated Depreciation | (202,750) | (186,403) |
Property, Plant and Equipment, Net | 180,018 | 112,097 |
Deferred Income Taxes | 11,134 | 13,439 |
Goodwill | 186,044 | 21,065 |
Intangible Assets, Net | 172,347 | 6,460 |
Other Assets | 21,319 | 19,054 |
Total Assets | 993,977 | 470,037 |
Current Liabilities: | ||
Current Portion of Long-Term Debt | 30,883 | 3,459 |
Accounts Payable | 96,082 | 47,408 |
Employee Compensation and Benefits | 37,257 | 35,997 |
Income Taxes Payable | 2,838 | 2,348 |
Other Current Liabilities | 69,447 | 43,617 |
Total Current Liabilities | 236,507 | 132,829 |
Long-Term Liabilities: | ||
Long-Term Debt | 345,956 | 32,735 |
Employee-Related Benefits | 23,867 | 21,134 |
Deferred Income Taxes | 53,225 | 171 |
Other Liabilities | 35,948 | 4,625 |
Total Long-Term Liabilities | 458,996 | 58,665 |
Total Liabilities | 695,503 | 191,494 |
Commitments and Contingencies (Note 15) | ||
Equity: | ||
Common Stock, $0.375 par value per share, 60,000,000 shares authorized; 17,881,177 and 17,688,350 issued and outstanding, respectively | 6,705 | 6,633 |
Additional Paid-In Capital | 15,089 | 3,653 |
Retained Earnings | 297,032 | 318,180 |
Accumulated Other Comprehensive Loss | (22,323) | (49,923) |
Total Tennant Company Shareholders' Equity | 296,503 | 278,543 |
Noncontrolling Interest | 1,971 | 0 |
Total Equity | 298,474 | 278,543 |
Total Liabilities and Total Equity | $ 993,977 | $ 470,037 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Allowance for Doubtful Receivables and Sales Returns | $ 3,241 | $ 3,108 |
Equity: | ||
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) | 17,881,177 | 17,688,350 |
Common Stock, outstanding (in shares) | 17,881,177 | 17,688,350 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES | |||
Net (Loss) Earnings Including Noncontrolling Interest | $ (6,205) | $ 46,614 | $ 32,088 |
Adjustments to Reconcile Net (Loss) Earnings to Net Cash Provided by Operating Activities: | |||
Depreciation | 26,199 | 17,891 | 16,550 |
Amortization of Intangible Assets | 17,054 | 409 | 1,481 |
Amortization of Debt Issuance Costs | 1,779 | 0 | 0 |
Debt Issuance Cost Charges Related to Short-Term Financing | 6,200 | 0 | 0 |
Fair Value Step-Up Adjustment to Acquired Inventory | 7,245 | 0 | 0 |
Impairment of Long-Lived Assets | 0 | 0 | 11,199 |
Deferred Income Taxes | (6,095) | (1,172) | (1,129) |
Share-Based Compensation Expense | 5,891 | 3,875 | 8,222 |
Allowance for Doubtful Accounts and Returns | 1,602 | 468 | 1,089 |
Loss on Sale of Business | 0 | 149 | 0 |
Other, Net | 364 | (345) | (100) |
Changes in Operating Assets and Liabilities, Net of Assets Acquired: | |||
Receivables, Net | (14,381) | (9,278) | 4,547 |
Inventories | (2,898) | 23 | (10,190) |
Accounts Payable | 10,849 | (3,904) | (10,455) |
Employee Compensation and Benefits | (7,780) | 124 | 716 |
Other Current Liabilities | 14,560 | (185) | (402) |
Income Taxes | 285 | 5,427 | (4,283) |
Other Assets and Liabilities | (495) | (2,218) | (4,101) |
Net Cash Provided by Operating Activities | 54,174 | 57,878 | 45,232 |
INVESTING ACTIVITIES | |||
Purchases of Property, Plant and Equipment | (20,437) | (26,526) | (24,780) |
Proceeds from Disposals of Property, Plant and Equipment | 2,511 | 615 | 336 |
Proceeds from Principal Payments Received on Long-Term Note Receivable | 667 | 0 | 0 |
Issuance of Long-Term Note Receivable | (1,500) | (2,000) | 0 |
Acquisitions of Businesses, Net of Cash Acquired | (354,073) | (12,933) | 0 |
Purchase of Intangible Asset | (2,500) | 0 | 0 |
Proceeds from Sale of Business | 0 | 285 | 1,185 |
(Increase) Decrease in Restricted Cash | (92) | 116 | (322) |
Net Cash Used in Investing Activities | (375,424) | (40,443) | (23,581) |
FINANCING ACTIVITIES | |||
Proceeds from Short-Term Debt | 303,000 | 0 | 0 |
Repayments of Short-Term Debt | (303,000) | 0 | 0 |
Proceeds from Issuance of Long-Term Debt | 440,000 | 15,000 | 0 |
Payments of Long-Term Debt | (96,248) | (3,460) | (3,445) |
Payments of Debt Issuance Costs | (16,482) | 0 | 0 |
Change in Capital Lease Obligations | 311 | 0 | 0 |
Purchases of Common Stock | 0 | (12,762) | (45,998) |
Proceeds from Issuances of Common Stock | 6,875 | 5,271 | 1,677 |
Excess Tax Benefit on Stock Plans | 0 | 686 | 859 |
Purchase of Noncontrolling Owner Interest | (30) | 0 | 0 |
Dividends Paid | (14,953) | (14,293) | (14,498) |
Net Cash Provided by (Used in) Financing Activities | 319,473 | (9,558) | (61,405) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 2,142 | (1,144) | (1,908) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 365 | 6,733 | (41,662) |
Cash and Cash Equivalents at Beginning of Year | 58,033 | 51,300 | 92,962 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 58,398 | 58,033 | 51,300 |
Cash Paid During the Year for: | |||
Income Taxes | 13,542 | 14,172 | 23,421 |
Interest | 14,228 | 1,135 | 1,167 |
Supplemental Non-Cash Investing and Financing Activities: | |||
Long-Term Note Receivable from Sale of Business | 0 | 5,489 | 0 |
Capital Expenditures in Accounts Payable | $ 2,167 | $ 2,045 | $ 1,830 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Tennant Company Shareholders' Equity | Noncontrolling Interest |
Beginning balance at Dec. 31, 2014 | $ 280,651 | $ 6,906 | $ 26,247 | $ 286,091 | $ (38,593) | $ 280,651 | $ 0 |
Balance (in shares) at Dec. 31, 2014 | 18,415,047 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net (Loss) Earnings | 32,088 | $ 0 | 0 | 32,088 | 0 | 32,088 | 0 |
Other Comprehensive Income (Loss) | (9,536) | $ 0 | 0 | 0 | (9,536) | (9,536) | 0 |
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings (23,160, 23,113 and 16,990 shares) (in shares) | 93,380 | ||||||
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings (23,160, 23,113 and 16,990 shares) | 419 | $ 35 | 384 | 0 | 0 | 419 | 0 |
Share-Based Compensation | 8,222 | 0 | 8,222 | 0 | 0 | 8,222 | 0 |
Dividends paid ($0.80, $0.81 and $0.84) per Common Share | (14,498) | 0 | 0 | (14,498) | 0 | (14,498) | 0 |
Tax Benefit on Stock Plans | 859 | $ 0 | 859 | 0 | 0 | 859 | 0 |
Purchases of Common Stock (in shares) | (764,046) | ||||||
Purchases of Common Stock | (45,998) | $ (287) | (35,712) | (9,999) | 0 | (45,998) | 0 |
Balance (in shares) at Dec. 31, 2015 | 17,744,381 | ||||||
Ending balance at Dec. 31, 2015 | 252,207 | $ 6,654 | 0 | 293,682 | (48,129) | 252,207 | 0 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (Loss) Earnings | 46,614 | 0 | 0 | 46,614 | 0 | 46,614 | 0 |
Other Comprehensive Income (Loss) | (1,794) | $ 0 | 0 | 0 | (1,794) | (1,794) | 0 |
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings (23,160, 23,113 and 16,990 shares) (in shares) | 190,443 | ||||||
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings (23,160, 23,113 and 16,990 shares) | 4,010 | $ 71 | 3,939 | 0 | 0 | 4,010 | 0 |
Share-Based Compensation | 3,875 | 0 | 3,875 | 0 | 0 | 3,875 | 0 |
Dividends paid ($0.80, $0.81 and $0.84) per Common Share | (14,293) | 0 | 0 | (14,293) | 0 | (14,293) | 0 |
Tax Benefit on Stock Plans | 686 | $ 0 | 686 | 0 | 0 | 686 | 0 |
Purchases of Common Stock (in shares) | (246,474) | ||||||
Purchases of Common Stock | $ (12,762) | $ (92) | (4,847) | (7,823) | 0 | (12,762) | 0 |
Balance (in shares) at Dec. 31, 2016 | 17,688,350 | 17,688,350 | |||||
Ending balance at Dec. 31, 2016 | $ 278,543 | $ 6,633 | 3,653 | 318,180 | (49,923) | 278,543 | 0 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (Loss) Earnings | (6,205) | 0 | 0 | (6,195) | 0 | (6,195) | (10) |
Other Comprehensive Income (Loss) | 27,600 | $ 0 | 0 | 0 | 27,600 | 27,600 | 0 |
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings (23,160, 23,113 and 16,990 shares) (in shares) | 192,827 | ||||||
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings (23,160, 23,113 and 16,990 shares) | 5,617 | $ 72 | 5,545 | 0 | 0 | 5,617 | 0 |
Share-Based Compensation | 5,891 | 0 | 5,891 | 0 | 0 | 5,891 | 0 |
Dividends paid ($0.80, $0.81 and $0.84) per Common Share | (14,953) | 0 | 0 | (14,953) | 0 | (14,953) | 0 |
Tax Benefit on Stock Plans | 2,028 | $ 0 | 0 | 0 | 0 | 0 | 2,028 |
Purchases of Common Stock (in shares) | 0 | ||||||
Purchases of Common Stock | (30) | $ 0 | 0 | 0 | 0 | 0 | (30) |
Other | $ (17) | $ 0 | 0 | 0 | 0 | 0 | (17) |
Balance (in shares) at Dec. 31, 2017 | 17,881,177 | 17,881,177 | |||||
Ending balance at Dec. 31, 2017 | $ 298,474 | $ 6,705 | $ 15,089 | $ 297,032 | $ (22,323) | $ 296,503 | $ 1,971 |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Tax withholdings for Directors, Employee Benefit and Stock Plans (in shares) | 16,990 | 23,113 | 23,160 |
Dividends paid per Common Share (in dollars per share) | $ 0.84 | $ 0.81 | $ 0.80 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Operations – Tennant Company is a world leader 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 offers products and solutions consisting of mechanized cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, specialty surface coatings, and business solutions such as financing, rental and leasing programs, and machine-to-machine 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. In April 2017, the Company completed its acquisition of the IPC Group business. IPC manufactures a complete range of commercial cleaning products including mechanized cleaning equipment, wet & dry vacuum cleaners, cleaning tools & carts and high pressure washers. These products are sold into similar vertical market applications as those listed above, but also into office cleaning and hospitality vertical markets through a global direct sales and service organization and network of distributors. IPC markets products and services under the following valued brands: IPC, Gansow, Vaclensa, Portotecnica, Soteco and private-label brands. 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, 2017 , 2016 and 2015 was a net loss of $15,778 , $44,444 and $44,585 , 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 $653 as of December 31, 2017 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 net realizable value. 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 . Equity Method Investment – Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other Assets on the Consolidated Balance Sheets. Under this method of accounting, our share of the net earnings or losses of the investee are presented as a component of Other Expense, Net on the Consolidated Statements of Operations. The detail regarding our equity method investment in i-team North America B.V., a joint venture that operates as the distributor of the i-mop in North America, are further described in Note 3. 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 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 quantitative impairment test. Intangible Assets – Intangible Assets consist of definite lived customer lists, trade names and technology. Generally, intangible assets classified as trade names are amortized on a straight-line basis and intangible assets classified as customer lists or technology are amortized using an accelerated method of amortization. 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 in 2015; 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 Operations. Purchase of Common Stock – We repurchase our Common Stock under 2016 and 2015 repurchase programs authorized by our Board of Directors. These programs allow us to repurchase up to an aggregate of 1,393,965 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. Debt Issuance Costs – We record all applicable debt issuance costs related to a recognized debt liability in the Consolidated Balance Sheets as a direct deduction from the carrying amount of the debt liability, if not a line-of-credit arrangement. All debt issuance costs related to line-of-credit arrangements are recorded as part of Other Assets in the Consolidated Balance Sheets and subsequently amortized over the term of the line-of-credit arrangement. We amortize our debt issuance costs using the effective interest method over the term of the debt instrument or line-of-credit arrangement. Amortization of these costs is included as part of Interest Expense in the Consolidated Statements of Operations. 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 – Substantially all U.S. employees are covered by various retirement benefit plans, including postretirement medical plans and defined contribution savings plans. Pension plan costs are accrued based on actuarial estimates with the required pension cost funded annually, as needed. No new participants have entered the defined benefit pension plan since 2000. For further details regarding our pension and profit sharing plans, see Note 13. 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 Operations. 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 Operations 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 Operations. 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. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) . This ASU will replace all existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements. This guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. This guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. We adopted the new standard effective January 1, 2018. The adoption of this ASU did not have a material impact on our financial condition, results of operations or cash flows, other than additional disclosure requirements. 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 2017 , 2016 and 2015 such activities amounted to $8,228 , $7,269 and $7,418 , 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 (loss) earnings per share is computed by dividing Net (Loss) Earnings Attributable to Tennant Company by the Weighted Average Shares Outstanding during the period. Diluted earnings per share assumes conversion of potentially dilutive stock options, performance shares, restricted shares and restricted stock units. These conversions are not included in our computation of diluted earnings per share if we have a net loss attributable to Tennant Company in a reporting period, as the effects are anti-dilutive. New Accounting Pronouncements – In accordance with ASU No. 2016-09, Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , all excess tax benefits and tax deficiencies are recorded as a component of the provision for income taxes in the reporting period in which they occur. Additionally, we present excess tax benefits along with other income tax cash flows on the Consolidated Statements of Cash Flows as an operating activity rather than, as previously required, a financing activity. For further details regarding the implementation of this ASU and the impact on our financial statements, see Note 2. |
Investment in Joint Venture
Investment in Joint Venture | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Investment in Joint Venture | 3. Investment in Joint Venture On February 13, 2017, the company, through a Dutch subsidiary, and i-team Global, a Future Cleaning Technologies, B.V. company headquartered in The Netherlands, announced the January 1, 2017 formation of i-team North America B.V., a joint venture that will operate as the distributor of the i-mop in North America. We began selling and servicing the i-mop in the second quarter of 2017. We own a 50% ownership interest in the joint venture, which is accounted for under the equity method of accounting, with our proportionate share of income or loss presented as a component of Other Expense, Net on the Consolidated Statements of Operations. In 2017 , this amount is immaterial. As of December 31, 2017 , the carrying value of the company's investment in the joint venture was $75 . In March 2017, we issued a $1,500 loan to the joint venture and, as a result, recorded a long-term note receivable in Other Assets on the Consolidated Balance Sheets. |
Newly Adopted Accounting Pronou
Newly Adopted Accounting Pronouncements (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Newly Adopted Accounting Pronouncements | 2. Newly Adopted Accounting Pronouncements On March 30, 2016, the FASB issued ASU 2016-09, Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which amends Accounting Standards Codification ("ASC") Topic 718, Compensation–Stock Compensation . ASU 2016-09 simplifies several aspects of the accounting for share-based payment transaction, including the income tax consequences, classification of awards as either equity or liabilities and classification on the Consolidated Statements of Cash Flows. Under the new standard, all excess tax benefits and tax deficiencies are recorded as a component of the provision for income taxes in the reporting period in which they occur. Additionally, ASU 2016-09 requires that the company present excess tax benefits along with other income tax cash flows on the Consolidated Statements of Cash Flows as an operating activity rather than, as previously required, a financing activity. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016. We have adopted ASU 2016-09 effective January 1, 2017 on a prospective basis where permitted by the new standard. As a result of this adoption: • In 2017 , we recognized discrete tax benefits of $1,168 in the Income Tax Expense line item of our Consolidated Statements of Operations related to excess tax benefits upon vesting or settlement in that period. • We elected to adopt the cash flow presentation of the excess tax benefits prospectively where the tax benefits are classified along with other income tax cash flows as operating cash flows in 2017 . Our 2016 and 2015 excess tax benefits are recognized as financing cash flows. However, other income tax cash flows are classified as operating cash flows. • We have elected to account for forfeitures as they occur, rather than electing to estimate the number of share-based awards expected to vest to determine the amount of compensation cost to be recognized in each period. The difference of such change is immaterial. |
Management Actions (Notes)
Management Actions (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | 4. Management Actions During the first quarter of 2017 , we implemented a restructuring action to better align our global resources and expense structure with a lower growth global economic environment. The pre-tax charge of $8,018 , including other associated costs of $961 , consisted primarily of severance and was included within Selling and Administrative Expense in the Consolidated Statements of Operations. The charge impacted our Americas, Europe, Middle East and Africa ("EMEA") and Asia Pacific ("APAC") operating segments. We believe the anticipated savings will offset the pre-tax charge in approximately one year from the date of the action. We do not expect additional costs will be incurred related to this restructuring action. During the fourth quarter of 2017 , we implemented a restructuring action primarily driven by integration actions related to our acquisition of IP Cleaning S.p.A and its subsidiaries ("IPC Group"). See Note 5 for further details regarding our acquisition of the IPC Group. The restructuring action consisted primarily of severance and includes reductions in overall staffing to streamline and right-size the organization to support anticipated business requirements. The pre-tax charge of $2,501 was included within Selling and Administrative Expense in the Consolidated Statements of Operations. The charge impacted our Americas, EMEA and APAC operating segments. We believe the anticipated savings will offset the pre-tax charge in approximately one year from the date of the action. We do not expect additional costs will be incurred related to this restructuring action. A reconciliation to the ending liability balance of severance and related costs as of December 31, 2017 is as follows: Severance and Related Costs 2017 restructuring actions $ 9,558 Cash payments (6,312 ) Foreign currency adjustments 190 December 31, 2017 Balance $ 3,436 |
Acquisitions (Notes)
Acquisitions (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions IP Cleaning S.p.A. On April 6, 2017, we acquired 100 percent of the outstanding capital stock of IP Cleaning S.p.A. and its subsidiaries ("IPC Group") for a purchase price of $353,769 , net of cash acquired of $8,804 . The primary seller was Ambienta SGR S.p.A., a European private equity fund. IPC Group, based in Italy, is a designer and manufacturer of innovative professional cleaning equipment, cleaning tools and supplies. The acquisition strengthens our presence and market share in Europe and will allow us to better leverage our EMEA cost structure. We funded the acquisition of IPC Group, along with related fees, including refinancing of existing debt, with funds raised through borrowings under a senior secured credit facility in an aggregate principal amount of $420,000 . Further details regarding our acquisition financing arrangements are discussed in Note 9. The following table summarizes the preliminary fair value measurement of the assets acquired and liabilities assumed as of the date of acquisition: ASSETS Receivables $ 39,984 Inventories 46,442 Other Current Assets 5,314 Assets Held for Sale 2,247 Property, Plant and Equipment 63,890 Intangible Assets Subject to Amortization: Trade Name 26,753 Customer Lists 123,061 Technology 9,631 Other Assets 8,261 Total Identifiable Assets Acquired 325,583 LIABILITIES Accounts Payable 32,227 Accrued Expenses 15,611 Deferred Income Taxes 60,433 Other Liabilities 9,360 Total Identifiable Liabilities Assumed 117,631 Net Identifiable Assets Acquired 207,952 Noncontrolling Interest (2,028 ) Goodwill 147,845 Total Estimated Purchase Price, net of Cash Acquired $ 353,769 The acquired assets, liabilities and operating results have been included in our Consolidated Financial Statements from the date of acquisition. During 2017, we included net sales of $174,444 and a net loss of $14,483 from IPC Group in our Consolidated Statements of Operations. The net loss includes a fair value adjustment, net of tax, of $5,237 to the acquired inventory of IPC Group. In addition, costs of $10,408 , net of tax, associated with the acquisition of the IPC Group were expensed as incurred in the 2017 Consolidated Statement of Operations. The preliminary gross amount of the accounts receivable acquired is $44,654 , of which $4,670 is expected to be uncollectible. The fair value measurements were final at December 31, 2017, with the exception of the fair value of accounts receivable, inventory excess and obsolescence reserves, intangible assets subject to amortization, goodwill, warranty, income tax payable and deferred income taxes. We expect the fair value measurement process to be completed no later than one year from the acquisition date. Goodwill was calculated as the difference between the acquisition date fair value of the total purchase price consideration and the fair value of the net identifiable assets acquired, and represents the future economic benefits that we expect to achieve as a result of the acquisition. This resulted in an estimated purchase price in excess of the fair value of identifiable net assets acquired. The estimated purchase price also included the fair value of other assets that were not identifiable and not separately recognizable under accounting rules (e.g., assembled workforce) or these assets were of immaterial value. In addition, there is a going concern element that represents our ability to earn a higher rate of return on the group of assets than would be expected on the separate assets as determined during the valuation process. Based on preliminary fair value measurement of the assets acquired and liabilities assumed, we allocated $147,845 to goodwill for the expected synergies from combining IPC Group with our existing business. None of the goodwill is expected to be deductible for income tax purposes. The assignment of goodwill to reporting units is not complete, pending finalization of the valuation measurements. The fair value of acquired identifiable intangible assets was primarily determined using discounted expected cash flows. The fair value of acquired identifiable tangible assets was primarily determined using the cost or market approach. The valuations were based on the information that was available as of the acquisition date and the expectations and assumptions that have been deemed reasonable by us. There are inherent uncertainties and management judgment required in these determinations. The fair value measurements of the assets acquired and liabilities assumed were based on valuations involving significant unobservable inputs, or Level 3 in the fair value hierarchy. The preliminary fair value of the acquired intangible assets is $159,445 . The expected lives of the acquired amortizable intangible assets are approximately 15 years for customer lists, 10 years for trade names and 10 years for technology. Trade names are being amortized on a straight-line basis while the customer lists and technology are being amortized on an accelerated basis. We recorded amortization expense of $15,746 in Selling and Administrative Expense on our Consolidated Statements of Operations for these acquired intangible assets in 2017. The following unaudited pro forma financial information presents the combined results of operations of Tennant Company as if the acquisition of IPC Group had occurred as of January 1, 2016: Years ended December 31 2017 2016 Net Sales Pro forma $ 1,057,127 $ 1,013,710 As reported 1,003,066 808,572 Net Earnings (Loss) Attributable to Tennant Company Pro forma $ 12,288 $ 30,412 As reported (6,195 ) 46,614 Net Earnings (Loss) Attributable to Tennant Company per Diluted Share Pro forma $ 0.68 $ 1.69 As reported (0.35 ) 2.59 The unaudited pro forma financial information is presented for informational purposes only. It is not necessarily indicative of what our consolidated results of operations actually would have been had the acquisition occurred at the beginning of each year, nor does it attempt to project the future results of operations of the combined company. The unaudited pro forma financial information above gives effect to the following: • Incremental depreciation expense related to the estimated fair value of the property, plant and equipment from the preliminary purchase price allocation. • Exclusion of the purchase accounting impact of the $7,245 inventory step-up reported in 2017 Cost of Sales on our Consolidated Statements of Operations related to the sale of acquired inventory. • Incremental interest expense related to additional debt used to finance the acquisition. • Exclusion of non-recurring acquisition-related transaction and financing costs. • Pro forma adjustments tax affected based on the jurisdiction where the costs were incurred. Other Acquisitions On July 28, 2016 , pursuant to an asset purchase agreement and real estate purchase agreement with Crawford Laboratories, Inc. and affiliates thereof ("Sellers") , we acquired selected assets and liabilities of the Seller's commercial floor coatings business, including the Florock ® Polymer Flooring brand ("Florock"). Florock manufactures commercial floor coatings systems in Chicago, IL. The purchase price was $11,843 , including working capital and other adjustments, and is comprised of $10,965 paid at closing, with the remaining $878 paid in two installments. We paid the first installment of $575 in 2016. The remaining amount was paid during the 2017 first quarter. On September 1, 2016 , we acquired selected assets and liabilities of Dofesa Barrido Mecanizado ("Dofesa") which was our largest distributor in Mexico. The operations are based in Aguascalientes, Mexico, and their addition allows us to expand our sales and service network in an important market. The purchase price was $4,650 less assumed liabilities of $3,448 , subject to customary working capital adjustments. The net purchase price of $1,202 and a value added tax of $191 were paid at closing. The acquisitions have been accounted for as business combinations and the results of their operations have been included in the Consolidated Financial Statements since their respective dates of acquisition. The impact of the incremental revenue and earnings recorded as a result of the acquisitions are not material to our Consolidated Financial Statements. The purchase price allocations for both the Florock and Dofesa acquisitions are complete. The components of the final purchase price of the Florock and Dofesa acquisitions, as described above, have been allocated as follows: Current Assets $ 5,949 Property, Plant and Equipment, net 4,112 Identified Intangible Assets 6,055 Goodwill 1,739 Other Assets 7 Total Assets Acquired 17,862 Current Liabilities 4,764 Other Liabilities 53 Total Liabilities Assumed 4,817 Net Assets Acquired $ 13,045 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories Inventories as of December 31, consisted of the following: 2017 2016 Inventories carried at LIFO: Finished goods $ 43,439 $ 39,142 Raw materials, production parts and work-in-process 23,694 23,980 LIFO reserve (28,429 ) (28,190 ) Total LIFO inventories $ 38,704 $ 34,932 Inventories carried at FIFO: Finished goods $ 54,161 $ 31,044 Raw materials, production parts and work-in-process 34,829 12,646 Total FIFO inventories $ 88,990 $ 43,690 Total inventories $ 127,694 $ 78,622 The LIFO reserve approximates the difference between LIFO carrying cost and FIFO. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 7. 