Delaware | 13-3727655 |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
590 Madison Avenue, 32nd Floor | |
New York, New York | 10022 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer þ |
Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) | |
Emerging growth company o |
PART I — FINANCIAL INFORMATION | Page | |
Item 1. | Financial Statements (unaudited) | |
Item 2. | ||
Item 4. | ||
PART II — OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. | ||
September 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 296,086 | $ | 450,128 | |||
Restricted cash | 14,437 | 12,640 | |||||
Marketable securities | 46,167 | 53,650 | |||||
Trade and other receivables - net of allowance for doubtful accounts of $3,283 and $3,040, respectively | 197,387 | 162,883 | |||||
Receivables from related parties | 90 | 328 | |||||
Loans receivable, including loans held for sale of $192,573 and $80,692, respectively, net | 233,861 | 91,260 | |||||
Inventories, net | 140,208 | 119,205 | |||||
Prepaid expenses and other current assets | 19,048 | 17,638 | |||||
Assets held for sale | 2,549 | 7,779 | |||||
Total current assets | 949,833 | 915,511 | |||||
Long-term loans receivable, net | 84,393 | 62,188 | |||||
Goodwill | 170,530 | 167,423 | |||||
Other intangible assets, net | 206,158 | 227,212 | |||||
Deferred tax assets | 167,903 | 182,605 | |||||
Other non-current assets | 48,399 | 30,698 | |||||
Property, plant and equipment, net | 266,642 | 261,412 | |||||
Long-term investments | 201,752 | 120,066 | |||||
Total Assets | $ | 2,095,610 | $ | 1,967,115 | |||
LIABILITIES AND CAPITAL | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 112,311 | $ | 89,308 | |||
Accrued liabilities | 78,082 | 81,509 | |||||
Financial instruments | 14,437 | 12,640 | |||||
Deposits | 207,454 | 196,944 | |||||
Payables to related parties | 1,988 | 1,066 | |||||
Short-term debt | 1,230 | 1,385 | |||||
Current portion of long-term debt | 101,523 | 62,928 | |||||
Other current liabilities | 14,099 | 19,536 | |||||
Liabilities of discontinued operations | 450 | 450 | |||||
Total current liabilities | 531,574 | 465,766 | |||||
Long-term deposits | 205,465 | 168,661 | |||||
Long-term debt | 274,595 | 330,126 | |||||
Preferred unit liability | 63,714 | — | |||||
Accrued pension liabilities | 259,248 | 284,901 | |||||
Deferred tax liabilities | 2,029 | 3,729 | |||||
Other non-current liabilities | 14,743 | 9,674 | |||||
Total Liabilities | 1,351,368 | 1,262,857 | |||||
Commitments and Contingencies | |||||||
Capital: | |||||||
Partners' capital common units: 26,016,926 and 26,152,976 issued and outstanding (after deducting 10,718,072 and 10,558,687 units held in treasury, at cost of $167,885 and $164,900), respectively | 654,377 | 617,502 | |||||
Accumulated other comprehensive income (loss) | 8,837 | (68,761 | ) | ||||
Total partners' capital | 663,214 | 548,741 | |||||
Noncontrolling interests in consolidated entities | 81,028 | 155,517 | |||||
Total Capital | 744,242 | 704,258 | |||||
Total Liabilities and Capital | $ | 2,095,610 | $ | 1,967,115 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Diversified industrial net sales | $ | 295,485 | $ | 274,327 | $ | 879,515 | $ | 722,399 | |||||||
Energy net revenue | 37,959 | 27,154 | 99,310 | 68,868 | |||||||||||
Financial services revenue | 21,596 | 15,368 | 57,925 | 53,777 | |||||||||||
Total revenue | 355,040 | 316,849 | 1,036,750 | 845,044 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of goods sold | 247,232 | 221,876 | 723,200 | 590,814 | |||||||||||
Selling, general and administrative expenses | 80,118 | 73,592 | 249,169 | 198,779 | |||||||||||
Asset impairment charges | — | 3,057 | — | 11,527 | |||||||||||
Finance interest expense | 1,176 | 640 | 3,117 | 1,832 | |||||||||||
Provision for loan losses | 3,025 | 484 | 4,113 | 919 | |||||||||||
Interest expense | 5,147 | 3,025 | 14,446 | 7,390 | |||||||||||
Realized and unrealized (gain) loss on derivatives | (18 | ) | 275 | 57 | 814 | ||||||||||
Other (income) expenses, net | (126 | ) | (1,136 | ) | 650 | (8,011 | ) | ||||||||
Total costs and expenses | 336,554 | 301,813 | 994,752 | 804,064 | |||||||||||
Income before income taxes, equity method income and other investments held at fair value | 18,486 | 15,036 | 41,998 | 40,980 | |||||||||||
Income tax provision | 9,913 | 8,334 | 27,175 | 18,357 | |||||||||||
Income of associated companies and other investments held at fair value, net of taxes | (2,332 | ) | (6,367 | ) | (8,702 | ) | (2,649 | ) | |||||||
Net income | 10,905 | 13,069 | 23,525 | 25,272 | |||||||||||
Net income attributable to noncontrolling interests in consolidated entities | (3,892 | ) | (2,237 | ) | (9,341 | ) | (3,269 | ) | |||||||
Net income attributable to common unitholders | $ | 7,013 | $ | 10,832 | $ | 14,184 | $ | 22,003 | |||||||
Net income per common unit - basic and diluted | |||||||||||||||
Net income attributable to common unitholders | $ | 0.27 | $ | 0.41 | $ | 0.54 | $ | 0.83 | |||||||
Weighted-average number of common units outstanding - basic | 26,016,926 | 26,152,976 | 26,066,590 | 26,421,116 | |||||||||||
Weighted-average number of common units outstanding - diluted | 26,273,846 | 26,160,965 | 26,365,999 | 26,434,636 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 10,905 | $ | 13,069 | $ | 23,525 | $ | 25,272 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Gross unrealized gains (losses) on available-for-sale securities | 59,302 | (933 | ) | 72,908 | 12,631 | ||||||||||
Reclassification of unrealized (gains) losses on available-for-sale securities (a) | (253 | ) | (153 | ) | (526 | ) | 553 | ||||||||
Gross unrealized gains (losses) on derivative financial instruments | 165 | 56 | 627 | (2,113 | ) | ||||||||||
Currency translation adjustments | 2,471 | (3,349 | ) | 5,484 | (6,516 | ) | |||||||||
Change in pension liabilities and other post-retirement benefit obligations | — | (274 | ) | 97 | 67 | ||||||||||
Other comprehensive income (loss) | 61,685 | (4,653 | ) | 78,590 | 4,622 | ||||||||||
Comprehensive income | 72,590 | 8,416 | 102,115 | 29,894 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (4,276 | ) | (2,535 | ) | (11,181 | ) | (4,441 | ) | |||||||
Comprehensive income attributable to common unitholders | $ | 68,314 | $ | 5,881 | $ | 90,934 | $ | 25,453 | |||||||
Tax (benefit) provision on gross unrealized (losses) gains on available-for-sale securities | $ | (199 | ) | $ | 997 | $ | 2,433 | $ | 1,569 | ||||||
Tax (benefit) provision on reclassification of unrealized (gains) losses on available-for-sale securities | $ | (149 | ) | $ | (79 | ) | $ | (309 | ) | $ | 323 | ||||
Tax provision (benefit) on foreign currency translation adjustments | $ | 43 | $ | (7 | ) | $ | (248 | ) | $ | (467 | ) | ||||
Tax provision on change in pension liabilities and other post-retirement benefit obligations | $ | — | $ | — | $ | 57 | $ | — |
(a) | For the three months ended September 30, 2017, unrealized holding gains of $402 were reclassified to Other (income) expenses, net. For the three months ended September 30, 2016, unrealized holding gains of $232 were reclassified to Other (income) expenses, net. For the nine months ended September 30, 2017, net unrealized holding gains of $835 were reclassified to Other (income) expenses, net. For the nine months ended September 30, 2016, unrealized holding gains of $594 and unrealized holding losses of $1,470 were reclassified to Other (income) expenses, net and Asset impairment charges, respectively. |
Steel Partners Holdings L.P. Common Unitholders | |||||||||||||||||||||||||||||
Common | Treasury Units | Partners' | Accumulated Other Comprehensive | Total Partners' | Noncontrolling Interests in Consolidated | Total | |||||||||||||||||||||||
Units | Units | Dollars | Capital | Income (Loss) | Capital | Entities | Capital | ||||||||||||||||||||||
Balance at December 31, 2016 | 36,711,663 | (10,558,687 | ) | $ | (164,900 | ) | $ | 617,502 | $ | (68,761 | ) | $ | 548,741 | $ | 155,517 | $ | 704,258 | ||||||||||||
Net income | — | — | — | 14,184 | — | 14,184 | 9,341 | 23,525 | |||||||||||||||||||||
Unrealized gains on available-for-sale securities | — | — | — | — | 71,571 | 71,571 | 811 | 72,382 | |||||||||||||||||||||
Unrealized gains on derivative financial instruments | — | — | — | — | 572 | 572 | 55 | 627 | |||||||||||||||||||||
Currency translation adjustments | — | — | — | — | 4,539 | 4,539 | 945 | 5,484 | |||||||||||||||||||||
Changes in pension liabilities and other post-retirement benefit obligations | — | — | — | — | 68 | 68 | 29 | 97 | |||||||||||||||||||||
Equity compensation - incentive units and vesting of restricted units | 23,335 | — | — | 4,435 | — | 4,435 | — | 4,435 | |||||||||||||||||||||
Equity compensation - subsidiaries | — | — | — | 578 | — | 578 | 315 | 893 | |||||||||||||||||||||
Purchases of SPLP common units | — | (159,385 | ) | (2,985 | ) | (2,985 | ) | — | (2,985 | ) | — | (2,985 | ) | ||||||||||||||||
Purchases of subsidiary shares from noncontrolling interests | — | — | — | 20,649 | 848 | 21,497 | (87,086 | ) | (65,589 | ) | |||||||||||||||||||
Other, net | — | — | — | 14 | — | 14 | 1,101 | 1,115 | |||||||||||||||||||||
Balance at September 30, 2017 | 36,734,998 | (10,718,072 | ) | $ | (167,885 | ) | $ | 654,377 | $ | 8,837 | $ | 663,214 | $ | 81,028 | $ | 744,242 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 23,525 | $ | 25,272 | |||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
Provision for loan losses | 4,113 | 919 | |||||
Income of associated companies and other investments held at fair value, net of taxes | (8,702 | ) | (2,649 | ) | |||
Deferred income taxes | 10,942 | 9,218 | |||||
Depreciation and amortization | 54,213 | 46,487 | |||||
Equity-based compensation | 5,696 | 3,086 | |||||
Asset impairment charges | — | 12,936 | |||||
Other | 2,625 | (231 | ) | ||||
Net change in operating assets and liabilities: | |||||||
Trade and other receivables | (30,585 | ) | (20,512 | ) | |||
Inventories | (19,227 | ) | 770 | ||||
Prepaid expenses and other current assets | (7,282 | ) | (4,769 | ) | |||
Accounts payable, accrued and other current liabilities | (20,242 | ) | (1,184 | ) | |||
Net (increase) decrease in loans held for sale | (111,882 | ) | 52,275 | ||||
Net cash (used in) provided by operating activities | (96,806 | ) | 121,618 | ||||
Cash flows from investing activities: | |||||||
Purchases of investments | (30,387 | ) | (21,893 | ) | |||
Proceeds from sales of investments | 14,956 | 70,114 | |||||
Proceeds from maturities of marketable securities | 12,900 | 3,151 | |||||
Loan originations, net of collections | (70,860 | ) | (17,866 | ) | |||
Purchases of property, plant and equipment | (37,915 | ) | (18,733 | ) | |||
Reclassification of restricted cash | (1,797 | ) | 9,193 | ||||
Proceeds from sales of assets | 26,676 | 3,485 | |||||
Acquisitions, net of cash acquired | (2,008 | ) | (196,546 | ) | |||
Proceeds from divestitures | 1,975 | 6,644 | |||||
Other | 58 | (759 | ) | ||||
Net cash used in investing activities | (86,402 | ) | (163,210 | ) | |||
Cash flows from financing activities: | |||||||
Net revolver (repayments) borrowings | (15,719 | ) | 167,177 | ||||
Net repayments of term loans – domestic | (1,244 | ) | (1,159 | ) | |||
Proceeds from term loans | — | 9,839 | |||||
Net repayments of term loans – foreign | (1,217 | ) | (173 | ) | |||
Proceeds from equipment lease financing | 6,812 | — | |||||
Purchases of the Company's common units | (2,985 | ) | (7,297 | ) | |||
Subsidiaries' purchases of their common stock | — | (20,956 | ) | ||||
Purchase of subsidiary shares from noncontrolling interests | (2,086 | ) | — | ||||
Common unit dividend payment | (3,923 | ) | — | ||||
Net increase in deposits | 47,314 | 37,743 | |||||
Other | 1,373 | (220 | ) | ||||
Net cash provided by financing activities | 28,325 | 184,954 | |||||
Net change for the period | (154,883 | ) | 143,362 | ||||
Effect of exchange rate changes on cash and cash equivalents | 841 | (875 | ) | ||||
Cash and cash equivalents at beginning of period | 450,128 | 185,852 | |||||
Cash and cash equivalents at end of period | $ | 296,086 | $ | 328,339 |
Ownership as of | |||||
September 30, 2017 | December 31, 2016 | ||||
BNS Holdings Liquidating Trust ("BNS Liquidating Trust") | 84.9 | % | 84.9 | % | |
DGT Holdings Corp. | 100.0 | % | 100.0 | % | |
Handy & Harman Ltd. ("HNH") | 70.0 | % | 69.9 | % | |
Steel Services Ltd ("Steel Services") | 100.0 | % | 100.0 | % | |
Steel Excel Inc. ("Steel Excel") (a) | 100.0 | % | 64.2 | % | |
WebFinancial Holding Corporation ("WFHC") (b) | 91.2 | % | 91.2 | % |
(a) | The Company acquired the remaining noncontrolling interest in Steel Excel during the first quarter of 2017. See Note 11 - "Capital and Accumulated Other Comprehensive Income (Loss)" for additional information. |
(b) | WFHC owns 100% of WebBank and 100% of WebFinancial Holding LLC ("WFH LLC") (formerly CoSine Communications, Inc. ("CoSine")), which operates through its subsidiary API Group plc ("API"). |
Amount | |||
Assets: | |||
Trade and other receivables | $ | 4,249 | |
Inventories | 3,047 | ||
Prepaid expenses and other current assets | 265 | ||
Property, plant and equipment | 2,321 | ||
Goodwill | 30,994 | ||
Other intangible assets | 28,370 | ||
Total assets acquired | 69,246 | ||
Liabilities: | |||
Accounts payable | 6,036 | ||
Accrued liabilities | 2,881 | ||
Total liabilities assumed | 8,917 | ||
Net assets acquired | $ | 60,329 |
Amount | |||
Assets: | |||
Cash and cash equivalents | $ | 4,985 | |
Trade and other receivables | 32,680 | ||
Inventories | 24,295 | ||
Prepaid expenses and other current assets | 8,258 | ||
Property, plant and equipment | 23,950 | ||
Goodwill | 54,231 | ||
Other intangible assets | 92,326 | ||
Other non-current assets | 257 | ||
Total assets acquired | 240,982 | ||
Liabilities: | |||
Accounts payable | 18,433 | ||
Accrued liabilities | 21,306 | ||
Long-term debt | 9,500 | ||
Deferred tax liabilities | 23,567 | ||
Other non-current liabilities | 6,191 | ||
Total liabilities assumed | 78,997 | ||
Net assets acquired | $ | 161,985 |
Nine Months Ended September 30, | |||
2016 | |||
Total revenue | $ | 978,346 | |
Net income attributable to common unitholders | $ | 18,492 | |
Net income attributable to common unit holders per common unit - basic and diluted | $ | 0.70 |
Total | Current | Non-current | |||||||||||||||||||||||||||
September 30, 2017 | % | December 31, 2016 | % | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Loans held for sale | $ | 192,573 | $ | 80,692 | $ | 192,573 | $ | 80,692 | $ | — | $ | — | |||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Commercial – owner occupied | $ | 317 | — | % | $ | 604 | 1 | % | 20 | 43 | 297 | 561 | |||||||||||||||||
Commercial – other | 294 | — | % | 266 | — | % | — | — | 294 | 266 | |||||||||||||||||||
Total real estate loans | 611 | — | % | 870 | 1 | % | 20 | 43 | 591 | 827 | |||||||||||||||||||
Commercial and industrial | 81,417 | 63 | % | 50,564 | 68 | % | 26,068 | 3,059 | 55,349 | 47,505 | |||||||||||||||||||
Consumer loans | 48,137 | 37 | % | 22,805 | 31 | % | 19,684 | 8,949 | 28,453 | 13,856 | |||||||||||||||||||
Total loans | 130,165 | 100 | % | 74,239 | 100 | % | 45,772 | 12,051 | 84,393 | 62,188 | |||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Allowance for loan losses | (4,484 | ) | (1,483 | ) | (4,484 | ) | (1,483 | ) | — | — | |||||||||||||||||||
Total loans receivable, net | $ | 125,681 | $ | 72,756 | 41,288 | 10,568 | 84,393 | 62,188 | |||||||||||||||||||||
Loans receivable, including loans held for sale (a) | $ | 233,861 | $ | 91,260 | $ | 84,393 | $ | 62,188 |
(a) | The carrying value is considered to be representative of fair value because the rates of interest are not significantly different from market interest rates for instruments with similar maturities. The fair value of loans receivable, including loans held for sale, net was $321,459 and $153,488 at September 30, 2017 and December 31, 2016, respectively. |
September 30, 2017 | December 31, 2016 | ||||||
Finished products | $ | 49,142 | $ | 42,824 | |||
In-process | 24,868 | 19,160 | |||||
Raw materials | 49,119 | 42,881 | |||||
Fine and fabricated precious metal in various stages of completion | 18,087 | 15,019 | |||||
141,216 | 119,884 | ||||||
LIFO reserve | (1,008 | ) | (679 | ) | |||
Total | $ | 140,208 | $ | 119,205 |
September 30, 2017 | December 31, 2016 | ||||||
Supplemental inventory information: | |||||||
Precious metals stated at LIFO cost | $ | 6,085 | $ | 5,001 | |||
Precious metals stated under non-LIFO cost methods, primarily at fair value | $ | 10,994 | $ | 9,339 | |||
Market value per ounce: | |||||||
Silver | $ | 16.77 | $ | 16.05 | |||
Gold | $ | 1,283.10 | $ | 1,159.10 | |||
Palladium | $ | 935.00 | $ | 676.00 |
Diversified Industrial | Energy | Corporate and Other | Total | ||||||||||||
Balance at December 31, 2016 | |||||||||||||||
Gross goodwill | $ | 167,342 | $ | — | $ | 81 | $ | 167,423 | |||||||
Accumulated impairments | — | — | — | — | |||||||||||
Net goodwill | 167,342 | — | 81 | 167,423 | |||||||||||
Acquisitions | — | 1,144 | — | 1,144 | |||||||||||
Impairments | — | — | — | — | |||||||||||
Currency translation adjustments | 1,509 | — | — | 1,509 | |||||||||||
Other adjustments | 454 | — | — | 454 | |||||||||||
Balance at September 30, 2017 | |||||||||||||||
Gross goodwill | 169,305 | 1,144 | 81 | 170,530 | |||||||||||
Accumulated impairments | — | — | — | — | |||||||||||
Net goodwill | $ | 169,305 | $ | 1,144 | $ | 81 | $ | 170,530 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Customer relationships | $ | 222,330 | $ | 75,478 | $ | 146,852 | $ | 220,890 | $ | 57,978 | $ | 162,912 | |||||||||||
Trademarks | 52,180 | 14,286 | 37,894 | 51,717 | 11,682 | 40,035 | |||||||||||||||||
Patents and technology | 28,203 | 11,143 | 17,060 | 27,947 | 9,332 | 18,615 | |||||||||||||||||
Other | 16,144 | 11,792 | 4,352 | 16,652 | 11,002 | 5,650 | |||||||||||||||||
$ | 318,857 | $ | 112,699 | $ | 206,158 | $ | 317,206 | $ | 89,994 | $ | 227,212 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||
Short-term deposits | $ | 71,418 | $ | — | $ | — | $ | 71,418 | $ | 73,270 | $ | — | $ | — | $ | 73,270 | |||||||||||||||
Mutual funds | 11,997 | 4,716 | — | 16,713 | 11,997 | 2,279 | — | 14,276 | |||||||||||||||||||||||
Corporate securities | 24,204 | 6,337 | (1,087 | ) | 29,454 | 17,516 | 4,586 | (586 | ) | 21,516 | |||||||||||||||||||||
Corporate obligations | — | — | — | — | 17,232 | 734 | (108 | ) | 17,858 | ||||||||||||||||||||||
Total marketable securities | 107,619 | 11,053 | (1,087 | ) | 117,585 | 120,015 | 7,599 | (694 | ) | 126,920 | |||||||||||||||||||||
Amounts classified as cash equivalents | (71,418 | ) | — | — | (71,418 | ) | (73,270 | ) | — | — | (73,270 | ) | |||||||||||||||||||
Amounts classified as marketable securities | $ | 36,201 | $ | 11,053 | $ | (1,087 | ) | $ | 46,167 | $ | 46,745 | $ | 7,599 | $ | (694 | ) | $ | 53,650 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Gross realized gains | $ | 449 | $ | 899 | $ | 545 | $ | 2,902 | |||||||
Gross realized losses | (46 | ) | (667 | ) | (409 | ) | (2,308 | ) | |||||||
Realized gains (losses), net | $ | 403 | $ | 232 | $ | 136 | $ | 594 |
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
Corporate securities | $ | 6,519 | $ | (839 | ) | $ | 1,013 | $ | (248 | ) | $ | 7,532 | $ | (1,087 | ) | ||||||||
Total | $ | 6,519 | $ | (839 | ) | $ | 1,013 | $ | (248 | ) | $ | 7,532 | $ | (1,087 | ) |
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
Corporate securities | $ | 2,316 | $ | (384 | ) | $ | 662 | $ | (202 | ) | $ | 2,978 | $ | (586 | ) | ||||||||
Corporate obligations | 12,481 | (108 | ) | — | — | 12,481 | (108 | ) | |||||||||||||||
Total | $ | 14,797 | $ | (492 | ) | $ | 662 | $ | (202 | ) | $ | 15,459 | $ | (694 | ) |
Ownership % | Long-Term Investments Balance | (Income) Loss Recorded in the Consolidated Statements of Operations | |||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||
Corporate securities (1) | $ | 147,244 | $ | 75,608 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Corporate obligations (2) | 4,791 | 4,350 | (97 | ) | (340 | ) | (441 | ) | (399 | ) | |||||||||||||||||||
ModusLink Global Solutions, Inc. ("MLNK") warrants | 1 | 19 | 8 | (37 | ) | 18 | 479 | ||||||||||||||||||||||
Equity method investments: | |||||||||||||||||||||||||||||
Carried at fair value: | |||||||||||||||||||||||||||||
