10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

FORM 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2021
or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from                  to                  .

Commission file number 001-37427

HORIZON GLOBAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization) 47-3574483 (IRS Employer Identification No.)

47912 Halyard Drive, Suite 100

Plymouth, Michigan 48170

(Address of principal executive offices, including zip code)

(734) 656-3000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	HZN	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x    No o.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x    No o.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes ☐ No ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐    No  ☒

As of July 30, 2021, the number of outstanding shares of the Registrant’s common stock was 27,286,647 shares.

HORIZON GLOBAL CORPORATION

Index

Part I.	Financial Information
		Forward-Looking Statements	2
	Item 1.	Condensed Consolidated Financial Statements	3
		Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020	3
		Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2021 and 2020	4
		Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2021 and 2020	5
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020	6
		Condensed Consolidated Statements of Shareholders’ Equity for the Three and Six Months Ended June 30, 2021 and 2020	7
		Notes to Condensed Consolidated Financial Statements	8
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	29
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	49
	Item 4.	Controls and Procedures	50
Part II.	Other Information
	Item 1.	Legal Proceedings	51
	Item 1A.	Risk Factors	51
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
	Item 3.	Defaults Upon Senior Securities	51
	Item 4.	Mine Safety Disclosures	51
	Item 5.	Other Information	51
	Item 6.	Exhibits	52
	Signatures		53

1

Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date they are made and give our current expectations or forecasts of future events. These forward-looking statements can be identified by the use of forward-looking words, such as “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan” or other comparable words, or by discussions of strategy that may involve risks and uncertainties.

These forward-looking statements are subject to numerous assumptions, risks and uncertainties which could materially affect our business, financial condition or future results including, but not limited to, risks and uncertainties with respect to: the impact of the COVID-19 pandemic on the Company’s business, results of operations, financial condition and liquidity, including, without limitation, supply chain and logistics issues; liabilities and restrictions imposed by the Company’s debt instruments, including the Company’s ability to comply with the applicable financial covenants related thereto; market demand; competitive factors; supply constraints and shipping disruptions; material, logistics and energy costs, including the increased material costs resulting from the COVID-19 pandemic; technology factors; litigation; government and regulatory actions including the impact of any tariffs, quotas, or surcharges; the Company’s accounting policies; future trends; general economic and currency conditions; various conditions specific to the Company’s business and industry; the success of the Company’s action plan, including the actual amount of savings and timing thereof; the success of the Company’s business improvement initiatives in Europe-Africa, including the amount of savings and timing thereof; the Company’s exposure to product liability claims from customers and end users, and the costs associated therewith; factors affecting the Company’s business that are outside of its control, including natural disasters, pandemics, including the current COVID-19 pandemic, accidents and governmental actions; and other risks that are discussed in Part I, Item 1A, “Risk Factors.” in the Company’s Annual Report on Form 10-K for the twelve months ended December 31, 2020. The risks described in the Company’s Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deemed to be immaterial also may materially adversely affect our business, financial position and results of operations or cash flows.

The cautionary statements set forth above should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. We caution readers not to place undue reliance on forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. We do not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect the occurrence of unanticipated events, except as otherwise required by law.

We disclose important factors that could cause our actual results to differ materially from our expectations implied by our forward-looking statements under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in the Company’s Annual Report on Form 10-K for the twelve months ended December 31, 2020. These cautionary statements qualify all forward-looking statements attributed to us or persons acting on our behalf. When we indicate that an event, condition or circumstance could or would have an adverse effect on us, we mean to include effects upon our business, financial and other conditions, results of operations, prospects and ability to service our debt.

2

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

HORIZON GLOBAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited—dollars in thousands)

	June 30, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	24,680	$	44,970
Restricted cash	5,510		5,720
Receivables, net	116,240		87,420
Inventories	144,360		115,320
Prepaid expenses and other current assets	12,100		11,510
Total current assets	302,890		264,940
Property and equipment, net	73,520		74,090
Operating lease right-of-use assets	40,400		47,310
Goodwill	—		3,360
Other intangibles, net	54,890		58,230
Deferred income taxes	1,280		1,280
Other assets	6,410		7,280
Total assets	$	479,390	$	456,490
Liabilities and Shareholders' Equity
Current liabilities:
Short-term borrowings and current maturities, long-term debt	$	11,990	$	14,120
Accounts payable	111,940		99,520
Short-term operating lease liabilities	11,130		12,180
Accrued liabilities	59,750		59,100
Total current liabilities	194,810		184,920
Gross long-term debt	284,040		251,960
Unamortized debt issuance costs and discount	(31,460)		(20,570)
Long-term debt	252,580		231,390
Deferred income taxes	4,080		3,130
Long-term operating lease liabilities	39,410		46,340
Other long-term liabilities	11,000		14,560
Total liabilities	501,880		480,340
Contingencies (See Note 10)
Shareholders' equity:
Preferred stock, $0.01 par: Authorized 100,000,000 shares; Issued and outstanding: None	—		—
Common stock, $0.01 par: Authorized 400,000,000 shares; 27,970,998 shares issued and 27,284,492 outstanding at June 30, 2021, and 27,089,673 shares issued and 26,403,167 outstanding at December 31, 2020	270		260
Common stock warrants issued, outstanding and exercisable for 9,231,146 and 5,815,039 shares of common stock at June 30, 2021 and December 31, 2020, respectively	25,010		9,510
Paid-in capital	169,070		166,610
Treasury stock, at cost: 686,506 shares at June 30, 2021 and December 31, 2020	(10,000)		(10,000)
Accumulated deficit	(192,050)		(178,530)
Accumulated other comprehensive loss	(8,960)		(6,540)
Total Horizon Global shareholders' deficit	(16,660)		(18,690)
Noncontrolling interest	(5,830)		(5,160)
Total shareholders' deficit	(22,490)		(23,850)
Total liabilities and shareholders' equity	$	479,390	$	456,490

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

HORIZON GLOBAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited—dollars in thousands, except share and per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net sales	$	222,120	$	120,490	$	421,310	$	283,740
Cost of sales	(174,830)		(102,440)		(333,460)		(239,440)
Gross profit	47,290		18,050		87,850		44,300
Selling, general and administrative expenses	(35,960)		(26,020)		(69,740)		(58,950)
Operating profit (loss)	11,330		(7,970)		18,110		(14,650)
Other expense, net	(1,990)		(450)		(4,220)		(2,120)
Loss on debt extinguishment	—		—		(11,650)		—
Interest expense	(6,980)		(8,220)		(14,030)		(16,410)
Income (loss) from continuing operations before income tax	2,360		(16,640)		(11,790)		(33,180)
Income tax expense	(1,400)		(80)		(2,400)		(70)
Net income (loss) from continuing operations	960		(16,720)		(14,190)		(33,250)
Loss from discontinued operations, net of income tax	—		—		—		(500)
Net income (loss)	960		(16,720)		(14,190)		(33,750)
Less: Net loss attributable to noncontrolling interest	(330)		(380)		(670)		(670)
Net income (loss) attributable to Horizon Global	$	1,290	$	(16,340)	$	(13,520)	$	(33,080)
Net income (loss) per share attributable to Horizon Global:
Basic:
Continuing operations	$	0.05	$	(0.64)	$	(0.50)	$	(1.28)
Discontinued operations	—		—		—		(0.02)
Total	$	0.05	$	(0.64)	$	(0.50)	$	(1.30)
Diluted:
Continuing operations	$	0.04	$	(0.64)	$	(0.50)	$	(1.28)
Discontinued operations	—		—		—		(0.02)
Total	$	0.04	$	(0.64)	$	(0.50)	$	(1.30)
Weighted average common shares outstanding:
Basic	27,022,652		25,618,793		26,883,818		25,509,794
Diluted	32,747,203		25,618,793		26,883,818		25,509,794