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: 2017 2016 Property, Plant and Equipment: Land $ 18,152 $ 6,328 Buildings and improvements 96,230 58,577 Machinery and manufacturing equipment 151,645 116,221 Office equipment 107,312 89,838 Work in progress 9,429 27,536 Total Property, Plant and Equipment 382,768 298,500 Less: Accumulated Depreciation (202,750 ) (186,403 ) Property, Plant and Equipment, Net $ 180,018 $ 112,097 Depreciation expense was $26,199 in 2017 , $17,891 in 2016 and $16,550 in 2015 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets For purposes of performing our goodwill impairment analysis, we have identified our reporting units as North America, Latin America, Coatings, EMEA and APAC. As of December 31, 2017 , 2016 and 2015 , 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 quantitative goodwill impairment test. Based on our analysis of qualitative factors, we determined that it was not necessary to perform the quantitative 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, 2015 $ 60,447 $ (43,644 ) $ 16,803 Additions 3,787 — 3,787 Foreign currency fluctuations (5,837 ) 6,312 475 Balance as of December 31, 2016 $ 58,397 $ (37,332 ) $ 21,065 Additions 147,845 — 147,845 Purchase accounting adjustments (1,865 ) — (1,865 ) Foreign currency fluctuations 22,847 (3,848 ) 18,999 Balance as of December 31, 2017 $ 227,224 $ (41,180 ) $ 186,044 The balances of acquired Intangible Assets, excluding Goodwill, as of December 31, are as follows: Customer Lists Trade Names Technology Total Balance as of December 31, 2017 Original cost $ 149,355 $ 31,968 $ 14,589 $ 195,912 Accumulated amortization (17,870 ) (2,436 ) (3,259 ) (23,565 ) Carrying amount $ 131,485 $ 29,532 $ 11,330 $ 172,347 Weighted-average original life (in years) 15 10 11 Balance as of December 31, 2016 Original cost $ 8,016 $ 2,000 $ 5,136 $ 15,152 Accumulated amortization (5,948 ) — (2,744 ) (8,692 ) Carrying amount $ 2,068 $ 2,000 $ 2,392 $ 6,460 Weighted-average original life (in years) 15 15 13 The additions to Goodwill during 2017 were based on the preliminary purchase price allocation of our acquisition of the IPC Group, as described further in Note 5. As part of our acquisition of the IPC Group, we acquired customer lists, trade names and technology for a fair value measurement of $159,445 . Further details regarding the preliminary purchase price allocation of our acquisition of the IPC Group are described further in Note 5. As part of the formation of the i-team North America B.V. joint venture, we purchased the distribution rights to sell the i-mop in North America for $2,500 . The distribution rights were recorded in intangible assets, net as a customer list on the Consolidated Balance Sheets as of December 31, 2017. The i-mop distribution rights have a useful life of five years . Further details regarding the joint venture are discussed in Note 3. Amortization expense on Intangible Assets was $17,054 , $409 and $1,481 for the years ended December 31, 2017 , 2016 and 2015 , 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: 2018 $ 22,345 2019 21,691 2020 20,198 2021 18,561 2022 16,367 Thereafter 73,185 Total $ 172,347 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt Credit Facility Borrowings 2017 Credit Agreement In order to finance the acquisition of the IPC Group, on April 4, 2017, the Company and certain of our foreign subsidiaries entered into a Credit Agreement (the “2017 Credit Agreement”) with JPMorgan, as administrative agent, Goldman Sachs Bank USA, as syndication agent, Wells Fargo, National Association, U.S. Bank National Association, and HSBC Bank USA, National Association, as co-documentation agents, and the lenders (including JPMorgan) from time to time party thereto. The 2017 Credit Agreement provides the company and certain of our foreign subsidiaries access to a senior secured credit facility until April 4, 2022, consisting of a multi-tranche term loan facility in an amount up to $400,000 and a revolving facility in an amount up to $200,000 with an option to expand the revolving facility by $150,000 , with the consent of the lenders willing to provide additional borrowings in the form of increases to their revolving facility commitment or funding of incremental term loans. Borrowings may be denominated in U.S. dollars or certain other currencies. In connection with the 2017 Credit Agreement, the company granted the lenders a security interest in substantially all its personal property, and pledged the stock of its domestic subsidiaries and 65% of the stock of its first tier foreign subsidiaries. The obligations under the 2017 Credit Agreement are also guaranteed by certain of the Company’s first tier domestic subsidiaries and those subsidiaries also provided a security interest in their similar personal property. The fee for committed funds under the revolving facility of the 2017 Credit Agreement ranges from an annual rate of 0.175% to 0.35% , depending on the company’s leverage ratio. Borrowings denominated in U.S. dollars under the 2017 Credit Agreement bear interest at a rate per annum equal to (a) the greatest of (i) the prime rate, (ii) the federal funds rate plus 0.50% and (iii) the adjusted LIBOR rate for a one month period, but in any case, not less than 0% , plus, in any such case, 1.00% , plus an additional spread of 0.075% to 0.90% for revolving loans and 0.25% to 1.25% for term loans, depending on the company’s leverage ratio, or (b) the LIBOR Rate, as adjusted for statutory reserve requirements for eurocurrency liabilities, but in any case, not less than 0% , plus an additional spread of 1.075% to 1.90% for revolving loans and 1.25% to 2.25% for term loans, depending on the company’s leverage ratio. The 2017 Credit Agreement contains customary representations, warranties and covenants, including, but not limited to, covenants restricting the company’s ability to incur indebtedness and liens and merge or consolidate with another entity. The 2017 Credit Agreement also contains financial covenants, requiring us to maintain a ratio of consolidated total indebtedness to consolidated earnings before income, taxes, depreciation and amortization, subject to certain adjustments ("Adjusted EBITDA") of not greater than 4.25 to 1, as well as requiring us to maintain a ratio of consolidated Adjusted EBITDA to consolidated interest expense of no less than 3.50 to 1 for the year ended December 31, 2017. The 2017 Credit Agreement also contains a financial covenant requiring us to maintain a senior secured net indebtedness to Adjusted EBITDA ratio of not greater than 3.50 to 1. These financial covenants may restrict our ability to pay dividends and purchase outstanding shares of our common stock. We were in compliance with our financial covenants at December 31, 2017. We will be required to repay the senior credit agreement with 25% to 50% of our excess cash flow from the preceding fiscal year, as defined in the agreement, unless our net leverage ratio for such preceding fiscal year is less than or equal to 3.00 to 1, which will be first measured using our fiscal year ended December 31, 2018. Upon entry into the 2017 Credit Agreement, the company repaid $45,000 in outstanding borrowings under our Prior Credit Agreement (as defined below) and terminated the Prior Credit Agreement. Prior Credit Agreement On June 30, 2015, we entered into an Amended and Restated Credit Agreement (the "Prior 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. At December 31, 2016 , there were $25,000 in outstanding borrowings under this facility with a weighted average interest rate of 1.64% . Upon entry into the 2017 Credit Agreement, we repaid any outstanding borrowings under the Prior Credit Agreement and terminated the Prior Credit Agreement. Prudential Shelf Agreement On July 29, 2009, we entered into a Private Shelf Agreement, as amended (the “Shelf Agreement”) with Prudential Investment Management, Inc. (“Prudential”) and Prudential affiliates from time to time party thereto. The Shelf Agreement provided us and our subsidiaries access to an uncommitted, senior secured, maximum aggregate principal amount of $80,000 of debt capital. As of December 31, 2016 , there were $11,143 in outstanding borrowings under this facility, consisting of the $4,000 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 2017 to 2018 , and the $7,143 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 2017 to 2021 . Upon entry into the 2017 Credit Agreement, we repaid any outstanding borrowings under the Shelf Agreement and terminated the Shelf Agreement. HSBC Bank (China) Company Limited, Shanghai Branch On June 20, 2012, we entered into a banking facility with the HSBC Bank (China) Company Limited, Shanghai Branch in the amount of $5,000 . As of December 31, 2017 , there were no outstanding borrowings on this facility. Senior Unsecured Notes On April 18, 2017, we issued and sold $300,000 in aggregate principal amount of our 5.625% Senior Notes due 2025 (the “Notes”), pursuant to an Indenture, dated as of April 18, 2017, among the company, the Guarantors (as defined therein), and Wells Fargo Bank, National Association, a national banking association, as trustee. The Notes are guaranteed by Tennant Coatings, Inc. and Tennant Sales and Service Company (collectively, the “Guarantors”), which are wholly owned subsidiaries of the company. Separate financial information of the Guarantors is presented in Note 22. The Notes will mature on May 1, 2025. Interest on the Notes will accrue at the rate of 5.625% per annum and will be payable semiannually in cash on each May 1 and November 1, commencing on November 1, 2017. The Notes and the guarantees constitute senior unsecured obligations of the company and the Guarantors, respectively. The Notes and the guarantees, respectively, are: (a) equal in right of payment with all of the company’s and the Guarantors’ senior debt, without giving effect to collateral arrangements; (b) senior in right of payment to all of the company’s and the Guarantors’ future subordinated debt, if any; (c) effectively subordinated in right of payment to all of the company’s and the Guarantors’ debt and obligations that are secured, including borrowings under the company’s senior secured credit facilities for so long as the senior secured credit facilities are secured, to the extent of the value of the assets securing such liens; and (d) structurally subordinated in right of payment to all liabilities (including trade payables) of the company’s and the Guarantors’ subsidiaries that do not guarantee the Notes. The Notes also contain customary representations, warranties and covenants, and are less restrictive than those contained in the 2017 Credit Agreement. We used the net proceeds from this offering to refinance a $300,000 term loan under our 2017 Credit Agreement that we borrowed as part of the financing for the acquisition of the IPC Group and to pay related fees and expenses. The Indenture governing the Notes contains covenants that limit, among other things, our ability and the ability of our restricted subsidiary to incur additional indebtedness (including guarantees thereof); incur or create liens on assets securing indebtedness; make certain restricted payments; make certain investments; dispose of certain assets; allow to exist certain restrictions on the ability of the our restricted subsidiaries to pay dividends or make other payments to us; engage in certain transactions with affiliates; and consolidate or merge with or into other companies. If we experience certain kinds of changes of control, we may be required to repurchase the Notes at a price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase. If we makes certain asset sales and do not use the net proceeds for specified purposes, we may be required to offer to repurchase the Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase. Registration Rights Agreement In connection with the issuance and sale of the Notes, the company entered into a Registration Rights Agreement, dated April 18, 2017, among the company, the Guarantors and Goldman, Sachs & Co. and J.P. Morgan Securities LLC (the “Registration Rights Agreement”). Pursuant to the Registration Rights Agreement, the company agreed (1) to use its commercially reasonable efforts to consummate an exchange offer to exchange the Notes for new registered notes (the “Exchange Notes”), with terms substantially identical in all material respects with the Notes (except that the Exchange Notes will not contain terms with respect to additional interest, registration rights or transfer restrictions) and (2) if required, to have a shelf registration statement declared effective with respect to resales of the Notes. If the company fails to satisfy certain obligations under the Registration Rights Agreement within 360 days, it will be required to pay additional interest to the holders of the Notes under certain circumstances. On January 22, 2018, we commenced the exchange offer required by the Registration Rights Agreement. The exchange offer closed on February 23, 2018. We will not incur any additional indebtedness as a result of the exchange offer. As a result, we will not be required to pay additional interest on the Notes. 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. Debt outstanding at December 31, consisted of the following: 2017 2016 Long-Term Debt: Senior Unsecured Notes $ 300,000 $ — Credit Facility Borrowings 80,000 36,143 Capital Lease Obligations 3,279 51 Total Long-Term Debt 383,279 36,194 Less: Unamortized Debt Issuance Costs (6,440 ) — Less: Current Maturities of Credit Facility Borrowings, Net of Debt Issuance Costs (1) (29,413 ) (3,459 ) Less: Current Maturities of Capital Lease Obligations (1) (1,470 ) — Long-term portion $ 345,956 $ 32,735 (1) Current maturities of long-term debt include $30,000 of current maturities, less $587 of unamortized debt issuance costs, under our 2017 Credit Agreement (defined below) and $1,470 of current maturities of capital lease obligations. As of December 31, 2017 , we had outstanding borrowings under our Senior Unsecured Notes of $300,000 . We had outstanding borrowings under our 2017 Credit Agreement, totaling $60,000 under our term loan facility and $20,000 under our revolving facility, leaving $180,000 of unused borrowing capacity on our revolving facility. Although we are only required to make a minimum principal payment of $5,000 during 2018, we have both the intent and the ability to pay an additional $25,000 during 2018. As such, we have classified $30,000 as current maturities of long-term debt. In addition, we had stand alone letters of credit and bank guarantees outstanding in the amount of $4,670 , leaving approximately $175,330 of unused borrowing capacity on our revolving facility. Commitment fees on unused lines of credit for the year ended December 31, 2017 were $570 . The overall weighted average cost of debt is approximately 5.1% and, net of a related cross-currency swap instrument, is approximately 4.2% . Further details regarding the cross-currency swap instrument are discussed in Note 11. The aggregate maturities of our outstanding debt, including capital lease obligations as of December 31, 2017 , are as follows: 2018 $ 6,609 2019 7,868 2020 9,921 2021 12,006 2022 46,875 Thereafter 300,000 Total aggregate maturities $ 383,279 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | 10. Other Current Liabilities Other Current Liabilities as of December 31, consisted of the following: 2017 2016 Other Current Liabilities: Taxes, other than income taxes $ 14,760 $ 7,122 Warranty 12,676 10,960 Deferred revenue 5,815 2,366 Rebates 13,466 11,102 Freight 3,208 4,274 Restructuring 4,267 394 Miscellaneous accrued expenses 10,779 4,385 Other 4,476 3,014 Total Other Current Liabilities $ 69,447 $ 43,617 The changes in warranty reserves for the three years ended December 31 were as follows: 2017 2016 2015 Beginning balance $ 10,960 $ 10,093 $ 9,686 Product warranty provision 12,124 12,413 11,719 Acquired warranty obligations 1,208 42 — Foreign currency 274 82 (207 ) Claims paid (11,890 ) (11,670 ) (11,105 ) Ending balance $ 12,676 $ 10,960 $ 10,093 |
Derivatives (Notes)
Derivatives (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging | 11. 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 Operations. The time value of purchased contracts is recorded in Net Foreign Currency Transaction Losses in our Consolidated Statements of Operations. 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 Operations. 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, 2017 and December 31, 2016 , the notional amounts of foreign currency forward exchange contracts outstanding not designated as hedging instruments were $60,858 and $42,866 , respectively. During the first quarter of 2017, in connection with our acquisition of IPC Group, we entered into a foreign currency option contract not designated as a hedging instrument for a notional amount of €180,000 . The option contract has since expired and there were no outstanding foreign currency option contracts not designated as hedging instruments as of December 31, 2017 and December 31, 2016 . 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 one year . 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 were $2,928 and $2,127 as of December 31, 2017 and December 31, 2016 , respectively. The notional amount of outstanding foreign currency option contracts designated as cash flow hedges was $8,619 and $8,522 as of December 31, 2017 and December 31, 2016 , respectively. Foreign Currency Derivatives We use foreign currency exchange rate derivatives to hedge our exposure to fluctuations in exchange rates for anticipated intercompany cash transactions between Tennant Company and its subsidiaries. During the second quarter of 2017, we entered into Euro to U.S. dollar foreign exchange cross currency swaps for all of the anticipated cash flows associated with an intercompany loan from a wholly-owned European subsidiary. We entered into these foreign exchange cross currency swaps to hedge the foreign currency denominated cash flows associated with this intercompany loan, and accordingly, they are not speculative in nature. We designated these cross currency swaps as cash flow hedges. The hedged cash flows as of December 31, 2017 included €181,200 of total notional value. As of December 31, 2017 , the aggregate scheduled interest payments over the course of the loan and related swaps amounted to €31,200 . The scheduled maturity and principal payment of the loan and related swaps of €150,000 are due in April 2022 . There were no cross currency swaps designated as cash flow hedges as of December 31, 2016 . 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 Operations 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 Operations. The fair value of derivative instruments on our Consolidated Balance Sheets as of December 31 , consisted of the following: 2017 2016 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) $ 86 $ — $ 184 $ — Foreign currency forward contracts (1) 7,218 34,961 — 13 Derivatives not designated as hedging instruments: Foreign currency forward contracts (1) $ 442 $ 425 $ 12 $ 162 (1) Contracts that mature within the next 12 months are included in Other Current Assets and Other Current Liabilities for asset derivatives and liabilities derivatives, respectively, on our Consolidated Balance Sheets. Contracts with maturities greater than 12 months are included in Other Assets and Other Liabilities for asset derivatives and liability derivatives, respectively, in our Consolidated Balance Sheets. Amounts included in our Consolidated Balance Sheets are recorded net where a right of offset exists with the same derivative counterparty. As of December 31, 2017 , we anticipate reclassifying approximately $1,865 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: 2017 2016 2015 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 (loss) gain recognized in Other Comprehensive Income (Loss), net of tax (1) $ (193 ) $ (16,226 ) $ (259 ) $ (73 ) $ 31 $ 77 Net (loss) gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Sales (178 ) (37 ) (148 ) 7 — 5 Net gain reclassified from Accumulated Other Comprehensive Loss in earnings, net of tax, effective portion to Interest Income — 1,198 — — — — Net loss reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Foreign Currency Transaction Losses — (12,555 ) — — — — Net (loss) gain recognized in earnings (2) (13 ) 10 (11 ) 2 6 (2 ) Derivatives not designated as hedging instruments: Net (loss) gain recognized in earnings (3) $ — $ (6,161 ) $ — $ (890 ) $ — $ 4,047 (1) Net change in the fair value of the effective portion classified in Other Comprehensive Income (Loss). (2) Ineffective portion and amount excluded from effectiveness testing classified in Net Foreign Currency Transaction Losses. (3) Classified in Net Foreign Currency Transaction Losses. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 12. 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, 2017 is as follows: Fair Value Level 1 Level 2 Level 3 Assets: Foreign currency forward exchange contracts $ 7,660 $ — $ 7,660 $ — Foreign currency option contracts 86 — 86 — Total Assets $ 7,746 $ — $ 7,746 $ — Liabilities: Foreign currency forward exchange contracts $ 35,386 $ — $ 35,386 $ — Total Liabilities $ 35,386 $ — $ 35,386 $ — 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, Accounts Payable and Other Current Liabilities 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, as part of a business acquisition. These assets are measured and recognized at amounts equal to the fair value determined as of the date of acquisition. Fair value valuations are based on the information available as of the acquisition date and the expectations and assumptions that have been deemed reasonable by us. There are inherent uncertainties and management judgment required in these determinations. The fair value measurements of assets acquired and liabilities assumed as part of a business acquisition are based on valuations involving significant unobservable inputs, or Level 3, in the fair value hierarchy. These assets are also subject to periodic impairment testing by comparing the respective carrying value of each asset to the estimated fair value of the reporting unit or asset group in which they reside. In the event we determine these assets to be impaired, we would recognize an impairment loss equal to the amount by which the carrying value of the reporting unit, impaired asset or asset group exceeds its estimated fair value. These periodic impairment tests utilize company-specific assumptions involving significant unobservable inputs, or Level 3, in the fair value hierarchy. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Defined Contribution Plan [Abstract] | |
Retirement Benefit Plans | 13. Retirement Benefit Plans Substantially all U.S. employees are covered by various retirement benefit plans, including 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 $13,253 , $12,108 and $12,428 in 2017 , 2016 and 2015 , respectively. We had 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 . On February 15, 2017 , the Board of Directors approved the termination of the U.S. Pension Plan, effective May 15, 2017 . Participants who elected an immediate lump sum distribution were paid out in December 2017. Assets for participants who elected or are currently receiving annuity payments and those who have elected to defer their benefits were transferred to the annuity company, Pacific Life, in December 2017. In December 2017, excess assets of $6,305 were transferred from the Tennant Company Pension Trust to the Tennant Company Retirement Savings Plan to deliver future discretionary benefits to plan participants. 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 $4,404 , $8,359 and $8,098 during 2017 , 2016 and 2015 , 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 benefit pension 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 $140 to our U.S. Nonqualified Plan, $771 to our U.S. Retiree Plan, $292 to our U.K. Pension Plan and $36 to our German Pension Plan in 2018 . There were no contributions made to the U.S. Pension Plan during 2017. Weighted-average asset allocations by asset category of the U.K. Pension Plan and the Tennant Company Retirement Savings Plan are as of December 31, 2017 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 $ 6,305 $ 6,305 $ — $ — Investment Account held by Pension Plan (1) 11,163 — — 11,163 Total $ 17,468 $ 6,305 $ — $ 11,163 (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, 2016 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 $ 663 $ 663 $ — $ — Mutual Funds: U.S. Large-Cap 9,803 9,803 — — U.S. Small-Cap 2,584 2,584 — — International Equities 2,244 2,244 — — Fixed-Income Domestic 4,564 4,564 — — Collective Investment Funds 26,531 — 26,531 — Investment Account held by Pension Plan (1) 9,562 — — 9,562 Total $ 55,951 $ 19,858 $ 26,531 $ 9,562 (1) This category is comprised of investments in insurance contracts. Estimates of the fair value of U.S. and U.K Pension Plan and the Tennant Company Retirement Savings 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. Collective Investment Funds are measured at fair value using quoted market prices. They are classified as Level 2 as they trade in a non-active market for which asset prices are readily available. 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: 2017 2016 Fair value at beginning of year $ 9,562 $ 10,691 Purchases, sales, issuances and settlements, net (535 ) 7 Net gain 1,190 674 Foreign currency 946 (1,810 ) Fair value at end of year $ 11,163 $ 9,562 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 was 70% debt securities and 30% equity. Equity securities within the U.S. Pension Plan did 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 2017 2016 2017 2016 2017 2016 Discount rate 3.28 % 3.92 % 2.45 % 2.64 % 3.26 % 3.58 % Rate of compensation increase — % 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 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 3.92 % 4.08 % 3.76 % 2.64 % 3.59 % 3.38 % 3.58 % 3.70 % 3.39 % Expected long-term rate of return on plan assets 5.10 % 5.20 % 5.20 % 3.90 % 4.60 % 4.40 % — — — Rate of compensation increase — % 3.00 % 3.00 % 3.50 % 3.50 % 3.50 % — — — 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: 2017 2016 U.S. Pension Plans $ 1,414 $ 40,961 U.K. Pension Plan 11,131 10,265 German Pension Plan 1,013 871 Information for our plans with an accumulated benefit obligation in excess of plan assets as of December 31 is as follows: 2017 2016 Accumulated benefit obligation $ 2,427 $ 12,597 Fair value of plan assets — 9,562 As of December 31, 2017 , the U.S. Nonqualified and the German Pension Plans had an accumulated benefit obligation in excess of plan assets. As of December 31, 2016 , 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: 2017 2016 Projected benefit obligation $ 2,427 $ 12,794 Fair value of plan assets — 9,562 As of December 31, 2017 , the U.S. Nonqualified and the German Pension Plans had a projected benefit obligation in excess of plan assets. As of December 31, 2016 , the U.S. Nonqualified, the UK 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: 2017 2016 Healthcare cost trend rate assumption for the next year 6.56 % 6.56 % 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 2032 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 $ (31 ) $ 35 Effect on postretirement benefit obligation $ (724 ) $ 820 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 2017 2016 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 40,961 $ 41,774 $ 11,136 $ 10,883 $ 10,540 $ 11,144 Service cost — 354 132 103 60 76 Interest cost 1,538 1,659 298 358 363 396 Plan participants' contributions — — 14 14 — — Actuarial loss (gain) 1,811 690 327 1,939 (524 ) 6 Foreign exchange — — 1,097 (1,852 ) — — Benefits paid (1,950 ) (3,516 ) (860 ) (309 ) (835 ) (1,082 ) Settlement (40,946 ) — — — — — Benefit obligation at end of year $ 1,414 $ 40,961 $ 12,144 $ 11,136 $ 9,604 $ 10,540 Change in fair value of plan assets and net accrued liabilities: Fair value of plan assets at beginning of year $ 46,389 $ 47,201 $ 9,562 $ 10,691 $ — $ — Actual return on plan assets 2,536 2,457 1,189 673 — — Employer contributions 276 247 313 303 835 1,082 Plan participants' contributions — — 14 14 — — Excess assets transferred to Defined Contribution Plan (6,305 ) — — — — — Foreign exchange — — 945 (1,810 ) — — Benefits paid (1,950 ) (3,516 ) (860 ) (309 ) (835 ) (1,082 ) Settlement (40,946 ) — — — — — Fair value of plan assets at end of year — 46,389 11,163 9,562 — — Funded status at end of year $ (1,414 ) $ 5,428 $ (981 ) $ (1,574 ) $ (9,604 ) $ (10,540 ) Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent Other Assets $ — $ 7,087 $ — $ — $ — $ — Current Liabilities (140 ) (239 ) (36 ) (30 ) (771 ) (828 ) Long-Term Liabilities (1,274 ) (1,420 ) (945 ) (1,544 ) (8,833 ) (9,712 ) Net accrued asset (liability) $ (1,414 ) $ 5,428 $ (981 ) $ (1,574 ) $ (9,604 ) $ (10,540 ) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Net actuarial loss (915 ) (5,720 ) (1,245 ) (1,802 ) (41 ) (566 ) Accumulated Other Comprehensive Loss $ (915 ) $ (5,720 ) $ (1,245 ) $ (1,802 ) $ (41 ) $ (566 ) The components of the net periodic benefit (credit) cost for the three years ended December 31 were as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ — $ 354 $ 480 $ 132 $ 103 $ 153 $ 60 $ 76 $ 96 Interest cost 1,538 1,659 1,711 298 358 396 363 396 393 Expected return on plan assets (2,336 ) (2,400 ) (2,613 ) (379 ) (452 ) (433 ) — — — Amortization of net actuarial loss 43 41 835 74 27 54 — — — Amortization of prior service cost — 41 42 — — — — — — Foreign currency — — — (1 ) 97 (35 ) — — — Net periodic benefit (credit) cost (755 ) (305 ) 455 124 133 135 423 472 489 Curtailment charge — — 25 — — — — — — Settlement charge 6,373 — 225 — — — — — — Net benefit cost (credit) $ 5,618 $ (305 ) $ 705 $ 124 $ 133 $ 135 $ 423 $ 472 $ 489 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 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net actuarial loss (gain) $ 1,611 $ 633 $ 195 $ (465 ) $ 1,718 $ (1,517 ) $ (524 ) $ 6 $ (1,618 ) Amortization of prior service cost — (41 ) (67 ) — — — — — — Amortization of net actuarial loss (43 ) (41 ) (1,060 ) (74 ) (27 ) (54 ) — — — Settlement Charge (6,373 ) — — — — — — — — Total recognized in other comprehensive (income) loss $ (4,805 ) $ 551 $ (932 ) $ (539 ) $ 1,691 $ (1,571 ) $ (524 ) $ 6 $ (1,618 ) Total recognized in net benefit cost (credit) and other comprehensive (income) loss $ 813 $ 246 $ (227 ) $ (415 ) $ 1,824 $ (1,436 ) $ (101 ) $ 478 $ (1,129 ) 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 2018 $ 140 $ 247 $ 771 2019 133 254 803 2020 132 261 849 2021 124 269 751 2022 117 278 741 2023 to 2027 493 1,538 3,509 Total $ 1,139 $ 2,847 $ 7,424 The following amounts are included in Accumulated Other Comprehensive Loss as of December 31, 2017 and are expected to be recognized as components of net periodic benefit cost during 2018 : Pension Benefits Postretirement Medical Benefits Net actuarial loss $ 78 $ — |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | 14. Shareholders' Equity Authorized Shares We are authorized to issue an aggregate of 60,000,000 shares, all of which are designated as Common Stock having a par value of $0.375 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. 