ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 001-34927 | 57-6218917 | ||||
(State or other jurisdiction of incorporation or organization) | (Commission file number) | (I.R.S. employer identification number) |
Delaware | 001-34926 | 20-3812051 | ||||
(State or other jurisdiction of incorporation or organization) | (Commission file number) | (I.R.S. employer identification number) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | Smaller Reporting Company | ¨ | |||
Emerging growth company | ¨ |
Page Number | ||||
PART I. FINANCIAL INFORMATION | ||||
ITEM 1. | ||||
ITEM 2. | ||||
ITEM 3. | ||||
ITEM 4. | ||||
PART II. OTHER INFORMATION | ||||
ITEM 1. | ||||
ITEM 1A. | ||||
ITEM 6. | ||||
• | the "Trust" and "Holdings" refer to Compass Diversified Holdings; |
• | "businesses," "operating segments," "subsidiaries" and "reporting units" refer to, collectively, the businesses controlled by the Company; |
• | the "Company" refer to Compass Group Diversified Holdings LLC; |
• | the "Manager" refer to Compass Group Management LLC ("CGM"); |
• | the "Trust Agreement" refer to the Second Amended and Restated Trust Agreement of the Trust dated as of December 6, 2016; |
• | the "2011 Credit Facility" refer to a credit agreement (as amended) with a group of lenders led by Toronto Dominion (Texas) LLC, as agent, which provided for the 2011 Revolving Credit Facility and the 2011 Term Loan Facility; |
• | the "2014 Credit Facility" refer to the credit agreement, as amended from time to time, entered into on June 6, 2014 with a group of lenders led by Bank of America N.A. as administrative agent, which provides for a Revolving Credit Facility and a Term Loan; |
• | the "2014 Revolving Credit Facility" refer to the $550 million Revolving Credit Facility provided by the 2014 Credit Facility that matures in June 2019; |
• | the "2014 Term Loan" refer to the $325 million Term Loan Facility, provided by the 2014 Credit Facility that matures in June 2021; |
• | the "2016 Incremental Term Loan" refer to the $250 million Tranche B Term Facility provided by the 2014 Credit Facility (together with the 2014 Term Loan, the "Term Loans"); |
• | the "LLC Agreement" refer to the fifth amended and restated operating agreement of the Company dated as of December 6, 2016; and |
• | "we," "us" and "our" refer to the Trust, the Company and the businesses together. |
• | our ability to successfully operate our businesses on a combined basis, and to effectively integrate and improve future acquisitions; |
• | our ability to remove CGM and CGM’s right to resign; |
• | our organizational structure, which may limit our ability to meet our dividend and distribution policy; |
• | our ability to service and comply with the terms of our indebtedness; |
• | our cash flow available for distribution and reinvestment and our ability to make distributions in the future to our shareholders; |
• | our ability to pay the management fee and profit allocation if and when due; |
• | our ability to make and finance future acquisitions; |
• | our ability to implement our acquisition and management strategies; |
• | the regulatory environment in which our businesses operate; |
• | trends in the industries in which our businesses operate; |
• | changes in general economic or business conditions or economic or demographic trends in the United States and other countries in which we have a presence, including changes in interest rates and inflation; |
• | environmental risks affecting the business or operations of our businesses; |
• | our and CGM’s ability to retain or replace qualified employees of our businesses and CGM; |
• | costs and effects of legal and administrative proceedings, settlements, investigations and claims; and |
• | extraordinary or force majeure events affecting the business or operations of our businesses. |
(in thousands) | September 30, 2017 | December 31, 2016 | |||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 41,487 | $ | 39,772 | |||
Accounts receivable, net | 198,111 | 181,191 | |||||
Inventories | 242,817 | 212,984 | |||||
Prepaid expenses and other current assets | 27,145 | 18,872 | |||||
Total current assets | 509,560 | 452,819 | |||||
Property, plant and equipment, net | 170,827 | 142,370 | |||||
Investment in FOX (refer to Note F) | — | 141,767 | |||||
Goodwill | 539,925 | 491,637 | |||||
Intangible assets, net | 591,878 | 539,211 | |||||
Other non-current assets | 8,616 | 9,351 | |||||
Total assets | $ | 1,820,806 | $ | 1,777,155 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 77,417 | $ | 61,512 | |||
Accrued expenses | 105,058 | 91,041 | |||||
Due to related party | 7,553 | 20,848 | |||||
Current portion, long-term debt | 5,685 | 5,685 | |||||
Other current liabilities | 15,493 | 23,435 | |||||
Total current liabilities | 211,206 | 202,521 | |||||
Deferred income taxes | 122,033 | 110,838 | |||||
Long-term debt | 569,755 | 551,652 | |||||
Other non-current liabilities | 18,570 | 17,600 | |||||
Total liabilities | 921,564 | 882,611 | |||||
Stockholders’ equity | |||||||
Trust preferred shares, 50,000 authorized; 4,000 shares issued and outstanding at September 30, 2017 | 96,417 | — | |||||
Trust common shares, no par value, 500,000 authorized; 59,900 shares issued and outstanding at September 30, 2017 and December 31, 2016 | 924,680 | 924,680 | |||||
Accumulated other comprehensive loss | (2,184 | ) | (9,515 | ) | |||
Accumulated deficit | (167,297 | ) | (58,760 | ) | |||
Total stockholders’ equity attributable to Holdings | 851,616 | 856,405 | |||||
Noncontrolling interest | 47,626 | 38,139 | |||||
Total stockholders’ equity | 899,242 | 894,544 | |||||
Total liabilities and stockholders’ equity | $ | 1,820,806 | $ | 1,777,155 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net sales | $ | 268,281 | $ | 200,770 | $ | 767,960 | $ | 525,713 | |||||||
Service revenues | 55,676 | 51,515 | 153,370 | 134,035 | |||||||||||
Total net revenues | 323,957 | 252,285 | 921,330 | 659,748 | |||||||||||
Cost of sales | 166,445 | 133,006 | 488,913 | 340,576 | |||||||||||
Cost of service revenues | 39,787 | 36,864 | 110,639 | 95,968 | |||||||||||
Gross profit | 117,725 | 82,415 | 321,778 | 223,204 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative expense | 80,804 | 53,648 | 239,102 | 140,702 | |||||||||||
Management fees | 8,277 | 8,435 | 24,308 | 21,394 | |||||||||||
Amortization expense | 14,167 | 8,423 | 39,256 | 23,966 | |||||||||||
Impairment expense | — | — | 8,864 | — | |||||||||||
Loss on disposal of assets | — | 551 | — | 7,214 | |||||||||||
Operating income | 14,477 | 11,358 | 10,248 | 29,928 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (6,945 | ) | (4,376 | ) | (22,499 | ) | (23,204 | ) | |||||||
Amortization of debt issuance costs | (1,004 | ) | (687 | ) | (2,940 | ) | (1,827 | ) | |||||||
Gain (loss) on investment in FOX | — | 50,414 | (5,620 | ) | 58,680 | ||||||||||
Other income (expense), net | 2,020 | (3,271 | ) | 2,950 | (1,852 | ) | |||||||||
Income (loss) from continuing operations before income taxes | 8,548 | 53,438 | (17,861 | ) | 61,725 | ||||||||||
Provision (benefit) for income taxes | 192 | 4,894 | (2,002 | ) | 9,778 | ||||||||||
Income (loss) from continuing operations | 8,356 | 48,544 | (15,859 | ) | 51,947 | ||||||||||
Income (loss) from discontinued operations, net of income tax | — | (455 | ) | — | 473 | ||||||||||
Gain on sale of discontinued operations, net of income tax | — | 2,134 | 340 | 2,134 | |||||||||||
Net income (loss) | 8,356 | 50,223 | (15,519 | ) | 54,554 | ||||||||||
Less: Net income attributable to noncontrolling interest | 650 | 682 | 2,492 | 1,749 | |||||||||||
Less: Net loss from discontinued operations attributable to noncontrolling interest | — | (164 | ) | — | (116 | ) | |||||||||
Net income (loss) attributable to Holdings | $ | 7,706 | $ | 49,705 | $ | (18,011 | ) | $ | 52,921 | ||||||
Amounts attributable to Holdings | |||||||||||||||
Income (loss) from continuing operations | $ | 7,706 | $ | 47,862 | $ | (18,351 | ) | $ | 50,198 | ||||||
Income (loss) from discontinued operations, net of income tax | — | (291 | ) | — | 589 | ||||||||||
Gain on sale of discontinued operations, net of income tax | — | 2,134 | 340 | 2,134 | |||||||||||
Net income (loss) attributable to Holdings | $ | 7,706 | $ | 49,705 | $ | (18,011 | ) | $ | 52,921 | ||||||
Basic and fully diluted income (loss) per common share attributable to Holdings (refer to Note L) | |||||||||||||||
Continuing operations | $ | 0.10 | $ | 0.72 | $ | (1.03 | ) | $ | 0.59 | ||||||
Discontinued operations | — | 0.03 | 0.01 | 0.05 | |||||||||||
$ | 0.10 | $ | 0.75 | $ | (1.02 | ) | $ | 0.64 | |||||||
Weighted average number of shares of common shares outstanding – basic and fully diluted | 59,900 | 54,300 | 59,900 | 54,300 | |||||||||||
Cash distributions declared per common share (refer to Note L) | $ | 0.36 | $ | 0.36 | $ | 1.08 | $ | 1.08 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net income (loss) | $ | 8,356 | $ | 50,223 | $ | (15,519 | ) | $ | 54,554 | ||||||
Other comprehensive income (loss) | |||||||||||||||
Foreign currency translation adjustments | 3,370 | (1,945 | ) | 6,955 | 3,275 | ||||||||||
Pension benefit liability, net | (4 | ) | (765 | ) | 376 | (1,288 | ) | ||||||||
Other comprehensive income (loss) | 3,366 | (2,710 | ) | 7,331 | 1,987 | ||||||||||
Total comprehensive income (loss), net of tax | 11,722 | 47,513 | (8,188 | ) | 56,541 | ||||||||||
Less: Net income attributable to noncontrolling interests | 650 | 518 | 2,492 | 1,633 | |||||||||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests | 675 | (268 | ) | 1,336 | 929 | ||||||||||
Total comprehensive income (loss) attributable to Holdings, net of tax | $ | 10,397 | $ | 47,263 | $ | (12,016 | ) | $ | 53,979 |
(in thousands) | Trust Preferred Shares | Trust Common Shares | Accumulated Deficit | Accumulated Other Comprehensive Loss | Stockholders' Equity Attributable to Holdings | Non- Controlling Interest | Total Stockholders’ Equity | ||||||||||||||||||||
Balance — January 1, 2017 | $ | — | $ | 924,680 | $ | (58,760 | ) | $ | (9,515 | ) | $ | 856,405 | $ | 38,139 | $ | 894,544 | |||||||||||
Net income (loss) | — | — | (18,011 | ) | — | (18,011 | ) | 2,492 | (15,519 | ) | |||||||||||||||||
Total comprehensive income, net | — | — | — | 7,331 | 7,331 | — | 7,331 | ||||||||||||||||||||
Issuance of Trust preferred shares, net of offering costs | 96,417 | — | — | — | 96,417 | — | 96,417 | ||||||||||||||||||||
Option activity attributable to noncontrolling shareholders | — | — | — | — | — | 4,952 | 4,952 | ||||||||||||||||||||
Effect of subsidiary stock option exercise | — | — | — | — | — | 1,222 | 1,222 | ||||||||||||||||||||
Effect of issuance of subsidiary stock | — | — | — | — | — | 40 | 40 | ||||||||||||||||||||
Acquisition of Crosman | — | — | — | — | — | 781 | 781 | ||||||||||||||||||||
Distributions paid - Allocation Interests (refer to Note L) | — | — | (25,834 | ) | — | (25,834 | ) | — | (25,834 | ) | |||||||||||||||||
Distributions paid - Trust Common Shares | — | — | (64,692 | ) | — | (64,692 | ) | — | (64,692 | ) | |||||||||||||||||
Balance — September 30, 2017 | $ | 96,417 | $ | 924,680 | $ | (167,297 | ) | $ | (2,184 | ) | $ | 851,616 | $ | 47,626 | $ | 899,242 |
COMPASS DIVERSIFIED HOLDINGS CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) | |||||||
Nine months ended September 30, | |||||||
(in thousands) | 2017 | 2016 | |||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (15,519 | ) | $ | 54,554 | ||
Income from discontinued operations | — | 473 | |||||
Gain on sale of discontinued operations, net | 340 | 2,134 | |||||
Net income (loss) from continuing operations | (15,859 | ) | 51,947 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation expense | 24,505 | 19,481 | |||||
Amortization expense | 64,154 | 32,691 | |||||
Impairment expense | 8,864 | — | |||||
Loss on disposal of assets | — | 7,214 | |||||
Amortization of debt issuance costs and original issue discount | 3,721 | 2,363 | |||||
Unrealized loss on interest rate swap | 1,178 | 8,322 | |||||
Noncontrolling stockholder stock based compensation | 4,952 | 3,011 | |||||
Excess tax benefit from subsidiary stock options exercised | (417 | ) | (366 | ) | |||
Loss (gain) on investment in FOX | 5,620 | (58,680 | ) | ||||
Provision for loss on receivables | 4,310 | 59 | |||||
Deferred taxes | (17,937 | ) | (4,479 | ) | |||
Other | 494 | 325 | |||||
Changes in operating assets and liabilities, net of acquisition: | |||||||
Increase in accounts receivable | (1,015 | ) | (8,797 | ) | |||
(Increase) decrease in inventories | (24,222 | ) | 440 | ||||
(Increase) decrease in prepaid expenses and other current assets | (4,501 | ) | 2,081 | ||||
Increase in accounts payable and accrued expenses | 5,389 | 1,296 | |||||
Net cash provided by operating activities - continuing operations | 59,236 | 56,908 | |||||
Net cash provided by operating activities - discontinued operations | — | 3,686 | |||||
Cash provided by operating activities | 59,236 | 60,594 | |||||
Cash flows from investing activities: | |||||||
Acquisitions, net of cash acquired | (164,742 | ) | (528,642 | ) | |||
Purchases of property and equipment | (30,955 | ) | (15,528 | ) | |||
Net proceeds from sale of equity investment | 136,147 | 110,685 | |||||
Payment of interest rate swap | (3,050 | ) | (3,114 | ) | |||
Purchase of noncontrolling interest | — | (1,476 | ) | ||||
Proceeds from sale of business | 340 | 11,249 | |||||
Other investing activities | (696 | ) | 350 | ||||
Net cash used in investing activities - continuing operations | (62,956 | ) | (426,476 | ) | |||
Net cash provided by investing activities - discontinued operations | — | 9,192 | |||||
Cash used in investing activities | (62,956 | ) | (417,284 | ) |
COMPASS DIVERSIFIED HOLDINGS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Nine months ended September 30, | |||||||
(in thousands) | 2017 | 2016 | |||||
Cash flows from financing activities: | |||||||
Proceeds from the issuance of Trust preferred shares, net | 96,417 | — | |||||
Borrowings under credit facility | 214,500 | 633,798 | |||||
Repayments under credit facility | (197,664 | ) | (221,719 | ) | |||
Distributions paid | (64,692 | ) | (58,644 | ) | |||
Net proceeds provided by noncontrolling shareholders | 821 | 9,473 | |||||
Distributions paid to noncontrolling shareholders | — | (23,630 | ) | ||||
Distributions paid to allocation interest holders (refer to Note L) | (39,188 | ) | (16,829 | ) | |||
Repurchase of subsidiary stock | — | (15,407 | ) | ||||
Excess tax benefit from subsidiary stock options exercised | 417 | 366 | |||||
Debt issuance costs | (1,433 | ) | (5,993 | ) | |||
Other | (1,316 | ) | (1,008 | ) | |||
Net cash provided by financing activities | 7,862 | 300,407 | |||||
Foreign currency impact on cash | (2,427 | ) | (3,197 | ) | |||
Net increase (decrease) in cash and cash equivalents | 1,715 | (59,480 | ) | ||||
Cash and cash equivalents — beginning of period (1) | 39,772 | 85,869 | |||||
Cash and cash equivalents — end of period | $ | 41,487 | $ | 26,389 |
Preliminary Allocation | Measurement Period Adjustments | Revised Preliminary Allocation | ||||||||||
(in thousands) | As of 6/2/2017 | As of 9/30/17 | ||||||||||
Assets: | ||||||||||||
Cash | $ | 429 | $ | 781 | $ | 1,210 | ||||||
Accounts receivable (1) | 16,751 | — | 16,751 | |||||||||
Inventory | 25,598 | 3,166 | 28,764 | |||||||||
Property, plant and equipment | 10,963 | 6,610 | 17,573 | |||||||||
Intangible assets | — | 82,773 | 82,773 | |||||||||
Goodwill | 139,434 | (91,316 | ) | 48,118 | ||||||||
Other current and noncurrent assets | 2,348 | — | 2,348 | |||||||||
Total assets | $ | 195,523 | $ | 2,014 | $ | 197,537 | ||||||
Liabilities and noncontrolling interest: | ||||||||||||
Current liabilities | $ | 15,502 | $ | 781 | $ | 16,283 | ||||||
Other liabilities | 91,268 | 189 | 91,457 | |||||||||
Deferred tax liabilities | 27,286 | 1,382 | 28,668 | |||||||||
Noncontrolling interest | 694 | — | 694 | |||||||||
Total liabilities and noncontrolling interest | $ | 134,750 | $ | 2,352 | $ | 137,102 | ||||||
Net assets acquired | $ | 60,773 | $ | (338 | ) | $ | 60,435 | |||||
Noncontrolling interest | 694 | — | 694 | |||||||||
Intercompany loans to business | 90,742 | — | 90,742 | |||||||||
$ | 152,209 | $ | (338 | ) | $ | 151,871 |
Acquisition Consideration | ||||||||||||
Purchase price | $ | 151,800 | $ | — | $ | 151,800 | ||||||
Cash acquired | 1,417 | (207 | ) | 1,210 | ||||||||
Working capital adjustment | (1,008 | ) | (131 | ) | (1,139 | ) | ||||||
Total purchase consideration | 152,209 | (338 | ) | 151,871 | ||||||||
Less: Transaction costs | 1,397 | 76 | 1,473 | |||||||||
Purchase price, net | $ | 150,812 | $ | (414 | ) | $ | 150,398 |
Intangible Assets | Amount | Estimated Useful Life | ||||
Tradename | $ | 51,642 | 20 years | |||
Customer relationships | 28,718 | 15 years | ||||
Technology | 2,413 | 15 years | ||||
$ | 82,773 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||
(in thousands) | 2016 | 2017 | 2016 | |||||||||
Net sales | $ | 331,829 | $ | 962,976 | $ | 928,157 | ||||||
Gross profit | 111,811 | 332,682 | 326,936 | |||||||||
Operating income | 13,463 | 11,924 | 36,424 | |||||||||
Net income (loss) | 46,054 | (12,581 | ) | 52,461 | ||||||||
Net income (loss) attributable to Holdings | 45,381 | (15,073 | ) | 50,743 | ||||||||
Basic and fully diluted net income (loss) per share attributable to Holdings | $ | 0.67 | $ | (0.97 | ) | $ | 0.60 |
(in thousands) | Three months ended September 30, 2016 | Nine months ended September 30, 2016 | |||||
Net sales | $ | 15,978 | $ | 45,951 | |||
Gross profit | 3,223 | 7,917 | |||||
Operating income | 967 | 437 | |||||
Income (loss) from continuing operations before income taxes | (440 | ) | 488 | ||||
Provision for income taxes | 15 | 15 | |||||
Income (loss) from discontinued operations (1) | $ | (455 | ) | $ | 473 |
• | 5.11 Tactical is a leading provider of purpose-built tactical apparel and gear for law enforcement, firefighters, EMS, and military special operations as well as outdoor and adventure enthusiasts. 5.11 is a brand known for innovation and authenticity, and works directly with end users to create purpose-built apparel and gear designed to enhance the safety, accuracy, speed and performance of tactical professionals and enthusiasts worldwide. Headquartered in Irvine, California, 5.11 operates sales offices and distribution centers globally, and 5.11 products are widely distributed in uniform stores, military exchanges, outdoor retail stores, its own retail stores and on 511tactical.com. |
• | Crosman is a leading designer, manufacturer, and marketer of airguns, archery products, laser aiming devices and related accessories. Crosman offers its products under the highly recognizable Crosman, Benjamin and CenterPoint brands that are available through national retail chains, mass merchants, dealer and distributor networks. Crosman is headquartered in Bloomfield, New York. |
• | Ergobaby is a designer, marketer and distributor of wearable baby carriers and accessories, blankets and swaddlers, nursing pillows, and related products. Ergobaby primarily sells its Ergobaby and Baby Tula branded products through brick-and-mortar retailers, national chain stores, online retailers, its own websites and distributors and derives approximately 57% of its sales from outside of the United States. Ergobaby is headquartered in Los Angeles, California. |
• | Liberty Safe is a designer, manufacturer and marketer of premium home, gun and office safes in North America. From its over 300,000 square foot manufacturing facility, Liberty produces a wide range of home and gun safe models in a broad assortment of sizes, features and styles. Liberty is headquartered in Payson, Utah. |
• | Manitoba Harvest is a pioneer and leader in the manufacture and distribution of branded, hemp-based foods and hemp-based ingredients. Manitoba Harvest’s products, which include Hemp Hearts™, Hemp Heart Bites™, and Hemp protein powders, are currently carried in over 13,000 retail stores across the United States and Canada. Manitoba Harvest is headquartered in Winnipeg, Manitoba. |
• | Advanced Circuits is an electronic components manufacturing company that provides small-run, quick-turn and volume production rigid printed circuit boards. ACI manufactures and delivers custom printed circuit boards to customers primarily in North America. ACI is headquartered in Aurora, Colorado. |
• | Arnold Magnetics is a global manufacturer of engineered magnetic solutions for a wide range of specialty applications and end-markets, including aerospace and defense, motorsport/automotive, oil and gas, medical, general industrial, electric utility, reprographics and advertising specialty markets. Arnold Magnetics produces high performance permanent magnets (PMAG), flexible magnets (Flexmag) and precision foil products (Precision Thin Metals or "PTM") that are mission critical in motors, generators, sensors and other systems and components. Based on its long-term relationships, Arnold has built a diverse and blue-chip customer base totaling more than 2,000 clients worldwide. Arnold Magnetics is headquartered in Rochester, New York. |
• | Clean Earth provides environmental services for a variety of contaminated materials including soils, dredged material, hazardous waste and drill cuttings. Clean Earth analyzes, treats, documents and recycles waste streams generated in multiple end-markets such as power, construction, oil and gas, infrastructure, industrial and dredging. Clean Earth is headquartered in Hatboro, Pennsylvania and operates 18 facilities in the eastern United States. |
