x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 04-3477276 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
c/o CIRCOR INTERNATIONAL, Inc. 30 Corporate Drive, Suite 200, Burlington, MA | 01803-4238 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | o | Emerging growth company | o | |
Non-accelerated filer | o | Smaller reporting company | o |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, par value $0.01 per share | CIR | New York Stock Exchange |
Page | ||
Financial Statements (Unaudited) | ||
Item 6. | ||
ITEM 1. | FINANCIAL STATEMENTS |
March 31, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 73,619 | $ | 68,517 | |||
Trade accounts receivable, less allowance for doubtful accounts of $5,048 and $6,735 at March 31, 2019 and December 31, 2018, respectively | 188,500 | 183,552 | |||||
Inventories | 217,991 | 217,378 | |||||
Prepaid expenses and other current assets | 89,904 | 90,659 | |||||
Assets held for sale | 4,623 | 87,940 | |||||
Total Current Assets | 574,637 | 648,046 | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | 198,148 | 201,799 | |||||
OTHER ASSETS: | |||||||
Goodwill | 460,995 | 459,205 | |||||
Intangibles, net | 422,302 | 441,302 | |||||
Deferred income taxes | 25,632 | 28,462 | |||||
Other assets | 37,620 | 12,798 | |||||
TOTAL ASSETS | $ | 1,719,334 | $ | 1,791,612 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 122,277 | $ | 123,881 | |||
Accrued expenses and other current liabilities | 99,591 | 107,312 | |||||
Accrued compensation and benefits | 27,251 | 33,878 | |||||
Current portion of long-term debt | — | 7,850 | |||||
Liabilities held for sale | — | 11,141 | |||||
Total Current Liabilities | 249,119 | 284,062 | |||||
LONG-TERM DEBT | 733,666 | 778,187 | |||||
DEFERRED INCOME TAXES | 33,780 | 33,932 | |||||
PENSION LIABILITY, NET | 148,297 | 150,623 | |||||
OTHER NON-CURRENT LIABILITIES | 38,295 | 15,815 | |||||
COMMITMENTS AND CONTINGENCIES (NOTE 11) | |||||||
SHAREHOLDERS’ EQUITY: | |||||||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued and outstanding | — | — | |||||
Common stock, $0.01 par value; 29,000,000 shares authorized; 19,875,993 and 19,845,205 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 212 | 212 | |||||
Additional paid-in capital | 442,568 | 440,890 | |||||
Retained earnings | 228,582 | 232,102 | |||||
Common treasury stock, at cost (1,372,488 shares at March 31, 2019 and December 31, 2018) | (74,472 | ) | (74,472 | ) | |||
Accumulated other comprehensive loss, net of tax | (80,713 | ) | (69,739 | ) | |||
Total Shareholders’ Equity | 516,177 | 528,993 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,719,334 | $ | 1,791,612 |
Three Months Ended | |||||||
March 31, 2019 | April 1, 2018 | ||||||
Net revenues | $ | 270,395 | $ | 275,580 | |||
Cost of revenues | 196,526 | 199,276 | |||||
GROSS PROFIT | 73,869 | 76,304 | |||||
Selling, general and administrative expenses | 69,973 | 77,238 | |||||
Special and restructuring (recoveries) charges, net | (7,816 | ) | 12,446 | ||||
OPERATING INCOME (LOSS) | 11,712 | (13,380 | ) | ||||
Other expense (income): | |||||||
Interest expense, net | 13,179 | 11,801 | |||||
Other income, net | (1,913 | ) | (1,861 | ) | |||
TOTAL OTHER EXPENSE, NET | 11,266 | 9,940 | |||||
INCOME (LOSS) BEFORE INCOME TAXES | 446 | (23,320 | ) | ||||
Provision for (benefit from) income taxes | 5,079 | (5,879 | ) | ||||
NET LOSS | $ | (4,633 | ) | $ | (17,441 | ) | |
Loss per common share: | |||||||
Basic | $ | (0.23 | ) | $ | (0.88 | ) | |
Diluted | $ | (0.23 | ) | $ | (0.88 | ) | |
Weighted average number of common shares outstanding: | |||||||
Basic | 19,870 | 19,806 | |||||
Diluted | 19,870 | 19,806 |
Three Months Ended | |||||||
March 31, 2019 | April 1, 2018 | ||||||
Net Loss | $ | (4,633 | ) | $ | (17,441 | ) | |
Other comprehensive (loss) income, net of tax: | |||||||
Foreign currency translation adjustments | (8,840 | ) | 8,341 | ||||
Interest rate swap adjustments (1) | (2,134 | ) | — | ||||
Other comprehensive (loss) income, net of tax | (10,974 | ) | 8,341 | ||||
COMPREHENSIVE (LOSS) INCOME | $ | (15,607 | ) | $ | (9,100 | ) | |
(1) Net of an income tax effect of $(0.6 million) for the three months ended March 31, 2019. |
Three Months Ended | |||||||
OPERATING ACTIVITIES | March 31, 2019 | April 1, 2018 | |||||
Net loss | $ | (4,633 | ) | $ | (17,441 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation | 5,944 | 7,334 | |||||
Amortization | 12,836 | 12,329 | |||||
Bad debt expense | 109 | 261 | |||||
Loss on write down of inventory | 3,368 | 963 | |||||
Amortization of inventory fair value step-up | — | 6,600 | |||||
Compensation expense for share-based plans | 1,432 | 1,365 | |||||
Amortization of debt issuance costs | 1,010 | 881 | |||||
Loss on sale or write-down of property, plant and equipment | 96 | 1,284 | |||||
Gain on sale of business | (10,282 | ) | — | ||||
Changes in operating assets and liabilities, net of effects of acquisition and disposition: | |||||||
Trade accounts receivable | (8,635 | ) | 22,038 | ||||
Inventories | (3,452 | ) | (14,850 | ) | |||
Prepaid expenses and other assets | 2,881 | (11,648 | ) | ||||
Accounts payable, accrued expenses and other liabilities | (23,052 | ) | (9,261 | ) | |||
Net cash used in operating activities | (22,378 | ) | (145 | ) | |||
INVESTING ACTIVITIES | |||||||
Additions to property, plant and equipment | (3,717 | ) | (8,234 | ) | |||
Proceeds from the sale of property, plant and equipment | 28 | 93 | |||||
Proceeds from the sale of business, net | 83,321 | — | |||||
Net cash provided by (used in) investing activities | 79,632 | (8,141 | ) | ||||
FINANCING ACTIVITIES | |||||||
Proceeds from long-term debt | 87,400 | 71,950 | |||||
Payments of long-term debt | (140,500 | ) | (44,106 | ) | |||
Proceeds from the exercise of stock options | — | 301 | |||||
Return of cash to Fluid Handling Seller | — | (7,905 | ) | ||||
Net cash (used in) provided by financing activities | (53,100 | ) | 20,240 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 957 | 956 | |||||
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 5,111 | 12,910 | |||||
Cash, cash equivalents, and restricted cash at beginning of period | 69,525 | 112,293 | |||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ | 74,636 | $ | 125,203 | |||
Non-cash investing activities: | |||||||
Purchases of property and equipment included in accounts payable and accrued expenses | $ | 1,018 | $ | 2,104 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Total Shareholders’ Equity | |||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2018 | 19,845 | $ | 212 | $ | 440,890 | $ | 232,102 | $ | (69,739 | ) | $ | (74,472 | ) | $ | 528,993 | |||||||||||
Net Loss | — | — | — | (4,633 | ) | — | — | (4,633 | ) | |||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | (10,974 | ) | — | (10,974 | ) | |||||||||||||||||
Cumulative effect adjustment related to adoption of lease standard (ASC 842) | — | — | — | 1,113 | — | — | 1,113 | |||||||||||||||||||
Conversion of restricted stock units | 31 | — | 246 | — | — | — | 246 | |||||||||||||||||||
Share-based plan compensation | — | — | 1,432 | — | — | — | 1,432 | |||||||||||||||||||
BALANCE AS OF MARCH 31, 2019 | 19,876 | $ | 212 | $ | 442,568 | $ | 228,582 | $ | (80,713 | ) | $ | (74,472 | ) | $ | 516,177 | |||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Total Shareholders’ Equity | |||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2017 | 19,785 | $ | 212 | $ | 438,721 | $ | 274,243 | $ | (36,730 | ) | $ | (74,472 | ) | $ | 601,974 | |||||||||||
Net Loss | — | — | — | (17,441 | ) | $ | — | — | (17,441 | ) | ||||||||||||||||
Cumulative translation adjustment | — | — | — | — | 8,341 | — | 8,341 | |||||||||||||||||||
Cumulative effect adjustment related to adoption of new revenue recognition standard (ASU 2014-09) | — | — | — | (2,756 | ) | — | — | (2,756 | ) | |||||||||||||||||
Stock options exercised | 8 | — | 301 | — | — | — | 301 | |||||||||||||||||||
Conversion of restricted stock units | 37 | — | 312 | — | — | — | 312 | |||||||||||||||||||
Share-based plan compensation | — | — | 1,365 | — | — | — | 1,365 | |||||||||||||||||||
BALANCE AS OF APRIL 1, 2018 | 19,830 | $ | 212 | $ | 440,699 | $ | 254,046 | $ | (28,389 | ) | $ | (74,472 | ) | $ | 592,096 |
March 31, 2019 | April 1, 2018 | |||||||
Three Months Ended | Three Months Ended | |||||||
Energy Segment | ||||||||
Oil & Gas - Upstream, Midstream & Other | $ | 45,665 | $ | 47,885 | ||||
Oil & Gas - Downstream | 52,752 | 52,087 | ||||||
Total | 98,417 | 99,972 | ||||||
Aerospace & Defense Segment | ||||||||
Commercial Aerospace & Other | 28,706 | 26,657 | ||||||
Defense | 32,534 | 31,820 | ||||||
Total | 61,240 | 58,477 | ||||||
Industrial Segment | ||||||||
Valves | 28,532 | 27,679 | ||||||
Pumps | 82,206 | 89,452 | ||||||
Total | 110,738 | 117,131 | ||||||
Net Revenue | $ | 270,395 | $ | 275,580 |
March 31, 2019 | April 1, 2018 | |||||||
Three Months Ended | Three Months Ended | |||||||
Energy Segment | ||||||||
EMEA | $ | 34,452 | $ | 19,898 | ||||
North America | 52,957 | 64,467 | ||||||
Other | 11,008 | 15,607 | ||||||
Total | 98,417 | 99,972 | ||||||
Aerospace & Defense Segment | ||||||||
EMEA | $ | 17,732 | $ | 15,396 | ||||
North America | 37,393 | 37,749 | ||||||
Other | 6,115 | 5,332 | ||||||
Total | 61,240 | 58,477 | ||||||
Industrial Segment | ||||||||
EMEA | $ | 54,492 | $ | 60,679 | ||||
North America | 34,547 | 32,250 | ||||||
Other | 21,699 | 24,202 | ||||||
Total | 110,738 | 117,131 | ||||||
Net Revenue | $ | 270,395 | $ | 275,580 |
December 31, 2018 | March 31, 2019 | Increase/(Decrease) | |||||||||
Trade accounts receivables, net | $ | 183,552 | $ | 188,500 | $ | 4,948 | |||||
Contract assets (1) | 61,618 | 61,889 | 271 | ||||||||
Contract liabilities (2) (3) | 48,325 | 36,374 | (11,951 | ) | |||||||
(1) Recorded within prepaid expenses and other current assets. | |||||||||||
(2) Recorded within accrued expenses and other current liabilities | |||||||||||
(3) The Contract Liabilities balance as of December 31, 2018 has been adjusted by $1.4 million attributed to the Reliability Services divestiture. |
Leases | |||||||
Assets | Operating | Finance | |||||
Gross ROU Assets (1) | $ | 25,102 | $ | 1,165 | |||
Less: Accumulated Amortization | 1,298 | 9 | |||||
Net ROU Assets | $ | 23,804 | $ | 1,156 | |||
Liabilities | Operating | Finance | |||||
Current (2) | $ | 5,327 | $ | 178 | |||
Non-current (3) | 18,560 | 1,048 | |||||
Total Lease Liabilities | $ | 23,887 | $ | 1,226 | |||
(1) Operating and Finance ROU Assets are included within other assets on the Balance Sheet. | |||||||
(2) The current portion of operating and finance lease liabilities are recorded within accrued expenses and other current liabilities on the Balance Sheet. | |||||||
(3) The non-current portion of operating and finance lease liabilities are recorded within other non-current liabilities on the Balance Sheet. |
Lease Costs | March 31, 2019 | ||
Operating lease cost (1) | $ | 1,880 | |
Finance lease cost | |||
Amortization of leased assets (2) | $ | 3 | |
Interest on lease liabilities (3) | — | ||
Total finance lease costs | 3 | ||
Total lease cost | $ | 1,883 | |
(1) Operating lease costs are recorded within selling, general and administrative expenses or Cost of Revenue within the Consolidated Statement of Loss depending upon the nature of the underlying lease. | |||
(2) Finance lease amortization costs are recorded in selling, general and administrative expenses within the Consolidated Statement of Loss. | |||
(3) Finance lease interest costs are recorded in interest expense, net within the Consolidated Statement of Loss. | |||
Short-term lease expense and variable lease costs were $0.1 million and $0.0 million, respectively, for the three months ended March 31, 2019. |
Maturity of Lease Liabilities | Operating Leases | Finance Leases | Total | ||||||
2019 | $ | 5,404 | $ | 137 | $ | 5,541 | |||
2020 | 4,996 | 163 | 5,159 | ||||||
2021 | 4,291 | 161 | 4,452 | ||||||
2022 | 3,539 | 149 | 3,688 | ||||||
2023 | 2,962 | 149 | 3,111 | ||||||
After 2023 | 8,225 | 473 | 8,698 | ||||||
Less: Interest | $ | (5,530 | ) | $ | (6 | ) | $ | (5,536 | ) |
Present value of lease liabilities | $ | 23,887 | $ | 1,226 | $ | 25,113 |
Lease Term and Discount Rate | March 31, 2019 | |
Weighted average remaining lease term (years) | ||
Operating leases | 6.3 | |
Finance leases | 7.7 | |
Weighted average discount rate (percentage) | ||
Operating leases | 5.7 | % |
Finance leases | 2.0 | % |
Other Information | March 31, 2019 | ||
Operating Activities | |||
Noncash lease expense on operating ROU assets | $ | (23,762 | ) |
Amortization expense on finance ROU assets | 3 | ||
Change in total operating lease liabilities | 23,846 | ||
Principal paid on operating lease liabilities | (93 | ) | |
Total Operating Activities | $ | (6 | ) |
Financing Activities | |||
Principal paid on finance lease liabilities | $ | (8 | ) |
Supplemental | |||
Interest Paid on finance lease liabilities | — |
2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | ||||||||||||||||||
Minimum lease commitments | $ | 9,481 | $ | 6,303 | $ | 4,573 | $ | 3,345 | $ | 2,540 | $ | 6,032 |
Special & Restructuring Charges (Recoveries), net | |||||||
Three Months Ended | |||||||
March 31, 2019 | April 1, 2018 | ||||||