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

HORIZON GLOBAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited—dollars in thousands)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net income (loss)	$	960	$	(16,720)	$	(14,190)	$	(33,750)
Other comprehensive (loss) income, net of tax:
Foreign currency translation and other	(130)		2,040		(2,420)		(2,300)
Total other comprehensive (loss) income, net of tax	(130)		2,040		(2,420)		(2,300)
Total comprehensive income (loss)	830		(14,680)		(16,610)		(36,050)
Less: Comprehensive loss attributable to noncontrolling interest	(330)		(380)		(670)		(670)
Comprehensive income (loss) attributable to Horizon Global	$	1,160	$	(14,300)	$	(15,940)	$	(35,380)

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

HORIZON GLOBAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited—dollars in thousands)

	Six Months Ended June 30,
	2021		2020
Cash Flows from Operating Activities:
Net loss	$	(14,190)	$	(33,750)
Less: Net loss from discontinued operations	—		(500)
Net loss from continuing operations	(14,190)		(33,250)
Adjustments to reconcile net loss from continuing operations to net cash (used for) provided by operating activities:
Depreciation	7,750		7,100
Amortization of intangible assets	2,970		3,430
Loss on debt extinguishment	11,650		—
Amortization of original issuance discount and debt issuance costs	5,400		8,100
Deferred income taxes	1,120		10
Non-cash compensation expense	1,710		1,320
Paid-in-kind interest	650		3,660
Increase in receivables	(30,630)		(16,780)
(Increase) decrease in inventories	(31,350)		19,270
Increase in prepaid expenses and other assets	(440)		(2,890)
Increase in accounts payable and accrued liabilities	15,960		13,460
Other, net	1,780		1,470
Net cash (used for) provided by operating activities for continuing operations	(27,620)		4,900
Cash Flows from Investing Activities:
Capital expenditures	(9,940)		(5,450)
Other, net	10		70
Net cash used for investing activities for continuing operations	(9,930)		(5,380)
Cash Flows from Financing Activities:
Proceeds from borrowings on credit facilities	2,190		6,290
Repayments of borrowings on credit facilities	(1,300)		(1,210)
Proceeds from Senior Term Loan, net of issuance costs	75,300		—
Repayments of borrowings on Replacement Term Loan, including transaction fees	(94,940)		—
Proceeds from Revolving Credit Facility, net of issuance costs	20,000		54,680
Repayments of borrowings on Revolving Credit Facility	—		(19,180)
Proceeds from ABL revolving debt, net of issuance costs	—		8,000
Repayments of borrowings on ABL revolving debt	—		(27,920)
Proceeds from Paycheck Protection Program Loan	—		8,670
Proceeds from issuance of common stock warrants	16,300		—
Proceeds from exercise of common stock warrants	420		—
Other, net	(640)		(10)
Net cash provided by financing activities for continuing operations	17,330		29,320
Discontinued Operations:
Net cash used for discontinued operations	—		(500)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(280)		(110)
Cash, Cash Equivalents and Restricted Cash:
(Decrease) increase for the period	(20,500)		28,230
At beginning of period	50,690		11,770
At end of period	$	30,190	$	40,000
Supplemental disclosure of cash flow information:
Cash paid for interest	$	10,860	$	4,370
Cash paid for taxes, net of refunds	$	1,430	$	440

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

HORIZON GLOBAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(unaudited—dollars in thousands)

	Common Stock		Common Stock Warrants		Paid-in Capital		Treasury Stock		Accumulated Deficit		Accumulated Other Comprehensive (Loss)		Total Horizon Global Shareholders' Equity (Deficit)		Noncontrolling Interest		Total Shareholders' Equity (Deficit)
Balances at January 1, 2021	$	260	$	9,510	$	166,610	$	(10,000)	$	(178,530)	$	(6,540)	$	(18,690)	$	(5,160)	$	(23,850)
Net loss	—		—		—		—		(14,810)		—		(14,810)		(340)		(15,150)
Other comprehensive loss, net of tax	—		—		—		—		—		(2,290)		(2,290)		—		(2,290)
Shares surrendered upon vesting of employees share based payment awards to cover tax obligations	—		—		(650)		—		—		—		(650)		—		(650)
Non-cash compensation expense	—		—		960		—		—		—		960		—		960
Issuance of common stock warrants	—		16,300		—		—		—		—		16,300		—		16,300
Exercise of common stock warrants	10		(800)		1,210		—		—		—		420		—		420
Balances at March 31, 2021	270		25,010		168,130		(10,000)		(193,340)		(8,830)		(18,760)		(5,500)		(24,260)
Net income (loss)	—		—		—		—		1,290		—		1,290		(330)		960
Other comprehensive loss, net of tax	—		—		—		—		—		(130)		(130)		—		(130)
Shares surrendered upon vesting of employees share based payment awards to cover tax obligations	—		—		10		—		—		—		10		—		10
Non-cash compensation expense	—		—		930		—		—		—		930		—		930
Balances at June 30, 2021	$	270	$	25,010	$	169,070	$	(10,000)	$	(192,050)	$	(8,960)	$	(16,660)	$	(5,830)	$	(22,490)

	Common Stock		Common Stock Warrants		Paid-in Capital		Treasury Stock		Accumulated Deficit		Accumulated Other Comprehensive (Loss) Income		Total Horizon Global Shareholders' Equity (Deficit)		Noncontrolling Interest		Total Shareholders' Equity (Deficit)
Balances at January 1, 2020	$	250	$	10,610	$	163,240	$	(10,000)	$	(141,970)	$	(9,790)	$	12,340	$	(3,740)	$	8,600
Net loss	—		—		—		—		(16,740)		—		(16,740)		(290)		(17,030)
Other comprehensive loss, net of tax	—		—		—		—		—		(4,340)		(4,340)		—		(4,340)
Shares surrendered upon vesting of employees share based payment awards to cover tax obligations	—		—		(60)		—		—		—		(60)		—		(60)
Non-cash compensation expense	—		—		420		—		—		—		420		—		420
Balances at March 31, 2020	250		10,610		163,600		(10,000)		(158,710)		(14,130)		(8,380)		(4,030)		(12,410)
Net loss	—		—		—		—		(16,340)		—		(16,340)		(380)		(16,720)
Other comprehensive income, net of tax	—		—		—		—		—		2,040		2,040		—		2,040
Shares surrendered upon vesting of employees share based payment awards to cover tax obligations	—		—		50		—		—		—		50		—		50
Non-cash compensation expense	—		—		900		—		—		—		900		—		900
Balances at June 30, 2020	$	250	$	10,610	$	164,550	$	(10,000)	$	(175,050)	$	(12,090)	$	(21,730)	$	(4,410)	$	(26,140)

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Nature of Operations and Basis of Presentation

Horizon Global Corporation and its consolidated subsidiaries (“Horizon,” “Horizon Global,” “we,” or the “Company”) are a leading designer, manufacturer and distributor of a wide variety of high quality, custom-engineered towing, trailering, cargo management and other related accessory products, primarily in the North American, European and African markets. These products are designed to support aftermarket, automotive original equipment manufacturers (“automotive OEMs”) and automotive original equipment servicers (“automotive OESs”) (collectively, “OEs”), retail, e-commerce and industrial customers within the agricultural, automotive, construction, horse/livestock, industrial, marine, military, recreational, trailer and utility markets. The Company groups its business into operating segments generally by the region in which sales and manufacturing efforts are focused. The Company’s operating segments are Horizon Americas and Horizon Europe-Africa. See Note 14, Segment Information, for further information on each of the Company’s operating segments.