• | Sterno Products is a manufacturer and marketer of portable food warming fuel and creative table lighting solutions for the food service industry and flameless candles and outdoor lighting products for consumers. Sterno's products include wick and gel chafing fuels, butane stoves and accessories, liquid and traditional wax candles, catering equipment and outdoor lighting products. Sterno Products is headquartered in Corona, California. |
Net Revenues | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
5.11 Tactical | $ | 72,005 | $ | 27,203 | $ | 228,471 | $ | 27,203 | |||||||
Crosman | 34,449 | — | 44,202 | — | |||||||||||
Ergobaby | 27,835 | 29,664 | 77,737 | 75,048 | |||||||||||
Liberty | 18,423 | 23,810 | 66,008 | 74,713 | |||||||||||
Manitoba Harvest | 13,948 | 15,920 | 42,625 | 44,321 | |||||||||||
ACI | 22,436 | 21,679 | 66,404 | 64,945 | |||||||||||
Arnold Magnetics | 26,489 | 26,912 | 79,421 | 82,791 | |||||||||||
Clean Earth | 55,676 | 51,515 | 153,370 | 134,035 | |||||||||||
Sterno Products | 52,696 | 55,582 | 163,092 | 156,692 | |||||||||||
Total segment revenue | 323,957 | 252,285 | 921,330 | 659,748 | |||||||||||
Corporate and other | — | — | — | — | |||||||||||
Total consolidated revenues | $ | 323,957 | $ | 252,285 | $ | 921,330 | $ | 659,748 |
Segment profit (loss) (1) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
5.11 Tactical | $ | (253 | ) | $ | (1,794 | ) | $ | (14,542 | ) | $ | (1,794 | ) | |||
Crosman | (1,388 | ) | — | (1,587 | ) | — | |||||||||
Ergobaby | 5,884 | 4,671 | 14,728 | 9,101 | |||||||||||
Liberty | 2,050 | 2,417 | 6,900 | 9,879 | |||||||||||
Manitoba Harvest | (169 | ) | 554 | 75 | (865 | ) | |||||||||
ACI | 6,191 | 5,759 | 18,106 | 17,241 | |||||||||||
Arnold Magnetics | 2,000 | 851 | (4,551 | ) | 3,828 | ||||||||||
Clean Earth | 5,592 | 3,593 | 7,597 | 5,860 | |||||||||||
Sterno Products | 4,411 | 5,536 | 13,383 | 14,095 | |||||||||||
Total | 24,318 | 21,587 | 40,109 | 57,345 | |||||||||||
Reconciliation of segment profit (loss) to consolidated income (loss) before income taxes: | |||||||||||||||
Interest expense, net | (6,945 | ) | (4,376 | ) | (22,499 | ) | (23,204 | ) | |||||||
Other income (expense), net | 2,020 | (3,271 | ) | 2,950 | (1,852 | ) | |||||||||
Gain (loss) on equity method investment | — | 50,414 | (5,620 | ) | 58,680 | ||||||||||
Corporate and other (2) | (10,845 | ) | (10,916 | ) | (32,801 | ) | (29,244 | ) | |||||||
Total consolidated income (loss) before income taxes | $ | 8,548 | $ | 53,438 | $ | (17,861 | ) | $ | 61,725 |
(1) | Segment profit (loss) represents operating income (loss). |
(2) | Primarily relates to management fees expensed and payable to CGM, and corporate overhead expenses. |
Depreciation and Amortization Expense | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
5.11 Tactical | $ | 4,338 | $ | 5,192 | $ | 34,882 | $ | 5,192 | |||||||
Crosman | 5,593 | — | 5,842 | — | |||||||||||
Ergobaby | 3,068 | 4,409 | 9,386 | 6,046 | |||||||||||
Liberty | 358 | 616 | 1,295 | 1,925 | |||||||||||
Manitoba Harvest | 1,891 | 1,732 | 4,922 | 5,200 | |||||||||||
ACI | 817 | 885 | 2,517 | 2,585 | |||||||||||
Arnold Magnetics | 1,452 | 2,268 | 4,962 | 6,778 | |||||||||||
Clean Earth | 5,687 | 5,989 | 16,140 | 16,019 | |||||||||||
Sterno Products | 2,873 | 2,396 | 8,713 | 8,427 | |||||||||||
Total | 26,077 | 23,487 | 88,659 | 52,172 | |||||||||||
Reconciliation of segment to consolidated total: | |||||||||||||||
Amortization of debt issuance costs and original issue discount | 1,261 | 888 | 3,721 | 2,363 | |||||||||||
Consolidated total | $ | 27,338 | $ | 24,375 | $ | 92,380 | $ | 54,535 |
Accounts Receivable | Identifiable Assets | ||||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||||
(in thousands) | 2017 | 2016 | 2017 (1) | 2016 (1) | |||||||||||
5.11 Tactical | $ | 46,112 | $ | 49,653 | $ | 313,072 | $ | 311,560 | |||||||
Crosman | 24,904 | — | 134,047 | — | |||||||||||
Ergobaby | 11,140 | 11,018 | 105,627 | 113,814 | |||||||||||
Liberty | 13,708 | 13,077 | 27,901 | 26,344 | |||||||||||
Manitoba Harvest | 5,251 | 6,468 | 100,330 | 97,977 | |||||||||||
ACI | 7,010 | 6,686 | 15,847 | 16,541 | |||||||||||
Arnold Magnetics | 15,407 | 15,195 | 69,154 | 64,209 | |||||||||||
Clean Earth | 47,659 | 45,619 | 187,460 | 193,250 | |||||||||||
Sterno Products | 37,389 | 38,986 | 126,135 | 134,661 | |||||||||||
Allowance for doubtful accounts | (10,469 | ) | (5,511 | ) | — | — | |||||||||
Total | 198,111 | 181,191 | 1,079,573 | 958,356 | |||||||||||
Reconciliation of segment to consolidated total: | |||||||||||||||
Corporate and other identifiable assets (2) | — | — | 3,197 | 145,971 | |||||||||||
Total | $ | 198,111 | $ | 181,191 | $ | 1,082,770 | $ | 1,104,327 |
(1) | Does not include accounts receivable balances per schedule above or goodwill balances - refer to Note H - "Goodwill and Other Intangible Assets". |
(2) | Corporate and other identifiable assets for the year ended December 31, 2016 includes the Company's investment in FOX, which was sold during the first quarter of 2017 - refer to Note F - "Investment in FOX". |
International Revenues | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
5.11 Tactical | $ | 19,238 | $ | 6,141 | $ | 63,088 | $ | 6,141 | |||||||
Crosman | 4,542 | — | 6,412 | — | |||||||||||
Ergobaby | 17,048 | 16,701 | 46,277 | 40,660 | |||||||||||
Manitoba Harvest | 10,720 | 8,573 | 19,979 | 20,983 | |||||||||||
Arnold Magnetics | 10,556 | 12,208 | 31,677 | 33,654 | |||||||||||
Sterno Products | 5,809 | 6,327 | 16,265 | 16,366 | |||||||||||
$ | 67,913 | $ | 49,950 | $ | 183,698 | $ | 117,804 |
September 30, 2017 | December 31, 2016 | ||||||
Machinery and equipment | $ | 168,621 | $ | 155,591 | |||
Furniture, fixtures and other | 27,005 | 13,737 | |||||
Leasehold improvements | 18,337 | 14,156 | |||||
Buildings and land | 39,964 | 35,392 | |||||
Construction in process | 24,699 | 8,308 | |||||
278,626 | 227,184 | ||||||
Less: accumulated depreciation | (107,799 | ) | (84,814 | ) | |||
Total | $ | 170,827 | $ | 142,370 |
September 30, 2017 | December 31, 2016 | ||||||
Raw materials | $ | 38,388 | $ | 29,708 | |||
Work-in-process | 12,294 | 8,281 | |||||
Finished goods | 201,348 | 182,886 | |||||
Less: obsolescence reserve | (9,213 | ) | (7,891 | ) | |||
Total | $ | 242,817 | $ | 212,984 |
Nine months ended September 30, 2017 | Year ended December 31, 2016 | ||||||
Goodwill - gross carrying amount | $ | 564,789 | $ | 507,637 | |||
Accumulated impairment losses | (24,864 | ) | (16,000 | ) | |||
Goodwill - net carrying amount | $ | 539,925 | $ | 491,637 |
Balance at January 1, 2017 | Acquisitions (1) | Goodwill Impairment | Foreign currency translation | Other (4) | Balance at September 30, 2017 | |||||||||||||||||||
5.11 | $ | 92,966 | $ | — | $ | — | $ | — | $ | — | $ | 92,966 | ||||||||||||
Crosman | — | 49,880 | — | — | — | 49,880 | ||||||||||||||||||
Ergobaby | 61,031 | — | — | — | — | 61,031 | ||||||||||||||||||
Liberty | 32,828 | — | — | — | — | 32,828 | ||||||||||||||||||
Manitoba Harvest | 44,171 | — | — | 3,425 | — | 47,596 | ||||||||||||||||||
ACI | 58,019 | — | — | — | — | 58,019 | ||||||||||||||||||
Arnold (2) | 35,767 | — | (8,864 | ) | — | — | 26,903 | |||||||||||||||||
Clean Earth | 118,224 | 802 | — | — | — | 119,026 | ||||||||||||||||||
Sterno | 39,982 | 2,898 | — | — | 147 | 43,027 | ||||||||||||||||||
Corporate (3) | 8,649 | — | — | — | — | 8,649 | ||||||||||||||||||
Total | $ | 491,637 | $ | 53,580 | $ | (8,864 | ) | $ | 3,425 | $ | 147 | $ | 539,925 |
(1) | The purchase price allocation for Crosman is preliminary and is expected to be completed during the fourth quarter of 2017. Clean Earth, Sterno and Crosman each completed add-on acquisitions during 2017. The goodwill related to the Clean Earth acquisition is based on a preliminary purchase price allocation. Crosman and Sterno completed small add-on acquisitions during the third quarter of 2017, and the preliminary purchase price allocations for these add-on acquisitions have not been prepared yet. The goodwill related to these add-on acquisitions represents the excess of purchase price over net assets acquired at September 30, 2017. |
(2) | Arnold Magnetics has three reporting units PMAG, Flexmag and Precision Thin Metals with goodwill balances of $15.6 million, $4.8 million and $6.5 million, respectively. |
(3) | Represents goodwill resulting from purchase accounting adjustments not "pushed down" to the ACI segment. This amount is allocated back to the ACI segment for purposes of goodwill impairment testing. |
(4) | Represents the final settlement related to Sterno's acquisition of Sterno Home Inc. ("Sterno Home", formerly NII). |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Customer relationships | $ | 338,461 | $ | (96,449 | ) | $ | 242,012 | $ | 304,751 | $ | (79,607 | ) | $ | 225,144 | |||||||||
Technology and patents | 48,452 | (21,502 | ) | 26,950 | 44,710 | (18,290 | ) | 26,420 | |||||||||||||||
Trade names, subject to amortization | 180,565 | (19,194 | ) | 161,371 | 128,675 | (6,833 | ) | 121,842 | |||||||||||||||
Licensing and non-compete agreements | 7,865 | (6,365 | ) | 1,500 | 7,845 | (5,987 | ) | 1,858 | |||||||||||||||
Permits and airspace | 115,130 | (28,612 | ) | 86,518 | 113,295 | (21,531 | ) | 91,764 | |||||||||||||||
Distributor relations and other | 606 | (606 | ) | — | 606 | (606 | ) | — | |||||||||||||||
Total | 691,079 | (172,728 | ) | 518,351 | 599,882 | (132,854 | ) | 467,028 | |||||||||||||||
Trade names, not subject to amortization | 73,527 | — | 73,527 | 72,183 | — | 72,183 | |||||||||||||||||
Total intangibles, net | $ | 764,606 | $ | (172,728 | ) | $ | 591,878 | $ | 672,065 | $ | (132,854 | ) | $ | 539,211 |
October 1, through Dec. 31, 2017 | $ | 12,689 | ||
2018 | 49,367 | |||
2019 | 48,077 | |||
2020 | 47,592 | |||
2021 | 47,288 | |||
$ | 205,013 |
September 30, 2017 | December 31, 2016 | ||||||
Revolving Credit Facility | $ | 25,500 | $ | 4,400 | |||
Term Loan | 561,394 | 565,658 | |||||
Original issue discount | (3,777 | ) | (4,706 | ) | |||
Debt issuance costs - term loan | (7,677 | ) | (8,015 | ) | |||
Total debt | $ | 575,440 | $ | 557,337 | |||
Less: Current portion, term loan facilities | (5,685 | ) | (5,685 | ) | |||
Long term debt | $ | 569,755 | $ | 551,652 |
September 30, 2017 | December 31, 2016 | ||||||
Deferred debt issuance costs | $ | 20,142 | $ | 18,960 | |||
Accumulated amortization | (9,188 | ) | (6,248 | ) | |||
Deferred debt issuance costs, less accumulated amortization | $ | 10,954 | $ | 12,712 | |||
Balance Sheet classification: | |||||||
Other non-current assets | $ | 3,277 | $ | 4,698 | |||
Long-term debt | 7,677 | 8,014 | |||||
$ | 10,954 | $ | 12,712 |
September 30, 2017 | December 31, 2016 | ||||||
Other current liabilities | $ | 3,190 | $ | 4,010 | |||
Other noncurrent liabilities | 5,657 | 6,709 | |||||
Total fair value | $ | 8,847 | $ | 10,719 |
Fair Value Measurements at September 30, 2017 | |||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Liabilities: | |||||||||||||||
Put option of noncontrolling shareholders (1) | $ | (192 | ) | $ | — | $ | — | $ | (192 | ) | |||||
Contingent consideration - acquisitions (2) | (4,367 | ) | — | — | (4,367 | ) | |||||||||
Interest rate swap | (8,847 | ) | — | (8,847 | ) | — | |||||||||
Total recorded at fair value | $ | (13,406 | ) | $ | — | $ | (8,847 | ) | $ | (4,559 | ) |
(1) | Represents put option issued to noncontrolling shareholders in connection with the 5.11 Tactical and Liberty acquisitions. |
(2) | Represents potential earn-outs payable by Sterno Products for the acquisition of NII and Ergobaby in connection with their acquisition of Baby Tula. |
Fair Value Measurements at December 31, 2016 | |||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Equity method investment - FOX | $ | 141,767 | $ | 141,767 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Put option of noncontrolling shareholders | (180 | ) | — | — | (180 | ) | |||||||||
Contingent consideration - acquisitions | (4,830 | ) | — | — | (4,830 | ) | |||||||||
Interest rate swap | (10,719 | ) | — | (10,719 | ) | — | |||||||||
Total recorded at fair value | $ | 126,038 | $ | 141,767 | $ | (10,719 | ) | $ | (5,010 | ) |
2017 | 2016 | ||||||
Balance at January 1st | $ | (5,010 | ) | $ | (50 | ) | |
Contingent consideration - acquisition | — | (1,500 | ) | ||||
Balance at March 31st | $ | (5,010 | ) | $ | (1,550 | ) | |
Contingent consideration - acquisition | — | (3,780 | ) | ||||
Payment of contingent consideration | 463 | — | |||||
Balance at June 30th | $ | (4,547 | ) | $ | (5,330 | ) | |
Put option - noncontrolling shareholder | (12 | ) | (50 | ) | |||
Contingent consideration - payment | — | 450 | |||||
Balance at September 30th | $ | (4,559 | ) | $ | (4,930 | ) |
Fair Value Measurements at September 30, 2017 | Nine months ended | |||||||||||||
(in thousands) | Carrying Value | Level 1 | Level 2 | Level 3 | Expense | |||||||||
Goodwill (1) | 26,903 | — | — | 26,903 | 8,864 |
Fair Value Measurements at December 31, 2016 | Year ended | |||||||||||||
(in thousands) | Carrying Value | Level 1 | Level 2 | Level 3 | Expense | |||||||||
Goodwill | 35,767 | — | — | 35,767 | 16,000 | |||||||||
Property, Plant and Equipment (1) | — | — | — | — | 1,824 | |||||||||
Tradename (1) | — | — | — | — | 317 | |||||||||
Technology (1) | — | — | — | — | 3,460 | |||||||||
Customer relationships (1) | — | — | — | — | 2,426 | |||||||||
Permits (1) | — | — | — | — | 1,177 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Income (loss) from continuing operations attributable to Holdings | $ | 7,706 | $ | 47,862 | $ | (18,351 | ) | $ | 50,198 | |||||||
Less: Profit Allocation paid to Holders | — | 8,196 | 39,120 | 16,829 | ||||||||||||
Less: Effect of contribution based profit - Holding Event | 1,620 | 812 | 3,954 | 1,292 | ||||||||||||
Income (loss) from continuing operation attributable to common shares | $ | 6,086 | $ | 38,854 | $ | (61,425 | ) | $ | 32,077 | |||||||
Income from discontinued operations attributable to Holdings | $ | — | $ | 1,843 | $ | 340 | $ | 2,723 | ||||||||
Less: Effect of contribution based profit - Holding Event | — | — | — | — | ||||||||||||
Income from discontinued operations attributable to common shares | $ | — | $ | 1,843 | $ | 340 | $ | 2,723 | ||||||||
Basic and diluted weighted average common shares outstanding | 59,900 | 54,300 | 59,900 | 54,300 | ||||||||||||
Basic and fully diluted income (loss) per common share attributable to Holdings | ||||||||||||||||
Continuing operations | $ | 0.10 | $ | 0.72 | $ | (1.03 | ) | $ | 0.59 | |||||||
Discontinued operations | — | 0.03 | 0.01 | 0.05 | ||||||||||||
$ | 0.10 | $ | 0.75 | $ | (1.02 | ) | $ | 0.64 |
• | On January 26, 2017, the Company paid a distribution of $0.36 per share to holders of record of the Company's common shares as of January 19, 2017. This distribution was declared on January 5, 2017. |
• | On April 27, 2017, the Company paid a distribution of $0.36 per share to holders of record of the Company's common shares as of April 20, 2017. This distribution was declared on April 6, 2017. |
• | On July 27, 2017, the Company paid a distribution of $0.36 per share to holders of record of the Company's common shares as of July 20, 2017. The distribution was declared on July 6, 2017. |
• | On October 26, 2017, the Company paid a distribution of $0.36 per share to holders of record of the Company's common shares as of October 19, 2017. This distribution was declared on October 5, 2017. |
• | On October 30, 2017, the Company paid a distribution of $0.61423611 per share on the Company’s Series A Preferred Shares. The distribution on the Series A Preferred Shares covers the period from and including June 28, 2017, the original issue date of the Preferred Shares, up to, but excluding, October 30, 2017. This distribution was declared on October 5, 2017 and was payable to holders of record of the Company's Series A Preferred Shares as of October 15, 2017. |
Nine months ended September 30, 2017 | Year ended December 31, 2016 | ||||||
Warranty liability: | |||||||
Beginning balance | $ | 1,258 | $ | 1,259 | |||
Accrual | 507 | 252 | |||||
Warranty payments | (266 | ) | (253 | ) | |||
Other (1) | 509 | — | |||||
Ending balance | $ | 2,008 | $ | 1,258 |
% Ownership (1) September 30, 2017 | % Ownership (1) December 31, 2016 | ||||||
Primary | Fully Diluted | Primary | Fully Diluted | ||||
5.11 Tactical | 97.5 | 85.7 | 97.5 | 85.1 | |||
Crosman | 98.8 | 89.2 | N/a | N/a | |||
Ergobaby | 82.7 | 76.6 | 83.5 | 76.9 | |||
Liberty | 88.6 | 84.7 | 88.6 | 84.7 | |||
Manitoba Harvest | 76.6 | 67.0 | 76.6 | 65.6 | |||
ACI | 69.4 | 69.2 | 69.4 | 69.3 | |||
Arnold Magnetics | 96.7 | 84.7 | 96.7 | 84.7 | |||
Clean Earth | 97.5 | 79.8 | 97.5 | 79.8 | |||
Sterno Products | 100.0 | 89.5 | 100.0 | 89.5 |
(1) | The principal difference between primary and diluted percentages of our operating segments is due to stock option issuances of operating segment stock to management of the respective businesses. |
Noncontrolling Interest Balances | |||||||
(in thousands) | September 30, 2017 | December 31, 2016 | |||||
5.11 Tactical | $ | 7,387 | $ | 5,934 | |||
Crosman | 744 | N/a | |||||
Ergobaby | 21,282 | 18,647 | |||||
Liberty | 2,976 | 2,681 | |||||
Manitoba Harvest | 13,852 | 13,687 | |||||
ACI | (8,502 | ) | (11,220 | ) | |||
Arnold Magnetics | 1,342 | 1,536 | |||||
Clean Earth | 6,585 | 5,469 | |||||
Sterno Products | 1,860 | 1,305 | |||||
Allocation Interests | 100 | 100 | |||||
$ | 47,626 | $ | 38,139 |
Nine months ended September 30, | |||||
2017 | 2016 | ||||
United States Federal Statutory Rate | (35.0 | )% | 35.0 | % | |
State income taxes (net of Federal benefits) | (1.0 | ) | 0.2 | ||
Foreign income taxes | 4.5 | 1.4 | |||
Expenses of Compass Group Diversified Holdings LLC representing a pass through to shareholders (1) | 0.3 | 6.3 | |||
Impairment expense | 16.9 | — | |||
Effect of loss (gain) on equity method investment (2) | 11.0 | (33.3 | ) | ||
Impact of subsidiary employee stock options | 2.5 | 0.7 | |||
Credit utilization | (7.7 | ) | — | ||
Domestic production activities deduction | (2.3 | ) | (0.6 | ) | |
Effect of undistributed foreign earnings | 2.0 | 4.5 | |||
Non-recognition of NOL carryforwards at subsidiaries | (3.5 | ) | — | ||
Other | 1.1 | 1.6 | |||
Effective income tax rate | (11.2 | )% | 15.8 | % |
(1) | The effective income tax rate for the nine months ended September 30, 2017 and 2016 includes a loss at the Company's parent, which is taxed as a partnership. |
(2) | The investment in FOX was held at the Company's parent, which is taxed as a partnership, resulting in the gain or loss on the investment as a reconciling item in deriving the effective tax rate. |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Service cost | $ | 134 | $ | 111 | $ | 401 | $ | 325 | |||||||
Interest cost | 24 | 35 | 71 | 103 | |||||||||||
Expected return on plan assets | (39 | ) | (40 | ) | (117 | ) | (117 | ) | |||||||
Amortization of unrecognized loss | 63 | 45 | 188 | 132 | |||||||||||
Net periodic benefit cost | $ | 182 | $ | 151 | $ | 543 | $ | 443 |
• | North American base of operations; |
• | stable and growing earnings and cash flow; |
• | maintains a significant market share in defensible industry niche (i.e., has a "reason to exist"); |
• | solid and proven management team with meaningful incentives; |
• | low technological and/or product obsolescence risk; and |
• | a diversified customer and supplier base. |
• | utilizing structured incentive compensation programs tailored to each business to attract, recruit and retain talented managers to operate our businesses; |
• | regularly monitoring financial and operational performance, instilling consistent financial discipline, and supporting management in the development and implementation of information systems to effectively achieve these goals; |
• | assisting management in their analysis and pursuit of prudent organic cash flow growth strategies (both revenue and cost related); |
• | identifying and working with management to execute attractive external growth and acquisition opportunities; and |
• | forming strong subsidiary level boards of directors to supplement management in their development and implementation of strategic goals and objectives. |
• | first, to meet capital expenditure requirements, management fees and corporate overhead expenses; |
• | second, to fund distributions from the businesses to the Company; and |
• | third, to be distributed by the Trust to shareholders. |
Ownership Interest - September 30, 2017 | ||||||
Business | Acquisition Date | Primary | Diluted | |||
Advanced Circuits | May 16, 2006 | 69.4% | 69.2% | |||
Liberty Safe | March 31, 2010 | 88.6% | 84.7% | |||
Ergobaby | September 16, 2010 | 82.7% | 76.6% | |||
Arnold Magnetics | March 5, 2012 | 96.7% | 84.7% | |||
Clean Earth | August 7, 2014 | 97.5% | 79.8% | |||
Sterno Products | October 10, 2014 | 100.0% | 89.5% | |||
Manitoba Harvest | July 10, 2015 | 76.6% | 67% | |||
5.11 Tactical | August 31, 2016 | 97.5% | 85.7% | |||
Crosman | June 2, 2017 | 98.8% | 89.2% |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Net sales | $ | 323,957 | $ | 252,285 | $ | 921,330 | $ | 659,748 | |||||||
Cost of sales | 206,232 | 169,870 | 599,552 | 436,544 | |||||||||||
Gross profit | 117,725 | 82,415 | 321,778 | 223,204 | |||||||||||
Selling, general and administrative expense | 80,804 | 53,648 | 239,102 | 140,702 | |||||||||||
Fees to manager | 8,277 | 8,435 | 24,308 | 21,394 | |||||||||||
Amortization of intangibles | 14,167 | 8,423 | 39,256 | 23,966 | |||||||||||
Impairment expense | — | — | 8,864 | — | |||||||||||
Loss on disposal of assets | — | 551 | — | 7,214 | |||||||||||
Operating income | $ | 14,477 | $ | 11,358 | $ | 10,248 | $ | 29,928 |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||
(Pro forma) | (Pro forma) | ||||||||||||||
Net sales | $ | 72,005 | $ | 74,655 | $ | 228,471 | $ | 212,667 | |||||||
Cost of sales (1) | 37,452 | 46,797 | 141,590 | 123,857 | |||||||||||