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: 2017 2016 2015 Foreign currency translation adjustments $ (15,778 ) $ (44,444 ) $ (44,585 ) Pension and retiree medical benefits (1,610 ) (5,391 ) (3,647 ) Cash flow hedge (4,935 ) (88 ) 103 Total Accumulated Other Comprehensive Loss $ (22,323 ) $ (49,923 ) $ (48,129 ) 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, 2016 $ (44,444 ) $ (5,391 ) $ (88 ) $ (49,923 ) Other comprehensive income (loss) before reclassifications 28,666 (300 ) (16,419 ) 11,947 Amounts reclassified from Accumulated Other Comprehensive Loss — 4,081 11,572 15,653 Net current period other comprehensive income (loss) 28,666 3,781 (4,847 ) 27,600 December 31, 2017 $ (15,778 ) $ (1,610 ) $ (4,935 ) $ (22,323 ) 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, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. 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 through 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 $21,566 , $18,640 and $17,804 in 2017 , 2016 and 2015 , respectively. The minimum rentals for aggregate lease commitments as of December 31, 2017 , were as follows: 2018 $ 14,083 2019 9,540 2020 5,721 2021 2,995 2022 1,996 Thereafter 2,596 Total $ 36,931 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 $14,052 , of which we have guaranteed $11,409 . As of December 31, 2017 , we have recorded a liability for the estimated end-of-term loss related to this residual value guarantee of $509 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. 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, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes Tax Reform Legislation popularly known as The Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017, resulting in significant changes to the U.S. corporate income tax system. These changes include a federal statutory rate reduction from 35% to 21%, the elimination or reduction of certain domestic deductions and credits and limitations on the deductibility of interest expense and executive compensation. The Tax Act also transitions international taxation from a worldwide system to a modified territorial system and includes base erosion prevention measures on non-U.S. earnings, which has the effect of subjecting certain earnings of our foreign subsidiaries to U.S. taxation as global intangible low-taxed income. These changes are effective beginning in 2018. The 2017 Tax Act also includes a one-time transition tax on certain unrepatriated earnings from foreign subsidiaries. ASC 740 requires a company to record the effects of a tax law change in the period of enactment, however, shortly after the enactment of the Tax Act, the SEC staff issued SAB 118, which allows a company to record a provisional amount when it does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the change in the tax law. The measurement period ends when the company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. We have made a reasonable estimate of the impact of the Tax Act and recorded discrete items in our 2017 provisional income tax expense of $2,355 which reflects an estimated reduction in our deferred income tax liabilities of $1,993 as a result of the maximum federal rate decrease to 21% from 35% and an estimated tax charge of $362 for the effects of one-time transition tax on cash and cash equivalent balances related to accumulated earnings associated with our international operations. We are continuing to gather additional information related to these estimates in order to more precisely compute the remeasurement of deferred taxes and the impact of the transition tax. Income from continuing operations for the three years ended December 31 was as follows: 2017 2016 2015 U.S. operations $ 7,465 $ 54,018 $ 51,189 Foreign operations (8,757 ) 12,473 (765 ) Total $ (1,292 ) $ 66,491 $ 50,424 Income tax expense (benefit) for the three years ended December 31 was as follows: 2017 2016 2015 Current: Federal $ 2,590 $ 15,962 $ 15,117 Foreign 8,701 3,035 3,992 State 812 1,859 1,685 $ 12,103 $ 20,856 $ 20,794 Deferred: Federal $ 1,640 $ (472 ) $ (481 ) Foreign (8,699 ) (434 ) (1,888 ) State (131 ) (73 ) (89 ) $ (7,190 ) $ (979 ) $ (2,458 ) Total: Federal $ 4,230 $ 15,490 $ 14,636 Foreign 2 2,601 2,104 State 681 1,786 1,596 Total Income Tax Expense $ 4,913 $ 19,877 $ 18,336 U.S. income taxes have been provided on approximately $11,636 of undistributed earnings of non-U.S. subsidiaries as a result of the transition tax required by the Tax Act. In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is zero or immaterial and that position has not changed following incurring the transition tax under the Tax Act. No deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of our foreign investments to the United States. Tax loss carryforwards and expiration periods by international operation as of December 31, 2017 were as follows: Amount Carryforward Period Netherlands $ 23,733 9 years Germany 12,068 Unlimited Sweden 1,586 Unlimited Norway 655 Unlimited Spain 4,555 Unlimited Total $ 42,597 Because of the uncertainty regarding realization of the Netherlands and Sweden tax loss carryforwards, valuation allowances were established. We have Netherlands foreign tax credit carryforwards of $1,575 . Because of the uncertainty regarding utilization of the Netherlands 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: 2017 2016 2015 Tax at statutory rate 35.0 % 35.0 % 35.0 % (Decreases) increases in the tax rate from: State and local taxes, net of federal benefit (21.1 ) 1.7 2.2 Effect of foreign operations (70.8 ) (5.5 ) (5.1 ) Transaction costs (226.3 ) — — Effect of 2018 deferred rate change (154.3 ) — — Transition Tax (28.0 ) — — Impairment of Long-Lived Assets — — 7.0 Effect of changes in valuation allowances (126.5 ) 1.9 1.5 Domestic production activities deduction 28.3 (2.2 ) (2.7 ) Share-based payments 90.4 — — Research & Development credit 82.9 (1.3 ) (1.7 ) Other, net 10.2 0.3 0.2 Effective income tax rate (380.2 )% 29.9 % 36.4 % Deferred tax assets and liabilities were comprised of the following as of December 31: 2017 2016 Deferred Tax Assets: Inventories, principally due to changes in inventory reserves $ 4,757 $ 332 Employee wages and benefits, principally due to accruals for financial reporting purposes 11,031 14,723 Warranty reserves accrued for financial reporting purposes 2,578 3,617 Receivables, principally due to allowance for doubtful accounts and tax accounting method for equipment rentals 2,138 1,413 Tax loss carryforwards 11,383 7,821 Tax credit carryforwards 1,575 1,228 Other 3,630 2,126 Gross Deferred Tax Assets $ 37,092 $ 31,260 Less: valuation allowance (9,691 ) (6,865 ) Total Net Deferred Tax Assets $ 27,401 $ 24,395 Deferred Tax Liabilities: Property, Plant and Equipment, principally due to differences in depreciation and related gains 9,042 6,947 Goodwill and Intangible Assets 60,450 4,180 Total Deferred Tax Liabilities $ 69,492 $ 11,127 Net Deferred Tax (Liabilities) Assets $ (42,091 ) $ 13,268 The valuation allowance at December 31, 2017 principally applies to the Netherlands 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: 2017 2016 Balance at January 1, $ 2,477 $ 2,326 Increases as a result of tax positions taken during the current year 329 545 Increase related to prior period tax positions of acquired entities 236 — Decreases relating to settlement with tax authorities (68 ) (6 ) Reductions as a result of a lapse of the applicable statute of limitations (770 ) (523 ) Increases as a result of foreign currency fluctuations 28 135 Balance at December 31, $ 2,232 $ 2,477 Included in the balance of unrecognized tax benefits at December 31, 2017 and 2016 are potential benefits of $1,992 and $2,114 , 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 $2,232 and $2,477 for unrecognized tax benefits as of December 31, 2017 and 2016 , there was approximately $482 and $490 , 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 2014 and, with limited exceptions, state and foreign income tax examinations for taxable years before 2013. We are currently under examination by the Internal Revenue Service for the 2015 tax year. Although the outcome of this matter cannot currently be determined, we believe adequate provision has been made for any potential unfavorable financial statement impact. We are currently undergoing income tax examinations in various state and foreign jurisdictions covering 2014 to 2016 . 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, 2017 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | 17. Share-Based Compensation We have four plans under which we have awarded share-based compensation grants: 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”), the Amended and Restated 2010 Stock Incentive Plan, as Amended (“2010 Plan”) and the 2017 Stock Incentive Plan ("2017 Plan"), which were adopted as a continuing step toward aggregating our equity compensation programs to reduce the complexity of our equity compensation programs. 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. The 2017 Plan approved by our shareholders on April 26, 2017 terminated our rights to grant awards under previous plans; however, any awards granted under previous plans that do not result in the issuance of shares of Common Stock may again be used for an award under the 2017 Plan. There were 1,200,000 shares made available under the approved 2017 Plan. As of December 31, 2017 , there were 742,873 shares reserved for issuance under the 2007 Plan and the 2010 Plan for outstanding compensation awards. There were 1,155,110 shares available for issuance under the 2017 Plan for current and future equity awards as of December 31, 2017. 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 $5,891 , $3,875 and $8,222 , respectively, during the years ended 2017 , 2016 and 2015 . The total excess tax benefit recognized for share-based compensation arrangements during the years ended 2017 , 2016 and 2015 was $1,168 , $686 and $859 , 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. To determine the amount of compensation cost to be recognized in each period, we account for forfeitures as they occur. The following table illustrates the valuation assumptions used for the 2017 , 2016 and 2015 grants: 2017 2016 2015 Expected volatility 25 - 26% 29 - 32% 32 - 36% Weighted-average expected volatility 26% 32% 36% Expected dividend yield 1.2 - 1.3% 1.3 - 1.5% 1.1 - 1.2% Weighted-average expected dividend yield 1.3% 1.3% 1.2% Expected term, in years 5 5 5 Risk-free interest rate 1.7 - 2.0% 1.1 - 1.4% 1.4 - 1.6% New stock option awards granted vest one-third each year over a three year period and have a ten year contractual term. Compensation expense equal to the grant date fair value is recognized for these awards on a straight-line basis over the awards 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, 2017 and no SARs were granted during 2017 , 2016 or 2015 . The following table summarizes the activity during the year ended December 31, 2017 for stock option awards: Shares Weighted-Average Exercise Price Outstanding at beginning of year 1,113,382 $ 42.34 Granted 224,985 72.85 Exercised (159,792 ) 44.04 Forfeited (42,586 ) 63.98 Expired (381 ) 65.12 Outstanding at end of year 1,135,608 $ 47.47 Exercisable at end of year 766,583 $ 39.15 The weighted-average grant date fair value of stock options granted during the years ended December 31, 2017 , 2016 and 2015 was $16.39 , $13.61 and $20.08 , respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2017 , 2016 and 2015 was $4,450 , $3,408 and $1,702 , respectively. The aggregate intrinsic value of options outstanding and exercisable at December 31, 2017 was $28,711 and $25,702 , respectively. The weighted-average remaining contractual life for options outstanding and exercisable as of December 31, 2017 , was 5.6 years and 4.2 years , respectively. As of December 31, 2017 , there was unrecognized compensation cost for nonvested options of $2,064 , which is expected to be recognized over a weighted-average period of 1.4 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 of 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, 2017 for nonvested restricted share awards: Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of year 117,234 $ 47.62 Granted 20,284 73.06 Vested (32,990 ) 44.36 Forfeited (4,739 ) 63.43 Nonvested at end of year 99,789 $ 53.11 The total fair value of shares vested during the years ended December 31, 2017 , 2016 and 2015 was $1,463 , $1,970 and $1,054 , respectively. As of December 31, 2017 , there was $1,585 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, 2017 for nonvested performance share awards: Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of year 129,096 $ 59.30 Granted 45,792 72.84 Vested (20,060 ) 61.80 Forfeited (31,804 ) 62.55 Nonvested at end of year 123,024 $ 63.09 The total fair value of shares vested during the year ended December 31, 2017 , 2016 and 2015 was $1,240 , $1,703 and $1,713 , respectively. As of December 31, 2017 , we expect to recognize $1,400 of total compensation costs over a weighted-average period of 2.0 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 on a straight line basis over the vesting period of the award. The following table summarizes the activity during the year ended December 31, 2017 for nonvested restricted stock units: Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of year 31,038 $ 60.47 Granted 30,750 68.92 Vested (14,638 ) 65.74 Forfeited (4,025 ) 60.82 Nonvested at end of year 43,125 $ 64.67 The total fair value of shares vested during the years ended December 31, 2017 and 2016 was $962 and $907 , respectively. As of December 31, 2017 , there was $1,743 of total unrecognized compensation cost related to nonvested shares which is expected to be recognized over a weighted-average period of 1.3 years . Share-Based Liabilities As of December 31, 2017 and 2016 , we had $175 and $155 in total share-based liabilities recorded on our Consolidated Balance Sheets, respectively. During the years ended December 31, 2017 , 2016 and 2015 , we paid out $45 , $62 and $53 related to share-based liability awards, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 18. (Loss) Earnings Attributable to Tennant Company Per Share The computations of Basic and Diluted (Loss) Earnings Attributable to Tennant Company per Share for the years ended December 31 were as follows: 2017 2016 2015 Numerator: Net (Loss) Earnings Attributable to Tennant Company $ (6,195 ) $ 46,614 $ 32,088 Denominator: Basic - Weighted Average Shares Outstanding 17,695,390 17,523,267 18,015,151 Effect of dilutive securities — 452,916 478,296 Diluted - Weighted Average Shares Outstanding 17,695,390 17,976,183 18,493,447 Basic (Loss) Earnings per Share $ (0.35 ) $ 2.66 $ 1.78 Diluted (Loss) Earnings per Share $ (0.35 ) $ 2.59 $ 1.74 Excluded from the dilutive securities shown above were options to purchase and shares to be paid out under share-based compensation plans of 711,212 , 356,598 and 222,092 shares of common stock during 2017 , 2016 and 2015 , respectively. These exclusions were 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, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | 19. 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 geographic area for the years ended December 31: 2017 2016 2015 Net Sales: Americas $ 640,274 $ 607,026 $ 591,405 Europe, Middle East, Africa 273,738 129,046 139,834 Asia Pacific 89,054 72,500 80,560 Total $ 1,003,066 $ 808,572 $ 811,799 The following table presents long-lived assets by geographic area as of December 31: 2017 2016 2015 Long-lived assets: Americas $ 132,659 $ 134,737 $ 110,842 Europe, Middle East, Africa 422,338 19,606 11,100 Asia Pacific 4,731 4,334 4,658 Total $ 559,728 $ 158,677 $ 126,600 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 end user country 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. Long-lived assets located in Italy totaled $393,917 as of the year ended December 31, 2017 as a result of our acquisition of IPC Group. We did not have long-lived assets located in Italy for 2016 and 2015. There are no other individual foreign locations which have long-lived assets which represent more than 10% of our consolidated long-lived assets. The following table presents revenues for groups of similar products and services for the years ended December 31: 2017 2016 2015 Net Sales: Equipment $ 636,875 $ 491,075 $ 499,634 Parts and consumables 202,452 173,632 175,697 Service and other 132,332 114,719 112,622 Specialty surface coatings 31,407 29,146 23,846 Total $ 1,003,066 $ 808,572 $ 811,799 |
Consolidated Quarterly Data
Consolidated Quarterly Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Consolidated Quarterly Data (Unaudited) | 20. Consolidated Quarterly Data (Unaudited) 2017 Q1 Q2 Q3 Q4 Net Sales $ 191,059 $ 270,791 $ 261,921 $ 279,295 Gross Profit 79,736 104,554 104,604 115,527 Net (Loss) Earnings Attributable to Tennant Company (3,957 ) (2,591 ) 3,559 (3,206 ) Basic (Loss) Earnings Attributable to Tennant Company per Share $ (0.22 ) $ (0.15 ) $ 0.20 $ (0.18 ) Diluted (Loss) Earnings Attributable to Tennant Company per Share $ (0.22 ) $ (0.15 ) $ 0.20 $ (0.18 ) 2016 Q1 Q2 Q3 Q4 Net Sales $ 179,864 $ 216,828 $ 200,134 $ 211,746 Gross Profit 77,502 95,289 85,295 93,509 Net Earnings Attributable to Tennant Company 4,439 15,328 11,477 15,370 Basic Earnings Attributable to Tennant Company per Share $ 0.25 $ 0.88 $ 0.66 $ 0.88 Diluted Earnings Attributable to Tennant Company per Share $ 0.25 $ 0.85 $ 0.64 $ 0.85 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 $0.84 per share in 2017 , or $0.21 per share per quarter, and $0.81 per share in 2016 , or $0.20 per share for the first three quarters of 2016 and $0.21 per share for the last quarter of 2016 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 21. Related Party Transactions 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 Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | 23. Subsequent Event On January 22, 2018, we commenced the exchange offer required by the Registration Rights Agreement referred to in Note 9. The exchange offer closed on February 23, 2018. We will not incur any additional indebtedness as a result of the exchange offer. As a result, we will not be required to pay additional interest on the Notes. |
Separate Financial Information
Separate Financial Information of Guarantor Subsidiaries (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Financial Statements | 22. Separate Financial Information of Guarantor Subsidiaries The following condensed consolidating guarantor financial information is presented to comply with the requirements of Rule 3-10 of Regulation S-X. On April 18, 2017 , we issued and sold $300,000 in aggregate principal amount of our 5.625% Senior Notes due 2025 (the “Notes”), pursuant to an Indenture, dated as of April 18, 2017, among the company, the Guarantors (as defined below), and Wells Fargo Bank, National Association, a national banking association, as trustee. The Notes are unconditionally and jointly and severally guaranteed by Tennant Coatings, Inc. and Tennant Sales and Service Company (collectively, the “Guarantors”), which are wholly owned subsidiaries of the company. The Notes and the guarantees constitute senior unsecured obligations of the company and the Guarantors, respectively. The Notes and the guarantees, respectively, are: (a) equal in right of payment with all of the company’s and the Guarantors’ senior debt, without giving effect to collateral arrangements; (b) senior in right of payment to all of the company’s and the Guarantors’ future subordinated debt, if any; (c) effectively subordinated in right of payment to all of the company’s and the Guarantors’ debt and obligations that are secured, including borrowings under the company’s senior secured credit facilities for so long as the senior secured credit facilities are secured, to the extent of the value of the assets securing such liens; and (d) structurally subordinated in right of payment to all liabilities (including trade payables) of the company’s and the Guarantors’ subsidiaries that do not guarantee the Notes. The following condensed consolidated financial information presents the Condensed Consolidated Statements of Earnings, Comprehensive Income and Cash Flows for each of the years in the three-year period ended December 31, 2017 , and the related Condensed Consolidated Balance Sheets as of December 31, 2017 and 2016 , of Tennant Company ("Parent"), the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis and elimination entries necessary to consolidated the Parent with the Guarantor and Non-Guarantor Subsidiaries. The following condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the company and notes thereto of which this note is an integral part. Condensed Consolidated Statement of Earnings For the year ended December 31, 2017 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company Net Sales $ 454,703 $ 594,405 $ 471,559 $ (517,601 ) $ 1,003,066 Cost of Sales 311,897 488,972 317,151 (519,375 ) 598,645 Gross Profit 142,806 105,433 154,408 1,774 404,421 Operating Expense: Research and Development Expense 27,219 315 4,479 — 32,013 Selling and Administrative Expense 116,388 78,516 150,460 — 345,364 Total Operating Expense 143,607 78,831 154,939 — 377,377 (Loss) Profit from Operations (801 ) 26,602 (531 ) 1,774 27,044 Other Income (Expense): Equity in Earnings of Affiliates 12,754 2,004 28,855 (43,613 ) — Interest Expense, Net (22,659 ) — (299 ) (31 ) (22,989 ) Intercompany Interest Income (Expense) 12,519 (5,776 ) (6,743 ) — — Net Foreign Currency Transaction Gains (Losses) 857 — (4,244 ) — (3,387 ) Other (Expense) Income, Net (3,962 ) (736 ) 2,841 (103 ) (1,960 ) Total Other (Expense) Income, Net (491 ) (4,508 ) 20,410 (43,747 ) (28,336 ) (Loss) Profit Before Income Taxes (1,292 ) 22,094 19,879 (41,973 ) (1,292 ) Income Tax Expense (Benefit) 4,913 8,070 (98 ) (7,972 ) 4,913 Net (Loss) Earnings Including Noncontrolling Interest (6,205 ) 14,024 19,977 (34,001 ) (6,205 ) Net Loss Attributable to Noncontrolling Interest (10 ) — (10 ) 10 (10 ) Net (Loss) Earnings Attributable to Tennant Company $ (6,195 ) $ 14,024 $ 19,987 $ (34,011 ) $ (6,195 ) Condensed Consolidated Statement of Earnings For the year ended December 31, 2016 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company Net Sales $ 455,375 $ 587,815 $ 290,349 $ (524,967 ) $ 808,572 Cost of Sales 299,459 483,075 199,336 (524,893 ) 456,977 Gross Profit 155,916 104,740 91,013 (74 ) 351,595 Operating Expense: Research and Development Expense 32,378 429 1,931 — 34,738 Selling and Administrative Expense 95,189 74,643 78,378 — — 248,210 (Gain) Loss on Sale of Business (82 ) — 231 — 149 Total Operating Expense 127,485 75,072 80,540 — 283,097 Profit from Operations 28,431 29,668 10,473 (74 ) 68,498 Other Income (Expense): Equity in Earnings of Affiliates 34,068 2,192 — (36,260 ) — Interest (Expense) Income, Net (1,204 ) — 255 — (949 ) Intercompany Interest Income (Expense) 7,157 (5,570 ) (1,587 ) — — Net Foreign Currency Transaction Gains (Losses) 648 (652 ) (388 ) — (392 ) Other (Expense) Income, Net (2,609 ) (573 ) 2,516 — (666 ) Total Other Income (Expense), Net 38,060 (4,603 ) 796 (36,260 ) (2,007 ) Profit Before Income Taxes 66,491 25,065 11,269 (36,334 ) 66,491 Income Tax Expense 19,877 9,443 2,427 (11,870 ) 19,877 Net Earnings $ 46,614 $ 15,622 $ 8,842 $ (24,464 ) $ 46,614 Condensed Consolidated Statement of Earnings For the year ended December 31, 2015 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company Net Sales $ 480,418 $ 586,154 $ 306,506 $ (561,279 ) $ 811,799 Cost of Sales 320,620 489,203 213,085 (560,169 ) 462,739 Gross Profit 159,798 96,951 93,421 (1,110 ) 349,060 Operating Expense: Research and Development Expense 29,888 389 2,138 — 32,415 Selling and Administrative Expense 97,301 72,954 82,015 — 252,270 Impairment of Long-Lived Assets — — 11,199 — 11,199 Total Operating Expense 127,189 73,343 95,352 — 295,884 Profit (Loss) from Operations 32,609 23,608 (1,931 ) (1,110 ) 53,176 Other Income (Expense): Equity in Earnings of Affiliates 14,766 2,122 — (16,888 ) — Interest (Expense) Income, Net (1,221 ) — 80 — (1,141 ) Intercompany Interest Income (Expense) 7,368 (5,400 ) (1,968 ) — — Net Foreign Currency Transaction Gains (Losses) 535 (777 ) (712 ) — (954 ) Other (Expense) Income, Net (3,633 ) (422 ) 3,398 — (657 ) Total Other Income (Expense), Net 17,815 (4,477 ) 798 (16,888 ) (2,752 ) Profit (Loss) Before Income Taxes 50,424 19,131 (1,133 ) (17,998 ) 50,424 Income Tax Expense 18,336 4,619 1,630 (6,249 ) 18,336 Net Earnings (Loss) $ 32,088 $ 14,512 $ (2,763 ) $ (11,749 ) $ 32,088 Condensed Consolidated Statement of Comprehensive Income For the year ended December 31, 2017 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company Net Earnings $ (6,205 ) $ 14,024 $ 19,977 $ (34,001 ) $ (6,205 ) Other Comprehensive Income (Loss): Foreign currency translation adjustments 28,356 1,215 2,960 (4,175 ) 28,356 Pension and retiree medical benefits 5,868 — 538 (538 ) 5,868 Cash flow hedge (7,731 ) — — — (7,731 ) Income Taxes: Foreign currency translation adjustments 310 — 310 (310 ) 310 Pension and retiree medical benefits (2,087 ) — (99 ) 99 (2,087 ) Cash flow hedge 2,884 — — — 2,884 Total Other Comprehensive (Loss) Income, net of tax 27,600 1,215 3,709 (4,924 ) 27,600 Total Comprehensive Income Including Noncontrolling Interest 21,395 15,239 23,686 (38,925 ) 21,395 Comprehensive Loss Attributable to Noncontrolling Interest (10 ) — (10 ) 10 (10 ) Comprehensive Income Attributable to Tennant Company $ 21,405 $ 15,239 $ 23,696 $ (38,935 ) $ 21,405 Condensed Consolidated Statement of Comprehensive Income For the year ended December 31, 2016 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company Net Earnings $ 46,614 $ 15,622 $ 8,842 $ (24,464 ) $ 46,614 Other Comprehensive Income (Loss): Foreign currency translation adjustments 109 270 3,534 (3,804 ) 109 Pension and retiree medical benefits (2,248 ) — (1,691 ) 1,691 (2,248 ) Cash flow hedge (305 ) — — — (305 ) Income Taxes: Foreign currency translation adjustments 32 — 32 (32 ) 32 Pension and retiree medical benefits 504 — 296 (296 ) 504 Cash flow hedge 114 — — — 114 Total Other Comprehensive (Loss) Income, net of tax (1,794 ) 270 2,171 (2,441 ) (1,794 ) Comprehensive Income $ 44,820 $ 15,892 $ 11,013 $ (26,905 ) $ 44,820 Condensed Consolidated Statement of Comprehensive Income For the year ended December 31, 2015 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company Net Earnings $ 32,088 $ 14,512 $ (2,763 ) $ (11,749 ) $ 32,088 Other Comprehensive (Loss) Income: Foreign currency translation adjustments (12,520 ) (1,082 ) (12,903 ) 13,985 (12,520 ) Pension and retiree medical benefits 4,121 — 1,571 (1,571 ) 4,121 Cash flow hedge 164 — — — 164 Income Taxes: Foreign currency translation adjustments 25 — 25 (25 ) 25 Pension and retiree medical benefits (1,265 ) — (314 ) 314 (1,265 ) Cash flow hedge (61 ) — — — (61 ) Total Other Comprehensive Loss, net of tax (9,536 ) (1,082 ) (11,621 ) 12,703 (9,536 ) Comprehensive Income (Loss) $ 22,552 $ 13,430 $ (14,384 ) $ 954 $ 22,552 Condensed Consolidated Balance Sheet As of December 31, 2017 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company ASSETS Current