The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the twelve months ended December 31, 2020. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. It is management’s opinion that these condensed consolidated financial statements contain all adjustments, including adjustments of a normal and recurring nature, necessary for a fair presentation of financial position and results of operations. Results of operations for interim periods are not necessarily indicative of results for the full year.

U.S. GAAP requires the Company to make certain estimates, judgments, and assumptions. Management believes that the estimates, judgments, and assumptions made when accounting for items and matters such as, but not limited to, the allowance for doubtful accounts, sales incentives, sales returns, impairment assessment of indefinite-lived intangible assets, recoverability of long-lived assets, income taxes (including deferred taxes and uncertain tax positions), share-based compensation, the assessment of lower of cost or net realizable value on inventory, useful lives assigned to long-lived assets, and depreciation and amortization, are reasonable based on information available at the time they are made. To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected.

8

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2. New Accounting Pronouncements

New accounting pronouncements not yet adopted

In May 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-04, “Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40)” (“ASU 2021-04”). ASU 2021-04 provides guidance on modifications or exchanges of a freestanding equity-classified written call option that is not within the scope of other accounting standards. Under this guidance, an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument. ASU 2021-04 provides further guidance on measuring the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange. ASU 2021-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2021, with early adoption permitted. We are currently assessing the impact of this update on the Company’s condensed consolidated financial statements. The standard is not expected to have a significant impact on the Company's condensed consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for convertible instruments by removing certain separation models in Accounting Standards Codification (“ASC”) 470-20, “Debt—Debt with Conversion and Other Options,” (“ASC 470-20”) for convertible instruments. Under ASU 2020-06, the embedded conversion features no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under ASC 815, “Derivatives and Hedging,” or that do not result in substantial premiums accounted for as paid-in capital. For smaller reporting companies, ASU 2020-06 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2023, with early adoption permitted for fiscal years beginning after December 15, 2020. We are currently assessing the impact of this update on the Company’s condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides temporary optional guidance to ease the potential burden in accounting for (or recognize the effects of) reference rate reform on financial reporting. The relief provided by this guidance is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform initiatives being undertaken in an effort to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The optional amendments of this guidance are effective for all entities upon adoption. We are currently assessing the impact of this update on the Company’s condensed consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 replaces the current incurred loss model guidance with a new method that reflects expected credit losses. Under this guidance, an entity would recognize an allowance for credit losses equal to its estimate of expected credit losses on financial assets measured at amortized cost. In November 2019, the FASB extended the effective date of ASU 2016-13 for smaller reporting companies. As a result, ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022, with early adoption permitted. The standard is not expected to have a significant impact on the Company's condensed consolidated financial statements.

Accounting pronouncements recently adopted

There were no new accounting pronouncements adopted during the six months ended June 30, 2021.

3. Revenues

The Company disaggregates net sales from contracts with customers by major sales channel. The Company determined that disaggregating its net sales into these categories best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The automotive OEM channel represents sales to automotive vehicle manufacturers. The automotive OES channel primarily represents sales to automotive vehicle dealerships. The aftermarket channel represents sales to automotive installers and warehouse distributors. The retail channel represents sales to direct-to-consumer retailers. The e-commerce channel represents sales to retailers whose customers utilize the Internet to purchase the Company’s products. The industrial channel represents sales to non-automotive manufacturers and dealers of agricultural equipment, trailers, and other custom assemblies. The other channel represents sales that do not fit into a category described above and these sales are considered ancillary to the Company’s core operating activities.

9

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company’s net sales by segment and disaggregated by major sales channel are as follows:

	Three Months Ended June 30, 2021
	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Net Sales
Aftermarket	$	40,560	$	26,130	$	66,690
Automotive OEM	22,650		44,190		66,840
Automotive OES	4,240		19,970		24,210
Retail	32,610		—		32,610
E-commerce	19,730		1,960		21,690
Industrial	8,590		630		9,220
Other	—		860		860
Total	$	128,380	$	93,740	$	222,120

	Three Months Ended June 30, 2020
	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Net Sales
Aftermarket	$	22,280	$	16,680	$	38,960
Automotive OEM	9,510		20,620		30,130
Automotive OES	1,080		7,720		8,800
Retail	22,830		—		22,830
E-commerce	13,370		230		13,600
Industrial	5,040		340		5,380
Other	10		780		790
Total	$	74,120	$	46,370	$	120,490

	Six Months Ended June 30, 2021
	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Net Sales
Aftermarket	$	72,250	$	48,550	$	120,800
Automotive OEM	50,170		92,750		142,920
Automotive OES	8,100		36,030		44,130
Retail	55,190		—		55,190
E-commerce	34,250		3,390		37,640
Industrial	18,250		1,180		19,430
Other	—		1,200		1,200
Total	$	238,210	$	183,100	$	421,310

10

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	Six Months Ended June 30, 2020
	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Net Sales
Aftermarket	$	49,050	$	32,390	$	81,440
Automotive OEM	29,870		62,020		91,890
Automotive OES	2,350		20,180		22,530
Retail	46,400		—		46,400
E-commerce	25,880		660		26,540
Industrial	12,890		660		13,550
Other	50		1,340		1,390
Total	$	166,490	$	117,250	$	283,740

4. Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill are as follows:

	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Balance at January 1, 2021	$	3,360	$	—	$	3,360
Divestiture of business	(3,340)		—		(3,340)
Foreign currency translation	(20)		—		(20)
Balance at June 30, 2021	$	—	$	—	$	—

Brazil Sale

On June 8, 2021, the Company divested its Brazil business via a share sale (the “Brazil Sale”). Under the terms of the Brazil Sale, the Company disposed all assets and liabilities of its Brazil business, including $3.3 million of goodwill within the Horizon Americas operating segment, for nominal consideration. As a result of the Brazil Sale, the Company recorded a $2.2 million loss in other expense, net in the accompanying condensed consolidated statements of operations.