ModusLink Global Solutions, Inc. | 32.7 | % | 32.9 | % | 34,183 | 26,547 | (2,561 | ) | (5,104 | ) | (6,327 | ) | 11,808 | ||||||||||||||||
Aviat Networks, Inc. ("Aviat") | 12.7 | % | 12.7 | % | 11,401 | 9,269 | 262 | (1,012 | ) | (2,131 | ) | (51 | ) | ||||||||||||||||
Other | 43.8 | % | 43.8 | % | 1,223 | 1,223 | — | — | — | 517 | |||||||||||||||||||
SL Industries, Inc. | 100.0 | % | 100.0 | % | — | — | — | — | — | (8,078 | ) | ||||||||||||||||||
API Technologies Corp. ("API Tech") | — | % | — | % | — | — | — | — | — | (7,089 | ) | ||||||||||||||||||
Long-term investments carried at fair value | 198,843 | 117,016 | |||||||||||||||||||||||||||
Carried at cost: | |||||||||||||||||||||||||||||
Other equity method investments (3) | 2,909 | 3,050 | 56 | 126 | 179 | 164 | |||||||||||||||||||||||
Total | $ | 201,752 | $ | 120,066 | $ | (2,332 | ) | $ | (6,367 | ) | $ | (8,702 | ) | $ | (2,649 | ) |
(1) | Represents available-for-sale securities at September 30, 2017 and December 31, 2016. Cost basis totaled $12,550 at September 30, 2017 and $12,250 at December 31, 2016 and gross unrealized gains totaled $134,694 and $63,358 at September 30, 2017 and December 31, 2016, respectively. |
(2) | Cost basis totaled $3,480 at both September 30, 2017 and December 31, 2016 and gross unrealized gains totaled $1,311 and $870 at September 30, 2017 and December 31, 2016, respectively. Changes in fair value are recorded in the Company's consolidated statements of operations as the Company elected the fair value option to account for this investment. |
(3) | Represents Steel Excel's investments in iGo, Inc. ("iGo") of 45% and a 50% investment in API Optix s.r.o ("API Optix"), a joint venture investment held by API. |
• | MLNK provides supply chain and logistics services to companies in consumer electronics, communications, computing, medical devices, software and retail. MLNK also issued the Company warrants to purchase an additional 2,000,000 shares at $5.00 per share, which expire in March 2018. |
• | Aviat is a global provider of microwave networking solutions. |
• | The Other investment represents the Company's investment in a Japanese real estate partnership. |
• | SLI, which was previously classified as an equity method investment, was acquired by HNH in 2016. |
• | API Tech is a designer and manufacturer of high performance systems, subsystems, modules and components. In April 2016, API Tech consummated a merger pursuant to which holders of its common stock received $2.00 for each share held. Upon consummation of the merger, Steel Excel received $22,900 for its investment in API Tech, and Steel Excel no longer holds an investment in API Tech. |
• | Steel Excel has an investment in iGo, a provider of accessories for mobile devices. This investment is being accounted for under the traditional equity method. Based on the closing market price of iGo's publicly-traded shares, the fair value of the investment in iGo was approximately $3,700 and $3,900 at September 30, 2017 and December 31, 2016, respectively. |
• | WFH LLC's API subsidiary has a 50% joint venture in API Optix with IQ Structures s.r.o. API Optix provides development and origination services in the field of micro and nano-scale surface relief technology. The investment, based in Prague, Czech Republic, is being accounted for under the traditional equity method. |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Summary of balance sheet amounts: | |||||||||||||||
Current assets | $ | 257,846 | $ | 317,014 | |||||||||||
Non-current assets | 23,452 | 28,169 | |||||||||||||
Total assets | $ | 281,298 | $ | 345,183 | |||||||||||
Current liabilities | $ | 149,155 | $ | 200,966 | |||||||||||
Non-current liabilities | 69,172 | 67,483 | |||||||||||||
Total liabilities | 218,327 | 268,449 | |||||||||||||
Equity | 62,971 | 76,734 | |||||||||||||
Total liabilities and equity | $ | 281,298 | $ | 345,183 | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Summary operating results: | |||||||||||||||
Net revenue | $ | 99,777 | $ | 101,508 | $ | 315,293 | $ | 420,213 | |||||||
Gross profit | $ | 7,292 | $ | 6,477 | $ | 27,032 | $ | 34,256 | |||||||
Net loss | $ | (9,311 | ) | $ | (19,711 | ) | $ | (17,284 | ) | $ | (41,464 | ) |
September 30, 2017 | December 31, 2016 | ||||||
Short term debt: | |||||||
API - foreign | $ | 746 | $ | 832 | |||
HNH - foreign | 484 | 553 | |||||
Short-term debt | 1,230 | 1,385 | |||||
Long-term debt: | |||||||
SPLP revolving facility | 51,857 | 58,651 | |||||
HNH revolving facilities | 260,264 | 267,224 | |||||
HNH other debt - domestic | 6,178 | 6,493 | |||||
HNH foreign loan facilities | — | 1,019 | |||||
Steel Excel term loan, net of unamortized debt issuance costs | 36,267 | 36,195 | |||||
API revolving facilities | 11,261 | 12,330 | |||||
API term loans | 10,291 | 11,142 | |||||
Subtotal | 376,118 | 393,054 | |||||
Less portion due within one year | 101,523 | 62,928 | |||||
Long-term debt | 274,595 | 330,126 | |||||
Total debt | $ | 377,348 | $ | 394,439 |
September 30, | |||||||
2017 | 2016 | ||||||
Balance, beginning of period | $ | 12,640 | $ | 21,639 | |||
Settlement of short sales of corporate securities | (69 | ) | (9,194 | ) | |||
Short sales of corporate securities | 129 | 93 | |||||
Net investment losses (gains) | 1,737 | (682 | ) | ||||
Balance, end of period | $ | 14,437 | $ | 11,856 |
Commodity | Amount | Notional Value | |||
Silver | 208,710 ounces | $ | 3,511 | ||
Gold | 800 ounces | $ | 1,029 | ||
Copper | 300,000 pounds | $ | 802 | ||
Tin | 15 metric tons | $ | 312 |
Derivative | Balance Sheet Location | September 30, 2017 | December 31, 2016 | |||||||
Commodity contracts (a), (b) | Accrued liabilities | $ | (77 | ) | $ | (111 | ) | |||
Commodity contracts (c) | Prepaid expenses and other current assets | 35 | 3 | |||||||
Foreign exchange forward contracts (a), (d) | Accrued liabilities | (24 | ) | (872 | ) | |||||
Foreign exchange forward contracts (a), (b) | Prepaid expenses and other current assets (Accrued liabilities) | 23 | (76 | ) | ||||||
Economic interests in loans (c) | Other non-current assets | 11,493 | 6,162 | |||||||
Call options | Other current liabilities | (237 | ) | — | ||||||
Put options | Prepaid expenses and other current assets | 66 | — | |||||||
Total derivatives | $ | 11,279 | $ | 5,106 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Derivative | Statement of Operations Location | Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||||
Commodity contracts (a), (b) | Cost of goods sold | $ | (123 | ) | $ | (1,152 | ) | $ | (302 | ) | $ | (3,533 | ) | |||||
Commodity contracts (c) | Cost of goods sold | (39 | ) | (85 | ) | 25 | (180 | ) | ||||||||||
Commodity contracts (c) | Realized and unrealized (gain) loss on derivatives | 18 | (275 | ) | (57 | ) | (814 | ) | ||||||||||
Foreign exchange forward contracts (a), (d) | Revenue/Cost of goods sold | (427 | ) | (601 | ) | (1,223 | ) | (844 | ) | |||||||||
Foreign exchange forward contracts (a), (b) | Other (income) expenses, net | (22 | ) | (369 | ) | (253 | ) | (809 | ) | |||||||||
Economic interests in loans (c) | Revenue | 3,384 | 2,137 | 8,902 | 4,702 | |||||||||||||
Call options | Other (income) expenses, net | (79 | ) | — | (7 | ) | — | |||||||||||
Put options | Other (income) expenses, net | (196 | ) | — | (717 | ) | — | |||||||||||
Total derivatives | $ | 2,516 | $ | (345 | ) | $ | 6,368 | $ | (1,478 | ) |
(a) | Designated as hedging instruments. |
(b) | Fair value hedge. |
(c) | Economic hedge. |
(d) | Cash flow hedge. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest cost | $ | 5,594 | $ | 5,720 | $ | 16,529 | $ | 17,705 | |||||||
Expected return on plan assets | (7,267 | ) | (7,028 | ) | (19,590 | ) | (21,290 | ) | |||||||
Amortization of actuarial loss | 2,346 | 1,990 | 6,921 | 6,240 | |||||||||||
Total | $ | 673 | $ | 682 | $ | 3,860 | $ | 2,655 |
• | HNH expects to contribute $5,100 for the remainder of 2017, and $32,100, $34,100, $36,400, $31,600 and $78,800 in 2018, 2019, 2020, 2021 and for the five years thereafter, respectively. |
• | API expects to contribute approximately $938 per year until 2023. |
Nine Months Ended September 30, 2017 | |||||||||||||||||||
Unrealized gain on available-for-sale securities | Unrealized loss on derivative financial instruments | Cumulative translation adjustment | Change in net pension and other benefit obligations | Total | |||||||||||||||
Balance at beginning of period | $ | 62,527 | $ | (2,470 | ) | $ | (19,548 | ) | $ | (109,270 | ) | $ | (68,761 | ) | |||||
Other comprehensive income, net of tax - before reclassifications (a) | 72,097 | 572 | 4,539 | 68 | 77,276 | ||||||||||||||
Reclassification adjustments, net of tax (b) | (526 | ) | — | — | — | (526 | ) | ||||||||||||
Net other comprehensive income attributable to common unitholders (c) | 71,571 | 572 | 4,539 | 68 | 76,750 | ||||||||||||||
Other changes | 848 | — | — | — | 848 | ||||||||||||||
Balance at end of period | $ | 134,946 | $ | (1,898 | ) | $ | (15,009 | ) | $ | (109,202 | ) | $ | 8,837 |
(a) | Net of a tax provision of approximately $2,225. |
(b) | Net of a tax benefit of approximately $309. |
(c) | Amounts do not include the net unrealized gains on available-for-sale securities of $811, the unrealized gains on derivative financial instruments of $55, cumulative translation adjustments of $945 and the changes in net pension liabilities and other post-retirement benefit obligations of $29, which are attributable to noncontrolling interests. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 10,905 | $ | 13,069 | $ | 23,525 | $ | 25,272 | |||||||
Net income attributable to noncontrolling interests in consolidated entities | (3,892 | ) | (2,237 | ) | (9,341 | ) | (3,269 | ) | |||||||
Net income attributable to common unitholders | $ | 7,013 | $ | 10,832 | $ | 14,184 | $ | 22,003 | |||||||
Net income per common unit – basic and diluted: | |||||||||||||||
Net income attributable to common unitholders | $ | 0.27 | $ | 0.41 | $ | 0.54 | $ | 0.83 | |||||||
Denominator for net income per common unit - basic | 26,016,926 | 26,152,976 | 26,066,590 | 26,421,116 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Incentive units | 214,179 | — | 256,116 | — | |||||||||||
Unvested restricted common units | 42,741 | 7,989 | 43,293 | 13,520 | |||||||||||
Denominator for net income per common unit - diluted(a) | 26,273,846 | 26,160,965 | 26,365,999 | 26,434,636 |
(a) | For the three and nine months ended September 30, 2017, the diluted per unit calculation does not include the impact of 3,460,643 and 2,928,579 of SPLP Preferred Units, respectively, since the impact would have been anti-dilutive. |
September 30, 2017 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | |||||||||||||||
Marketable securities (a) | $ | 30,717 | $ | 3,414 | $ | 12,036 | $ | 46,167 | |||||||
Long-term investments (a) | 192,828 | 4,791 | 1,224 | 198,843 | |||||||||||
Investments in certain funds | — | — | 423 | 423 | |||||||||||
Precious metal and commodity inventories recorded at fair value | 11,609 | — | — | 11,609 | |||||||||||
Economic interests in loans | — | — | 11,493 | 11,493 | |||||||||||
Warrants | — | — | 184 | 184 | |||||||||||
Long put options | 66 | — | — | 66 | |||||||||||
Foreign currency forward exchange contracts | — | 23 | — | 23 | |||||||||||
Total | $ | 235,220 | $ | 8,228 | $ | 25,360 | $ | 268,808 | |||||||
Liabilities: | |||||||||||||||
Financial instrument obligations | $ | 14,437 | $ | — | $ | — | $ | 14,437 | |||||||
Short call options | 237 | — | — | 237 | |||||||||||
Commodity contracts on precious metal and commodity inventories | — | 42 | — | 42 | |||||||||||
Foreign currency forward exchange contracts | — | 24 | — | 24 | |||||||||||
Total | $ | 14,674 | $ | 66 | $ | — | $ | 14,740 |
December 31, 2016 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | |||||||||||||||
Marketable securities (a) | $ | 25,498 | $ | 3,994 | $ | 24,158 | $ | 53,650 | |||||||
Long-term investments (a) | 111,424 | 4,350 | 1,242 | 117,016 | |||||||||||
Investments in certain funds | — | — | 469 | 469 | |||||||||||
Precious metal and commodity inventories recorded at fair value | 10,143 | — | — | 10,143 | |||||||||||
Economic interests in loans | — | — | 6,162 | 6,162 | |||||||||||
Foreign currency forward exchange contracts | — | 92 | — | 92 | |||||||||||
Total | $ | 147,065 | $ | 8,436 | $ | 32,031 | $ | 187,532 | |||||||
Liabilities: | |||||||||||||||
Financial instrument obligations | $ | 12,640 | $ | — | $ | — | $ | 12,640 | |||||||
Commodity contracts on precious metal and commodity inventories | — | 108 | — | 108 | |||||||||||
Foreign currency forward exchange contracts | — | 1,040 | — | 1,040 | |||||||||||
Total | $ | 12,640 | $ | 1,148 | $ | — | $ | 13,788 |
(a) | For additional detail of the marketable securities and long-term investments see Note 7 - "Investments." |
Long-Term Investments | |||||||||||||||
Investments in Associated Companies (a) | MLNK Warrants (a) | Marketable Securities and Other (b) | Total | ||||||||||||
Assets | |||||||||||||||
Balance at June 30, 2016 | $ | 1,414 | $ | 27 | $ | 31,213 | $ | 32,654 | |||||||
Sales and cash collections | — | — | (1,440 | ) | (1,440 | ) | |||||||||
Unrealized gains | — | 37 | 3,237 | 3,274 | |||||||||||
Unrealized losses | — | — | — | — | |||||||||||
Balance at September 30, 2016 | $ | 1,414 | $ | 64 | $ | 33,010 | $ | 34,488 | |||||||
Balance at June 30, 2017 | $ | 1,223 | $ | 9 | $ | 23,189 | $ | 24,421 | |||||||
Sales and cash collections | — | — | (2,180 | ) | (2,180 | ) | |||||||||
Realized gain on sale | — | — | 236 | 236 | |||||||||||
Unrealized gains | — | — | 2,891 | 2,891 | |||||||||||
Unrealized losses | — | (8 | ) | — | (8 | ) | |||||||||
Balance at September 30, 2017 | $ | 1,223 | $ | 1 | $ | 24,136 | $ | 25,360 |
Long-Term Investments | |||||||||||||||
Investments in Associated Companies (a) | MLNK Warrants (a) | Marketable Securities and Other (b) | Total | ||||||||||||
Assets | |||||||||||||||
Balance at December 31, 2015 | $ | 1,931 | $ | 543 | $ | 27,980 | $ | 30,454 | |||||||
Sales and cash collections | — | — | (5,273 | ) | (5,273 | ) | |||||||||
Unrealized gains | — | — | 10,303 | 10,303 | |||||||||||
Unrealized losses | (517 | ) | (479 | ) | — | (996 | ) | ||||||||
Balance at September 30, 2016 | $ | 1,414 | $ | 64 | $ | 33,010 | $ | 34,488 | |||||||
Balance at December 31, 2016 | $ | 1,223 | $ | 19 | $ | 30,789 | $ | 32,031 | |||||||
Sales and cash collections | — | — | (17,159 | ) | (17,159 | ) | |||||||||
Realized gain on sale | — | — | 309 | 309 | |||||||||||
Unrealized gains | — | — | 10,197 | 10,197 | |||||||||||
Unrealized losses | — | (18 | ) | — | (18 | ) | |||||||||
Balance at September 30, 2017 | $ | 1,223 | $ | 1 | $ | 24,136 | $ | 25,360 |
(a) | Unrealized gains and losses are recorded in Income of associated companies and other investments held at fair value, net of taxes in the Company's consolidated statements of operations. |
(b) | Realized gains and losses on sale are recorded in Other (income) expenses, net or Revenue in the Company's consolidated statements of operations. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Diversified industrial | $ | 295,485 | $ | 274,327 | $ | 879,515 | $ | 722,399 | |||||||
Energy | 37,959 | 27,154 | 99,310 | 68,868 | |||||||||||
Financial services | 21,596 | 15,368 | 57,925 | 53,777 | |||||||||||
Total | $ | 355,040 | $ | 316,849 | $ | 1,036,750 | $ | 845,044 | |||||||
Income (loss) before income taxes: | |||||||||||||||
Diversified industrial | $ | 17,189 | $ | 12,646 | $ | 46,988 | $ | 37,499 | |||||||
Energy | (3,677 | ) | (3,380 | ) | (12,959 | ) | (6,402 | ) | |||||||
Financial services | 9,669 | 7,911 | 28,136 | 32,018 | |||||||||||
Corporate and other | (2,363 | ) | 4,226 | (11,465 | ) | (19,486 | ) | ||||||||
Income before income taxes | 20,818 | 21,403 | 50,700 | 43,629 | |||||||||||
Income tax provision | 9,913 | 8,334 | 27,175 | 18,357 | |||||||||||
Net income | $ | 10,905 | $ | 13,069 | $ | 23,525 | $ | 25,272 | |||||||
Income (loss) of associated companies and other investments held at fair value, net of taxes: | |||||||||||||||
Diversified industrial | $ | — | $ | — | $ | — | $ | 8,078 | |||||||
Energy | (318 | ) | 886 | 1,952 | 6,976 | ||||||||||
Corporate and other | 2,650 | 5,481 | 6,750 | (12,405 | ) | ||||||||||
Total | $ | 2,332 | $ | 6,367 | $ | 8,702 | $ | 2,649 |
Amount of Capital Required | ||||||||||||||||||||||||||||
Actual | For Capital Adequacy Purposes | Minimum Capital Adequacy With Capital Buffer | To Be Well Capitalized Under Prompt Corrective Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
As of September 30, 2017 | ||||||||||||||||||||||||||||
Total Capital | ||||||||||||||||||||||||||||
(to risk-weighted assets) | $ | 103,148 | 26.20 | % | $ | 31,475 | 8.00 | % | $ | 36,393 | 9.25 | % | $ | 39,344 | 10.00 | % | ||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||
(to risk-weighted assets) | $ | 98,476 | 25.00 | % | $ | 23,606 | 6.00 | % | $ | 28,524 | 7.25 | % | $ | 31,475 | 8.00 | % | ||||||||||||
Common Equity Tier 1 Capital | ||||||||||||||||||||||||||||
(to risk-weighted assets) | $ | 98,476 | 25.00 | % | $ | 17,705 | 4.50 | % | $ | 22,623 | 5.75 | % | $ | 25,574 | 6.50 | % | ||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||
(to average assets) | $ | 98,476 | 20.90 | % | $ | 18,849 | 4.00 | % | n/a | n/a | $ | 23,562 | 5.00 | % | ||||||||||||||
As of December 31, 2016 | ||||||||||||||||||||||||||||
Total Capital | ||||||||||||||||||||||||||||
(to risk-weighted assets) | $ | 90,369 | 33.90 | % | $ | 21,320 | 8.00 | % | $ | 22,985 | 8.63 | % | $ | 26,649 | 10.00 | % | ||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||
(to risk-weighted assets) | $ | 88,698 | 33.30 | % | $ | 15,990 | 6.00 | % | $ | 17,655 | 6.63 | % | $ | 21,320 | 8.00 | % | ||||||||||||
Common Equity Tier 1 Capital | ||||||||||||||||||||||||||||
(to risk-weighted assets) | $ | 88,698 | 33.30 | % | $ | 11,992 | 4.50 | % | $ | 13,658 | 5.13 | % | $ | 17,322 | 6.50 | % | ||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||
(to average assets) | $ | 88,698 | 22.20 | % | $ | 15,956 | 4.00 | % | n/a | n/a | $ | 19,944 | 5.00 | % |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash paid during the period for: | |||||||
Interest | $ | 16,170 | $ | 8,533 | |||
Taxes | $ | 16,707 | $ | 10,842 | |||
Non-cash investing activities: | |||||||
Reclassification of investment in associated company to cost of an acquisition | $ | — | $ | 39,794 | |||
Exchange of debt securities for equity securities | $ | 3,317 | $ | — | |||
Securities received as distributions from venture capital fund | $ | — | $ | 19 | |||
Securities delivered in exchange for settlement of financial instrument obligations | $ | — | $ | 9,155 | |||
Noncontrolling interest acquired in non-monetary exchange | $ | — | $ | 194 | |||
Non-cash financing activities: | |||||||
Issuance of SPLP Preferred Units to purchase subsidiary shares from noncontrolling interests | $ | 63,503 | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Investment income | $ | (33 | ) | $ | (1,232 | ) | $ | (133 | ) | $ | (3,470 | ) | |||
Realized gains on sales of marketable securities, net | (403 | ) | (232 | ) | (835 | ) | (594 | ) | |||||||
Realized loss (gain) on financial instrument obligations | 438 | 563 | 1,737 | (119 | ) | ||||||||||
Other, net | (128 | ) | (235 | ) | (119 | ) | (3,828 | ) | |||||||
Other (income) expenses, net | $ | (126 | ) | $ | (1,136 | ) | $ | 650 | $ | (8,011 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | $ | 355,040 | $ | 316,849 | $ | 1,036,750 | $ | 845,044 | |||||||
Cost of goods sold | 247,232 | 221,876 | 723,200 | 590,814 | |||||||||||
Selling, general and administrative expenses | 80,118 | 73,592 | 249,169 | 198,779 | |||||||||||
Asset impairment charges | — | 3,057 | — | 11,527 | |||||||||||
Interest expense | 5,147 | 3,025 | 14,446 | 7,390 | |||||||||||
All other expenses (income), net | 4,057 | 263 | 7,937 | (4,446 | ) | ||||||||||
Total costs and expenses | 336,554 | 301,813 | 994,752 | 804,064 | |||||||||||
Income before income taxes, equity method income and other investments held at fair value | 18,486 | 15,036 | 41,998 | 40,980 | |||||||||||
Income tax provision | 9,913 | 8,334 | 27,175 | 18,357 | |||||||||||
Income of associated companies and other investments held at fair value, net of taxes | (2,332 | ) | (6,367 | ) | (8,702 | ) | (2,649 | ) | |||||||