Assets: Cash and Cash Equivalents $ 18,469 $ 507 $ 39,422 $ — $ 58,398 Restricted Cash — — 653 — 653 Net Receivables 683 88,629 120,204 — 209,516 Intercompany Receivables 53,444 133,778 — (187,222 ) — Inventories 29,450 12,695 94,542 (8,993 ) 127,694 Prepaid Expenses 8,774 1,172 9,405 — 19,351 Other Current Assets 4,030 — 3,473 — 7,503 Total Current Assets 114,850 236,781 267,699 (196,215 ) 423,115 Property, Plant and Equipment 225,064 12,155 145,549 — 382,768 Accumulated Depreciation (146,320 ) (6,333 ) (50,097 ) — (202,750 ) Property, Plant and Equipment, Net 78,744 5,822 95,452 — 180,018 Deferred Income Taxes 1,308 2,669 7,157 — 11,134 Investment in Affiliates 392,486 11,273 20,811 (424,570 ) — Intercompany Loans 304,822 — 4,983 (309,805 ) — Goodwill 12,869 1,739 171,436 — 186,044 Intangible Assets, Net 2,105 2,898 167,344 — 172,347 Other Assets 10,363 — 10,956 — 21,319 Total Assets $ 917,547 $ 261,182 $ 745,838 $ (930,590 ) $ 993,977 LIABILITIES AND TOTAL EQUITY Current Liabilities: Current Portion of Long-Term Debt $ 29,413 $ — $ 1,470 $ — $ 30,883 Accounts Payable 39,927 3,018 53,137 — 96,082 Intercompany Payables 133,778 1,963 51,481 (187,222 ) — Employee Compensation and Benefits 8,311 10,355 18,591 — 37,257 Income Taxes Payable 366 — 2,472 — 2,838 Other Current Liabilities 20,183 15,760 33,504 — 69,447 Total Current Liabilities 231,978 31,096 160,655 (187,222 ) 236,507 Long-Term Liabilities: Long-Term Debt 344,147 — 1,809 — 345,956 Intercompany Loans — 128,000 181,805 (309,805 ) — Employee-Related Benefits 11,160 3,992 8,715 — 23,867 Deferred Income Taxes — — 53,225 — 53,225 Other Liabilities 31,788 2,483 1,677 — 35,948 Total Long-Term Liabilities 387,095 134,475 247,231 (309,805 ) 458,996 Total Liabilities 619,073 165,571 407,886 (497,027 ) 695,503 Equity: Common Stock 6,705 — 11,131 (11,131 ) 6,705 Additional Paid-In Capital 15,089 72,483 384,460 (456,943 ) 15,089 Retained Earnings 297,032 23,797 (21,219 ) (2,578 ) 297,032 Accumulated Other Comprehensive Loss (22,323 ) (669 ) (38,391 ) 39,060 (22,323 ) Total Tennant Company Shareholders’ Equity 296,503 95,611 335,981 (431,592 ) 296,503 Noncontrolling Interest 1,971 — 1,971 (1,971 ) 1,971 Total Equity 298,474 95,611 337,952 (433,563 ) 298,474 Total Liabilities and Total Equity $ 917,547 $ 261,182 $ 745,838 $ (930,590 ) $ 993,977 Condensed Consolidated Balance Sheet As of December 31, 2016 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company ASSETS Current Assets: Cash and Cash Equivalents $ 38,484 $ 226 $ 19,323 $ — $ 58,033 Restricted Cash — — 517 — 517 Net Receivables 209 85,219 63,706 — 149,134 Intercompany Receivables 50,437 123,289 2,251 (175,977 ) — Inventories 26,422 12,821 49,829 (10,450 ) 78,622 Prepaid Expenses 4,120 1,151 3,933 — 9,204 Other Current Assets 2,402 — 10 — 2,412 Total Current Assets 122,074 222,706 139,569 (186,427 ) 297,922 Property, Plant and Equipment 225,651 12,996 59,853 — 298,500 Accumulated Depreciation (144,281 ) (6,175 ) (35,947 ) — (186,403 ) Property, Plant and Equipment, Net 81,370 6,821 23,906 — 112,097 Deferred Income Taxes 3,048 3,281 7,110 — 13,439 Investment in Affiliates 157,004 9,021 — (166,025 ) — Intercompany Loans 130,000 — — (130,000 ) — Goodwill 12,869 1,439 6,757 — 21,065 Intangible Assets, Net — 3,200 3,260 — 6,460 Other Assets 10,189 27 8,838 — 19,054 Total Assets $ 516,554 $ 246,495 $ 189,440 $ (482,452 ) $ 470,037 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current Portion of Long-Term Debt $ 3,429 $ — $ 30 $ — $ 3,459 Accounts Payable 30,867 2,599 13,942 — 47,408 Intercompany Payables 125,540 1,249 49,188 (175,977 ) — Employee Compensation and Benefits 12,025 15,261 8,711 — 35,997 Income Taxes Payable 1,410 — 938 — 2,348 Other Current Liabilities 15,329 13,348 14,940 — 43,617 Total Current Liabilities 188,600 32,457 87,749 (175,977 ) 132,829 Long-Term Liabilities: Long-Term Debt 32,714 — 21 — 32,735 Intercompany Loans — 128,000 2,000 (130,000 ) — Employee-Related Benefits 14,291 3,704 3,139 — 21,134 Deferred Income Taxes — — 171 — 171 Other Liabilities 2,406 1,295 924 — 4,625 Total Long-Term Liabilities 49,411 132,999 6,255 (130,000 ) 58,665 Total Liabilities 238,011 165,456 94,004 (305,977 ) 191,494 Shareholders' Equity: Common Stock 6,633 — 11,131 (11,131 ) 6,633 Additional Paid-In Capital 3,653 72,483 158,592 (231,075 ) 3,653 Retained Earnings 318,180 9,771 (32,187 ) 22,416 318,180 Accumulated Other Comprehensive Loss (49,923 ) (1,215 ) (42,100 ) 43,315 (49,923 ) Total Shareholders’ Equity 278,543 81,039 95,436 (176,475 ) 278,543 Total Liabilities and Shareholders’ Equity $ 516,554 $ 246,495 $ 189,440 $ (482,452 ) $ 470,037 Condensed Consolidated Statement of Cash Flows For the year ended December 31, 2017 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company OPERATING ACTIVITIES Net Cash Provided by Operating Activities $ 26,992 $ 280 $ 27,711 $ (809 ) $ 54,174 INVESTING ACTIVITIES Purchases of Property, Plant and Equipment (9,558 ) — (10,879 ) — (20,437 ) Proceeds from Disposals of Property, Plant and Equipment 23 1 2,487 — 2,511 Proceeds from Principal Payments Received on Long-Term Note Receivable — — 667 — 667 Issuance of Long-Term Note Receivable — — (1,500 ) — (1,500 ) Acquisition of Businesses, Net of Cash Acquired (304 ) — (353,769 ) — (354,073 ) Purchase of Intangible Asset (2,500 ) — — — (2,500 ) Change in Investments in Subsidiaries (199,028 ) — — 199,028 — Loan (Payments) Borrowings from Subsidiaries (159,780 ) — (4,983 ) 164,763 — Increase in Restricted Cash — — (92 ) — (92 ) Net Cash (Used in) Provided by Investing Activities (371,147 ) 1 (368,069 ) 363,791 (375,424 ) FINANCING ACTIVITIES Proceeds from Short-Term Debt 303,000 — — — 303,000 Repayments of Short-Term Debt (303,000 ) — — — (303,000 ) Loan Borrowings (Payments) from Parent 4,983 — 159,780 (164,763 ) — Change in Subsidiary Equity — — 199,028 (199,028 ) — Proceeds from Issuance of Long-Term Debt 440,000 — — — 440,000 Payments of Long-Term Debt (96,142 ) — (106 ) — (96,248 ) Payments of Debt Issuance Costs (16,482 ) — — — (16,482 ) Change in Capital Lease Obligations — — 311 — 311 Proceeds from Issuances of Common Stock 6,875 — — — 6,875 Purchase of Noncontrolling Owner Interest — — (30 ) — (30 ) Dividends Paid (14,953 ) — (809 ) 809 (14,953 ) Net Cash Provided by Financing Activities 324,281 — 358,174 (362,982 ) 319,473 Effect of Exchange Rate Changes on Cash and Cash Equivalents (141 ) — 2,283 — 2,142 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (20,015 ) 281 20,099 — 365 Cash and Cash Equivalents at Beginning of Year 38,484 226 19,323 — 58,033 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 18,469 $ 507 $ 39,422 $ — $ 58,398 Condensed Consolidated Statement of Cash Flows For the year ended December 31, 2016 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company OPERATING ACTIVITIES Net Cash Provided by Operating Activities $ 44,147 $ 239 $ 14,090 $ (598 ) $ 57,878 INVESTING ACTIVITIES Purchases of Property, Plant and Equipment (21,507 ) (13 ) (5,006 ) — (26,526 ) Proceeds from Disposals of Property, Plant and Equipment 377 — 238 — 615 Acquisition of Businesses, Net of Cash Acquired — (11,539 ) (1,394 ) — (12,933 ) Issuance of Long-Term Note Receivable — — (2,000 ) — (2,000 ) Proceeds from Sale of Business — — 285 — 285 Change in Investments in Subsidiaries (19,594 ) — — 19,594 — Loan Borrowings (Payments) from Subsidiaries 8,690 — — (8,690 ) — Decrease in Restricted Cash — — 116 — 116 Net Cash Used in Investing Activities (32,034 ) (11,552 ) (7,761 ) 10,904 (40,443 ) FINANCING ACTIVITIES Loan Borrowings (Payments) from Parent — 7,969 (16,659 ) 8,690 — Change in Subsidiary Equity — 3,570 16,024 (19,594 ) — Payments of Long-Term Debt (3,429 ) — (31 ) — (3,460 ) Proceeds from Issuance of Long-Term Debt 15,000 — — — 15,000 Purchases of Common Stock (12,762 ) — — — (12,762 ) Proceeds from Issuances of Common Stock 5,271 — — — 5,271 Excess Tax Benefit on Stock Plans 686 — — — 686 Dividends Paid (14,293 ) — (598 ) 598 (14,293 ) Net Cash (Used in) Provided by Financing Activities (9,527 ) 11,539 (1,264 ) (10,306 ) (9,558 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents 64 — (1,208 ) — (1,144 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 2,650 226 3,857 — 6,733 Cash and Cash Equivalents at Beginning of Year 35,834 — 15,466 — 51,300 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 38,484 $ 226 $ 19,323 $ — $ 58,033 Condensed Consolidated Statement of Cash Flows For the year ended December 31, 2015 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company OPERATING ACTIVITIES Net Cash Provided by Operating Activities $ 40,764 $ — $ 4,928 $ (460 ) $ 45,232 INVESTING ACTIVITIES Purchases of Property, Plant and Equipment (19,149 ) — (5,631 ) — (24,780 ) Proceeds from Disposals of Property, Plant and Equipment 32 — 304 — 336 Loan Borrowings (Payments) from Subsidiaries 268 — — (268 ) — Proceeds from Sale of Business — — 1,185 — 1,185 Increase in Restricted Cash — — (322 ) — (322 ) Net Cash Used in Investing Activities (18,849 ) — (4,464 ) (268 ) (23,581 ) FINANCING ACTIVITIES Loan (Payments) Borrowings from Parent — — (268 ) 268 — Payments of Long-Term Debt (3,435 ) — (10 ) — (3,445 ) Purchases of Common Stock (45,998 ) — — — (45,998 ) Proceeds from Issuances of Common Stock 1,677 — — — 1,677 Excess Tax Benefit on Stock Plans 859 — — — 859 Dividends Paid (14,498 ) — (460 ) 460 (14,498 ) Net Cash Used in Financing Activities (61,395 ) — (738 ) 728 (61,405 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents 79 — (1,987 ) — (1,908 ) NET DECREASE IN CASH AND CASH EQUIVALENTS (39,401 ) — (2,261 ) — (41,662 ) Cash and Cash Equivalents at Beginning of Year 75,235 — 17,727 — 92,962 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 35,834 $ — $ 15,466 $ — $ 51,300 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts (In thousands) 2017 2016 2015 Allowance for Doubtful Accounts and Returns: Balance at beginning of year $ 3,108 $ 3,615 $ 3,936 Charged to costs and expenses 1,602 561 1,087 Reclassification (1) (526 ) — 172 Charged to other accounts (2) 111 (19 ) (159 ) Deductions (3) (1,054 ) (1,049 ) (1,421 ) Balance at end of year $ 3,241 $ 3,108 $ 3,615 Inventory Reserves: Balance at beginning of year $ 3,644 $ 3,540 $ 3,272 Charged to costs and expenses 1,698 1,455 1,728 Charged to other accounts (2) 183 (50 ) (160 ) Deductions (4) (1,418 ) (1,301 ) (1,300 ) Balance at end of year $ 4,107 $ 3,644 $ 3,540 Valuation Allowance for Deferred Tax Assets: Balance at beginning of year $ 6,865 $ 5,884 $ 5,699 Charged to costs and expenses 1,634 1,295 734 Charged to other accounts (2) 1,192 (314 ) (549 ) Balance at end of year $ 9,691 $ 6,865 $ 5,884 (1) Includes amount reclassified from Allowance for Doubtful Accounts to Other Receivables 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 Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations – Tennant Company is a world leader 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 offers products and solutions consisting of mechanized cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, specialty surface coatings, and business solutions such as financing, rental and leasing programs, and machine-to-machine 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. In April 2017, the Company completed its acquisition of the IPC Group business. IPC manufactures a complete range of commercial cleaning products including mechanized cleaning equipment, wet & dry vacuum cleaners, cleaning tools & carts and high pressure washers. These products are sold into similar vertical market applications as those listed above, but also into office cleaning and hospitality vertical markets through a global direct sales and service organization and network of distributors. IPC markets products and services under the following valued brands: IPC, Gansow, Vaclensa, Portotecnica, Soteco and private-label brands. |
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, 2017 , 2016 and 2015 was a net loss of $15,778 , $44,444 and $44,585 , 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 $653 as of December 31, 2017 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 net realizable value. 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 . |
Equity Method Investments | Equity Method Investment – Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other Assets on the Consolidated Balance Sheets. Under this method of accounting, our share of the net earnings or losses of the investee are presented as a component of Other Expense, Net on the Consolidated Statements of Operations. The detail regarding our equity method investment in i-team North America B.V., a joint venture that operates as the distributor of the i-mop in North America, are further described in Note 3. |
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 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 quantitative impairment test. |
Intangible Assets | Intangible Assets – Intangible Assets consist of definite lived customer lists, trade names and technology. Generally, intangible assets classified as trade names are amortized on a straight-line basis and intangible assets classified as customer lists or technology are amortized using an accelerated method of amortization. |
Impairment of Long-lived Assets and Assets Held for Sale | 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 in 2015; 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 Operations. |
Purchase of Common Stock | Purchase of Common Stock – We repurchase our Common Stock under 2016 and 2015 repurchase programs authorized by our Board of Directors. These programs allow us to repurchase up to an aggregate of 1,393,965 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. |
Debt | Debt Issuance Costs – We record all applicable debt issuance costs related to a recognized debt liability in the Consolidated Balance Sheets as a direct deduction from the carrying amount of the debt liability, if not a line-of-credit arrangement. All debt issuance costs related to line-of-credit arrangements are recorded as part of Other Assets in the Consolidated Balance Sheets and subsequently amortized over the term of the line-of-credit arrangement. We amortize our debt issuance costs using the effective interest method over the term of the debt instrument or line-of-credit arrangement. Amortization of these costs is included as part of Interest Expense in the Consolidated Statements of Operations. |
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 – Substantially all U.S. employees are covered by various retirement benefit plans, including postretirement medical plans and defined contribution savings plans. Pension plan costs are accrued based on actuarial estimates with the required pension cost funded annually, as needed. No new participants have entered the defined benefit 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 Operations. 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 Operations 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 Operations. 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 2017 , 2016 and 2015 such activities amounted to $8,228 , $7,269 and $7,418 , 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 (loss) earnings per share is computed by dividing Net (Loss) Earnings Attributable to Tennant Company by the Weighted Average Shares Outstanding during the period. Diluted earnings per share assumes conversion of potentially dilutive stock options, performance shares, restricted shares and restricted stock units. These conversions are not included in our computation of diluted earnings per share if we have a net loss attributable to Tennant Company in a reporting period, as the effects are anti-dilutive. |
New Accounting Pronouncements | New Accounting Pronouncements – In accordance with ASU No. 2016-09, Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , all excess tax benefits and tax deficiencies are recorded as a component of the provision for income taxes in the reporting period in which they occur. Additionally, we present excess tax benefits along with other income tax cash flows on the Consolidated Statements of Cash Flows as an operating activity rather than, as previously required, a financing activity. For further details regarding the implementation of this ASU and the impact on our financial statements, see Note 2. |
Management Actions (Tables)
Management Actions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Reconciliation of beginning and ending liability balances | A reconciliation to the ending liability balance of severance and related costs as of December 31, 2017 is as follows: Severance and Related Costs 2017 restructuring actions $ 9,558 Cash payments (6,312 ) Foreign currency adjustments 190 December 31, 2017 Balance $ 3,436 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair value measurement of the assets acquired and liabilities assumed as of the date of acquisition: ASSETS Receivables $ 39,984 Inventories 46,442 Other Current Assets 5,314 Assets Held for Sale 2,247 Property, Plant and Equipment 63,890 Intangible Assets Subject to Amortization: Trade Name 26,753 Customer Lists 123,061 Technology 9,631 Other Assets 8,261 Total Identifiable Assets Acquired 325,583 LIABILITIES Accounts Payable 32,227 Accrued Expenses 15,611 Deferred Income Taxes 60,433 Other Liabilities 9,360 Total Identifiable Liabilities Assumed 117,631 Net Identifiable Assets Acquired 207,952 Noncontrolling Interest (2,028 ) Goodwill 147,845 Total Estimated Purchase Price, net of Cash Acquired $ 353,769 The components of the final purchase price of the Florock and Dofesa acquisitions, as described above, have been allocated as follows: Current Assets $ 5,949 Property, Plant and Equipment, net 4,112 Identified Intangible Assets 6,055 Goodwill 1,739 Other Assets 7 Total Assets Acquired 17,862 Current Liabilities 4,764 Other Liabilities 53 Total Liabilities Assumed 4,817 Net Assets Acquired $ 13,045 |
Schedule of Pro Forma Financial Information | The following unaudited pro forma financial information presents the combined results of operations of Tennant Company as if the acquisition of IPC Group had occurred as of January 1, 2016: Years ended December 31 2017 2016 Net Sales Pro forma $ 1,057,127 $ 1,013,710 As reported 1,003,066 808,572 Net Earnings (Loss) Attributable to Tennant Company Pro forma $ 12,288 $ 30,412 As reported (6,195 ) 46,614 Net Earnings (Loss) Attributable to Tennant Company per Diluted Share Pro forma $ 0.68 $ 1.69 As reported (0.35 ) 2.59 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories as of December 31, consisted of the following: 2017 2016 Inventories carried at LIFO: Finished goods $ 43,439 $ 39,142 Raw materials, production parts and work-in-process 23,694 23,980 LIFO reserve (28,429 ) (28,190 ) Total LIFO inventories $ 38,704 $ 34,932 Inventories carried at FIFO: Finished goods $ 54,161 $ 31,044 Raw materials, production parts and work-in-process 34,829 12,646 Total FIFO inventories $ 88,990 $ 43,690 Total inventories $ 127,694 $ 78,622 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 Property, Plant and Equipment: Land $ 18,152 $ 6,328 Buildings and improvements 96,230 58,577 Machinery and manufacturing equipment 151,645 116,221 Office equipment 107,312 89,838 Work in progress 9,429 27,536 Total Property, Plant and Equipment 382,768 298,500 Less: Accumulated Depreciation (202,750 ) (186,403 ) Property, Plant and Equipment, Net $ 180,018 $ 112,097 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2015 $ 60,447 $ (43,644 ) $ 16,803 Additions 3,787 — 3,787 Foreign currency fluctuations (5,837 ) 6,312 475 Balance as of December 31, 2016 $ 58,397 $ (37,332 ) $ 21,065 Additions 147,845 — 147,845 Purchase accounting adjustments (1,865 ) — (1,865 ) Foreign currency fluctuations 22,847 (3,848 ) 18,999 Balance as of December 31, 2017 $ 227,224 $ (41,180 ) $ 186,044 |
Acquired Intangible Assets excluding Goodwill | The balances of acquired Intangible Assets, excluding Goodwill, as of December 31, are as follows: Customer Lists Trade Names Technology Total Balance as of December 31, 2017 Original cost $ 149,355 $ 31,968 $ 14,589 $ 195,912 Accumulated amortization (17,870 ) (2,436 ) (3,259 ) (23,565 ) Carrying amount $ 131,485 $ 29,532 $ 11,330 $ 172,347 Weighted-average original life (in years) 15 10 11 Balance as of December 31, 2016 Original cost $ 8,016 $ 2,000 $ 5,136 $ 15,152 Accumulated amortization (5,948 ) — (2,744 ) (8,692 ) Carrying amount $ 2,068 $ 2,000 $ 2,392 $ 6,460 Weighted-average original life (in years) 15 15 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: 2018 $ 22,345 2019 21,691 2020 20,198 2021 18,561 2022 16,367 Thereafter 73,185 Total $ 172,347 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short-term and Long-term Debt | Debt outstanding at December 31, consisted of the following: 2017 2016 Long-Term Debt: Senior Unsecured Notes $ 300,000 $ — Credit Facility Borrowings 80,000 36,143 Capital Lease Obligations 3,279 51 Total Long-Term Debt 383,279 36,194 Less: Unamortized Debt Issuance Costs (6,440 ) — Less: Current Maturities of Credit Facility Borrowings, Net of Debt Issuance Costs (1) (29,413 ) (3,459 ) Less: Current Maturities of Capital Lease Obligations (1) (1,470 ) — Long-term portion $ 345,956 $ 32,735 (1) Current maturities of long-term debt include $30,000 of current maturities, less $587 of unamortized debt issuance costs, under our 2017 Credit Agreement (defined below) and $1,470 of current maturities of capital lease obligations. |
Aggregate maturities of outstanding debt including capital lease obligations | he aggregate maturities of our outstanding debt, including capital lease obligations as of December 31, 2017 , are as follows: 2018 $ 6,609 2019 7,868 2020 9,921 2021 12,006 2022 46,875 Thereafter 300,000 Total aggregate maturities $ 383,279 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other Current Liabilities as of December 31, consisted of the following: 2017 2016 Other Current Liabilities: Taxes, other than income taxes $ 14,760 $ 7,122 Warranty 12,676 10,960 Deferred revenue 5,815 2,366 Rebates 13,466 11,102 Freight 3,208 4,274 Restructuring 4,267 394 Miscellaneous accrued expenses 10,779 4,385 Other 4,476 3,014 Total Other Current Liabilities $ 69,447 $ 43,617 |
Changes in warranty reserves | The changes in warranty reserves for the three years ended December 31 were as follows: 2017 2016 2015 Beginning balance $ 10,960 $ 10,093 $ 9,686 Product warranty provision 12,124 12,413 11,719 Acquired warranty obligations 1,208 42 — Foreign currency 274 82 (207 ) Claims paid (11,890 ) (11,670 ) (11,105 ) Ending balance $ 12,676 $ 10,960 $ 10,093 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 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) $ 86 $ — $ 184 $ — Foreign currency forward contracts (1) 7,218 34,961 — 13 Derivatives not designated as hedging instruments: Foreign currency forward contracts (1) $ 442 $ 425 $ 12 $ 162 (1) Contracts that mature within the next 12 months are included in Other Current Assets and Other Current Liabilities for asset derivatives and liabilities derivatives, respectively, on our Consolidated Balance Sheets. Contracts with maturities greater than 12 months are included in Other Assets and Other Liabilities for asset derivatives and liability derivatives, respectively, in our Consolidated Balance Sheets. Amounts included in our Consolidated Balance Sheets are recorded net where a right of offset exists with the same derivative counterparty. |
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: 2017 2016 2015 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 (loss) gain recognized in Other Comprehensive Income (Loss), net of tax (1) $ (193 ) $ (16,226 ) $ (259 ) $ (73 ) $ 31 $ 77 Net (loss) gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Sales (178 ) (37 ) (148 ) 7 — 5 Net gain reclassified from Accumulated Other Comprehensive Loss in earnings, net of tax, effective portion to Interest Income — 1,198 — — — — Net loss reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Foreign Currency Transaction Losses — (12,555 ) — — — — Net (loss) gain recognized in earnings (2) (13 ) 10 (11 ) 2 6 (2 ) Derivatives not designated as hedging instruments: Net (loss) gain recognized in earnings (3) $ — $ (6,161 ) $ — $ (890 ) $ — $ 4,047 (1) Net change in the fair value of the effective portion classified in Other Comprehensive Income (Loss). (2) Ineffective portion and amount excluded from effectiveness testing classified in Net Foreign Currency Transaction Losses. (3) Classified in Net Foreign Currency Transaction Losses. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 is as follows: Fair Value Level 1 Level 2 Level 3 Assets: Foreign currency forward exchange contracts $ 7,660 $ — $ 7,660 $ — Foreign currency option contracts 86 — 86 — Total Assets $ 7,746 $ — $ 7,746 $ — Liabilities: Foreign currency forward exchange contracts $ 35,386 $ — $ 35,386 $ — Total Liabilities $ 35,386 $ — $ 35,386 $ — |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Contribution Plan [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.K. Pension Plan and the Tennant Company Retirement Savings Plan are as of December 31, 2017 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 $ 6,305 $ 6,305 $ — $ — Investment Account held by Pension Plan (1) 11,163 — — 11,163 Total $ 17,468 $ 6,305 $ — $ 11,163 (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, 2016 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 $ 663 $ 663 $ — $ — Mutual Funds: U.S. Large-Cap 9,803 9,803 — — U.S. Small-Cap 2,584 2,584 — — International Equities 2,244 2,244 — — Fixed-Income Domestic 4,564 4,564 — — Collective Investment Funds 26,531 — 26,531 — Investment Account held by Pension Plan (1) 9,562 — — 9,562 Total $ 55,951 $ 19,858 $ 26,531 $ 9,562 (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: 2017 2016 Fair value at beginning of year $ 9,562 $ 10,691 Purchases, sales, issuances and settlements, net (535 ) 7 Net gain 1,190 674 Foreign currency 946 (1,810 ) Fair value at end of year $ 11,163 $ 9,562 |
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 2017 2016 2017 2016 2017 2016 Discount rate 3.28 % 3.92 % 2.45 % 2.64 % 3.26 % 3.58 % Rate of compensation increase — % 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 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 3.92 % 4.08 % 3.76 % 2.64 % 3.59 % 3.38 % 3.58 % 3.70 % 3.39 % Expected long-term rate of return on plan assets 5.10 % 5.20 % 5.20 % 3.90 % 4.60 % 4.40 % — — — Rate of compensation increase — % 3.00 % 3.00 % 3.50 % 3.50 % 3.50 % — — — |
Accumulated benefit obligations for all defined benefit plans | The accumulated benefit obligations as of December 31, for all defined benefit plans are as follows: 2017 2016 U.S. Pension Plans $ 1,414 $ 40,961 U.K. Pension Plan 11,131 10,265 German Pension Plan 1,013 871 |
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: 2017 2016 Accumulated benefit obligation $ 2,427 $ 12,597 Fair value of plan assets — 9,562 |
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: 2017 2016 Projected benefit obligation $ 2,427 $ 12,794 Fair value of plan assets — 9,562 |
Assumed healthcare cost trend rates | Assumed healthcare cost trend rates as of December 31 are as follows: 2017 2016 Healthcare cost trend rate assumption for the next year 6.56 % 6.56 % 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 2032 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 $ (31 ) $ 35 Effect on postretirement benefit obligation $ (724 ) $ 820 |
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 2017 2016 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 40,961 $ 41,774 $ 11,136 $ 10,883 $ 10,540 $ 11,144 Service cost — 354 132 103 60 76 Interest cost 1,538 1,659 298 358 363 396 Plan participants' contributions — — 14 14 — — Actuarial loss (gain) 1,811 690 327 1,939 (524 ) 6 Foreign exchange — — 1,097 (1,852 ) — — Benefits paid (1,950 ) (3,516 ) (860 ) (309 ) (835 ) (1,082 ) Settlement (40,946 ) — — — — — Benefit obligation at end of year $ 1,414 $ 40,961 $ 12,144 $ 11,136 $ 9,604 $ 10,540 Change in fair value of plan assets and net accrued liabilities: Fair value of plan assets at beginning of year $ 46,389 $ 47,201 $ 9,562 $ 10,691 $ — $ — Actual return on plan assets 2,536 2,457 1,189 673 — — Employer contributions 276 247 313 303 835 1,082 Plan participants' contributions — — 14 14 — — Excess assets transferred to Defined Contribution Plan (6,305 ) — — — — — Foreign exchange — — 945 (1,810 ) — — Benefits paid (1,950 ) (3,516 ) (860 ) (309 ) (835 ) (1,082 ) Settlement (40,946 ) — — — — — Fair value of plan assets at end of year — 46,389 11,163 9,562 — — Funded status at end of year $ (1,414 ) $ 5,428 $ (981 ) $ (1,574 ) $ (9,604 ) $ (10,540 ) Amounts recognized in the Consolidated Balance Sheets consist of: Noncurrent Other Assets $ — $ 7,087 $ — $ — $ — $ — Current Liabilities (140 ) (239 ) (36 ) (30 ) (771 ) (828 ) Long-Term Liabilities (1,274 ) (1,420 ) (945 ) (1,544 ) (8,833 ) (9,712 ) Net accrued asset (liability) $ (1,414 ) $ 5,428 $ (981 ) $ (1,574 ) $ (9,604 ) $ (10,540 ) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Net actuarial loss (915 ) (5,720 ) (1,245 ) (1,802 ) (41 ) (566 ) Accumulated Other Comprehensive Loss $ (915 ) $ (5,720 ) $ (1,245 ) $ (1,802 ) $ (41 ) $ (566 ) |