Special (recoveries) charges, net | $ | (8,679 | ) | $ | 2,831 | ||
Restructuring charges, net | 863 | 9,615 | |||||
Total special and restructuring (recoveries) charges, net | $ | (7,816 | ) | $ | 12,446 |
Special (Recoveries) Charges, net | |||||||||||||||||||
For the three months ended March 31, 2019 | |||||||||||||||||||
Energy | Aerospace & Defense | Industrial | Corporate | Total | |||||||||||||||
Reliability Services divestiture | $ | (10,282 | ) | $ | — | $ | — | $ | — | $ | (10,282 | ) | |||||||
Reliability Services 2019 operating expenses | 1,450 | — | — | — | 1,450 | ||||||||||||||
Rosscor divestiture related charges | — | — | 153 | — | 153 | ||||||||||||||
Total special charges, net | $ | (8,832 | ) | $ | — | $ | 153 | $ | — | $ | (8,679 | ) |
Special Charges (Recoveries), net | |||||||||||||||||||
For the three months ended April 1, 2018 | |||||||||||||||||||
Energy | Aerospace & Defense | Industrial | Corporate | Total | |||||||||||||||
Acquisition related charges | $ | — | $ | — | $ | — | $ | 2,455 | $ | 2,455 | |||||||||
Brazil closure | 376 | — | — | — | 376 | ||||||||||||||
Total special charges, net | $ | 376 | $ | — | $ | — | $ | 2,455 | $ | 2,831 |
• | On December 11, 2017, we acquired fluid handing business of Colfax Corporation ("FH"). In connection with our acquisition, we recorded $2.5 million during the three months ended April 1, 2018 related to internal and external professional fee costs to integrate the FH business into our legacy framework. |
• | Brazil Closure: On November 3, 2015, our Board of Directors approved the closure and exit of our Brazil manufacturing operations due to the economic realities in Brazil and the ongoing challenges with our only significant end customer, Petrobras. CIRCOR Brazil reported substantial operating losses every year since it was acquired in 2011 while the underlying market conditions and outlook deteriorated. In connection with the closure, we recorded $0.4 million of charges within the Energy segment during the three months ended April 1, 2018, which relates to losses incurred subsequent to our closure of manufacturing operations during the first quarter of 2016. |
Restructuring Charges | |||||||||||||||||||
As of and for the three months ended March 31, 2019 | |||||||||||||||||||
Energy | Aerospace & Defense | Industrial | Corporate | Total | |||||||||||||||
Facility related expenses | $ | 261 | $ | 70 | $ | — | $ | — | $ | 331 | |||||||||
Employee related expenses, net | 262 | (2 | ) | 272 | — | 532 | |||||||||||||
Total restructuring charges, net | $ | 523 | $ | 68 | $ | 272 | $ | — | $ | 863 | |||||||||
Accrued restructuring charges as of December 31, 2018 | $ | 982 | |||||||||||||||||
Total quarter to date charges, net (shown above) | 863 | ||||||||||||||||||
Charges paid / settled, net | (106 | ) | |||||||||||||||||
Accrued restructuring charges as of March 31, 2019 | $ | 757 |
Restructuring Charges, net | |||||||||||||||||||
As of and for the three months ended April 1, 2018 | |||||||||||||||||||
Energy | Aerospace & Defense | Industrial | Corporate | Total | |||||||||||||||
Facility related expenses | $ | 1,481 | $ | 82 | $ | — | $ | — | $ | 1,563 | |||||||||
Employee related (recoveries) expenses | 6,843 | — | 1,209 | — | 8,052 | ||||||||||||||
Total restructuring charges, net | $ | 8,324 | $ | 82 | $ | 1,209 | $ | — | $ | 9,615 | |||||||||
Accrued restructuring charges as of December 31, 2017 | $ | 1,586 | |||||||||||||||||
Total quarter to date charges, net (shown above) | 9,615 | ||||||||||||||||||
Charges paid / settled, net | (4,897 | ) | |||||||||||||||||
Accrued restructuring charges as of April 1, 2018 | $ | 6,304 |
2018 Actions Restructuring Charges, net as of March 31, 2019 | |||||||||||||||
Energy | Aerospace & Defense | Industrial | Total | ||||||||||||
Facility related expenses - incurred to date | $ | 2,448 | $ | 70 | $ | — | $ | 2,518 | |||||||
Employee related expenses - incurred to date | 7,893 | 380 | 1,808 | 10,081 | |||||||||||
Total restructuring related special charges - incurred to date | $ | 10,341 | $ | 450 | $ | 1,808 | $ | 12,599 |
March 31, 2019 | December 31, 2018 | ||||||
Raw materials | $ | 71,201 | $ | 69,910 | |||
Work in process | 115,655 | 116,088 | |||||
Finished goods | 31,135 | 31,380 | |||||
Total inventories | $ | 217,991 | $ | 217,378 |
Energy | Aerospace & Defense | Industrial | Total | ||||||||||||
Goodwill as of December 31, 2018 | $ | 104,872 | $ | 57,418 | $ | 296,915 | $ | 459,205 | |||||||
Divestiture (1) | 110 | — | — | 110 | |||||||||||
Currency translation adjustments | (4,335 | ) | (30 | ) | 6,045 | 1,680 | |||||||||
Goodwill as of March 31, 2019 | $ | 100,647 | $ | 57,388 | $ | 302,960 | $ | 460,995 | |||||||
(1) As of December 31, 2018, the Energy Segment had $40.4 million of Goodwill classified as "held for sale" in connection with the divestiture of our Reliability Services business in January 2019. |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | |||||||||
Patents | $ | 5,399 | $ | (5,399 | ) | $ | — | ||||
Customer relationships | 302,728 | (62,696 | ) | 240,032 | |||||||
Backlog | 22,889 | (20,730 | ) | 2,159 | |||||||
Acquired technology | 131,664 | (28,176 | ) | 103,488 | |||||||
Other | 3,783 | (3,783 | ) | — | |||||||
Total Amortized Assets | $ | 466,463 | $ | (120,784 | ) | $ | 345,679 | ||||
Non-amortized intangibles (primarily trademarks and trade names) | $ | 76,623 | $ | — | $ | 76,623 | |||||
Total Non-Amortized Intangibles | $ | 76,623 | $ | — | $ | 76,623 | |||||
Net carrying value of intangible assets | $ | 422,302 |
2019 | 2020 | 2021 | 2022 | 2023 | After 2023 | ||||||||||||||||||
Estimated amortization expense | $ | 35,597 | $ | 43,889 | $ | 42,143 | $ | 37,081 | $ | 32,509 | $ | 154,460 |
Three Months Ended | |||||||
March 31, 2019 | April 1, 2018 | ||||||
Net revenues | |||||||
Energy | $ | 98,417 | $ | 99,972 | |||
Aerospace & Defense | 61,240 | 58,477 | |||||
Industrial | 110,738 | 117,131 | |||||
Consolidated net revenues | $ | 270,395 | $ | 275,580 |
Income (Loss) from operations before income taxes | |||||||
Energy - Segment Operating Income | $ | 6,783 | $ | 5,696 | |||
Aerospace & Defense - Segment Operating Income | 9,374 | 8,931 | |||||
Industrial - Segment Operating Income | 10,787 | 12,948 | |||||
Corporate expenses | (6,705 | ) | (7,802 | ) | |||
Subtotal | 20,239 | 19,773 | |||||
Restructuring charges, net | 863 | 9,615 | |||||
Special (recoveries) charges, net | (8,679 | ) | 2,831 | ||||
Special and restructuring (recoveries) charges, net | (7,816 | ) | 12,446 | ||||
Restructuring related inventory charges | 3,141 | 473 | |||||
Amortization of inventory step-up | — | 6,600 | |||||
Acquisition amortization | 12,079 | 11,797 | |||||
Acquisition depreciation | 1,123 | 1,837 | |||||
Acquisition amortization and other costs, net | 16,343 | 20,707 | |||||
Consolidated Operating Income | 11,712 | (13,380 | ) | ||||
Interest expense, net | 13,179 | 11,801 | |||||
Other income, net | (1,913 | ) | (1,861 | ) | |||
Income (Loss) from operations before income taxes | $ | 446 | $ | (23,320 | ) | ||
Three Months Ended | |||||||
March 31, 2019 | April 1, 2018 | ||||||
Capital expenditures | |||||||
Energy | $ | 969 | $ | 3,345 | |||
Aerospace & Defense | 788 | 944 | |||||
Industrial | 1,141 | 3,624 | |||||
Corporate | 387 | 276 | |||||
Consolidated capital expenditures | $ | 3,285 | $ | 8,189 | |||
Depreciation and amortization | |||||||
Energy | $ | 3,325 | $ | 4,201 | |||
Aerospace & Defense | 2,673 | 2,793 | |||||
Industrial | 12,369 | 12,440 | |||||
Corporate | 142 | 229 | |||||
Consolidated depreciation and amortization | $ | 18,509 | $ | 19,663 | |||
Identifiable assets | March 31, 2019 | April 1, 2018 | |||||
Energy | $ | 707,813 | $ | 976,000 | |||
Aerospace & Defense | 406,064 | 348,291 | |||||
Industrial | 1,408,206 | 1,327,094 | |||||
Corporate | (802,749 | ) | (723,278 | ) | |||
Consolidated identifiable assets | $ | 1,719,334 | $ | 1,928,107 |
• | Level One: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. |
• | Level Two: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
• | Level Three: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
Significant Other Observable Inputs | |||
Level 2 | |||
Derivatives | $ | (4,103 | ) |
Balance beginning December 31, 2018 | $ | 4,050 | |
Provisions | 742 | ||
Claims settled | (664 | ) | |
Currency translation adjustment | (1 | ) | |
Balance ending March 31, 2019 | $ | 4,127 |
Term Remaining | Maximum Potential Future Payments | ||
0–12 months | $ | 54,661 | |
Greater than 12 months | 19,750 | ||
Total | $ | 74,411 |
Three Months Ended | |||||||
March 31, 2019 | April 1, 2018 | ||||||
Pension Benefits - U.S. Plans | |||||||
Service cost | $ | — | $ | — | |||
Interest cost | 1,967 | 1,762 | |||||
Expected return on plan assets | (2,742 | ) | (3,771 | ) | |||
Amortization | 129 | 38 | |||||
Net periodic benefit income | $ | (646 | ) | $ | (1,971 | ) | |
Pension Benefits - Non-U.S. Plans | |||||||
Service cost | $ | 695 | $ | 774 | |||
Interest cost | 555 | 552 | |||||
Expected return on plan assets | (247 | ) | (258 | ) | |||
Amortization | 5 | — | |||||
Net periodic benefit cost | $ | 1,008 | $ | 1,068 | |||
Other Post-Retirement Benefits | |||||||
Service cost | $ | — | $ | — | |||
Interest cost | 93 | 86 | |||||
Amortization | — | — | |||||
Net periodic benefit cost | $ | 93 | $ | 86 | |||
As of March 31, 2019 the Company’s plan assets included $2.2 million payable to Colfax Corporation for reimbursement of 2018 pension benefits paid, expenses and investment return. |
March 31, 2019 | April 1, 2018 | ||||
Risk-free interest rate | 2.6 | % | 2.5 | % | |
Expected life (years) | 4.4 | 4.4 | |||
Expected stock volatility | 38.1 | % | 37.2 | % | |
Expected dividend yield | — | % | — | % |
Foreign Currency Translation Adjustments | Pension, net | Derivative | Total | ||||||||||||||
Balance as of December 31, 2018 | $ | (49,109 | ) | $ | (19,114 | ) | $ | (1,516 | ) | $ | (69,739 | ) | |||||
Other comprehensive income | (8,840 | ) | — | (2,134 | ) | (10,974 | ) | ||||||||||
Balance as of March 31, 2019 | $ | (57,949 | ) | $ | (19,114 | ) | $ | 1 | $ | (3,650 | ) | $ | (80,713 | ) |
Q1 | Q2 | Q3 | Q4 | 2018 | |||||||||||||||
Overstated (understated) comprehensive income | $ | 5.4 | $ | (5.1 | ) | $ | (0.2 | ) | $ | 2.1 | $ | 2.2 |
(in thousands, except per share amounts) | Three Months Ended | ||||||||||||||||||||
March 31, 2019 | April 1, 2018 | ||||||||||||||||||||
Net Income | Shares | Per Share Amount | Net Income | Shares | Per Share Amount | ||||||||||||||||
Basic EPS | $ | (4,633 | ) | 19,870 | $ | (0.23 | ) | $ | (17,441 | ) | 19,806 | $ | (0.88 | ) | |||||||
Dilutive securities, common stock options | — | — | — | — | — | — | |||||||||||||||
Diluted EPS | $ | (4,633 | ) | 19,870 | $ | (0.23 | ) | $ | (17,441 | ) | 19,806 | $ | (0.88 | ) |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended | |||||||||||||||||||||||
(in thousands) | March 31, 2019 | April 1, 2018 | Total Change | Divestiture | Operations | Foreign Exchange | |||||||||||||||||
Net Revenues | |||||||||||||||||||||||
Energy | $ | 98,417 | $ | 99,972 | $ | (1,555 | ) | $ | (11,649 | ) | $ | 12,130 | $ | (2,036 | ) | ||||||||
Aerospace & Defense | 61,240 | 58,477 | 2,763 | — | 3,994 | (1,231 | ) | ||||||||||||||||
Industrial | 110,738 | 117,131 | (6,393 | ) | (3,897 | ) | 3,834 | (6,330 | ) | ||||||||||||||
Consolidated Net Revenues | $ | 270,395 | $ | 275,580 | $ | (5,185 | ) | $ | (15,546 | ) | $ | 19,958 | $ | (9,597 | ) |
(in thousands, except percentages) | Three Months Ended | ||||||
March 31, 2019 | April 1, 2018 | ||||||
Net revenues | |||||||
Energy | $ | 98,417 | $ | 99,972 | |||
Aerospace & Defense | 61,240 | 58,477 | |||||
Industrial | 110,738 | 117,131 | |||||
Consolidated net revenues | $ | 270,395 | $ | 275,580 | |||
Loss from operations before income taxes | |||||||
Energy - Segment Operating Income | $ | 6,783 | $ | 5,696 | |||
Aerospace & Defense - Segment Operating Income | 9,374 | 8,931 | |||||
Industrial - Segment Operating Income | 10,787 | 12,948 | |||||
Corporate expenses | (6,705 | ) | (7,802 | ) | |||
Subtotal | 20,239 | 19,773 | |||||
Restructuring charges, net | 863 | 9,615 | |||||
Special (recoveries) charges, net | (8,679 | ) | 2,831 | ||||
Special and restructuring (recoveries) charges, net (1) | (7,816 | ) | 12,446 | ||||
Restructuring related inventory charges (1) | 3,141 | 473 | |||||
Amortization of inventory step-up | — | 6,600 | |||||
Acquisition amortization (2) | 12,079 | 11,797 | |||||
Acquisition depreciation (2) | 1,123 | 1,837 | |||||
Acquisition amortization and other costs, net | 16,343 | 20,707 | |||||
Consolidated Operating Income (Loss) | 11,712 | (13,380 | ) | ||||
Interest expense, net | 13,179 | 11,801 | |||||
Other income, net | (1,913 | ) | (1,861 | ) | |||
Loss from operations before income taxes | $ | 446 | $ | (23,320 | ) | ||
Consolidated Operating Margin | 4.3 | % | (-5%) | ||||
(1) See Special & Restructuring (Recoveries) Charges, net in Note 5 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional details. | |||||||
(2) Acquisition amortization and depreciation is recorded in either cost of revenues or selling, general, and administrative expenses depending upon the nature of the underlying asset. |
Three Months Ended | |||||||||||