Net income | 10,905 | 13,069 | 23,525 | 25,272 | |||||||||||
Net income attributable to noncontrolling interests in consolidated entities | (3,892 | ) | (2,237 | ) | (9,341 | ) | (3,269 | ) | |||||||
Net income attributable to common unitholders | $ | 7,013 | $ | 10,832 | $ | 14,184 | $ | 22,003 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Diversified industrial | $ | 295,485 | $ | 274,327 | $ | 879,515 | $ | 722,399 | |||||||
Energy | 37,959 | 27,154 | 99,310 | 68,868 | |||||||||||
Financial services | 21,596 | 15,368 | 57,925 | 53,777 | |||||||||||
Total | $ | 355,040 | $ | 316,849 | $ | 1,036,750 | $ | 845,044 | |||||||
Income (loss) before income taxes: | |||||||||||||||
Diversified industrial | $ | 17,189 | $ | 12,646 | $ | 46,988 | $ | 37,499 | |||||||
Energy | (3,677 | ) | (3,380 | ) | (12,959 | ) | (6,402 | ) | |||||||
Financial services | 9,669 | 7,911 | 28,136 | 32,018 | |||||||||||
Corporate and other | (2,363 | ) | 4,226 | (11,465 | ) | (19,486 | ) | ||||||||
Income before income taxes | 20,818 | 21,403 | 50,700 | 43,629 | |||||||||||
Income tax provision | 9,913 | 8,334 | 27,175 | 18,357 | |||||||||||
Net income | $ | 10,905 | $ | 13,069 | $ | 23,525 | $ | 25,272 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Net cash (used in) provided by operating activities | $ | (96,806 | ) | $ | 121,618 | ||
Net cash used in investing activities | (86,402 | ) | (163,210 | ) | |||
Net cash provided by financing activities | 28,325 | 184,954 | |||||
Net change for the period | $ | (154,883 | ) | $ | 143,362 |
• | The benefits of the transaction may not be realized as expected or may not be achieved within the anticipated time frame, or at all, which could adversely affect SPLP's results of operations or cash flows and negatively affect the price of the SPLP Preferred Units and SPLP common units; and |
• | If the value of HNH's business, together with any synergies expected to be achieved from SPLP's acquisition of HNH, is considered by investors to be less than the value of the SPLP Preferred Units exchanged for HNH shares in the transaction, the trading price of the SPLP Preferred Units and SPLP common units could decrease. |
Exhibit No. | Description | |
Exhibit 101.INS | XBRL Instance Document | |
Exhibit 101.SCH | XBRL Taxonomy Extension Schema | |
Exhibit 101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |
Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase | |
Exhibit 101.LAB | XBRL Taxonomy Extension Label Linkbase | |
Exhibit 101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
Dated: | November 7, 2017 | STEEL PARTNERS HOLDINGS L.P. | |
By: | Steel Partners Holdings GP Inc. | ||
Its General Partner | |||
By: | /s/ Douglas B. Woodworth | ||
Douglas B. Woodworth | |||
Chief Financial Officer | |||
(Principal Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 of Steel Partners Holdings L.P.; |
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 fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer 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. |
Date: | ||||
November 7, 2017 | /s/ Warren G. Lichtenstein | |||
Warren G. Lichtenstein Executive Chairman of Steel Partners Holdings GP Inc. |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 of Steel Partners Holdings L.P.; |
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 fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer 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. |
Date: | ||||
November 7, 2017 | /s/ Douglas B. Woodworth | |||
Douglas B. Woodworth Chief Financial Officer of Steel Partners Holdings GP Inc. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
Date: | ||||
November 7, 2017 | /s/ Warren G. Lichtenstein | |||
Warren G. Lichtenstein Executive Chairman of Steel Partners Holdings GP Inc. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
Date: | ||||
November 7, 2017 | /s/ Douglas B. Woodworth | |||
Douglas B. Woodworth Chief Financial Officer of Steel Partners Holdings GP Inc. |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Nov. 06, 2017 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | STEEL PARTNERS HOLDINGS L.P. | |
Entity Central Index Key | 0001452857 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 26,016,926 |
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3,283 | $ 3,040 |
Loans held for sale | $ 192,573 | $ 80,692 |
Common units issued (in shares) | 26,016,926 | 26,152,976 |
Common units outstanding (in shares) | 26,016,926 | 26,152,976 |
Common units held in treasury (in shares) | 10,718,072 | 10,558,687 |
Common units held in treasury, at cost | $ 167,885 | $ 164,900 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 10,905 | $ 13,069 | $ 23,525 | $ 25,272 | ||
Other comprehensive income (loss), net of tax: | ||||||
Gross unrealized gains (losses) on available-for-sale securities | 59,302 | (933) | 72,908 | 12,631 | ||
Reclassification of unrealized (gains) losses on available-for-sale securities | [1] | (253) | (153) | (526) | 553 | |
Gross unrealized gains (losses) on derivative financial instruments | 165 | 56 | 627 | (2,113) | ||
Currency translation adjustments | 2,471 | (3,349) | 5,484 | (6,516) | ||
Change in pension liabilities and other post-retirement benefit obligations | 0 | (274) | 97 | 67 | ||
Other comprehensive income (loss) | 61,685 | (4,653) | 78,590 | 4,622 | ||
Comprehensive income | 72,590 | 8,416 | 102,115 | 29,894 | ||
Comprehensive income attributable to noncontrolling interests | (4,276) | (2,535) | (11,181) | (4,441) | ||
Comprehensive income attributable to common unitholders | 68,314 | 5,881 | 90,934 | 25,453 | ||
Tax (benefit) provision on gross unrealized (losses) gains on available-for-sale securities | (199) | 997 | 2,433 | 1,569 | ||
Tax (benefit) provision on reclassification of unrealized (gains) losses on available-for-sale securities | (149) | (79) | (309) | 323 | ||
Tax provision (benefit) on foreign currency translation adjustments | 43 | (7) | (248) | (467) | ||
Tax provision on change in pension liabilities and other post-retirement benefit obligations | $ 0 | $ 0 | $ 57 | $ 0 | ||
|
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|||
Reclassification of unrealized (gains) and losses, net of tax | [1] | $ (253) | $ (153) | $ (526) | $ 553 | |
Other (income) expense | ||||||
Reclassification of unrealized (gains) and losses, net of tax | $ (402) | $ (232) | $ (835) | (594) | ||
Asset impairment charges | ||||||
Reclassification of unrealized (gains) and losses, net of tax | $ 1,470 | |||||
|
Nature of the Business and Basis of Presentation |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of the Business and Basis of Presentation | NATURE OF THE BUSINESS AND BASIS OF PRESENTATION Nature of the Business Steel Partners Holdings L.P. ("SPLP" or "Company") is a diversified global holding company that engages in multiple businesses through consolidated subsidiaries, associated companies and other interests. It owns and operates businesses and has significant interests in companies in various industries, including diversified industrial products, energy, defense, supply chain management and logistics, banking and youth sports. SPLP operates through the following segments: Diversified Industrial, Energy, Financial Services, and Corporate and Other, which are managed separately and offer different products and services. For additional details related to the Company's reportable segments see Note 17 - "Segment Information." Steel Partners Holdings GP Inc. ("SPH GP"), a Delaware corporation, is the general partner of SPLP and is wholly-owned by SPLP. The Company is managed by SP General Services LLC ("Manager"), pursuant to the terms of an amended and restated management agreement ("Management Agreement") discussed in further detail in Note 16 - "Related Party Transactions." Basis of Presentation The consolidated balance sheet as of December 31, 2016, which has been derived from audited financial statements, and the unaudited consolidated financial statements included herein have been prepared by the Company in accordance with the rules and regulations of the Securities and Exchange Commission for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted in accordance with those rules and regulations. The Company believes that the disclosures made are adequate to make the information not misleading. This quarterly report on Form 10-Q should be read in conjunction with the Company's audited consolidated financial statements on Form 10-K for the year ended December 31, 2016. Certain amounts for the prior year have been reclassified to conform to the current year presentation. In the opinion of management, the interim financial statements reflect all normal and recurring adjustments necessary to present fairly the consolidated financial position and the results of operations and changes in cash flows for the interim periods. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Estimates are based on historical experience, expected future cash flows and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the operating results for the full year. The consolidated financial statements include the accounts of the Company and its majority or wholly-owned subsidiaries, which include the following:
On June 26, 2017, SPLP and Handy Acquisition Co., a Delaware corporation and a wholly-owned subsidiary of SPLP ("Merger Sub") entered into an Agreement and Plan of Merger ("Merger Agreement") with HNH, pursuant to which, among other things, SPLP and Merger Sub made a tender offer ("Offer") to purchase any and all of the outstanding shares of common stock of HNH not already owned by SPLP or any entity that is an affiliate of SPLP. The Offer was successfully completed on October 12, 2017, and the Company now owns 100% of HNH. For additional information on the results of the Offer, see Note 21 - "Subsequent Events." New or Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), and has since issued several additional amendments thereto (collectively referred to herein as "ASC 606"), which will become effective for the Company on January 1, 2018. The core principle of the guidance 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, and the guidance defines a five-step process to achieve this core principle. ASC 606 also requires additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASC 606 may be applied either (i) retrospectively, reflecting the application of the standard in each prior reporting period presented with an election for certain specified practical expedients (retrospective method), or (ii) retrospectively with the cumulative effect of initially applying ASC 606 recognized in partners' capital at the date of adoption, with additional disclosure requirements (modified retrospective method). The Company plans to adopt ASC 606 in the first quarter of 2018 using the modified retrospective method and will present the cumulative effect of applying the standard to all contracts not completed as of the adoption date. As of September 30, 2017, the Company is in the process of: (i) finalizing its review of customer contracts; (ii) training internal stakeholders on the pending changes to revenue recognition policies; and (iii) assessing and implementing appropriate changes to the Company's business processes and controls to support revenue recognition and disclosures under the new standard. At this time, the Company anticipates that the primary change to its accounting policies for certain of its business units upon adopting ASC 606 will relate to the timing of when revenue is recognized. While revenue from most contracts will continue to be recognized at a point in time, revenue from other contracts (for example, contracts for sale of custom manufactured goods that do not have an alternative use and for which the Company has an enforceable right to payment) may be required to be recognized over time. For contracts that are required to be recognized over time, the Company will accelerate revenue recognition throughout the production process, whereas previously the Company did not recognize revenue until the product shipped or reached its destination, based on the transfer of risks and title. The Company is still finalizing its assessment, including the specific dollar impact that over time recognition will have on the Company's consolidated financial statements. The Company continues to assess the impact of ASC 606 on the costs to acquire and fulfill its customer contracts, including whether the Company will apply the practical expedient of expensing contract costs when incurred if the amortization period of the asset that it would have recognized is one year or less. Currently, the Company's accounting policy is to expense contract costs as they are incurred. The Company expects to complete its implementation work in time to adopt ASC 606 for periods starting after December 31, 2017. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments do not apply to inventory that is measured using the last in, first out ("LIFO") cost method. On January 1, 2017, the Company began applying the inventory measurement provisions of the new ASU, and such provisions did not have and are not expected to have a material impact on the Company's consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10), which eliminates the requirement to classify equity securities with readily determinable market values as either available-for-sale securities or trading securities, and requires that equity investments, other than those accounted for under the traditional equity method of accounting, be measured at their fair value with changes in fair value recognized in net income or loss. Equity investments that do not have readily determinable market values may be measured at cost, subject to an assessment for impairment. ASU No. 2016-01 also requires enhanced disclosures about such equity investments. ASU No. 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption prohibited. Upon adoption, a reporting entity should apply the provisions of ASU No. 2016-01 by means of a cumulative effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. ASU No. 2016-01 will impact the Company's consolidated statement of operations for amounts related to unrealized gains and losses on available-for-sale securities, which are currently reported in the Company's consolidated statement of comprehensive income, however, the Company is still assessing the overall potential impact of adopting ASU No. 2016-01 on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability, measured on a discounted basis, on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. A modified retrospective transition approach is required for capital and operating leases existing at the date of adoption, with certain practical expedients available. The Company is currently evaluating the potential impact of this new guidance, which is effective for the Company's 2019 fiscal year. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This new standard simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows, among other things. The new standard is effective for the Company's 2017 fiscal year, and the Company has adopted its provisions as of January 1, 2017. The impacts of certain amendments in ASU No. 2016-09, such as those related to the treatment of tax windfalls from stock-based compensation that are included in net operating loss carryforwards and elections made for accounting for forfeitures, are required to be adopted on a modified retrospective basis through a cumulative-effect adjustment to partners' capital. Upon adoption, on January 1, 2017, the Company recorded a deferred tax asset of approximately $4,600 and a corresponding valuation allowance resulting in no net impact on Partners' capital. In addition, the Company elected to continue to estimate forfeitures under its current policy, therefore, there was no modified retrospective adjustment required for accounting for forfeitures upon adoption. The other provisions of ASU No. 2016-09, such as classification of certain items in the statement of cash flows, are being applied in 2017, with reclassification of prior period amounts where applicable. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new standard changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments, including trade receivables, from an incurred loss model to an expected loss model and adds certain new required disclosures. Under the expected loss model, entities will recognize estimated credit losses to be incurred over the entire contractual term of the instrument rather than delaying recognition of credit losses until it is probable the loss has been incurred. The new standard is effective for the Company's 2020 fiscal year with early adoption permitted for all entities in fiscal years beginning after December 15, 2018. The Company is currently evaluating the potential impact of this new guidance. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This new standard provides guidance to help decrease diversity in practice in how certain cash receipts and cash payments are classified in the statement of cash flows. The amendments in ASU No. 2016-15 provide guidance on eight specific cash flow issues. The new standard is effective for the Company's 2018 fiscal year. The Company is currently evaluating the potential impact of this new guidance. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This new standard provides guidance on the classification of restricted cash in the statement of cash flows. The amendments in ASU No. 2016-18 are effective for the Company's 2018 fiscal year. The Company is currently evaluating the potential impact of this new guidance. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This new standard provides guidance to help determine more clearly what is a business acquisition, as opposed to an asset acquisition. The amendments provide a screen to help determine when a set of components is a business by reducing the number of transactions in an acquisition that need to be evaluated. The new standard states that to classify the acquisition of assets as a business, there must be an input and a substantive process that jointly contribute to the ability to create outputs, with outputs being defined as the key elements of the business. If all of the fair value of the assets acquired are concentrated in a single asset group, this would not qualify as a business. The amendments in ASU No. 2017-01 are effective for the Company's 2018 fiscal year. The Company is currently evaluating the potential impact of this new guidance. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new standard simplifies subsequent measurements of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, entities will perform their interim or annual goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge based on the amount that the carrying amount exceeds the reporting unit's fair value. The loss recognized should not exceed the total goodwill allocated to the reporting unit. The amendments in ASU No. 2017-04 are effective for the Company's 2020 fiscal year. The Company is currently evaluating the potential impact of this new guidance. In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This new standard requires the components of net benefit cost to be disaggregated within the statement of operations, with service cost being included in the same line item as other compensation costs, and any other components being presented outside of operating income. The amendments in ASU No. 2017-07 are effective for the Company's 2018 fiscal year. The Company is currently evaluating the potential impact of this guidance, but it does not currently expect that there will be any impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. This new standard provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard states that entities should account for the effects of a modification unless the fair value of the modified award is the same as the fair value of the original award, the vesting conditions do not change, and the classification as an equity instrument or a liability instrument is the same. The amendments in ASU No. 2017-09 are effective for the Company's 2018 fiscal year. The Company is currently evaluating the potential impact of this new guidance. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This new standard was created to refine and expand hedge accounting for both financial and commodity risk in order to simplify the current application of hedge accounting guidance in current U.S. GAAP. This new standard creates more transparency around how hedging results are presented, both in the notes and on the face of the financial statements. The amendments in ASU No. 2017-12 are effective for the Company's 2019 fiscal year. The Company is currently evaluating the potential impact of this new guidance. |
Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | ACQUISITIONS 2017 Acquisition On May 19, 2017, Steel Excel acquired an 80% interest in Basin Well Logging Wireline Services, Inc. ("Basin") located in Farmington, New Mexico for approximately $5,100. Basin provides wireline services to major oil and gas exploration and production companies in the U.S. and specializes in cased-hole wireline logging and perforating services for exploration and production companies with wells in New Mexico, Texas, Utah, Arizona and Colorado. In connection with the Basin acquisition, which was not material to SPLP's operations, goodwill totaling approximately $1,144 was recorded on a preliminary basis as of September 30, 2017. 2016 Acquisitions HNH's Acquisition of EME On September 30, 2016, SL Montevideo Technology, Inc. ("SMTI"), a subsidiary of SL Industries, Inc. ("SLI") (which was acquired by HNH in June 2016 as discussed further below), entered into an asset purchase agreement ("Purchase Agreement") with Hamilton Sundstrand Corporation ("Hamilton"). Pursuant to the Purchase Agreement, SMTI acquired from Hamilton certain assets of its Electromagnetic Enterprise division ("EME") used or useful in the design, development, manufacture, marketing, service, distribution, repair, and sale of electric motors, starters and generators for certain commercial applications, including for use in commercial hybrid electric vehicles and refrigeration and in the aerospace and defense sectors. The acquisition of EME expands SLI's product portfolio and diversifies its customer base. SMTI purchased the acquired net assets for $60,329 in cash and assumption of certain ordinary course business liabilities, subject to adjustments related to working capital at closing and quality of earnings of the acquired business for the period of January 1, 2016 to June 30, 2016, each as provided in the Purchase Agreement, including a reduction of approximately $2,200 received during the nine months ended September 30, 2017. The Purchase Agreement includes a guarantee by Hamilton of a minimum level of product purchases from SMTI by an affiliate of Hamilton for calendar years 2017, 2018 and 2019, in exchange for compliance by SMTI with certain operating covenants. The transaction was financed with additional borrowings under HNH's senior secured revolving credit facility. The following table summarizes the amounts of the assets acquired and liabilities assumed at the acquisition date:
The goodwill of $30,994 arising from the acquisition consists largely of the synergies expected from combining the operations of SLI and EME. The goodwill is assigned to the Company's Diversified Industrial segment and is expected to be deductible for income tax purposes. Other intangible assets consist of customer relationships of approximately $27,200 and customer order backlog of approximately $1,200. The customer order backlog was amortized based on the expected period over which the orders were fulfilled of four months. The customer relationships have been assigned a useful life of 15 years based on the limited turnover and long-standing relationships EME has with its existing customer base. The acquired customer relationships were valued using an excess earnings approach, and significant assumptions used in the valuation included the customer attrition rate assumed and the expected level of future sales. The amount of net sales and operating income of the acquired business included in the Company's consolidated statement of operations for the three months ended September 30, 2017 were approximately $12,813 and $898, respectively. The amount of net sales and operating income of the acquired business included in the Company's consolidated statement of operations for the nine months ended September 30, 2017 were approximately $40,307 and $3,221, respectively. The results of operations are reported within the Company's Diversified Industrial segment. API's Acquisitions of AMP and Hazen On December 1, 2016, API acquired the manufacturing assets and business of Amsterdam Metallized Products B.V. ("AMP") in the Netherlands for approximately $7,800. AMP is a leading global provider of packaging technologies for brand enhancement. The acquisition, which is not material to SPLP's operations, is part of API's strategy to further strengthen its brand enhancement mission of utilizing high-end material substrates for luxury packaging and other niche markets, adding new products to API's offerings and providing an entry point into new packaging sectors. In connection with the AMP acquisition, the Company has recorded inventories, property, plant and equipment, other intangible assets (primarily customer relationships) and goodwill totaling approximately $1,500, $1,900, $1,400 and $3,000, respectively. On July 27, 2016, API acquired Hazen Paper Company's ("Hazen") lamination facility and business in Osgood, Indiana for approximately $14,000. The acquisition, which is not material to SPLP's operations, is part of API's strategy to focus on brand enhancement solutions for the packaging market, and it enables API to provide a combined foils and laminate offering to customers in the U.S., while giving broader coverage for its global customers. In connection with the Hazen acquisition, the Company has recorded inventories, property, plant and equipment, other intangible assets (primarily customer relationships) and goodwill totaling approximately $1,000, $6,200, $2,700 and $4,100, respectively. HNH's Acquisition of SLI On April 6, 2016, HNH entered into a definitive merger agreement with SLI, pursuant to which it commenced a cash tender offer to purchase all the outstanding shares of SLI's common stock, at a purchase price of $40.00 per share in cash ("SLI Offer"). SLI designs, manufactures and markets power electronics, motion control, power protection, power quality electromagnetic equipment, and custom gears and gearboxes used in a variety of medical, commercial and military aerospace, computer, datacom, industrial, architectural and entertainment lighting, and telecom applications. Consummation of the SLI Offer was subject to certain conditions, including the tender of a number of shares that constituted at least (1) a majority of SLI's outstanding shares and (2) 60% of SLI's outstanding shares not owned by HNH or any of its affiliates, as well as other customary conditions. SPLP beneficially owned approximately 25.1% of SLI's outstanding shares at the time of the SLI Offer. On June 1, 2016, the conditions noted above, as well as all other conditions to the SLI Offer were satisfied, and HNH successfully completed its tender offer through a wholly-owned subsidiary. Pursuant to the terms of the merger agreement, the wholly-owned subsidiary merged with and into SLI, with SLI being the surviving corporation ("SLI Merger"). Upon completion of the SLI Merger, SLI became a wholly-owned subsidiary of HNH. The aggregate merger consideration was $161,985, excluding related transaction fees and expenses. The merger consideration represents the aggregate cash merger consideration of $122,191 paid by HNH to non-affiliates and the fair value of SPLP's previously held interest in SLI of $39,794, which represented the Company's previously held equity interest at a value of $40.00 per share. The funds necessary to consummate the SLI Offer, the SLI Merger and to pay related fees and expenses were financed with additional borrowings under HNH's senior secured revolving credit facility. The following table summarizes the amounts of the assets acquired and liabilities assumed at the acquisition date:
The goodwill of $54,231 arising from the acquisition consists largely of the synergies expected from combining the operations of HNH and SLI. The goodwill is assigned to the Company's Diversified Industrial segment and is not expected to be deductible for income tax purposes. Other intangible assets consist primarily of acquired trade names of approximately $14,700, customer relationships of approximately $59,900, developed technology and patents of approximately $10,700 and customer order backlog of approximately $6,900. The customer order backlog was amortized based on the expected period over which the orders were fulfilled, ranging from two to eight months. The remaining intangible assets have been assigned useful lives ranging from 10 to 15 years based on the long operating history, broad market recognition and continued demand for the associated brands, and the limited turnover and long-standing relationships SLI has with its existing customer base. The valuations of acquired trade names, developed technology and patents were performed utilizing a relief from royalty method, and significant assumptions used in the valuation included the royalty rate assumed and the expected level of future sales, as well as the rate of technical obsolescence for the developed technology and patents. The acquired customer relationships were valued using an excess earnings approach, and significant assumptions used in the valuation included the customer attrition rate assumed and the expected level of future sales. Included in Accrued liabilities and Other non-current liabilities above was a total of $10,900 for existing and contingent liabilities relating to SLI's environmental matters, which are further discussed in Note 15 - "Commitments and Contingencies." The amount of net sales and operating income of the acquired business included in the Company's consolidated statement of operations for the three months ended September 30, 2017 were approximately $49,230 and $4,276, respectively. The amount of net sales and operating income of the acquired business included in the Company's consolidated statement of operations for the nine months ended September 30, 2017 were approximately $144,658 and $12,024, respectively. The amount of net sales and operating loss of the acquired business included in the consolidated statement of operations for the three months ended September 30, 2016 were approximately $48,300 and $200, respectively. The amount of net sales and operating loss of the acquired business included in the consolidated statement of operations for the nine months ended September 30, 2016 were approximately $60,100 and $3,000, respectively. The operating loss for the nine-month period included $1,900 of expenses associated with the amortization of the fair value adjustment to acquisition-date inventories. The operating loss for the nine-month period also included $1,900 of expenses associated with the acceleration of SLI's previously outstanding stock-based compensation awards, which became fully vested on the date of acquisition pursuant to the terms of the merger agreement, and which are included in Selling, general and administrative expenses ("SG&A") in the Company's 2016 consolidated statements of operations. The results of operations are reported within the Company's Diversified Industrial segment. Pro Forma Disclosures Unaudited pro forma revenue and net income attributable to common unitholders of the combined entities is presented below as if SLI and EME had both been acquired January 1, 2015.
This unaudited pro forma data is presented for informational purposes only and does not purport to be indicative of the results of future operations or of the results that would have occurred had the SLI and EME acquisitions taken place on January 1, 2015. The information for the nine months ended September 30, 2016 is based on historical financial information with respect to the acquisitions and does not include operational or other changes which might have been effected by the Company. The unaudited pro forma earnings were adjusted to reflect incremental depreciation and amortization expense based on the fair value adjustments for the acquired property, plant and equipment and intangible assets, which are amortized using the double-declining balance method for customer relationships and the straight line method for other intangibles, over periods principally ranging from 10 to 15 years, except for the customer order backlog, which is amortized over periods ranging from two to eight months. The unaudited pro forma earnings were also adjusted to reflect incremental interest expense on the borrowings made to finance the acquisitions. The supplemental unaudited pro forma earnings exclude a total of $6,900 of acquisition-related costs incurred by HNH, SLI and EME during the nine months ended September 30, 2016. The 2016 supplemental unaudited pro forma earnings further reflect adjustments to exclude $1,900 of nonrecurring expense related to SLI's amortization of the fair value adjustment to acquisition-date inventories, as well as $1,900 in expense associated with the acceleration of SLI's previously outstanding stock-based compensation awards. |
Divestitures and Asset Impairment Charges |
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Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures and Asset Impairment Charges | DIVESTITURES AND ASSET IMPAIRMENT CHARGES Divestitures In the second quarter of 2017, API sold a facility in Salford, UK for approximately $5,000 and recorded a gain on sale of approximately $450, which is recorded in Other (income) expenses, net in the Company's consolidated statements of operations. Also, in the first quarter of 2017, API sold a facility in Rahway, N.J. for approximately $7,500 and recorded a gain on sale of approximately $200, which is recorded in Other (income) expenses, net in the Company's consolidated statements of operations. In January 2017, HNH sold its Micro-Tube Fabricators, Inc. business ("MTF") for approximately $2,500 and recorded a loss on sale of $400, which is included in Other (income) expenses, net in the Company's consolidated statements of operations. MTF specialized in the production of precision fabricated tubular components produced for medical device, aerospace, aircraft, automotive and electronic applications, and it was included in the Company's Diversified Industrial segment. The price was payable $2,000 in cash at closing and a $500 subordinated promissory note to HNH bearing 5% interest annually. Half the note was paid six months after closing and the remainder will be paid 1-year after closing. In addition, HNH may receive up to $1,000 of additional contingent consideration if certain sales volume milestones are met between the sale date and December 31, 2019. The operations of MTF were not significant to the Company's consolidated financial statements. In April 2016, API sold its security holographics business for approximately $8,000 and recorded a gain of approximately $2,800, which is recorded in Other (income) expenses, net in the Company's consolidated statements of operations. API's security holographics business created custom optical security solutions to protect secure documents and premium products against counterfeit and fraud, and it was included in the Company's Diversified Industrial segment. The sale was part of API's strategy to focus on its decorative holographic offerings for the packaging market. The operations of this business were not significant to the Company's consolidated financial statements. Asset Impairment Charges In connection with HNH's integration of JPS Industries, Inc. ("JPS") after its acquisition in July 2015, HNH approved the closure of JPS' Slater, South Carolina operating facility during the second quarter of 2016 and recorded impairment charges totaling $7,900 associated with the planned closure, including write-downs of $6,600 to property, plant and equipment and $400 to intangible assets, as well as a $900 inventory write-down, which was recorded in Cost of goods sold in the Company's consolidated statements of operations. Due to improved operational productivity and available capacity at Lucas-Milhaupt facilities, HNH approved the closure of its Lucas-Milhaupt Gliwice, Poland operating facility as part of its continual focus to optimize infrastructure costs. During the third quarter of 2016, HNH recorded asset impairment charges totaling $3,557, primarily due to write-downs of $1,500 to property, plant, and equipment and $500 to inventories, associated with the planned closure. The inventory write-down was recorded in Cost of goods sold in the Company's Consolidated Statements of Operations. In the nine months ended September 30, 2016, the Company recorded non-cash asset impairment charges of $1,470 related to other-than-temporary impairments on certain investments. This determination was based on several factors, including adverse changes in the market conditions and economic environments in which the entities operate. For additional information, see Note 7 - "Investments." |
Loans Receivable, Including Loans Held For Sale |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable, Including Loans Held For Sale | LOANS RECEIVABLE, INCLUDING LOANS HELD FOR SALE Major classification of WebBank's loans receivable, including loans held for sale, at September 30, 2017 and December 31, 2016 are as follows:
Commercial and industrial loans include unaccreted discounts of $692 at September 30, 2017. Consumer loans include unaccreted discounts of $136 at September 30, 2017. Loans with a carrying value of approximately $50,310 and $47,237 were pledged as collateral for potential borrowings at September 30, 2017 and December 31, 2016, respectively. WebBank serviced $3,496 in loans for others at September 30, 2017. The allowance for loan losses ("ALLL") represents an estimate of probable and estimable losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALLL is established by analyzing the portfolio at least quarterly and a provision for or reduction of loan losses is recorded so that the ALLL is at an appropriate level at the balance sheet date. The increase in the ALLL was due to an increase in existing impaired loans and an increase in the loan portfolio of held-to-maturity consumer loans. There have been no other significant changes in the credit quality of loans in the loan portfolio since December 31, 2016. |
Inventories, Net |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net | INVENTORIES, NET A summary of Inventories, net is as follows:
Fine and Fabricated Precious Metal Inventory In order to produce certain of its products, HNH purchases, maintains and utilizes precious metal inventory. HNH records certain of its precious metal inventory at the lower of LIFO cost or market, with any adjustments recorded through Cost of goods sold. Remaining precious metal inventory is accounted for primarily at fair value. Certain customers and suppliers of HNH choose to do business on a "pool" basis and furnish precious metal to HNH for return in fabricated form or for purchase from or return to the supplier. When the customer's precious metal is returned in fabricated form, the customer is charged a fabrication charge. The value of this customer metal is not included on the Company's consolidated balance sheets. To the extent HNH is able to utilize customer precious metal in its production processes, such customer metal replaces the need for HNH to purchase its own inventory. As of September 30, 2017, customer metal in HNH's custody consisted of 114,183 ounces of silver, 513 ounces of gold and 1,391 ounces of palladium. During the third quarter of 2017, HNH began obtaining certain precious metals under a $29,500 fee consignment agreement with the Bank of Nova Scotia ("ScotiaBank"). As of September 30, 2017, HNH had approximately $8,200 of silver under consignment with ScotiaBank, which is recorded at fair value in Inventories, net with a corresponding liability for the same amount included in Accrued liabilities on the Company's consolidated balance sheet. Fees charged under the consignment agreement are recorded in Interest expense in the Company's consolidated statements of operations.