Components of the net periodic benefit (credit) cost | The components of the net periodic benefit (credit) cost for the three years ended December 31 were as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Postretirement Medical Benefits 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ — $ 354 $ 480 $ 132 $ 103 $ 153 $ 60 $ 76 $ 96 Interest cost 1,538 1,659 1,711 298 358 396 363 396 393 Expected return on plan assets (2,336 ) (2,400 ) (2,613 ) (379 ) (452 ) (433 ) — — — Amortization of net actuarial loss 43 41 835 74 27 54 — — — Amortization of prior service cost — 41 42 — — — — — — Foreign currency — — — (1 ) 97 (35 ) — — — Net periodic benefit (credit) cost (755 ) (305 ) 455 124 133 135 423 472 489 Curtailment charge — — 25 — — — — — — Settlement charge 6,373 — 225 — — — — — — Net benefit cost (credit) $ 5,618 $ (305 ) $ 705 $ 124 $ 133 $ 135 $ 423 $ 472 $ 489 |
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 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net actuarial loss (gain) $ 1,611 $ 633 $ 195 $ (465 ) $ 1,718 $ (1,517 ) $ (524 ) $ 6 $ (1,618 ) Amortization of prior service cost — (41 ) (67 ) — — — — — — Amortization of net actuarial loss (43 ) (41 ) (1,060 ) (74 ) (27 ) (54 ) — — — Settlement Charge (6,373 ) — — — — — — — — Total recognized in other comprehensive (income) loss $ (4,805 ) $ 551 $ (932 ) $ (539 ) $ 1,691 $ (1,571 ) $ (524 ) $ 6 $ (1,618 ) Total recognized in net benefit cost (credit) and other comprehensive (income) loss $ 813 $ 246 $ (227 ) $ (415 ) $ 1,824 $ (1,436 ) $ (101 ) $ 478 $ (1,129 ) |
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 2018 $ 140 $ 247 $ 771 2019 133 254 803 2020 132 261 849 2021 124 269 751 2022 117 278 741 2023 to 2027 493 1,538 3,509 Total $ 1,139 $ 2,847 $ 7,424 |
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, 2017 and are expected to be recognized as components of net periodic benefit cost during 2018 : Pension Benefits Postretirement Medical Benefits Net actuarial loss $ 78 $ — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 2015 Foreign currency translation adjustments $ (15,778 ) $ (44,444 ) $ (44,585 ) Pension and retiree medical benefits (1,610 ) (5,391 ) (3,647 ) Cash flow hedge (4,935 ) (88 ) 103 Total Accumulated Other Comprehensive Loss $ (22,323 ) $ (49,923 ) $ (48,129 ) |
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, 2016 $ (44,444 ) $ (5,391 ) $ (88 ) $ (49,923 ) Other comprehensive income (loss) before reclassifications 28,666 (300 ) (16,419 ) 11,947 Amounts reclassified from Accumulated Other Comprehensive Loss — 4,081 11,572 15,653 Net current period other comprehensive income (loss) 28,666 3,781 (4,847 ) 27,600 December 31, 2017 $ (15,778 ) $ (1,610 ) $ (4,935 ) $ (22,323 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum rentals for aggregate lease commitments | The minimum rentals for aggregate lease commitments as of December 31, 2017 , were as follows: 2018 $ 14,083 2019 9,540 2020 5,721 2021 2,995 2022 1,996 Thereafter 2,596 Total $ 36,931 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income from continuing operations | Income from continuing operations for the three years ended December 31 was as follows: 2017 2016 2015 U.S. operations $ 7,465 $ 54,018 $ 51,189 Foreign operations (8,757 ) 12,473 (765 ) Total $ (1,292 ) $ 66,491 $ 50,424 |
Income tax expense (benefit) | Income tax expense (benefit) for the three years ended December 31 was as follows: 2017 2016 2015 Current: Federal $ 2,590 $ 15,962 $ 15,117 Foreign 8,701 3,035 3,992 State 812 1,859 1,685 $ 12,103 $ 20,856 $ 20,794 Deferred: Federal $ 1,640 $ (472 ) $ (481 ) Foreign (8,699 ) (434 ) (1,888 ) State (131 ) (73 ) (89 ) $ (7,190 ) $ (979 ) $ (2,458 ) Total: Federal $ 4,230 $ 15,490 $ 14,636 Foreign 2 2,601 2,104 State 681 1,786 1,596 Total Income Tax Expense $ 4,913 $ 19,877 $ 18,336 |
Summary of tax loss carryforward | Tax loss carryforwards and expiration periods by international operation as of December 31, 2017 were as follows: Amount Carryforward Period Netherlands $ 23,733 9 years Germany 12,068 Unlimited Sweden 1,586 Unlimited Norway 655 Unlimited Spain 4,555 Unlimited Total $ 42,597 |
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: 2017 2016 2015 Tax at statutory rate 35.0 % 35.0 % 35.0 % (Decreases) increases in the tax rate from: State and local taxes, net of federal benefit (21.1 ) 1.7 2.2 Effect of foreign operations (70.8 ) (5.5 ) (5.1 ) Transaction costs (226.3 ) — — Effect of 2018 deferred rate change (154.3 ) — — Transition Tax (28.0 ) — — Impairment of Long-Lived Assets — — 7.0 Effect of changes in valuation allowances (126.5 ) 1.9 1.5 Domestic production activities deduction 28.3 (2.2 ) (2.7 ) Share-based payments 90.4 — — Research & Development credit 82.9 (1.3 ) (1.7 ) Other, net 10.2 0.3 0.2 Effective income tax rate (380.2 )% 29.9 % 36.4 % |
Deferred tax assets and liabilities | Deferred tax assets and liabilities were comprised of the following as of December 31: 2017 2016 Deferred Tax Assets: Inventories, principally due to changes in inventory reserves $ 4,757 $ 332 Employee wages and benefits, principally due to accruals for financial reporting purposes 11,031 14,723 Warranty reserves accrued for financial reporting purposes 2,578 3,617 Receivables, principally due to allowance for doubtful accounts and tax accounting method for equipment rentals 2,138 1,413 Tax loss carryforwards 11,383 7,821 Tax credit carryforwards 1,575 1,228 Other 3,630 2,126 Gross Deferred Tax Assets $ 37,092 $ 31,260 Less: valuation allowance (9,691 ) (6,865 ) Total Net Deferred Tax Assets $ 27,401 $ 24,395 Deferred Tax Liabilities: Property, Plant and Equipment, principally due to differences in depreciation and related gains 9,042 6,947 Goodwill and Intangible Assets 60,450 4,180 Total Deferred Tax Liabilities $ 69,492 $ 11,127 Net Deferred Tax (Liabilities) Assets $ (42,091 ) $ 13,268 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2017 2016 Balance at January 1, $ 2,477 $ 2,326 Increases as a result of tax positions taken during the current year 329 545 Increase related to prior period tax positions of acquired entities 236 — Decreases relating to settlement with tax authorities (68 ) (6 ) Reductions as a result of a lapse of the applicable statute of limitations (770 ) (523 ) Increases as a result of foreign currency fluctuations 28 135 Balance at December 31, $ 2,232 $ 2,477 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Assumptions used for the grants | The following table illustrates the valuation assumptions used for the 2017 , 2016 and 2015 grants: 2017 2016 2015 Expected volatility 25 - 26% 29 - 32% 32 - 36% Weighted-average expected volatility 26% 32% 36% Expected dividend yield 1.2 - 1.3% 1.3 - 1.5% 1.1 - 1.2% Weighted-average expected dividend yield 1.3% 1.3% 1.2% Expected term, in years 5 5 5 Risk-free interest rate 1.7 - 2.0% 1.1 - 1.4% 1.4 - 1.6% |
Stock option activity | The following table summarizes the activity during the year ended December 31, 2017 for stock option awards: Shares Weighted-Average Exercise Price Outstanding at beginning of year 1,113,382 $ 42.34 Granted 224,985 72.85 Exercised (159,792 ) 44.04 Forfeited (42,586 ) 63.98 Expired (381 ) 65.12 Outstanding at end of year 1,135,608 $ 47.47 Exercisable at end of year 766,583 $ 39.15 |
Nonvested restricted share awards activity | The following table summarizes the activity during the year ended December 31, 2017 for nonvested restricted share awards: Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of year 117,234 $ 47.62 Granted 20,284 73.06 Vested (32,990 ) 44.36 Forfeited (4,739 ) 63.43 Nonvested at end of year 99,789 $ 53.11 |
Nonvested performance share awards activity | The following table summarizes the activity during the year ended December 31, 2017 for nonvested performance share awards: Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of year 129,096 $ 59.30 Granted 45,792 72.84 Vested (20,060 ) 61.80 Forfeited (31,804 ) 62.55 Nonvested at end of year 123,024 $ 63.09 |
Nonvested restricted stock units activity | The following table summarizes the activity during the year ended December 31, 2017 for nonvested restricted stock units: Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of year 31,038 $ 60.47 Granted 30,750 68.92 Vested (14,638 ) 65.74 Forfeited (4,025 ) 60.82 Nonvested at end of year 43,125 $ 64.67 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The computations of Basic and Diluted (Loss) Earnings Attributable to Tennant Company per Share for the years ended December 31 were as follows: 2017 2016 2015 Numerator: Net (Loss) Earnings Attributable to Tennant Company $ (6,195 ) $ 46,614 $ 32,088 Denominator: Basic - Weighted Average Shares Outstanding 17,695,390 17,523,267 18,015,151 Effect of dilutive securities — 452,916 478,296 Diluted - Weighted Average Shares Outstanding 17,695,390 17,976,183 18,493,447 Basic (Loss) Earnings per Share $ (0.35 ) $ 2.66 $ 1.78 Diluted (Loss) Earnings per Share $ (0.35 ) $ 2.59 $ 1.74 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Financial information by operating segment | The following table presents Net Sales by geographic area for the years ended December 31: 2017 2016 2015 Net Sales: Americas $ 640,274 $ 607,026 $ 591,405 Europe, Middle East, Africa 273,738 129,046 139,834 Asia Pacific 89,054 72,500 80,560 Total $ 1,003,066 $ 808,572 $ 811,799 The following table presents long-lived assets by geographic area as of December 31: 2017 2016 2015 Long-lived assets: Americas $ 132,659 $ 134,737 $ 110,842 Europe, Middle East, Africa 422,338 19,606 11,100 Asia Pacific 4,731 4,334 4,658 Total $ 559,728 $ 158,677 $ 126,600 |
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: 2017 2016 2015 Net Sales: Equipment $ 636,875 $ 491,075 $ 499,634 Parts and consumables 202,452 173,632 175,697 Service and other 132,332 114,719 112,622 Specialty surface coatings 31,407 29,146 23,846 Total $ 1,003,066 $ 808,572 $ 811,799 |
Consolidated Quarterly Data (Ta
Consolidated Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Consolidated Quarterly Data (Unaudited) | Consolidated Quarterly Data (Unaudited) 2017 Q1 Q2 Q3 Q4 Net Sales $ 191,059 $ 270,791 $ 261,921 $ 279,295 Gross Profit 79,736 104,554 104,604 115,527 Net (Loss) Earnings Attributable to Tennant Company (3,957 ) (2,591 ) 3,559 (3,206 ) Basic (Loss) Earnings Attributable to Tennant Company per Share $ (0.22 ) $ (0.15 ) $ 0.20 $ (0.18 ) Diluted (Loss) Earnings Attributable to Tennant Company per Share $ (0.22 ) $ (0.15 ) $ 0.20 $ (0.18 ) 2016 Q1 Q2 Q3 Q4 Net Sales $ 179,864 $ 216,828 $ 200,134 $ 211,746 Gross Profit 77,502 95,289 85,295 93,509 Net Earnings Attributable to Tennant Company 4,439 15,328 11,477 15,370 Basic Earnings Attributable to Tennant Company per Share $ 0.25 $ 0.88 $ 0.66 $ 0.88 Diluted Earnings Attributable to Tennant Company per Share $ 0.25 $ 0.85 $ 0.64 $ 0.85 |
Separate Financial Informatio51
Separate Financial Information of Guarantor Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Income Statement | The following condensed consolidated financial information presents the Condensed Consolidated Statements of Earnings, Comprehensive Income and Cash Flows for each of the years in the three-year period ended December 31, 2017 , and the related Condensed Consolidated Balance Sheets as of December 31, 2017 and 2016 , of Tennant Company ("Parent"), the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis and elimination entries necessary to consolidated the Parent with the Guarantor and Non-Guarantor Subsidiaries. The following condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the company and notes thereto of which this note is an integral part. Condensed Consolidated Statement of Earnings For the year ended December 31, 2017 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company Net Sales $ 454,703 $ 594,405 $ 471,559 $ (517,601 ) $ 1,003,066 Cost of Sales 311,897 488,972 317,151 (519,375 ) 598,645 Gross Profit 142,806 105,433 154,408 1,774 404,421 Operating Expense: Research and Development Expense 27,219 315 4,479 — 32,013 Selling and Administrative Expense 116,388 78,516 150,460 — 345,364 Total Operating Expense 143,607 78,831 154,939 — 377,377 (Loss) Profit from Operations (801 ) 26,602 (531 ) 1,774 27,044 Other Income (Expense): Equity in Earnings of Affiliates 12,754 2,004 28,855 (43,613 ) — Interest Expense, Net (22,659 ) — (299 ) (31 ) (22,989 ) Intercompany Interest Income (Expense) 12,519 (5,776 ) (6,743 ) — — Net Foreign Currency Transaction Gains (Losses) 857 — (4,244 ) — (3,387 ) Other (Expense) Income, Net (3,962 ) (736 ) 2,841 (103 ) (1,960 ) Total Other (Expense) Income, Net (491 ) (4,508 ) 20,410 (43,747 ) (28,336 ) (Loss) Profit Before Income Taxes (1,292 ) 22,094 19,879 (41,973 ) (1,292 ) Income Tax Expense (Benefit) 4,913 8,070 (98 ) (7,972 ) 4,913 Net (Loss) Earnings Including Noncontrolling Interest (6,205 ) 14,024 19,977 (34,001 ) (6,205 ) Net Loss Attributable to Noncontrolling Interest (10 ) — (10 ) 10 (10 ) Net (Loss) Earnings Attributable to Tennant Company $ (6,195 ) $ 14,024 $ 19,987 $ (34,011 ) $ (6,195 ) Condensed Consolidated Statement of Earnings For the year ended December 31, 2016 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company Net Sales $ 455,375 $ 587,815 $ 290,349 $ (524,967 ) $ 808,572 Cost of Sales 299,459 483,075 199,336 (524,893 ) 456,977 Gross Profit 155,916 104,740 91,013 (74 ) 351,595 Operating Expense: Research and Development Expense 32,378 429 1,931 — 34,738 Selling and Administrative Expense 95,189 74,643 78,378 — — 248,210 (Gain) Loss on Sale of Business (82 ) — 231 — 149 Total Operating Expense 127,485 75,072 80,540 — 283,097 Profit from Operations 28,431 29,668 10,473 (74 ) 68,498 Other Income (Expense): Equity in Earnings of Affiliates 34,068 2,192 — (36,260 ) — Interest (Expense) Income, Net (1,204 ) — 255 — (949 ) Intercompany Interest Income (Expense) 7,157 (5,570 ) (1,587 ) — — Net Foreign Currency Transaction Gains (Losses) 648 (652 ) (388 ) — (392 ) Other (Expense) Income, Net (2,609 ) (573 ) 2,516 — (666 ) Total Other Income (Expense), Net 38,060 (4,603 ) 796 (36,260 ) (2,007 ) Profit Before Income Taxes 66,491 25,065 11,269 (36,334 ) 66,491 Income Tax Expense 19,877 9,443 2,427 (11,870 ) 19,877 Net Earnings $ 46,614 $ 15,622 $ 8,842 $ (24,464 ) $ 46,614 Condensed Consolidated Statement of Earnings For the year ended December 31, 2015 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company Net Sales $ 480,418 $ 586,154 $ 306,506 $ (561,279 ) $ 811,799 Cost of Sales 320,620 489,203 213,085 (560,169 ) 462,739 Gross Profit 159,798 96,951 93,421 (1,110 ) 349,060 Operating Expense: Research and Development Expense 29,888 389 2,138 — 32,415 Selling and Administrative Expense 97,301 72,954 82,015 — 252,270 Impairment of Long-Lived Assets — — 11,199 — 11,199 Total Operating Expense 127,189 73,343 95,352 — 295,884 Profit (Loss) from Operations 32,609 23,608 (1,931 ) (1,110 ) 53,176 Other Income (Expense): Equity in Earnings of Affiliates 14,766 2,122 — (16,888 ) — Interest (Expense) Income, Net (1,221 ) — 80 — (1,141 ) Intercompany Interest Income (Expense) 7,368 (5,400 ) (1,968 ) — — Net Foreign Currency Transaction Gains (Losses) 535 (777 ) (712 ) — (954 ) Other (Expense) Income, Net (3,633 ) (422 ) 3,398 — (657 ) Total Other Income (Expense), Net 17,815 (4,477 ) 798 (16,888 ) (2,752 ) Profit (Loss) Before Income Taxes 50,424 19,131 (1,133 ) (17,998 ) 50,424 Income Tax Expense 18,336 4,619 1,630 (6,249 ) 18,336 Net Earnings (Loss) $ 32,088 $ 14,512 $ (2,763 ) $ (11,749 ) $ 32,088 |
Condensed Statement of Comprehensive Income | Condensed Consolidated Statement of Comprehensive Income For the year ended December 31, 2017 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company Net Earnings $ (6,205 ) $ 14,024 $ 19,977 $ (34,001 ) $ (6,205 ) Other Comprehensive Income (Loss): Foreign currency translation adjustments 28,356 1,215 2,960 (4,175 ) 28,356 Pension and retiree medical benefits 5,868 — 538 (538 ) 5,868 Cash flow hedge (7,731 ) — — — (7,731 ) Income Taxes: Foreign currency translation adjustments 310 — 310 (310 ) 310 Pension and retiree medical benefits (2,087 ) — (99 ) 99 (2,087 ) Cash flow hedge 2,884 — — — 2,884 Total Other Comprehensive (Loss) Income, net of tax 27,600 1,215 3,709 (4,924 ) 27,600 Total Comprehensive Income Including Noncontrolling Interest 21,395 15,239 23,686 (38,925 ) 21,395 Comprehensive Loss Attributable to Noncontrolling Interest (10 ) — (10 ) 10 (10 ) Comprehensive Income Attributable to Tennant Company $ 21,405 $ 15,239 $ 23,696 $ (38,935 ) $ 21,405 Condensed Consolidated Statement of Comprehensive Income For the year ended December 31, 2016 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company Net Earnings $ 46,614 $ 15,622 $ 8,842 $ (24,464 ) $ 46,614 Other Comprehensive Income (Loss): Foreign currency translation adjustments 109 270 3,534 (3,804 ) 109 Pension and retiree medical benefits (2,248 ) — (1,691 ) 1,691 (2,248 ) Cash flow hedge (305 ) — — — (305 ) Income Taxes: Foreign currency translation adjustments 32 — 32 (32 ) 32 Pension and retiree medical benefits 504 — 296 (296 ) 504 Cash flow hedge 114 — — — 114 Total Other Comprehensive (Loss) Income, net of tax (1,794 ) 270 2,171 (2,441 ) (1,794 ) Comprehensive Income $ 44,820 $ 15,892 $ 11,013 $ (26,905 ) $ 44,820 Condensed Consolidated Statement of Comprehensive Income For the year ended December 31, 2015 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company Net Earnings $ 32,088 $ 14,512 $ (2,763 ) $ (11,749 ) $ 32,088 Other Comprehensive (Loss) Income: Foreign currency translation adjustments (12,520 ) (1,082 ) (12,903 ) 13,985 (12,520 ) Pension and retiree medical benefits 4,121 — 1,571 (1,571 ) 4,121 Cash flow hedge 164 — — — 164 Income Taxes: Foreign currency translation adjustments 25 — 25 (25 ) 25 Pension and retiree medical benefits (1,265 ) — (314 ) 314 (1,265 ) Cash flow hedge (61 ) — — — (61 ) Total Other Comprehensive Loss, net of tax (9,536 ) (1,082 ) (11,621 ) 12,703 (9,536 ) Comprehensive Income (Loss) $ 22,552 $ 13,430 $ (14,384 ) $ 954 $ 22,552 |
Condensed Balance Sheet | Condensed Consolidated Balance Sheet As of December 31, 2017 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company ASSETS Current Assets: Cash and Cash Equivalents $ 18,469 $ 507 $ 39,422 $ — $ 58,398 Restricted Cash — — 653 — 653 Net Receivables 683 88,629 120,204 — 209,516 Intercompany Receivables 53,444 133,778 — (187,222 ) — Inventories 29,450 12,695 94,542 (8,993 ) 127,694 Prepaid Expenses 8,774 1,172 9,405 — 19,351 Other Current Assets 4,030 — 3,473 — 7,503 Total Current Assets 114,850 236,781 267,699 (196,215 ) 423,115 Property, Plant and Equipment 225,064 12,155 145,549 — 382,768 Accumulated Depreciation (146,320 ) (6,333 ) (50,097 ) — (202,750 ) Property, Plant and Equipment, Net 78,744 5,822 95,452 — 180,018 Deferred Income Taxes 1,308 2,669 7,157 — 11,134 Investment in Affiliates 392,486 11,273 20,811 (424,570 ) — Intercompany Loans 304,822 — 4,983 (309,805 ) — Goodwill 12,869 1,739 171,436 — 186,044 Intangible Assets, Net 2,105 2,898 167,344 — 172,347 Other Assets 10,363 — 10,956 — 21,319 Total Assets $ 917,547 $ 261,182 $ 745,838 $ (930,590 ) $ 993,977 LIABILITIES AND TOTAL EQUITY Current Liabilities: Current Portion of Long-Term Debt $ 29,413 $ — $ 1,470 $ — $ 30,883 Accounts Payable 39,927 3,018 53,137 — 96,082 Intercompany Payables 133,778 1,963 51,481 (187,222 ) — Employee Compensation and Benefits 8,311 10,355 18,591 — 37,257 Income Taxes Payable 366 — 2,472 — 2,838 Other Current Liabilities 20,183 15,760 33,504 — 69,447 Total Current Liabilities 231,978 31,096 160,655 (187,222 ) 236,507 Long-Term Liabilities: Long-Term Debt 344,147 — 1,809 — 345,956 Intercompany Loans — 128,000 181,805 (309,805 ) — Employee-Related Benefits 11,160 3,992 8,715 — 23,867 Deferred Income Taxes — — 53,225 — 53,225 Other Liabilities 31,788 2,483 1,677 — 35,948 Total Long-Term Liabilities 387,095 134,475 247,231 (309,805 ) 458,996 Total Liabilities 619,073 165,571 407,886 (497,027 ) 695,503 Equity: Common Stock 6,705 — 11,131 (11,131 ) 6,705 Additional Paid-In Capital 15,089 72,483 384,460 (456,943 ) 15,089 Retained Earnings 297,032 23,797 (21,219 ) (2,578 ) 297,032 Accumulated Other Comprehensive Loss (22,323 ) (669 ) (38,391 ) 39,060 (22,323 ) Total Tennant Company Shareholders’ Equity 296,503 95,611 335,981 (431,592 ) 296,503 Noncontrolling Interest 1,971 — 1,971 (1,971 ) 1,971 Total Equity 298,474 95,611 337,952 (433,563 ) 298,474 Total Liabilities and Total Equity $ 917,547 $ 261,182 $ 745,838 $ (930,590 ) $ 993,977 Condensed Consolidated Balance Sheet As of December 31, 2016 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company ASSETS Current Assets: Cash and Cash Equivalents $ 38,484 $ 226 $ 19,323 $ — $ 58,033 Restricted Cash — — 517 — 517 Net Receivables 209 85,219 63,706 — 149,134 Intercompany Receivables 50,437 123,289 2,251 (175,977 ) — Inventories 26,422 12,821 49,829 (10,450 ) 78,622 Prepaid Expenses 4,120 1,151 3,933 — 9,204 Other Current Assets 2,402 — 10 — 2,412 Total Current Assets 122,074 222,706 139,569 (186,427 ) 297,922 Property, Plant and Equipment 225,651 12,996 59,853 — 298,500 Accumulated Depreciation (144,281 ) (6,175 ) (35,947 ) — (186,403 ) Property, Plant and Equipment, Net 81,370 6,821 23,906 — 112,097 Deferred Income Taxes 3,048 3,281 7,110 — 13,439 Investment in Affiliates 157,004 9,021 — (166,025 ) — Intercompany Loans 130,000 — — (130,000 ) — Goodwill 12,869 1,439 6,757 — 21,065 Intangible Assets, Net — 3,200 3,260 — 6,460 Other Assets 10,189 27 8,838 — 19,054 Total Assets $ 516,554 $ 246,495 $ 189,440 $ (482,452 ) $ 470,037 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current Portion of Long-Term Debt $ 3,429 $ — $ 30 $ — $ 3,459 Accounts Payable 30,867 2,599 13,942 — 47,408 Intercompany Payables 125,540 1,249 49,188 (175,977 ) — Employee Compensation and Benefits 12,025 15,261 8,711 — 35,997 Income Taxes Payable 1,410 — 938 — 2,348 Other Current Liabilities 15,329 13,348 14,940 — 43,617 Total Current Liabilities 188,600 32,457 87,749 (175,977 ) 132,829 Long-Term Liabilities: Long-Term Debt 32,714 — 21 — 32,735 Intercompany Loans — 128,000 2,000 (130,000 ) — Employee-Related Benefits 14,291 3,704 3,139 — 21,134 Deferred Income Taxes — — 171 — 171 Other Liabilities 2,406 1,295 924 — 4,625 Total Long-Term Liabilities 49,411 132,999 6,255 (130,000 ) 58,665 Total Liabilities 238,011 165,456 94,004 (305,977 ) 191,494 Shareholders' Equity: Common Stock 6,633 — 11,131 (11,131 ) 6,633 Additional Paid-In Capital 3,653 72,483 158,592 (231,075 ) 3,653 Retained Earnings 318,180 9,771 (32,187 ) 22,416 318,180 Accumulated Other Comprehensive Loss (49,923 ) (1,215 ) (42,100 ) 43,315 (49,923 ) Total Shareholders’ Equity 278,543 81,039 95,436 (176,475 ) 278,543 Total Liabilities and Shareholders’ Equity $ 516,554 $ 246,495 $ 189,440 $ (482,452 ) $ 470,037 |
Condensed Cash Flow Statement | Condensed Consolidated Statement of Cash Flows For the year ended December 31, 2017 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company OPERATING ACTIVITIES Net Cash Provided by Operating Activities $ 26,992 $ 280 $ 27,711 $ (809 ) $ 54,174 INVESTING ACTIVITIES Purchases of Property, Plant and Equipment (9,558 ) — (10,879 ) — (20,437 ) Proceeds from Disposals of Property, Plant and Equipment 23 1 2,487 — 2,511 Proceeds from Principal Payments Received on Long-Term Note Receivable — — 667 — 667 Issuance of Long-Term Note Receivable — — (1,500 ) — (1,500 ) Acquisition of Businesses, Net of Cash Acquired (304 ) — (353,769 ) — (354,073 ) Purchase of Intangible Asset (2,500 ) — — — (2,500 ) Change in Investments in Subsidiaries (199,028 ) — — 199,028 — Loan (Payments) Borrowings from Subsidiaries (159,780 ) — (4,983 ) 164,763 — Increase in Restricted Cash — — (92 ) — (92 ) Net Cash (Used in) Provided by Investing Activities (371,147 ) 1 (368,069 ) 363,791 (375,424 ) FINANCING ACTIVITIES Proceeds from Short-Term Debt 303,000 — — — 303,000 Repayments of Short-Term Debt (303,000 ) — — — (303,000 ) Loan Borrowings (Payments) from Parent 4,983 — 159,780 (164,763 ) — Change in Subsidiary Equity — — 199,028 (199,028 ) — Proceeds from Issuance of Long-Term Debt 440,000 — — — 440,000 Payments of Long-Term Debt (96,142 ) — (106 ) — (96,248 ) Payments of Debt Issuance Costs (16,482 ) — — — (16,482 ) Change in Capital Lease Obligations — — 311 — 311 Proceeds from Issuances of Common Stock 6,875 — — — 6,875 Purchase of Noncontrolling Owner Interest — — (30 ) — (30 ) Dividends Paid (14,953 ) — (809 ) 809 (14,953 ) Net Cash Provided by Financing Activities 324,281 — 358,174 (362,982 ) 319,473 Effect of Exchange Rate Changes on Cash and Cash Equivalents (141 ) — 2,283 — 2,142 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (20,015 ) 281 20,099 — 365 Cash and Cash Equivalents at Beginning of Year 38,484 226 19,323 — 58,033 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 18,469 $ 507 $ 39,422 $ — $ 58,398 Condensed Consolidated Statement of Cash Flows For the year ended December 31, 2016 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company OPERATING ACTIVITIES Net Cash Provided by Operating Activities $ 44,147 $ 239 $ 14,090 $ (598 ) $ 57,878 INVESTING ACTIVITIES Purchases of Property, Plant and Equipment (21,507 ) (13 ) (5,006 ) — (26,526 ) Proceeds from Disposals of Property, Plant and Equipment 377 — 238 — 615 Acquisition of Businesses, Net of Cash Acquired — (11,539 ) (1,394 ) — (12,933 ) Issuance of Long-Term Note Receivable — — (2,000 ) — (2,000 ) Proceeds from Sale of Business — — 285 — 285 Change in Investments in Subsidiaries (19,594 ) — — 19,594 — Loan Borrowings (Payments) from Subsidiaries 8,690 — — (8,690 ) — Decrease in Restricted Cash — — 116 — 116 Net Cash Used in Investing Activities (32,034 ) (11,552 ) (7,761 ) 10,904 (40,443 ) FINANCING ACTIVITIES Loan Borrowings (Payments) from Parent — 7,969 (16,659 ) 8,690 — Change in Subsidiary Equity — 3,570 16,024 (19,594 ) — Payments of Long-Term Debt (3,429 ) — (31 ) — (3,460 ) Proceeds from Issuance of Long-Term Debt 15,000 — — — 15,000 Purchases of Common Stock (12,762 ) — — — (12,762 ) Proceeds from Issuances of Common Stock 5,271 — — — 5,271 Excess Tax Benefit on Stock Plans 686 — — — 686 Dividends Paid (14,293 ) — (598 ) 598 (14,293 ) Net Cash (Used in) Provided by Financing Activities (9,527 ) 11,539 (1,264 ) (10,306 ) (9,558 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents 64 — (1,208 ) — (1,144 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 2,650 226 3,857 — 6,733 Cash and Cash Equivalents at Beginning of Year 35,834 — 15,466 — 51,300 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 38,484 $ 226 $ 19,323 $ — $ 58,033 Condensed Consolidated Statement of Cash Flows For the year ended December 31, 2015 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Tennant Company OPERATING ACTIVITIES Net Cash Provided by Operating Activities $ 40,764 $ — $ 4,928 $ (460 ) $ 45,232 INVESTING ACTIVITIES Purchases of Property, Plant and Equipment (19,149 ) — (5,631 ) — (24,780 ) Proceeds from Disposals of Property, Plant and Equipment 32 — 304 — 336 Loan Borrowings (Payments) from Subsidiaries 268 — — (268 ) — Proceeds from Sale of Business — — 1,185 — 1,185 Increase in Restricted Cash — — (322 ) — (322 ) Net Cash Used in Investing Activities (18,849 ) — (4,464 ) (268 ) (23,581 ) FINANCING ACTIVITIES Loan (Payments) Borrowings from Parent — — (268 ) 268 — Payments of Long-Term Debt (3,435 ) — (10 ) — (3,445 ) Purchases of Common Stock (45,998 ) — — — (45,998 ) Proceeds from Issuances of Common Stock 1,677 — — — 1,677 Excess Tax Benefit on Stock Plans 859 — — — 859 Dividends Paid (14,498 ) — (460 ) 460 (14,498 ) Net Cash Used in Financing Activities (61,395 ) — (738 ) 728 (61,405 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents 79 — (1,987 ) — (1,908 ) NET DECREASE IN CASH AND CASH EQUIVALENTS (39,401 ) — (2,261 ) — (41,662 ) Cash and Cash Equivalents at Beginning of Year 75,235 — 17,727 — 92,962 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 35,834 $ — $ 15,466 $ — $ 51,300 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |||
Accumulated Other Comprehensive Loss, Foreign Currency Translation Adjustment, Net of Tax | $ 15,778 | $ 44,444 | $ 44,585 |
Restricted Cash | 653 | 517 | |
Impairment of Long-Lived Assets | $ 0 | 0 | 11,199 |
Number of shares authorized to be repurchased under our stock repurchase programs | 1,393,965 | ||
Machine warranty, range minimum (in years) | 1 year | ||
Machine warranty, range maximum (in years) | 4 years | ||
Advertising Costs | $ 8,228 | $ 7,269 | $ 7,418 |
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 |
Investment in Joint Venture (De
Investment in Joint Venture (Details) - Corporate Joint Venture - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 | Jan. 01, 2017 |
Related Party Transaction [Line Items] | |||
Ownership interest (as a percent) | 50.00% | ||
Investment in joint venture | $ 75 | ||
Note receivable from joint venture | $ 1,500 |
Newly Adopted Accounting Pron54
Newly Adopted Accounting Pronouncements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Changes and Error Corrections [Abstract] | |
Discrete tax benefits | $ 1,168 |
Management Actions (Details)
Management Actions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 8,018 | ||
Restructuring Costs and Asset Impairment Charges | $ 961 | ||
Approximate time anticipated savings will offset the restructuring charge | 1 year | 1 year | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges, net of noncash expenses | $ 9,558 | ||