(in thousands, except percentages) | March 31, 2019 | April 1, 2018 | Change | ||||||||
Net Revenue as reported | $ | 98,417 | $ | 99,972 | $ | (1,555 | ) | ||||
Net Revenues excluding divestiture (1) | 95,311 | 85,240 | 10,071 | ||||||||
Segment Operating Income as reported | 6,783 | 5,696 | 1,087 | ||||||||
Segment Operating Income excluding divestiture (2) | 6,783 | 5,688 | 1,095 | ||||||||
Segment Operating Margin | 7.1 | % | 6.7 | % | |||||||
(1) Adjusted for the divestiture of our Reliability Services business, which generated revenues of $3.1 million and $14.7 million for the three months ended March 31, 2019 and April 1, 2018, respectively. | |||||||||||
(2) Adjusted for the divestiture of our Reliability Services business, which contributed $0.0 million and $0.0 million to Segment Operating Income for the three months ended March 31, 2019 and April 1, 2018, respectively. |
Three Months Ended | |||||||||||
(in thousands, except percentages) | March 31, 2019 | April 1, 2018 | Change | ||||||||
Net Revenues | $ | 61,240 | $ | 58,477 | $ | 2,763 | |||||
Segment Operating Income | 9,374 | 8,931 | 443 | ||||||||
Segment Operating Margin | 15.3 | % | 15.3 | % |
Three Months Ended | ||||||||||
(in thousands, except percentages) | March 31, 2019 | April 1, 2018 | Change | |||||||
Net Revenues | $ | 110,738 | 117,131 | $ | (6,393 | ) | ||||
Net Revenues excluding divestiture (1) | 110,738 | 113,234 | (2,496 | ) | ||||||
Segment Operating Income | 10,787 | 12,948 | (2,161 | ) | ||||||
Segment Operating Income excluding divestiture (2) | 10,787 | 12,873 | (2,086 | ) | ||||||
Segment Operating Margin (adjusted) | 9.7 | % | 11.4 | % | ||||||
(1) Adjusted for the divestiture of our Rosscor B.V. and SES International B.V. subsidiaries (the "Delden Business"), which generated revenues of $0.0 million and $3.9 million for the three months ended March 31, 2019 and April 1, 2018, respectively. | ||||||||||
(2) Adjusted for the divestiture of the Delden Business, which contributed $0.0 million and $0.1 million to Segment Operating Income for the three months ended March 31, 2019 and April 1, 2018, respectively. |
Three months ended | |||||||
March 31, 2019 | April 1, 2018 | ||||||
INCOME/(LOSS) BEFORE INCOME TAXES | $ | 446 | $ | (23,320 | ) | ||
U.S. tax rate | 21.0 | % | 21.0 | % | |||
Foreign derived intangible income - US impact | 81 | % | — | % | |||
U.S. permanent differences | 46.5 | % | 4.0 | % | |||
Foreign Tax rate differential | (67.6 | )% | (1.9 | )% | |||
Global Intangible Low-Taxed Income impact | (33.7 | )% | (9.2 | )% | |||
Intercompany financing | 181.5 | % | 8.6 | % | |||
Divestiture of Reliability Services | 595.4 | % | — | % | |||
Other | 316.0 | % | 2.9 | % | |||
Effective tax rate | 1,140.1 | % | 25.2 | % | |||
(Provision for)/ Benefit from income taxes | $ | (5,079 | ) | $ | 5,879 |
Cumulative Planned Savings | Cumulative Projected Savings | Expected Periods of Savings Realization | |||||||
OKC Closure (1) | $ | 1.0 | $ | 1.0 | Q4 2018 - Q4 2019 | ||||
2018 Actions | 8.2 | 8.2 | Q2 2018 - Q3 2019 | ||||||
2017 Actions | 6.9 | 6.9 | Q2 2017 - Q4 2018 | ||||||
Total Savings | $ | 16.1 | $ | 16.1 | |||||
(1) - Savings figures above represent only the structural savings as a result of the closure and exit of the manufacturing facility at the Energy Group's Oklahoma City site. As part of this action, we expect margin expansion within our Energy Group primarily due to the lower labor rates in Mexico as we deliver on the volume. The savings amounts above do not include the benefit from the anticipated margin expansion. |
March 31, 2019 | April 1, 2018 | ||||||
Cash flow provided by (used in): | |||||||
Operating activities | $ | (22,378 | ) | $ | (145 | ) | |
Investing activities | 79,632 | (8,141 | ) | ||||
Financing activities | (53,100 | ) | 20,240 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 957 | 956 | |||||
(Decrease) / Increase in cash, cash equivalents and restricted cash | $ | 5,111 | $ | 12,910 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 6. | EXHIBITS |
Exhibit No. | Description and Location | |
10.1* | Form of Performance-Based Restricted Stock Unit Agreement for Employees under the 2014 Stock Option and Incentive Plan. | |
10.2* | Form of Management Stock Purchase Plan Restricted Stock Unit Agreement for Employees and Directors under the 2014 Stock Option and Incentive Plan | |
10.3* | Form of Non-Qualified Stock Option Agreement For Employees under the 2014 Stock Option And Incentive Plan | |
10.4* | Form of Restricted Stock Unit Agreement for Employees under the 2014 Stock Option and Incentive Plan | |
10.5* | Form of Restricted Stock Unit Agreement for Directors under the 2014 Stock Option and Incentive Plan | |
Executive Change of Control Agreement between the Company and Chadi Chahine, dated January 7, 2019, incorporated herein by reference to Exhibit 10.39 to the Company's Annual Report on Form 10-K (File No. 001-14962), filed with the SEC on March 1, 2019 | ||
Severance Agreement, dated January 7, 2019, between the Company and Chadi Chahine, incorporated herein by reference to Exhibit 10.40 to the Company's Annual Report on Form 10-K (File No. 001-14962), filed with the SEC on March 1, 2019 | ||
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
101 | The following financial statements (Unaudited) from CIRCOR International, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, as filed with the Securities and Exchange Commission on May 7, 2019, formatted in XBRL (eXtensible Business Reporting Language), as follows: | |
(i) | Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018 | |
(ii) | Condensed Consolidated Statements of (Loss) Income for the Three Months Ended March 31, 2019 and April 1, 2018 | |
(iii) | Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three Months Ended March 31, 2019 and April 1, 2018 | |
(iv) | Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2019 and April 1, 2018 | |
(v) | Condensed Consolidated Statement of Shareholder's Equity as of Three Months Ended March 31, 2019 and December 31, 2018 | |
(vi) | Notes to Condensed Consolidated Financial Statements | |
* | Filed with this report. | |
** | Furnished with this report. |
CIRCOR INTERNATIONAL, INC. | |
May 14, 2019 | /s/ Scott A. Buckhout |
Scott A. Buckhout | |
President and Chief Executive Officer | |
Principal Executive Officer | |
May 14, 2019 | /s/ Chadi Chahine |
Chadi Chahine | |
Senior Vice President and Chief Financial Officer | |
Principal Financial Officer | |
May 14, 2019 | /s/ David F. Mullen |
David F. Mullen | |
Senior Vice President and Corporate Controller | |
Principal Accounting Officer |
1. | Deferral of Restricted Stock Units |
2. | Designation of Beneficiary (Optional) |
3. | Effective Date of Election |
1. | I have reviewed this quarterly report on Form 10-Q of CIRCOR International, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
May 14, 2019 | Signature: | /s/ Scott A. Buckhout |
Scott A. Buckhout | ||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of CIRCOR International, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
May 14, 2019 | Signature: | /s/ Chadi Chahine |
Chadi Chahine | ||
Senior Vice President and Chief Financial Officer |
/s/ Scott A. Buckhout | /s/ Chadi Chahine | |
Scott A. Buckhout | Chadi Chahine | |
President and Chief Executive Officer | Senior Vice President and Chief Financial Officer | |
Principal Executive Officer | Principal Financial Officer | |
May 14, 2019 | May 14, 2019 |
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Document And Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
May 02, 2019 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | CIRCOR INTERNATIONAL INC | |
Entity Central Index Key | 0001091883 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 19,898,153 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Trade accounts receivable, allowance for doubtful accounts | $ 5,048 | $ 6,735 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 29,000,000 | 29,000,000 |
Common Stock, Shares, Issued | 19,875,993 | 19,845,205 |
Common Stock, Shares, Outstanding | 19,875,993 | 19,845,205 |
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
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Mar. 31, 2019 |
Apr. 01, 2018 |
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Net revenues | $ 270,395 | $ 275,580 |
Cost of revenues | 196,526 | 199,276 |
GROSS PROFIT | 73,869 | 76,304 |
Selling, general and administrative expenses | 69,973 | 77,238 |
Restructuring and Related Cost, Incurred Cost | (7,816) | 12,446 |
OPERATING INCOME (LOSS) | 11,712 | (13,380) |
Other expense (income): | ||
Interest expense, net | 13,179 | 11,801 |
Other income, net | (1,913) | (1,861) |
TOTAL OTHER EXPENSE, NET | 11,266 | 9,940 |
INCOME (LOSS) BEFORE INCOME TAXES | 446 | (23,320) |
Provision for (benefit from) income taxes | 5,079 | (5,879) |
NET LOSS | $ (4,633) | $ (17,441) |
Loss per common share: | ||
Basic | $ (0.23) | $ (0.88) |
Diluted | $ (0.23) | $ (0.88) |
Weighted average number of common shares outstanding: | ||
Basic | 19,870 | 19,806 |
Diluted | 19,870 | 19,806 |
Statements Of Consolidated Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2019 |
Apr. 01, 2018 |
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Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (4,633) | $ (17,441) |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation adjustments | (8,840) | 8,341 |
Interest rate swap adjustments (1) | (2,134) | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (10,974) | 8,341 |
COMPREHENSIVE INCOME (LOSS) | $ (15,607) | $ (9,100) |
Basis Of Presentation |
3 Months Ended |
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Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying unaudited, condensed consolidated financial statements have been prepared according to the rules and regulations of the United States (the "U.S.") Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of (loss) income, consolidated statements of comprehensive income (loss), consolidated statements of cash flows and consolidated statements of shareholders' equity of CIRCOR International, Inc. (“CIRCOR”, the “Company”, “us”, “we” or “our”) for the periods presented. We prepare our interim financial information using the same accounting principles we use for our annual audited consolidated financial statements. Certain information and note disclosures normally included in the annual audited consolidated financial statements have been condensed or omitted in accordance with SEC rules. We believe that the disclosures made in our condensed consolidated financial statements and the accompanying notes are adequate to make the information presented not misleading. The consolidated balance sheet as of December 31, 2018 is as reported in our audited consolidated financial statements as of that date but does not contain all of the footnote disclosures from the annual financial statements. Our accounting policies are described in the notes to our December 31, 2018 consolidated financial statements, which were included in our Annual Report on Form 10-K for the year ended December 31, 2018, as updated by Note 2 with respect to newly adopted accounting standards. We recommend that the financial statements included in our Quarterly Report on Form 10-Q be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2018. We operate and report financial information using a fiscal year ending December 31. The data periods contained within our Quarterly Reports on Form 10-Q reflect the results of operations for the 13-week, 26-week and 39-week periods which generally end on the Sunday nearest the calendar quarter-end date. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any future quarter. Unless otherwise indicated, all financial information and statistical data included in these notes to our condensed consolidated financial statements relate to our continuing operations, with dollar amounts expressed in thousands (except per-share data). |
Summary Of Significant Accounting Policies |
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Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements for the three months ended March 31, 2019 are consistent with those discussed in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2018, except as updated below with respect to newly adopted accounting standards. New Accounting Standards - Adopted On January 1, 2019 we adopted the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases, and all related amendments ("ASC 842"), specifically, ASU 2018-11, Leases: Targeted Improvements, under the modified retrospective approach. The amendment provides us with transition relief, as we elected not to recast the comparable periods and rather used the effective adoption date of the standard as the date of initial application. Comparable periods and the related disclosures are reflected herein under ASC 840. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional Right-of-Use ("ROU") assets and lease liabilities of $23.8 million and $24.1 million respectively, as of January 1, 2019. ROU assets represent our right to use an underlying asset for the lease term and the lease liabilities represent our obligation to make lease payments arising from the lease. The difference between the additional lease assets and lease liabilities, was recorded as an adjustment to deferred rent and prepaid rent. The standard did not materially impact our consolidated net earnings. See Note 4, Leases for further information. |