Gross profit | 34,553 | 27,858 | 86,881 | 88,810 | |||||||||||
Selling, general and administrative expense (2) | 32,370 | 25,954 | 94,000 | 78,998 | |||||||||||
Fees to manager (3) | 250 | 250 | 750 | 750 | |||||||||||
Amortization of intangibles (4) | 2,186 | 2,047 | 6,673 | 6,140 | |||||||||||
Income (loss) from operations | $ | (253 | ) | $ | (393 | ) | $ | (14,542 | ) | $ | 2,922 |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||
(Pro forma) | (Pro forma) | ||||||||||||||
Net sales | $ | 34,449 | $ | 32,092 | $ | 85,848 | $ | 82,945 | |||||||
Cost of sales (1) | 29,034 | 23,543 | 67,088 | 61,012 | |||||||||||
Gross profit | 5,415 | 8,549 | 18,760 | 21,933 | |||||||||||
Selling, general and administrative expense | 5,121 | 3,780 | 13,715 | 11,111 | |||||||||||
Fees to manager (2) | 125 | 125 | 375 | 375 | |||||||||||
Amortization of intangibles (3) | 1,557 | 1,164 | 3,498 | 3,493 | |||||||||||
Income from operations | $ | (1,388 | ) | $ | 3,480 | $ | 1,172 | $ | 6,954 |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||
Net sales | $ | 27,835 | $ | 29,664 | $ | 77,737 | $ | 75,048 | |||||||
Cost of sales | 9,003 | 13,818 | 25,491 | 29,169 | |||||||||||
Gross profit | 18,832 | 15,846 | 52,246 | 45,879 | |||||||||||
Selling, general and administrative expense | 9,973 | 9,947 | 28,359 | 27,489 | |||||||||||
Fees to manager | 125 | 125 | 375 | 375 | |||||||||||
Amortization of intangibles | 2,850 | 552 | 8,784 | 1,700 | |||||||||||
Loss on disposal of assets | — | 551 | — | 7,214 | |||||||||||
Income from operations | $ | 5,884 | $ | 4,671 | $ | 14,728 | $ | 9,101 |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||
Net sales | $ | 18,423 | $ | 23,810 | $ | 66,008 | $ | 74,713 | |||||||
Cost of sales | 13,026 | 17,680 | 47,157 | 53,197 | |||||||||||
Gross profit | 5,397 | 6,130 | 18,851 | 21,516 | |||||||||||
Selling, general and administrative expense | 3,204 | 3,332 | 11,284 | 10,483 | |||||||||||
Fees to manager | 125 | 125 | 375 | 375 | |||||||||||
Amortization of intangibles | 18 | 256 | 292 | 779 | |||||||||||
Income from operations | $ | 2,050 | $ | 2,417 | $ | 6,900 | $ | 9,879 |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||
Net sales | $ | 13,948 | $ | 15,920 | $ | 42,625 | $ | 44,321 | |||||||
Cost of sales | 7,792 | 8,988 | 23,412 | 24,442 | |||||||||||
Gross profit | 6,156 | 6,932 | 19,213 | 19,879 | |||||||||||
Selling, general and administrative expense | 5,065 | 5,072 | 15,502 | 17,075 | |||||||||||
Fees to manager | 87 | 88 | 262 | 261 | |||||||||||
Amortization of intangibles | 1,173 | 1,218 | 3,374 | 3,408 | |||||||||||
Income (loss) from operations | $ | (169 | ) | $ | 554 | $ | 75 | $ | (865 | ) |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||
Net sales | $ | 22,436 | $ | 21,679 | $ | 66,404 | $ | 64,945 | |||||||
Cost of sales | 12,137 | 12,066 | 36,095 | 36,024 | |||||||||||
Gross profit | 10,299 | 9,613 | 30,309 | 28,921 | |||||||||||
Selling, general and administrative expense | 3,673 | 3,417 | 10,895 | 10,370 | |||||||||||
Fees to manager | 125 | 125 | 375 | 375 | |||||||||||
Amortization of intangibles | 310 | 312 | 933 | 935 | |||||||||||
Income from operations | $ | 6,191 | $ | 5,759 | $ | 18,106 | $ | 17,241 |
• | Permanent Magnet and Assemblies and Reprographics (PMAG) (historically approximately 70% of net sales) - High performance permanent magnets and magnetic assemblies with a wide variety of applications including precision motor/generator sensors as well as beam focusing and reprographics applications; |
• | Flexible Magnets ("Flexmag") (historically approximately 20% of net sales) - Flexible bonded magnetic materials for commercial printing, advertising, and industrial applications; and |
• | Precision Thin Metals ("PTM") (historically approximately 10% of net sales) - Ultra thin metal foil products utilizing magnetic and non- magnetic alloys. |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||
Net sales | $ | 26,489 | $ | 26,912 | $ | 79,421 | $ | 82,791 | |||||||
Cost of sales | 19,136 | 20,520 | 58,847 | 63,829 | |||||||||||
Gross profit | 7,353 | 6,392 | 20,574 | 18,962 | |||||||||||
Selling, general and administrative expense | 4,374 | 4,535 | 13,285 | 12,117 | |||||||||||
Fees to manager | 125 | 125 | 375 | 375 | |||||||||||
Amortization of intangibles | 854 | 881 | 2,601 | 2,642 | |||||||||||
Impairment expense | — | — | 8,864 | — | |||||||||||
Income (loss) from operations | $ | 2,000 | $ | 851 | $ | (4,551 | ) | $ | 3,828 |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||
Service revenues | $ | 55,676 | $ | 51,515 | $ | 153,370 | $ | 134,035 | |||||||
Cost of services | 39,787 | 36,863 | 110,639 | 95,967 | |||||||||||
Gross profit | 15,889 | 14,652 | 42,731 | 38,068 | |||||||||||
Selling, general and administrative expense | 6,782 | 7,352 | 25,205 | 22,263 | |||||||||||
Fees to manager | 125 | 125 | 375 | 375 | |||||||||||
Amortization of intangibles | 3,390 | 3,582 | 9,554 | 9,570 | |||||||||||
Income from operations | $ | 5,592 | $ | 3,593 | $ | 7,597 | $ | 5,860 |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||||
Net sales | $ | 52,696 | $ | 55,582 | $ | 163,092 | $ | 156,692 | |||||||
Cost of sales | 38,865 | 39,744 | 119,975 | 113,724 | |||||||||||
Gross Profit | 13,831 | 15,838 | 43,117 | 42,968 | |||||||||||
Selling, general and administrative expense | 7,466 | 8,556 | 23,872 | 23,568 | |||||||||||
Management fees | 125 | 125 | 375 | 375 | |||||||||||
Amortization of intangibles | 1,829 | 1,621 | 5,487 | 4,930 | |||||||||||
Income from operations | $ | 4,411 | $ | 5,536 | $ | 13,383 | $ | 14,095 |
Nine months ended | ||||||||
(in thousands) | September 30, 2017 | September 30, 2016 | ||||||
Cash provided by operations | $ | 59,236 | $ | 60,594 | ||||
Cash used investing activities | (62,956 | ) | (417,284 | ) | ||||
Cash provided by financing activities | 7,862 | 300,407 | ||||||
Effect of exchange rates on cash and cash equivalents | (2,427 | ) | (3,197 | ) | ||||
Increase (decrease) in cash and cash equivalents | $ | 1,715 | $ | (59,480 | ) |
(in thousands) | ||||
5.11 Tactical | $ | 185,750 | ||
Crosman | $ | 97,327 | ||
Ergobaby | $ | 66,448 | ||
Liberty | $ | 49,737 | ||
Manitoba Harvest | $ | 48,273 | ||
Advanced Circuits | $ | 95,064 | ||
Arnold Magnetics | $ | 72,715 | ||
Clean Earth | $ | 172,786 | ||
Sterno Products | $ | 75,127 |
Description of Required Covenant Ratio | Covenant Ratio Requirement | Actual Ratio | ||
Fixed Charge Coverage Ratio | greater than or equal to 1.50:1.0 | 3.12:1.0 | ||
Total Debt to EBITDA Ratio | less than or equal to 3.50:1.0 | 2.76:1.0 |
Nine months ended September 30, | |||||||
2017 | 2016 | ||||||
Interest on credit facilities | $ | 18,008 | $ | 12,612 | |||
Unused fee on Revolving Credit Facility | 2,143 | 1,356 | |||||
Amortization of original issue discount | 781 | 536 | |||||
Unrealized loss on interest rate derivatives (1) | 1,178 | 8,322 | |||||
Letter of credit fees | 63 | 79 | |||||
Other | 414 | 320 | |||||
Interest expense | $ | 22,587 | $ | 23,225 | |||
Average daily balance of debt outstanding | $ | 593,314 | $ | 403,988 | |||
Effective interest rate (1) | 5.1 | % | 7.7 | % |
Nine months ended September 30, | ||||||
2017 | 2016 | |||||
United States Federal Statutory Rate | (35.0 | )% | 35.0 | % | ||
State income taxes (net of Federal benefits) | (1.0 | ) | 0.2 | |||
Foreign income taxes | 4.5 | 1.4 | ||||
Expenses of Compass Group Diversified Holdings LLC representing a pass through to shareholders (1) | 0.3 | 6.3 | ||||
Impairment expense | 16.9 | — | ||||
Effect of loss (gain) on equity method investment (2) | 11.0 | (33.3 | ) | |||
Credit utilization | (7.7 | ) | — | |||
Impact of subsidiary employee stock options | 2.5 | 0.7 | ||||
Domestic production activities deduction | (2.3 | ) | (0.6 | ) | ||
Effect of undistributed foreign earnings | 2.0 | 4.5 | ||||
Non-recognition of NOL carryforwards at subsidiaries | (3.5 | ) | — | |||
Other | 1.1 | 1.6 | ||||
Effective income tax rate | (11.2 | )% | 15.8 | % |
Corporate | 5.11 | Crosman | Ergobaby | Liberty | Manitoba Harvest | ACI | Arnold | Clean Earth | Sterno | Consolidated | |||||||||||||||||||||||||||||||||
Net income (loss) | $ | (5,407 | ) | $ | (15,043 | ) | $ | (3,375 | ) | $ | 5,364 | $ | 2,522 | $ | (2,505 | ) | $ | 8,839 | $ | (10,282 | ) | $ | (1,980 | ) | $ | 6,348 | $ | (15,519 | ) | ||||||||||||||
Adjusted for: | |||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | — | (10,405 | ) | (962 | ) | 3,941 | 1,351 | (944 | ) | 2,755 | 270 | (1,041 | ) | 3,034 | (2,001 | ) | |||||||||||||||||||||||||||
Interest expense, net | 22,154 | 51 | 23 | — | — | 37 | (11 | ) | — | 245 | — | 22,499 | |||||||||||||||||||||||||||||||
Intercompany interest | (49,297 | ) | 10,697 | 2,561 | 4,628 | 2,989 | 3,211 | 6,194 | 5,194 | 10,108 | 3,715 | — | |||||||||||||||||||||||||||||||
Depreciation and amortization | 1,392 | 35,233 | 5,932 | 10,002 | 1,359 | 5,011 | 2,716 | 5,238 | 16,502 | 8,995 | 92,380 | ||||||||||||||||||||||||||||||||
EBITDA | (31,158 | ) | 20,533 | 4,179 | 23,935 | 8,221 | 4,810 | 20,493 | 420 | 23,834 | 22,092 | 97,359 | |||||||||||||||||||||||||||||||
Gain on sale of business | (340 | ) | — | — | — | — | — | — | — | — | — | (340 | ) | ||||||||||||||||||||||||||||||
(Gain) loss on sale of fixed assets | — | — | — | — | 46 | (227 | ) | (10 | ) | (9 | ) | (56 | ) | 486 | 230 | ||||||||||||||||||||||||||||
Noncontrolling shareholder compensation | — | 1,786 | — | 521 | 7 | 750 | 18 | 149 | 1,166 | 555 | 4,952 | ||||||||||||||||||||||||||||||||
Acquisition expenses and other | — | — | 1,836 | — | — | — | — | — | — | — | 1,836 | ||||||||||||||||||||||||||||||||
Impairment expense | — | — | — | — | — | — | — | 8,864 | — | — | 8,864 | ||||||||||||||||||||||||||||||||
Integration services fee | — | 2,333 | 375 | — | — | — | — | — | — | — | 2,708 | ||||||||||||||||||||||||||||||||
Loss on equity method investment | 5,620 | — | — | — | — | — | — | — | — | — | 5,620 | ||||||||||||||||||||||||||||||||
Gain on foreign currency transaction and other | (3,583 | ) | — | — | — | — | — | — | — | — | — | (3,583 | ) | ||||||||||||||||||||||||||||||
Management fees | 20,881 | 750 | 165 | 375 | 375 | 262 | 375 | 375 | 375 | 375 | 24,308 | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (8,580 | ) | $ | 25,402 | $ | 6,555 | $ | 24,831 | $ | 8,649 | $ | 5,595 | $ | 20,876 | $ | 9,799 | $ | 25,319 | $ | 23,508 | $ | 141,954 |
Corporate | 5.11 | Crosman | Ergobaby | Liberty | Manitoba Harvest | ACI | Arnold | Clean Earth | Sterno | Consolidated | |||||||||||||||||||||||||||||||
Net income (loss) (1) | $ | 49,623 | $ | (3,167 | ) | $ | 3,192 | $ | 3,942 | $ | (4,084 | ) | $ | 7,297 | $ | (3,961 | ) | $ | (3,544 | ) | $ | 4,783 | $ | 54,081 | |||||||||||||||||
Adjusted for: | Not Applicable | ||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | — | (1,963 | ) | 2,242 | 2,614 | (1,468 | ) | 3,846 | 2,486 | (832 | ) | 2,853 | 9,778 | ||||||||||||||||||||||||||||
Interest expense, net | 22,840 | 6 | — | — | 7 | — | (2 | ) | 341 | 12 | 23,204 | ||||||||||||||||||||||||||||||
Intercompany interest | (36,432 | ) | 1,206 | 3,405 | 3,172 | 2,932 | 5,619 | 5,046 | 9,156 | 5,896 | — | ||||||||||||||||||||||||||||||
Depreciation and amortization | 667 | 5,237 | 6,306 | 2,099 | 5,256 | 2,938 | 7,035 | 16,380 | 8,617 | 54,535 | |||||||||||||||||||||||||||||||
EBITDA | 36,698 | 1,319 | 15,145 | 11,827 | 2,643 | 19,700 | 10,604 | 21,501 | 22,161 | 141,598 | |||||||||||||||||||||||||||||||
Gain on sale of businesses | (2,134 | ) | — | — | — | — | — | — | — | — | (2,134 | ) | |||||||||||||||||||||||||||||
(Gain) loss on sale of fixed assets | — | — | — | 48 | 2 | (10 | ) | — | 375 | — | 415 | ||||||||||||||||||||||||||||||
Noncontrolling shareholder compensation | — | — | 585 | 327 | 564 | 18 | 192 | 853 | 472 | 3,011 | |||||||||||||||||||||||||||||||
Loss on disposal of assets | — | — | 7,214 | — | — | — | — | — | — | 7,214 | |||||||||||||||||||||||||||||||
Acquisition related expenses | 98 | 2,063 | 799 | — | — | — | — | 738 | 189 | 3,887 | |||||||||||||||||||||||||||||||
Integration services fee | — | 292 | — | — | 500 | — | — | — | — | 792 | |||||||||||||||||||||||||||||||
Gain on equity method investment | (58,680 | ) | — | — | — | — | — | — | — | (58,680 | ) | ||||||||||||||||||||||||||||||
Gain on foreign currency transaction and other | (2,396 | ) | — | — | — | — | — | — | — | — | (2,396 | ) | |||||||||||||||||||||||||||||
Management fees | 18,800 | 83 | 375 | 375 | 261 | 375 | 375 | 375 | 375 | 21,394 | |||||||||||||||||||||||||||||||
Adjusted EBITDA (2) | $ | (7,614 | ) | $ | 3,757 | $ | 24,118 | $ | 12,577 | $ | 3,970 | $ | 20,083 | $ | 11,171 | $ | 23,842 | $ | 23,197 | $ | 115,101 |
Nine Months Ended | |||||||
(in thousands) | September 30, 2017 | September 30, 2016 | |||||
Net income (loss) | $ | (15,519 | ) | $ | 54,554 | ||
Adjustment to reconcile net (income) loss to cash provided by operating activities: | |||||||
Depreciation and amortization | 88,659 | 53,972 | |||||
Impairment expense/ loss on disposal of assets | 8,864 | 7,214 | |||||
Gain on sale of businesses | (340 | ) | (2,134 | ) | |||
Amortization of debt issuance costs and original issue discount | 3,721 | 2,363 | |||||
Unrealized loss on interest rate hedges | 1,178 | 8,322 | |||||
Loss (gain) on equity method investment | 5,620 | (58,680 | ) | ||||
Noncontrolling shareholder charges | 4,952 | 3,012 | |||||
Excess tax benefit on stock compensation | (417 | ) | (366 | ) | |||
Provision for loss on receivables | 4,310 | 59 | |||||
Deferred taxes | (17,937 | ) | (4,280 | ) | |||
Other | 494 | 349 | |||||
Changes in operating assets and liabilities | (24,349 | ) | (3,791 | ) | |||
Net cash provided by operating activities | 59,236 | 60,594 | |||||
Plus: | |||||||
Unused fee on revolving credit facility | 2,143 | 1,355 | |||||
Integration services fee (1) | 2,708 | 792 | |||||
Successful acquisition costs | 1,836 | 3,888 | |||||
Excess tax benefit on stock compensation | 417 | 366 | |||||
Changes in operating assets and liabilities | 24,349 | 3,791 | |||||
Other | — | 245 | |||||
Less: | |||||||
Payments on swap | 3,050 | 3,114 | |||||
Maintenance capital expenditures: (2) | |||||||
Compass Group Diversified Holdings LLC | — | — | |||||
5.11 Tactical | 2,914 | 540 | |||||
Advanced Circuits | 219 | 2,845 | |||||
Arnold | 2,548 | 1,625 | |||||
Clean Earth | 3,591 | 4,504 | |||||
Crosman | 968 | — | |||||
Ergobaby | 788 | 441 | |||||
Liberty | 389 | 850 | |||||
Manitoba Harvest | 625 | 1,146 | |||||
Sterno Products | 1,373 | 1,408 | |||||
Tridien | — | 385 | |||||
Realized gain from foreign currency (3) | 3,583 | 2,396 | |||||
Other (4) | 3,980 | — | |||||
Estimated cash flow available for distribution and reinvestment | $ | 66,661 | $ | 51,777 | |||
Distribution paid in April 2017/2016 | $ | (21,564 | ) | $ | (19,548 | ) | |
Distribution paid in July 2017/2016 | (21,564 | ) | (19,548 | ) |
Distribution paid in October 2017/ 2016 | (21,564 | ) | (19,548 | ) | |||
$ | (64,692 | ) | $ | (58,644 | ) |
(3) | Reflects the foreign currency transaction gain or loss resulting from the Canadian dollar intercompany loans issued to Manitoba Harvest. |
(4) | Includes amounts for the establishment of accounts receivable reserves related to two retail customers who filed bankruptcy during the first and third quarters of 2017. |
2017 | ||||
Balance January 1, 2017 | $ | 141,767 | ||
Proceeds from sale of FOX shares | (136,147 | ) | ||
Mark-to-market adjustment - March 7, 2017 (1) | (5,620 | ) | ||
Balance September 30, 2017 | $ | — |
(in thousands) | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | ||||||||||||||
Long-term debt obligations (1) | $ | 688,792 | $ | 21,231 | $ | 89,699 | $ | 577,862 | $ | — | |||||||||
Operating lease obligations (2) | 92,734 | 12,231 | 24,744 | 17,333 | 38,426 | ||||||||||||||
Purchase obligations (3) | 408,105 | 237,110 | 105,495 | 65,500 | — | ||||||||||||||
Total (4) | $ | 1,189,631 | $ | 270,572 | $ | 219,938 | $ | 660,695 | $ | 38,426 |
(1) | Reflects commitment fees and letter of credit fees under our 2014 Revolving Credit Facility and amounts due, together with interest on our 2014 Term Loan and 2016 Incremental Term Loan. |
(2) | Reflects various operating leases for office space, manufacturing facilities and equipment from third parties with various lease terms. |
(3) | Reflects non-cancelable commitments as of September 30, 2017, including: (i) shareholder distributions of $86.3 million; (ii) estimated management fees of $32.8 million per year over the next five years, and (iii) other obligations including amounts due under employment agreements. Distributions to our shareholders are approved by our board of directors each quarter. The amount ultimately approved as future quarterly distributions may differ from the amount included in this schedule. |
(4) | The contractual obligation table does not include approximately $10.5 million in liabilities associated with unrecognized tax benefits as of September 30, 2017 as the timing of the recognition of this liability is not certain. The amount of the liability is not expected to significantly change in the next twelve months. |
ITEM 6. EXHIBITS | ||
Exhibit Number | Description | |
10.1* | ||
12.1* | ||
31.1* | ||
31.2* | ||
32.1*+ | ||
32.2*+ | ||
101.INS* | XBRL Instance Document | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith. |
+ | In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 34-47986, the certifications furnished in Exhibit 32.1 and Exhibit 32.2 hereto are deemed to accompany this Form 10-Q and will not be deemed "filed" for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act. |
COMPASS DIVERSIFIED HOLDINGS | |||
By: | /s/ Ryan J. Faulkingham | ||
Ryan J. Faulkingham | |||
Regular Trustee |
COMPASS GROUP DIVERSIFIED HOLDINGS LLC | |||
By: | /s/ Ryan J. Faulkingham | ||
Ryan J. Faulkingham | |||
Chief Financial Officer (Principal Financial and Accounting Officer) |
Description | ||
10.1* | ||
12.1* | ||
31.1* | ||
31.2* | ||
32.1*+ | ||
32.2*+ | ||
101.INS* | XBRL Instance Document | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith. |
+ | In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 34-47986, the certifications furnished in Exhibit 32.1 and Exhibit 32.2 hereto are deemed to accompany this Form 10-Q and will not be deemed "filed" for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act. |
1. | Defined Terms. Capitalized terms used herein but not otherwise defined herein shall have the meanings provided to such terms in the Credit Agreement (as amended by this Amendment). |
2. | Establishment of Refinancing Term Loan. |
3. | Conditions Precedent. This Amendment shall become effective as of the date hereof upon satisfaction of each of the following conditions precedent in each case in a manner reasonably satisfactory to the Administrative Agent: |
BORROWER: | COMPASS GROUP DIVERSIFIED HOLDINGS LLC, | |
a Delaware limited liability company | ||
By: /s/ Ryan Faulkingham | ||
Name: Ryan Faulkingham | ||
Title: Chief Financial Officer | ||
ADMINISTRATIVE AGENT: | BANK OF AMERICA, N.A., as Administrative Agent on | |
behalf of itself and on behalf of each Refinancing Lender | ||
By: /s/ Charlene Wright-Jones | ||
Name: Charlene Wright-Jones | ||
Title: Vice President | ||
Nine months ended September 30, | Fiscal Years Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in thousands, except ratio computation) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) from continuing operations | $ | (15,859 | ) | $ | 53,749 | $ | 8,991 | $ | 270,077 | $ | 71,052 | |||||||||
Interest | 22,499 | 24,651 | 25,924 | 27,060 | 19,378 | |||||||||||||||
Earnings available for fixed charges | $ | 6,640 | $ | 78,400 | $ | 34,915 | $ | 297,137 | $ | 90,430 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest | $ | 22,499 | $ | 24,651 | $ | 25,924 | $ | 27,060 | $ | 19,378 | ||||||||||
Ratio of earnings to combined fixed charges and preferred share distributions (1) | — | 3.2 | 1.3 | 11.0 | 4.7 |
1. | I have reviewed this Quarterly Report on Form 10-Q of Compass Group Diversified Holdings LLC (the “registrant”); |
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 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 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 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. |
/s/ Alan B. Offenberg | |
Alan B. Offenberg | |
Chief Executive Officer of Compass Group Diversified Holdings LLC (Principal executive officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Compass Diversified Holdings and Compass Group Diversified Holdings LLC (each, the “registrant”); |
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 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 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 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. |
/s/ Ryan J. Faulkingham | |
Ryan J. Faulkingham | |
Regular Trustee Compass, Diversified Holdings and Chief Financial Officer, Compass Group Diversified Holdings LLC (Principal Financial and Accounting Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Compass Group Diversified Holdings LLC. |
Dated: | 11/8/2017 | /s/ Alan B. Offenberg |
Alan B. Offenberg | ||
Chief Executive Officer, Compass Group Diversified Holdings LLC |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Compass Diversified Holdings and Compass Group Diversified Holdings LLC. |
Dated: | 11/8/2017 | /s/ Ryan J. Faulkingham |
Ryan J. Faulkingham | ||
Regular Trustee, Compass Diversified Holdings and Chief Financial Officer, Compass Group Diversified Holdings LLC |
Document and Entity Information - shares |
9 Months Ended | |
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Sep. 30, 2017 |
Nov. 01, 2017 |