Cash Payments | (6,312) | ||
Foreign currency adjustments | (190) | ||
Restructuring Reserve ending balance | $ 3,436 | $ 3,436 | |
Selling, General and Administrative Expenses | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges, net of noncash expenses | $ 2,501 |
Acquisitions (Details 1)
Acquisitions (Details 1) | Apr. 06, 2017USD ($) | Sep. 01, 2016USD ($) | Jul. 28, 2016USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||||||
Goodwill | $ 21,065,000 | $ 16,803,000 | $ 186,044,000 | $ 21,065,000 | $ 16,803,000 | |||||||||
Intangible Assets Subject to Amortization: | 159,445,000 | |||||||||||||
Amortization expense | 17,054,000 | 409,000 | 1,481,000 | |||||||||||
Net Sales | 279,295,000 | $ 261,921,000 | $ 270,791,000 | $ 191,059,000 | 211,746,000 | $ 200,134,000 | $ 216,828,000 | $ 179,864,000 | 1,003,066,000 | 808,572,000 | 811,799,000 | |||
Net Earnings | (3,206,000) | $ 3,559,000 | $ (2,591,000) | $ (3,957,000) | $ 15,370,000 | $ 11,477,000 | $ 15,328,000 | $ 4,439,000 | (6,195,000) | 46,614,000 | $ 32,088,000 | |||
Senior Secured Credit Facility | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Long-term Line of Credit, Noncurrent | $ 420,000,000 | |||||||||||||
IP Cleaning S.p.A | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||||||||||
Business Combination, Consideration Transferred | $ 353,769,000 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 8,804,000 | |||||||||||||
Goodwill | 147,845,000 | |||||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 | |||||||||||||
Intangible Assets Subject to Amortization: | 159,445,000 | |||||||||||||
Amortization expense | 15,746,000 | |||||||||||||
Net Sales | 174,444,000 | |||||||||||||
Net Earnings | 14,483,000 | |||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | 5,237,000 | |||||||||||||
Business Combination, Acquisition Related Costs | 10,408,000 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables, Gross | 44,654,000 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables, Uncollectible | 4,670,000 | |||||||||||||
Business Combination, Purchase Accounting Adjustment, Inventory Step Up Adjustment | $ 7,245,000 | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 117,631,000 | |||||||||||||
Crawford Laboratories, Inc. | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business Combination, Consideration Transferred | $ 11,843,000 | |||||||||||||
Business Acquisition, Effective Date of Acquisition | Jul. 28, 2016 | |||||||||||||
Business Acquisition, Name of Acquired Entity | Crawford Laboratories, Inc. and affiliates thereof ("Sellers") | |||||||||||||
Payments to Acquire Businesses, Gross | $ 10,965,000 | |||||||||||||
Payments to Acquire Businesses, Deferred | $ 878,000 | |||||||||||||
Business Acquisition, Number of Deferred Payments | 2 | |||||||||||||
Business Acquisition, Amount of first deferred payment | $ 575,000 | $ 575,000 | ||||||||||||
Dofesa Barrido Mecanizado | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business Combination, Consideration Transferred | $ 4,650,000 | |||||||||||||
Business Acquisition, Effective Date of Acquisition | Sep. 1, 2016 | |||||||||||||
Business Acquisition, Name of Acquired Entity | Dofesa Barrido Mecanizado ("Dofesa") | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 3,448,000 | |||||||||||||
Business Combination, Consideration Transferred, Net | 1,202,000 | |||||||||||||
Business Acquisition, Transaction Costs | $ 191,000 | |||||||||||||
Customer Lists | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Weighted-average original life (in years) | 15 years | 15 years | ||||||||||||
Customer Lists | IP Cleaning S.p.A | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible Assets Subject to Amortization: | $ 123,061,000 | |||||||||||||
Weighted-average original life (in years) | 15 years | |||||||||||||
Trade Name | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Weighted-average original life (in years) | 10 years | 15 years | ||||||||||||
Trade Name | IP Cleaning S.p.A | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible Assets Subject to Amortization: | $ 26,753,000 | |||||||||||||
Weighted-average original life (in years) | 10 years | |||||||||||||
Technology | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Weighted-average original life (in years) | 11 years | 13 years | ||||||||||||
Technology | IP Cleaning S.p.A | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible Assets Subject to Amortization: | $ 9,631,000 | |||||||||||||
Weighted-average original life (in years) | 10 years |
Acquisitions (Details 2)
Acquisitions (Details 2) - USD ($) $ in Thousands | Dec. 31, 2017 | Apr. 06, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Intangible Assets Subject to Amortization: | $ 159,445 | |||
LIABILITIES | ||||
Goodwill | $ 186,044 | $ 21,065 | $ 16,803 | |
IP Cleaning S.p.A | ||||
ASSETS | ||||
Receivables | $ 39,984 | |||
Inventories | 46,442 | |||
Other Current Assets | 5,314 | |||
Assets Held for Sale | 2,247 | |||
Property, Plant and Equipment | 63,890 | |||
Intangible Assets Subject to Amortization: | 159,445 | |||
Other Assets | 8,261 | |||
Total Identifiable Assets Acquired | 325,583 | |||
LIABILITIES | ||||
Accounts Payable | 32,227 | |||
Accrued Expenses | 15,611 | |||
Deferred Income Taxes | 60,433 | |||
Other Liabilities | 9,360 | |||
Total Identifiable Liabilities Assumed | 117,631 | |||
Net Identifiable Assets Acquired | 207,952 | |||
Noncontrolling Interest | (2,028) | |||
Goodwill | 147,845 | |||
Total Estimated Purchase Price, net of Cash Acquired | 353,769 | |||
Trade Name | IP Cleaning S.p.A | ||||
ASSETS | ||||
Intangible Assets Subject to Amortization: | 26,753 | |||
Customer Lists | IP Cleaning S.p.A | ||||
ASSETS | ||||
Intangible Assets Subject to Amortization: | 123,061 | |||
Technology | IP Cleaning S.p.A | ||||
ASSETS | ||||
Intangible Assets Subject to Amortization: | $ 9,631 |
Acquisitions (Details 3)
Acquisitions (Details 3) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Sales | |||||||||||
As reported | $ 279,295 | $ 261,921 | $ 270,791 | $ 191,059 | $ 211,746 | $ 200,134 | $ 216,828 | $ 179,864 | $ 1,003,066 | $ 808,572 | $ 811,799 |
Net Earnings (Loss) Attributable to Tennant Company | |||||||||||
As reported | $ (3,206) | $ 3,559 | $ (2,591) | $ (3,957) | $ 15,370 | $ 11,477 | $ 15,328 | $ 4,439 | $ (6,195) | $ 46,614 | $ 32,088 |
Net Earnings (Loss) Attributable to Tennant Company per Diluted Share | |||||||||||
As reported (in dollars per share) | $ (0.18) | $ 0.20 | $ (0.15) | $ (0.22) | $ 0.85 | $ 0.64 | $ 0.85 | $ 0.25 | $ (0.35) | $ 2.59 | $ 1.74 |
IP Cleaning S.p.A | |||||||||||
Net Sales | |||||||||||
Pro forma | $ 1,057,127 | $ 1,013,710 | |||||||||
As reported | 174,444 | ||||||||||
Net Earnings (Loss) Attributable to Tennant Company | |||||||||||
Pro forma | 12,288 | $ 30,412 | |||||||||
As reported | $ 14,483 | ||||||||||
Net Earnings (Loss) Attributable to Tennant Company per Diluted Share | |||||||||||
Pro forma (in dollars per share) | $ 0.68 | $ 1.69 |
Acquisitions (Details 4)
Acquisitions (Details 4) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Intangible Assets Subject to Amortization: | $ 159,445 | ||
Goodwill | $ 186,044 | $ 21,065 | $ 16,803 |
Series of Individually Immaterial Business Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Current Assets | 5,949 | ||
Property, Plant and Equipment | 4,112 | ||
Intangible Assets Subject to Amortization: | 6,055 | ||
Goodwill | 1,739 | ||
Other Assets | 7 | ||
Total Identifiable Assets Acquired | 17,862 | ||
Current Liabilities | 4,764 | ||
Other Liabilities | 53 | ||
Total Identifiable Liabilities Assumed | 4,817 | ||
Net Assets Acquired | $ 13,045 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventories carried at LIFO: | ||
Finished goods | $ 43,439 | $ 39,142 |
Raw materials, production parts and work-in-process | 23,694 | 23,980 |
LIFO Reserve | (28,429) | (28,190) |
Total LIFO inventories | 38,704 | 34,932 |
Inventories carried at FIFO: | ||
Finished goods | 54,161 | 31,044 |
Raw materials, production parts and work-in-process | 34,829 | 12,646 |
Total FIFO inventories | 88,990 | 43,690 |
Inventories | $ 127,694 | $ 78,622 |
Property, Plant and Equipment61
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment | |||
Property, Plant and Equipment | $ (382,768) | $ (298,500) | |
Accumulated Depreciation, Property, Plant and Equipment prior to Assets Held for Sale | 202,750 | 186,403 | |
Property, Plant and Equipment, Net | 180,018 | 112,097 | |
Depreciation expense | 26,199 | 17,891 | $ 16,550 |
Land | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment | (18,152) | (6,328) | |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment | (96,230) | (58,577) | |
Machinery and manufacturing equipment | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment | (151,645) | (116,221) | |
Office equipment | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment | (107,312) | (89,838) | |
Work in progress | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment | $ (9,429) | $ (27,536) |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill, Gross | |||
Balance, beginning of period | $ 58,397 | $ 60,447 | |
Additions | 147,845 | 3,787 | |
Purchase accounting adjustments | (1,865) | ||
Foreign currency fluctuations | 22,847 | (5,837) | |
Balance, end of period | 227,224 | 58,397 | $ 60,447 |
Accumulated Impairment Losses | |||
Balance, beginning of period | (37,332) | (43,644) | |
Foreign currency fluctuations | 3,848 | 6,312 | |
Balance, end of period | (41,180) | (37,332) | (43,644) |
Goodwill, Net | |||
Balance, beginning of period | 21,065 | 16,803 | |
Additions | 147,845 | 3,787 | |
Purchase accounting adjustments | (1,865) | ||
Foreign currency fluctuations | 18,999 | 475 | |
Balance, end of period | 186,044 | 21,065 | 16,803 |
Acquired Finite-lived Intangible Assets | |||
Original cost | 195,912 | 15,152 | |
Accumulated amortization | (23,565) | (8,692) | |
Intangible Assets, Net | 172,347 | 6,460 | |
Acquired intangibles | 159,445 | ||
Payments to acquire intangible assets | $ 2,500 | 0 | 0 |
Finite-lived intangible asset, useful life (in years) | 5 years | ||
Amortization expense | $ 17,054 | 409 | $ 1,481 |
Estimated aggregate amortization expense of Intangible Assets | |||
2,018 | 22,345 | ||
2,019 | 21,691 | ||
2,020 | 20,198 | ||
2,021 | 18,561 | ||
2,022 | 16,367 | ||
Thereafter | 73,185 | ||
Total | 172,347 | ||
Customer Lists | |||
Acquired Finite-lived Intangible Assets | |||
Original cost | 149,355 | 8,016 | |
Accumulated amortization | (17,870) | (5,948) | |
Intangible Assets, Net | $ 131,485 | $ 2,068 | |
Weighted-average original life (in years) | 15 years | 15 years | |
Trade Name | |||
Acquired Finite-lived Intangible Assets | |||
Original cost | $ 31,968 | $ 2,000 | |
Accumulated amortization | (2,436) | 0 | |
Intangible Assets, Net | $ 29,532 | $ 2,000 | |
Weighted-average original life (in years) | 10 years | 15 years | |
Technology | |||
Acquired Finite-lived Intangible Assets | |||
Original cost | $ 14,589 | $ 5,136 | |
Accumulated amortization | (3,259) | (2,744) | |
Intangible Assets, Net | $ 11,330 | $ 2,392 | |
Weighted-average original life (in years) | 11 years | 13 years |
Debt Narrative (Details)
Debt Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Apr. 18, 2017USD ($) | Apr. 04, 2017USD ($) | |
Line of Credit Facility | ||||
Weighted average interest rate at end of period | 5.07% | |||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 6,609,000 | |||
Letters of Credit Outstanding, Amount | 4,670,000 | |||
Commitment fees on unused lines of credit | $ 570,000 | |||
Debt, Weighted Average Interest Rate, net of Currency Swap Contract | 4.24% | |||
JPMorgan, 2017 Credit Agreement | ||||
Line of Credit Facility | ||||
LineOfCreditFacilityInterestRateMarginSpreadAddedToFederalFundsRateOnUSDollarBorrowings | 0.50% | |||
Line Of Credit Facility, Minimum LIBOR one month interest rate on borrowings denominated in US dollars | 0.00% | |||
LineOfCreditFacilityInterestRateMarginSpreadAddedtoLIBORRateOnUSDollarBorrowings | 1.00% | |||
Line Of Credit Facility, Minimum LIBOR one month interest rate on eurocurrency borrowings | 0.00% | |||
JPMorgan Chase Bank, National Association, Amended and Restated Credit Agreement | ||||
Line of Credit Facility | ||||
Weighted average interest rate at end of period | 1.64% | |||
Outstanding Borrowings | $ 25,000,000 | $ 45,000,000 | ||
Prudential Investment Management, Inc. Private Shelf Agreement | ||||
Line of Credit Facility | ||||
Maximum borrowing capacity | 80,000,000 | |||
Outstanding Borrowings | 11,143,000 | |||
Series A Notes | ||||
Line of Credit Facility | ||||
Face amount | $ 4,000,000 | |||
Interest rate, Stated percentage | 4.00% | |||
Debt Instrument Term | 7 years | |||
Maturity date range, Start | Mar. 8, 2017 | |||
Maturity date range, End | Mar. 8, 2018 | |||
Series B Notes | ||||
Line of Credit Facility | ||||
Face amount | $ 7,143,000 | |||
Interest rate, Stated percentage | 4.10% | |||
Debt Instrument Term | 10 years | |||
Maturity date range, Start | Jun. 28, 2017 | |||
Maturity date range, End | Jun. 28, 2021 | |||
HSBC Bank (China) Company Limited, Shanghai Branch | ||||
Line of Credit Facility | ||||
Maximum borrowing capacity | $ 5,000,000 | |||
Outstanding Borrowings | $ 0 | |||
Line of Credit | ||||
Line of Credit Facility | ||||
Outstanding Borrowings | $ 60,000,000 | |||
Line of Credit | JPMorgan, 2017 Credit Agreement | ||||
Line of Credit Facility | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 400,000,000 | |||
Percentage of stock of first tier foreign subsidiaries granted to lenders | 65.00% | |||
Minimum interest rate spread added to adjusted LIBOR rate based on leverage ratio on Eurocurrency borrowings | 1.25% | |||
Maximum interest rate spread added to adjusted LIBOR rate based on leverage ratio on Eurocurrency borrowings | 2.25% | |||
Face amount | $ 300,000,000 | |||
LineOfCreditFacilityMinimumInterestRateMarginSpreadAddedtoLIBORRateOnUSDollarBorrowings | 0.25% | |||
LineOfCreditFacilityMaximumInterestRateMarginSpreadAddedToLIBORRateOnUSDollarBorrowings | 1.25% | |||
Debt Instrument, Notes Repurchase Price As Percentage Of Principal Amount In Changes Of Control | 101.00% | |||
Debt Instrument, Notes Repurchase Price As Percentage Of Principal Amount When Not Use Asset Sales Proceeds For Specific Purposes | 100.00% | |||
Revolving Credit Facility | ||||
Line of Credit Facility | ||||
Outstanding Borrowings | $ 20,000,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 180,000,000 | |||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 5,000,000 | |||
Long-term Debt, Additional Repayments of Principal in Next Twelve Months | 25,000,000 | |||
Long-term Debt, Current Maturities | 30,000,000 | |||
Revolving Credit Facility | JPMorgan, 2017 Credit Agreement | ||||
Line of Credit Facility | ||||
Line of Credit Facility, Current Borrowing Capacity | 200,000,000 | |||
Additional borrowing capacity available | $ 150,000,000 | |||
Minimum commitment fee percentage | 0.175% | |||
Maximum commitment fee percentage | 0.35% | |||
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 | 1.90% | |||
Debt Instrument, Covenant, Indebtedness to Adjusted EBITDA Ratio, Maximum | 4.25 | |||
Debt Instrument, Covenant, Adjusted EBITDA to Interest Expense Ratio, Maximum | 3.50 | |||
Debt Instrument, Covenant, Senior Secured Net Indebtedness to Adjusted EBITDA Ratio, Maximum | 3.50 | |||
Debt Instrument, Covenant, Net Leverage Ratio, Minimum | 3 | |||
LineOfCreditFacilityMinimumInterestRateMarginSpreadAddedtoLIBORRateOnUSDollarBorrowings | 0.075% | |||
LineOfCreditFacilityMaximumInterestRateMarginSpreadAddedToLIBORRateOnUSDollarBorrowings | 0.90% | |||
Letter of Credit | ||||
Line of Credit Facility | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 175,330,000 | |||
Bonds | ||||
Line of Credit Facility | ||||
Face amount | $ 300,000,000 | |||
Interest rate, Stated percentage | 5.625% | 5.625% | ||
Minimum | Revolving Credit Facility | JPMorgan, 2017 Credit Agreement | ||||
Line of Credit Facility | ||||
Debt Instrument, Covenant, Repayment of Debt, Percentage of Excess Cash Flow | 25.00% | |||
Maximum | Revolving Credit Facility | JPMorgan, 2017 Credit Agreement | ||||
Line of Credit Facility | ||||
Debt Instrument, Covenant, Repayment of Debt, Percentage of Excess Cash Flow | 50.00% |
Debt Schedule of Outstanding De
Debt Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Current Portion of Long-Term Debt | $ 30,883 | $ 3,459 |
Debt and Capital Lease Obligations | 383,279 | 36,194 |
Less: Unamortized Debt Issuance Costs | (6,440) | 0 |
Less: Current Maturities of Capital Lease Obligations | (1,470) | 0 |
Long-Term Debt | 345,956 | 32,735 |
Bonds | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 300,000 | 0 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 3,279 | 51 |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Current Portion of Long-Term Debt | 30,000 | |
Less: Current Maturities of Credit Facility Borrowings, Net of Debt Issuance Costs | (29,413) | (3,459) |
Debt Instrument, Unamortized Debt Issuance Costs, Current Portion, net | 587 | |
JPMorgan, 2017 Credit Agreement | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 80,000 | |
JPMorgan Chase Bank, National Association, Amended and Restated Credit Agreement | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 36,143 |
Debt Schedule of Debt Maturitie
Debt Schedule of Debt Maturities (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 6,609 |
2,019 | 7,868 |
2,020 | 9,921 |
2,021 | 12,006 |
2,022 | 46,875 |
Thereafter | 300,000 |
Total minimum obligations | $ 383,279 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Liabilities, Current [Abstract] | |||
Taxes, other than income taxes | $ 14,760 | $ 7,122 | |
Warranty | 12,676 | 10,960 | |
Deferred revenue | 5,815 | 2,366 | |
Rebates | 13,466 | 11,102 | |
Freight | 3,208 | 4,274 | |
Severance and Restructuring | 4,267 | 394 | |
Miscellaneous accrued expenses | 10,779 | 4,385 | |
Other | 4,476 | 3,014 | |
Total | 69,447 | 43,617 | |
Changes in warranty reserves | |||
Beginning balance | 10,960 | 10,093 | $ 9,686 |
Product warranty provision | 12,124 | 12,413 | 11,719 |
Acquired Warranty Obligations | 1,208 | 42 | 0 |
Foreign currency | 274 | 82 | (207) |
Claims paid | (11,890) | (11,670) | (11,105) |
Ending balance | $ 12,676 | $ 10,960 | $ 10,093 |
Derivatives Details 1
Derivatives Details 1 $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2022EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017EUR (€) | Mar. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | |
Derivatives designated as hedging instruments | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, Term of Contract | 1 year | 1 year | |||||
Cash Flow Hedge Losses to be Reclassified within Twelve Months | $ 1,865 | ||||||
Foreign currency option contracts | Derivatives designated as hedging instruments | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional Amount | 8,619 | $ 8,522 | |||||
Fair Value Asset Derivatives | 86 | 184 | |||||
Fair Value Liability Derivatives | 0 | 0 | |||||
Foreign currency option contracts | Derivatives not designated as hedging instruments | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional Amount | € | € 0 | € 180,000,000 | € 0 | ||||
Foreign currency forward contracts | Derivatives designated as hedging instruments | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional Amount | 2,928 | 2,127 | |||||
Fair Value Asset Derivatives | 7,218 | 0 | |||||
Fair Value Liability Derivatives | 34,961 | 13 | |||||
Foreign currency forward contracts | Derivatives not designated as hedging instruments | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional Amount | 60,858 | 42,866 | |||||
Fair Value Asset Derivatives | 442 | 12 | |||||
Fair Value Liability Derivatives | $ 425 | $ 162 | |||||
Cross Currency Swap | Derivatives designated as hedging instruments | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional Amount | € | € 181,200,000 | € 0 | |||||
Debt Instrument, Periodic Payment, Interest | € | € 31,200,000 | ||||||
Scenario, Forecast | Cross Currency Swap | Derivatives designated as hedging instruments | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Debt Instrument, Periodic Payment, Principal | € | € 150,000,000 |
Derivatives Details 2
Derivatives Details 2 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign currency option contracts | Derivatives not designated as hedging instruments | |||
Derivative Instruments, (Loss) Gain [Line Items] | |||
Net (loss) gain recognized in earnings | $ 0 | $ 0 | $ 0 |
Foreign currency option contracts | Cash Flow Hedging | |||
Derivative Instruments, (Loss) Gain [Line Items] | |||
Net (loss) gain recognized in Other Comprehensive Income (Loss), net of tax | (193) | (259) | 31 |
Net (loss) gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Sales | 178 | (148) | 0 |
Net gain reclassified from Accumulated Other Comprehensive Loss in earnings, net of tax, effective portion to Interest Income | 0 | 0 | 0 |
Net loss reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Foreign Currency Transaction Losses | 0 | 0 | 0 |
Net (loss) gain recognized in earnings | (13) | (11) | 6 |
Foreign currency forward contracts | Derivatives not designated as hedging instruments | |||
Derivative Instruments, (Loss) Gain [Line Items] | |||
Net (loss) gain recognized in earnings | (6,161) | (890) | 4,047 |
Foreign currency forward contracts | Cash Flow Hedging | |||
Derivative Instruments, (Loss) Gain [Line Items] | |||
Net (loss) gain recognized in Other Comprehensive Income (Loss), net of tax | (16,226) | (73) | 77 |
Net (loss) gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Sales | 37 | 7 | 5 |
Net gain reclassified from Accumulated Other Comprehensive Loss in earnings, net of tax, effective portion to Interest Income | 1,198 | 0 | 0 |
Net loss reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Foreign Currency Transaction Losses | (12,555) | 0 | 0 |
Net (loss) gain recognized in earnings | $ 10 | $ 2 | $ (2) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2017USD ($) |
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 | 7,746 |
Liabilities: | |
Total Liabilities | 35,386 |
Level 2 | Foreign currency forward contracts | |
Assets: | |
Foreign currency contract, asset fair value | 7,660 |
Liabilities: | |
Foreign currency contract, liability fair value | 35,386 |
Level 2 | Foreign currency option contracts | |
Assets: | |
Foreign currency contract, asset fair value | 86 |
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 |
Fair Value | |
Assets: | |
Total Assets | 7,746 |
Liabilities: | |
Total Liabilities | 35,386 |
Fair Value | Foreign currency forward contracts | |
Assets: | |
Foreign currency contract, asset fair value | 7,660 |
Liabilities: | |
Foreign currency contract, liability fair value | 35,386 |
Fair Value | Foreign currency option contracts | |
Assets: | |
Foreign currency contract, asset fair value | $ 86 |
Retirement Benefit Plans Part 1
Retirement Benefit Plans Part 1 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan [Abstract] | |||
Total cost of benefits for U.S. and Non-U.S. Plans | $ 13,253 | $ 12,108 | $ 12,428 |
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 | $ 4,404 | 8,359 | 8,098 |
Pension Plan | Level 1 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 6,305 | 19,858 | |
Pension Plan | Level 2 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | 26,531 | |
Pension Plan | Level 3 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 11,163 | 9,562 | |
Pension Plan | Cash and Cash Equivalents | Level 1 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 6,305 | 663 | |
Pension Plan | Cash and Cash Equivalents | Level 2 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Cash and Cash Equivalents | Level 3 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Mutual Funds - U.S. Large-Cap | Level 1 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 9,803 | ||
Pension Plan | Mutual Funds - U.S. Large-Cap | Level 2 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | ||
Pension Plan | Mutual Funds - U.S. Large-Cap | Level 3 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | ||
Pension Plan | Mutual Funds - U.S. Small-Cap | Level 1 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 2,584 | ||
Pension Plan | Mutual Funds - U.S. Small-Cap | Level 2 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | ||
Pension Plan | Mutual Funds - U.S. Small-Cap | Level 3 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | ||
Pension Plan | Mutual Funds - International Equities | Level 1 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 2,244 | ||
Pension Plan | Mutual Funds - International Equities | Level 2 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | ||
Pension Plan | Mutual Funds - International Equities | Level 3 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | ||
Pension Plan | Mutual Funds - Fixed-Income Domestic | Level 1 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 4,564 | ||
Pension Plan | Mutual Funds - Fixed-Income Domestic | Level 2 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | ||
Pension Plan | Mutual Funds - Fixed-Income Domestic | Level 3 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | ||
Pension Plan | Collective Investment Funds [Member] | Level 1 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | ||
Pension Plan | Collective Investment Funds [Member] | Level 2 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 26,531 | ||
Pension Plan | Collective Investment Funds [Member] | Level 3 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | ||
Pension Plan | Investment Account held by Pension Plan | Level 1 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Investment Account held by Pension Plan | Level 2 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Investment Account held by Pension Plan | Level 3 | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 11,163 | 9,562 | |
Pension Plan | Fair Value | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 17,468 | 55,951 | |
Pension Plan | Fair Value | Cash and Cash Equivalents | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 6,305 | 663 | |
Pension Plan | Fair Value | Mutual Funds - U.S. Large-Cap | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 9,803 | ||
Pension Plan | Fair Value | Mutual Funds - U.S. Small-Cap | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 2,584 | ||
Pension Plan | Fair Value | Mutual Funds - International Equities | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 2,244 | ||
Pension Plan | Fair Value | Mutual Funds - Fixed-Income Domestic | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 4,564 | ||
Pension Plan | Fair Value | Collective Investment Funds [Member] | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 26,531 | ||
Pension Plan | Fair Value | Investment Account held by Pension Plan | |||
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 11,163 | 9,562 | |
Foreign Plan | Pension Plan | |||
Defined Contribution Plan [Abstract] | |||
Excess assets transferred | 0 | 0 | |
Fair Value of Plan Assets by Investment Type | |||
Fair value of plan assets | 11,163 | 9,562 | 10,691 |
Foreign Plan | U.K. Pension Plan | Pension Plan | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value at beginning of year | 9,562 | 10,691 | |
Purchases, sales, issuances and settlements, net | (535) | 7 | |
Net gain | 1,190 | 674 | |
Foreign currency | 946 | (1,810) | |
Fair value at end of year | $ 11,163 | $ 9,562 | $ 10,691 |
Retirement Benefit Plans Part 2
Retirement Benefit Plans Part 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Plans with accumulated benefit obligation in excess of plan assets | |||
Accumulated benefit obligation | $ 2,427 | $ 12,597 | |
Fair value of plan assets | 0 | 9,562 | |
Plans with projected benefit obligation in excess of plan assets | |||
Projected benefit obligation | 2,427 | 12,794 | |
Fair value of plan assets | 0 | 9,562 | |
Changes in Accumulated Other Comprehensive Loss: | |||
Total recognized in other comprehensive loss (income) | $ (5,868) | $ 2,248 | $ (4,121) |
Other Postretirement Benefits Plan | |||
Assumed healthcare cost trend rates | |||
Healthcare cost trend rate assumption for the next year | 6.56% | 6.56% | |
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 | 2,032 | 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 | $ (31) | ||
Effect of one-percentage-point increase on total of service and interest cost components | 35 | ||
Effect of one-percentage-point decrease on postretirement benefit obligation | (724) | ||
Effect of one-percentage-point increase on postretirement benefit obligation | 820 | ||
Pension Plan | |||
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | |||
Net actuarial loss | $ 78 | ||
Postretirement Medical Benefits | |||
Weighted-average assumptions used to determine benefit obligation | |||
Discount rate | 3.26% | 3.58% | |
Rate of compensation increase | 0.00% | 0.00% | |
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 3.58% | 3.70% | 3.39% |
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% |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 10,540 | $ 11,144 | |
Service cost | 60 | 76 | $ 96 |
Interest cost | 363 | 396 | 393 |
Plan participants' contributions | 0 | 0 | |