The gross carrying amounts and accumulated amortization of the Company’s other intangible assets are as follows:

	June 30, 2021
Intangible Category by Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(dollars in thousands)
Finite-lived intangible assets:
Customer relationships (2 – 20 years)	$	163,860	$	(135,960)	$	27,900
Technology and other (3 – 15 years)	23,000		(17,300)		5,700
Trademark/Trade names (1 – 8 years)	150		(150)		—
Sub-total	187,010		(153,410)		33,600
Trademark/Trade names, indefinite-lived	21,290		—		21,290
Total	$	208,300	$	(153,410)	$	54,890

11

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	December 31, 2020
Intangible Category by Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(dollars in thousands)
Finite-lived intangible assets:
Customer relationships (2 – 20 years)	$	166,420	$	(135,140)	$	31,280
Technology and other (3 – 15 years)	22,250		(16,710)		5,540
Trademark/Trade names (1 – 8 years)	150		(150)		—
Sub-total	188,820		(152,000)		36,820
Trademark/Trade names, indefinite-lived	21,410		—		21,410
Total	$	210,230	$	(152,000)	$	58,230

Amortization expense related to other intangible assets is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Technology and other, included in cost of sales	$	580	$	550	$	780	$	670
Customer relationships, included in selling, general and administrative expenses	1,090		1,310		2,190		2,760
Total	$	1,670	$	1,860	$	2,970	$	3,430

5. Inventories

Inventories consist of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Finished goods	$	72,680	$	58,600
Work in process	16,170		13,070
Raw materials	55,510		43,650
Total	$	144,360	$	115,320

12

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6. Property and Equipment, Net

Property and equipment, net consists of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Land and land improvements	$	500	$	520
Buildings	23,010		23,040
Machinery and equipment	140,110		134,750
Gross property and equipment	163,620		158,310
Accumulated depreciation	(90,100)		(84,220)
Total	$	73,520	$	74,090

Depreciation expense is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Depreciation expense, included in cost of sales	$	3,270	$	3,260	$	7,130	$	6,410
Depreciation expense, included in selling, general and administrative expenses	280		350		620		690
Total	$	3,550	$	3,610	$	7,750	$	7,100

13

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

7. Accrued and Other Long-term Liabilities

Accrued liabilities consist of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Customer incentives	$	17,140	$	15,870
Accrued compensation	12,370		12,130
Short-term tax liabilities	6,640		5,570
Customer claims	3,680		6,520
Accrued professional services	2,070		1,510
Litigation settlements	1,100		1,600
Restructuring	120		650
Deferred purchase price	—		1,370
Other	16,630		13,880
Total	$	59,750	$	59,100

Other long-term liabilities consist of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Litigation settlements	$	2,370	$	2,930
Long-term tax liabilities	380		130
Deferred purchase price	—		1,650
Restructuring	—		1,070
Other	8,250		8,780
Total	$	11,000	$	14,560

14

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8. Long-term Debt

The Company’s long-term debt consists of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Revolving Credit Facility	$	44,230	$	24,230
Senior Term Loan	100,000		—
Replacement Term Loan	—		90,210
Convertible Notes	125,000		125,000
Paycheck Protection Program Loan	8,670		8,670
Bank facilities, capital leases and other long-term debt	18,130		17,970
Gross debt	296,030		266,080
Less:
Short-term borrowings and current maturities, long-term debt	11,990		14,120
Gross long-term debt	284,040		251,960
Less:
Unamortized debt issuance costs and original issuance discount on Senior Term Loan	23,550		—
Unamortized debt issuance costs and original issuance discount on Replacement Term Loan	—		9,100
Unamortized debt issuance costs and discount on Convertible Notes	7,910		11,470
Unamortized debt issuance costs and discount	31,460		20,570
Total	$	252,580	$	231,390

ABL Facility

In December 2015, the Company entered into an Amended and Restated Loan Agreement with certain subsidiaries of the Company party thereto as guarantors, the lenders party thereto and Bank of America, N.A., as agent for the lenders, under which the lenders party thereto agreed to provide the Company and certain of its subsidiaries with a committed asset-based revolving credit facility (the “ABL Facility”) providing for revolving loans. The Amended and Restated Loan Agreement was subsequently amended on several occasions and as a result, the effective facility size was $80.0 million.

In March 2020, the Company paid in full all outstanding debt incurred under the ABL Facility, which the Company accounted for as a debt extinguishment in accordance with guidance in ASC 405-20, “Extinguishment of Liabilities”. As a result of the debt extinguishment, during the six months ended June 30, 2020, the Company recognized $0.8 million of unamortized debt issuance costs in interest expense and $0.6 million of additional costs in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations, in accordance with ASC 470-50, “Modifications and Extinguishments” (“ASC 470-50”).

During the three and six months ended June 30, 2021, the Company recognized no amortization of debt issuance costs and during the three and six months ended June 30, 2020, the Company recognized no amortization of debt issuance costs and $0.4 million amortization of debt issuance costs, respectively, in the accompanying condensed consolidated statements of operations.

Revolving Credit Facility

In March 2020, the Company, as guarantor, entered into a Loan and Security Agreement (the “Loan Agreement”) with Encina Business Credit, LLC (“Encina”), as agent for the lenders party thereto, and Horizon Global Americas Inc. and Cequent Towing Products of Canada Ltd., as borrowers (the “ABL Borrowers”). The Loan Agreement provides for an asset-based revolving credit facility (the “Revolving Credit Facility”) in the maximum aggregate principal amount of $75.0 million subject to customary borrowing base limitations contained therein, and may be increased at the ABL Borrowers’ request in increments of $5.0 million, up to a maximum of five times over the life of the Revolving Credit Facility, for a total increase of up to $25.0 million.

15

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

In May 2020, the Company entered into amendments, limited waivers and consents in connection with the Loan Agreement, with an effective date of April 1, 2020, that, among other things, consented to the Company’s applying for, obtaining and incurring the PPP Loan and French Loan, each as defined and described below.

In February 2021, the Company entered into a limited consent of the Loan Agreement, that among other modifications, consented to the Company’s entering into the Senior Term Loan Credit Agreement, as defined and described below.

On April 19, 2021, the Company entered into an amendment to the Loan Agreement, that among other modifications, increased the maximum amount of credit available under the Revolving Credit Facility from $75.0 million to $85.0 million. The amendment also increased sub-limits relating to the Company’s ability to borrow against in-transit inventory as well as inventory located in the Company’s Mexico facilities.

The interest on the loans under the Loan Agreement is payable in cash at the interest rate of LIBOR plus 4.00% per annum, subject to a 1.00% LIBOR floor, provided that if for any reason the loans are converted to base rate loans, interest will be paid in cash at the customary base rate plus a margin of 3.00% per annum. All interest, fees, and other monetary obligations due may, at Encina’s discretion, but upon prior notice to the ABL Borrowers, be charged to the loan account and thereafter be deemed to be part of the Revolving Credit Facility subject to the same interest rate. There are no amortization payments required under the Loan Agreement. All outstanding borrowings under the Loan Agreement mature on March 13, 2023.

All of the indebtedness under the Loan Agreement is and will be guaranteed by the Company and certain of the Company’s existing and future North American subsidiaries and is and will be secured by substantially all of the assets of the Company, such other guarantors, and the ABL Borrowers.

The Loan Agreement also contains a financial covenant that stipulates the ABL Borrowers and guarantors under the Loan Agreement will not make capital expenditures exceeding $30.0 million during any fiscal year.