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Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Compass Diversified Holdings | |
Entity Central Index Key | 0001345126 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 59,900,000 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
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Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable | $ 10,469 | $ 5,511 |
Accumulated amortization | $ 9,188 | $ 6,248 |
Trust shares, par value (usd per share) | ||
Trust shares, authorized (shares) | 500,000,000 | 500,000,000 |
Trust shares, issued (shares) | 59,900,000 | 59,900,000 |
Trust shares, outstanding (shares) | 59,900,000 | 59,900,000 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 8,356 | $ 50,223 | $ (15,519) | $ 54,554 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | 3,370 | (1,945) | 6,955 | 3,275 |
Pension benefit liability, net | (4) | (765) | 376 | (1,288) |
Other comprehensive income (loss) | 3,366 | (2,710) | 7,331 | 1,987 |
Total comprehensive income (loss), net of tax | 11,722 | 47,513 | (8,188) | 56,541 |
Less: Net income attributable to noncontrolling interests | 650 | 518 | 2,492 | 1,633 |
Less: Other comprehensive income (loss) attributable to noncontrolling interests | 675 | (268) | 1,336 | 929 |
Total comprehensive income (loss) attributable to Holdings, net of tax | $ 10,397 | $ 47,263 | $ (12,016) | $ 53,979 |
Organization and Business Operations |
9 Months Ended |
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Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Operations | Organization and Business Operations Compass Diversified Holdings, a Delaware statutory trust (the "Trust" or "Holdings"), was incorporated in Delaware on November 18, 2005. Compass Group Diversified Holdings, LLC, a Delaware limited liability company (the "Company" or "CODI"), was also formed on November 18, 2005 with equity interests which were subsequently reclassified as the "Allocation Interests". The Trust and the Company were formed to acquire and manage a group of small and middle-market businesses headquartered in North America. In accordance with the amended and restated Trust Agreement, dated as of December 6, 2016 (the "Trust Agreement"), the Trust is sole owner of 100% of the Trust Interests (as defined in the Company’s amended and restated operating agreement, dated as of December 6, 2016 (as amended and restated, the "LLC Agreement")) of the Company and, pursuant to the LLC Agreement, the Company has, outstanding, the identical number of Trust Interests as the number of outstanding shares of the Trust. The Company is the operating entity with a board of directors and other corporate governance responsibilities, similar to that of a Delaware corporation. The Company is a controlling owner of nine businesses, or reportable operating segments, at September 30, 2017. The segments are as follows: 5.11 Acquisition Corp. ("5.11" or "5.11 Tactical"), Crosman Corp. ("Crosman"), The Ergo Baby Carrier, Inc. ("Ergobaby"), Liberty Safe and Security Products, Inc. ("Liberty Safe" or "Liberty"), Fresh Hemp Foods Ltd. ("Manitoba Harvest"), Compass AC Holdings, Inc. ("ACI" or "Advanced Circuits"), AMT Acquisition Corporation ("Arnold" or "Arnold Magnetics"), Clean Earth Holdings, Inc. ("Clean Earth"), and Sterno Products, LLC ("Sterno" or "Sterno Products"). Refer to Note E - "Operating Segment Data" for further discussion of the operating segments. Compass Group Management LLC, a Delaware limited liability company ("CGM" or the "Manager"), manages the day to day operations of the Company and oversees the management and operations of our businesses pursuant to a management services agreement ("MSA"). |
Presentation and Principles of Consolidation |
9 Months Ended |
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Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Presentation and Principles of Consolidation | Presentation and Principles of Consolidation The condensed consolidated financial statements for the three and nine month periods ended September 30, 2017 and September 30, 2016, are unaudited, and in the opinion of management, contain all adjustments necessary for a fair presentation of the condensed consolidated financial statements. Such adjustments consist solely of normal recurring items. Interim results are not necessarily indicative of results for a full year or any subsequent interim period. The condensed consolidated financial statements and notes are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP" or "GAAP") and presented as permitted by Form 10-Q and do not contain certain information included in the annual consolidated financial statements and accompanying notes of the Company. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Seasonality Earnings of certain of the Company’s operating segments are seasonal in nature. Earnings from Liberty are typically lowest in the second quarter due to lower demand for safes at the onset of summer. Crosman typically has higher sales in the third and fourth quarter each year, reflecting the hunting and holiday seasons. Earnings from Clean Earth are typically lower during the winter months due to the limits on outdoor construction and development activity because of the colder weather in the Northeastern United States. Sterno Products typically has higher sales in the second and fourth quarter of each year, reflecting the outdoor summer and holiday seasons, respectively. Consolidation The condensed consolidated financial statements include the accounts of Holdings and all majority owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Discontinued Operations During the third quarter of 2016, the Company completed the sale of Tridien Medical, Inc. ("Tridien"). The results of operations of Tridien are reported as discontinued operations in the condensed consolidated statements of operations for the three and nine months ended September 30, 2016. Refer to Note D - "Discontinued Operations" for additional information. Unless otherwise indicated, the disclosures accompanying the condensed consolidated financial statements reflect the Company's continuing operations. Recently Adopted Accounting Pronouncements In January 2017, the FASB issued new accounting guidance to simplify the accounting for goodwill impairment. The guidance removes step two of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the new guidance, a goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains largely unchanged. Entities will continue to have the option to perform a qualitative test to determine if a quantitative test is necessary. The guidance is effective for fiscal years and interim periods within those years, after December 31, 2019, with early adoption permitted for any goodwill impairment tests performed after January 1, 2017 and will be applied prospectively. The Company adopted this guidance early, effective January 1, 2017, on a prospective basis, and will apply the guidance as necessary to annual and interim goodwill testing performed subsequent to January 1, 2017. Recently Issued Accounting Pronouncements In March 2017, the FASB issued new guidance that will require employers that sponsor defined benefit plans to present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period, and requires the other components of net periodic pension cost to be presented in the income statement separately from the service component cost and outside a subtotal of income from operations. The new guidance shall be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company's Arnold business segment has a defined benefit plan covering substantially all of Arnold's employees at its Switzerland location. The adoption of this guidance is not expected to have a material impact upon our financial condition or results of operations. In January 2017, the FASB issued new guidance that changes the definition of a business to assist entities in evaluating when a set of transferred assets and activities constitutes a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If so, the set of transferred asset and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in the new revenue recognition guidance. The new standard will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The adoption of this guidance is not expected to have a material impact upon our financial condition or results of operations. In August 2016, the FASB issued an accounting standard update which updates the guidance as to how certain cash receipts and cash payments should be presented and classified within the statement of cash flows. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In February 2016, the FASB issued an accounting standard update related to the accounting for leases which will require an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. The standard update offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, the new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires modified retrospective adoption, with early adoption permitted. Accordingly, this standard is effective for the Company on January 1, 2019. The Company is currently assessing the impact of the new standard on our consolidated financial statements. In May 2014, the FASB issued a comprehensive new revenue recognition standard. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard is designed to create greater comparability for financial statement users across industries, jurisdictions and capital markets and also requires enhanced disclosures. The new standard will be effective for the Company beginning January 1, 2018. The FASB issued four subsequent standards in 2016 containing implementation guidance related to the new standard. These standards provide additional guidance related to principal versus agent considerations, licensing, and identifying performance obligations. Additionally, these standards provide narrow-scope improvements and practical expedients as well as technical corrections and improvements. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company will be adopting the standard using the modified retrospective method effective January 1, 2018. The Company has developed implementation procedures specific to each of its reportable segments. The Company has designed these procedures to assess the impact that the new revenue standard will have on the Company’s financial statements and to make any changes necessary to its current accounting practices and internal controls over financial reporting. The Company expects to complete the implementation procedures during the fourth quarter of 2017. The Company has identified certain differences as it relates to the concepts of variable consideration, consideration payable to a customer and the focus on control to determine when and how revenue should be recognized (i.e. point in time versus over time) during the implementation process. Although certain differences have been identified around variable consideration and consideration payable to a customer, the total impact on each reportable segment will not be material to the financial statements. The Company has identified two reportable segments where revenue recognition will change to over time recognition from historical point in time revenue recognition. Although the timing of revenue recognition for these two reportable segments will change, these changes will not have a material impact on the Company’s financial statements. The Company expects to adopt certain practical expedients and make certain policy elections related to the accounting for significant financing components, sales taxes, shipping and handling, costs to obtain a contract and immaterial promised goods or services which mitigates any potential differences. In addition, the Company is currently analyzing our internal control over financial reporting framework to determine if controls should be added or modified as a result of adopting this standard, and reviewing the tax impact, if any, the option of the new standard may have. We also expect that the adoption of the new standard will result in expanded and disaggregated disclosure requirements. |
Acquisition |
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Acquisitions | Acquisitions Acquisition of Crosman On June 2, 2017, CBCP Acquisition Corp. (the "Buyer"), a wholly owned subsidiary of the Company, entered into an equity purchase agreement pursuant to which it acquired all of the outstanding equity interests of Bullseye Acquisition Corporation, the indirect owner of the equity interests of Crosman Corp. ("Crosman"). Crosman is a designer, manufacturer and marketer of airguns, archery products, laser aiming devices and related accessories. Headquartered in Bloomfield, New York, Crosman serves over 425 customers worldwide, including mass merchants, sporting goods retailers, online channels and distributors serving smaller specialty stores and international markets. Its diversified product portfolio includes the widely known Crosman, Benjamin and CenterPoint brands. The Company made loans to, and purchased a 98.9% controlling interest in, Crosman. The purchase price, including proceeds from noncontrolling interests and net of transaction costs, was approximately $150.4 million. Crosman management invested in the transaction along with the Company, representing approximately 1.1% of the initial noncontrolling interest on a primary and fully diluted basis. The fair value of the noncontrolling interest was determined based on the enterprise value of the acquired entity multiplied by the ratio of the number of shares acquired by the minority holders to total shares. The transaction was accounted for as a business combination. CGM acted as an advisor to the Company in the acquisition and will continue to provide integration services during the first year of the Company's ownership of Crosman. CGM will receive integration service fees of $1.5 million payable quarterly over a twelve month period as services are rendered beginning in the quarter ended September 30, 2017. The Company incurred $1.5 million of transaction costs in conjunction with the Crosman acquisition, which was included in selling, general and administrative expense in the consolidated statements of income during the second quarter of 2017. The results of operations of Crosman have been included in the consolidated results of operations since the date of acquisition. Crosman's results of operations are reported as a separate operating segment as a branded consumer business. The table below provides the preliminary recording of assets acquired and liabilities assumed as of the acquisition date.
(1) Includes $18.0 million of gross contractual accounts receivable of which $1.2 million was not expected to be collected. The fair value of accounts receivable approximated book value acquired. The allocation of the purchase price presented above is based on management's estimate of the fair values using valuation techniques including income, cost and market approach. In estimating the fair value of the acquired assets and assumed liabilities, the fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates and estimated discount rates. Current and noncurrent assets and current and other liabilities are valued at historical carrying values. Property, plant and equipment is valued through a purchase price appraisal and will be depreciated on a straight-line basis over the respective remaining useful lives of the assets. Goodwill is calculated as the excess of the consideration transferred over the fair value of the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and non-contractual relationships, as well as expected future synergies. The goodwill of $48.1 million reflects the strategic fit of Crosman in the Company's branded consumer business and is not expected to be deductible for income tax purposes. The purchase accounting for Crosman is expected to be finalized during the fourth quarter of 2017. The intangible assets recorded related to the Crosman acquisition are as follows (in thousands):
The tradename was valued at $51.6 million using a multi-period excess earnings methodology. The customer relationships intangible asset was valued at $28.7 million using the distributor method, a variation of the multi-period excess earnings methodology, in which an asset is valuable to the extent it enables its owners to earn a return in excess of the required returns on the other assets utilized in the business. The technology was valued at $2.4 million using a relief from royalty method. Acquisition of 5.11 Tactical On August 31, 2016, 5.11 ABR Merger Corp. ("Merger Sub"), a wholly owned subsidiary of 5.11 ABR Corp. ("Parent"), which in turn is a wholly owned subsidiary of the Company, merged with and into 5.11 Tactical, with 5.11 Tactical as the surviving entity, pursuant to an agreement and plan of merger among Merger Sub, Parent, 5.11 Tactical, and TA Associates Management L.P. entered into on July 29, 2016. 5.11 Tactical is a leading provider of purpose-built tactical apparel and gear for law enforcement, firefighters, EMS, and military special operations as well as outdoor and adventure enthusiasts. 5.11 is a brand known for innovation and authenticity, and works directly with end users to create purpose-built apparel and gear designed to enhance the safety, accuracy, speed and performance of tactical professionals and enthusiasts worldwide. Headquartered in Irvine, California, 5.11 operates sales offices and distribution centers globally, and 5.11 products are widely distributed in uniform stores, military exchanges, outdoor retail stores, its own retail stores and on 511tactical.com. The Company made loans to, and purchased a 97.5% controlling interest in, 5.11 ABR Corp. The purchase price, including proceeds from noncontrolling interest and net of transaction costs, was approximately $408.2 million. 5.11 management invested in the transaction along with the Company, representing approximately 2.5% initial noncontrolling interest on a primary and fully diluted basis. The fair value of the noncontrolling interest was determined based on the enterprise value of the acquired entity multiplied by the ratio of the number of shares acquired by the minority holders to total shares. The transaction was accounted for as a business combination. CGM acted as an advisor to the Company in the acquisition and will continue to provide integration services during the first year of the Company's ownership of 5.11. CGM received integration service fees of $3.5 million payable quarterly over a twelve month period as services are rendered beginning in the quarter ended December 31, 2016. The results of operations of 5.11 have been included in the consolidated results of operations since the date of acquisition. 5.11's results of operations are reported as a separate operating segment. The Company incurred $2.1 million of transaction costs in conjunction with the 5.11 acquisition, which was included in selling, general and administrative expense in the consolidated statements of income during the year of acquisition. The allocation of the purchase price, which was finalized during the fourth quarter of 2016, was based upon management's estimate of the fair values using valuation techniques including income, cost and market approaches. In estimating the fair value of the acquired assets and assumed liabilities, the fair value estimates were based on, but not limited to, expected future revenue and cash flows, expected future growth rates and estimated discount rates. Current and noncurrent assets and current and other liabilities were estimated at their historical carrying values. Property, plant and equipment was valued through a purchase price appraisal and will be depreciated on a straight-line basis over the respective remaining useful lives. Goodwill was calculated as the excess of the consideration transferred over the fair value of the identifiable net assets and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and non-contractual relationships, as well as expected future synergies. The goodwill of $93.0 million reflects the strategic fit of 5.11 in the Company's branded consumer business and is not expected to be deductible for income tax purposes. The customer relationships intangible asset was valued at $75.2 million using an excess earnings methodology, in which an asset is valuable to the extent it enables its owners to earn a return in excess of the required returns on and of the other assets utilized in the business. The tradename intangible asset ($48.7 million) and the design patent technology asset ($4.0 million) were valued using a royalty savings methodology, in which an asset is valuable to the extent that the ownership of the asset relieves the company from the obligation of paying royalties for the benefits generated by the asset. Unaudited pro forma information The following unaudited pro forma data for the nine months ended September 30, 2017 and the three and nine months ended September 30, 2016 gives effect to the acquisition of Crosman and 5.11 Tactical, as described above, as if the acquisitions had been completed as of January 1, 2016, and the sale of Tridien as if the disposition had been completed on January 1, 2016. The pro forma data gives effect to historical operating results with adjustments to interest expense, amortization and depreciation expense, management fees and related tax effects. The information is provided for illustrative purposes only and is not necessarily indicative of the operating results that would have occurred if the transaction had been consummated on the date indicated, nor is it necessarily indicative of future operating results of the consolidated companies, and should not be construed as representing results for any future period.