Revenue Recognition (Notes) |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Our revenue is derived from a variety of contracts. A significant portion of our revenues are from contracts associated with the design, development, manufacture or modification of highly engineered, complex and severe environment products with customers who are either in or service the energy, aerospace, defense and industrial markets. Our contracts within the defense markets are primarily with U.S. military customers. These contracts typically are subject to the Federal Acquisition Regulations (FAR). We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Contracts may be modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Contract modifications for goods or services that are not distinct from the existing contract are accounted for as if they were part of that existing contract. Revenue is recognized from products and services transferred to customers over-time using an input measure (e.g., costs incurred to date relative to total estimated costs at completion, known as the “cost-to-cost” method) to measure progress. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, revenues are recorded proportionally as costs are incurred. Contract costs include labor, materials and subcontractors’ costs, other direct costs and an allocation of overhead, as appropriate. As of March 31, 2019, we had $521.0 million of revenue related to remaining unfulfilled performance obligations. We expect to recognize approximately 79 percent of our remaining performance obligations as revenue during the remainder of 2019, 18 percent in 2020, and the remaining 3 percent in 2021 and thereafter. In order to determine revenue recognized in the period from contract liabilities, we first allocate revenue to the individual contract liabilities balances outstanding at the beginning of the period until the revenue exceeds that balance. If additional advances are received on those contracts in subsequent periods, we assume all revenue recognized in the reporting period first applies to the beginning contract liabilities as opposed to a portion applying to the new advances for the period. The impact of adjustments in contract estimates on our operating earnings can be reflected in either operating expenses or revenue. There have been no significant changes in estimates in the three months ended March 31, 2019. Disaggregation of Revenue. The following tables present our revenue disaggregated by major product line and geographical market (in thousands):
Contract Balances. The Company’s contract assets and contract liabilities balances as of December 31, 2018 and March 31, 2019, respectively, are as follows (in thousands):
Trade accounts receivable, net increased by $4.9 million as of March 31, 2019, primarily due to the timing of cash collections during the three months ended March 31, 2019. Contract assets as of March 31, 2019 remained fairly consistent with December 31, 2018, an increase of $0.3 million. Contract liabilities, excluding divestiture, decreased by $12.0 million, or 25%, to $36.4 million as of March 31, 2019, primarily driven by revenue recognized over time during the three months ended March 31, 2019 within our Refinery Valves (-9%) and U.S. Defense Business (-5%). |
Leases |
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Leases | Leases We lease certain office spaces, warehouses, vehicles and equipment. Leases with an initial term of 12-months or less have not been capitalized on the balance sheet. We recognize lease expense associated with these short-term leases on a straight-line basis over the lease term. For lease agreements entered into after the adoption of ASC 842, we combine lease and non-lease fixed components for real estate, vehicles and equipment leases. We do not combine lease and non-lease components for information technology leases. Variable lease costs were not included within the measurement of the lease liability as they were entirely variable or the difference between the portion captured within the lease liability and the actual cost will be expensed as incurred. Variable costs are contractually obligated and relate primarily to common area maintenance and taxes, which were not material to the financial statements. We elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward the historical lease classification, not to reassess if existing contracts are or contain leases, and not to reassess indirect costs for existing leases. We have elected not to recast the comparable periods and rather used the effective adoption date of the standard as the date of initial application. Leases which contain a renewal option to extend an existing lease term, or a termination option to end a lease early are exercisable at our sole discretion. We evaluate such leases to determine if we are reasonably certain to exercise the option. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees. In determining the present value of lease payments, we use the implicit borrowing rate in the lease, if available. In cases where a lease does not provide an implicit borrowing rate, we use the incremental borrowing rate based on based on available information at the commencement date. As of March 31, 2019 none of our existing leases provided an implicit borrowing rate. We give consideration to our debt issuances as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rate. Additionally, we performed an entity-level financial assessment along with risk assessment by country or jurisdiction in the determination of our incremental borrowing rate. We will update our financial and risk assessments periodically. We will reassess lease classification and / or remeasure the lease liability in the event of the following: changes in assessment of renewal, termination or purchase option based on triggering events within our control, change in amounts probable of being owed under a residual guarantee, or contingency resolution. The Balance Sheet impact at March 31, 2019 is as follows (in thousands):
The components of lease costs are as follows (in thousands):
The estimated future minimum lease payments only include obligations for which we are reasonably certain to exercise our renewal option. Such future payments are as follows (in thousands):
The weighted average remaining lease term and discount rates are as follows:
Supplemental cash flow information related to leases are as follows (in thousands):
As of March 31, 2019, we do not have any material operating or finance leases that have not yet commenced and we have not entered into any transactions with a related party. Operating Lease Commitments Disclosure under ASC 840 Minimum rental commitments due under non-cancelable operating leases, primarily for office and warehouse facilities, were as follows at December 31, 2018 (in thousands):
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Leases | Leases We lease certain office spaces, warehouses, vehicles and equipment. Leases with an initial term of 12-months or less have not been capitalized on the balance sheet. We recognize lease expense associated with these short-term leases on a straight-line basis over the lease term. For lease agreements entered into after the adoption of ASC 842, we combine lease and non-lease fixed components for real estate, vehicles and equipment leases. We do not combine lease and non-lease components for information technology leases. Variable lease costs were not included within the measurement of the lease liability as they were entirely variable or the difference between the portion captured within the lease liability and the actual cost will be expensed as incurred. Variable costs are contractually obligated and relate primarily to common area maintenance and taxes, which were not material to the financial statements. We elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward the historical lease classification, not to reassess if existing contracts are or contain leases, and not to reassess indirect costs for existing leases. We have elected not to recast the comparable periods and rather used the effective adoption date of the standard as the date of initial application. Leases which contain a renewal option to extend an existing lease term, or a termination option to end a lease early are exercisable at our sole discretion. We evaluate such leases to determine if we are reasonably certain to exercise the option. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees. In determining the present value of lease payments, we use the implicit borrowing rate in the lease, if available. In cases where a lease does not provide an implicit borrowing rate, we use the incremental borrowing rate based on based on available information at the commencement date. As of March 31, 2019 none of our existing leases provided an implicit borrowing rate. We give consideration to our debt issuances as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rate. Additionally, we performed an entity-level financial assessment along with risk assessment by country or jurisdiction in the determination of our incremental borrowing rate. We will update our financial and risk assessments periodically. We will reassess lease classification and / or remeasure the lease liability in the event of the following: changes in assessment of renewal, termination or purchase option based on triggering events within our control, change in amounts probable of being owed under a residual guarantee, or contingency resolution. The Balance Sheet impact at March 31, 2019 is as follows (in thousands):
The components of lease costs are as follows (in thousands):
The estimated future minimum lease payments only include obligations for which we are reasonably certain to exercise our renewal option. Such future payments are as follows (in thousands):
The weighted average remaining lease term and discount rates are as follows:
Supplemental cash flow information related to leases are as follows (in thousands):
As of March 31, 2019, we do not have any material operating or finance leases that have not yet commenced and we have not entered into any transactions with a related party. Operating Lease Commitments Disclosure under ASC 840 Minimum rental commitments due under non-cancelable operating leases, primarily for office and warehouse facilities, were as follows at December 31, 2018 (in thousands):
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Inventories | Inventories Inventories consisted of the following (in thousands):
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Special Charges/Recoveries |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Charges/Recoveries | Special & Restructuring (Recoveries) Charges, net Special and Restructuring (Recoveries) Charges, net Special and restructuring charges, net consist of restructuring costs (including costs to exit a product line or program) as well as certain special charges such as significant litigation settlements and other transactions (charges or recoveries) that are described below. All items described below are recorded in Special and restructuring (recoveries) charges, net on our consolidated statements of loss. Certain other special and restructuring charges such as inventory related items may be recorded in cost of revenues given the nature of the item. The table below (in thousands) summarizes the amounts recorded within the special and restructuring (recoveries) charges, net line item on the condensed consolidated statements of loss for the three months ended March 31, 2019 and April 1, 2018:
Special (Recoveries) Charges, net The table below (in thousands) outlines the special (recoveries) charges, net recorded for the three months ended March 31, 2019:
Reliability Services Divestiture: In January 2019, the Company sold its Reliability Services business. The Company recorded a $10.3 million gain during the first quarter of 2019 in connection with the divestiture. Reliability Services 2019 Operating Expenses: The Company classified the 2019 operating expenses of the Reliability Services business as special given the business was held for sale as of 2018 and was sold in January 2019. Rosscor Divestiture: On November 6, 2018, we announced the divestiture of our Rosscor B.V. and SES International B.V. subsidiaries (the “Delden Business”) for a nominal amount. The Delden Business was our Netherlands-based fluid handling skids and systems business, primarily for the Oil and Gas end market. During the first quarter of 2019 we recorded a $0.2 million charge related to the divestiture. The table below (in thousands) outlines the special charges (recoveries), net recorded for the three months ended April 1, 2018:
Acquisition related charges:
Restructuring Charges (Recoveries), net The tables below (in thousands) outline the charges (or any recoveries) associated with restructuring actions recorded for the three months ended March 31, 2019 and April 1, 2018. A description of the restructuring actions is provided in the section titled "Restructuring Programs Summary" below.