Actuarial loss (gain) | (524) | 6 | |
Foreign exchange | 0 | 0 | |
Benefits paid | (835) | (1,082) | |
Settlement | 0 | 0 | |
Benefit obligation at end of year | 9,604 | 10,540 | 11,144 |
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 | 835 | 1,082 | |
Plan participants' contributions | 0 | 0 | |
Excess assets transferred to Defined Contribution Plan | 0 | 0 | |
Foreign exchange | 0 | 0 | |
Benefits paid | (835) | (1,082) | |
Settlement | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status at end of year | (9,604) | (10,540) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent Other Assets | 0 | 0 | |
Current Liabilities | (771) | (828) | |
Long-Term Liabilities | (8,833) | (9,712) | |
Net accrued asset (liability) | (9,604) | (10,540) | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Net actuarial loss | (41) | (566) | |
Accumulated Other Comprehensive Loss | (41) | (566) | |
Components of the net periodic benefit (credit) cost | |||
Service cost | 60 | 76 | 96 |
Interest cost | 363 | 396 | 393 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Foreign currency | 0 | 0 | 0 |
Net periodic benefit (credit) cost | 423 | 472 | 489 |
Curtailment charge | 0 | 0 | 0 |
Settlement credit | 0 | 0 | 0 |
Net periodic benefit (credit) cost | 423 | 472 | 489 |
Changes in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss (gain) | (524) | 6 | (1,618) |
Amortization of prior service (cost) credit | 0 | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 | 0 |
Settlement Charge | 0 | 0 | 0 |
Total recognized in other comprehensive loss (income) | (524) | 6 | (1,618) |
Total recognized in net periodic cost and other comprehensive loss (income) | (101) | $ 478 | $ (1,129) |
Expected future benefit payments | |||
2,018 | 771 | ||
2,019 | 803 | ||
2,020 | 849 | ||
2,021 | 751 | ||
2,022 | 741 | ||
2023 to 2027 | 3,509 | ||
Total | 7,424 | ||
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | |||
Net actuarial loss | 0 | ||
Domestic Plan | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Expected future employer contributions in the next fiscal year | $ 0 | ||
Weighted-average assumptions used to determine benefit obligation | |||
Discount rate | 3.28% | 3.92% | |
Rate of compensation increase | 0.00% | 3.00% | |
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 3.92% | 4.08% | 3.76% |
Expected long-term rate of return on plan assets | 5.10% | 5.20% | 5.20% |
Rate of compensation increase | 0.00% | 3.00% | 3.00% |
Accumulated benefit obligations | |||
Accumulated benefit obligations | $ 1,414 | $ 40,961 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 40,961 | 41,774 | |
Service cost | 0 | 354 | $ 480 |
Interest cost | 1,538 | 1,659 | 1,711 |
Plan participants' contributions | 0 | 0 | |
Actuarial loss (gain) | 1,811 | 690 | |
Foreign exchange | 0 | 0 | |
Benefits paid | (1,950) | (3,516) | |
Settlement | (40,946) | 0 | |
Benefit obligation at end of year | 1,414 | 40,961 | 41,774 |
Change in fair value of plan assets and net accrued liabilities: | |||
Fair value of plan assets at beginning of year | 46,389 | 47,201 | |
Actual return on plan assets | 2,536 | 2,457 | |
Employer contributions | 276 | 247 | |
Plan participants' contributions | 0 | 0 | |
Excess assets transferred to Defined Contribution Plan | (6,305) | 0 | |
Foreign exchange | 0 | 0 | |
Benefits paid | (1,950) | (3,516) | |
Settlement | (40,946) | 0 | |
Fair value of plan assets at end of year | 0 | 46,389 | 47,201 |
Funded status at end of year | (1,414) | 5,428 | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent Other Assets | 0 | 7,087 | |
Current Liabilities | (140) | (239) | |
Long-Term Liabilities | (1,274) | (1,420) | |
Net accrued asset (liability) | (1,414) | 5,428 | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Net actuarial loss | (915) | (5,720) | |
Accumulated Other Comprehensive Loss | (915) | (5,720) | |
Components of the net periodic benefit (credit) cost | |||
Service cost | 0 | 354 | 480 |
Interest cost | 1,538 | 1,659 | 1,711 |
Expected return on plan assets | (2,336) | (2,400) | (2,613) |
Amortization of net actuarial loss | 43 | 41 | 835 |
Amortization of prior service cost (credit) | 0 | 41 | 42 |
Foreign currency | 0 | 0 | 0 |
Net periodic benefit (credit) cost | (755) | (305) | 455 |
Curtailment charge | 0 | 0 | 25 |
Settlement credit | 6,373 | 0 | 225 |
Net periodic benefit (credit) cost | 5,618 | (305) | 705 |
Changes in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss (gain) | 1,611 | 633 | 195 |
Amortization of prior service (cost) credit | 0 | (41) | (67) |
Amortization of net actuarial loss | (43) | (41) | (1,060) |
Settlement Charge | (6,373) | 0 | 0 |
Total recognized in other comprehensive loss (income) | (4,805) | 551 | (932) |
Total recognized in net periodic cost and other comprehensive loss (income) | 813 | $ 246 | $ (227) |
Expected future benefit payments | |||
2,018 | 140 | ||
2,019 | 133 | ||
2,020 | 132 | ||
2,021 | 124 | ||
2,022 | 117 | ||
2023 to 2027 | 493 | ||
Total | $ 1,139 | ||
Domestic Plan | Pension Plan | Debt Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Target allocation of investments | 70.00% | ||
Domestic Plan | Pension Plan | Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Target allocation of investments | 30.00% | ||
Foreign Plan | Pension Plan | |||
Weighted-average assumptions used to determine benefit obligation | |||
Discount rate | 2.45% | 2.64% | |
Rate of compensation increase | 3.50% | 3.50% | |
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 2.64% | 3.59% | 3.38% |
Expected long-term rate of return on plan assets | 3.90% | 4.60% | 4.40% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 11,136 | $ 10,883 | |
Service cost | 132 | 103 | $ 153 |
Interest cost | 298 | 358 | 396 |
Plan participants' contributions | 14 | 14 | |
Actuarial loss (gain) | 327 | 1,939 | |
Foreign exchange | (1,097) | 1,852 | |
Benefits paid | (860) | (309) | |
Settlement | 0 | 0 | |
Benefit obligation at end of year | 12,144 | 11,136 | 10,883 |
Change in fair value of plan assets and net accrued liabilities: | |||
Fair value of plan assets at beginning of year | 9,562 | 10,691 | |
Actual return on plan assets | 1,189 | 673 | |
Employer contributions | 313 | 303 | |
Plan participants' contributions | 14 | 14 | |
Excess assets transferred to Defined Contribution Plan | 0 | 0 | |
Foreign exchange | 945 | (1,810) | |
Benefits paid | (860) | (309) | |
Settlement | 0 | 0 | |
Fair value of plan assets at end of year | 11,163 | 9,562 | 10,691 |
Funded status at end of year | (981) | (1,574) | |
Amounts recognized in the Consolidated Balance Sheets consist of: | |||
Noncurrent Other Assets | 0 | 0 | |
Current Liabilities | (36) | (30) | |
Long-Term Liabilities | (945) | (1,544) | |
Net accrued asset (liability) | (981) | (1,574) | |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | |||
Net actuarial loss | (1,245) | (1,802) | |
Accumulated Other Comprehensive Loss | (1,245) | (1,802) | |
Components of the net periodic benefit (credit) cost | |||
Service cost | 132 | 103 | 153 |
Interest cost | 298 | 358 | 396 |
Expected return on plan assets | (379) | (452) | (433) |
Amortization of net actuarial loss | 74 | 27 | 54 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Foreign currency | (1) | 97 | (35) |
Net periodic benefit (credit) cost | 124 | 133 | 135 |
Curtailment charge | 0 | 0 | 0 |
Settlement credit | 0 | 0 | 0 |
Net periodic benefit (credit) cost | 124 | 133 | 135 |
Changes in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss (gain) | (465) | 1,718 | (1,517) |
Amortization of prior service (cost) credit | 0 | 0 | 0 |
Amortization of net actuarial loss | (74) | (27) | (54) |
Settlement Charge | 0 | 0 | 0 |
Total recognized in other comprehensive loss (income) | (539) | 1,691 | (1,571) |
Total recognized in net periodic cost and other comprehensive loss (income) | (415) | 1,824 | $ (1,436) |
Expected future benefit payments | |||
2,018 | 247 | ||
2,019 | 254 | ||
2,020 | 261 | ||
2,021 | 269 | ||
2,022 | 278 | ||
2023 to 2027 | 1,538 | ||
Total | 2,847 | ||
Nonqualified Plan | Domestic Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Expected future employer contributions in the next fiscal year | 140 | ||
German Pension Plan | Foreign Plan | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Expected future employer contributions in the next fiscal year | 36 | ||
Accumulated benefit obligations | |||
Accumulated benefit obligations | 1,013 | 871 | |
Retiree Plan | Domestic Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Expected future employer contributions in the next fiscal year | 771 | ||
U.K. Pension Plan | Foreign Plan | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Expected future employer contributions in the next fiscal year | 292 | ||
Accumulated benefit obligations | |||
Accumulated benefit obligations | $ 11,131 | $ 10,265 |
Shareholders' Equity Part 1 (De
Shareholders' Equity Part 1 (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Stockholders' Equity Note [Abstract] | |||
Number of shares authorized for issue (in shares) | 60,000,000 | ||
Common Stock, par value (in dollars per share) | $ 0.375 | $ 0.375 | |
Accumulated Other Comprehensive Loss, Net of Tax | |||
Foreign currency translation adjustments | $ (15,778) | $ (44,444) | $ (44,585) |
Pension and retiree medical benefits | (1,610) | (5,391) | (3,647) |
Cash flow hedge | (4,935) | (88) | 103 |
Total Accumulated Other Comprehensive Loss | $ (22,323) | $ (49,923) | $ (48,129) |
Shareholders' Equity Part 2 (De
Shareholders' Equity Part 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the year | $ (49,923) | $ (48,129) | |
Other comprehensive income (loss) before reclassifications | 11,947 | ||
Amounts reclassified from Accumulated Other Comprehensive Loss | 15,653 | ||
Net current period other comprehensive income (loss) | (27,600) | 1,794 | $ 9,536 |
Balance at the end of the year | (22,323) | (49,923) | $ (48,129) |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the year | (44,444) | ||
Other comprehensive income (loss) before reclassifications | 28,666 | ||
Amounts reclassified from Accumulated Other Comprehensive Loss | 0 | ||
Net current period other comprehensive income (loss) | (28,666) | ||
Balance at the end of the year | (15,778) | (44,444) | |
Pension and Postretirement Benefits | |||
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the year | (5,391) | ||
Other comprehensive income (loss) before reclassifications | (300) | ||
Amounts reclassified from Accumulated Other Comprehensive Loss | 4,081 | ||
Net current period other comprehensive income (loss) | (3,781) | ||
Balance at the end of the year | (1,610) | (5,391) | |
Cash Flow Hedge | |||
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the year | (88) | ||
Other comprehensive income (loss) before reclassifications | (16,419) | ||
Amounts reclassified from Accumulated Other Comprehensive Loss | 11,572 | ||
Net current period other comprehensive income (loss) | 4,847 | ||
Balance at the end of the year | $ (4,935) | $ (88) |
Commitments and Contingencies74
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease expiration date | Aug. 31, 2025 | ||
Rent expense | $ 21,566 | $ 18,640 | $ 17,804 |
Minimum rentals for aggregate lease commitments | |||
2,018 | 14,083 | ||
2,019 | 9,540 | ||
2,020 | 5,721 | ||
2,021 | 2,995 | ||
2,022 | 1,996 | ||
Thereafter | 2,596 | ||
Total | 36,931 | ||
Aggregate residual value at lease expiration for vehicle leases | 14,052 | ||
Guaranteed aggregate residual value at lease expiration for vehicle leases | 11,409 | ||
Liability for the estimated end-of-term loss related to residual value guarantee | $ 509 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income (Loss) from continuing operations | |||||
U.S. operations | $ 7,465 | $ 54,018 | $ 51,189 | ||
Foreign operations | (8,757) | 12,473 | (765) | ||
(Loss) Profit Before Income Taxes | (1,292) | 66,491 | 50,424 | ||
Current: | |||||
Federal | 2,590 | 15,962 | 15,117 | ||
Foreign | 8,701 | 3,035 | 3,992 | ||
State | 812 | 1,859 | 1,685 | ||
Current Income Tax Expense | 12,103 | 20,856 | 20,794 | ||
Deferred: | |||||
Federal | 1,640 | (472) | (481) | ||
Foreign | (8,699) | (434) | (1,888) | ||
State | (131) | (73) | (89) | ||
Deferred Income Tax Expense | (7,190) | (979) | (2,458) | ||
Total: | |||||
Federal | 4,230 | 15,490 | 14,636 | ||
Foreign | 2 | 2,601 | 2,104 | ||
State | 681 | 1,786 | 1,596 | ||
Total Income Tax Expense | 4,913 | $ 19,877 | $ 18,336 | ||
Operating loss carryforwards | |||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 2,355 | ||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | 1,993 | ||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Transition Tax For Accumulated Foreign Earnings, Provisional Income Tax Expense | $ 362 | ||||
Tax loss carryforwards | $ 42,597 | ||||
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 | (21.10%) | 1.70% | 2.20% | ||
Effect of foreign operations | (70.80%) | (5.50%) | (5.10%) | ||
Transaction costs | (226.30%) | 0.00% | 0.00% | ||
Effect of 2018 deferred rate change | (154.30%) | 0.00% | 0.00% | ||
Transition Tax | (28.00%) | 0.00% | 0.00% | ||
Impairment of Long-Lived Assets | 0.00% | 0.00% | 7.00% | ||
Effect of changes in valuation allowances | (126.50%) | 1.90% | 1.50% | ||
Domestic production activities deduction | 28.30% | (2.20%) | (2.70%) | ||
Share-based payments | 90.40% | 0.00% | 0.00% | ||
Research & Development credit | 82.90% | (1.30%) | (1.70%) | ||
Other, net | 10.20% | 0.30% | 0.20% | ||
Effective income tax rate | (380.20%) | 29.90% | 36.40% | ||
Deferred Tax Assets: | |||||
Inventories, principally due to changes in inventory reserves | 4,757 | $ 332 | |||
Employee wages and benefits, principally due to accruals for financial reporting purposes | 11,031 | 14,723 | |||
Warranty reserves accrued for financial reporting purposes | 2,578 | 3,617 | |||
Receivable, principally due to allowance for doubtful accounts and tax accounting method for equipment rentals | 2,138 | 1,413 | |||
Tax loss carryforwards | 11,383 | 7,821 | |||
Tax credit carryforwards | 1,575 | 1,228 | |||
Other | 3,630 | 2,126 | |||
Gross Deferred Tax Assets | 37,092 | 31,260 | |||
Less: valuation allowance | (9,691) | (6,865) | |||
Total Net Deferred Tax Assets | 27,401 | 24,395 | |||
Deferred Tax Liabilities: | |||||
Property, Plant and Equipment, principally due to differences in depreciation and related gains | 9,042 | 6,947 | |||
Goodwill and Intangible Assets | 60,450 | 4,180 | |||
Total Deferred Tax Liabilities | 69,492 | 11,127 | |||
Net Deferred Tax Assets | (42,091) | 13,268 | |||
Reconciliation of unrecognized tax benefits | |||||
Balance at January 1, | $ 2,477 | $ 2,326 | |||
Increases as a result of tax positions taken during the current year | 329 | 545 | |||
Increase related to prior period tax positions of acquired entities | 236 | 0 | |||
Decreases relating to settlement with tax authorities | (68) | (6) | |||
Reductions as a result of a lapse of the applicable statute of limitations | (770) | (523) | |||
Increases (Decreases) as a result of foreign currency fluctuations | 28 | 135 | |||
Balance at December 31, | 2,232 | 2,477 | $ 2,326 | ||
Unrecognized tax benefits that would impact the effective tax rate | 1,992 | 2,114 | |||
Unrecognized Tax Benefits | $ 2,477 | $ 2,326 | $ 2,326 | 2,232 | 2,477 |
Accrued interest and penalties | 482 | $ 490 | |||
Maximum | |||||
Income Tax General Disclosure [Abstract] | |||||
Income Tax Examination, Year under Examination | 2,016 | ||||
Minimum | |||||
Income Tax General Disclosure [Abstract] | |||||
Income Tax Examination, Year under Examination | 2,014 | ||||
U.S. | |||||
Income Tax General Disclosure [Abstract] | |||||
Undistributed earnings of non-U.S. subsidiaries | 11,636 | ||||
Dutch | |||||
Operating loss carryforwards | |||||
Tax loss carryforwards | 23,733 | ||||
Tax loss carryforwards expiration | 9 years | ||||
Foreign tax credit carryforwards | 1,575 | ||||
German | |||||
Operating loss carryforwards | |||||
Tax loss carryforwards | 12,068 | ||||
SWEDEN | |||||
Operating loss carryforwards | |||||
Tax loss carryforwards | 1,586 | ||||
NORWAY | |||||
Operating loss carryforwards | |||||
Tax loss carryforwards | 655 | ||||
SPAIN | |||||
Operating loss carryforwards | |||||
Tax loss carryforwards | $ 4,555 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Apr. 26, 2017shares | Apr. 24, 2013shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Number of plans | 4 | ||||
Share-based compensation expense | $ | $ 5,891 | $ 3,875 | $ 8,222 | ||
Excess Tax Benefit from Share-based Compensation, before ASU adoption | $ | 1,168 | ||||
Excess Tax Benefit on Stock Plans | $ | $ 0 | $ 686 | $ 859 | ||
Number of stock appreciation rights outstanding (in shares) | 0 | ||||
Number of stock appreciation rights granted (in shares) | 0 | 0 | 0 | ||
Valuation assumptions | |||||
Expected volatility, minimum | 25.00% | 29.00% | 32.00% | ||
Expected volatiity, maximum | 26.00% | 32.00% | 36.00% | ||
Weighted-average expected volatility | 26.00% | 32.00% | 36.00% | ||
Expected dividend yield, minimum | 1.20% | 1.30% | 1.10% | ||
Expected dividend yield, maximum | 1.30% | 1.50% | 1.20% | ||
Weighted-average expected dividend yield | 1.30% | 1.30% | 1.20% | ||
Expected term, in years | 5 years | 5 years | 5 years | ||
Risk-free interest rate, minimum | 1.70% | 1.10% | 1.40% | ||
Risk-free interest rate, maximum | 2.00% | 1.40% | 1.60% | ||
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 | ||||
2017 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares authorized for future awards (in shares) | 1,200,000 | ||||
Shares reserved for issuance (in shares) | 1,155,110 | ||||
All Plans Excluding 2010 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares reserved for issuance (in shares) | 742,873 | ||||
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 | ||||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 16.39 | $ 13.61 | $ 20.08 | ||
Total intrinsic value of stock options exercised | $ | $ 4,450 | $ 3,408 | $ 1,702 | ||
Aggregate intrinsic value of options outstanding | $ | 28,711 | ||||
Aggregate intrinsic value of options exercisable | $ | $ 25,702 | ||||
Weighted-average remaining contractual life for options outstanding (in years) | 5 years 7 months 6 days | ||||
Weighted-average remaining contractual life for options exercisable (in years) | 4 years 2 months 12 days | ||||
Unrecognized compensation cost for nonvested options | $ | $ 2,064 | ||||
Compensation cost not yet recognized, weighted-average period for recognition (in years) | 1 year 4 months 24 days | ||||
Shares activity | |||||
Outstanding at beginning of year (in shares) | 1,113,382 | ||||
Granted (in shares) | 224,985 | ||||
Exercised (in shares) | (159,792) | ||||
Forfeited (in shares) | (42,586) | ||||
Expired (in shares) | (381) | ||||
Outstanding at end of year (in shares) | 1,135,608 | 1,113,382 | |||
Exercisable at end of year (in shares) | 766,583 | ||||
Weighted-Average Exercise Price | |||||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 42.34 | ||||
Granted (in dollars per share) | $ / shares | 72.85 | ||||
Exercised (in dollars per share) | $ / shares | 44.04 | ||||
Forfeited (in dollars per share) | $ / shares | 63.98 | ||||
Expired (in dollars per share) | $ / shares | 65.12 | ||||
Outstanding at end of year (in dollars per share) | $ / shares | 47.47 | $ 42.34 | |||
Exercisable at end of year (in dollars per share) | $ / shares | $ 39.15 | ||||
Restricted Share Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Vesting period of new awards granted (in years) | 3 years | ||||
Unrecognized compensation cost for nonvested options | $ | $ 1,585 | ||||
Compensation cost not yet recognized, weighted-average period for recognition (in years) | 1 year 10 months | ||||
Fair value of shares vested | $ | $ 1,463 | $ 1,970 | 1,054 | ||
Shares activity | |||||
Nonvested at beginning of year (in shares) | 117,234 | ||||
Granted (in shares) | 20,284 | ||||
Vested (in shares) | (32,990) | ||||
Forfeited (in shares) | (4,739) | ||||
Nonvested at end of year (in shares) | 99,789 | 117,234 | |||
Weighted-Average Exercise Price | |||||
Nonvested at beginning of year (in dollars per share) | $ / shares | $ 47.62 | ||||
Granted (in dollars per share) | $ / shares | 73.06 | ||||
Vested (in dollars per share) | $ / shares | 44.36 | ||||
Forfeited (in dollars per share) | $ / shares | 63.43 | ||||
Nonvested at end of year (in dollars per share) | $ / shares | $ 53.11 | $ 47.62 | |||
Performance Share Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Vesting period of new awards granted (in years) | 3 years | ||||
Unrecognized compensation cost for nonvested options | $ | $ 1,400 | ||||
Compensation cost not yet recognized, weighted-average period for recognition (in years) | 2 years | ||||
Fair value of shares vested | $ | $ 1,240 | $ 1,703 | 1,713 | ||
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 (in shares) | 0 | ||||
Shares activity | |||||
Nonvested at beginning of year (in shares) | 129,096 | ||||
Granted (in shares) | 45,792 | ||||
Vested (in shares) | (20,060) | ||||
Forfeited (in shares) | (31,804) | ||||
Nonvested at end of year (in shares) | 123,024 | 129,096 | |||
Weighted-Average Exercise Price | |||||
Nonvested at beginning of year (in dollars per share) | $ / shares | $ 59.30 | ||||
Granted (in dollars per share) | $ / shares | 72.84 | ||||
Vested (in dollars per share) | $ / shares | 61.80 | ||||
Forfeited (in dollars per share) | $ / shares | 62.55 | ||||
Nonvested at end of year (in dollars per share) | $ / shares | $ 63.09 | $ 59.30 | |||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Vesting period of new awards granted (in years) | 3 years | ||||
Unrecognized compensation cost for nonvested options | $ | $ 1,743 | ||||
Compensation cost not yet recognized, weighted-average period for recognition (in years) | 1 year 4 months | ||||
Fair value of shares vested | $ | $ 962 | $ 907 | |||
Shares activity | |||||
Nonvested at beginning of year (in shares) | 31,038 | ||||
Granted (in shares) | 30,750 | ||||
Vested (in shares) | (14,638) | ||||
Forfeited (in shares) | (4,025) | ||||
Nonvested at end of year (in shares) | 43,125 | 31,038 | |||
Weighted-Average Exercise Price | |||||
Nonvested at beginning of year (in dollars per share) | $ / shares | $ 60.47 | ||||
Granted (in dollars per share) | $ / shares | 68.92 | ||||
Vested (in dollars per share) | $ / shares | 65.74 | ||||
Forfeited (in dollars per share) | $ / shares | 60.82 | ||||
Nonvested at end of year (in dollars per share) | $ / shares | $ 64.67 | $ 60.47 | |||
Share-Based Liabilities | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total share-based liabilities | $ | $ 175 | $ 155 | |||
Amounts paid out related to share-based liability awards | $ | $ 45 | $ 62 | $ 53 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net Earnings | $ (3,206) | $ 3,559 | $ (2,591) | $ (3,957) | $ 15,370 | $ 11,477 | $ 15,328 | $ 4,439 | $ (6,195) | $ 46,614 | $ 32,088 |
Basic - Weighted Average Shares Outstanding | 17,695,390 | 17,523,267 | 18,015,151 | ||||||||
Effect of dilutive securities | 0 | 452,916 | 478,296 | ||||||||
Diluted - Weighted Average Shares Outstanding | 17,695,390 | 17,976,183 | 18,493,447 | ||||||||
Basic Earnings per Share | $ (0.18) | $ 0.20 | $ (0.15) | $ (0.22) | $ 0.88 | $ 0.66 | $ 0.88 | $ 0.25 | $ (0.35) | $ 2.66 | $ 1.78 |
Diluted (in dollars per share) | $ (0.18) | $ 0.20 | $ (0.15) | $ (0.22) | $ 0.85 | $ 0.64 | $ 0.85 | $ 0.25 | $ (0.35) | $ 2.59 | $ 1.74 |
Anti-dilutive securities excluded from earnings per share calculation (in shares) | 711,212 | 356,598 | 222,092 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
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 | $ 279,295 | $ 261,921 | $ 270,791 | $ 191,059 | $ 211,746 | $ 200,134 | $ 216,828 | $ 179,864 | $ 1,003,066 | $ 808,572 | $ 811,799 |
Long-Lived Assets | 158,677 | 126,600 | 559,728 | 158,677 | 126,600 | ||||||
Equipment | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 636,875 | 491,075 | 499,634 | ||||||||
Parts and consumables | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 202,452 | 173,632 | 175,697 | ||||||||
Service and other | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 132,332 | 114,719 | 112,622 | ||||||||
Specialty surface coatings | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 31,407 | 29,146 | 23,846 | ||||||||
Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 640,274 | 607,026 | 591,405 | ||||||||
Long-Lived Assets | 134,737 | 110,842 | 132,659 | 134,737 | 110,842 | ||||||
Europe, Middle East, Africa | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 273,738 | 129,046 | 139,834 | ||||||||
Long-Lived Assets | 19,606 | 11,100 | 422,338 | 19,606 | 11,100 | ||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 89,054 | 72,500 | 80,560 | ||||||||
Long-Lived Assets | $ 4,334 | $ 4,658 | 4,731 | $ 4,334 | $ 4,658 | ||||||
ITALY | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Long-Lived Assets | $ 393,917 |
Consolidated Quarterly Data (De
Consolidated Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Net Sales | $ 279,295 | $ 261,921 | $ 270,791 | $ 191,059 | $ 211,746 | $ 200,134 | $ 216,828 | $ 179,864 | $ 1,003,066 | $ 808,572 | $ 811,799 | ||||
Gross Profit | 115,527 | 104,604 | 104,554 | 79,736 | 93,509 | 85,295 | 95,289 | 77,502 | 404,421 | 351,595 | 349,060 | ||||
Net Earnings | $ (3,206) | $ 3,559 | $ (2,591) | $ (3,957) | $ 15,370 | $ 11,477 | $ 15,328 | $ 4,439 | $ (6,195) | $ 46,614 | $ 32,088 | ||||
Basic (in dollars per share) | $ (0.18) | $ 0.20 | $ (0.15) | $ (0.22) | $ 0.88 | $ 0.66 | $ 0.88 | $ 0.25 | $ (0.35) | $ 2.66 | $ 1.78 | ||||
Diluted (in dollars per share) | (0.18) | 0.20 | (0.15) | (0.22) | $ 0.85 | $ 0.64 | $ 0.85 | $ 0.25 | (0.35) | 2.59 | 1.74 | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.84 | $ 0.81 | $ 0.80 |
Separate Financial Informatio80
Separate Financial Information of Guarantor Subsidiaries Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||||||||
Net Sales | $ 279,295 | $ 261,921 | $ 270,791 | $ 191,059 | $ 211,746 | $ 200,134 | $ 216,828 | $ 179,864 | $ 1,003,066 | $ 808,572 | $ 811,799 |
Cost of Sales | 598,645 | 456,977 | 462,739 | ||||||||
Gross Profit | 115,527 | 104,604 | 104,554 | 79,736 | 93,509 | 85,295 | 95,289 | 77,502 | 404,421 | 351,595 | 349,060 |
Operating Expense: | |||||||||||
Research and Development Expense | 32,013 | 34,738 | 32,415 | ||||||||
Selling and Administrative Expense | 345,364 | 248,210 | 252,270 | ||||||||
Loss on Sale of Business | 0 | 149 | 0 | ||||||||
Impairment of Long-Lived Assets | 11,199 | ||||||||||
Operating Expenses | 377,377 | 283,097 | 295,884 | ||||||||
Profit (Loss) from Operations | 27,044 | 68,498 | 53,176 | ||||||||
Other Income and Expenses [Abstract] | |||||||||||
Equity in Earnings of Affiliates | 0 | 0 | 0 | ||||||||
Interest (Expense) Income, Net | (22,989) | (949) | (1,141) | ||||||||
Intercompany Interest Income (Expense) | 0 | 0 | 0 | ||||||||
Net Foreign Currency Transaction Losses | (3,387) | (392) | (954) | ||||||||
Other Expense, Net | (1,960) | (666) | (657) | ||||||||
Nonoperating Income (Expense) | (28,336) | (2,007) | (2,752) | ||||||||
Profit (Loss) Before Income Taxes | (1,292) | 66,491 | 50,424 | ||||||||
Income Tax Expense | 4,913 | 19,877 | 18,336 | ||||||||
Net (Loss) Earnings Including Noncontrolling Interest | (6,205) | 46,614 | 32,088 | ||||||||
Net Loss Attributable to Noncontrolling Interest | (10) | 0 | 0 | ||||||||
Net (Loss) Earnings Attributable to Tennant Company | $ (3,206) | $ 3,559 | $ (2,591) | $ (3,957) | $ 15,370 | $ 11,477 | $ 15,328 | $ 4,439 | (6,195) | 46,614 | 32,088 |
Parent Company | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Net Sales | 454,703 | 455,375 | 480,418 | ||||||||
Cost of Sales | 311,897 | 299,459 | 320,620 | ||||||||
Gross Profit | 142,806 | 155,916 | 159,798 | ||||||||
Operating Expense: | |||||||||||
Research and Development Expense | 27,219 | 32,378 | 29,888 | ||||||||
Selling and Administrative Expense | 116,388 | 95,189 | 97,301 | ||||||||
Loss on Sale of Business | (82) | ||||||||||
Impairment of Long-Lived Assets | 0 | ||||||||||
Operating Expenses | 143,607 | 127,485 | 127,189 | ||||||||
Profit (Loss) from Operations | (801) | 28,431 | 32,609 | ||||||||
Other Income and Expenses [Abstract] | |||||||||||
Equity in Earnings of Affiliates | 12,754 | 34,068 | 14,766 | ||||||||
Interest (Expense) Income, Net | (22,659) | (1,204) | (1,221) | ||||||||
Intercompany Interest Income (Expense) | 12,519 | 7,157 | 7,368 | ||||||||
Net Foreign Currency Transaction Losses | 857 | 648 | 535 | ||||||||
Other Expense, Net | (3,962) | (2,609) | (3,633) | ||||||||
Nonoperating Income (Expense) | (491) | 38,060 | 17,815 | ||||||||
Profit (Loss) Before Income Taxes | (1,292) | 66,491 | 50,424 | ||||||||
Income Tax Expense | 4,913 | 19,877 | 18,336 | ||||||||
Net (Loss) Earnings Including Noncontrolling Interest | (6,205) | 46,614 | 32,088 | ||||||||
Net Loss Attributable to Noncontrolling Interest | (10) | ||||||||||
Net (Loss) Earnings Attributable to Tennant Company | (6,195) | 46,614 | 32,088 | ||||||||
Guarantor Subsidiaries | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Net Sales | 594,405 | 587,815 | 586,154 | ||||||||
Cost of Sales | 488,972 | 483,075 | 489,203 | ||||||||
Gross Profit | 105,433 | 104,740 | 96,951 | ||||||||