Other acquisitions Ergobaby On May 11, 2016, the Company's Ergobaby subsidiary acquired all of the outstanding membership interests in New Baby Tula LLC ("Baby Tula"), a maker of premium baby carriers, toddler carriers, slings, blankets and wraps. The purchase price was $73.8 million, net of transaction costs, plus a potential earn-out of $8.2 million based on 2017 financial performance. Ergobaby paid $0.8 million in transaction costs in connection with the acquisition. Ergobaby funded the acquisition and payment of related transaction costs through the issuance of an additional $68.2 million in intercompany loans with the Company, and the issuance of $8.2 million in Ergobaby shares to the selling shareholders. Ergobaby recorded a purchase price allocation of $13.2 million in goodwill, which is expected to be deductible for income tax purposes, $55.3 million in intangible assets comprised of $52.9 million in finite lived tradenames, $1.7 million in non-compete agreements, $0.7 million in customer relationships, and $4.8 million in inventory step-up. In addition, the earn-out provision of the purchase price was allocated a fair value of $3.8 million. The remainder of the purchase consideration was allocated to net assets acquired. The Company finalized the purchase price for the Baby Tula acquisition during the fourth quarter of 2016. Clean Earth On June 1, 2016, the Company's Clean Earth subsidiary acquired certain of the assets and liabilities of EWS Alabama, Inc. ("EWS"). Clean Earth funded the acquisition and the related transaction costs through the issuance of additional intercompany debt with the Company. Based in Glencoe, Alabama, EWS provides a range of hazardous and non-hazardous waste management services from a fully permitted hazardous waste RCRA Part B facility. In connection with the acquisition, Clean Earth recorded a purchase price allocation of $3.6 million in goodwill and $12.1 million in intangible assets. On April 15, 2016, Clean Earth acquired certain assets of Phoenix Soil, LLC ("Phoenix Soil") and WIC, LLC (together with Phoenix Soil, the "Sellers"). Phoenix Soil is based in Plainville, Connecticut and provides environmental services for nonhazardous contaminated soil materials with a primary focus on soil. Phoenix Soil recently completed its transition to a new 58,000 square foot thermal desorption facility owned by WIC, LLC. The acquisition increased Clean Earth's soil treatment capabilities and expanded its geographic footprint into New England. Clean Earth financed the acquisition and payment of related transaction costs through the issuance of additional intercompany loans with the Company. In connection with the acquisition, Clean Earth recorded a purchase price allocation of $3.2 million in goodwill and $5.6 million in intangible assets. Sterno Products On January 22, 2016, Sterno Products, a wholly owned subsidiary of the Company, acquired all of the outstanding stock of Northern International, Inc. ("NII"), for a total purchase price of approximately $35.8 million (C$50.6 million), plus a potential earn-out opportunity payable over the next two years up to a maximum amount of $1.8 million (C$2.5 million), and is subject to working capital adjustments. The contingent consideration was fair valued at $1.5 million, based on probability weighted models of the achievement of certain performance based financial targets. Headquartered in Coquitlam, British Columbia, Canada, NII sells flameless candles and outdoor lighting products through the retail segment. Sterno Products financed the acquisition and payment of the related transaction costs through the issuance of an additional $37.0 million in intercompany loans with the Company. In connection with the acquisition, Sterno recorded a purchase price allocation of $6.0 million of goodwill, which is not expected to be deductible for income tax purposes, $12.7 million in intangible assets and $1.2 million in inventory step-up. In addition, the earn-out provision of the purchase price was allocated a fair value of $1.5 million. The remainder of the purchase consideration was allocated to net assets acquired. Sterno Products incurred $0.4 million in acquisition related costs in connection with the NII acquisition. |
Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations Sale of Tridien On September 21, 2016, the Company sold its majority owned subsidiary, Tridien, based on an enterprise value of $25 million. After the allocation of the sale proceeds to noncontrolling equity holders and the payment of transaction expenses, the Company received approximately $22.7 million in net proceeds at closing related to its debt and equity interests in Tridien. The Company recognized a gain of $1.7 million for the year ended December 31, 2016 as a result of the sale of Tridien. Approximately $1.6 million of the proceeds received by the Company from the sale of Tridien have been reserved to support the Company’s indemnification obligations for future claims against Tridien that the Company may be liable for under the terms of the Tridien sale agreement. Operating results of discontinued operations Summarized operating results of Tridien for the three and nine months ended September 30, 2016 are as follows:
(1) The results for the three and nine months ended September 30, 2016 exclude $0.4 million and $1.1 million, respectively, of intercompany interest expense. Gain on sale of businesses During the first quarter of 2017, the Company settled the remaining outstanding escrow items related to the sale of American Furniture Manufacturing, Inc. in 2015, and received a settlement related to the CamelBak Products, LLC business, which was also sold in 2015. As a result of these transactions, the Company recognized a gain on sale of discontinued operations of $0.3 million for the nine months ended September 30, 2017. |
Operating Segment Data |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segment Data | Operating Segment Data At September 30, 2017, the Company had nine reportable operating segments. Each operating segment represents a platform acquisition. The Company’s operating segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. A description of each of the reportable segments and the types of products and services from which each segment derives its revenues is as follows:
The tabular information that follows shows data for each of the operating segments reconciled to amounts reflected in the consolidated financial statements. The results of operations of each of the operating segments are included in consolidated operating results as of their date of acquisition. There were no significant inter-segment transactions. Summary of Operating Segments
Geographic Information
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Investment in Fox |
9 Months Ended |
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Sep. 30, 2017 | |
Equity [Abstract] | |
Investment in Fox | Investment in FOX Fox Factory Holdings Corp. ("FOX"), a former majority owned subsidiary of the Company that is publicly traded on the NASDAQ Stock Market under the ticker "FOXF," is a designer, manufacturer and marketer of high-performance ride dynamic products used primarily for bicycles, side-by-side vehicles, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles. The Company held a 41%, ownership interest in FOX as of January 1, 2016, and a 14% ownership interest as of January 1, 2017. The investment in FOX was accounted for using the fair value option. In March 2016, FOX closed on a secondary public offering (the "March 2016 Offering") of 2,500,000 FOX common shares held by the Company. Concurrently with the closing of the March 2016 Offering, FOX repurchased 500,000 shares of FOX common shares directly from the Company. As a result of the sale of shares through the March 2016 Offering and the repurchase of shares by FOX, the Company sold a total of 3,000,000 shares of FOX common stock, with total net proceeds of approximately $47.7 million. Upon completion of the March 2016 Offering and repurchase of shares by FOX, the Company's ownership interest in FOX was reduced from approximately 41% to 33%. In August 2016, FOX closed on a secondary public offering (the "August Offering") of 4,025,000 shares held by certain FOX shareholders, including the Company. The Company sold a total of 3,500,000 shares of FOX common stock in the August Offering, for total net proceeds of $63.0 million. Upon completion of the August Offering, the Company's ownership of FOX decreased from approximately 33% to approximately 23%. In November 2016, FOX closed on a secondary public offering (the "November Offering") of 3,500,000 shares of FOX common stock held by the Company, for total net proceeds of $71.8 million. Upon completion of the November Offering, the Company's ownership of FOX decreased from approximately 23% to approximately 14%. The Company's investment in FOX had a fair value of $141.8 million on December 31, 2016 based on the closing price of FOX shares on that date. In March 2017, FOX closed on a secondary public offering (the "March 2017 Offering") through which the Company sold their remaining 5,108,718 shares in FOX for total net proceeds of $136.1 million. Subsequent to the March 2017 Offering, the Company no longer holds an ownership interest in FOX. |
Property, Plant and Equipment and Inventory |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment and Inventory | Property, Plant and Equipment and Inventory Property, plant and equipment Property, plant and equipment is comprised of the following at September 30, 2017 and December 31, 2016 (in thousands):
Depreciation expense was $8.7 million and $24.5 million for the three and nine months ended September 30, 2017, and $7.3 million and $19.5 million for the three and nine months ended September 30, 2016, respectively. Inventory Inventory is comprised of the following at September 30, 2017 and December 31, 2016 (in thousands):
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets As a result of acquisitions of various businesses, the Company has significant intangible assets on its balance sheet that include goodwill and indefinite-lived intangibles. The Company’s goodwill and indefinite-lived intangibles are tested and reviewed for impairment annually as of March 31st or more frequently if facts and circumstances warrant by comparing the fair value of each reporting unit to its carrying value. Each of the Company’s businesses represent a reporting unit, except Arnold, which comprises three reporting units. Goodwill 2017 Annual goodwill impairment testing The Company uses a qualitative approach to test goodwill for impairment by first assessing qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment testing. The qualitative factors we consider include, in part, the general macroeconomic environment, industry and market specific conditions for each reporting unit, financial performance including actual versus planned results and results of relevant prior periods, operating costs and cost impacts, as well as issues or events specific to the reporting unit. At March 31, 2017, we determined that the Manitoba Harvest reporting unit required further quantitative testing (Step 1) because we could not conclude that the fair value of the reporting unit exceeds its carrying value based on qualitative factors alone. The Company utilized an income approach to perform the Step 1 testing at Manitoba Harvest. The weighted average cost of capital used in the income approach for Manitoba Harvest was 12.0%. Results of the Step 1 quantitative testing of Manitoba Harvest indicated that the fair value of Manitoba Harvest exceeded its carrying value by 15.0%. Manitoba Harvest's goodwill balance as of the date of the annual impairment testing was approximately $44.5 million. For the reporting units that were tested qualitatively, the Company concluded that the results of the qualitative analysis indicated that the fair value of those reporting units exceeded their carrying value and that a quantitative analysis was not necessary. Manitoba Harvest The Company performed Step 1 testing during the 2017 annual impairment testing for Manitoba Harvest. Subsequent to the annual impairment test, the Company has compared the Manitoba Harvest operating results to the forecasts used in the Step 1 testing and has noted no material variances in the results. However, there is a significant degree of uncertainty inherent in the assumptions used to develop the forecast amounts used in the annual impairment test given the changing nature of consumer tastes, particularly related to future years. Therefore, the results of the forecast process for 2018, which are expected to be finalized in the fourth quarter of 2017, may make it necessary to perform interim goodwill impairment testing at Manitoba Harvest at December 31, 2017. 2016 Interim goodwill impairment testing Arnold As a result of decreases in forecasted revenue, operating income and cash flows at Arnold, as well as a shortfall in revenue and operating income during the latter half of 2016 as compared to budgeted amounts, the Company determined that it was necessary to perform interim goodwill impairment testing on each of the three reporting units at Arnold. The Company performed Step 1 of the goodwill impairment assessment at December 31, 2016. In Step 1 of the goodwill impairment test, the Company compared the fair value of the reporting units to the carrying amount. Based on the results of the valuation, the fair value of the Flexmag and PTM reporting units exceeded the carrying amount, therefore, no additional goodwill testing was required. The results of the Step 1 test for the PMAG unit indicated a potential impairment of goodwill and the Company performed the second step of goodwill impairment testing (Step 2) to determine the amount of impairment of the PMAG reporting unit. In the first test of goodwill impairment testing, we compare the fair value of each reporting unit to its carrying amount. For purposes of the Step 1 for the Arnold reporting units, we estimated the fair value of the reporting unit using an income approach, whereby we estimate the fair value of a reporting unit based on the present value of future cash flows. Cash flow projections are based on management's estimate of revenue growth rates and operating margins and take into consideration industry and market conditions as well as company and reporting unit specific economic factors. The discount rate used is based on the weighted average cost of capital adjusted for the relevant risk associated with the business specific characteristics and the uncertainty associated with the reporting unit's ability to execute on the projected cash flows. For the Step 1 quantitative impairment testing for Arnold's reporting units, we used only an income approach because we determined that the guideline public company comparables for PMAG, Flexmag and PTM were not representative of these three reporting units. In the income approach, we used a weighted average cost of capital of 12.5% for PMAG, 12.0% for Flexmag and 13.0% for PTM. The Company had not completed the Step 2 analysis as of December 31, 2016, and therefore estimated a range of impairment loss of $14 million to $19 million based on the value of the total invested capital of the PMAG unit as well as the results of the Step 1 testing of the fair value of PMAG. The Company recorded an estimated impairment loss for PMAG of $16 million at December 31, 2016 based on that range. The Company completed the Step 2 goodwill impairment test of the PMAG reporting unit in the first quarter of 2017, and the results indicated total impairment of the goodwill of the PMAG reporting unit of $24.9 million. The Step 2 impairment was higher than the initial estimate at December 31, 2016 due primarily to the valuation of PMAG's property, plant and equipment during the Step 2 exercise. The Company recorded the additional impairment loss of $8.9 million in the first quarter of 2017. 2016 Annual goodwill impairment testing At March 31, 2016, we determined that the Tridien reporting unit (which is reported as a discontinued operation in the accompanying financial statements after the sale of the reporting unit in September 2016) required further quantitative testing (Step 1) because we could not conclude that the fair value of the reporting unit exceeds its carrying value based on qualitative factors alone. Results of the Step 1 quantitative testing of Tridien indicated that the fair value of Tridien exceeded its carrying value. For the reporting units that were tested qualitatively, the results of the qualitative analysis indicated that the fair value of those reporting units exceeded their carrying value. A summary of the net carrying value of goodwill at September 30, 2017 and December 31, 2016, is as follows (in thousands):
The following is a reconciliation of the change in the carrying value of goodwill for the nine months ended September 30, 2017 by operating segment (in thousands):
Long lived assets Annual indefinite lived impairment testing The Company used a qualitative approach to test indefinite lived intangible assets for impairment by first assessing qualitative factors to determine whether it is more-likely-than-not that the fair value of an indefinite lived intangible asset is impaired as a basis for determining whether it is necessary to perform quantitative impairment testing. The Company evaluated the qualitative factors of each reporting unit that maintains indefinite lived intangible assets in connection with the annual impairment testing for 2017 and 2016. Results of the qualitative analysis indicate that the carrying value of the Company’s indefinite lived intangible assets did not exceed their fair value. Other intangible assets are comprised of the following at September 30, 2017 and December 31, 2016 (in thousands):
Amortization expense related to intangible assets was $14.2 million and $39.3 million for the three and nine months ended September 30, 2017, and $8.4 million and $24.0 million for the three and nine months ended September 30, 2016, respectively. Estimated charges to amortization expense of intangible assets over the next five years, is as follows (in thousands):
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt 2014 Credit Facility The 2014 Credit Facility is secured by all of the assets of the Company, including all of its equity interests in, and loans to, its consolidated subsidiaries. The Company amended the 2014 Credit Facility in June 2015, primarily to allow for intercompany loans to, and the acquisition of, Canadian-based companies on an unsecured basis, and to modify provisions that would allow for early termination of a "Leverage Increase Period," thereby providing additional flexibility as to the timing of subsequent acquisitions. On August 15, 2016, the Company amended the 2014 Credit Facility to, among other things, increase the aggregate amount of the 2014 Credit Facility by $400 million. On August 31, 2016, the Company entered into an Incremental Facility Amendment to the 2014 Credit Agreement (the "Incremental Facility Amendment"). The Incremental Facility Amendment provided for an increase to the 2014 Revolving Credit Facility of $150 million, and the 2016 Incremental Term Loan, in the amount of $250 million. As a result of the Incremental Facility Amendment, the 2014 Credit Facility currently provides for (i) a revolving credit facility of $550 million (as amended from time to time, the "2014 Revolving Credit Facility"), (ii) a $325 million term loan (the "2014 Term Loan Facility"), and (iii) a $250 million incremental term loan (the "2016 Incremental Term Loan"). 2014 Revolving Credit Facility The 2014 Revolving Credit Facility will become due in June 2019. The Company can borrow, prepay and reborrow principal under the 2014 Revolving Credit Facility from time to time during its term. Advances under the 2014 Revolving Credit Facility can be either LIBOR rate loans (as defined below) or base rate loans. LIBOR rate revolving loans bear interest at a rate per annum equal to the London Interbank Offered Rate (the "LIBOR Rate") plus a margin ranging from 2.00% to 2.75% based on the ratio of consolidated net indebtedness to adjusted consolidated earnings before interest expense, tax expense and depreciation and amortization expenses (the "Consolidated Leverage Ratio"). Base rate revolving loans bear interest at a fluctuating rate per annum equal to the greatest of (i) the prime rate of interest, or (ii) the Federal Funds Rate plus 0.50% (the "Base Rate"), plus a margin ranging from 1.00% to 1.75% based upon the Consolidated Leverage Ratio. Term Loans 2014 Term Loan The 2014 Term Loan Facility expires in June 2021 and requires quarterly payments that commenced September 30, 2014, with a final payment of all remaining principal and interest due on June 6, 2021. The 2014 Term Loan Facility was issued at an original issue discount of 99.5% of par value. 2016 Incremental Term Loan The 2016 Incremental Term Loan was issued at an original issue discount of 99.25% of par value. The Company incurred $6.0 million in additional debt issuance costs related to the Incremental Credit Facility, which will be recognized as expense during the remaining term of the related 2014 Revolving Credit Facility, and 2014 Term Loan and 2016 Incremental Term Loan. The Incremental Facility Amendment did not change the due dates or applicable interest rates of the 2014 Credit Agreement. The quarterly payments for the term advances under the 2014 Credit Agreement increased to approximately $1.4 million per quarter. The additional advances under the Incremental Credit Facility was a loan modification for accounting purposes. Consequently, the Company capitalized debt issuance costs of $6.0 million associated with fees charged by lenders of the Incremental Credit Facility. The capitalized debt issuance costs will be amortized over the remaining period of the 2014 Credit Facility. In March 2017, the Company amended the 2014 Credit Facility (the "Fourth Amendment") to reduce the applicable rate of interest for the 2014 Term Loan and 2016 Incremental Term Loan. Under the Fourth Amendment, outstanding LIBOR loans bear interest at LIBOR plus an applicable rate of 2.75% and outstanding Base Rate loans bear interest at Base Rate plus 1.75%. Prior to the amendment, the outstanding term loans bore interest at LIBOR plus 3.25% or Base Rate plus 2.25%. In connection with the Fourth Amendment, the Company capitalized debt issuance costs of $1.2 million associated with fees charged by term loan lenders. Other The 2014 Credit Facility provides for sub-facilities under the 2014 Revolving Credit Facility pursuant to which an aggregate amount of up to $100 million in letters of credit may be issued, as well as swing line loans of up to $25 million outstanding at one time. The issuance of such letters of credit and the making of any swing line loan would reduce the amount available under the 2014 Revolving Credit Facility. The Company will pay (i) commitment fees on the unused portion of the 2014 Revolving Credit Facility ranging from 0.45% to 0.60% per annum based on its Consolidated Leverage Ratio, (ii) quarterly letter of credit fees, and (iii) administrative and agency fees. The following table provides the Company’s debt holdings at September 30, 2017 and December 31, 2016 (in thousands):
Net availability under the 2014 Revolving Credit Facility was approximately $523.2 million at September 30, 2017. Letters of credit outstanding at September 30, 2017 totaled approximately $1.3 million. At September 30, 2017, the Company was in compliance with all covenants as defined in the 2014 Credit Facility. Debt Issuance Costs Deferred debt issuance costs represent the costs associated with the entering into the 2014 Credit Facility as well as amendments to the 2014 Credit Facility, and are amortized over the term of the related debt instrument. Since the Company can borrow, repay and reborrow principal under the 2014 Revolving Credit Facility, the debt issuance costs associated with this facility have been classified as other non-current assets in the accompanying consolidated balance sheet. The debt issuance costs associated with the 2014 Term Loan and 2016 Incremental Term Loan are classified as a reduction of long-term debt in the accompanying consolidated balance sheet. The following table summarizes debt issuance costs at September 30, 2017 and December 31, 2016, and the balance sheet classification in each of the periods presents (in thousands):
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities On September 16, 2014, the Company purchased an interest rate swap ("New Swap") with a notional amount of $220 million. The New Swap is effective April 1, 2016 through June 6, 2021, the termination date of the 2014 Term Loan. The agreement requires the Company to pay interest on the notional amount at the rate of 2.97% in exchange for the three-month LIBOR rate. At September 30, 2017 and December 31, 2016, the New Swap had a fair value loss of $8.8 million and $10.7 million, respectively, principally reflecting the present value of future payments and receipts under the agreement. The Company did not elect hedge accounting for the above derivative transaction and as a result, periodic mark-to-market changes in fair value are reflected as a component of interest expense in the consolidated statement of operations. The following table reflects the classification of the Company's interest rate swap on the consolidated balance sheets at September 30, 2017 and December 31, 2016 (in thousands):
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Fair Value Measurement |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | Fair Value Measurement The following table provides the assets and liabilities carried at fair value measured on a recurring basis at September 30, 2017 and December 31, 2016 (in thousands):
Reconciliations of the change in the carrying value of the Level 3 fair value measurements from January 1st through September 30th in 2017 and 2016 are as follows (in thousands):
Valuation Techniques The Company has not changed its valuation techniques in measuring the fair value of any of its other financial assets and liabilities during the period. For details of the Company’s fair value measurement policies under the fair value hierarchy, refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. 2014 Term Loan and 2016 Incremental Term Loan At September 30, 2017, the carrying value of the principal under the Company’s outstanding Term Loans, including the current portion, was $561.4 million, which approximates fair value because it has a variable interest rate that reflects market changes in interest rates and changes in the Company's net leverage ratio. The estimated fair value of the outstanding 2014 Term Loan is based on quoted market prices for similar debt issues and is, therefore, classified as Level 2 in the fair value hierarchy. Nonrecurring Fair Value Measurements The following table provides the assets carried at fair value measured on a non-recurring basis as of September 30, 2017 and December 31, 2016:
(1) Represents the fair value of the goodwill of the Arnold business segment. Refer to Note H - "Goodwill and Other Intangible Assets" for further discussion regarding the impairment and valuation techniques applied.