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Goodwill and Other Intangibles, Net |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangibles, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET A reconciliation of the change in the carrying value of goodwill by reportable segment is as follows:
A summary of Other intangible assets, net is as follows:
Trademarks with indefinite lives as of both September 30, 2017 and December 31, 2016 were $8,020. Amortization expense related to intangible assets was $7,159 and $9,360 for the three months ended September 30, 2017 and 2016, respectively, and $22,696 and $18,332 for the nine months ended September 30, 2017 and 2016, respectively. |
Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | INVESTMENTS Short-Term Investments Marketable Securities The Company's short-term investments primarily consist of its marketable securities portfolio held by its subsidiary, Steel Excel. These marketable securities as of September 30, 2017 and December 31, 2016 are classified as available-for-sale securities, with changes in fair value recognized in Partners' capital as Other comprehensive income (loss), except for other-than-temporary impairments, which are reflected as a reduction of cost and charged to the consolidated statement of operations. The classification of marketable securities as a current asset is based on the intended holding period and realizability of the investments. The Company's portfolio of marketable securities was as follows:
Proceeds from sales of marketable securities were approximately $902 and $3,100 in the three months ended September 30, 2017 and 2016, respectively, and were approximately $15,593 and $47,200 in the nine months ended September 30, 2017 and 2016, respectively. The Company determines gains and losses from sales of marketable securities based on specific identification of the securities sold. Gross realized gains and losses from sales of marketable securities, all of which are reported as a component of Other (income) expenses, net in the Company's consolidated statements of operations, were as follows:
The fair value of marketable securities with unrealized losses at September 30, 2017, and the duration of time that such losses had been unrealized, were as follows:
The fair value of marketable securities with unrealized losses at December 31, 2016, and the duration of time that such losses had been unrealized, were as follows:
The gross unrealized losses primarily related to losses on corporate securities and corporate obligations, which primarily consist of investments in equity and debt securities of publicly-traded entities. Based on the Company's evaluation of similar securities in the first quarter of 2016, it determined that certain unrealized losses represented other-than-temporary impairments. This determination was based on several factors, including adverse changes in the market conditions and economic environments in which the entities operate. The Company recognized asset impairment charges of $1,470 for the nine months ended September 30, 2016, equal to the cost basis of such securities in excess of their fair values. The Company has determined that there was no indication of other-than-temporary impairments on its investments with unrealized losses as of September 30, 2017. This determination was based on several factors, including the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the entities, and the intent and ability to hold the corporate securities for a period of time sufficient to allow for any anticipated recovery in market value. In April 2017, an entity in which the Company held publicly-traded equity securities and debt securities emerged from previously filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Pursuant to the plan of reorganization for this entity, all equity securities were extinguished, and holders of the debt securities received a combination of cash and new equity securities in the post-bankruptcy entity. In connection with this transaction, the Company recognized a gain of $699 on the exchange of the debt securities based on the fair value of the new equity securities and cash received. The Company also recognized a loss of $79 for the write-off of the remaining carrying value of the predecessor equity securities. The equity securities received as part the exchange are reported with the Company's marketable securities and are classified as available-for-sale securities as of September 30, 2017. Long-Term Investments The following table summarizes the Company's long-term investments as of September 30, 2017 and December 31, 2016. For those investments at fair value, the carrying amount of the investment equals its respective fair value.
Equity Method Investments The Company's investments in associated companies are accounted for under the equity method of accounting. Associated companies are included in the Diversified Industrial, Energy, or Corporate and Other segments. Certain associated companies have a fiscal year end that differs from December 31. Additional information for each of SPLP's investments in associated companies as of September 30, 2017 are as follows: Equity Method, Carried At Fair Value:
Equity Method, Carried At Cost:
The below summary balance sheet and statement of operations amounts include results for associated companies for the periods in which they were accounted for as an associated company, or the nearest practicable corresponding period to the Company's fiscal period.
Other Investments WebBank had $23,908 and $11,558 of held-to-maturity securities at September 30, 2017 and December 31, 2016, respectively. WebBank records these securities at amortized cost, and they are included in Other non-current assets on the Company's consolidated balance sheets. The dollar value of these securities with maturities less than five years is $7,340, after five years through ten years is $15,383 and after ten years is $1,185. Actual maturities may differ from expected or contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The securities are collateralized by unsecured consumer loans. These securities had an estimated fair value of $23,964 and $11,556 at September 30, 2017 and December 31, 2016, respectively. |
Long-term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | LONG-TERM DEBT Debt consists of the following:
SPLP Revolving Credit Facility The Company's amended credit facility with PNC Bank, National Association ("PNC Credit Facility"), which was repaid in full in October 2017, provided for a revolving credit facility with borrowing availability of up to $105,000. Amounts outstanding under the PNC Credit Facility bore interest at SPLP's option at either LIBOR or the Base Rate, as defined, plus an applicable margin under the loan agreement (1.63% and 0.63%, respectively, for LIBOR and Base Rate borrowings as of September 30, 2017) and required a commitment fee to be paid on unused borrowings. The borrowings were collateralized by first priority security interests of certain of the Company's deposit accounts and investments, including investments in majority-owned, consolidated subsidiaries. The average interest rate on the PNC Credit Facility was 3.12% as of September 30, 2017. The PNC Credit Facility also contained customary affirmative and negative covenants, including a minimum cash balance covenant and customary events of default. Any amounts outstanding under the PNC Credit Facility were due and payable in full on October 23, 2017, and accordingly, the total amount outstanding is classified in Current portion of long-term debt on the Company's consolidated balance sheets as of September 30, 2017 and December 31, 2016. The PNC Credit Facility also included provisions for the issuance of letters of credit up to $10,000, with any such issuances reducing total borrowing availability. HNH Debt Senior Credit Facility HNH's amended and restated senior credit agreement ("Senior Credit Facility") provides for an up to $400,000 senior secured revolving credit facility, including a $20,000 sublimit for the issuance of letters of credit and a $20,000 sublimit for the issuance of swing loans. Borrowings under the Senior Credit Facility bear interest at HNH's option, at either LIBOR or the Base Rate, as defined, plus an applicable margin as set forth in the loan agreement (2.25% and 1.25%, respectively, for LIBOR and Base Rate borrowings at September 30, 2017), and the revolving facility provides for a commitment fee to be paid on unused borrowings. The weighted-average interest rate on the revolving facility was 3.54% at September 30, 2017. HNH's availability under the Senior Credit Facility was $68,600 as of September 30, 2017. The Senior Credit Facility will expire, with all amounts outstanding due and payable, on August 29, 2019. The Senior Credit Facility is guaranteed by substantially all existing and thereafter acquired or created domestic wholly-owned subsidiaries and certain foreign wholly-owned subsidiaries of HNH, and obligations under the Senior Credit Facility are collateralized by first priority security interests in and liens upon present and future assets of these subsidiaries. The Senior Credit Facility restricts these subsidiaries' ability to transfer cash or other assets to HNH, the parent company, subject to certain exceptions, including required pension payments to the WHX Corporation Pension Plan and the WHX Pension Plan II. The Senior Credit Facility is subject to certain mandatory prepayment provisions and restrictive and financial covenants, which include a maximum ratio limit on Total Leverage and a minimum ratio limit on Fixed Charge Coverage, as defined, as well as a minimum liquidity level. HNH was in compliance with all debt covenants at September 30, 2017. Master Lease Agreement In 2016, HNH entered into a master lease agreement with TD Equipment Finance, Inc. ("TD Equipment"), which establishes the general terms and conditions for a $10,000 credit facility under which HNH may lease equipment and other property from TD Equipment pursuant to the terms of individual lease schedules. As of September 30, 2017, $6,800 was outstanding under the master lease agreement, which is included in Other non-current liabilities on the Company's consolidated balance sheet. No leases had been entered into as of December 31, 2016 under the agreement. Steel Excel Credit Agreement Steel Excel's energy business has a credit agreement, as amended ("Amended Credit Agreement"), that provides for a borrowing capacity of $105,000, consisting of a $95,000 secured term loan ("Term Loan") and up to $10,000 in revolving loans ("Revolving Loans"), subject to a borrowing base of 85% of the eligible trade receivables. Borrowings under the Amended Credit Agreement are collateralized by substantially all the assets of Steel Energy Ltd. ("Steel Energy") and its wholly-owned subsidiaries, Sun Well Service, Inc. ("Sun Well"), Rogue Pressure Services, Ltd. ("Rogue") and Black Hawk Energy Services Ltd. ("Black Hawk Ltd"), and a pledge of all of the issued and outstanding shares of capital stock of Sun Well, Rogue and Black Hawk Ltd. Borrowings under the Amended Credit Agreement are fully guaranteed by Sun Well, Rogue and Black Hawk Ltd. The carrying value as of September 30, 2017 of the assets pledged as collateral by Steel Energy and its subsidiaries under the Amended Credit Agreement was approximately $126,000. The Amended Credit Agreement has a term that runs through July 2018, with the Term Loan amortizing in quarterly installments of $3,300 and a balloon payment due on the maturity date. As a result of Term Loan prepayments made by Steel Excel in prior periods, no quarterly installment payments are due until 2018. Steel Excel only has an amount outstanding under the Term Loan at September 30, 2017. Borrowings under the Amended Credit Agreement bear interest at annual rates of either (i) the Base Rate, as defined, plus an applicable margin of 1.50% to 2.25% or (ii) LIBOR plus an applicable margin of 2.50% to 3.25%. The applicable margin for both Base Rate and LIBOR is determined based on the leverage ratio calculated in accordance with the Amended Credit Agreement. LIBOR-based borrowings are available for interest periods of one, three or six months. In addition, Steel Excel is required to pay commitment fees of between 0.375% and 0.50% per annum on the daily unused amount of the Revolving Loans. The interest rate on the borrowings under the Amended Credit Agreement was 3.99% at September 30, 2017. API Long-Term Debt Facilities Revolving Facilities API, in the UK, has a multi-currency revolving agreement of £13,500 (approximately $18,100) that expires on June 30, 2018 ("UK Facility"). At September 30, 2017, approximately $9,261 was outstanding under the UK Facility. Borrowings under the UK Facility bear interest at LIBOR plus a margin of between 1.50% to 2.40%, and the interest rate was approximately 1.66% at September 30, 2017. These borrowings are secured by certain UK assets, which totaled approximately $47,900 at September 30, 2017, and include certain debt covenants, including leverage and interest coverage. API was in compliance with all covenants at September 30, 2017. API also has a revolving facility in the U.S. that expires in June 2018 ("U.S. Facility"), with availability of up to approximately $5,500 as of September 30, 2017. At September 30, 2017, $2,000 was outstanding under the U.S. Facility. Borrowings under the U.S Facility bear interest at LIBOR plus 3.00%, and the interest rate was approximately 4.23% at September 30, 2017. The U.S. facility is secured by certain inventories and receivables, which totaled approximately $32,600 at September 30, 2017. API received a temporary waiver after failing to meet one of the debt covenants under this facility as of December 31, 2016. The facility was amended in February 2017 to modify and add certain covenants and provisions that will be in place until June 30, 2018. Term Loans In the third quarter of 2016, API entered into a term loan in the U.S. totaling approximately $9,000 to partially fund its acquisition of Hazen (see Note 2 - "Acquisitions"). This term loan bears interest at LIBOR plus 3.00% and had an interest rate of 4.23% at September 30, 2017. In addition, API has certain term loans for equipment for approximately $1,200 and $700 at September 30, 2017. These loans had interest rates of 4.23% and 4.26% at September 30, 2017, respectively, and are secured over the related equipment. |
Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | FINANCIAL INSTRUMENTS At September 30, 2017 and December 31, 2016, financial instrument obligations and related restricted cash consist of $14,437 and $12,640, respectively, of short sales of corporate securities. Activity is summarized below for financial instrument liabilities and related restricted cash:
Short Sales of Corporate Securities From time to time, Steel Excel enters into short sale transactions on certain corporate securities in which Steel Excel receives proceeds from the sale of such securities and incurs obligations to deliver such securities at a later date. Upon initially entering into such short sale transactions, Steel Excel recognizes a liability equal to the fair value of the obligation, with a comparable amount of cash and cash equivalents reclassified as restricted cash. Subsequent changes in the fair value of such obligations, determined based on the closing market price of the securities, are recognized currently as gains or losses, with a comparable adjustment made between unrestricted and restricted cash. Foreign Currency Forward Contracts API enters into foreign currency forward contracts to hedge its receivables and payables denominated in other currencies. In addition, API enters into foreign currency forward contracts to hedge the value of its future sales denominated in Euros and the value of its future purchases denominated in USD. These hedges have settlement dates ranging through June 2018 at September 30, 2017. The forward contracts that are used to hedge the risk of foreign exchange movement on its receivables and payables are accounted for as fair value hedges. At September 30, 2017, there were contracts in place to buy Sterling and sell Euros in the amount of €8,250. The fair values of these derivatives are recognized as derivative assets and liabilities on the Company's consolidated balance sheets. The net change in fair value of the derivative assets and liabilities are recognized in the Company's consolidated statements of operations. The forward contracts that are used to hedge the value of API's future sales and purchases are accounted for as cash flow hedges. At September 30, 2017, there were contracts in place to hedge the value of future sales denominated in Euros in the amount of €9,660 and the value of future purchases denominated in USD in the amount of $375. These hedges are fully effective, and, accordingly the changes in fair value are recorded in accumulated other comprehensive income ("AOCI"), and, at maturity, any gain or loss on the forward contract is reclassified from AOCI into the Company's consolidated statements of operations. WebBank - Derivative Financial Instruments WebBank's derivative financial instruments represent on-going economic interests in loans made after they are sold. These derivatives are carried at fair value on a gross basis in Other non-current assets on the Company's consolidated balance sheets at September 30, 2017 and are classified within Level 3 in the fair value hierarchy (see Note 14 - "Fair Value Measurements"). At September 30, 2017, derivatives outstanding mature within 3 to 5 years. Gains and losses resulting from changes in fair value of derivative instruments are accounted for in the Company's consolidated statements of operations in Financial services revenue. Fair value represents the estimated amounts that WebBank would receive or pay to terminate the contracts at the reporting date based on a discounted cash flow model for the same or similar instruments. WebBank does not enter into derivative contracts for speculative or trading purposes. Call and Put Options During the nine months ended September 30, 2017, the Company sold call options for proceeds of approximately $230 and purchased put options totaling $783 related to an exchange traded index fund. The options are traded in active markets, and accordingly, the Company records the fair value of the options through the use of quoted prices and records any changes in fair value in the consolidated statements of operations in Other (income) expenses, net. These derivative financial instruments are classified within Level 1 in the fair value hierarchy. Precious Metal and Commodity Inventories HNH's precious metal and commodity inventories are subject to market price fluctuations. HNH enters into commodity futures and forward contracts to mitigate the impact of price fluctuations on its precious and certain non-precious metal inventories that are not subject to fixed price contracts. HNH's hedging strategy is designed to protect it against normal volatility; therefore, abnormal price changes in these commodities or markets could negatively impact HNH's earnings. As of September 30, 2017, HNH had the following outstanding forward contracts with settlement dates through October 2017. There were no futures contracts outstanding at September 30, 2017.