Debt issuance costs of $2.3 million were incurred in connection with the Loan Agreement. These debt issuance costs will be amortized into interest expense over the contractual term of the Loan Agreement.

During the three and six months ended June 30, 2021, the Company recognized $0.1 million and $0.3 million of amortization of debt issuance costs, respectively, and during the three and six months ended June 30, 2020, the Company recognized $0.5 million and $0.7 million of amortization of debt issuance costs, respectively, in the accompanying condensed consolidated statements of operations.

As of June 30, 2021 and December 31, 2020, there was $1.0 million and $1.1 million, respectively, of unamortized debt issuance costs included in other assets in the accompanying condensed consolidated balance sheets.

As of June 30, 2021 and December 31, 2020, there was $44.2 million and $24.2 million outstanding, respectively, under the Revolving Credit Facility with a weighted average interest rate of 5.3% and 5.0%, respectively. As of June 30, 2021 and December 31, 2020, the Company had $37.3 million and $38.4 million of availability, respectively, under the Revolving Credit Facility.

As of June 30, 2021 and December 31, 2020, the Company had $1.8 million and $3.1 million, respectively, of letters of credit issued and outstanding, under the Revolving Credit Facility with no cash collateral requirement. As of June 30, 2021 and December 31, 2020, respectively, the Company also had $4.4 million and $4.9 million of other letters of credit issued and outstanding, under the Revolving Credit Facility with a cash collateral requirement. The cash collateral requirement is 105% of the outstanding letters of credit. As of June 30, 2021 and December 31, 2020, the Company had cash collateral, of $4.9 million and $5.1 million, respectively. Cash collateral is presented in restricted cash in the accompanying condensed consolidated balance sheets.

First Lien Term Loan Agreement

In June 2015, the Company entered into a credit agreement among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A. (the “Term Loan Agreement”) under which the Company borrowed an aggregate of $200.0 million (the “Original Term B Loan”). The Term Loan Agreement was subsequently amended and restated on several occasions and is collectively referred to as the “First Lien Term Loan Agreement”. The Original Term B Loan was also subsequently amended on several occasions and is collectively referred to as the “First Lien Term Loan”.

In May 2020, the Company entered into an amendment, limited waiver and consent to credit agreement with an effective date of April 1, 2020, to amend the First Lien Term Loan Agreement and to consent to the Company’s entering into, among other things, the PPP Loan and French Loan, each as defined and described below.

16

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

As a result of the Replacement Term Loan Amendment, as defined and described below, the outstanding balance and any accrued interest was replaced by the Replacement Term Loan, as defined and described below.

During the three and six months ended June 30, 2021, the Company recognized no amortization of debt issuance costs and during the three and six months ended June 30, 2020, the Company recognized $0.1 million and $0.2 million amortization of debt issuance costs, respectively, in the accompanying condensed consolidated statements of operations.

During the three and six months ended June 30, 2021, the Company recognized no paid-in-kind (“PIK”) interest and during the three and six months ended June 30, 2020, the Company recognized $0.2 million and $0.4 million of PIK interest, respectively, in the accompanying condensed consolidated statements of operations.

Second Lien Term Loan Agreement

In March 2019, the Company entered into a credit agreement (the “Second Lien Term Loan Agreement”) with Cortland Capital Markets Services LLC, as administrative agent and collateral agent, and Corre Partners Management L.L.C., as representative of the lenders, and the lenders party thereto. The Second Lien Term Loan Agreement provided for a term loan facility in the aggregate principal amount of $51.0 million.

In May 2020, the Company entered into an amendment, limited waiver and consent to credit agreement with an effective date of April 1, 2020, to amend the Second Lien Term Loan Agreement and to consent to the Company’s entering into, among other things, the PPP Loan and French Loan, each as defined and described below.

As a result of the Replacement Term Loan Amendment, as defined and described below, the outstanding balance and any accrued interest was replaced by the Replacement Term Loan, as defined and described below.

During the three and six months ended June 30, 2021, the Company recognized no amortization of debt issuance costs and during the three and six months ended June 30, 2020, the Company recognized $1.4 million and $2.7 million amortization of debt issuance costs, respectively, in the accompanying condensed consolidated statements of operations.

During the three and six months ended June 30, 2021, the Company recognized no PIK interest and during the three and six months ended June 30, 2020, the Company recognized $1.9 million and $3.3 million of PIK interest, respectively, in the accompanying condensed consolidated statements of operations.

Replacement Term Loan

In July 2020, the Company entered into the Replacement Term Loan Amendment (the “Eleventh Term Amendment”) to amend the Term Loan Agreement. The Eleventh Term Amendment provided replacement term loans (the “Replacement Term Loan”) that refinanced and replaced the outstanding balances under the First Lien Term Loan Agreement and Second Lien Term Loan Agreement, plus any accrued interest thereon.

The interest on the Replacement Term Loan was LIBOR plus 10.75% per annum, subject to a 1.00% LIBOR floor, of which 4.00% was payable in cash and the remainder of which was PIK interest (provided that the Company may elect on not more than one occasion to pay all interest as PIK interest). The Eleventh Amendment provided for a 1.00% PIK closing fee, which was added to the principal amount of the Replacement Term Loan on the closing date and provided for a prepayment penalty on the entire principal amount of the Replacement Term Loan in an amount equal to 3.0% of the aggregate principal amount prepaid prior to December 31, 2021.

In February 2021, the Company entered into the Senior Term Loan Credit Agreement, as defined and described below. The proceeds received from the initial borrowings under the Senior Term Loan Credit Agreement were used to repay in full all outstanding debt and accrued interest on the Company’s Replacement Term Loan. As a result of the repayment, the Term Loan Agreement was terminated and is no longer in effect. During the six months ended June 30, 2021, the Company recognized $11.7 million as loss on debt extinguishment in the accompanying condensed consolidated statements of operations, in accordance with ASC 470-50. Included in the loss was $8.9 million of unamortized debt issuance and others costs and a $2.8 million prepayment penalty.

During the three and six months ended June 30, 2021, the Company recognized no amortization of debt issuance costs and $0.4 million amortization of debt issuance costs, respectively, and during the three and six months ended June 30, 2020, the Company recognized no amortization of debt issuance costs in the accompanying condensed consolidated statements of operations.

17

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

As of December 31, 2020, the Company had total unamortized debt issuance and discount costs of $9.1 million, all of which were recorded as a reduction of long-term debt in the accompanying condensed consolidated balance sheets.

During the three and six months ended June 30, 2021, the Company recognized no PIK interest and $0.7 million of PIK interest, respectively, and during the three and six months ended June 30, 2020, the Company recognized no PIK interest in the accompanying condensed consolidated statements of operations.

As of December 31, 2020, the Company had $90.2 million of aggregate principal outstanding.

Senior Term Loan Credit Agreement

On February 2, 2021, the Company entered into a credit agreement (the “Senior Term Loan Credit Agreement”) with Atlantic Park Strategic Capital Fund, L.P. (“Atlantic Park”), as administrative agent and collateral agent, and the lenders party thereto (collectively, the “Lenders”). The Senior Term Loan Credit Agreement provides for an initial term loan facility in the aggregate principal amount of $100.0 million, all of which has been borrowed by the Company and was used to repay the Replacement Term Loan, as described above, and a delayed draw term loan facility in the aggregate principal amount of up to $125.0 million, which may be drawn by the Company in up to three separate borrowings through June 30, 2022. A ticking fee of 25 basis points per annum will accrue on the undrawn portion of the delayed draw term loan facility.