(1) Represents the fair value of the respective assets of the Orbit Baby product line of Ergobaby and the Clean Earth Williamsport site, both of which were disposed of during 2016. |
Stockholders' Equity |
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Stockholders' Equity | Stockholders’ Equity Trust Common Shares The Trust is authorized to issue 500,000,000 Trust shares and the Company is authorized to issue a corresponding number of LLC interests. The Company will at all times have the identical number of LLC interests outstanding as Trust shares. Each Trust share represents an undivided beneficial interest in the Trust, and each Trust share is entitled to one vote per share on any matter with respect to which members of the Company are entitled to vote. Trust Preferred Shares The Trust is authorized to issue up to 50,000,000 Trust preferred shares and the Company is authorized to issue a corresponding number of trust preferred interests. On June 28, 2017, the Trust issued 4,000,000 7.250% Series A Preferred Shares (the "Series A Preferred Shares") with a liquidation preference of $25.00 per share, for gross proceeds of $100.0 million, or $96.4 million net of underwriters' discount and issuance costs. When, and if declared by the Company's board of directors, distribution on the Series A Preferred Shares will be payable quarterly on January 30, April 30, July 30, and October 30 of each year, beginning on October 30, 2017, at a rate per annum of 7.250%. Distributions on the Series A Preferred Shares are discretionary and non-cumulative. The Company has no obligation to pay distributions for a quarterly distribution period if the board of directors does not declare the distribution before the scheduled record of date for the period, whether or not distributions are paid for any subsequent distribution periods with respect to the Series A Preferred Shares, or the Trust common shares. If the Company's board of directors does not declare a distribution for the Series A Preferred Shares for a quarterly distribution period, during the remainder of that quarterly distribution period the Company cannot declare or pay distributions on the Trust common shares. The Series A Preferred Shares are not convertible into Trust common shares and have no voting rights, except in limited circumstances as provided for in the share designation for the preferred shares. The Series A Preferred Shares may be redeemed at the Company's option, in whole or in part, at any time after July 30, 2022, at a price of $25.00 per share, plus declared and unpaid distribution to, but excluding, the redemption date, without payment of any undeclared distributions. Holders of Series A Preferred Shares will have no right to require the redemption of the Series A Preferred Shares and there is no maturity date. If a certain tax redemption event occurs prior to July 30, 2022, the Series A Preferred Shares may be redeemed at the Company's option, in whole but not in part, upon at least 30 days’ notice, within 60 days of the occurrence of such tax redemption event, at a price of $25.25 per share, plus declared and unpaid distributions to, but excluding, the redemption date, without payment of any undeclared distributions. If a certain fundamental change related to the Series A Preferred Shares or the Company occurs (whether before, on or after July 30, 2022), the Company will be required to repurchase the Series A Preferred Shares at a price of $25.25 per share, plus declared and unpaid distributions to, but excluding, the date of purchase, without payment of any undeclared distributions. If (i) a fundamental change occurs and (ii) the Company does not give notice prior to the 31st day following the fundamental change to repurchase all the outstanding Series A Preferred Shares, the distribution rate per annum on the Series A Preferred Shares will increase by 5.00%, beginning on the 31st day following such fundamental change. Notwithstanding any requirement that the Company repurchase all of the outstanding Series A Preferred Shares, the increase in the distribution rate is the sole remedy to holders in the event the Company fails to do so, and following any such increase, the Company will be under no obligation to repurchase any Series A Preferred Shares. Profit Allocation Interests The Allocation Interests represent the original equity interest in the Company. The holders of the Allocation Interests ("Holders") are entitled to receive distributions pursuant to a profit allocation formula upon the occurrence of certain events. The distributions of the profit allocation are paid upon the occurrence of the sale of a material amount of capital stock or assets of one of the Company’s businesses ("Sale Event") or, at the option of the Holders, at each five-year anniversary date of the acquisition of one of the Company’s businesses ("Holding Event"). The Company records distributions of the profit allocation to the Holders upon occurrence of a Sale Event or Holding Event as distributions declared on Allocation Interests to stockholders’ equity when they are approved by the Company’s board of directors. The sale of FOX shares in March 2017 (refer to Note F - "Investment in FOX") qualified as a Sale Event under the Company's LLC Agreement. In April 2017, with respect to the March 2017 Offering, the Company's board of directors approved and declared a profit allocation payment totaling $25.8 million that was paid in the second quarter of 2017. The sale of FOX shares in March 2016 (refer to Note F - "Investment in FOX") qualified as a Sale Event under the Company's LLC Agreement. In April 2016, with respect to the March 2016 Offering, the Company's board of directors approved and declared a profit allocation payment totaling $8.6 million that was paid to Holders during the second quarter of 2016. In November 2016, with respect to the sale of FOX shares in August 2016 and the sale of Tridien, both qualifying as Sale Events, the Company's board of directors approved and declared a profit allocation payment of $7.0 million that was paid during the fourth quarter of 2016. In the fourth quarter of 2016, the Company's board of directors declared a profit allocation payment to the Allocation Interest Holders of $13.4 million related to the FOX November Offering (refer to Note F - "Investment in FOX"). This amount was paid in the first quarter of 2017. The Company's board of directors also declared and the Company paid an $8.2 million distribution in the third quarter of 2016 to the Allocation Member in connection with a Holding Event of our ownership of the Advanced Circuits subsidiary. The payment is in respect to Advanced Circuits' positive contribution-based profit in the five year holding period ending June 30, 2016. Earnings per share The Company calculates basic and diluted earnings per share using the two-class method which requires the Company to allocate to participating securities that have rights to earnings that otherwise would have been available only to Trust shareholders as a separate class of securities in calculating earnings per share. The Allocation Interests are considered participating securities that contain participating rights to receive profit allocations upon the occurrence of a Holding Event or Sale Event. The calculation of basic and diluted earnings per share for the three and nine months ended September 30, 2017 and 2016 reflects the incremental increase during the period in the profit allocation distribution to Holders related to Holding Events. Basic and diluted earnings per share for the three and nine months ended September 30, 2017 and 2016 attributable to Holdings is calculated as follows (in thousands, except per share data):
Distributions Trust Common Shares
Trust Preferred Shares
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Warranties |
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Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranties | Warranties The Company’s Crosman, Ergobaby and Liberty operating segments estimate their exposure to warranty claims based on both current and historical product sales data and warranty costs incurred. The Company assesses the adequacy of its recorded warranty liability quarterly and adjusts the amount as necessary. A reconciliation of the change in the carrying value of the Company’s warranty liability for the nine months ended September 30, 2017 and the year ended December 31, 2016 is as follows (in thousands):
(1) Represents the warranty liability recorded in relation to the Crosman acquisition in June 2017 and an add-on acquisition by Crosman in July 2017. |
Noncontrolling Interest |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interest represents the portion of the Company’s majority owned subsidiary’s net income (loss) and equity that is owned by noncontrolling shareholders. The following tables reflect the Company’s ownership percentage of its majority owned operating segments and related noncontrolling interest balances as of September 30, 2017 and December 31, 2016:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income taxes Each fiscal quarter, the Company estimates its annual effective tax rate and applies that rate to its interim pre-tax earnings. In this regard, the Company reflects the full year’s estimated tax impact of certain unusual or infrequently occurring items and the effects of changes in tax laws or rates in the interim period in which they occur. The computation of the annual estimated effective tax rate in each interim period requires certain estimates and significant judgment, including the projected operating income for the year, projections of the proportion of income earned and taxed in other jurisdictions, permanent and temporary differences and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, as additional information is obtained or as the tax environment changes. Certain foreign operations are subject to foreign income taxation under existing provisions of the laws of those jurisdictions. Pursuant to U.S. tax laws, earnings from those jurisdictions will be subject to the U.S. income tax rate when those earnings are repatriated. The reconciliation between the Federal Statutory Rate and the effective income tax rate for the nine months ended September 30, 2017 and 2016 is as follows:
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Defined Benefit Plan |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan | Defined Benefit Plan In connection with the acquisition of Arnold, the Company has a defined benefit plan covering substantially all of Arnold’s employees at its Lupfig, Switzerland location. The benefits are based on years of service and the employees’ highest average compensation during the specific period. The unfunded liability of $3.5 million is recognized in the consolidated balance sheet as a component of other non-current liabilities at September 30, 2017. Net periodic benefit cost consists of the following for the three and nine months ended September 30, 2017 and 2016 (in thousands):
During the three and nine months ended September 30, 2017, Arnold contributed $0.1 million and $0.3 million to the plan utilizing reserves from prior years over funding of the plan, respectively. For the remainder of 2017, the expected contribution to the plan will be approximately $0.1 million. The plan assets are pooled with assets of other participating employers and are not separable; therefore the fair values of the pension plan assets at September 30, 2017 were considered Level 3. |
Commitments and Contingencies (Notes) |
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Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company and its subsidiaries are involved in various claims and legal proceedings. While the ultimate resolution of these matters has yet to be determined, the Company does not believe that any unfavorable outcomes will have a material adverse effect on the Company's consolidated financial position or results of operations. |
Subsequent Event |
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Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In October 2017, the Company further amended the 2014 Credit Facility (the "First Refinancing Amendment") to, in effect, refinance the 2014 Term Loan and the 2016 Incremental Term Loan (together, the “Term Loans”). Pursuant to the First Refinancing Amendment, outstanding Term Loans at LIBOR Rate bear interest at LIBOR plus an applicable rate of 2.25% and outstanding Term Loans at Base Rate bear interest at Base Rate plus 1.25%. Prior to the amendment, the outstanding Term Loans bore interest at LIBOR plus 2.75% or Base Rate plus 1.75%. In connection with the First Refinancing Amendment, the Company incurred $1.4 million of debt issuance costs associated with fees charged by term loan lenders. |
Presentation and Principles of Consolidation (Policies) |
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Accounting Policies [Abstract] | |
Seasonality | Seasonality Earnings of certain of the Company’s operating segments are seasonal in nature. Earnings from Liberty are typically lowest in the second quarter due to lower demand for safes at the onset of summer. Crosman typically has higher sales in the third and fourth quarter each year, reflecting the hunting and holiday seasons. Earnings from Clean Earth are typically lower during the winter months due to the limits on outdoor construction and development activity because of the colder weather in the Northeastern United States. Sterno Products typically has higher sales in the second and fourth quarter of each year, reflecting the outdoor summer and holiday seasons, respectively. |
Consolidation | Consolidation The condensed consolidated financial statements include the accounts of Holdings and all majority owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Recently Issued and Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In January 2017, the FASB issued new accounting guidance to simplify the accounting for goodwill impairment. The guidance removes step two of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the new guidance, a goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains largely unchanged. Entities will continue to have the option to perform a qualitative test to determine if a quantitative test is necessary. The guidance is effective for fiscal years and interim periods within those years, after December 31, 2019, with early adoption permitted for any goodwill impairment tests performed after January 1, 2017 and will be applied prospectively. The Company adopted this guidance early, effective January 1, 2017, on a prospective basis, and will apply the guidance as necessary to annual and interim goodwill testing performed subsequent to January 1, 2017. Recently Issued Accounting Pronouncements In March 2017, the FASB issued new guidance that will require employers that sponsor defined benefit plans to present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period, and requires the other components of net periodic pension cost to be presented in the income statement separately from the service component cost and outside a subtotal of income from operations. The new guidance shall be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company's Arnold business segment has a defined benefit plan covering substantially all of Arnold's employees at its Switzerland location. The adoption of this guidance is not expected to have a material impact upon our financial condition or results of operations. In January 2017, the FASB issued new guidance that changes the definition of a business to assist entities in evaluating when a set of transferred assets and activities constitutes a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If so, the set of transferred asset and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in the new revenue recognition guidance. The new standard will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The adoption of this guidance is not expected to have a material impact upon our financial condition or results of operations. In August 2016, the FASB issued an accounting standard update which updates the guidance as to how certain cash receipts and cash payments should be presented and classified within the statement of cash flows. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In February 2016, the FASB issued an accounting standard update related to the accounting for leases which will require an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. The standard update offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, the new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires modified retrospective adoption, with early adoption permitted. Accordingly, this standard is effective for the Company on January 1, 2019. The Company is currently assessing the impact of the new standard on our consolidated financial statements. In May 2014, the FASB issued a comprehensive new revenue recognition standard. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard is designed to create greater comparability for financial statement users across industries, jurisdictions and capital markets and also requires enhanced disclosures. The new standard will be effective for the Company beginning January 1, 2018. The FASB issued four subsequent standards in 2016 containing implementation guidance related to the new standard. These standards provide additional guidance related to principal versus agent considerations, licensing, and identifying performance obligations. Additionally, these standards provide narrow-scope improvements and practical expedients as well as technical corrections and improvements. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company will be adopting the standard using the modified retrospective method effective January 1, 2018. The Company has developed implementation procedures specific to each of its reportable segments. The Company has designed these procedures to assess the impact that the new revenue standard will have on the Company’s financial statements and to make any changes necessary to its current accounting practices and internal controls over financial reporting. The Company expects to complete the implementation procedures during the fourth quarter of 2017. The Company has identified certain differences as it relates to the concepts of variable consideration, consideration payable to a customer and the focus on control to determine when and how revenue should be recognized (i.e. point in time versus over time) during the implementation process. Although certain differences have been identified around variable consideration and consideration payable to a customer, the total impact on each reportable segment will not be material to the financial statements. The Company has identified two reportable segments where revenue recognition will change to over time recognition from historical point in time revenue recognition. Although the timing of revenue recognition for these two reportable segments will change, these changes will not have a material impact on the Company’s financial statements. The Company expects to adopt certain practical expedients and make certain policy elections related to the accounting for significant financing components, sales taxes, shipping and handling, costs to obtain a contract and immaterial promised goods or services which mitigates any potential differences. In addition, the Company is currently analyzing our internal control over financial reporting framework to determine if controls should be added or modified as a result of adopting this standard, and reviewing the tax impact, if any, the option of the new standard may have. We also expect that the adoption of the new standard will result in expanded and disaggregated disclosure requirements. |
Acquisition (Tables) |
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Pro Forma Information | The following unaudited pro forma data for the nine months ended September 30, 2017 and the three and nine months ended September 30, 2016 gives effect to the acquisition of Crosman and 5.11 Tactical, as described above, as if the acquisitions had been completed as of January 1, 2016, and the sale of Tridien as if the disposition had been completed on January 1, 2016. The pro forma data gives effect to historical operating results with adjustments to interest expense, amortization and depreciation expense, management fees and related tax effects. The information is provided for illustrative purposes only and is not necessarily indicative of the operating results that would have occurred if the transaction had been consummated on the date indicated, nor is it necessarily indicative of future operating results of the consolidated companies, and should not be construed as representing results for any future period.
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Discontinued Operations (Tables) |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations | Summarized operating results of Tridien for the three and nine months ended September 30, 2016 are as follows:
(1) The results for the three and nine months ended September 30, 2016 exclude $0.4 million and $1.1 million, respectively, of intercompany interest expense. |
Operating Segment Data (Tables) |
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Summary of Net Sales of Operating Segments |
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Summary of Profit (Loss) of Operating Segments |
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Summary of Goodwill and Identifiable Assets of Operating Segments |
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Property, Plant and Equipment and Inventory (Tables) |
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Summary of Property, Plant and Equipment | Property, plant and equipment is comprised of the following at September 30, 2017 and December 31, 2016 (in thousands):
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Summary of Inventory | Inventory is comprised of the following at September 30, 2017 and December 31, 2016 (in thousands):
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Goodwill and Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Reconciliation of Change in Carrying Value of Goodwill | A summary of the net carrying value of goodwill at September 30, 2017 and December 31, 2016, is as follows (in thousands):
The following is a reconciliation of the change in the carrying value of goodwill for the nine months ended September 30, 2017 by operating segment (in thousands):
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Summary of Other Intangible Assets | Other intangible assets are comprised of the following at September 30, 2017 and December 31, 2016 (in thousands):
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Summary of Estimated Charges to Amortization Expense of Intangible Assets | Estimated charges to amortization expense of intangible assets over the next five years, is as follows (in thousands):
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Debt Holdings | he following table provides the Company’s debt holdings at September 30, 2017 and December 31, 2016 (in thousands):
Net availability under the 2014 Revolving Credit Facility was approximately $523.2 million at September 30, 2017. Letters of credit outstanding at September 30, 2017 totaled approximately $1.3 million. At September 30, 2017, the Company was in compliance with all covenants as defined in the 2014 Credit Facility. |
Derivative Instruments and Hedging Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position | The following table reflects the classification of the Company's interest rate swap on the consolidated balance sheets at September 30, 2017 and December 31, 2016 (in thousands):
|
Fair Value Measurement (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assets and Liabilities Carried at Fair Value Measured on Recurring Basis | The following table provides the assets and liabilities carried at fair value measured on a recurring basis at September 30, 2017 and December 31, 2016 (in thousands):
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Reconciliations of Change in Carrying Value of Level 3 Fair Value Measurements | Reconciliations of the change in the carrying value of the Level 3 fair value measurements from January 1st through September 30th in 2017 and 2016 are as follows (in thousands):
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Fair Value Measurements, Nonrecurring | The following table provides the assets carried at fair value measured on a non-recurring basis as of September 30, 2017 and December 31, 2016:
(1) Represents the fair value of the goodwill of the Arnold business segment. Refer to Note H - "Goodwill and Other Intangible Assets" for further discussion regarding the impairment and valuation techniques applied.
(1) Represents the fair value of the respective assets of the Orbit Baby product line of Ergobaby and the Clean Earth Williamsport site, both of which were disposed of during 2016. |
Stockholders' Equity (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share for the three and nine months ended September 30, 2017 and 2016 attributable to Holdings is calculated as follows (in thousands, except per share data):
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Warranties (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Carrying Value of Company's Warranty Liability | A reconciliation of the change in the carrying value of the Company’s warranty liability for the nine months ended September 30, 2017 and the year ended December 31, 2016 is as follows (in thousands):
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Noncontrolling Interest (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company's Ownership Percentage of its Majority Owned Operating Segments and Related Noncontrolling Interest | The following tables reflect the Company’s ownership percentage of its majority owned operating segments and related noncontrolling interest balances as of September 30, 2017 and December 31, 2016:
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Income Taxes (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation Between Federal Statutory Rate and Effective Income Tax Rate | The reconciliation between the Federal Statutory Rate and the effective income tax rate for the nine months ended September 30, 2017 and 2016 is as follows:
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Defined Benefit Plan (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Periodic Benefit Cost | Net periodic benefit cost consists of the following for the three and nine months ended September 30, 2017 and 2016 (in thousands):
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Organization and Business Operations - Additional Information (Detail) - Segment |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2017 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Sole owner of Trust interest of the company | 100.00% | |
Number of businesses/operating segments owned | 9 | 9 |
Presentation and Principles of Consolidation - Recent Accounting Pronouncements (Details) - Adjustments for New Accounting Pronouncement - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
Jan. 01, 2016 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification from noncurrent deferred tax asset | $ 6.1 | ||
Term Loan Facility | Long-term Liabilities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification of debt issuance costs, asset (liability) | $ (4.4) | $ (4.6) | |
Revolving Credit Facility | Long-term Liabilities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification of debt issuance costs, asset (liability) | $ (4.5) | $ (4.9) |
Acquisition - Additional Information (Detail) ft² in Thousands, $ in Thousands, CAD in Millions |
9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 02, 2017
USD ($)
|
Aug. 31, 2016
USD ($)
|
May 11, 2016
USD ($)
|
Jan. 22, 2016
CAD
|
Jan. 22, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jan. 01, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Jun. 01, 2016
USD ($)
|
Apr. 15, 2016
USD ($)
ft²
|
|
Business Acquisition [Line Items] | |||||||||||
Goodwill, Acquired During Period | $ 53,580 | ||||||||||
Goodwill | 539,925 | $ 491,637 | $ 491,637 | ||||||||
Acquisitions, net of cash acquired | (164,742) | $ (528,642) | |||||||||
Crosman | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of customers | 425 | ||||||||||
Cash | $ 429 | 1,210 | |||||||||
Intangible assets, amount | $ 82,773 | ||||||||||
Equity interest acquired (as a percentage) | 98.90% | ||||||||||