We expect to make payment or settle the majority of the restructuring charges accrued as of March 31, 2019 during the second half of 2019.
Restructuring Programs Summary As specific restructuring programs are announced, the amounts associated with that particular action may be recorded in periods other than when announced to comply with the applicable accounting rules. For example, total cost associated with 2018 Actions (as discussed below) will be recorded in 2018 and 2019. The amounts shown below reflect the total cost for that restructuring program. During 2018, we initiated certain restructuring activities, under which we continued to simplify our business ("2018 Actions"). Under these restructurings, we reduced expenses, primarily through reductions in force and closing a number of smaller facilities. Charges associated with the 2018 Actions were recorded during 2018 and 2019.
Additional Restructuring Charges In conjunction with the restructuring actions noted above, we incur certain costs, primarily related to inventory, that are recorded in cost of revenues instead of special and restructuring charges. These types of inventory restructuring costs typically relate to the discontinuance of a product line or manufacturing inefficiencies directly related to the restructuring action. During the quarter ended March 31, 2019, we recorded $2.8 million of inventory related restructuring charges within our Energy segment for restructuring actions with our Distributed Valves business. Also during the first quarter of 2019, we recorded $0.3 million of inventory related restructuring charges related to the January 2019 results of the Reliability Services business. During the three months ended April 1, 2018, we recorded $0.5 million of inventory related restructuring charges within our Energy segment for restructuring actions with our Reliability Services business. |
Goodwill And Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets | Goodwill and Intangibles, net The following table shows goodwill by segment as of December 31, 2018 and March 31, 2019 (in thousands):
The table below presents gross intangible assets and the related accumulated amortization as of March 31, 2019 (in thousands):
The table below presents estimated remaining amortization expense for intangible assets recorded as of March 31, 2019 (in thousands):
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Our Chief Operating Decision Maker evaluates segment operating performance using segment operating income. Segment operating income is defined as GAAP operating income excluding intangible amortization and amortization of fair value step-ups of inventory and fixed assets from acquisitions completed subsequent to December 31, 2011, the impact of restructuring related inventory write-offs, impairment charges and special charges or gains. The Company also refers to this measure as adjusted operating income. The Company uses this measure because it helps management understand and evaluate the segments’ core operating results and facilitate comparison of performance for determining incentive compensation achievement. We organize our reporting structure into three segments: Energy, Aerospace & Defense and Industrial. The following table presents certain reportable segment information (in thousands):
The total assets for each reportable segment have been reported as the Identifiable Assets for that segment, including inter-segment intercompany receivables, payables and investments in other CIRCOR companies. Identifiable assets reported in Corporate include both corporate assets, such as cash, deferred taxes, prepaid and other assets, fixed assets, as well as the elimination of all inter-segment intercompany assets. The elimination of intercompany assets results in negative amounts reported in Corporate for Identifiable Assets. Corporate Identifiable Assets excluding intercompany assets were $20.9 million and $17.0 million as of March 31, 2019 and April 1, 2018, respectively. |
Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instrument Fair Value The company utilizes fair value measurement guidance prescribed by accounting standards to value its financial instruments. The guidance establishes a fair value hierarchy based on the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The fair value measurements of the Company's financial instruments as of March 31, 2019 are summarized in the table below:
The carrying amounts of cash and cash equivalents, trade receivables and trade payables approximate fair value because of the short maturity of these financial instruments. Cash equivalents are carried at cost which approximates fair value at the balance sheet date and is a Level 1 financial instrument. As of March 31, 2019 and December 31, 2018, the outstanding balance of the Company’s debt approximated fair value based on current rates available to the Company for debt of the same maturity and is a Level 2 financial instrument. Effective April 12, 2018, the Company entered into an interest rate swap pursuant to an International Swaps and Derivatives Association ("ISDA") Master Agreement with Citizens Bank, National Association ("interest rate swap"). The four-year interest rate swap has a fixed notional value of $400.0 million with a 1% LIBOR floor and a maturity date of April 12, 2022. The fixed rate of interest paid by the Company is comprised of our current credit spread of 350 basis points plus 2.6475% for a total interest rate of 6.1475%. The ISDA Master Agreement, together with its related schedules, contain customary representations, warranties and covenants. This hedging agreement was entered into to mitigate the interest rate risk inherent in the Company’s variable rate debt and is not for speculative trading purposes. The Company has designated the interest rate swap as a qualifying hedging instrument and is treating it as a cash flow hedge for accounting purposes pursuant to ASC 815, Derivatives and Hedging. The net fair value of the interest rate swap was $4.1 million and is recorded in other long-term liabilities of $3.8 million, accrued expenses and other current liabilities of $0.9 million, and long-term deferred tax asset of $0.6 million on our condensed consolidated balance sheet as of March 31, 2019. The unrealized losses recognized in other comprehensive income (loss) were $2.1 million for the three months ended March 31, 2019. The realized loss of $0.2 million was reclassified from other comprehensive income (loss) to interest expense as interest expense was accrued on the swap during the three months ended March 31, 2019. Amounts expected to be reclassified from other comprehensive income into interest expense in the coming 12 months is a loss of $(1.0) million. Interest expense (including the effects of the cash flow hedges) related to the portion of the Company's term loan subject to the aforementioned interest-rate swap agreement was $6.1 million for the three months ended March 31, 2019. |
Guarantees And Indemnification Obligations |
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Guarantees And Indemnification Obligations [Abstract] | |||||||||||||||||||||||||||||
Guarantees And Indemnification Obligations | 10) Guarantees and Indemnification Obligations As permitted under Delaware law, we have agreements whereby we indemnify certain of our officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited. However, we have directors’ and officers’ liability insurance policies that insure us with respect to certain events covered under the policies and should enable us to recover a portion of any future amounts paid under the indemnification agreements. We have no liabilities recorded from those agreements as of March 31, 2019. We record provisions for the estimated cost of product warranties, primarily from historical information, at the time product revenue is recognized. We also record provisions with respect to any significant individual warranty issues as they arise. While we engage in extensive product quality programs and processes, our warranty obligation is affected by product failure rates, utilization levels, material usage, service delivery costs incurred in correcting a product failure, and supplier warranties on parts delivered to us. Should actual product failure rates, utilization levels, material usage, service delivery costs or supplier warranties on parts differ from our estimates, revisions to the estimated warranty liability would be required. The following table sets forth information related to our product warranty reserves for the three months ended March 31, 2019 (in thousands):
Warranty obligations increased $0.1 million from $4.1 million as of December 31, 2018 to $4.1 million as of March 31, 2019, primarily driven by net claims settled and quarterly provisions within our Industrial and Energy operating segments. |
Contingencies And Commitments |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||
Contingencies And Commitments | (11) Commitments and Contingencies We are subject to various legal proceedings and claims pertaining to matters such as product liability or contract disputes, including issues arising under certain customer contracts with aerospace and defense customers. We are also subject to other proceedings and governmental inquiries, inspections, audits or investigations pertaining to issues such as tax matters, patents and trademarks, pricing, business practices, governmental regulations, employment and other matters. Although the results of litigation and claims cannot be predicted with certainty, we expect that the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, individually or in the aggregate, on our business, financial condition, results of operations or liquidity. On February 21, 2018, the Company entered into a mediated settlement regarding a wage and hour action in California by a former employee. In October 2016, the plaintiff alleged non-compliance with California State labor law, including missed or late meal breaks, for hourly employees of CIRCOR Aerospace, Inc. in Corona, California. The total settlement amount of $2.4 million was initially recorded as a liability as of December 31, 2017. This settlement resolves all wage/hour claims by all potentially affected employees through the settlement date and was approved by the California Superior Court during 2018. The Company expects to make payment during the third quarter of 2019. Asbestos-related product liability claims continue to be filed against two of our subsidiaries: Spence Engineering Company, Inc. (“Spence”), the stock of which we acquired in 1984; and CIRCOR Instrumentation Technologies, Inc. (f/k/a Hoke, Inc.) (“Hoke”), the stock of which we acquired in 1998. Due to the nature of the products supplied by these entities, the markets they serve and our historical experience in resolving these claims, we do not expect that these asbestos-related claims will have a material adverse effect on the financial condition, results of operations or liquidity of the Company. Standby Letters of Credit We execute standby letters of credit, which include bid bonds and performance bonds, in the normal course of business to ensure our performance or payments to third parties. The aggregate notional value of these instruments was $74.4 million at March 31, 2019. We believe that the likelihood of demand for a significant payment relating to the outstanding instruments is remote. These instruments generally have expiration dates ranging from less than 1 month to 5 years from March 31, 2019. The following table contains information related to standby letters of credit instruments outstanding as of March 31, 2019 (in thousands):
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Retirement Plans |
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Retirement Benefits, Description [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans | (12) Retirement Plans The following table sets forth the components of total net periodic benefit cost (income) of the Company’s defined benefit pension plans and other post-retirement employee benefit plans (in thousands):
The periodic benefit service costs are included in the selling, general, and administrative costs, while the remaining net periodic benefit costs are included in other (income) expense, net in our condensed consolidated statements of loss for the three months ended March 31, 2019 and April 1, 2018, respectively. There were no employer contributions to the Company's U.S. and non- U.S. based pension plans during the three months ended March 31, 2019. |
Income Taxes |
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Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (13) Income Taxes As of March 31, 2019 and December 31, 2018, we had $0.6 million and $0.6 million of unrecognized tax benefits, respectively, of which $0.5 million and $0.5 million, respectively, would affect our effective tax rate if recognized in any future period. The Company files income tax returns in U.S. federal, state and local jurisdictions and in foreign jurisdictions. The Company is no longer subject to examination by the Internal Revenue Service (the "IRS") for years prior to 2015 and is no longer subject to examination by the tax authorities in foreign and state jurisdictions prior to 2006. The Company is currently under examination for income tax filings in various foreign jurisdictions. The Company has a net U.S. deferred tax asset and a net foreign deferred tax liability. Due to uncertainties related to our ability to utilize certain foreign deferred income tax assets, we maintained a total valuation allowance of $17.6 million at March 31, 2019 and $17.6 million at December 31, 2018. The valuation allowance is based on estimates of income in each of the jurisdictions in which we operate and the period over which our deferred tax assets will be recoverable. If future results of operations exceed our current expectations, our existing tax valuation allowances may be adjusted, resulting in future tax benefits. Alternatively, if future results of operations are less than expected, future assessments may result in a determination that some or all of the deferred tax assets are not realizable. Consequently, we may need to establish additional tax valuation allowances for all or a portion of the deferred tax assets, which may have a material adverse effect on our business, results of operations and financial condition. |
Share-Based Compensation |
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Share-Based Compensation | (14) Share-Based Compensation As of March 31, 2019, there were 732,879 stock options and 438,479 Restricted Stock Unit Awards ("RSU Awards") and Restricted Stock Unit Management Stock Plan Awards ("RSU MSPs") outstanding. In addition, there were 69,299 shares available for grant under the 2014 Stock Option and Incentive Plan (the "2014 Plan") as of March 31, 2019. During the three months ended March 31, 2019, we granted 153,726 stock options compared with 127,704 stock options granted during the three months ended April 1, 2018. The average fair value of stock options granted during the first three months of 2019 and 2018 was $11.84 and $14.68 per share, respectively, and was estimated using the following weighted-average assumptions:
For additional information regarding the historical issuance of stock options, refer to Note 12 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018. During the three months ended March 31, 2019 and April 1, 2018, we granted 154,903 and 143,198 RSU Awards with approximate fair values of $33.07 and $42.61 per RSU Award, respectively. During the first three months of 2019 and 2018, we granted performance-based RSU Awards as part of the overall mix of RSU Awards. In 2019, these performance-based RSU Awards include metrics for achieving Adjusted Operating Margin and Adjusted Free Cash Flow with target payouts ranging from 0% to 200%. In 2018, the performance-based RSU Awards include metrics for achieving Return on Invested Capital and Adjusted Operating Margin with the same target payout ranges. Of the 154,903 RSU Awards granted during the three months ended March 31, 2019, 26,475 are performance-based RSU Awards. This compares to 48,080 performance-based RSU Awards granted during the three months ended April 1, 2018. RSU MSPs totaling 56,379 and 34,937 with per unit discount amounts representing fair values of $11.10 and $14.06 per share were granted during the three months ended March 31, 2019 and April 1, 2018, respectively. Compensation expense related to our share-based plans for the three months ended March 31, 2019 and April 1, 2018 was $1.4 million and $1.3 million, respectively. Compensation expense for both periods was recorded as selling, general and administrative expenses. As of March 31, 2019, there was $13.5 million of total unrecognized compensation costs related to our outstanding share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 2.4 years. The weighted average contractual term for stock options outstanding and options exercisable as of March 31, 2019 was 4.9 years and 4.0 years, respectively. The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2019 was $0.0 million and the aggregate intrinsic value of stock options outstanding and options exercisable as of March 31, 2019 was $0.0 million and $0.0 million, respectively. The aggregate intrinsic value of RSU Awards settled during the three months ended March 31, 2019 was $0.6 million and the aggregate intrinsic value of RSU Awards outstanding and RSU Awards vested and deferred as of March 31, 2019 was $10.6 million and $0.2 million, respectively. The aggregate intrinsic value of RSU MSPs settled during the three months ended March 31, 2019 was $0.1 million and the aggregate intrinsic value of RSU MSPs outstanding and RSU MSPs vested and deferred as of March 31, 2019 was $0.7 million and less than $0.1 million, respectively. International participants are issued Cash Settled Stock Unit Awards. As of March 31, 2019, there were 67,109 Cash Settled Stock Unit Awards outstanding compared to 50,907 as of December 31, 2018. During the three months ended March 31, 2019, the aggregate cash used to settle Cash Settled Stock Unit Awards was $0.5 million. As of March 31, 2019, we had $0.4 million of accrued expenses in other non-current liabilities associated with these Cash Settled Stock Unit Awards compared with $0.6 million as of December 31, 2018. Cash Settled Stock Unit Award related compensation costs for the three months ended March 31, 2019 and April 1, 2018 was $0.4 million and $0.1 million, respectively, and was recorded as selling, general, and administrative expenses. |
Accumulated Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss, net of tax, which is reported as a component of shareholders' equity, for the three months ended March 31, 2019 (in thousands):
During the first quarter of 2019, an immaterial error was identified in the Company's calculation of currency translation adjustments related to goodwill, intangible assets and property, plant and equipment acquired in the Fluid Handling acquisition. This error impacts other comprehensive income. Specifically, other comprehensive income (loss) was overstated by $5.4 and $2.2 million, respectively, for the first quarter and fiscal 2018 and was understated by $2.2 million for first quarter of 2019. The Company has determined that these adjustments were not material to the current or prior periods, or the forecasted 2019 results. The quarterly impact (in $ millions) in 2018 was:
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Earnings Per Common Share |
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Earnings Per Common Share | (16) Earnings (Loss) Per Common Share ("EPS")
Stock options, RSU Awards, and RSU MSPs covering 901,098 and 126,926 shares of common stock, for the three months ended March 31, 2019 and April 1, 2018, respectively, were not included in the computation of diluted EPS because their effect would be anti-dilutive. |
Summary Of Significant Accounting Policies Summary Of Significant Accounting Policies (Tables) |
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Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Cumulative Effect of Changes for Adoption of Revenue Standard | (2) Summary of Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements for the three months ended March 31, 2019 are consistent with those discussed in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2018, except as updated below with respect to newly adopted accounting standards. New Accounting Standards - Adopted On January 1, 2019 we adopted the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases, and all related amendments ("ASC 842"), specifically, ASU 2018-11, Leases: Targeted Improvements, under the modified retrospective approach. The amendment provides us with transition relief, as we elected not to recast the comparable periods and rather used the effective adoption date of the standard as the date of initial application. Comparable periods and the related disclosures are reflected herein under ASC 840. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional Right-of-Use ("ROU") assets and lease liabilities of $23.8 million and $24.1 million respectively, as of January 1, 2019. ROU assets represent our right to use an underlying asset for the lease term and the lease liabilities represent our obligation to make lease payments arising from the lease. The difference between the additional lease assets and lease liabilities, was recorded as an adjustment to deferred rent and prepaid rent. The standard did not materially impact our consolidated net earnings. See Note 4, Leases for further information. |
Revenue Recognition (Tables) |
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Disaggregation of Revenue |
Contract Balances. The Company’s contract assets and contract liabilities balances as of December 31, 2018 and March 31, 2019, respectively, are as follows (in thousands):
Trade accounts receivable, net increased by $4.9 million as of March 31, 2019, primarily due to the timing of cash collections during the three months ended March 31, 2019. Contract assets as of March 31, 2019 remained fairly consistent with December 31, 2018, an increase of $0.3 million. Contract liabilities, excluding divestiture, decreased by $12.0 million, or 25%, to $36.4 million as of March 31, 2019, primarily driven by revenue recognized over time during the three months ended March 31, 2019 within our Refinery Valves (-9%) and U.S. Defense Business (-5%). |
Leases (Tables) |
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Balance Sheet Impact of Leases | The Balance Sheet impact at March 31, 2019 is as follows (in thousands):
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Components of Lease Costs | The components of lease costs are as follows (in thousands):
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Estimated Future Minimum Finance Lease Payments | The estimated future minimum lease payments only include obligations for which we are reasonably certain to exercise our renewal option. Such future payments are as follows (in thousands):
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Estimated Future Minimum Operating Lease Payments | The estimated future minimum lease payments only include obligations for which we are reasonably certain to exercise our renewal option. Such future payments are as follows (in thousands):
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Schedule of Weighted Average Remaining Lease Term and Discount Rates | The weighted average remaining lease term and discount rates are as follows:
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Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases are as follows (in thousands):
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Schedule of Future Minimum Rental Payments for Operating Leases | Operating Lease Commitments Disclosure under ASC 840 Minimum rental commitments due under non-cancelable operating leases, primarily for office and warehouse facilities, were as follows at December 31, 2018 (in thousands):
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Inventories (Tables) |
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Components Of Inventory | Inventories consisted of the following (in thousands):
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Special Charges/Recoveries (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The table below (in thousands) summarizes the amounts recorded within the special and restructuring (recoveries) charges, net line item on the condensed consolidated statements of loss for the three months ended March 31, 2019 and April 1, 2018:
The tables below (in thousands) outline the charges (or any recoveries) associated with restructuring actions recorded for the three months ended March 31, 2019 and April 1, 2018. A description of the restructuring actions is provided in the section titled "Restructuring Programs Summary" below.
he table below (in thousands) outlines the special charges (recoveries), net recorded for the three months ended April 1, 2018:
During 2018, we initiated certain restructuring activities, under which we continued to simplify our business ("2018 Actions"). Under these restructurings, we reduced expenses, primarily through reductions in force and closing a number of smaller facilities. Charges associated with the 2018 Actions were recorded during 2018 and 2019.
The table below (in thousands) outlines the special (recoveries) charges, net recorded for the three months ended March 31, 2019:
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Goodwill And Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, By Segment | The following table shows goodwill by segment as of December 31, 2018 and March 31, 2019 (in thousands):
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Gross Intangible Assets And Related Accumulated Amortization | The table below presents gross intangible assets and the related accumulated amortization as of March 31, 2019 (in thousands):
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Estimated Remaining Amortization Expense For Intangible Assets | The table below presents estimated remaining amortization expense for intangible assets recorded as of March 31, 2019 (in thousands):
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | We organize our reporting structure into three segments: Energy, Aerospace & Defense and Industrial. The following table presents certain reportable segment information (in thousands):
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Guarantees And Indemnification Obligations (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||
Guarantees And Indemnification Obligations [Abstract] | |||||||||||||||||||||||||||||
Product Warranty Reserves | The following table sets forth information related to our product warranty reserves for the three months ended March 31, 2019 (in thousands):
Warranty obligations increased $0.1 million from $4.1 million as of December 31, 2018 to $4.1 million as of March 31, 2019, primarily driven by net claims settled and quarterly provisions within our Industrial and Energy operating segments. |
Contingencies And Commitments (Tables) |
3 Months Ended | ||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||
Standby Letters Of Credit Instruments | The following table contains information related to standby letters of credit instruments outstanding as of March 31, 2019 (in thousands):
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Retirement Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits, Description [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Net Pension Benefit Expense | The following table sets forth the components of total net periodic benefit cost (income) of the Company’s defined benefit pension plans and other post-retirement employee benefit plans (in thousands):
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Share-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The average fair value of stock options granted during the first three months of 2019 and 2018 was $11.84 and $14.68 per share, respectively, and was estimated using the following weighted-average assumptions:
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Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | (15) Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss, net of tax, which is reported as a component of shareholders' equity, for the three months ended March 31, 2019 (in thousands):
During the first quarter of 2019, an immaterial error was identified in the Company's calculation of currency translation adjustments related to goodwill, intangible assets and property, plant and equipment acquired in the Fluid Handling acquisition. This error impacts other comprehensive income. Specifically, other comprehensive income (loss) was overstated by $5.4 and $2.2 million, respectively, for the first quarter and fiscal 2018 and was understated by $2.2 million for first quarter of 2019. The Company has determined that these adjustments were not material to the current or prior periods, or the forecasted 2019 results. The quarterly impact (in $ millions) in 2018 was:
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Earnings Per Common Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Earnings Per Share, Basic And Diluted |
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Summary of Sign Accounting Policies - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease liabilities | $ 25,113 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Leases, right-of-use asset | $ 23,800 | |
Lease liabilities | $ 24,100 |
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
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Mar. 31, 2019 |
Apr. 01, 2018 |
Dec. 31, 2018 |
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Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Increase (Decrease) in Accounts Receivable | $ 8,635 | $ (22,038) | |
Trade accounts receivable, less allowance for doubtful accounts of $5,048 and $6,735 at March 31, 2019 and December 31, 2018, respectively | $ 183,552 | ||
Total backlog | 521,000 | ||
Contract with Customer, Liability | $ 36,400 | 48,325 | |
Contract with Customer, Asset, Net | $ 61,618 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-02 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, percentage | 7900.00% | ||
Remaining performance obligation, expected period of recognition | 9 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, percentage | 1800.00% | ||
