Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Significant Accounting Policies

Schedule of estimated useful lives of the assets

	Years
Land improvements and buildings	15	-	40
Leasehold improvements	12
Machinery and equipment	3	-	20
Furniture and fixtures	3	-	12
Mobile equipment and other	3	-	10

Schedule of changes in deferred financing costs

Balance at December 31, 2016	$	4,033
Amortization of deferred financing costs		(824)
Balance at December 31, 2017		3,209
Amortization of deferred financing costs		(823)
Balance at December 31, 2018		2,386
Amortization of deferred financing costs		(823)
Balance at December 31, 2019	$	1,563

Schedule of financial assets and liabilities measured at fair value on a recurring basis and disclosure of the fair value of long-term debt

		Fair Value at December 31, 2019		Fair Value at December 31, 2018
Assets:
Other long-term assets (a)	$	7,270	$	5,064
Total Assets	$	7,270	$	5,064
Liabilities:
Interest rate swaps (b)		6,736		2,031
Long term debt (c)		247,630		269,739
Earnout - Henderson (d)		17		352
Earnout - Dejana (e)		2,000		2,200
Total Liabilities	$	256,383	$	274,322

(a) Included in other assets is the cash surrender value of insurance policies on various individuals that are associated with the Company. The carrying amounts of these insurance policies approximates their fair value.

(b) Valuation models are calibrated to initial trade price. Subsequent valuations are based on observable inputs to the valuation model (e.g. interest rates and credit spreads). Model inputs are changed only when corroborated by market data. A credit risk adjustment is made on each swap using observable market credit spreads. Thus, inputs used to determine fair value of the interest rate swap are Level 2 inputs. Interest rate swaps of $1,522 and $5,214 at December 31, 2019 are included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively. Interest rate swaps of $127 and $1,904 at December 31, 2018 are included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively.

(c) The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements, which is a Level 2 input for all periods presented. Meanwhile, long-term debt is recorded at carrying amount, net of discount and deferred financing costs, as disclosed on the face of the balance sheet.

(d) Included in Accrued expenses and other current liabilities in the amount of $17 at December 31, 2019 is the fair value of an obligation for a portion of the potential earn out acquired in conjunction with the acquisition of Henderson. Included in accrued expenses and other current liabilities in the amount of $352 at December 31, 2018 is the fair value of an obligation for a portion of the potential earn out acquired in conjunction with the acquisition of Henderson. Fair value is based upon Level 3 discounted cash flow analysis using key inputs of forecasted future sales as well as a growth rate reduced by the market required rate of return. See reconciliation of liability included below:

	December 31,
	2019		2018
Beginning Balance	$	352	$	529
Adjustments to fair value		(217)		-
Payment to former owners		(118)		(177)
Ending balance	$	17	$	352

(e) Included in Other long term liabilities in the amount of $2,000 at December 31, 2019 is the fair value of an obligation for a portion of the potential earn out incurred in conjunction with the acquisition of Dejana. Included in Other long term liabilities in the amounts of $2,200 at December 31, 2018 is the fair value of an obligation for a portion of the potential earn out incurred in conjunction with the acquisition of Dejana. The carrying amount of the earn out approximates its fair value.  Fair value is based upon Level 3 inputs of a real options approach where gross sales were simulated in a risk-neutral framework using Geometric Brownian Motion, a well-accepted model of stock price behavior that is used in option pricing models such as the Black-Scholes option pricing model, using key inputs of forecasted future sales and financial performance as well as a risk adjusted expected growth rate adjusted appropriately based on its correlation with the market.  See reconciliation of liability included below: 

	December 31,
	2019		2018
Beginning Balance	$	2,200	$	3,100
Adjustments to fair value		(200)		(900)
Ending balance	$	2,000	$	2,200