Purchase price, net | $ 150,812 | 150,398 | |||||||||
Integration service fees payable | 1,500 | ||||||||||
Goodwill | 139,434 | 48,118 | |||||||||
Intercompany loans to business and debt assumed | 90,742 | 90,742 | |||||||||
Acquisition related costs | 1,397 | 1,473 | |||||||||
Working capital adjustment | 1,008 | 1,139 | |||||||||
Cash consideration paid related to working capital adjustments | 151,800 | 151,800 | |||||||||
Acquisitions, net of cash acquired | (152,209) | (151,871) | |||||||||
Intangible assets | 0 | 82,773 | |||||||||
Inventory | 25,598 | 28,764 | |||||||||
Property, plant and equipment | 10,963 | 17,573 | |||||||||
Accounts receivable, net | 16,751 | 16,751 | |||||||||
Other current and noncurrent assets | 2,348 | 2,348 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Assets Including Goodwill | 195,523 | 197,537 | |||||||||
Current liabilities | 15,502 | 16,283 | |||||||||
Other liabilities | 91,268 | 91,457 | |||||||||
Deferred tax liabilities | 27,286 | 28,668 | |||||||||
Noncontrolling interest | 694 | 694 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities And Noncontrolling Interest | 134,750 | 137,102 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Including Noncontrolling Interest | 60,773 | 60,435 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Including Related Party Debt | $ 152,209 | 151,871 | |||||||||
5.11 Tactical | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity interest acquired (as a percentage) | 97.50% | ||||||||||
Purchase price, net | $ 408,222 | ||||||||||
Integration service fees payable | 3,500 | ||||||||||
Goodwill | 92,966 | ||||||||||
Acquisition related costs | $ 2,063 | ||||||||||
Ergobaby | New Baby Tula, LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price, net | $ 73,800 | ||||||||||
Transaction costs | 800 | ||||||||||
Consideration transferred, liabilities incurred | 68,200 | ||||||||||
Consideration transferred, equity interests issued | 8,200 | ||||||||||
Clean Earth | Phoenix Soil, LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 3,200 | ||||||||||
Area of thermal desorption facility | ft² | 58 | ||||||||||
Intangible assets | $ 5,600 | ||||||||||
Sterno Products | Northern International, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 6,000 | ||||||||||
Total consideration | CAD 50.6 | 35,800 | |||||||||
Intercompany loans | 37,000 | ||||||||||
Intangible assets | 12,700 | ||||||||||
Inventory | 1,200 | ||||||||||
Non- Controlling Interest | Crosman | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity interest acquired (as a percentage) | 1.10% | ||||||||||
Non- Controlling Interest | 5.11 Tactical | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity interest acquired (as a percentage) | 2.50% | ||||||||||
Earn-Out | Ergobaby | New Baby Tula, LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Contingent consideration | 8,200 | ||||||||||
Earn-Out | Sterno Products | Northern International, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Contingent consideration | 1,500 | ||||||||||
Acquisition related costs | $ 400 | ||||||||||
Potential earn-out payable, period | 2 years | 2 years | |||||||||
Consideration transferred, liabilities incurred | CAD 2.5 | $ 1,800 | |||||||||
Customer relationships | Crosman | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amount | $ 28,718 | ||||||||||
Estimated Useful Life | 15 years | ||||||||||
Customer relationships | 5.11 Tactical | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amount | $ 75,218 | ||||||||||
Trade name | Crosman | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amount | $ 51,642 | ||||||||||
Estimated Useful Life | 20 years | ||||||||||
Trade name | 5.11 Tactical | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amount | 48,665 | ||||||||||
Technology And Patents | 5.11 Tactical | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amount | $ 4,007 | ||||||||||
Technology | Crosman | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amount | $ 2,413 | ||||||||||
Estimated Useful Life | 15 years | ||||||||||
Clean Earth | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill, Acquired During Period | 802 | ||||||||||
Goodwill | 119,026 | 118,224 | |||||||||
Clean Earth | EWS Alabama, Inc | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 3,600 | ||||||||||
Intangible assets | $ 12,100 | ||||||||||
Ergobaby | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | 61,031 | $ 61,031 | |||||||||
Ergobaby | Baby Tula, LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill, Acquired During Period | 13,200 | ||||||||||
Inventory basis step-up | 4,800 | ||||||||||
Fair value of earn-out provision | 3,800 | ||||||||||
Intangible assets | 55,300 | ||||||||||
Ergobaby | Noncompete Agreements | Baby Tula, LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | 1,700 | ||||||||||
Ergobaby | Customer relationships | Baby Tula, LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | 700 | ||||||||||
Ergobaby | Trade name | Baby Tula, LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets | $ 52,900 | ||||||||||
Scenario, Adjustment [Member] | Crosman | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash | 781 | ||||||||||
Purchase price, net | (414) | ||||||||||
Goodwill | (91,316) | ||||||||||
Acquisition related costs | 76 | ||||||||||
Working capital adjustment | 131 | ||||||||||
Acquisitions, net of cash acquired | 338 | ||||||||||
Intangible assets | 82,773 | ||||||||||
Inventory | 3,166 | ||||||||||
Property, plant and equipment | 6,610 | ||||||||||
Other current and noncurrent assets | 0 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Assets Including Goodwill | 2,014 | ||||||||||
Current liabilities | 781 | ||||||||||
Other liabilities | 189 | ||||||||||
Deferred tax liabilities | 1,382 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities And Noncontrolling Interest | 2,352 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Including Noncontrolling Interest | (338) | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Including Related Party Debt | $ (338) |
Acquisition - Schedule of Assets Acquired and Liabilities Assumed as of the Acquisition Date (Detail) - USD ($) $ in Thousands |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 02, 2017 |
Aug. 31, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Jan. 01, 2017 |
Dec. 31, 2016 |
Jan. 22, 2016 |
|
Assets: | |||||||
Goodwill | $ 539,925 | $ 491,637 | $ 491,637 | ||||
Acquisition Consideration | |||||||
Total purchase consideration | 164,742 | $ 528,642 | |||||
Crosman | |||||||
Assets: | |||||||
Cash | $ 429 | 1,210 | |||||
Accounts receivable, net | 16,751 | 16,751 | |||||
Inventory | 25,598 | 28,764 | |||||
Property, plant and equipment | 10,963 | 17,573 | |||||
Intangible assets | 0 | 82,773 | |||||
Goodwill | 139,434 | 48,118 | |||||
Other current and noncurrent assets | 2,348 | 2,348 | |||||
Total assets | 195,523 | 197,537 | |||||
Liabilities and noncontrolling interest: | |||||||
Current liabilities | 15,502 | 16,283 | |||||
Other liabilities | 91,268 | 91,457 | |||||
Deferred tax liabilities | 27,286 | 28,668 | |||||
Noncontrolling interest | 694 | 694 | |||||
Total liabilities and noncontrolling interest | 134,750 | 137,102 | |||||
Net assets acquired | 60,773 | 60,435 | |||||
Noncontrolling interest | 694 | 694 | |||||
Intercompany loans to business | 90,742 | 90,742 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Including Related Party Debt | 152,209 | 151,871 | |||||
Acquisition Consideration | |||||||
Purchase price | 151,800 | 151,800 | |||||
Cash | 1,417 | 1,210 | |||||
Working capital adjustment | (1,008) | (1,139) | |||||
Total purchase consideration | 152,209 | 151,871 | |||||
Acquisition related costs | 1,397 | 1,473 | |||||
Purchase price, net | 150,812 | 150,398 | |||||
Acquired receivables, gross contractual amount | 18,000 | ||||||
Business combination, acquired receivables, estimated uncollectible | $ 1,200 | ||||||
5.11 Tactical | |||||||
Assets: | |||||||
Goodwill | $ 92,966 | ||||||
Acquisition Consideration | |||||||
Acquisition related costs | 2,063 | ||||||
Purchase price, net | $ 408,222 | ||||||
Sterno Products | Northern International, Inc. | |||||||
Assets: | |||||||
Inventory | $ 1,200 | ||||||
Intangible assets | 12,700 | ||||||
Goodwill | $ 6,000 | ||||||
Scenario, Adjustment [Member] | Crosman | |||||||
Assets: | |||||||
Cash | 781 | ||||||
Inventory | 3,166 | ||||||
Property, plant and equipment | 6,610 | ||||||
Intangible assets | 82,773 | ||||||
Goodwill | (91,316) | ||||||
Other current and noncurrent assets | 0 | ||||||
Total assets | 2,014 | ||||||
Liabilities and noncontrolling interest: | |||||||
Current liabilities | 781 | ||||||
Other liabilities | 189 | ||||||
Deferred tax liabilities | 1,382 | ||||||
Total liabilities and noncontrolling interest | 2,352 | ||||||
Net assets acquired | (338) | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Including Related Party Debt | (338) | ||||||
Acquisition Consideration | |||||||
Cash | (207) | ||||||
Working capital adjustment | (131) | ||||||
Total purchase consideration | (338) | ||||||
Acquisition related costs | 76 | ||||||
Purchase price, net | $ (414) |
Acquisition - Schedule of Intangible Assets Recorded as Part of Acquisition (Detail) - USD ($) $ in Thousands |
Jun. 02, 2017 |
Aug. 31, 2016 |
---|---|---|
Crosman | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, amount | $ 82,773 | |
Crosman | Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, amount | $ 51,642 | |
Estimated Useful Life | 20 years | |
Crosman | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, amount | $ 28,718 | |
Estimated Useful Life | 15 years | |
Crosman | Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, amount | $ 2,413 | |
Estimated Useful Life | 15 years | |
5.11 Tactical | Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, amount | $ 48,665 | |
5.11 Tactical | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, amount | $ 75,218 |
Acquisition - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Gross profit | $ 326,936 | |||
Net income (loss) attributable to Holdings | $ 7,706 | $ 49,705 | $ (18,011) | 52,921 |
Crosman | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Net sales | 962,976 | |||
Gross profit | 332,682 | |||
Operating income (loss) | 11,924 | |||
Net income (loss) | (12,581) | |||
Net income (loss) attributable to Holdings | $ (15,073) | |||
Basic net income per share attributable to Holdings | $ (0.97) | |||
Crosman and 5.11 Tactical Acquisitions | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Net sales | 331,829 | 928,157 | ||
Gross profit | 111,811 | |||
Operating income (loss) | 13,463 | 36,424 | ||
Net income (loss) | 46,054 | 52,461 | ||
Net income (loss) attributable to Holdings | $ 45,381 | $ 50,743 | ||
Basic net income per share attributable to Holdings | $ 0.67 | $ 0 |
Discontinued Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 21, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of discontinued operations, net of income tax | $ 0 | $ 2,134 | $ 340 | $ 2,134 | ||
Gain on sale of discontinued operations, net of income tax | $ 0 | 2,134 | $ 340 | 2,134 | ||
Tridien | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal Group, Including Discontinued Operation, Intercompany Interest Expense Excluded from Income (Loss) from Discontinued Operations | $ 400 | $ 1,100 | ||||
Proceeds from divestiture of businesses | $ 25,000 | |||||
Proceeds from divestiture of businesses, portion attributable to parent | 23,000 | |||||
Gain on sale of discontinued operations, net of income tax | $ (1,700) | |||||
Proceeds reserved for future claims | $ 1,600 |
Discontinued Operations - Summarized Operating Results (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations | $ 0 | $ (455) | $ 0 | $ 473 |
Tridien | Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 15,978 | 45,951 | ||
Gross profit | 3,223 | 7,917 | ||
Operating income (loss) | 967 | 437 | ||
Income (loss) from continuing operations before income taxes | (440) | 488 | ||
Provision for income taxes | 15 | 15 | ||
Income from discontinued operations | (455) | 473 | ||
Disposal Group, Including Discontinued Operation, Intercompany Interest Expense Excluded from Income (Loss) from Discontinued Operations | $ 400 | $ 1,100 |
Operating Segment Data - Additional Information (Detail) retail_store in Thousands, ft² in Thousands, Clients in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017
USD ($)
ft²
retail_store
Segment
Clients
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
retail_store
Segment
Facility
|
Sep. 30, 2016
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization Expense | $ 27,338 | $ 24,375 | $ 92,380 | $ 54,535 |
Number of reportable operating segments | Segment | 9 | 9 | ||
Liberty | ||||
Segment Reporting Information [Line Items] | ||||
Manufacturing facility area (in square feet) | ft² | 300 | |||
Manitoba Harvest | ||||
Segment Reporting Information [Line Items] | ||||
Number of stores | retail_store | 13 | 13 | ||
Arnold Magnetics | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Number of clients | Clients | 2 | |||
Clean Earth | ||||
Segment Reporting Information [Line Items] | ||||
Number of facilities | Facility | 18 | |||
Outside of the United States | Ergobaby | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 57.00% | |||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization Expense | $ 26,077 | 23,487 | $ 88,659 | 52,172 |
Operating Segments | 5.11 Tactical | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization Expense | 4,338 | 5,192 | 34,882 | 5,192 |
Operating Segments | Crosman | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization Expense | 5,593 | 0 | 5,842 | 0 |
Operating Segments | Ergobaby | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization Expense | 3,068 | 4,409 | 9,386 | 6,046 |
Operating Segments | Liberty | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization Expense | 358 | 616 | 1,295 | 1,925 |
Operating Segments | Manitoba Harvest | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization Expense | 1,891 | 1,732 | 4,922 | 5,200 |
Operating Segments | ACI | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization Expense | 817 | 885 | 2,517 | 2,585 |
Operating Segments | Arnold | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization Expense | 1,452 | 2,268 | 4,962 | 6,778 |
Operating Segments | Clean Earth | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization Expense | 5,687 | 5,989 | 16,140 | 16,019 |
Operating Segments | Sterno Products | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization Expense | 2,873 | 2,396 | 8,713 | 8,427 |
Amortization Of Debt Issuance Costs And Original Issue Discount | Reconciliation of Segment to Consolidated | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and Amortization Expense | $ 1,261 | $ 888 | $ 3,721 | $ 2,363 |
Operating Segment Data - Summary of Net Sales of Operating Segments (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues | $ 268,281 | $ 200,770 | $ 767,960 | $ 525,713 |
Total consolidated revenues | 323,957 | 252,285 | 921,330 | 659,748 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues | 323,957 | 252,285 | 921,330 | 659,748 |
Operating Segments | 5.11 Tactical | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues | 72,005 | 27,203 | 228,471 | 27,203 |
Operating Segments | Crosman | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues | 34,449 | 0 | 44,202 | 0 |
Operating Segments | Ergobaby | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues | 27,835 | 29,664 | 77,737 | 75,048 |
Operating Segments | Liberty | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues | 18,423 | 23,810 | 66,008 | 74,713 |
Operating Segments | Manitoba Harvest | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues | 13,948 | 15,920 | 42,625 | 44,321 |
Operating Segments | ACI | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues | 22,436 | 21,679 | 66,404 | 64,945 |
Operating Segments | Arnold Magnetics | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues | 26,489 | 26,912 | 79,421 | 82,791 |
Operating Segments | Clean Earth | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues | 55,676 | 51,515 | 153,370 | 134,035 |
Operating Segments | Sterno Products | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues | 52,696 | 55,582 | 163,092 | 156,692 |
Reconciliation of Segment to Consolidated | Corporate and Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Operating Segment Data - Summary of Profit (Loss) of Operating Segments (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated income (loss) from continuing operations before income taxes | $ 8,548 | $ 53,438 | $ (17,861) | $ 61,725 |
Other income (expense), net | 2,020 | (3,271) | 2,950 | (1,852) |
Loss on equity method investment | 0 | 50,414 | (5,620) | 58,680 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated income (loss) from continuing operations before income taxes | 24,318 | 21,587 | 40,109 | 57,345 |
Operating Segments | 5.11 Tactical | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated income (loss) from continuing operations before income taxes | (253) | (1,794) | (14,542) | (1,794) |
Operating Segments | Crosman | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated income (loss) from continuing operations before income taxes | (1,388) | (1,587) | ||
Operating Segments | Ergobaby | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated income (loss) from continuing operations before income taxes | 5,884 | 4,671 | 14,728 | 9,101 |
Operating Segments | Liberty | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated income (loss) from continuing operations before income taxes | 2,050 | 2,417 | 6,900 | 9,879 |
Operating Segments | Manitoba Harvest | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated income (loss) from continuing operations before income taxes | (169) | 554 | 75 | (865) |
Operating Segments | ACI | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated income (loss) from continuing operations before income taxes | 6,191 | 5,759 | 18,106 | 17,241 |
Operating Segments | Arnold Magnetics | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated income (loss) from continuing operations before income taxes | 2,000 | 851 | (4,551) | 3,828 |
Operating Segments | Clean Earth | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated income (loss) from continuing operations before income taxes | 5,592 | 3,593 | 7,597 | 5,860 |
Operating Segments | Sterno Products | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated income (loss) from continuing operations before income taxes | 4,411 | 5,536 | 13,383 | 14,095 |
Reconciliation of Segment to Consolidated | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Interest expense, net | (6,945) | (4,376) | 22,499 | 23,204 |
Other income (expense), net | 2,020 | (3,271) | 2,950 | (1,852) |
Loss on equity method investment | 0 | 50,414 | (5,620) | 58,680 |
Reconciliation of Segment to Consolidated | Corporate and Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated income (loss) from continuing operations before income taxes | $ (10,845) | $ (10,916) | $ (32,801) | $ (29,244) |
Operating Segment Data - Summary of Goodwill and Identifiable Assets of Operating Segments (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Allowance for Doubtful Accounts Receivable | $ (10,469) | $ (10,469) | $ (5,511) | ||||||||
Identifiable Assets | [1] | 1,082,770 | 1,082,770 | 1,104,327 | |||||||
Depreciation and Amortization Expense | 27,338 | $ 24,375 | 92,380 | $ 54,535 | |||||||
Operating Segments | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Accounts Receivable, Net | 198,111 | 198,111 | 181,191 | ||||||||
Identifiable Assets | [1] | 1,079,573 | 1,079,573 | 958,356 | |||||||
Depreciation and Amortization Expense | 26,077 | 23,487 | 88,659 | 52,172 | |||||||
Operating Segments | 5.11 Tactical | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Accounts Receivable, Gross | 46,112 | 46,112 | 49,653 | ||||||||
Identifiable Assets | [1] | 313,072 | 313,072 | 311,560 | |||||||
Depreciation and Amortization Expense | 4,338 | 5,192 | 34,882 | 5,192 | |||||||
Operating Segments | Crosman | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Accounts Receivable, Gross | 24,904 | 24,904 | |||||||||
Identifiable Assets | [1] | 134,047 | 134,047 | ||||||||
Depreciation and Amortization Expense | 5,593 | 0 | 5,842 | 0 | |||||||
Operating Segments | Ergobaby | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Accounts Receivable, Gross | 11,140 | 11,140 | 11,018 | ||||||||
Identifiable Assets | [1] | 105,627 | 105,627 | 113,814 | |||||||
Depreciation and Amortization Expense | 3,068 | 4,409 | 9,386 | 6,046 | |||||||
Operating Segments | Liberty | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Accounts Receivable, Gross | 13,708 | 13,708 | 13,077 | ||||||||
Identifiable Assets | 27,901 | 27,901 | 26,344 | [1] | |||||||
Depreciation and Amortization Expense | 358 | 616 | 1,295 | 1,925 | |||||||
Operating Segments | Manitoba Harvest | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Accounts Receivable, Gross | 5,251 | 5,251 | 6,468 | ||||||||
Identifiable Assets | 100,330 | 100,330 | 97,977 | [1] | |||||||
Depreciation and Amortization Expense | 1,891 | 1,732 | 4,922 | 5,200 | |||||||
Operating Segments | ACI | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Accounts Receivable, Gross | 7,010 | [1] | 7,010 | [1] | 6,686 | ||||||
Identifiable Assets | [1] | 15,847 | 15,847 | 16,541 | |||||||
Depreciation and Amortization Expense | 817 | 885 | 2,517 | 2,585 | |||||||
Operating Segments | Arnold Magnetics | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Accounts Receivable, Gross | 15,407 | [1] | 15,407 | [1] | 15,195 | ||||||
Identifiable Assets | [1] | 69,154 | 69,154 | 64,209 | |||||||
Operating Segments | Clean Earth | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Accounts Receivable, Gross | 47,659 | [1] | 47,659 | [1] | 45,619 | ||||||
Identifiable Assets | 187,460 | [1] | 187,460 | [1] | 193,250 | ||||||
Depreciation and Amortization Expense | 5,687 | 5,989 | 16,140 | 16,019 | |||||||
Operating Segments | Sterno Products | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Accounts Receivable, Gross | 37,389 | 37,389 | 38,986 | ||||||||
Identifiable Assets | 126,135 | 126,135 | 134,661 | [1] | |||||||
Reconciliation of Segment to Consolidated | Amortization Of Debt Issuance Costs And Original Issue Discount | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Depreciation and Amortization Expense | 1,261 | $ 888 | 3,721 | $ 2,363 | |||||||
Reconciliation of Segment to Consolidated | Corporate and Other | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Identifiable Assets | [1] | $ 3,197 | $ 3,197 | $ 145,971 | |||||||
|
Operating Segment Data - Revenues from Geographic Locations Outside Domestic Country (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | $ 268,281 | $ 200,770 | $ 767,960 | $ 525,713 |
Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 323,957 | 252,285 | 921,330 | 659,748 |
Operating Segments | 5.11 Tactical | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 72,005 | 27,203 | 228,471 | 27,203 |
Operating Segments | Crosman | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 34,449 | 0 | 44,202 | 0 |
Operating Segments | Ergobaby | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 27,835 | 29,664 | 77,737 | 75,048 |
Operating Segments | Manitoba Harvest | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 13,948 | 15,920 | 42,625 | 44,321 |
Operating Segments | Arnold Magnetics | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 26,489 | 26,912 | 79,421 | 82,791 |
Operating Segments | Sterno Products | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 52,696 | 55,582 | 163,092 | 156,692 |
Operating Segments | Non United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 67,913 | 49,950 | 183,698 | 117,804 |
Operating Segments | Non United States | 5.11 Tactical | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 19,238 | 6,141 | 63,088 | 6,141 |
Operating Segments | Non United States | Crosman | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 4,542 | 6,412 | ||
Operating Segments | Non United States | Ergobaby | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 17,048 | 16,701 | 46,277 | 40,660 |
Operating Segments | Non United States | Manitoba Harvest | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 10,720 | 8,573 | 19,979 | 20,983 |
Operating Segments | Non United States | Arnold Magnetics | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | 10,556 | 12,208 | 31,677 | 33,654 |
Operating Segments | Non United States | Sterno Products | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
International revenues | $ 5,809 | $ 6,327 | $ 16,265 | $ 16,366 |
Investment in Fox (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2016 |
Aug. 31, 2016 |
Mar. 31, 2016 |
Sep. 30, 2017 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Jan. 01, 2017 |
Dec. 31, 2016 |
Oct. 31, 2016 |
Feb. 29, 2016 |
|
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Net proceeds from sale of equity investment | $ 136,147 | $ 110,685 | ||||||||
Equity method investment | $ 0 | $ 0 | $ 141,767 | |||||||
FOX | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Non-controlling interest | 23.00% | 33.10% | 14.00% | 41.20% | ||||||
Treasury stock acquired (shares) | 3,000,000 | |||||||||
Net proceeds from sale of equity investment | $ 47,700 | |||||||||
Proceeds to parent from shares sold to subsidiary | $ 71,800 | $ 136,147 | ||||||||
Ownership percentage by noncontrolling owners | 14.00% | 23.00% | ||||||||
Secondary Offering | FOX | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Equity method investment, amount of shares sold (shares) | 3,500,000 | 2,500,000 | 5,108,718 | |||||||
Net proceeds from sale of equity investment | $ 63,000 | |||||||||
Number of shares available in second offering (shares) | 4,025,000 | |||||||||
Subsidiary stock issued during period shares new issues (shares) | 3,500,000 | |||||||||
Direct Offering | FOX | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Treasury stock acquired (shares) | 500,000 |
Property, Plant and Equipment and Inventory - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 8,700 | $ 7,300 | $ 24,505 | $ 19,481 | |
Property, plant and equipment, gross | 278,626 | 278,626 | $ 227,184 | ||
Construction in process | 24,699 | 24,699 | 8,308 | ||
Less: accumulated depreciation | (107,799) | (107,799) | (84,814) | ||
Total | 170,827 | 170,827 | 142,370 | ||
Machinery and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 168,621 | 168,621 | 155,591 | ||
Furniture, fixtures and other | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 27,005 | 27,005 | 13,737 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 18,337 | 18,337 | 14,156 | ||
Buildings and land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $ 39,964 | $ 39,964 | $ 35,392 |
Property, Plant and Equipment and Inventory - Summary of Inventory (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Property, Plant and Equipment [Abstract] | |||||
Depreciation expense | $ 8,700 | $ 7,300 | $ 24,505 | $ 19,481 | |
Raw materials | 38,388 | 38,388 | $ 29,708 | ||
Work-in-process | 12,294 | 12,294 | 8,281 | ||
Finished goods | 201,348 | 201,348 | 182,886 | ||
Less: obsolescence reserve | (9,213) | (9,213) | (7,891) | ||
Total | $ 242,817 | $ 242,817 | $ 212,984 |
Goodwill and Other Intangible Assets - Additional Information (Detail) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
Reporting_Unit
|
Sep. 30, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
|
Jan. 01, 2017
USD ($)
|
|
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill | $ 539,925 | $ 539,925 | $ 491,637 | $ 491,637 | ||
Goodwill, Acquired During Period | 53,580 | |||||
Goodwill, estimated impairment loss | 24,864 | 24,864 | $ 16,000 | |||
Impairment expense | 0 | $ 0 | 8,864 | $ 0 | ||
Amortization expense | 14,167 | $ 8,423 | 39,256 | $ 23,966 | ||
ACI | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill | 58,019 | 58,019 | 58,019 | |||
5.11 Tactical | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill | 92,966 | 92,966 | 92,966 | |||
Crosman | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill | 49,880 | 49,880 | 0 | |||
Goodwill, Acquired During Period | 49,880 | |||||
Ergobaby | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill | 61,031 | 61,031 | 61,031 | |||
Liberty | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill | 32,828 | 32,828 | 32,828 | |||
Manitoba Harvest | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill | 47,596 | 47,596 | 44,171 | |||