Remaining performance obligation, expected period of recognition | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, percentage | 300.00% | ||
Remaining performance obligation, expected period of recognition | |||
Accounting Standards Update 2014-09 [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Increase (Decrease) in Accounts and Other Receivables | $ 4,948 | ||
Trade accounts receivable, less allowance for doubtful accounts of $5,048 and $6,735 at March 31, 2019 and December 31, 2018, respectively | 188,500 | ||
Increase in contract liabilities | 11,951 | ||
Contract with Customer, Liability | 36,374 | ||
Increase/(Decrease) | 271 | ||
Contract with Customer, Asset, Net | $ 61,889 |
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
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Mar. 31, 2019 |
Apr. 01, 2018 |
Dec. 31, 2018 |
|
Disaggregation of Revenue [Line Items] | |||
Trade accounts receivable, less allowance for doubtful accounts of $5,048 and $6,735 at March 31, 2019 and December 31, 2018, respectively | $ 183,552 | ||
Revenue by major product line | $ 270,395 | $ 275,580 | |
Contract with Customer, Asset, Net | 61,618 | ||
Contract with Customer, Liability | 36,400 | $ 48,325 | |
Energy Segment | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 98,417 | 99,972 | |
Energy Segment | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 34,452 | 19,898 | |
Energy Segment | North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 52,957 | 64,467 | |
Energy Segment | Total | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 11,008 | 15,607 | |
Energy Segment | Oil & Gas - Upstream, Midstream & Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 45,665 | 47,885 | |
Energy Segment | Oil & Gas - Downstream | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 52,752 | 52,087 | |
Aerospace & Defense Segment | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 61,240 | 58,477 | |
Aerospace & Defense Segment | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 17,732 | 15,396 | |
Aerospace & Defense Segment | North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 37,393 | 37,749 | |
Aerospace & Defense Segment | Total | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 6,115 | 5,332 | |
Aerospace & Defense Segment | Commercial Aerospace & Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 28,706 | 26,657 | |
Aerospace & Defense Segment | Defense | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 32,534 | 31,820 | |
Industrial Segment | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 110,738 | 117,131 | |
Industrial Segment | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 54,492 | 60,679 | |
Industrial Segment | North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 34,547 | 32,250 | |
Industrial Segment | Total | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 21,699 | 24,202 | |
Industrial Segment | Valves | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 28,532 | 27,679 | |
Industrial Segment | Pumps | |||
Disaggregation of Revenue [Line Items] | |||
Revenue by major product line | 82,206 | $ 89,452 | |
Accounting Standards Update 2014-09 [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Trade accounts receivable, less allowance for doubtful accounts of $5,048 and $6,735 at March 31, 2019 and December 31, 2018, respectively | 188,500 | ||
Increase (Decrease) in Accounts and Other Receivables | 4,948 | ||
Contract with Customer, Asset, Net | 61,889 | ||
ContractwithCustomerAssetPeriodIncreaseDecrease | 271 | ||
Contract with Customer, Liability | 36,374 | ||
Contract with Customer, Liability, Period Increase (Decrease) | $ (11,951) |
Leases - Balance Sheet Impact of Leases (Details) |
Mar. 31, 2019
USD ($)
|
---|---|
Operating Lease, Assets [Abstract] | |
Gross ROU Assets | $ 25,102,000 |
Less: Accumulated Amortization | 1,298,000 |
Net ROU Assets | 23,804,000 |
Finance Lease, Assets [Abstract] | |
Gross ROU Assets | 1,165,000 |
Less: Accumulated Amortization | 9,000 |
Net ROU Assets | 1,156,000 |
Operating Lease, Liabilities [Abstract] | |
Current | 5,327,000 |
Noncurrent | 18,560,000 |
Total Lease Liabilities | 23,887,000 |
Finance Lease, Liabilities [Abstract] | |
Current | 178,000 |
Noncurrent | 1,048,000 |
Total Lease Liabilities | $ 1,226,000 |
Leases - Components of Lease Costs (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Leases [Abstract] | |
Operating Lease, Liability | $ 23,887,000 |
Operating lease cost | 1,880,000 |
Finance lease cost | |
Amortization of leased assets | 3,000 |
Interest on lease liabilities | 0 |
Total finance lease costs | 3,000 |
Total lease cost | 1,883,000 |
Short-term lease cost | 100,000 |
Variable lease cost | $ 100,000 |
Leases - Estimated Future Minimum Operating and Finance Lease Payments (Details) |
Mar. 31, 2019
USD ($)
|
---|---|
Operating Leases | |
2019 | $ 5,404,000 |
2020 | 4,996,000 |
2021 | 4,291,000 |
2022 | 3,539,000 |
2023 | 2,962,000 |
After 2023 | 8,225,000 |
Less: Interest | (5,530,000) |
Present value of lease liabilities | 23,887,000 |
Finance Leases | |
2019 | 137,000 |
2020 | 163,000 |
2021 | 161,000 |
2022 | 149,000 |
2023 | 149,000 |
After 2023 | 473,000 |
Less: Interest | (6,000) |
Present value of lease liabilities | 1,226,000 |
Total | |
2019 | 5,541,000 |
2020 | 5,159,000 |
2021 | 4,452,000 |
2022 | 3,688,000 |
2023 | 3,111,000 |
After 2023 | 8,698,000 |
Less: Interest | (5,536,000) |
Present value of lease liabilities | $ 25,113,000 |
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rates (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term (years) | 6 years 3 months 18 days |
Finance lease, weighted average remaining lease term (years) | 7 years 8 months 12 days |
Operating lease, weighted average discount rate, percent | 5.70% |
Finance lease, weighted average discount rate, percent | 2.00% |
Leases - Supplemental Cash Flow Information Related to Leases (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Operating Activities | |
Noncash lease expense on operating ROU assets | $ (23,762,000) |
Amortization expense on finance ROU assets | 3,000 |
Change in total operating lease liabilities | 23,846,000 |
Operating Lease, Payments | (93,000) |
Total Operating Activities | (6,000) |
Financing Activities | |
Principal paid on finance lease liabilities | (8,000) |
Supplemental | |
Interest Paid on finance lease liabilities | $ 0 |
Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
2019 | $ 9,481 |
2020 | 6,303 |
2021 | 4,573 |
2022 | 3,345 |
2023 | 2,540 |
Thereafter | $ 6,032 |
Inventories (Components Of Inventory) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Inventory, Net [Abstract] | ||
Raw materials | $ 71,201 | $ 69,910 |
Work in process | 115,655 | 116,088 |
Finished goods | 31,135 | 31,380 |
Inventories | $ 217,991 | $ 217,378 |
Special Charges/Recoveries (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 01, 2018 |
|
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | $ 863 | $ 9,615 |
Total special charges, net | (8,679) | 2,831 |
Special charges paid | (106) | (4,897) |
Restructuring Reserve End of Period | 757 | |
Employee Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 532 | 8,052 |
Energy [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 523 | 8,324 |
Total special charges, net | (8,832) | 376 |
Energy [Member] | Employee Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 262 | 6,843 |
Corporate [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 0 | 0 |
Total special charges, net | 0 | 2,455 |
Corporate [Member] | Employee Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | $ 0 | $ 0 |
Special Charges/Recoveries Charges Incurred to Date (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 |
Apr. 01, 2018 |
Jul. 01, 2018 |
Oct. 01, 2017 |
Apr. 02, 2017 |
|
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 863 | $ 9,615 | |||
Special Charges, Net | 863 | 9,615 | |||
Total special charges, net | (8,679) | 2,831 | |||
Restructuring and Related Cost, Incurred Cost | (7,816) | 12,446 | |||
Restructuring Reserve | 757 | $ 982 | $ 6,304 | $ 1,586 | |
Payments for Restructuring | (106) | (4,897) | |||
Two Thousand and Eighteen Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred to date | (12,599) | ||||
Divestiture [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 2,455 | ||||
Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 532 | 8,052 | |||
Employee Severance [Member] | Two Thousand and Eighteen Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred to date | (10,081) | ||||
Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Recoveries of Restructuring Charges | 331 | 1,563 | |||
Facility Closing [Member] | Two Thousand and Eighteen Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred to date | (2,518) | ||||
Energy [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 523 | 8,324 | |||
Acquisition related charges | 376 | ||||
Total special charges, net | (8,832) | 376 | |||
Energy [Member] | Two Thousand and Eighteen Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred to date | (10,341) | ||||
Energy [Member] | Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 262 | 6,843 | |||
Energy [Member] | Employee Severance [Member] | Two Thousand and Eighteen Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred to date | (7,893) | ||||
Energy [Member] | Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Recoveries of Restructuring Charges | 261 | (1,481) | |||
Energy [Member] | Facility Closing [Member] | Two Thousand and Eighteen Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred to date | (2,448) | ||||
Advanced Flow Solutions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 68 | 82 | |||
Total special charges, net | 0 | ||||
Advanced Flow Solutions [Member] | Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | (2) | 0 | |||
Advanced Flow Solutions [Member] | Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Recoveries of Restructuring Charges | 70 | (82) | |||
Total Aerospace and Defense | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 0 | ||||
Total Aerospace and Defense | Two Thousand and Eighteen Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred to date | (450) | ||||
Total Aerospace and Defense | Divestiture [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | ||||
Total Aerospace and Defense | Employee Severance [Member] | Two Thousand and Eighteen Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred to date | (380) | ||||
Total Aerospace and Defense | Facility Closing [Member] | Two Thousand and Eighteen Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred to date | (70) | ||||
Total Industrial | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 272 | 1,209 | |||
Total special charges, net | 153 | 0 | |||
Total Industrial | Two Thousand and Eighteen Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred to date | (1,808) | ||||
Total Industrial | Divestiture [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | ||||
Total Industrial | Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 272 | 1,209 | |||
Total Industrial | Employee Severance [Member] | Two Thousand and Eighteen Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred to date | (1,808) | ||||
Total Industrial | Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Recoveries of Restructuring Charges | 0 | 0 | |||
Total Industrial | Facility Closing [Member] | Two Thousand and Eighteen Actions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred to date | 0 | ||||
Corporate Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 0 | |||
Total special charges, net | 0 | 2,455 | |||
Corporate Segment [Member] | Divestiture [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 2,455 | ||||
Corporate Segment [Member] | Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 0 | |||
Corporate Segment [Member] | Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Recoveries of Restructuring Charges | 0 | $ 0 | |||
Reliability Services divestiture | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | (10,282) | ||||
Reliability Services divestiture | Energy [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | (10,282) | ||||
Reliability Services divestiture | Total Aerospace and Defense | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 0 | ||||
Reliability Services divestiture | Total Industrial | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 0 | ||||
Reliability Services divestiture | Corporate Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 0 | ||||
Reliability Services 2019 operating expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 1,450 | ||||
Reliability Services 2019 operating expenses | Energy [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 1,450 | ||||
Reliability Services 2019 operating expenses | Total Aerospace and Defense | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 0 | ||||
Reliability Services 2019 operating expenses | Total Industrial | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 0 | ||||
Reliability Services 2019 operating expenses | Corporate Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 0 | ||||
Rosscor divestiture related charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 153 | ||||
Rosscor divestiture related charges | Energy [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 0 | ||||
Rosscor divestiture related charges | Total Aerospace and Defense | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 0 | ||||
Rosscor divestiture related charges | Total Industrial | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | 153 | ||||
Rosscor divestiture related charges | Corporate Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total special charges, net | $ 0 |
Special Charges Narrative (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2019 |
Mar. 31, 2019 |
Apr. 01, 2018 |
Dec. 31, 2018 |
|
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Inventories | $ 217,991 | $ 217,378 | ||
Restructuring Charges | 863 | $ 9,615 | ||
Special and restructuring (recoveries) charges, net | (8,679) | 2,831 | ||
Industrial Segment | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring Charges | 272 | 1,209 | ||
Special and restructuring (recoveries) charges, net | 153 | 0 | ||
Energy [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Acquisition related charges | 376 | |||
Restructuring Charges | 523 | 8,324 | ||
Special and restructuring (recoveries) charges, net | (8,832) | 376 | ||
Critical Flow Solutions [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Business Combination, Acquisition Related Costs | 2,500 | |||
Aerospace & Defense [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Special and restructuring (recoveries) charges, net | 0 | |||
Advanced Flow Solutions [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring Charges | 68 | 82 | ||
Special and restructuring (recoveries) charges, net | 0 | |||
Corporate Segment [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring Charges | 0 | 0 | ||
Special and restructuring (recoveries) charges, net | 0 | 2,455 | ||
Inventory Related Charges [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring Charges | 300 | |||
Inventory Related Charges [Member] | Energy [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring Charges | 2,800 | |||