Fair Value Hedges. Of the total forward contracts outstanding, 28,710 ounces of silver and substantially all the copper contracts are designated and accounted for as fair value hedges. The fair values of these derivatives are recognized as derivative assets and liabilities on the Company's consolidated balance sheets. The net change in fair value of the derivative assets and liabilities, and the change in the fair value of the underlying hedged inventory, are recognized in the Company's consolidated statements of operations, and such amounts principally offset each other due to the effectiveness of the hedges. The fair value hedges are associated primarily with HNH's precious metal inventory carried at fair value. Economic Hedges. The remaining outstanding forward contracts for silver, and all the contracts for gold and tin, are accounted for as economic hedges. As these derivatives are not designated as accounting hedges, they are accounted for as derivatives with no hedge designation. The derivatives are marked to market, and both realized and unrealized gains and losses are recorded in current period earnings in the Company's consolidated statements of operations. The economic hedges are associated primarily with HNH's precious metal inventory valued using the LIFO method. The forward contracts were made with a counterparty rated A+ by Standard & Poors. Accordingly, HNH has determined that there is minimal credit risk of default. HNH estimates the fair value of its derivative contracts through the use of market quotes or with the assistance of brokers when market information is not available. HNH maintains collateral on account with the third-party broker. Such collateral consists of both cash that varies in amount depending on the value of open contracts, as well as ounces of precious metal held on account by the broker. The fair value and carrying amount of derivative instruments on the Company's consolidated balance sheets and the effect of derivative instruments in the Company's consolidated statements of operations are shown in the following tables:
Financial Instruments with Off-Balance Sheet Risk WebBank is a party to financial instruments with off-balance sheet risk. In the normal course of business, these financial instruments include commitments to extend credit in the form of loans as part of WebBank's lending arrangements. Those instruments involve to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement WebBank has in particular classes of financial instruments. At September 30, 2017 and December 31, 2016, WebBank's undisbursed loan commitments under these instruments totaled $87,634 and $184,784, respectively. Commitments to extend credit are agreements to lend to a borrower who meets the lending criteria through one of WebBank's lending agreements, provided there is no violation of any condition established in the contract with the counterparty to the lending arrangement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since certain of the commitments are expected to expire without the credit being extended, the total commitment amounts do not necessarily represent future cash requirements. WebBank evaluates each prospective borrower's credit worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by WebBank upon extension of credit is based on management's credit evaluation of the borrower and WebBank's counterparty. WebBank's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. WebBank uses the same credit policy in making commitments and conditional obligations as it does for on-balance sheet instruments. WebBank estimates an allowance for potential losses on off-balance sheet contingent credit exposures related to the guaranteed amount of its Small Business Administration ("SBA") and United States Department of Agriculture ("USDA") loans and whether or not the SBA/USDA honors the guarantee. WebBank determines the allowance for these contingent credit exposures based on historical experience and portfolio analysis. The allowance is included with Other non-current liabilities on the Company's consolidated balance sheets, with any related increases or decreases in the reserve included in the Company's consolidated statements of operations. The allowance was $188 at both September 30, 2017 and December 31, 2016. |
Pension Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefit Plans | PENSION BENEFIT PLANS The following table presents the components of pension expense for HNH's and API's pension plans:
Required future pension contributions are estimated based upon assumptions such as discount rates on future obligations, assumed rates of return on plan assets and legislative changes. Actual future pension costs and required funding obligations will be affected by changes in the factors and assumptions described in the previous sentence, as well as other changes such as any plan termination or other acceleration events. Required minimum pension contributions are as follows:
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Capital and Accumulated Other Comprehensive Loss |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital and Accumulated Other Comprehensive Loss | CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) As of September 30, 2017, the Company had 26,016,926 Class A units (regular common units) outstanding. Common Unit Repurchase Program On December 7, 2016, the Board of Directors of SPH GP approved the repurchase of up to an aggregate of 2,000,000 of the Company's common units ("Repurchase Program"). The Repurchase Program supersedes and cancels, to the extent any amounts remain available, all previously approved repurchase programs. Any purchases made under the Repurchase Program will be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market, in compliance with applicable laws and regulations. In connection with the Repurchase Program, the Company may enter into a stock purchase plan, and the Repurchase Program has no termination date. During the first nine months of 2017, the Company purchased 159,385 units for an aggregate price of approximately $2,985. Common Unit Dividend On January 13, 2017, the Company paid dividends of approximately $3,923 to common unitholders of record as of January 3, 2017, excluding a consolidated affiliate. This amount was included in Accrued liabilities on the Company's consolidated balance sheet as of December 31, 2016. This special one-time cash dividend of $0.15 per common unit was declared on December 22, 2016. Any future determination to declare dividends on its common units will remain at the discretion of the Company's Board of Directors and will be dependent upon a number of factors, including the Company's results of operations, cash flows, financial position and capital requirements, among others. Steel Excel Transaction On December 23, 2016, the Company entered into an Amended Agreement and Plan of Merger with a subsidiary of the Company and Steel Excel to make a tender offer to purchase any and all of the outstanding shares of common stock of Steel Excel not already owned by the Company or any of its affiliates. In exchange for each share of Steel Excel common stock, the Company offered 0.712 6.0% Series A preferred units, no par value ("SPLP Preferred Units"). The offer commenced on January 9, 2017 and expired on February 6, 2017. As a result of the completion of the offer, the Company issued approximately 2,500,000 SPLP Preferred Units with a fair value and liquidation value of $25.00 per SPLP Preferred Unit, or approximately $63,500, to Steel Excel shareholders and paid approximately $2,100 in cash for any remaining unvested restricted shares of Steel Excel. As a result, the Company now owns 100% of Steel Excel. The SPLP Preferred Units entitle the holders to a cumulative quarterly cash or in-kind (or a combination thereof) distribution, which is recorded as a component of Interest expense in the Company's consolidated statement of operations. The Company paid cash distributions of approximately $2,300 to preferred unitholders during the first nine months of 2017. The SPLP Preferred Units have a term of nine years and are redeemable at any time at the Company's option at the liquidation value, plus any accrued and unpaid distributions (payable in cash or SPLP common units, or a combination of both, at the Company's discretion). If redeemed in common units, the number of common units to be issued will be equal to the liquidation value per unit divided by the volume weighted-average price of the common units for 60 days prior to the redemption. In addition, the holders can require the Company to repurchase up to 525,000 of the SPLP Preferred Units, in cash on a pro rata basis, on the third anniversary of the original issuance date, reduced by any preferred units called for redemption by the Company, in cash on a pro rata basis, prior to that time. The SPLP Preferred Units have no voting rights, except that holders of the preferred units have certain voting rights in limited circumstances relating to the election of directors following the failure to pay six quarterly distributions. The SPLP Preferred Units are recorded as a non-current liability, including accrued interest expense, on the Company's consolidated balance sheet as of September 30, 2017 because they have an unconditional obligation to be redeemed for cash or by issuing a variable number of SPLP common units for a monetary value that is fixed and known at inception. In accordance with the accounting standard on consolidation, changes in a parent's ownership interest where the parent retains a controlling financial interest in its subsidiary are accounted for as equity transactions. The carrying amount of the noncontrolling interest in Steel Excel has been eliminated to reflect the change in SPLP's ownership interest in Steel Excel, and the difference between the fair value of the consideration paid to the noncontrolling interest holders of Steel Excel and the amount by which the noncontrolling interest was adjusted has been recognized in Partners' capital. Accumulated Other Comprehensive Income (Loss) Changes, net of tax, in Accumulated other comprehensive income (loss) are as follows:
Incentive Unit Expense Effective January 1, 2012, SPLP issued to the Manager partnership profits interests in the form of incentive units, a portion of which will be classified as Class C common units of SPLP upon the attainment of certain specified performance goals by SPLP, which are determined as of the last day of each fiscal year. If the performance goals are not met for a fiscal year, no portion of the incentive units will be classified as Class C common units for that year. The number of outstanding incentive units is equal to 100% of the common units outstanding, including common units held by non-wholly-owned subsidiaries. The performance goals and expense related to the classification of a portion of the incentive units as Class C units is measured on an annual basis, but is accrued on a quarterly basis. Accordingly, the amount accrued is adjusted to reflect the fair value of the Class C common units on each interim calculation date. The expense is recorded in SG&A in the Company's consolidated statements of operations. The Company recorded a reduction in SG&A of approximately $1,000 for the three months ended September 30, 2017 and recorded expense of $3,930 in SG&A for the nine months ended September 30, 2017. There was no incentive unit expense recorded in the three and nine months ended September 30, 2016. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company recorded tax provisions of $9,913 and $8,334 for the three months ended September 30, 2017 and 2016, respectively, and $27,175 and $18,357 for the nine months ended September 30, 2017 and 2016, respectively. The Company's tax provision represents the income tax expense or benefit of its consolidated subsidiaries. The Company's consolidated subsidiaries have recorded deferred tax valuation allowances to the extent that they believe it is more likely than not that the benefits of the deferred tax assets will not be realized in future periods. During the fourth quarter of 2015, WFHC and CoSine entered into a series of transactions whereby CoSine was merged with and into WFH LLC, a newly formed wholly-owned subsidiary of WFHC, which is disregarded for income tax purposes. Also, in the fourth quarter of 2015, the Company recorded a tax benefit in continuing operations of approximately $111,881 associated with the reversal of deferred tax valuation allowances attributable to federal net operating loss carryforwards of approximately $329,600 associated with WFHC, WebBank and the newly merged CoSine business ("WFHC U.S. Consolidated Group") given the resulting change in its judgment about the realizability of the associated deferred tax assets. During the first quarter of 2016, the Company revised its calculation of the expected benefit to be derived from the realizability of federal deferred tax assets of the WFHC U.S. Consolidated Group and recorded an additional tax benefit of approximately $4,182. |
Net (Loss) Income Per Common Unit |
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Net (Loss) Income Per Common Unit | NET INCOME PER COMMON UNIT The following data was used in computing net income per common unit shown in the Company's consolidated statements of operations:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial assets and liabilities measured at fair value on a recurring basis in the Company's consolidated financial statements as of September 30, 2017 and December 31, 2016 are summarized by type of inputs applicable to the fair value measurements as follows:
There were no transfers of securities among the various measurement input levels during the nine months ended September 30, 2017. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the "exit price") in an orderly transaction between market participants at the measurement date. Fair value measurements are broken down into three levels based on the reliability of inputs as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The valuation under this approach does not entail a significant degree of judgment ("Level 1"). Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates and yield curves observable at commonly quoted intervals or current market) and contractual prices for the underlying financial instrument, as well as other relevant economic measures ("Level 2"). Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date ("Level 3"). The fair value of the Company's financial instruments, such as cash and cash equivalents, trade and other receivables and accounts payable, approximate carrying value due to the short-term maturities of these assets and liabilities. Carrying cost approximates fair value for long-term debt which has variable interest rates. The precious metal and commodity inventories associated with HNH's fair value hedges (see Note 9 - "Financial Instruments") are reported at fair value. Fair values of these inventories are based on quoted market prices on commodity exchanges and are considered Level 1 measurements. The derivative instruments that HNH purchases in connection with its precious metal and commodity inventories, specifically commodity futures and forward contracts, are also valued at fair value. The futures contracts are Level 1 measurements since they are traded on a commodity exchange. The forward contracts are entered into with a counterparty and are considered Level 2 measurements. Following is a summary of changes in financial assets measured using Level 3 inputs:
Long-Term Investments - Valuation Techniques The Company estimates the value of one of its investments in an associated company primarily using a discounted cash flow method adjusted for additional information related to debt covenants, solvency issues and other related matters. The MLNK warrants are valued using the Black-Scholes option pricing model. Marketable Securities and Other - Valuation Techniques The Company uses the net asset value included in quarterly statements it receives in arrears from a venture capital fund to determine the fair value of such fund and determines the fair value of certain corporate securities and corporate obligations by incorporating and reviewing prices provided by third-party pricing services based on the specific features of the underlying securities. The fair value of the derivatives held by WebBank (see Note 9 - "Financial Instruments") represent the estimated amounts that WebBank would receive or pay to terminate the contracts at the reporting date and is based on discounted cash flows analyses that consider credit, performance and prepayment. Unobservable inputs used in the discounted cash flow analyses are: a constant prepayment rate of 7.28% to 28.99%, a constant default rate of 1.74% to 17.86% and a discount rate of 5.25% to 18.32%. |
Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Environmental and Litigation Matters As discussed in more detail below, certain of the Company's subsidiaries have been designated as potentially responsible parties ("PRPs") by federal and state agencies with respect to certain sites with which they may have had direct or indirect involvement and as defendants in certain legal proceedings. Most such legal proceedings and environmental investigations involve unspecified amounts of potential damage claims or awards, are in an initial procedural phase, involve significant uncertainty as to the outcome, or involve significant factual issues that need to be resolved, such that it is not possible for the Company to estimate a range of possible loss. For matters that have progressed sufficiently through the investigative process such that the Company is able to reasonably estimate a range of possible loss, an estimated range of possible loss will be provided, in excess of the accrued liability (if any) for such matters. Any estimated range is or will be based on currently available information and involves elements of judgment and significant uncertainties. Any estimated range of possible loss may not represent the Company's maximum possible loss exposure. The circumstances of such legal proceedings and environmental investigations will change from time to time, and actual results may vary significantly from the current estimate. For current proceedings not specifically reported below, management does not anticipate that the liabilities, if any, arising from such proceedings would have a material effect on the financial position, liquidity or results of operations of the Company. The environmental claims are in various stages of administrative or judicial proceedings and include demands for recovery of past governmental costs and for future investigations and remedial actions. In many cases, the dollar amounts of the claims have not been specified and, with respect to a number of the PRP claims, have been asserted against a number of other entities for the same cost recovery or other relief as was asserted against certain of the Company's subsidiaries. As of September 30, 2017, on a consolidated basis, the Company has accrued liabilities of approximately $11,685, which represent the current estimate of the probable cleanup liabilities, including remediation and legal costs and litigation reserves. Expenses relating to these costs, and any recoveries, are included in SG&A in the Company's consolidated statements of operations. In addition, the Company has insurance coverage available for several of these matters and believes that excess insurance coverage may be available as well. Environmental Matters Certain HNH subsidiaries have existing and contingent liabilities relating to environmental matters, including costs of remediation, capital expenditures, and potential fines and penalties relating to possible violations of national and state environmental laws. Those subsidiaries have remediation expenses on an ongoing basis, although such costs are continually being readjusted based upon the emergence of new techniques, additional data and alternative methods. HNH recorded current liabilities of approximately $9,926 related to estimated environmental remediation costs as of September 30, 2017. HNH also has insurance coverage available for several of these matters and believes that excess insurance coverage may be available as well. No insurance reimbursements were recorded during the nine months ended September 30, 2017 or 2016. Included among these liabilities, certain HNH subsidiaries have been identified as PRPs under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA") or similar state statutes at sites and are parties to administrative consent orders in connection with certain properties. Those subsidiaries may be subject to joint and several liabilities imposed by CERCLA on PRPs. Due to the technical and regulatory complexity of remedial activities and the difficulties attendant in identifying PRPs and allocating or determining liability among them, except to the extent specifically identified below, the subsidiaries are generally unable to reasonably estimate the ultimate cost of compliance with such laws. Similarly, BNS LLC, a wholly-owned subsidiary of the BNS Liquidating Trust, has been named as a PRP at one previously disclosed site. Based upon information currently available, BNS Liquidating Trust does not expect that its environmental costs or that the resolution of this environmental matter will have a material adverse effect on the financial position, results of operations or cash flows of the Company, but there can be no such assurances to this effect. Based upon information currently available, the HNH subsidiaries do not expect that their respective environmental costs, including the incurrence of additional fines and penalties, if any, will have a material adverse effect on them or that the resolution of these environmental matters will have a material adverse effect on the financial position, results of operations or cash flows of such subsidiaries or HNH, but there can be no such assurances. HNH anticipates that the subsidiaries will pay any such amounts out of their respective working capital, although there is no assurance that they will have sufficient funds to pay them. In the event that the HNH subsidiaries are unable to fund their liabilities, claims could be made against their respective parent companies, including HNH, for payment of such liabilities. The sites where certain HNH subsidiaries have environmental liabilities include the following: HNH has been working with the Connecticut Department of Energy and Environmental Protection ("CTDEEP") with respect to its obligations under a 1989 consent order that applies to a property in Connecticut that HNH sold in 2003 ("Sold Parcel") and an adjacent parcel ("Adjacent Parcel") that together comprise the site of a former HNH manufacturing facility. The remaining remediation, monitoring and regulatory administrative costs for the Sold Parcel are expected to approximate $100. With respect to the Adjacent Parcel, an ecological risk assessment has been completed and the results, along with proposed clean up goals, were submitted in the second quarter of 2016 to the CTDEEP for their review and approval. The next phase will be a physical investigation of the upland portion of the parcel. A work plan was submitted in the third quarter of 2016 to the CTDEEP for review and approval. The CTDEEP provided comments on February 28, 2017, and HNH is negotiating a final work plan, which is expected to start in the fourth quarter of 2017 or early 2018, and is estimated to cost approximately $200. Investigation of the wetlands portion is not expected to start until mid-year 2018, pending regulatory approvals and agreement on wetlands remediation goals. Based on the current stage of the investigation at this site at this time, HNH estimates that it is reasonably possible that it may incur aggregate losses over a period of several years, above its current accrued liability for this site, in a range of $2,000 to $6,000. Due to the uncertainties, there can be no assurance that the resolution of this matter will not be material to the financial position, results of operations or cash flows of HNH. In 1986, Handy & Harman Electronic Materials Corporation ("HHEM"), a subsidiary of HNH, entered into an administrative consent order ("ACO") with the New Jersey Department of Environmental Protection ("NJDEP") with regard to certain property that it purchased in 1984 in New Jersey. The ACO involves investigation and remediation activities to be performed with regard to soil and groundwater contamination. HHEM is actively remediating the property and continuing to investigate effective methods for achieving compliance with the ACO. HHEM anticipates entering into discussions with the NJDEP to address that agency's potential natural resource damage claims, the ultimate scope and cost of which cannot be estimated at this time. Pursuant to a settlement agreement with the former owner/operator of the site, the responsibility for site investigation and remediation costs, as well as any other costs, as defined in the settlement agreement, related to or arising from environmental contamination on the property (collectively, "Costs") are contractually allocated 75% to the former owner/operator and 25% jointly to HHEM and HNH, all after having the first $1,000 paid by the former owner/operator. As of September 30, 2017, total investigation and remediation costs of approximately $6,100 and $1,900 have been expended by the former owner/operator and HHEM, respectively, in accordance with the settlement agreement. Additionally, HHEM is currently being reimbursed indirectly through insurance coverage for a portion of the Costs for which HHEM is responsible, although that policy is about to be exhausted. HHEM believes that there is additional excess insurance coverage, which it intends to pursue as necessary. HHEM anticipates that there will be additional remediation expenses to be incurred once a final remediation plan is agreed upon. There is no assurance that the former owner/operator or guarantors will continue to timely reimburse HHEM for expenditures and/or will be financially capable of fulfilling their obligations under the settlement agreement and the guaranties. Based on the current stage of the investigation at this site at this time, HNH estimates that it is reasonably possible that it may incur aggregate losses over a period of years, above its current accrued liability for this site, in a range of $100 to $4,000, of which it expects to pay a 25% share. Due to the uncertainties, there can be no assurance that the resolution of this matter will not be material to the financial position, results of operations or cash flows of HHEM or HNH. SLI may incur environmental costs in the future as a result of past activities of its former subsidiary, SurfTech, at sites located in Pennsauken, New Jersey ("Pennsauken Site") and in Camden, New Jersey ("Camden Site"). At the Pennsauken Site, SLI reached an agreement with both the U.S. Department of Justice and the Environmental Protection Agency ("EPA") related to its liability and entered into a Consent Decree which governs the agreement. SLI agreed to perform remediation, which has been completed, and to pay a fixed sum for the EPA's past costs. The fixed sum was paid in installments, and the final payment of $2,200 was made in the second quarter of 2017. In December 2012, the NJDEP served SLI with a settlement demand of $1,800 for alleged past and future costs, as well as alleged natural resource damages related to the Pennsauken Site. Although SLI believes that it has meritorious defenses to any claim for costs and natural resource damages, to avoid the time and expense of litigating the matter, on February 13, 2013, SLI offered to pay the State of New Jersey $300 to fully resolve the claim. On June 29, 2015, the State of New Jersey rejected SLI's counteroffer. On September 18, 2017, the Company received a letter from the Office of the Attorney General for the State of New Jersey ("New Jersey AG"), wherein the New Jersey AG reiterated the NJDEP's original settlement demand of $1,800 for SLI's alleged past costs and natural resource damages related to the Pennsauken Site. Although the final scope and cost of this claim cannot be estimated at this time, we estimate that it is reasonably possible that we may incur an aggregate loss, above our current accrued liability for this site, in a range of $300 to $1,800. With respect to the Camden Site, SLI has reported soil contamination and a groundwater contamination plume emanating from the site. A Remedial Action Workplan ("RAWP") for soils was submitted to the NJDEP in the second quarter of 2017 by the Licensed Site Remediation Professional ("LSRP") for the site. The RAWP for treatment of unsaturated soils is scheduled to be initiated during the fourth quarter of 2017 or early 2018, with post-remediation rebound testing and slab removal to be conducted by mid-year 2018. SLI's environmental consultants also implemented an interim remedial action pilot study to treat on-site contaminated groundwater, which consisted of injecting food-grade product into the groundwater at the down gradient property boundary to create a "bio-barrier." Post-injection groundwater monitoring to assess the bio-barrier's effectiveness was completed. Consistent decreases in target contaminants concentrations in groundwater were observed. In December 2014, a report was submitted to the NJDEP stating sufficient information was obtained from the pilot study to complete the full-scale groundwater remedy design. A full-scale groundwater bioremediation will be implemented during the fourth quarter of 2017 following the soil remediation mentioned above. A reserve of approximately $2,800 has been established for anticipated costs at this site, but there can be no assurance that there will not be potential additional costs associated with the site, which cannot be reasonably estimated at this time. Accordingly, there can be no assurance that the resolution of this matter will not be material to the financial position, results of operations or cash flows of SLI or HNH. SLI is currently participating in environmental assessment and cleanup at a commercial facility located in Wayne, New Jersey. Contaminated soil and groundwater has undergone remediation with the NJDEP and LSRP oversight, but contaminants of concern ("COCs") in groundwater and surface water, which extend off-site, remain above applicable NJDEP remediation standards. A soil remedial action plan has been developed to remove the new soil source contamination that continues to impact groundwater. SLI's LSRP completed a supplemental groundwater remedial action, pursuant to a RAWP filed with, and permit approved by, the NJDEP, and a report was filed with the NJDEP in March 2015. SLI's consultants have developed cost estimates for supplemental remedial injections, soil excavation, and additional tests and remedial activities. The LSRP has prepared a Remedial Investigation Report, which was sent to the NJDEP in May 2016. Off-site access to the adjacent property has been negotiated and monitoring wells have been installed. Results of the initial samples detected COCs above the NJDEP standards. A reserve of approximately $1,300 has been established for anticipated costs, but there can be no assurance that there will not be potential additional costs associated with the site, which cannot be reasonably estimated at this time. Accordingly, there can be no assurance that the resolution of this matter will not be material to the financial position, results of operations or cash flows of SLI or HNH. Litigation Matters BNS Litigation Matters A subsidiary of BNS Liquidating Trust ("BNS Sub") has been named as a defendant in approximately 1,371 alleged asbestos-related toxic-tort claims as of September 30, 2017. The claims were filed over a period beginning in 1994 through September 30, 2017. In many cases these claims involved more than 100 defendants. Of the claims filed, approximately 1,316 were dismissed, settled or granted summary judgment and closed as of September 30, 2017. Of the claims settled, the average settlement was less than $3. There remained 55 pending asbestos claims as of September 30, 2017. There can be no assurance that the number of future claims and the related costs of defense, settlements or judgments will be consistent with the experience to date of existing claims. BNS Sub has insurance policies covering asbestos-related claims for years beginning 1974 through 1988 with estimated aggregate coverage limits of $183,000, with $1,543 at both September 30, 2017 and December 31, 2016 in estimated remaining self-insurance retention (deductible). There is secondary evidence of coverage from 1970 to 1973, although there is no assurance that the insurers will recognize that the coverage was in place. Policies issued for BNS Sub beginning in 1989 contained exclusions related to asbestos. Under certain circumstances, some of the settled claims may be reopened. Also, there may be a significant delay in receipt of notification by BNS Sub of the entry of a dismissal or settlement of a claim or the filing of a new claim. BNS Sub believes it has significant defenses to any liability for toxic-tort claims on the merits. None of these toxic-tort claims has gone to trial and, therefore, there can be no assurance that these defenses will prevail. BNS Sub annually receives retroactive billings or credits from its insurance carriers for any increase or decrease in claims accruals as claims are filed, settled or dismissed, or as estimates of the ultimate settlement and defense costs for the then-existing claims are revised. As of both September 30, 2017 and December 31, 2016, BNS Sub has accrued $1,349 relating to the open and active claims against BNS Sub. This accrual represents the Company's best estimate of the likely costs to defend against or settle these claims by BNS Sub beyond the amounts accrued by the insurance carriers and previously funded, through the retroactive billings by BNS Sub. There can be no assurance that the number of future claims and the related costs of defense, settlements or judgments will be consistent with the experience to date of existing claims and that BNS Sub will not need to increase significantly its estimated liability for the costs to settle these claims to an amount that could have a material effect on the consolidated financial statements. Other Litigation In the ordinary course of our business, we are subject to other periodic lawsuits, investigations, claims and proceedings, including, but not limited to, contractual disputes, employment, environmental, health and safety matters, as well as claims associated with our historical acquisitions and divestitures. There is insurance coverage available for many of the foregoing actions. Although we cannot predict with certainty the ultimate resolution of lawsuits, investigations, claims and proceedings asserted against us, we do not believe any currently pending legal proceeding to which we are a party will have a material adverse effect on our business, prospects, financial condition, cash flows, results of operations or liquidity. |