Interest on the Senior Term Loan Credit Agreement is payable in cash on a quarterly basis at the interest rate of LIBOR plus 7.50% per annum, subject to a 1.00% LIBOR floor. The Senior Term Loan Credit Agreement includes customary affirmative and negative covenants, including a maximum total net leverage ratio requirement tested quarterly, commencing with the fiscal quarter ending March 31, 2023, not to exceed: 6.50 to 1.00. The Senior Term Loan Credit Agreement also contains a financial covenant that stipulates the Company will not make capital expenditures exceeding $27.5 million during any fiscal year. To the extent that the amount of capital expenditures is less than $27.5 million in any fiscal year, up to 50% of the difference may be carried forward and used for capital expenditures in the immediately succeeding fiscal year.

Following a one-year no-call period, the Senior Term Loan Credit Agreement provides for a 2.5% call premium for years two through five and no premium thereafter. All outstanding borrowings under the Senior Term Loan Credit Agreement mature on February 2, 2027.

All of the indebtedness under the Senior Term Loan Credit Agreement is and will be guaranteed by the Company’s existing and future United States, Canadian and Mexican subsidiaries and certain other foreign subsidiaries and is and will be secured by substantially all of the assets of the Company and such guarantors.

Pursuant to the Senior Term Loan Credit Agreement, the Company issued warrants (the “Senior Term Loan Warrants”) to Atlantic Park to purchase in the aggregate up to 3,905,486 shares of the Company’s common stock, with an exercise price of $9.00 per share, subject to adjustment as provided in the Senior Term Loan Warrants. The Senior Term Loan Warrants are exercisable at any time prior to February 2, 2026.

In accordance with guidance in ASC 480, “Distinguishing Liabilities from Equity” (“ASC 480”) and ASC 815, “Derivatives and Hedging”, the Senior Term Loan Credit Agreement and the Senior Term Loan Warrants are each freestanding instruments and proceeds were allocated to each instrument on a relative fair value basis of $82.4 million and $17.6 million, respectively.

The Senior Term Loan Warrants are not within the scope of ASC 480 and do not meet the criteria for liability classification. However, the Senior Term Loan Warrants are determined to be indexed to the Company’s common stock and meet the requirements for equity classification pursuant to ASC 815-40, “Derivatives and Hedging - Contracts in Entity’s Own Equity”. The $17.6 million allocated to the Senior Term Loan Warrants was determined using an option pricing method and is recorded in common stock warrants in the accompanying condensed consolidated balance sheets.

Debt issuance costs of $5.4 million and original issue discount of $3.0 million were incurred in connection with entry into the Senior Term Loan Credit Agreement. The total costs of $8.4 million were allocated to each instrument on a relative fair value basis. The $7.1 million allocated to the Senior Term Loan Credit Agreement will be amortized into interest expense over the contractual term of the loan using the effective interest method and the $1.3 million allocated to the Senior Term Loan Warrants was recorded as a reduction of equity.

The Company determined the fair value of the Senior Term Loan Credit Agreement using a discount rate build up approach. The debt discount of $17.6 million created by the relative fair value allocation of the equity component is being amortized as additional non-cash interest expense using the effective interest method over the contractual term of the loan. The debt discount is recorded as a reduction of long-term debt in the accompanying condensed consolidated balance sheets.

18

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

During the three and six months ended June 30, 2021, the Company recognized $0.7 million and $1.1 million, respectively, of amortization of debt issuance and discount costs in the accompanying condensed consolidated statements of operations.

As of June 30, 2021, the Company had total unamortized debt issuance and discount costs of $23.6 million, all of which were recorded as a reduction of long-term debt in the accompanying condensed consolidated balance sheets.

As of June 30, 2021, the Company had $100.0 million aggregate principal outstanding.

Convertible Notes

In February 2017, the Company completed a public offering of 2.75% Convertible Senior Notes (the “Convertible Notes”) in an aggregate principal amount of $125.0 million. Interest is payable on January 1 and July 1 of each year, beginning on July 1, 2017. The Convertible Notes are convertible into 5,005,000 shares of the Company’s common stock, based on an initial conversion price of $24.98 per share. The Convertible Notes will mature on July 1, 2022 unless earlier converted. In connection with the issuance of the Convertible Notes, the Company entered into convertible note hedge transactions (the “Convertible Note Hedges”) in privately negotiated transactions with certain of the underwriters or their affiliates (in this capacity, the “option counterparties”). The Convertible Note Hedges provide the Company with the option to acquire, on a net settlement basis, 5,005,000 shares of its common stock, which is equal to the number of shares of common stock that notionally underlie the Convertible Notes, at a strike price of $24.98, which corresponds to the conversion price of the Convertible Notes. The Convertible Note Hedges have an expiration date that is the same as the maturity date of the Convertible Notes, subject to earlier exercise. The Convertible Note Hedges have customary anti-dilution provisions similar to the Convertible Notes.

During the second quarter of 2021, no conditions allowing holders of the Convertible Notes to convert have been met. Therefore, the Convertible Notes were not convertible during the second quarter of 2021 and are classified as long-term debt. Should conditions allowing holders of the Convertible Notes to convert be met in a future quarter, the Convertible Notes will be convertible at their holders’ option during the immediately following quarter. As of June 30, 2021, the if-converted value of the Convertible Notes did not exceed the principal value of those Convertible Notes.

Upon conversion by the holders, the Company may elect to settle such conversion in shares of its common stock, cash, or a combination thereof. Because the Company may elect to settle conversion in cash, the Company separated the Convertible Notes into their liability and equity components by allocating the issuance proceeds to each of those components in accordance with ASC 470-20. The Company first determined the fair value of the liability component by estimating the value of a similar liability that does not have an associated equity component. The Company then deducted that amount from the issuance proceeds to arrive at a residual amount, which represents the equity component. The Company accounted for the equity component as a debt discount (with an offset to paid-in capital in excess of par value). The debt discount created by the equity component is being amortized as additional non-cash interest expense using the effective interest method over the contractual term of the Convertible Notes ending on July 1, 2022.

During the three and six months ended June 30, 2021, the Company recognized total interest expense of $2.7 million and $5.3 million and during the three and six months ended June 30, 2020, the Company recognized total interest expense of $2.5 million and $5.1 million, respectively, in the accompanying condensed consolidated statements of operations. The interest expense recognized consists of contractual interest coupon, amortization of debt discount and amortization of debt issuance costs on the Convertible Notes, and is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Contractual interest coupon on convertible debt	$	860	$	870	$	1,720	$	1,740
Amortization of debt issuance costs	140		140		270		270
Amortization of "equity discount" related to debt	1,650		1,520		3,300		3,040
Total	$	2,650	$	2,530	$	5,290	$	5,050

As of June 30, 2021 and December 31, 2020, the Company had total unamortized debt issuance and discount costs of $7.9 million and $11.5 million, respectively, all of which were recorded as a reduction of long-term debt in the accompanying condensed consolidated balance sheets.