Operating Expense: | |||||||||||
Research and Development Expense | 315 | 429 | 389 | ||||||||
Selling and Administrative Expense | 78,516 | 74,643 | 72,954 | ||||||||
Loss on Sale of Business | 0 | ||||||||||
Impairment of Long-Lived Assets | 0 | ||||||||||
Operating Expenses | 78,831 | 75,072 | 73,343 | ||||||||
Profit (Loss) from Operations | 26,602 | 29,668 | 23,608 | ||||||||
Other Income and Expenses [Abstract] | |||||||||||
Equity in Earnings of Affiliates | 2,004 | 2,192 | 2,122 | ||||||||
Interest (Expense) Income, Net | 0 | 0 | 0 | ||||||||
Intercompany Interest Income (Expense) | (5,776) | (5,570) | (5,400) | ||||||||
Net Foreign Currency Transaction Losses | 0 | (652) | (777) | ||||||||
Other Expense, Net | (736) | (573) | (422) | ||||||||
Nonoperating Income (Expense) | (4,508) | (4,603) | (4,477) | ||||||||
Profit (Loss) Before Income Taxes | 22,094 | 25,065 | 19,131 | ||||||||
Income Tax Expense | 8,070 | 9,443 | 4,619 | ||||||||
Net (Loss) Earnings Including Noncontrolling Interest | 14,024 | 15,622 | 14,512 | ||||||||
Net Loss Attributable to Noncontrolling Interest | 0 | ||||||||||
Net (Loss) Earnings Attributable to Tennant Company | 14,024 | 15,622 | 14,512 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Net Sales | 471,559 | 290,349 | 306,506 | ||||||||
Cost of Sales | 317,151 | 199,336 | 213,085 | ||||||||
Gross Profit | 154,408 | 91,013 | 93,421 | ||||||||
Operating Expense: | |||||||||||
Research and Development Expense | 4,479 | 1,931 | 2,138 | ||||||||
Selling and Administrative Expense | 150,460 | 78,378 | 82,015 | ||||||||
Loss on Sale of Business | 231 | ||||||||||
Impairment of Long-Lived Assets | 11,199 | ||||||||||
Operating Expenses | 154,939 | 80,540 | 95,352 | ||||||||
Profit (Loss) from Operations | (531) | 10,473 | (1,931) | ||||||||
Other Income and Expenses [Abstract] | |||||||||||
Equity in Earnings of Affiliates | 28,855 | 0 | 0 | ||||||||
Interest (Expense) Income, Net | (299) | 255 | 80 | ||||||||
Intercompany Interest Income (Expense) | (6,743) | (1,587) | (1,968) | ||||||||
Net Foreign Currency Transaction Losses | (4,244) | (388) | (712) | ||||||||
Other Expense, Net | 2,841 | 2,516 | 3,398 | ||||||||
Nonoperating Income (Expense) | 20,410 | 796 | 798 | ||||||||
Profit (Loss) Before Income Taxes | 19,879 | 11,269 | (1,133) | ||||||||
Income Tax Expense | (98) | 2,427 | 1,630 | ||||||||
Net (Loss) Earnings Including Noncontrolling Interest | 19,977 | 8,842 | (2,763) | ||||||||
Net Loss Attributable to Noncontrolling Interest | (10) | ||||||||||
Net (Loss) Earnings Attributable to Tennant Company | 19,987 | 8,842 | (2,763) | ||||||||
Consolidation, Eliminations | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Net Sales | (517,601) | (524,967) | (561,279) | ||||||||
Cost of Sales | (519,375) | (524,893) | (560,169) | ||||||||
Gross Profit | 1,774 | (74) | (1,110) | ||||||||
Operating Expense: | |||||||||||
Research and Development Expense | 0 | 0 | 0 | ||||||||
Selling and Administrative Expense | 0 | 0 | 0 | ||||||||
Loss on Sale of Business | 0 | ||||||||||
Impairment of Long-Lived Assets | 0 | ||||||||||
Operating Expenses | 0 | 0 | 0 | ||||||||
Profit (Loss) from Operations | 1,774 | (74) | (1,110) | ||||||||
Other Income and Expenses [Abstract] | |||||||||||
Equity in Earnings of Affiliates | (43,613) | (36,260) | (16,888) | ||||||||
Interest (Expense) Income, Net | (31) | 0 | 0 | ||||||||
Intercompany Interest Income (Expense) | 0 | 0 | 0 | ||||||||
Net Foreign Currency Transaction Losses | 0 | 0 | 0 | ||||||||
Other Expense, Net | (103) | 0 | 0 | ||||||||
Nonoperating Income (Expense) | (43,747) | (36,260) | (16,888) | ||||||||
Profit (Loss) Before Income Taxes | (41,973) | (36,334) | (17,998) | ||||||||
Income Tax Expense | (7,972) | (11,870) | (6,249) | ||||||||
Net (Loss) Earnings Including Noncontrolling Interest | (34,001) | (24,464) | (11,749) | ||||||||
Net Loss Attributable to Noncontrolling Interest | 10 | ||||||||||
Net (Loss) Earnings Attributable to Tennant Company | $ (34,011) | $ (24,464) | $ (11,749) |
Separate Financial Informatio81
Separate Financial Information of Guarantor Subsidiaries Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Net (Loss) Earnings Including Noncontrolling Interest | $ (6,205) | $ 46,614 | $ 32,088 |
Other Comprehensive Income (Loss): | |||
Foreign currency translation adjustments | 28,356 | 109 | (12,520) |
Pension and retiree medical benefits | 5,868 | (2,248) | 4,121 |
Cash flow hedge | (7,731) | (305) | 164 |
Income Taxes: | |||
Foreign currency translation adjustments | 310 | 32 | 25 |
Pension and retiree medical benefits | (2,087) | 504 | (1,265) |
Cash flow hedge | 2,884 | 114 | (61) |
Total Other Comprehensive (Loss) Income, net of tax | 27,600 | (1,794) | (9,536) |
Total Comprehensive Income Including Noncontrolling Interest | 21,395 | 44,820 | 22,552 |
Comprehensive Loss Attributable to Noncontrolling Interest | (10) | 0 | 0 |
Comprehensive Income Attributable to Tennant Company | 21,405 | 44,820 | 22,552 |
Parent Company | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Net (Loss) Earnings Including Noncontrolling Interest | (6,205) | 46,614 | 32,088 |
Other Comprehensive Income (Loss): | |||
Foreign currency translation adjustments | 28,356 | 109 | (12,520) |
Pension and retiree medical benefits | 5,868 | (2,248) | 4,121 |
Cash flow hedge | (7,731) | (305) | 164 |
Income Taxes: | |||
Foreign currency translation adjustments | 310 | 32 | 25 |
Pension and retiree medical benefits | (2,087) | 504 | (1,265) |
Cash flow hedge | 2,884 | 114 | (61) |
Total Other Comprehensive (Loss) Income, net of tax | 27,600 | (1,794) | (9,536) |
Total Comprehensive Income Including Noncontrolling Interest | 21,395 | ||
Comprehensive Loss Attributable to Noncontrolling Interest | (10) | ||
Comprehensive Income Attributable to Tennant Company | 21,405 | 44,820 | 22,552 |
Guarantor Subsidiaries | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Net (Loss) Earnings Including Noncontrolling Interest | 14,024 | 15,622 | 14,512 |
Other Comprehensive Income (Loss): | |||
Foreign currency translation adjustments | 1,215 | 270 | (1,082) |
Pension and retiree medical benefits | 0 | 0 | 0 |
Cash flow hedge | 0 | 0 | 0 |
Income Taxes: | |||
Foreign currency translation adjustments | 0 | 0 | 0 |
Pension and retiree medical benefits | 0 | 0 | 0 |
Cash flow hedge | 0 | 0 | 0 |
Total Other Comprehensive (Loss) Income, net of tax | 1,215 | 270 | (1,082) |
Total Comprehensive Income Including Noncontrolling Interest | 15,239 | ||
Comprehensive Loss Attributable to Noncontrolling Interest | 0 | ||
Comprehensive Income Attributable to Tennant Company | 15,239 | 15,892 | 13,430 |
Non-Guarantor Subsidiaries | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Net (Loss) Earnings Including Noncontrolling Interest | 19,977 | 8,842 | (2,763) |
Other Comprehensive Income (Loss): | |||
Foreign currency translation adjustments | 2,960 | 3,534 | (12,903) |
Pension and retiree medical benefits | 538 | (1,691) | 1,571 |
Cash flow hedge | 0 | 0 | 0 |
Income Taxes: | |||
Foreign currency translation adjustments | 310 | 32 | 25 |
Pension and retiree medical benefits | (99) | 296 | (314) |
Cash flow hedge | 0 | 0 | 0 |
Total Other Comprehensive (Loss) Income, net of tax | 3,709 | 2,171 | (11,621) |
Total Comprehensive Income Including Noncontrolling Interest | 23,686 | ||
Comprehensive Loss Attributable to Noncontrolling Interest | (10) | ||
Comprehensive Income Attributable to Tennant Company | 23,696 | 11,013 | (14,384) |
Consolidation, Eliminations | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Net (Loss) Earnings Including Noncontrolling Interest | (34,001) | (24,464) | (11,749) |
Other Comprehensive Income (Loss): | |||
Foreign currency translation adjustments | (4,175) | (3,804) | 13,985 |
Pension and retiree medical benefits | (538) | 1,691 | (1,571) |
Cash flow hedge | 0 | 0 | 0 |
Income Taxes: | |||
Foreign currency translation adjustments | (310) | (32) | (25) |
Pension and retiree medical benefits | 99 | (296) | 314 |
Cash flow hedge | 0 | 0 | 0 |
Total Other Comprehensive (Loss) Income, net of tax | (4,924) | (2,441) | 12,703 |
Total Comprehensive Income Including Noncontrolling Interest | (38,925) | ||
Comprehensive Loss Attributable to Noncontrolling Interest | 10 | ||
Comprehensive Income Attributable to Tennant Company | $ (38,935) | $ (26,905) | $ 954 |
Separate Financial Informatio82
Separate Financial Information of Guarantor Subsidiaries Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||||
Cash and Cash Equivalents | $ 58,398 | $ 58,033 | $ 51,300 | $ 92,962 |
Restricted Cash | 653 | 517 | ||
Net Receivables | 209,516 | 149,134 | ||
Intercompany Receivables | 0 | 0 | ||
Inventories | 127,694 | 78,622 | ||
Prepaid Expenses | 19,351 | 9,204 | ||
Other Current Assets | 7,503 | 2,412 | ||
Total Current Assets | 423,115 | 297,922 | ||
Property, Plant and Equipment | 382,768 | 298,500 | ||
Accumulated Depreciation | (202,750) | (186,403) | ||
Property, Plant and Equipment, Net | 180,018 | 112,097 | ||
Deferred Income Taxes | 11,134 | 13,439 | ||
Investment in Affiliates | 0 | 0 | ||
Intercompany Loans | 0 | 0 | ||
Goodwill | 186,044 | 21,065 | 16,803 | |
Intangible Assets, Net | 172,347 | 6,460 | ||
Other Assets | 21,319 | 19,054 | ||
Total Assets | 993,977 | 470,037 | ||
Current Liabilities: | ||||
Current Portion of Long-Term Debt | 30,883 | 3,459 | ||
Accounts Payable | 96,082 | 47,408 | ||
Intercompany Payables | 0 | 0 | ||
Employee Compensation and Benefits | 37,257 | 35,997 | ||
Income Taxes Payable | 2,838 | 2,348 | ||
Other Current Liabilities | 69,447 | 43,617 | ||
Total Current Liabilities | 236,507 | 132,829 | ||
Long-Term Liabilities: | ||||
Long-Term Debt | 345,956 | 32,735 | ||
Intercompany Loans | 0 | 0 | ||
Employee-Related Benefits | 23,867 | 21,134 | ||
Deferred Income Taxes | 53,225 | 171 | ||
Other Liabilities | 35,948 | 4,625 | ||
Total Long-Term Liabilities | 458,996 | 58,665 | ||
Total Liabilities | 695,503 | 191,494 | ||
Common Stock | 6,705 | 6,633 | ||
Additional Paid-In Capital | 15,089 | 3,653 | ||
Retained Earnings | 297,032 | 318,180 | ||
Accumulated Other Comprehensive Loss | (22,323) | (49,923) | (48,129) | |
Total Tennant Company Shareholders’ Equity | 296,503 | 278,543 | ||
Noncontrolling Interest | 1,971 | 0 | ||
Total Equity | 298,474 | 278,543 | 252,207 | 280,651 |
Total Liabilities and Total Equity | 993,977 | 470,037 | ||
Parent Company | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 18,469 | 38,484 | 35,834 | 75,235 |
Restricted Cash | 0 | 0 | ||
Net Receivables | 683 | 209 | ||
Intercompany Receivables | 53,444 | 50,437 | ||
Inventories | 29,450 | 26,422 | ||
Prepaid Expenses | 8,774 | 4,120 | ||
Other Current Assets | 4,030 | 2,402 | ||
Total Current Assets | 114,850 | 122,074 | ||
Property, Plant and Equipment | 225,064 | 225,651 | ||
Accumulated Depreciation | (146,320) | (144,281) | ||
Property, Plant and Equipment, Net | 78,744 | 81,370 | ||
Deferred Income Taxes | 1,308 | 3,048 | ||
Investment in Affiliates | 392,486 | 157,004 | ||
Intercompany Loans | 304,822 | 130,000 | ||
Goodwill | 12,869 | 12,869 | ||
Intangible Assets, Net | 2,105 | 0 | ||
Other Assets | 10,363 | 10,189 | ||
Total Assets | 917,547 | 516,554 | ||
Current Liabilities: | ||||
Current Portion of Long-Term Debt | 29,413 | 3,429 | ||
Accounts Payable | 39,927 | 30,867 | ||
Intercompany Payables | 133,778 | 125,540 | ||
Employee Compensation and Benefits | 8,311 | 12,025 | ||
Income Taxes Payable | 366 | 1,410 | ||
Other Current Liabilities | 20,183 | 15,329 | ||
Total Current Liabilities | 231,978 | 188,600 | ||
Long-Term Liabilities: | ||||
Long-Term Debt | 344,147 | 32,714 | ||
Intercompany Loans | 0 | 0 | ||
Employee-Related Benefits | 11,160 | 14,291 | ||
Deferred Income Taxes | 0 | 0 | ||
Other Liabilities | 31,788 | 2,406 | ||
Total Long-Term Liabilities | 387,095 | 49,411 | ||
Total Liabilities | 619,073 | 238,011 | ||
Common Stock | 6,705 | 6,633 | ||
Additional Paid-In Capital | 15,089 | 3,653 | ||
Retained Earnings | 297,032 | 318,180 | ||
Accumulated Other Comprehensive Loss | (22,323) | (49,923) | ||
Total Tennant Company Shareholders’ Equity | 296,503 | 278,543 | ||
Noncontrolling Interest | 1,971 | |||
Total Equity | 298,474 | |||
Total Liabilities and Total Equity | 917,547 | 516,554 | ||
Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 507 | 226 | 0 | 0 |
Restricted Cash | 0 | 0 | ||
Net Receivables | 88,629 | 85,219 | ||
Intercompany Receivables | 133,778 | 123,289 | ||
Inventories | 12,695 | 12,821 | ||
Prepaid Expenses | 1,172 | 1,151 | ||
Other Current Assets | 0 | 0 | ||
Total Current Assets | 236,781 | 222,706 | ||
Property, Plant and Equipment | 12,155 | 12,996 | ||
Accumulated Depreciation | (6,333) | (6,175) | ||
Property, Plant and Equipment, Net | 5,822 | 6,821 | ||
Deferred Income Taxes | 2,669 | 3,281 | ||
Investment in Affiliates | 11,273 | 9,021 | ||
Intercompany Loans | 0 | 0 | ||
Goodwill | 1,739 | 1,439 | ||
Intangible Assets, Net | 2,898 | 3,200 | ||
Other Assets | 0 | 27 | ||
Total Assets | 261,182 | 246,495 | ||
Current Liabilities: | ||||
Current Portion of Long-Term Debt | 0 | 0 | ||
Accounts Payable | 3,018 | 2,599 | ||
Intercompany Payables | 1,963 | 1,249 | ||
Employee Compensation and Benefits | 10,355 | 15,261 | ||
Income Taxes Payable | 0 | 0 | ||
Other Current Liabilities | 15,760 | 13,348 | ||
Total Current Liabilities | 31,096 | 32,457 | ||
Long-Term Liabilities: | ||||
Long-Term Debt | 0 | 0 | ||
Intercompany Loans | 128,000 | 128,000 | ||
Employee-Related Benefits | 3,992 | 3,704 | ||
Deferred Income Taxes | 0 | 0 | ||
Other Liabilities | 2,483 | 1,295 | ||
Total Long-Term Liabilities | 134,475 | 132,999 | ||
Total Liabilities | 165,571 | 165,456 | ||
Common Stock | 0 | 0 | ||
Additional Paid-In Capital | 72,483 | 72,483 | ||
Retained Earnings | 23,797 | 9,771 | ||
Accumulated Other Comprehensive Loss | (669) | (1,215) | ||
Total Tennant Company Shareholders’ Equity | 95,611 | 81,039 | ||
Noncontrolling Interest | 0 | |||
Total Equity | 95,611 | |||
Total Liabilities and Total Equity | 261,182 | 246,495 | ||
Non-Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 39,422 | 19,323 | 15,466 | 17,727 |
Restricted Cash | 653 | 517 | ||
Net Receivables | 120,204 | 63,706 | ||
Intercompany Receivables | 0 | 2,251 | ||
Inventories | 94,542 | 49,829 | ||
Prepaid Expenses | 9,405 | 3,933 | ||
Other Current Assets | 3,473 | 10 | ||
Total Current Assets | 267,699 | 139,569 | ||
Property, Plant and Equipment | 145,549 | 59,853 | ||
Accumulated Depreciation | (50,097) | (35,947) | ||
Property, Plant and Equipment, Net | 95,452 | 23,906 | ||
Deferred Income Taxes | 7,157 | 7,110 | ||
Investment in Affiliates | 20,811 | 0 | ||
Intercompany Loans | 4,983 | 0 | ||
Goodwill | 171,436 | 6,757 | ||
Intangible Assets, Net | 167,344 | 3,260 | ||
Other Assets | 10,956 | 8,838 | ||
Total Assets | 745,838 | 189,440 | ||
Current Liabilities: | ||||
Current Portion of Long-Term Debt | 1,470 | 30 | ||
Accounts Payable | 53,137 | 13,942 | ||
Intercompany Payables | 51,481 | 49,188 | ||
Employee Compensation and Benefits | 18,591 | 8,711 | ||
Income Taxes Payable | 2,472 | 938 | ||
Other Current Liabilities | 33,504 | 14,940 | ||
Total Current Liabilities | 160,655 | 87,749 | ||
Long-Term Liabilities: | ||||
Long-Term Debt | 1,809 | 21 | ||
Intercompany Loans | 181,805 | 2,000 | ||
Employee-Related Benefits | 8,715 | 3,139 | ||
Deferred Income Taxes | 53,225 | 171 | ||
Other Liabilities | 1,677 | 924 | ||
Total Long-Term Liabilities | 247,231 | 6,255 | ||
Total Liabilities | 407,886 | 94,004 | ||
Common Stock | 11,131 | 11,131 | ||
Additional Paid-In Capital | 384,460 | 158,592 | ||
Retained Earnings | (21,219) | (32,187) | ||
Accumulated Other Comprehensive Loss | (38,391) | (42,100) | ||
Total Tennant Company Shareholders’ Equity | 335,981 | 95,436 | ||
Noncontrolling Interest | 1,971 | |||
Total Equity | 337,952 | |||
Total Liabilities and Total Equity | 745,838 | 189,440 | ||
Consolidation, Eliminations | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted Cash | 0 | 0 | ||
Net Receivables | 0 | 0 | ||
Intercompany Receivables | (187,222) | (175,977) | ||
Inventories | (8,993) | (10,450) | ||
Prepaid Expenses | 0 | 0 | ||
Other Current Assets | 0 | 0 | ||
Total Current Assets | (196,215) | (186,427) | ||
Property, Plant and Equipment | 0 | 0 | ||
Accumulated Depreciation | 0 | 0 | ||
Property, Plant and Equipment, Net | 0 | 0 | ||
Deferred Income Taxes | 0 | 0 | ||
Investment in Affiliates | (424,570) | (166,025) | ||
Intercompany Loans | (309,805) | (130,000) | ||
Goodwill | 0 | 0 | ||
Intangible Assets, Net | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Total Assets | (930,590) | (482,452) | ||
Current Liabilities: | ||||
Current Portion of Long-Term Debt | 0 | 0 | ||
Accounts Payable | 0 | 0 | ||
Intercompany Payables | (187,222) | (175,977) | ||
Employee Compensation and Benefits | 0 | 0 | ||
Income Taxes Payable | 0 | 0 | ||
Other Current Liabilities | 0 | 0 | ||
Total Current Liabilities | (187,222) | (175,977) | ||
Long-Term Liabilities: | ||||
Long-Term Debt | 0 | 0 | ||
Intercompany Loans | (309,805) | (130,000) | ||
Employee-Related Benefits | 0 | 0 | ||
Deferred Income Taxes | 0 | 0 | ||
Other Liabilities | 0 | 0 | ||
Total Long-Term Liabilities | (309,805) | (130,000) | ||
Total Liabilities | (497,027) | (305,977) | ||
Common Stock | (11,131) | (11,131) | ||
Additional Paid-In Capital | (456,943) | (231,075) | ||
Retained Earnings | (2,578) | 22,416 | ||
Accumulated Other Comprehensive Loss | 39,060 | 43,315 | ||
Total Tennant Company Shareholders’ Equity | (431,592) | (176,475) | ||
Noncontrolling Interest | (1,971) | |||
Total Equity | (433,563) | |||
Total Liabilities and Total Equity | $ (930,590) | $ (482,452) |
Separate Financial Informatio83
Separate Financial Information of Guarantor Subsidiaries Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES | |||
Net Cash Provided by Operating Activities | $ 54,174 | $ 57,878 | $ 45,232 |
INVESTING ACTIVITIES | |||
Purchases of Property, Plant and Equipment | (20,437) | (26,526) | (24,780) |
Proceeds from Disposals of Property, Plant and Equipment | 2,511 | 615 | 336 |
Proceeds from Sale of Business | 0 | 285 | 1,185 |
Proceeds from Principal Payments Received on Long-Term Note Receivable | 667 | ||
Acquisitions of Businesses, Net of Cash Acquired | (354,073) | (12,933) | 0 |
Purchase of Intangible Asset | (2,500) | 0 | 0 |
Change in Investments in Subsidiaries | 0 | ||
Issuance of Long-Term Note Receivable | (2,000) | ||
Purchase of Intangible Asset | (1,500) | ||
Change in Investments in Subsidiaries | 0 | ||
Loan Borrowings (Payments) from Subsidiaries | 0 | 0 | 0 |
(Increase) Decrease in Restricted Cash | (92) | 116 | (322) |
Net Cash Used in Investing Activities | (375,424) | (40,443) | (23,581) |
FINANCING ACTIVITIES | |||
Loan Borrowings (Payments) from Parent | 0 | 0 | |
Proceeds from Short-Term Debt | 303,000 | 0 | 0 |
Repayments of Short-Term Debt | (303,000) | 0 | 0 |
Payments of Long-Term Debt | (96,248) | (3,460) | (3,445) |
Purchases of Common Stock | 0 | (12,762) | (45,998) |
Change in Subsidiary Equity | 0 | 0 | |
Proceeds from Issuance of Long-Term Debt | 440,000 | 15,000 | 0 |
Payments of Long-Term Debt | (96,248) | (3,460) | |
Payments of Debt Issuance Costs | 16,482 | 0 | 0 |
Change in Capital Lease Obligations | 311 | ||
Proceeds from Issuances of Common Stock | 6,875 | 5,271 | 1,677 |
Purchase of Noncontrolling Owner Interest | (30) | 0 | 0 |
Excess Tax Benefit on Stock Plans | 0 | 686 | 859 |
Dividends Paid | (14,953) | (14,293) | (14,498) |
Net Cash Provided by Financing Activities | 319,473 | (9,558) | (61,405) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 2,142 | (1,144) | (1,908) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 365 | 6,733 | (41,662) |
Cash and Cash Equivalents at Beginning of Year | 58,033 | 51,300 | 92,962 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 58,398 | 58,033 | 51,300 |
Parent Company | |||
OPERATING ACTIVITIES | |||
Net Cash Provided by Operating Activities | 26,992 | 44,147 | 40,764 |
INVESTING ACTIVITIES | |||
Purchases of Property, Plant and Equipment | (9,558) | (21,507) | (19,149) |
Proceeds from Disposals of Property, Plant and Equipment | 23 | 377 | 32 |
Proceeds from Sale of Business | 0 | 0 | |
Proceeds from Principal Payments Received on Long-Term Note Receivable | 0 | ||
Acquisitions of Businesses, Net of Cash Acquired | (304) | 0 | |
Purchase of Intangible Asset | (2,500) | ||
Change in Investments in Subsidiaries | (199,028) | ||
Issuance of Long-Term Note Receivable | 0 | ||
Purchase of Intangible Asset | 0 | ||
Change in Investments in Subsidiaries | (19,594) | ||
Loan Borrowings (Payments) from Subsidiaries | (159,780) | 8,690 | 268 |
(Increase) Decrease in Restricted Cash | 0 | 0 | 0 |
Net Cash Used in Investing Activities | (371,147) | (32,034) | (18,849) |
FINANCING ACTIVITIES | |||
Loan Borrowings (Payments) from Parent | 4,983 | 0 | |
Proceeds from Short-Term Debt | 303,000 | ||
Repayments of Short-Term Debt | (303,000) | 0 | |
Payments of Long-Term Debt | (3,435) | ||
Purchases of Common Stock | (12,762) | (45,998) | |
Change in Subsidiary Equity | 0 | 0 | |
Proceeds from Issuance of Long-Term Debt | 440,000 | 15,000 | |
Payments of Long-Term Debt | (96,142) | (3,429) | |
Payments of Debt Issuance Costs | 16,482 | ||
Change in Capital Lease Obligations | 0 | ||
Proceeds from Issuances of Common Stock | 6,875 | 5,271 | 1,677 |
Purchase of Noncontrolling Owner Interest | 0 | ||
Excess Tax Benefit on Stock Plans | 686 | 859 | |
Dividends Paid | (14,953) | (14,293) | (14,498) |
Net Cash Provided by Financing Activities | 324,281 | (9,527) | (61,395) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (141) | 64 | 79 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | (20,015) | 2,650 | (39,401) |
Cash and Cash Equivalents at Beginning of Year | 38,484 | 35,834 | 75,235 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 18,469 | 38,484 | 35,834 |
Guarantor Subsidiaries | |||
OPERATING ACTIVITIES | |||
Net Cash Provided by Operating Activities | 280 | 239 | 0 |
INVESTING ACTIVITIES | |||
Purchases of Property, Plant and Equipment | 0 | (13) | 0 |
Proceeds from Disposals of Property, Plant and Equipment | 1 | 0 | 0 |
Proceeds from Sale of Business | 0 | 0 | |
Proceeds from Principal Payments Received on Long-Term Note Receivable | 0 | ||
Acquisitions of Businesses, Net of Cash Acquired | 0 | (11,539) | |
Purchase of Intangible Asset | 0 | ||
Change in Investments in Subsidiaries | 0 | ||
Issuance of Long-Term Note Receivable | 0 | ||
Purchase of Intangible Asset | 0 | ||
Change in Investments in Subsidiaries | 0 | ||
Loan Borrowings (Payments) from Subsidiaries | 0 | 0 | 0 |
(Increase) Decrease in Restricted Cash | 0 | 0 | 0 |
Net Cash Used in Investing Activities | 1 | (11,552) | 0 |
FINANCING ACTIVITIES | |||
Loan Borrowings (Payments) from Parent | 0 | 7,969 | |
Proceeds from Short-Term Debt | 0 | ||
Repayments of Short-Term Debt | 0 | 0 | |
Payments of Long-Term Debt | 0 | ||
Purchases of Common Stock | 0 | 0 | |
Change in Subsidiary Equity | 0 | 3,570 | |
Proceeds from Issuance of Long-Term Debt | 0 | 0 | |
Payments of Long-Term Debt | 0 | 0 | |
Payments of Debt Issuance Costs | 0 | ||
Change in Capital Lease Obligations | 0 | ||
Proceeds from Issuances of Common Stock | 0 | 0 | 0 |
Purchase of Noncontrolling Owner Interest | 0 | ||
Excess Tax Benefit on Stock Plans | 0 | 0 | |
Dividends Paid | 0 | 0 | 0 |
Net Cash Provided by Financing Activities | 0 | 11,539 | 0 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | 0 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 281 | 226 | 0 |
Cash and Cash Equivalents at Beginning of Year | 226 | 0 | 0 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 507 | 226 | 0 |
Non-Guarantor Subsidiaries | |||
OPERATING ACTIVITIES | |||
Net Cash Provided by Operating Activities | 27,711 | 14,090 | 4,928 |
INVESTING ACTIVITIES | |||
Purchases of Property, Plant and Equipment | (10,879) | (5,006) | (5,631) |
Proceeds from Disposals of Property, Plant and Equipment | 2,487 | 238 | 304 |
Proceeds from Sale of Business | 285 | 1,185 | |
Proceeds from Principal Payments Received on Long-Term Note Receivable | 667 | ||
Acquisitions of Businesses, Net of Cash Acquired | (353,769) | (1,394) | |
Purchase of Intangible Asset | 0 | ||
Change in Investments in Subsidiaries | 0 | ||
Issuance of Long-Term Note Receivable | (2,000) | ||
Purchase of Intangible Asset | (1,500) | ||
Change in Investments in Subsidiaries | 0 | ||
Loan Borrowings (Payments) from Subsidiaries | (4,983) | 0 | 0 |
(Increase) Decrease in Restricted Cash | (92) | 116 | (322) |
Net Cash Used in Investing Activities | (368,069) | (7,761) | (4,464) |
FINANCING ACTIVITIES | |||
Loan Borrowings (Payments) from Parent | 159,780 | (16,659) | |
Proceeds from Short-Term Debt | 0 | ||
Repayments of Short-Term Debt | 0 | (268) | |
Payments of Long-Term Debt | (10) | ||
Purchases of Common Stock | 0 | 0 | |
Change in Subsidiary Equity | 199,028 | 16,024 | |
Proceeds from Issuance of Long-Term Debt | 0 | 0 | |
Payments of Long-Term Debt | (106) | (31) | |
Payments of Debt Issuance Costs | 0 | ||
Change in Capital Lease Obligations | 311 | ||
Proceeds from Issuances of Common Stock | 0 | 0 | 0 |
Purchase of Noncontrolling Owner Interest | (30) | ||
Excess Tax Benefit on Stock Plans | 0 | 0 | |
Dividends Paid | (809) | (598) | (460) |
Net Cash Provided by Financing Activities | 358,174 | (1,264) | (738) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 2,283 | (1,208) | (1,987) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 20,099 | 3,857 | (2,261) |
Cash and Cash Equivalents at Beginning of Year | 19,323 | 15,466 | 17,727 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 39,422 | 19,323 | 15,466 |
Consolidation, Eliminations | |||
OPERATING ACTIVITIES | |||
Net Cash Provided by Operating Activities | (809) | (598) | (460) |
INVESTING ACTIVITIES | |||
Purchases of Property, Plant and Equipment | 0 | 0 | 0 |
Proceeds from Disposals of Property, Plant and Equipment | 0 | 0 | 0 |
Proceeds from Sale of Business | 0 | 0 | |
Proceeds from Principal Payments Received on Long-Term Note Receivable | 0 | ||
Acquisitions of Businesses, Net of Cash Acquired | 0 | 0 | |
Purchase of Intangible Asset | 0 | ||
Change in Investments in Subsidiaries | 199,028 | ||
Issuance of Long-Term Note Receivable | 0 | ||
Purchase of Intangible Asset | 0 | ||
Change in Investments in Subsidiaries | 19,594 | ||
Loan Borrowings (Payments) from Subsidiaries | 164,763 | (8,690) | (268) |
(Increase) Decrease in Restricted Cash | 0 | 0 | 0 |
Net Cash Used in Investing Activities | 363,791 | 10,904 | (268) |
FINANCING ACTIVITIES | |||
Loan Borrowings (Payments) from Parent | (164,763) | 8,690 | |
Proceeds from Short-Term Debt | 0 | ||
Repayments of Short-Term Debt | 0 | 268 | |
Payments of Long-Term Debt | 0 | ||
Purchases of Common Stock | 0 | 0 | |
Change in Subsidiary Equity | (199,028) | (19,594) | |
Proceeds from Issuance of Long-Term Debt | 0 | 0 | |
Payments of Long-Term Debt | 0 | 0 | |
Payments of Debt Issuance Costs | 0 | ||
Change in Capital Lease Obligations | 0 | ||
Proceeds from Issuances of Common Stock | 0 | 0 | 0 |
Purchase of Noncontrolling Owner Interest | 0 | ||
Excess Tax Benefit on Stock Plans | 0 | 0 | |
Dividends Paid | 809 | 598 | 460 |
Net Cash Provided by Financing Activities | (362,982) | (10,306) | 728 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | 0 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 |
Cash and Cash Equivalents at Beginning of Year | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 0 | $ 0 | $ 0 |
Separate Financial Informatio84
Separate Financial Information of Guarantor Subsidiaries Narrative (Details) - Bonds - USD ($) | Dec. 31, 2017 | Apr. 18, 2017 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Face amount | $ 300,000,000 | |
Interest rate, Stated percentage | 5.625% | 5.625% |
Schedule II Valuation and Qua85
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Valuation and Qualifying Accounts Disclosure | ||||
Balance at beginning of year | $ 3,108 | |||
Balance at end of year | 3,241 | $ 3,108 | ||
Allowance for Doubtful Accounts and Returns | ||||
Valuation and Qualifying Accounts Disclosure | ||||
Balance at beginning of year | 3,108 | 3,615 | $ 3,936 | |
Charged to costs and expenses | 1,602 | 561 | 1,087 | |
Reclassification | [1] | (526) | 0 | 172 |
Charged to other accounts | [2] | 111 | (19) | (159) |
Deductions | [3] | (1,054) | (1,049) | (1,421) |
Balance at end of year | 3,241 | 3,108 | 3,615 | |
Inventory Reserves | ||||
Valuation and Qualifying Accounts Disclosure | ||||
Balance at beginning of year | 3,644 | 3,540 | 3,272 | |
Charged to costs and expenses | 1,698 | 1,455 | 1,728 | |
Charged to other accounts | [2] | 183 | (50) | (160) |
Deductions | [4] | (1,418) | (1,301) | (1,300) |
Balance at end of year | 4,107 | 3,644 | 3,540 | |
Valuation Allowance for Deferred Tax Assets | ||||
Valuation and Qualifying Accounts Disclosure | ||||
Balance at beginning of year | 6,865 | 5,884 | 5,699 | |
Charged to costs and expenses | 1,634 | 1,295 | 734 | |
Charged to other accounts | [2] | 1,192 | (314) | (549) |
Balance at end of year | $ 9,691 | $ 6,865 | $ 5,884 | |
[1] | Includes amount reclassified from Allowance for Doubtful Accounts to Other Receivables 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. |