Related Party Transactions |
9 Months Ended |
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Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Management Agreement with SP General Services LLC The Manager receives a fee, pursuant to the terms of the Management Agreement, at an annual rate of 1.5% of total SPLP Partners' capital ("Management Fee"), payable on the first day of each quarter and subject to quarterly adjustment. In addition, SPLP issued to the Manager partnership profits interests in the form of incentive units, which will be classified as Class C common units of SPLP upon the attainment of certain specified performance goals by SPLP, which are determined as of the last day of each fiscal year (see Note 11 - "Capital and Accumulated Other Comprehensive Income (Loss)" for additional information on the incentive units). The Management Agreement is automatically renewed each December 31 for successive one-year terms unless otherwise determined at least 60 days prior to each renewal date by a majority of the Company's independent directors. The Management Fee was $2,234 and $2,172 for the three months ended September 30, 2017 and 2016, respectively, and $6,500 and $6,387 for the nine months ended September 30, 2017 and 2016, respectively. The Management Fee is included in SG&A in the Company's consolidated statements of operations. Unpaid amounts for management fees included in Payables to related parties on the Company's consolidated balance sheets were $234 and $0 at September 30, 2017 and December 31, 2016, respectively. SPLP will bear (or reimburse the Manager with respect to) all its reasonable costs and expenses of the managed entities, the Manager, SPH GP or their affiliates, including but not limited to: legal, tax, accounting, auditing, consulting, administrative, compliance, investor relations costs related to being a public entity rendered for SPLP or SPH GP, as well as expenses incurred by the Manager and SPH GP which are reasonably necessary for the performance by the Manager of its duties and functions under the Management Agreement and certain other expenses incurred by managers, officers, employees and agents of the Manager or its affiliates on behalf of SPLP. Reimbursable expenses incurred by the Manager in connection with its provision of services under the Management Agreement were approximately $2,055 and $859 for the three months ended September 30, 2017 and 2016, respectively, and $3,915 and $3,095 for the nine months ended September 30, 2017 and 2016, respectively. Unpaid amounts for reimbursable expenses were approximately $1,865 and $1,031 at September 30, 2017 and December 31, 2016, respectively, and are included in Payables to related parties on the Company's consolidated balance sheets. Corporate Services Steel Services, through Management Services Agreements with its subsidiaries and portfolio companies, provides services, which include assignment of C-Level management personnel, as well as a variety of services, including legal, tax, accounting, treasury, consulting, auditing, administrative, compliance, environmental health and safety, human resources, marketing, investor relations, operating group management and other similar services. In addition to its servicing agreements with SPLP and its consolidated subsidiaries, Steel Services has management services agreements with other companies considered to be related parties, including NOVT Corporation, Ore Holdings, Inc., J. Howard Inc., Steel Partners, Ltd., iGo, MLNK and Aerojet Rocketdyne Holdings, Inc. In total, Steel Services will charge approximately $2,720 annually to these companies. All amounts billed under these service agreements are classified as a reduction of SG&A. Mutual Securities, Inc. Pursuant to the Management Agreement, the Manager is responsible for selecting executing brokers. Securities transactions for SPLP are allocated to brokers on the basis of reliability and best price and execution. The Manager has selected Mutual Securities, Inc. as an introducing broker and may direct a substantial portion of the managed entities' trades to such firm, among others. An officer of the Manager and SPH GP is affiliated with Mutual Securities, Inc. The commissions paid by SPLP to Mutual Securities, Inc. were not significant in any period. In addition, Mutual Securities, Inc. is the custodian for a portion of the Company's holdings in MLNK common stock. Other At September 30, 2017 and December 31, 2016, several related parties and consolidated subsidiaries had deposits totaling $2,843 and $2,786, respectively, at WebBank. Approximately $765 and $718 of these deposits, including interest which was not significant, has been eliminated in consolidation as of September 30, 2017 and December 31, 2016, respectively. On June 26, 2017, HNH entered into a Merger Agreement with SPLP and Merger Sub, pursuant to which, among other things, SPLP and Merger Sub made a tender offer to purchase any and all of the outstanding shares of common stock of HNH not already owned by SPLP or any entity that is an affiliate of SPLP. The Offer was successfully completed on October 12, 2017, and the Company now owns 100% of HNH. For additional information on the results of the Offer, see Note 21 - "Subsequent Events." Also, on February 6, 2017, the Company completed a tender offer to purchase any and all of the outstanding shares of common stock of Steel Excel not already owned by the Company or any of its affiliates. For additional information, see Note 11 - "Capital and Accumulated Other Comprehensive Income (Loss)." |
Segment Information |
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Segment Information | SEGMENT INFORMATION SPLP operates through the following segments: Diversified Industrial, Energy, Financial Services, and Corporate and Other, which are managed separately and offer different products and services. For a more complete description of the Company's segments, see "Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Overview." Corporate assets and overhead expenses are not allocated to the segments. Steel Services charged the Diversified Industrial, Energy and Financial Services segments approximately $3,000, $2,000 and $1,175 for the three months ended September 30, 2017 and 2016. Steel Services charged the Diversified Industrial, Energy and Financial Services segments approximately $9,000, $6,000 and $3,525 for the nine months ended September 30, 2017 and 2016. These amounts are eliminated in consolidation. Segment information is presented below:
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Regulatory Matters |
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Regulatory Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters | REGULATORY MATTERS WebBank WebBank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain actions by regulators that, if undertaken, could have a direct material effect on WebBank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, WebBank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. WebBank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. In July 2013, the Federal Deposit Insurance Corporation approved the final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks ("Basel III"). Under the final rules, which began for WebBank on January 1, 2015 and are subject to a phase-in period through January 1, 2019, minimum requirements will increase for both the quantity and quality of capital held by WebBank. The rules include a new common equity Tier 1 capital to risk-weighted assets ratio ("CET1 Ratio") of 4.5% and a capital conservation buffer of 2.5% of risk-weighted assets, which when fully phased-in, effectively results in a minimum CET1 Ratio of 7.0%. Basel III raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% (which, with the capital conservation buffer, effectively results in a minimum Tier 1 capital ratio of 8.5% when fully phased-in), effectively results in a minimum total capital to risk-weighted assets ratio of 10.5% (with the capital conservation buffer fully phased-in), and requires a minimum leverage ratio of 4.0%. Basel III also makes changes to risk weights for certain assets and off-balance-sheet exposures. WebBank expects that its capital ratios under Basel III will continue to exceed the well capitalized minimum capital requirements, and such amounts are disclosed in the table below:
SPLP The Company historically has conducted its business, and continues to conduct its business and operations, in such a manner so as not to be deemed an investment company under the Investment Company Act of 1940, as amended ("Act"). Under the Act, the Company is required to meet certain qualitative tests related to the Company's assets and/or income, and to refrain from trading for short-term, speculative purposes. The Company has taken actions, including liquidating certain of our assets and acquiring additional interests in existing or new subsidiaries or controlled companies, to comply with these tests, or a relevant exception. Also, since the Company operates as a diversified holding company engaged in a variety of operating businesses, we do not believe we are primarily engaged in an investment company type business, nor do we propose to primarily engage in such a business. If we were deemed to be an investment company under the Act, we may need to further adjust our business strategy and assets, including divesting certain desirable assets immediately to fall outside of the definition, or within an exemption, to register as an investment company or to cease operations. |
Supplemental Cash Flow Information |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION A summary of supplemental cash flow information for each of the nine-month periods ending September 30, 2017 and 2016 is presented in the following table:
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Other Expenses (Income), Net |
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Other Expenses (Income), Net | OTHER (INCOME) EXPENSES, NET Other (income) expenses, net consists of the following:
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Subsequent Events |
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Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS HNH Transaction On October 12, 2017, the Company completed the Offer to purchase any and all of the outstanding shares of common stock, par value $0.01 per share ("Share"), of HNH not already owned by SPLP or any entity that is an affiliate of SPLP, for 1.484 SPLP Preferred Units that currently trade on the New York Stock Exchange for each Share. As a result of the completion of the Offer, the Company issued approximately 5,400,000 SPLP Preferred Units with a fair value of approximately $112,000 and liquidation value of approximately $135,000 to HNH shareholders, and the Company now owns 100% of HNH. In accordance with the accounting standard on consolidation, changes in a parent's ownership interest where the parent retains a controlling financial interest in its subsidiary are accounted for as equity transactions. The carrying amount of the noncontrolling interest in HNH will be eliminated to reflect the change in SPLP's ownership interest in HNH, and the difference between the fair value of the consideration paid and the amount by which the noncontrolling interest is adjusted will be recognized in Partners' capital. |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Presentation | Basis of Presentation The consolidated balance sheet as of December 31, 2016, which has been derived from audited financial statements, and the unaudited consolidated financial statements included herein have been prepared by the Company in accordance with the rules and regulations of the Securities and Exchange Commission for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted in accordance with those rules and regulations. The Company believes that the disclosures made are adequate to make the information not misleading. This quarterly report on Form 10-Q should be read in conjunction with the Company's audited consolidated financial statements on Form 10-K for the year ended December 31, 2016. Certain amounts for the prior year have been reclassified to conform to the current year presentation. In the opinion of management, the interim financial statements reflect all normal and recurring adjustments necessary to present fairly the consolidated financial position and the results of operations and changes in cash flows for the interim periods. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Estimates are based on historical experience, expected future cash flows and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the operating results for the full year. |
New Accounting Pronouncements | New or Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), and has since issued several additional amendments thereto (collectively referred to herein as "ASC 606"), which will become effective for the Company on January 1, 2018. The core principle of the guidance 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, and the guidance defines a five-step process to achieve this core principle. ASC 606 also requires additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASC 606 may be applied either (i) retrospectively, reflecting the application of the standard in each prior reporting period presented with an election for certain specified practical expedients (retrospective method), or (ii) retrospectively with the cumulative effect of initially applying ASC 606 recognized in partners' capital at the date of adoption, with additional disclosure requirements (modified retrospective method). The Company plans to adopt ASC 606 in the first quarter of 2018 using the modified retrospective method and will present the cumulative effect of applying the standard to all contracts not completed as of the adoption date. As of September 30, 2017, the Company is in the process of: (i) finalizing its review of customer contracts; (ii) training internal stakeholders on the pending changes to revenue recognition policies; and (iii) assessing and implementing appropriate changes to the Company's business processes and controls to support revenue recognition and disclosures under the new standard. At this time, the Company anticipates that the primary change to its accounting policies for certain of its business units upon adopting ASC 606 will relate to the timing of when revenue is recognized. While revenue from most contracts will continue to be recognized at a point in time, revenue from other contracts (for example, contracts for sale of custom manufactured goods that do not have an alternative use and for which the Company has an enforceable right to payment) may be required to be recognized over time. For contracts that are required to be recognized over time, the Company will accelerate revenue recognition throughout the production process, whereas previously the Company did not recognize revenue until the product shipped or reached its destination, based on the transfer of risks and title. The Company is still finalizing its assessment, including the specific dollar impact that over time recognition will have on the Company's consolidated financial statements. The Company continues to assess the impact of ASC 606 on the costs to acquire and fulfill its customer contracts, including whether the Company will apply the practical expedient of expensing contract costs when incurred if the amortization period of the asset that it would have recognized is one year or less. Currently, the Company's accounting policy is to expense contract costs as they are incurred. The Company expects to complete its implementation work in time to adopt ASC 606 for periods starting after December 31, 2017. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments do not apply to inventory that is measured using the last in, first out ("LIFO") cost method. On January 1, 2017, the Company began applying the inventory measurement provisions of the new ASU, and such provisions did not have and are not expected to have a material impact on the Company's consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10), which eliminates the requirement to classify equity securities with readily determinable market values as either available-for-sale securities or trading securities, and requires that equity investments, other than those accounted for under the traditional equity method of accounting, be measured at their fair value with changes in fair value recognized in net income or loss. Equity investments that do not have readily determinable market values may be measured at cost, subject to an assessment for impairment. ASU No. 2016-01 also requires enhanced disclosures about such equity investments. ASU No. 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption prohibited. Upon adoption, a reporting entity should apply the provisions of ASU No. 2016-01 by means of a cumulative effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. ASU No. 2016-01 will impact the Company's consolidated statement of operations for amounts related to unrealized gains and losses on available-for-sale securities, which are currently reported in the Company's consolidated statement of comprehensive income, however, the Company is still assessing the overall potential impact of adopting ASU No. 2016-01 on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability, measured on a discounted basis, on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. A modified retrospective transition approach is required for capital and operating leases existing at the date of adoption, with certain practical expedients available. The Company is currently evaluating the potential impact of this new guidance, which is effective for the Company's 2019 fiscal year. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This new standard simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows, among other things. The new standard is effective for the Company's 2017 fiscal year, and the Company has adopted its provisions as of January 1, 2017. The impacts of certain amendments in ASU No. 2016-09, such as those related to the treatment of tax windfalls from stock-based compensation that are included in net operating loss carryforwards and elections made for accounting for forfeitures, are required to be adopted on a modified retrospective basis through a cumulative-effect adjustment to partners' capital. Upon adoption, on January 1, 2017, the Company recorded a deferred tax asset of approximately $4,600 and a corresponding valuation allowance resulting in no net impact on Partners' capital. In addition, the Company elected to continue to estimate forfeitures under its current policy, therefore, there was no modified retrospective adjustment required for accounting for forfeitures upon adoption. The other provisions of ASU No. 2016-09, such as classification of certain items in the statement of cash flows, are being applied in 2017, with reclassification of prior period amounts where applicable. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new standard changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments, including trade receivables, from an incurred loss model to an expected loss model and adds certain new required disclosures. Under the expected loss model, entities will recognize estimated credit losses to be incurred over the entire contractual term of the instrument rather than delaying recognition of credit losses until it is probable the loss has been incurred. The new standard is effective for the Company's 2020 fiscal year with early adoption permitted for all entities in fiscal years beginning after December 15, 2018. The Company is currently evaluating the potential impact of this new guidance. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This new standard provides guidance to help decrease diversity in practice in how certain cash receipts and cash payments are classified in the statement of cash flows. The amendments in ASU No. 2016-15 provide guidance on eight specific cash flow issues. The new standard is effective for the Company's 2018 fiscal year. The Company is currently evaluating the potential impact of this new guidance. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This new standard provides guidance on the classification of restricted cash in the statement of cash flows. The amendments in ASU No. 2016-18 are effective for the Company's 2018 fiscal year. The Company is currently evaluating the potential impact of this new guidance. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This new standard provides guidance to help determine more clearly what is a business acquisition, as opposed to an asset acquisition. The amendments provide a screen to help determine when a set of components is a business by reducing the number of transactions in an acquisition that need to be evaluated. The new standard states that to classify the acquisition of assets as a business, there must be an input and a substantive process that jointly contribute to the ability to create outputs, with outputs being defined as the key elements of the business. If all of the fair value of the assets acquired are concentrated in a single asset group, this would not qualify as a business. The amendments in ASU No. 2017-01 are effective for the Company's 2018 fiscal year. The Company is currently evaluating the potential impact of this new guidance. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new standard simplifies subsequent measurements of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, entities will perform their interim or annual goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge based on the amount that the carrying amount exceeds the reporting unit's fair value. The loss recognized should not exceed the total goodwill allocated to the reporting unit. The amendments in ASU No. 2017-04 are effective for the Company's 2020 fiscal year. The Company is currently evaluating the potential impact of this new guidance. In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This new standard requires the components of net benefit cost to be disaggregated within the statement of operations, with service cost being included in the same line item as other compensation costs, and any other components being presented outside of operating income. The amendments in ASU No. 2017-07 are effective for the Company's 2018 fiscal year. The Company is currently evaluating the potential impact of this guidance, but it does not currently expect that there will be any impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. This new standard provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard states that entities should account for the effects of a modification unless the fair value of the modified award is the same as the fair value of the original award, the vesting conditions do not change, and the classification as an equity instrument or a liability instrument is the same. The amendments in ASU No. 2017-09 are effective for the Company's 2018 fiscal year. The Company is currently evaluating the potential impact of this new guidance. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This new standard was created to refine and expand hedge accounting for both financial and commodity risk in order to simplify the current application of hedge accounting guidance in current U.S. GAAP. This new standard creates more transparency around how hedging results are presented, both in the notes and on the face of the financial statements. The amendments in ASU No. 2017-12 are effective for the Company's 2019 fiscal year. The Company is currently evaluating the potential impact of this new guidance. |
Nature of the Business and Basis of Presentation (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements | The consolidated financial statements include the accounts of the Company and its majority or wholly-owned subsidiaries, which include the following:
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Acquisitions (Tables) |
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Business Acquisition, Pro Forma Information |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the amounts of the assets acquired and liabilities assumed at the acquisition date:
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Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the amounts of the assets acquired and liabilities assumed at the acquisition date:
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Loans Receivable, Including Loans Held For Sale (Tables) |
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade and Other Receivables | Major classification of WebBank's loans receivable, including loans held for sale, at September 30, 2017 and December 31, 2016 are as follows:
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Inventories, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | A summary of Inventories, net is as follows:
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Inventory Supplemental Disclosure |
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Goodwill and Other Intangibles, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the change in the carrying value of goodwill | A reconciliation of the change in the carrying value of goodwill by reportable segment is as follows:
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Summary of Intangible Assets | A summary of Other intangible assets, net is as follows:
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Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | The Company's portfolio of marketable securities was as follows:
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Unrealized Gain (Loss) on Investments | Gross realized gains and losses from sales of marketable securities, all of which are reported as a component of Other (income) expenses, net in the Company's consolidated statements of operations, were as follows:
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Schedule of Unrealized Loss on Investments | The fair value of marketable securities with unrealized losses at September 30, 2017, and the duration of time that such losses had been unrealized, were as follows:
The fair value of marketable securities with unrealized losses at December 31, 2016, and the duration of time that such losses had been unrealized, were as follows:
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Schedule of Available-for-sale Securities and Equity Method Investments | The following table summarizes the Company's long-term investments as of September 30, 2017 and December 31, 2016. For those investments at fair value, the carrying amount of the investment equals its respective fair value.