Goodwill, Foreign Currency Translation Gain (Loss) | 3,425 | |||||
Arnold | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill | 26,903 | 26,903 | 35,767 | |||
Goodwill, Impairment Loss | $ (8,864) | |||||
Number of reporting units at Arnold Subsidiary | Reporting_Unit | 3 | |||||
Number of reporting unit identified as requiring further quantitative testing | Reporting_Unit | 3 | |||||
Clean Earth | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill | 119,026 | $ 119,026 | 118,224 | |||
Goodwill, Acquired During Period | 802 | |||||
Sterno Products | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill | 43,027 | 43,027 | 39,982 | |||
Goodwill, Other Increase (Decrease) | 147 | |||||
Goodwill, Acquired During Period | 2,898 | |||||
Corporate Segment [Member] | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill | $ 8,649 | 8,649 | $ 8,649 | |||
Manitoba Harvest | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Impairment assessment assumptions weighted average cost of capital | 12.00% | |||||
Excess of fair value from carrying value of goodwill | 15.00% | |||||
PMAG | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Impairment assessment assumptions weighted average cost of capital | 12.50% | |||||
Goodwill, estimated impairment loss | $ 24,900 | $ 24,900 | $ 16,000 | |||
Impairment expense | $ 8,900 | |||||
Flexmag | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Impairment assessment assumptions weighted average cost of capital | 12.00% | |||||
Precision Thin Metals | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Impairment assessment assumptions weighted average cost of capital | 13.00% | |||||
Minimum | PMAG | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill, estimated impairment loss | $ 14,000 | |||||
Maximum | PMAG | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||
Goodwill, estimated impairment loss | $ 19,000 |
Goodwill and Other Intangible Assets - Summary of Reconciliation of Change in Carrying Value of Goodwill (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Jan. 01, 2017 |
Dec. 31, 2016 |
|
Goodwill [Line Items] | |||||||
Goodwill - gross carrying amount | $ 564,789 | $ 507,637 | |||||
Accumulated impairment losses | (24,864) | (16,000) | |||||
Goodwill - net carrying amount | $ 539,925 | $ 491,637 | 539,925 | $ 491,637 | $ 491,637 | ||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | 539,925 | 539,925 | |||||
Acquisitions | 53,580 | ||||||
Impairment expense | 0 | $ 0 | (8,864) | $ 0 | |||
Balance as of March 31, 2017 | 491,637 | ||||||
Corporate Segment [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill - net carrying amount | 8,649 | 8,649 | 8,649 | 8,649 | |||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | 8,649 | 8,649 | |||||
5.11 Tactical | |||||||
Goodwill [Line Items] | |||||||
Goodwill - net carrying amount | 92,966 | 92,966 | 92,966 | 92,966 | |||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | 92,966 | 92,966 | |||||
Ergobaby | |||||||
Goodwill [Line Items] | |||||||
Goodwill - net carrying amount | 61,031 | 61,031 | 61,031 | 61,031 | |||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | 61,031 | 61,031 | |||||
Liberty | |||||||
Goodwill [Line Items] | |||||||
Goodwill - net carrying amount | 32,828 | 32,828 | 32,828 | 32,828 | |||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | 32,828 | 32,828 | |||||
Manitoba Harvest | |||||||
Goodwill [Line Items] | |||||||
Goodwill - net carrying amount | 47,596 | 47,596 | 47,596 | 44,171 | |||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | 47,596 | 47,596 | |||||
ACI | |||||||
Goodwill [Line Items] | |||||||
Goodwill - net carrying amount | 58,019 | 58,019 | 58,019 | 58,019 | |||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | 58,019 | 58,019 | |||||
Arnold | |||||||
Goodwill [Line Items] | |||||||
Goodwill - net carrying amount | 26,903 | 26,903 | 26,903 | 35,767 | |||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | 26,903 | 26,903 | |||||
Clean Earth | |||||||
Goodwill [Line Items] | |||||||
Goodwill - net carrying amount | 119,026 | 119,026 | 119,026 | 118,224 | |||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | 119,026 | 119,026 | |||||
Acquisitions | 802 | ||||||
Sterno Products | |||||||
Goodwill [Line Items] | |||||||
Goodwill - net carrying amount | 43,027 | 43,027 | 43,027 | $ 39,982 | |||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | 43,027 | 43,027 | |||||
Acquisitions | 2,898 | ||||||
PMAG | |||||||
Goodwill [Line Items] | |||||||
Goodwill - net carrying amount | 15,600 | 15,600 | 15,600 | ||||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | 15,600 | 15,600 | |||||
Flexmag | |||||||
Goodwill [Line Items] | |||||||
Goodwill - net carrying amount | 4,800 | 4,800 | 4,800 | ||||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | 4,800 | 4,800 | |||||
Precision Thin Metals | |||||||
Goodwill [Line Items] | |||||||
Goodwill - net carrying amount | 6,500 | 6,500 | $ 6,500 | ||||
Goodwill [Roll Forward] | |||||||
Balance as of January 1, 2017 | $ 6,500 | $ 6,500 |
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Detail) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | $ 691,079,000 | $ 599,882,000 |
Total accumulated amortization | 172,728,000 | (132,854,000) |
Finite-Lived Intangible Assets, Net | (518,351,000) | (467,028,000) |
Trade names, not subject to amortization | 73,527,000 | 72,183,000 |
Intangible Assets, Gross (Excluding Goodwill) | 764,606,000 | 672,065,000 |
Total intangibles, net | 591,878,000 | 539,211,000 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | 338,461,000 | 304,751,000 |
Total accumulated amortization | (96,449,000) | (79,607,000) |
Finite-Lived Intangible Assets, Net | 242,012,000 | (225,144,000.000) |
Technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | 48,452,000 | 44,710,000 |
Total accumulated amortization | (21,502,000) | (18,290,000) |
Finite-Lived Intangible Assets, Net | 26,950,000 | (26,420,000.000) |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | 180,565,000 | 128,675,000 |
Total accumulated amortization | (19,194,000) | (6,833,000) |
Finite-Lived Intangible Assets, Net | 161,371,000 | (121,842,000.000) |
Licensing and non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | 7,865,000 | 7,845,000 |
Total accumulated amortization | (6,365,000) | (5,987,000) |
Finite-Lived Intangible Assets, Net | 1,500,000 | (1,858,000.000) |
Permits and Airspace | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | 115,130,000 | 113,295,000 |
Total accumulated amortization | (28,612,000) | (21,531,000) |
Finite-Lived Intangible Assets, Net | 86,518,000 | (91,764,000.000) |
Distributor relations and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | 606,000 | 606,000 |
Total accumulated amortization | (606,000) | (606,000) |
Finite-Lived Intangible Assets, Net | $ 0 | $ (0.000) |
Goodwill and Other Intangible Assets - Summary of Estimated Charges to Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 14,167 | $ 8,423 | $ 39,256 | $ 23,966 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
July 1, 2017 through Dec. 31, 2017 | 12,689 | 12,689 | ||
2018 | 49,367 | 49,367 | ||
2019 | 48,077 | 48,077 | ||
2020 | 47,592 | 47,592 | ||
2021 | 47,288 | 47,288 | ||
Total amortization expense | $ 205,013 | $ 205,013 |
Debt - Additional Information (Detail) - USD ($) |
1 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Aug. 31, 2016 |
Jun. 06, 2014 |
Mar. 31, 2017 |
Mar. 31, 2014 |
Sep. 30, 2017 |
Dec. 31, 2016 |
Aug. 15, 2016 |
|
Debt Instrument [Line Items] | |||||||
Deferred debt issuance costs | $ 20,142,000 | $ 18,960,000 | |||||
Credit facility obtained, maximum borrowing capacity | 523,200,000 | ||||||
Accumulated Amortization, Debt Issuance Costs | (9,188,000) | (6,248,000) | |||||
Deferred debt issuance costs, less accumulated amortization | 10,954,000 | 12,712,000 | |||||
FOX Credit Facility | Prime Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
FOX Credit Facility | Prime Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.50% | ||||||
2014 Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Debt Issuance Cost (Deprecated 2016-01-31) | $ 6,000,000 | ||||||
2014 Credit Agreement | Revolving Credit Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Unused fee percentage | 0.45% | ||||||
2014 Credit Agreement | Revolving Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Unused fee percentage | 0.60% | ||||||
2014 Credit Agreement | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.00% | ||||||
2014 Credit Agreement | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.75% | ||||||
2014 Credit Agreement | Revolving Credit Facility | Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
2014 Credit Agreement | Revolving Credit Facility | Base Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
2014 Credit Agreement | Revolving Credit Facility | Base Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
2014 Credit Agreement | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility obtained | $ 100,000,000.0 | ||||||
2014 Credit Agreement | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility obtained | 25,000,000.0 | ||||||
2014 Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility obtained, maximum borrowing capacity | 550,000,000 | $ 400,000,000 | |||||
Increase in borrowing capacity | 150,000,000 | ||||||
2016 Incremental Term Loan | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Increase in borrowing capacity | $ 250,000,000 | ||||||
Credit facility obtained | 250,000,000 | ||||||
2014 Term Loan | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility obtained | $ 325,000,000 | ||||||
Frequency of payments | quarterly | ||||||
Original issue discount | 99.25% | 99.50% | |||||
Debt Issuance Cost (Deprecated 2016-01-31) | $ 1,200,000 | ||||||
Capitalized debt issuance costs | $ 6,000,000 | ||||||
Increase to quarterly payments | $ 1,400,000 | ||||||
2014 Term Loan | Term Loan | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 3.25% | 2.75% | |||||
2014 Term Loan | Term Loan | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.25% | 1.75% | |||||
Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Letter of credit outstanding | 1,300,000 | ||||||
Other non-current assets | |||||||
Debt Instrument [Line Items] | |||||||
Deferred debt issuance costs, less accumulated amortization | 3,277,000 | 4,698,000 | |||||
Other noncurrent liabilities | |||||||
Debt Instrument [Line Items] | |||||||
Deferred debt issuance costs, less accumulated amortization | $ 7,677,000 | $ 8,014,000 |
Debt-Issuance Costs (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Deferred debt issuance costs | $ 20,142 | $ 18,960 |
Accumulated amortization | 9,188 | 6,248 |
Deferred debt issuance costs, less accumulated amortization | 10,954 | 12,712 |
Other non-current assets | ||
Debt Instrument [Line Items] | ||
Deferred debt issuance costs, less accumulated amortization | 3,277 | 4,698 |
Long-term debt | ||
Debt Instrument [Line Items] | ||
Deferred debt issuance costs, less accumulated amortization | $ 7,677 | $ 8,014 |
Debt - Summary of Debt Holdings (Detail) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt | $ 575,440 | $ 557,337 |
Original issue discount | (3,777) | (4,706) |
Debt issuance costs - term loan | (10,954) | (12,712) |
Current portion, long-term debt | (5,685) | (5,685) |
Long term debt | 569,755 | 551,652 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 25,500 | 4,400 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 561,394 | 565,658 |
Debt issuance costs - term loan | (7,677) | (8,015) |
Current portion, long-term debt | $ (5,685) | $ (5,685) |
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Thousands |
Sep. 16, 2014 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|
New Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | $ 220,000 | ||
Interest rate on notional amount | 2.97% | ||
Interest rate swap agreement with bank, agreement period | 3 months | ||
Level 2 | Fair Value | Fair Value, Measurements, Recurring | |||
Derivative [Line Items] | |||
Fair value loss | $ (8,847) | $ (10,719) |
Derivative Instruments and Hedging Activities-By Balance Sheet Location (Details) - Interest Rate Swap - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivative [Line Items] | ||
Total fair value | $ 8,847 | $ 10,719 |
Other current liabilities | ||
Derivative [Line Items] | ||
Total fair value | 3,190 | 4,010 |
Other noncurrent liabilities | ||
Derivative [Line Items] | ||
Total fair value | $ 5,657 | $ 6,709 |
Fair Value Measurement - Summary of Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands |
3 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||||
Liabilities: | ||||||||||||
Put option of noncontrolling shareholders | $ 12 | $ 50 | ||||||||||
Total recorded at fair value | $ (4,559) | (4,547) | $ (5,010) | $ (4,930) | (5,330) | $ (1,550) | $ (5,010) | $ (50) | ||||
Fair Value, Measurements, Recurring | Carrying Value | ||||||||||||
Assets: | ||||||||||||
Interest rate cap | 141,767 | |||||||||||
Liabilities: | ||||||||||||
Put option of noncontrolling shareholders | (192) | (180) | ||||||||||
Contingent consideration | (4,367) | [1] | (4,830) | |||||||||
Total recorded at fair value | (13,406) | 126,038 | ||||||||||
Fair Value, Measurements, Recurring | Level 1 | Fair Value | ||||||||||||
Assets: | ||||||||||||
Interest rate cap | 141,767 | |||||||||||
Liabilities: | ||||||||||||
Put option of noncontrolling shareholders | 0 | 0 | ||||||||||
Contingent consideration | [1] | 0 | ||||||||||
Interest rate swap | 0 | 0 | ||||||||||
Total recorded at fair value | 0 | 141,767 | ||||||||||
Fair Value, Measurements, Recurring | Level 2 | Fair Value | ||||||||||||
Assets: | ||||||||||||
Interest rate cap | 0 | |||||||||||
Liabilities: | ||||||||||||
Put option of noncontrolling shareholders | 0 | 0 | ||||||||||
Contingent consideration | [1] | 0 | ||||||||||
Interest rate swap | (8,847) | (10,719) | ||||||||||
Total recorded at fair value | (8,847) | (10,719) | ||||||||||
Fair Value, Measurements, Recurring | Level 3 | Fair Value | ||||||||||||
Assets: | ||||||||||||
Interest rate cap | 0 | |||||||||||
Liabilities: | ||||||||||||
Put option of noncontrolling shareholders | (192) | (180) | ||||||||||
Contingent consideration | (4,367) | [1] | (4,830) | |||||||||
Interest rate swap | 0 | 0 | ||||||||||
Total recorded at fair value | (4,559) | (5,010) | ||||||||||
New Interest Rate Swap | Fair Value, Measurements, Recurring | Carrying Value | ||||||||||||
Liabilities: | ||||||||||||
Interest rate swap | (8,847) | $ (10,719) | ||||||||||
Northern International, Inc. | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Payment of contingent consideration | $ 0 | 463 | $ 450 | 0 | ||||||||
Liabilities: | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | $ 0 | $ 0 | $ (3,780) | $ (1,500) | ||||||||
|
Fair Value Measurement - Reconciliations of Change in Carrying Value of Level 3 Fair Value Measurements (Detail) - USD ($) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value of liability, Beginning balance | $ (4,547) | $ (5,010) | $ (5,010) | $ (5,330) | $ (1,550) | $ (50) |
Fair value of liability, Ending balance | (4,559) | (4,547) | (5,010) | (4,930) | (5,330) | (1,550) |
Northern International, Inc. | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent consideration - acquisition | 0 | $ 0 | (3,780) | $ (1,500) | ||
Payment of contingent consideration | $ 0 | $ 463 | $ 450 | $ 0 |
Fair Value Measurement - Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment expense | $ 0 | $ 0 | $ 8,864 | $ 0 | |
Customer relationships | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment expense | $ 2,426 | ||||
Customer relationships | Carrying Value | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Customer relationships | Fair Value | Fair Value, Measurements, Nonrecurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Customer relationships | Fair Value | Fair Value, Measurements, Nonrecurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Customer relationships | Fair Value | Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Permits | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment expense | 1,177 | ||||
Permits | Carrying Value | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Permits | Fair Value | Fair Value, Measurements, Nonrecurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Permits | Fair Value | Fair Value, Measurements, Nonrecurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Permits | Fair Value | Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Technology | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment expense | 3,460 | ||||
Technology | Carrying Value | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Technology | Fair Value | Fair Value, Measurements, Nonrecurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Technology | Fair Value | Fair Value, Measurements, Nonrecurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Technology | Fair Value | Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Trade name | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment expense | 317 | ||||
Trade name | Carrying Value | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Trade name | Fair Value | Fair Value, Measurements, Nonrecurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Trade name | Fair Value | Fair Value, Measurements, Nonrecurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Trade name | Fair Value | Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Goodwill | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment expense | 8,864 | 16,000 | |||
Goodwill | Carrying Value | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 26,903 | 26,903 | 35,767 | ||
Goodwill | Fair Value | Fair Value, Measurements, Nonrecurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | 0 | 0 | ||
Goodwill | Fair Value | Fair Value, Measurements, Nonrecurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | 0 | 0 | ||
Goodwill | Fair Value | Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | $ 26,903 | $ 26,903 | 35,767 | ||
Property, Plant and Equipment | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment expense | 1,824 | ||||
Property, Plant and Equipment | Carrying Value | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Property, Plant and Equipment | Fair Value | Fair Value, Measurements, Nonrecurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Property, Plant and Equipment | Fair Value | Fair Value, Measurements, Nonrecurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | ||||
Property, Plant and Equipment | Fair Value | Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | $ 0 |
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ 575,440 | $ 557,337 |
Term Loan Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ 561,394 | $ 565,658 |
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Oct. 30, 2017 |
Oct. 26, 2017 |
Jul. 27, 2017 |
Apr. 27, 2017 |
Jan. 26, 2017 |
|
Stockholders Equity [Line Items] | ||||||||||
Trust shares, authorized (shares) | 500,000,000 | 500,000,000 | 500,000,000 | |||||||
Preferred stock, authorized (shares) | 50,000,000 | 50,000,000 | ||||||||
Preferred Stock, Value, Issued | $ 96,417 | $ 0 | $ 96,417 | |||||||
Profit allocation payment from Equity Method Investment | 7,000 | |||||||||
Trust shares, voting rights | One vote per share | |||||||||
Holding Event, anniversary since acquisition | 5 years | |||||||||
Common Stock | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Distribution declared per share | $ 0.36 | |||||||||
Subsequent Event | Common Stock | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Distribution declared per share | $ 0.36 | $ 0.36 | $ 0.36 | |||||||
Subsequent Event | Series A Preferred Stock | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Distribution declared per share | $ 0.61423611 | |||||||||
FOX | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Profit allocation payment from Equity Method Investment | $ 25,800 | $ 13,400 | $ 8,200 | $ 8,600 |
Stockholders' Equity - Summary of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from continuing operations attributable to Holdings | $ 7,706 | $ 47,862 | $ (18,351) | $ 50,198 |
Less: Profit Allocation paid to Holders | 0 | 8,196 | 39,120 | 16,829 |
Less: Profit Allocation paid to Holders | 1,620 | 812 | 3,954 | 1,292 |
Less: Effect of contribution based profit - Holding Event | 6,086 | 38,854 | (61,425) | 32,077 |
Income from discontinued operations, net of income tax | $ 0 | $ (291) | $ 0 | $ 589 |
Basic and diluted weighted average shares outstanding (shares) | 59,900 | 54,300 | 59,900 | 54,300 |
Continuing operations (usd per share) | $ 0.10 | $ 0.72 | $ (1.03) | $ 0.59 |
Discontinued operations (usd per share) | 0.00 | 0.03 | 0.01 | 0.05 |
Earnings Per Share, Basic and Diluted (usd per share) | $ 0 | $ 0 | $ (1.02) | $ 0.64 |
Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Less: Profit Allocation paid to Holders | $ 0 | $ 0 | $ 0 | $ 0 |
Income (loss) from continuing operations before income taxes | 0 | 1,843 | 340 | 2,723 |
Income from discontinued operations, net of income tax | $ 0 | $ 1,843 | $ 340 | $ 2,723 |
Warranties - Change in Carrying Value of Company's Warranty Liability (Detail) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||
Product Warranty Accrual, Beginning Balance | $ 1,258 | $ 1,259 | $ 1,259 |
Accrual | 507 | 252 | |
Warranty payments | (266) | (253) | |
Product Warranty Accrual, Ending balance | 2,008 | $ 1,258 | |
Crosman | |||
Schedule of Equity Method Investments [Line Items] | |||
Other (1) | $ 509 | $ 0 |
Noncontrolling Interest - Company's Ownership Percentage of its Majority Owned Operating Segments and Related Noncontrolling Interest (Detail) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest | $ 47,626 | $ 38,139 | |||
Crosman | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest | 744 | ||||
5.11 Tactical | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest | 7,387 | $ 5,934 | |||
5.11 Tactical | % Ownership Primary | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 97.50% | |||
5.11 Tactical | % Ownership Fully Diluted | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 85.10% | |||
Ergobaby | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest | 21,282 | $ 18,647 | |||
Ergobaby | % Ownership Primary | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 83.50% | |||
Ergobaby | % Ownership Fully Diluted | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 76.90% | |||
Liberty | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest | $ 2,976 | $ 2,681 | |||
Liberty | % Ownership Primary | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 88.60% | 88.60% | ||
Liberty | % Ownership Fully Diluted | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 84.70% | 84.70% | ||
Manitoba Harvest | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest | $ 13,852 | $ 13,687 | |||
Manitoba Harvest | % Ownership Primary | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 76.60% | 76.60% | ||
Manitoba Harvest | % Ownership Fully Diluted | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 67.00% | 65.60% | ||
ACI | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest | $ (8,502) | $ (11,220) | |||
ACI | % Ownership Primary | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 69.40% | 69.40% | ||
ACI | % Ownership Fully Diluted | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 69.20% | 69.30% | ||
Arnold Magnetics | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest | $ 1,342 | $ 1,536 | |||
Arnold Magnetics | % Ownership Primary | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 96.70% | 96.70% | ||
Arnold Magnetics | % Ownership Fully Diluted | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 84.70% | 84.70% | ||
Clean Earth | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest | $ 6,585 | $ 5,469 | |||
Clean Earth | % Ownership Primary | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 97.50% | 97.50% | ||
Clean Earth | % Ownership Fully Diluted | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 79.80% | 79.80% | ||
Sterno Products | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest | $ 1,860 | $ 1,305 | |||
Sterno Products | % Ownership Primary | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 100.00% | 100.00% | ||
Sterno Products | % Ownership Fully Diluted | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 89.50% | 89.50% | ||
Allocation Interests | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest | $ 100 | $ 100 | |||
Crosman | % Ownership Primary | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | [1] | 98.80% | |||
Crosman | % Ownership Fully Diluted | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | [1] | 89.20% | |||
5.11 Tactical | % Ownership Primary | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | [1] | 97.50% | |||
5.11 Tactical | % Ownership Fully Diluted | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | [1] | 85.70% | |||
|
Noncontrolling Interest Noncontrolling Interest- Additional Information (Details) - USD ($) $ in Thousands |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
May 11, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
||||
Noncontrolling Interest [Line Items] | |||||||
Cash distributions funded by debt | $ 64,692 | ||||||
Distributions paid | $ 64,692 | $ 58,644 | |||||
% Ownership Primary | ACI | |||||||
Noncontrolling Interest [Line Items] | |||||||
% Ownership | [1] | 69.40% | 69.40% | ||||
% Ownership Primary | Liberty | |||||||
Noncontrolling Interest [Line Items] | |||||||
% Ownership | [1] | 88.60% | 88.60% | ||||
% Ownership Fully Diluted | ACI | |||||||
Noncontrolling Interest [Line Items] | |||||||
% Ownership | [1] | 69.20% | 69.30% | ||||
% Ownership Fully Diluted | Liberty | |||||||
Noncontrolling Interest [Line Items] | |||||||
% Ownership | [1] | 84.70% | 84.70% | ||||
Ergobaby | % Ownership Primary | |||||||
Noncontrolling Interest [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | [1] | 82.70% | |||||
Ergobaby | % Ownership Fully Diluted | |||||||
Noncontrolling Interest [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | [1] | 76.60% | |||||
New Baby Tula, LLC | Ergobaby | |||||||
Noncontrolling Interest [Line Items] | |||||||
Consideration transferred, equity interests issued | $ 8,200 | ||||||
|
Income Taxes - Reconciliation between Federal Statutory Rate and Effective Income Tax Rate (Detail) |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Income Tax Contingency [Line Items] | ||
United States Federal Statutory Rate | (35.00%) | 35.00% |
State income taxes (net of Federal benefits) | (1.00%) | 0.20% |
Foreign income taxes | 4.50% | 1.40% |
Expenses of Compass Group Diversified Holdings, LLC representing a pass through to shareholders | 0.30% | 6.30% |
Impairment expense | 16.90% | 0.00% |
Effect of (gain) loss on equity method investment | 11.00% | (33.30%) |
Impact of subsidiary employee stock options | 2.50% | 0.70% |
Credit utilization | (7.70%) | 0.00% |
Domestic production activities deduction | (2.30%) | (0.60%) |
Effect of undistributed foreign earnings | 2.00% | 4.50% |
Non-recognition of NOL carryforwards at subsidiaries | (3.50%) | (0.00%) |
Other | 1.10% | 1.60% |
Effective income tax rate | (11.20%) | 15.80% |
Defined Benefit Plan - Additional Information (Detail) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unfunded liability | $ 3.5 | $ 3.5 |
Expected contribution to the Foreign Plan | 0.1 | 0.1 |
Arnold | Switzerland [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Contribution to the Foreign Plan | $ 0.1 | $ 0.3 |
Defined Benefit Plan - Summary of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Retirement Benefits [Abstract] | ||||
Service cost | $ 134 | $ 111 | $ 401 | $ 325 |
Interest cost | 24 | 35 | 71 | 103 |
Expected return on plan assets | (39) | (40) | (117) | (117) |
Amortization of unrecognized loss | 63 | 45 | 188 | 132 |
Net periodic benefit cost | $ 182 | $ 151 | $ 543 | $ 443 |
Subsequent Event (Detail) - Revolving Credit Facility - 2014 Credit Agreement - USD ($) $ in Millions |
1 Months Ended | |
---|---|---|
Jun. 06, 2014 |
Oct. 31, 2017 |
|
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Capitalized debt issuance costs | $ 1.4 | |
London Interbank Offered Rate (LIBOR) | Maximum | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 2.75% | |
London Interbank Offered Rate (LIBOR) | Maximum | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Base Rate | Maximum | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Base Rate | Maximum | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 1.25% |
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