19

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

As of June 30, 2021 and December 31, 2020, the Company had $125.0 million and $125.0 million, respectively, of aggregate principal outstanding.

Paycheck Protection Program Loan

In April 2020, Horizon Global Company LLC (the “U.S. Borrower”), a direct U.S.-based subsidiary of the Company, received a loan from PNC Bank, National Association (“PNC”) for $8.7 million, pursuant to the Paycheck Protection Program (the “PPP Loan”) under Division A, Title I of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. The PPP Loan, which is in the form of a note dated April 18, 2020 issued by the U.S. Borrower, matures on April 18, 2022. Funds from the PPP Loan may be used for payroll, costs used to continue group health care benefits, rent and utilities. Under the terms of the PPP Loan, certain amounts may be forgiven if they are used for qualifying expenses as described in the CARES Act.

The Company submitted its PPP Loan application in good faith in accordance with the CARES Act and the guidance issued by the Small Business Administration (the “SBA”), including the SBA’s Paycheck Protection Program’s Frequently Asked Questions. During 2020, the Company, in accordance with the final guidance issued by the United States Department of the Treasury (the “Treasury”), met the need and sized based criteria of the program.

As of June 30, 2021, the Company has filed its application of loan forgiveness with PNC and the SBA for forgiveness of $8.0 million of the $8.7 million of funds originally received. The potential loan forgiveness is determined, subject to limitations, based on the use of loan proceeds for payment of qualifying expenses over the 24 weeks after the loan proceeds were disbursed. The unforgiven portion of the loan has an interest rate of 1.0% per annum, and in July 2021, the note was amended to make the unforgiven portion payable over five years on a monthly basis. The Company has deferred interest payments until the Company’s application for forgiveness is completed in accordance with the guidance issued by the SBA and Treasury and the terms of the Company’s PPP Loan. While we currently believe that our use of the loan proceeds will meet the conditions for forgiveness of our PPP Loan, there can be no assurance that forgiveness for any portion of the PPP Loan will be obtained.

The French Loan

In April 2020, S.I.A.R.R. SAS (the “French Borrower”), an indirect subsidiary of the Company, received a loan from BNP Paribas (the “French Loan”) for $5.5 million. On February 17, 2021, the French Borrower entered into an amendment to the French Loan. Under the terms of the amendment, the repayment of the loan was modified to monthly repayments of principal and interest beginning April 2022 through April 2026, from the original maturity of April 9, 2021. In addition, the interest rate on the French Loan was amended to a rate of 1.0% per annum and interest is payable monthly beginning April 2021.

Covenant and Liquidity Matters

The Company is in compliance with all of its financial covenants as of June 30, 2021.

20

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9. Leases

The Company leases certain facilities, automobiles and equipment under non-cancellable operating leases. Our leases have remaining lease terms of one to eight years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. Leases with an initial term of twelve months or less are not recorded on the condensed consolidated balance sheets; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Most leases include one or more options to renew. The exercise of lease renewal options is typically at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use (“ROU”) assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options and when they are reasonably certain of exercise, the Company includes the renewal period in the lease term. The Company combines lease and non-lease components, which are accounted for as a single lease component as the Company has elected the practical expedient to group lease and non-lease components for all leases. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Refer to Note 3, Summary of Significant Accounting Policies, in the Company’s Annual Report on Form 10-K for the twelve months ended December 31, 2020, for more information.

Supplemental information for the Company’s leases is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Operating lease cost	$	3,760	$	3,600	$	7,630	$	7,200

	Six Months Ended June 30,
	2021		2020
Operating cash flows from operating leases	$	6,120	$	8,110
ROU assets obtained in exchange for operating lease obligations	$	540	$	2,580

	June 30, 2021		December 31, 2020
Weighted average remaining lease term (years)	5.4		6.0
Weighted average discount rate	8.4	%	8.4	%

10. Contingencies

In April 2020, the Company agreed to a settlement (the “Settlement”) related to certain intellectual property infringement claims made against one of the Company’s subsidiaries in its Horizon Europe-Africa operating segment. The Company settled all historical and future associated claims for $4.4 million to be paid evenly in semi-annual installments on June 30 and December 31 of each year through December 31, 2024. As a result of the Settlement, the Company recorded a $1.5 million charge during the first quarter of 2020 in cost of sales of the accompanying condensed consolidated statements of operations. During the three and six months ended June 30, 2021, the Company recorded $0.1 million and $0.2 million of royalties, respectively, and during the three and six months ended June 30, 2020, the Company recorded $0.2 million of royalties, all of which were recorded in cost of sales in the accompanying condensed consolidated statements of operations.

As of June 30, 2021 and December 31, 2020, the Company had recorded $0.9 million and $0.9 million, respectively, in prepaid expenses and other current assets and $1.4 million and $1.8 million, respectively, in other assets, in the accompanying condensed consolidated balance sheets related to the royalties to be recognized by the Company over the life of future programs connected to the Settlement. In addition, as of June 30, 2021 and December 31, 2020, the Company had $0.9 million and $1.0 million, respectively, in accrued liabilities and $2.4 million and $2.9 million, respectively, in other long-term liabilities, in the accompanying condensed consolidated balance sheets related to the remaining semi-annual installment payments.

21

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

11. Earnings (Loss) per Share

Basic earnings (loss) per share is computed using net income (loss) attributable to Horizon Global and the number of weighted average shares outstanding. Diluted earnings (loss) per share is computed using net income (loss) attributable to Horizon Global and the number of weighted average shares outstanding, adjusted to give effect to the assumed exercise of outstanding stock options and warrants, vesting of restricted shares outstanding, and conversion of the Convertible Notes, where dilutive to earnings per share.

A reconciliation of the numerator and the denominator of basic income (loss) per share attributable to Horizon Global and diluted income (loss) per share attributable to Horizon Global is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands, except for per share amounts)
Numerator:
Net income (loss) from continuing operations	$	960	$	(16,720)	$	(14,190)	$	(33,250)
Add: Loss from discontinued operations, net of tax	—		—		—		(500)
Less: Net loss attributable to noncontrolling interest	(330)		(380)		(670)		(670)
Net income (loss) attributable to Horizon Global	$	1,290	$	(16,340)	$	(13,520)	$	(33,080)
Denominator:
Weighted average shares outstanding, basic	27,022,652		25,618,793		26,883,818		25,509,794
Dilutive effect of common stock equivalents	5,724,551		—		—		—
Weighted average shares outstanding, diluted	32,747,203		25,618,793		26,883,818		25,509,794
Basic income (loss) per share attributable to Horizon Global
Continuing operations	$	0.05	$	(0.64)	$	(0.50)	$	(1.28)
Discontinued operations	—		—		—		(0.02)
Total	$	0.05	$	(0.64)	$	(0.50)	$	(1.30)
Diluted income (loss) per share attributable to Horizon Global
Continuing operations	$	0.04	$	(0.64)	$	(0.50)	$	(1.28)
Discontinued operations	—		—		—		(0.02)
Total	$	0.04	$	(0.64)	$	(0.50)	$	(1.30)