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Schedule of Additional Disclosures of Associated Companies | The below summary balance sheet and statement of operations amounts include results for associated companies for the periods in which they were accounted for as an associated company, or the nearest practicable corresponding period to the Company's fiscal period.
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Long-term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term and Short-term Debt | Debt consists of the following:
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Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Financial Instrument Balance | Activity is summarized below for financial instrument liabilities and related restricted cash:
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Schedule of Outstanding Forward or Future Contracts with Settlement Dates | As of September 30, 2017, HNH had the following outstanding forward contracts with settlement dates through October 2017. There were no futures contracts outstanding at September 30, 2017.
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value and carrying amount of derivative instruments on the Company's consolidated balance sheets and the effect of derivative instruments in the Company's consolidated statements of operations are shown in the following tables:
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance |
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Pension Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The following table presents the components of pension expense for HNH's and API's pension plans:
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Capital and Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Changes, net of tax, in Accumulated other comprehensive income (loss) are as follows:
|
Net (Loss) Income Per Common Unit (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following data was used in computing net income per common unit shown in the Company's consolidated statements of operations:
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | Financial assets and liabilities measured at fair value on a recurring basis in the Company's consolidated financial statements as of September 30, 2017 and December 31, 2016 are summarized by type of inputs applicable to the fair value measurements as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Following is a summary of changes in financial assets measured using Level 3 inputs:
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Segment information is presented below:
|
Regulatory Matters (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | WebBank expects that its capital ratios under Basel III will continue to exceed the well capitalized minimum capital requirements, and such amounts are disclosed in the table below:
|
Supplemental Cash Flow Information (Tables) |
9 Months Ended |
---|---|
Sep. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | A |
Other Expenses (Income), Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other (Expense) Income, Net | Other (income) expenses, net consists of the following:
|
Inventories, Net - Summary of Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished products | $ 49,142 | $ 42,824 |
In-process | 24,868 | 19,160 |
Raw materials | 49,119 | 42,881 |
Fine and fabricated precious metal in various stages of completion | 18,087 | 15,019 |
Inventory, before LIFO reserve | 141,216 | 119,884 |
LIFO reserve | (1,008) | (679) |
Inventory, Net | $ 140,208 | $ 119,205 |
Inventories, Net - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017
USD ($)
oz
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
oz
|
Sep. 30, 2016
USD ($)
|
|
Inventory [Line Items] | ||||
Customer metal, ounces of silver | oz | 114,183 | 114,183 | ||
Customer metal, ounces of gold | oz | 513 | 513 | ||
Customer metal, ounces of palladium | oz | 1,391 | 1,391 | ||
Interest expense | $ | $ 5,147 | $ 3,025 | $ 14,446 | $ 7,390 |
Bank of Nova Scotia [Member] | Consignment Agreement | ||||
Inventory [Line Items] | ||||
Interest expense | $ | 29,500 | |||
Bank of Nova Scotia [Member] | Consignment Agreement | Silver | ||||
Inventory [Line Items] | ||||
Merchandise under consignment | $ | $ 8,200 | $ 8,200 |
Inventories, Net - Supplemental Inventory Information (Details) $ in Thousands |
Sep. 30, 2017
USD ($)
$ / oz
|
Dec. 31, 2016
USD ($)
$ / oz
|
---|---|---|
Inventory Disclosure [Abstract] | ||
Precious metals stated at LIFO cost | $ | $ 6,085 | $ 5,001 |
Precious metals stated under non-LIFO cost methods, primarily at fair value | $ | $ 10,994 | $ 9,339 |
Market value per ounce, Silver (in dollars per ounce) | 16.77 | 16.05 |
Market value per ounce, Gold (in dollars per ounce) | 1,283.10 | 1,159.10 |
Market value per ounce, Palladium (in dollars per ounce) | 935.00 | 676.00 |
Goodwill and Other Intangibles, Net - Other Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 318,857 | $ 317,206 |
Accumulated Amortization | 112,699 | 89,994 |
Net | 206,158 | 227,212 |
Other intangible assets, net | 206,158 | 227,212 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 222,330 | 220,890 |
Accumulated Amortization | 75,478 | 57,978 |
Net | 146,852 | 162,912 |
Trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 52,180 | 51,717 |
Accumulated Amortization | 14,286 | 11,682 |
Net | 37,894 | 40,035 |
Patents and technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 28,203 | 27,947 |
Accumulated Amortization | 11,143 | 9,332 |
Net | 17,060 | 18,615 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,144 | 16,652 |
Accumulated Amortization | 11,792 | 11,002 |
Net | $ 4,352 | $ 5,650 |
Goodwill and Other Intangibles, Net - Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Trademarks with indefinite lives | $ 8,020 | $ 8,020 | $ 8,020 | ||
Amortization expense | $ 7,159 | $ 9,360 | $ 22,696 | $ 18,332 |
Investments - Gross Realized Gains and Losses (Details) - Steel Excel Inc. - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Gain (Loss) on Investments [Line Items] | ||||
Gross realized gains | $ 449 | $ 899 | $ 545 | $ 2,902 |
Gross realized losses | (46) | (667) | (409) | (2,308) |
Realized gains (losses), net | $ 403 | $ 232 | $ 136 | $ 594 |
Investments - Equity Method Investments (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | ||
---|---|---|---|
Apr. 30, 2016 |
Sep. 30, 2017 |
Dec. 31, 2016 |
|
iGo, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 45.00% | ||
API Optix s.r.o | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
ModusLink Global Solutions, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of warrants purchased (in shares) | 2,000,000 | ||
Exercise price of warrants or rights (in dollars per share) | $ 5 | ||
API Technologies Corp. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 0.00% | 0.00% | |
Aviat Networks, Inc. (Aviat) | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 12.70% | 12.70% | |
Steel Excel Inc. | API Technologies Corp. | |||
Schedule of Equity Method Investments [Line Items] | |||
Proceeds (in dollars per share) | $ 2.00 | ||
Investment proceeds | $ 22,900 |
Investments - Additional Disclosures Related to Associated Company Financial Statements (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 198,843 | $ 198,843 | $ 117,016 | ||
iGo, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 3,700 | $ 3,700 | 3,900 | ||
Ownership percentage | 45.00% | 45.00% | |||
API Optix s.r.o | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.00% | 50.00% | |||
Multiple equity method investments | |||||
Summary of balance sheet amounts: | |||||
Current assets | $ 257,846 | $ 257,846 | 317,014 | ||
Non-current assets | 23,452 | 23,452 | 28,169 | ||
Total assets | 281,298 | 281,298 | 345,183 | ||
Current liabilities | 149,155 | 149,155 | 200,966 | ||
Non-current liabilities | 69,172 | 69,172 | 67,483 | ||
Total liabilities | 218,327 | 218,327 | 268,449 | ||
Equity | 62,971 | 62,971 | 76,734 | ||
Total liabilities and equity | 281,298 | 281,298 | $ 345,183 | ||
Summary operating results: | |||||
Net revenue | 99,777 | $ 101,508 | 315,293 | $ 420,213 | |
Gross profit | 7,292 | 6,477 | 27,032 | 34,256 | |
Net loss | $ (9,311) | $ (19,711) | $ (17,284) | $ (41,464) |
Investments - Other Investments - Related Party (Details) - WebBank - USD ($) $ in Thousands |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
Held to maturity securities | $ 23,908 | $ 11,558 |
Maturities held one through five years | 7,340 | |
Maturities between years five and ten | 15,383 | |
Maturities, after ten years | 1,185 | |
Fair value | $ 23,964 | $ 11,556 |
Long-term Debt - SPLP Credit Facility (Details) |
9 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
| |
London Interbank Offered Rate (LIBOR) | Credit Agreement | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 0.63% |
Base Rate | Credit Agreement | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.63% |
PNC Bank, National Association | Letter of Credit | |
Debt Instrument [Line Items] | |
Weighted average rate (as a percent) | 3.12% |
Maximum borrowing capacity | $ 10,000,000 |
PNC Bank, National Association | Line of Credit | |
Debt Instrument [Line Items] | |
Borrowing capacity | $ 105,000,000 |
Financial Instruments - Roll Forward (Details) - Financial Instruments and Restricted Cash - Not Designated as Hedging Instrument - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Foreign Currency Financial Liabilities and Related Restricted Cash [Roll Forward] | ||
Balance, beginning of period | $ 12,640 | $ 21,639 |
Settlement of short sales of corporate securities | (69) | (9,194) |
Short sales of corporate securities | 129 | 93 |
Net investment losses (gains) | 1,737 | (682) |
Balance, end of period | $ 14,437 | $ 11,856 |
Financial Instruments - Commodity Contracts (Details) - Commodity $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
oz
lb
T
| |
Silver, Ounces | |
Derivative [Line Items] | |
Amount | oz | 208,710 |
Notional Value | $ 3,511 |
Gold, Ounces | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Amount | oz | 800 |
Notional Value | $ 1,029 |
Copper, Pounds | |
Derivative [Line Items] | |
Notional Value | $ 802 |
Copper, Pounds | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Amount | lb | 300,000 |
Tin, Metric Tons | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Amount | T | 15 |
Notional Value | $ 312 |
Pension Benefit Plans - Components of Pension Expense and Other Postretirement Benefit Expense(Details) - HNH - Pension Plans, Defined Benefit - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Defined Benefit Plans Disclosure [Line Items] | ||||
Interest cost | $ 5,594 | $ 5,720 | $ 16,529 | $ 17,705 |
Expected return on plan assets | (7,267) | (7,028) | (19,590) | (21,290) |
Amortization of actuarial loss | 2,346 | 1,990 | 6,921 | 6,240 |
Total | $ 673 | $ 682 | $ 3,860 | $ 2,655 |
Pension Benefit Plans - Narrative (Details) - Pension Plans, Defined Benefit $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
| |
HNH | |
Defined Benefit Plan, Expected Future Employer Contributions [Abstract] | |
Remainder of 2016 | $ 5,100 |
2017 | 32,100 |
2018 | 34,100 |
2019 | 36,400 |
2020 | 31,600 |
Five years thereafter | 78,800 |
API | |
Defined Benefit Plan, Expected Future Employer Contributions [Abstract] | |
Annual expected contribution | $ 938 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Income tax provision | $ 9,913 | $ 8,334 | $ 27,175 | $ 18,357 | ||
WebFinancial Holding Corporation | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Income tax provision | $ (4,182) | $ (111,881) | ||||
Decrease in valuation allowance | $ 329,600 |
Fair Value Measurements - Narrative (Details) - Securities (Assets) |
9 Months Ended |
---|---|
Sep. 30, 2017 | |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Prepayment rate | 7.28% |
Probability of default percent | 1.74% |
Discount rate | 5.25% |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Prepayment rate | 28.99% |
Probability of default percent | 17.86% |
Discount rate | 18.32% |
Related Party Transactions - Management Agreement (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
SP General Services LLC | |||||
Related Party Transaction [Line Items] | |||||
Management fee percentage, quarterly basis (as a percent) | 1.50% | ||||
Management agreement renewal, term (in years) | 1 year | ||||
Notice period prior to management agreement renewal, period (in days) | 60 days | ||||
SP General Services LLC | Management Fee | |||||
Related Party Transaction [Line Items] | |||||
Services fees and reimbursable expenses | $ 2,234 | $ 2,172 | $ 6,500 | $ 6,387 | |
Unpaid amount for management fee | 234 | 234 | $ 0 | ||
SP General Services LLC | Reimbursable Expenses | |||||
Related Party Transaction [Line Items] | |||||
Services fees and reimbursable expenses | 2,055 | $ 859 | 3,915 | $ 3,095 | |
Deferred fees payable to related party | $ 1,865 | 1,865 | $ 1,031 | ||
Related Parties | Management Fee | |||||
Related Party Transaction [Line Items] | |||||
Services fees and reimbursable expenses | $ 2,720 |
Related Party Transactions - Other (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Oct. 12, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Consolidation, eliminations | |||
Related Party Transaction [Line Items] | |||
Deposits | $ 765 | $ 718 | |
WebBank | |||
Related Party Transaction [Line Items] | |||
Ownership | 100.00% | ||
Related Parties | WebBank | |||
Related Party Transaction [Line Items] | |||
Deposits | $ 2,843 | $ 2,786 | |
Subsequent event | Handy & Harman Ltd. (HNH) | |||
Related Party Transaction [Line Items] | |||
Ownership | 100.00% |
Segment Information - Segment Description (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Diversified industrial | ||||
Segment Reporting Information [Line Items] | ||||
Management Fees Revenue | $ 3,000 | $ 2,900 | $ 9,000 | $ 8,700 |
Energy | ||||
Segment Reporting Information [Line Items] | ||||
Management Fees Revenue | 2,000 | 2,000 | 6,000 | 6,000 |
Financial services | ||||
Segment Reporting Information [Line Items] | ||||
Management Fees Revenue | $ 1,175 | $ 1,175 | $ 3,525 | $ 3,525 |
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Segment Reporting Information [Line Items] | ||||
Revenue: | $ 355,040 | $ 316,849 | $ 1,036,750 | $ 845,044 |
Income (loss) before income taxes: | 20,818 | 21,403 | 50,700 | 43,629 |
Income tax provision | 9,913 | 8,334 | 27,175 | 18,357 |
Net income | 10,905 | 13,069 | 23,525 | 25,272 |
Total | 2,332 | 6,367 | 8,702 | 2,649 |
Diversified industrial | ||||
Segment Reporting Information [Line Items] | ||||
Revenue: | 295,485 | 274,327 | 879,515 | 722,399 |
Income (loss) before income taxes: | 17,189 | 12,646 | 46,988 | 37,499 |
Total | 0 | 0 | 0 | 8,078 |
Energy | ||||
Segment Reporting Information [Line Items] | ||||
Revenue: | 37,959 | 27,154 | 99,310 | 68,868 |
Income (loss) before income taxes: | (3,677) | (3,380) | (12,959) | (6,402) |
Total | (318) | 886 | 1,952 | 6,976 |
Financial services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue: | 21,596 | 15,368 | 57,925 | 53,777 |
Income (loss) before income taxes: | 9,669 | 7,911 | 28,136 | 32,018 |
Corporate and other | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes: | (2,363) | 4,226 | (11,465) | (19,486) |
Total | $ 2,650 | $ 5,481 | $ 6,750 | $ (12,405) |
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Interest | $ 16,170 | $ 8,533 |
Taxes | 16,707 | 10,842 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | ||
Reclassification of investment in associated company to cost of an acquisition | 0 | 39,794 |
Exchange of debt securities for equity securities | 3,317 | 0 |
Securities received as distributions from venture capital fund | 0 | 19 |
Securities delivered in exchange for settlement of financial instrument obligations | 0 | 9,155 |
Noncontrolling interest acquired in non-monetary exchange | 0 | 194 |
Issuance of SPLP Preferred Units to purchase subsidiary shares from noncontrolling interests | $ 63,503 | $ 0 |
Other Expenses (Income), Net (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 |
|
Other Income and Expenses [Abstract] | |||||
Investment income | $ (33) | $ (1,232) | $ (133) | $ (3,470) | |
Realized gains on sales of marketable securities, net | (403) | (232) | (835) | (594) | |
Realized loss (gain) on financial instrument obligations | 438 | 563 | 1,737 | (119) | |
Other, net | (128) | (235) | (119) | (3,828) | |
Other (expense) income, net | $ (126) | $ (1,136) | $ 650 | $ (8,011) | $ (8,011) |
Subsequent Events (Details) - Subsequent event $ / shares in Units, $ in Thousands, shares in Millions |
Oct. 12, 2017
USD ($)
$ / shares
shares
|
---|---|
Handy & Harman Ltd. (HNH) | |
Subsequent Event [Line Items] | |
Consideration transferred, equity issuable, per acquiree share (in shares) | 1.484 |
Equity issued, number of shares (in shares) | shares | 5.4 |
Consideration transferred, equity issued | $ 112,000 |
Handy & Harman Ltd. (HNH) | |
Subsequent Event [Line Items] | |
Par value per share (in dollars per share) | $ / shares | $ 0.01 |
Preferred stock, liquidation value | $ 135,000 |
Handy & Harman Ltd. (HNH) | |
Subsequent Event [Line Items] | |
Ownership | 100.00% |
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