Divestiture [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring Charges | 2,455 | |||
Divestiture [Member] | Industrial Segment | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring Charges | 0 | |||
Divestiture [Member] | Aerospace & Defense [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring Charges | 0 | |||
Divestiture [Member] | Corporate Segment [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring Charges | $ 2,455 | |||
Reliability Services [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring Charges | 500 | |||
Reliability Services divestiture | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 10,300 | |||
Special and restructuring (recoveries) charges, net | (10,282) | |||
Reliability Services divestiture | Industrial Segment | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Special and restructuring (recoveries) charges, net | 0 | |||
Reliability Services divestiture | Energy [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Special and restructuring (recoveries) charges, net | (10,282) | |||
Reliability Services divestiture | Aerospace & Defense [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Special and restructuring (recoveries) charges, net | 0 | |||
Reliability Services divestiture | Corporate Segment [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Special and restructuring (recoveries) charges, net | 0 | |||
Rosscor divestiture related charges | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Special and restructuring (recoveries) charges, net | 153 | |||
Rosscor divestiture related charges | Industrial Segment | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Special and restructuring (recoveries) charges, net | 153 | |||
Rosscor divestiture related charges | Energy [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Special and restructuring (recoveries) charges, net | 0 | |||
Rosscor divestiture related charges | Aerospace & Defense [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Special and restructuring (recoveries) charges, net | 0 | |||
Rosscor divestiture related charges | Corporate Segment [Member] | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Special and restructuring (recoveries) charges, net | $ 0 |
Goodwill And Intangible Assets (Goodwill, By Segment) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill as of December 31, 2018 | $ 459,205 |
Currency translation adjustments | 1,680 |
Goodwill as of March 31, 2019 | 460,995 |
Energy [Member] | |
Goodwill [Roll Forward] | |
Goodwill as of December 31, 2018 | 104,872 |
Currency translation adjustments | (4,335) |
Goodwill as of March 31, 2019 | 100,647 |
Aerospace [Member] | |
Goodwill [Roll Forward] | |
Goodwill as of December 31, 2018 | 57,418 |
Currency translation adjustments | (30) |
Goodwill as of March 31, 2019 | 57,388 |
Energy [Member] | |
Goodwill [Line Items] | |
Goodwill, Transfers | 110 |
Total Industrial | |
Goodwill [Roll Forward] | |
Goodwill as of December 31, 2018 | 296,915 |
Currency translation adjustments | 6,045 |
Goodwill as of March 31, 2019 | $ 302,960 |
Goodwill And Intangible Assets (Gross Intangible Assets And Related Accumulated Amortization) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 466,463 | |
Accumulated Amortization | (120,784) | |
Finite-Lived Intangible Assets, Gross | 345,679 | |
Net carrying value of intangible assets | 422,302 | $ 441,302 |
Patents [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,399 | |
Accumulated Amortization | (5,399) | |
Finite-Lived Intangible Assets, Net | 0 | |
Non-amortized intangibles (primarily trademarks and trade names) [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 76,623 | |
Indefinite-Lived Intangible Assets Net of Impairment | 76,623 | |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 302,728 | |
Accumulated Amortization | (62,696) | |
Finite-Lived Intangible Assets, Net | 240,032 | |
Backlog [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 22,889 | |
Accumulated Amortization | (20,730) | |
Finite-Lived Intangible Assets, Net | 2,159 | |
Acquired Technology [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 131,664 | |
Accumulated Amortization | (28,176) | |
Finite-Lived Intangible Assets, Net | 103,488 | |
Other [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,783 | |
Accumulated Amortization | (3,783) | |
Finite-Lived Intangible Assets, Net | $ 0 |
Goodwill And Intangible Assets (Estimated Remaining Amortization Expense For Intangible Assets) (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2018 | $ 35,597 |
2019 | 43,889 |
2020 | 42,143 |
2021 | 37,081 |
2022 | 32,509 |
After 2022 | $ 154,460 |
Segment Information (Reportable Segment Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Apr. 01, 2018 |
Dec. 31, 2018 |
|
Segment Reporting Information [Line Items] | |||
Restructuring Costs and Asset Impairment Charges | $ 16,343 | $ 20,707 | |
Net revenues | 270,395 | 275,580 | |
Operating Income (Loss) | 11,712 | (13,380) | |
Other Operating Income | 20,239 | 19,773 | |
Total special charges, net | (8,679) | 2,831 | |
Restructuring Charges | 863 | 9,615 | |
Amortization of inventory step-up | 0 | 6,600 | |
Interest expense | 13,179 | 11,801 | |
Other income, net | (1,913) | (1,861) | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 446 | (23,320) | |
Identifiable assets | 1,719,334 | 1,928,107 | $ 1,791,612 |
Capital expenditures | 3,717 | 8,234 | |
Depreciation, Depletion and Amortization | 18,509 | 19,663 | |
Corporate Identifiable Assets After Elimination Of Intercompany Assets [Member] | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 20,900 | 17,000 | |
Energy [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 98,417 | 99,972 | |
Operating Income (Loss) | 6,783 | 5,696 | |
Total special charges, net | (8,832) | 376 | |
Restructuring Charges | 523 | 8,324 | |
Identifiable assets | 707,813 | 976,000 | |
Capital expenditures | 969 | 3,345 | |
Depreciation, Depletion and Amortization | 3,325 | 4,201 | |
Aerospace [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 61,240 | 58,477 | |
Operating Income (Loss) | 9,374 | 8,931 | |
Identifiable assets | 406,064 | 348,291 | |
Capital expenditures | 788 | 944 | |
Depreciation, Depletion and Amortization | 2,673 | 2,793 | |
Corporate/Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 110,738 | 117,131 | |
Operating Income (Loss) | (6,705) | (7,802) | |
Capital expenditures | 387 | 276 | |
Industrial Segment | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | 10,787 | 12,948 | |
Total special charges, net | 153 | 0 | |
Restructuring Charges | 272 | 1,209 | |
Identifiable assets | 1,408,206 | 1,327,094 | |
Capital expenditures | 1,141 | 3,624 | |
Depreciation, Depletion and Amortization | 12,369 | 12,440 | |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total special charges, net | 0 | 2,455 | |
Restructuring Charges | 0 | 0 | |
Identifiable assets | (802,749) | (723,278) | |
Depreciation, Depletion and Amortization | 142 | 229 | |
Segment Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Special Restructuring Charges | 863 | 9,615 | |
Special Other Charges | (8,679) | 2,831 | |
Total special charges, net | (7,816) | 12,446 | |
Restructuring Charges | 3,141 | 473 | |
Special Acquisition Amortization | 12,079 | 11,797 | |
Restatement Impact | 1,123 | 1,837 | |
Restatement Adjustment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 3,285 | $ 8,189 |
Financial Instruments (Narrative) (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Apr. 12, 2018 |
Mar. 31, 2019 |
|
Derivative [Line Items] | ||
Derivative, Fair Value, Net | $ (4,103,000) | |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Loss on Derivative | 200,000 | |
Derivative, Term of Contract | 4 years | |
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ 1,000,000 | |
Derivative, Notional Amount | $ 400,000,000.0 | |
Derivative, Floor Interest Rate | 1.00% | |
Derivative, Basis Spread on Variable Rate | 2.6475% | |
Derivative, Variable Interest Rate | 6.1475% | |
Base Rate [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Basis Spread on Variable Rate | 35000.00% |
Guarantees And Indemnification Obligations (Product Warranty Reserves) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |
Balance beginning December 31, 2014 | $ 4,050 |
Provisions | 742 |
Claims settled | (664) |
Currency translation adjustments | (1) |
Balance ending October 1, 2017 | 4,127 |
Liability for indemnification agreements | 0 |
Increase in warranty obligations | $ 100 |
Contingencies And Commitments (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Contingencies, Commitments And Guarantees [Line Items] | ||
Aggregate notional value standby letters of credit | $ 74,411 | |
Minimum [Member] | ||
Contingencies, Commitments And Guarantees [Line Items] | ||
Expiration period, minimum in months and maximum in years | 1 month | |
Maximum [Member] | ||
Contingencies, Commitments And Guarantees [Line Items] | ||
Expiration period, minimum in months and maximum in years | 5 years | |
Settled Litigation | Wage and Hour Action California | ||
Contingencies, Commitments And Guarantees [Line Items] | ||
Settlement liability | $ 2,400 | $ 2,400 |
Contingencies And Commitments (Standby Letters Of Credit Instruments) (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Contingencies, Commitments And Guarantees [Line Items] | |
Letters of Credit Outstanding, Amount | $ 74,411 |
0-12 months [Member] | |
Contingencies, Commitments And Guarantees [Line Items] | |
Letters of Credit Outstanding, Amount | 54,661 |
Greater than 12 months [Member] | |
Contingencies, Commitments And Guarantees [Line Items] | |
Letters of Credit Outstanding, Amount | $ 19,750 |
Retirement Plans (Components Of Net Pension Benefit Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 01, 2018 |
|
Pension Benefits | U.S. Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 1,967 | 1,762 |
Expected return on plan assets | (2,742) | (3,771) |
Amortization | 129 | 38 |
Net periodic benefit income | (646) | (1,971) |
Pension Benefits | Non-U.S. Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 695 | 774 |
Interest cost | 555 | 552 |
Expected return on plan assets | (247) | (258) |
Amortization | 5 | 0 |
Net periodic benefit income | 1,008 | 1,068 |
Other Post-Retirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 93 | 86 |
Amortization | 0 | 0 |
Net periodic benefit income | $ 93 | $ 86 |
Income Taxes (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits that would impact effective tax rate | $ 0.6 | $ 0.6 |
Unrecognized tax benefits that would affect the effective tax rate if recognized | 0.5 | 0.5 |
Deferred tax assets, valuation allowance | $ 17.6 | $ 17.6 |
Share-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019
USD ($)
$ / shares
shares
|
Apr. 01, 2018
USD ($)
$ / shares
shares
|
Dec. 31, 2018
USD ($)
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU outstanding | shares | 438,479 | ||
Shares available for grant | shares | 69,299 | ||
Compensation expense (benefit) | $ 1.4 | $ 1.3 | |
Unrecognized compensation costs | $ 13.5 | ||
Weighted average period of recognition of compensation expense (in years) | 2 years 4 months 21 days | ||
Weighted average contractual term for stock options outstanding, years | 4 years 10 months 7 days | ||
Weighted average contractual term for stock options exercisable, years | 4 years | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Grant Date Fair Value | $ / shares | $ 11.84 | $ 14.68 | |
Stock options outstanding | shares | 732,879 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0.0 | ||
Aggregate intrinsic value of stock options outstanding | $ 0.0 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | shares | 154,903 | 143,198 | |
Granted RSU awards fair value | $ / shares | $ 33.07 | $ 42.61 | |
Aggregate intrinsic value of RSU Awards / RSU MSPs | $ 0.6 | ||
Aggregate intrinsic value of RSU Awards outstanding | 10.6 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0.2 | ||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance target threshold (as a percent) | 0.00% | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance target threshold (as a percent) | 200.00% | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | shares | 26,475 | 48,080 | |
Restricted Stock Units Management Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | shares | 56,379 | 34,937 | |
Restricted stock units discount amount | $ / shares | 11.10 | 14.06 | |
Aggregate intrinsic value of RSU Awards / RSU MSPs | $ 0.1 | ||
Aggregate intrinsic value of RSU Awards outstanding | 0.7 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 0.1 | ||
Cash Settled Stock Unit Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU outstanding | shares | 67,109 | 50,907 | |
Cash used to settle awards | $ 0.5 | ||
Accrued expenses and current liabilities for Cash Settled Stock Unit Awards | 0.4 | $ 0.6 | |
Cash Settled Stock Unit Awards [Member] | Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense (benefit) | $ 0.4 | $ 0.1 |
Share-Based Compensation (Schedule Of Estimated Weighted-Average Assumptions Of Stock Options) (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 01, 2018 |
|
Share-based Compensation [Abstract] | ||
Risk-free interest rate | 2.60% | 2.50% |
Expected life | 4 years 5 months 9 days | 4 years 5 months 9 days |
Expected stock volatility | 38.10% | 37.20% |
Expected dividend yield | 0.00% | 0.00% |
Share-Based Compensation CEO Inducement Stock Award (Details) - Stock Options [Member] - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 01, 2018 |
|
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Stock options granted (in shares) | 153,726 | 127,704 |
Grant Date Fair Value (in usd per share) | $ 11.84 | $ 14.68 |
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 01, 2018 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance as of December 31, 2018 | $ (69,739) | |
Foreign currency translation adjustments | (8,840) | $ 8,341 |
Interest rate swap adjustments (1) | (2,134) | $ 0 |
Other comprehensive income | (10,974) | |
Balance as of March 31, 2019 | (80,713) | |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance as of December 31, 2018 | (49,109) | |
Balance as of March 31, 2019 | (57,949) | |
Pension, net | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance as of December 31, 2018 | (19,114) | |
Pension, net | 0 | |
Balance as of March 31, 2019 | (19,114) | |
Derivative | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance as of December 31, 2018 | (1,516) | |
Balance as of March 31, 2019 | $ (3,650) |
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 01, 2018 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net loss | $ (4,633) | $ (17,441) |
Basic Earnings Per Common Share (EPS), Shares | 19,870,000 | 19,806,000 |
Basic EPS, Per Share Amount | $ (0.23) | $ (0.88) |
Dilutive securities, common stock options, Shares | 0 | 0 |
Dilutive securities, common stock options, Per Share Amount | $ (0.00) | $ (0.00) |
Diluted EPS, Shares | 19,870,000 | 19,806,000 |
Diluted EPS, Per Share Amount | $ (0.23) | $ (0.88) |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive options and RSUs, shares | 901,098 | |
RSU Awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive options and RSUs, shares | 126,926 |
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