As a result of the net loss from continuing operations for the three months ended June 30, 2020 and six months ended June 30, 2021 and 2020, the effect of certain dilutive securities was excluded from the computation of weighted average diluted shares outstanding, as inclusion would have resulted in anti-dilution. A summary of these anti-dilutive common stock equivalents are as follows:

22

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Number of options	18,961	18,961	18,961	18,961
Exercise price of options	$9.20 - $11.02	$9.20 - $11.02	$9.20 - $11.02	$9.20 - $11.02
Restricted stock units	—	2,011,211	1,915,451	1,709,598
Convertible Notes	5,005,000	5,005,000	5,005,000	5,005,000
Convertible Notes warrants	5,005,000	5,005,000	5,005,000	5,005,000
Common stock warrants	3,905,486	6,443,910	8,596,184	6,443,910

For purposes of determining diluted loss per share, the Company has elected a policy to assume that the principal portion of the Convertible Notes, as described in Note 8, Long-term Debt, is settled in cash and the conversion premium is settled in shares. Therefore, the Company has adopted a policy of calculating the diluted loss per share effect of the Convertible Notes using the treasury stock method. As a result, the dilutive effect of the Convertible Notes is limited to the conversion premium, which is reflected in the calculation of diluted loss per share as if it were a freestanding written call option on the Company’s shares. Using the treasury stock method, the warrants issued in connection with the issuance of the Convertible Notes are considered to be dilutive when they are in the money relative to the Company’s average common stock price during the period. The Convertible Note Hedges purchased in connection with the issuance of the Convertible Notes are always considered to be anti-dilutive and therefore do not impact the Company’s calculation of diluted loss per share.

12. Equity Awards

Description of the Plans

In June 2020, the shareholders approved the Horizon Global Corporation 2020 Equity and Incentive Compensation Plan (the “Horizon 2020 Plan”). Horizon employees, non-employee directors and certain consultants participate in the Horizon 2020 Plan. The Horizon 2020 Plan authorizes the Compensation Committee of the Horizon Board of Directors to grant stock options (including “incentive stock options” as defined in Section 422 of the U.S. Internal Revenue Code), appreciation rights, restricted shares, restricted stock units, performance shares, performance stock units, cash incentive awards, dividend equivalents and certain other awards based upon terms and conditions described in the Horizon 2020 Plan. No more than 4.1 million Horizon common shares may be delivered under the Horizon 2020 Plan, plus (A) the total number of shares remaining available for awards under the Horizon 2015 Plan, as defined and described below, as of June 19, 2020, plus (B) the shares that are subject to awards granted under the Horizon 2020 Plan or the Horizon 2015 Plan that are added (or added back, as applicable) to the aggregate number of shares available under the Horizon 2020 Plan pursuant to the share counting rules of the Horizon 2020 Plan. These shares may be shares of original issuance or treasury shares, or a combination of both.

Prior to the Horizon 2020 Plan, employees and non-employee directors participated in the Horizon Global Corporation 2015 Equity and Incentive Compensation Plan (as amended and restated, the “Horizon 2015 Plan”). The Horizon 2015 Plan authorized the Compensation Committee of the Horizon Board of Directors to grant stock options (including “incentive stock options” as defined in Section 422 of the U.S. Internal Revenue Code), restricted shares, restricted stock units, performance shares, performance stock units, cash incentive awards, and certain other awards based on or related to our common stock to Horizon employees and non-employee directors.

Stock Options

Horizon’s stock option activity is as follows:

23

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	Number of Stock Options	Weighted Average Exercise Price		Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2020	18,961	$	10.43
Granted	—	—
Exercised	—	—
Canceled, forfeited	—	—
Expired	—	—
Outstanding at June 30, 2021	18,961	$	10.43	4.5	$	—

As of June 30, 2021, there was no unrecognized compensation cost related to stock options. During the three and six months ended June 30, 2021 and 2020, there was no stock-based compensation expense recognized by the Company related to stock options. As of June 30, 2021, the aggregate intrinsic value of outstanding stock options was immaterial. Stock-based compensation expense is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

Restricted Stock Units

During the six months ended June 30, 2021, the Company granted an aggregate of 524,711 restricted stock units (“RSUs”) and performance stock units (“PSUs”) to certain key employees and non-employee directors. The total grants consisted of: (i) 83,482 RSUs that vested during the period, (ii) 153,563 time-based RSUs vesting on a ratable basis on March 1, 2022, March 1, 2023 and March 1, 2024, (iii) 230,350 PSUs vesting on April 1, 2024 and (iv) 57,316 time-based RSUs vesting on May 28, 2022.

During 2020, the Company granted an aggregate of 1,502,072 RSUs and PSUs to certain key employees and non-employee directors. The total grants consisted of: (i) 284,859 time-based RSUs vesting on a ratable basis on March 3, 2021, March 3, 2022 and March 3, 2023; (ii) 277,228 time-based RSUs vesting on June 24, 2021; (iii) 21,351 time-based RSUs vesting on a ratable basis on April 2, 2021, March 3, 2022 and March 3, 2023 and (iv) 918,634 PSUs vesting on March 3, 2023.

The performance criteria for the PSUs granted is based on the Company’s three-year cumulative EBITDA. The grant date fair values for the PSUs and RSUs are based on the closing trading price of the Company’s common stock on the date of grant.

The grant date fair value of RSUs is expensed over the vesting period. Changes in the number of RSUs outstanding for the six months ended June 30, 2021 are as follows:

	Number of Restricted Stock Units(a)	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2020	1,800,682	$	3.14
Granted	524,711	8.96
Vested	(496,565)	2.63
Canceled, forfeited	(71,669)	5.21
Outstanding at June 30, 2021	1,757,159	$	4.94

(a)Includes PSUs at 100% attainment.

As of June 30, 2021, there was $5.7 million in unrecognized compensation costs related to unvested RSUs that is expected to be recognized over a weighted-average period of 2.2 years.

24

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

During the three and six months ended June 30, 2021, the Company recognized $0.9 million and $1.7 million, respectively, of stock-based compensation expense related to RSUs, and during the three and six months ended June 30, 2020, the Company recognized $0.9 million and $1.3 million, respectively, of stock-based compensation expense related to RSUs. Stock-based compensation expense is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

25

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

13. Shareholders’ Equity

Preferred Stock

The Company is authorized to issue 100,000,000 shares of preferred stock, par value of $0.01 per share. As of June 30, 2021 and December 31, 2020, there were no preferred shares outstanding.

Common Stock

The Company is authorized to issue 400,000,000 shares of Horizon Global common stock, par value of $0.01 per share. As of June 30, 2021, there were 27,970,998 shares of common stock issued and 27,284,492 shares of common stock outstanding. As of December 31, 2020, there were 27,089,673 shares of common stock issued and 26,403,167 shares of common stock outstanding.

Common Stock Warrants

In March 2019, in connection with the Second Lien Term Loan, the Company became obligated to issue detachable warrants to purchase up to 6.25 million shares of the Company’s common stock, which can be exercised on a cashless basis over a five year term with an exercise price of $1.50 per share.

In February 2021, in connection with the Senior Term Loan Credit Agreement, the Company issued the Senior Term Loan Warrants to purchase up to 3,905,486 shares of the Company’s common stock, which can be exercised on a cashless basis over a five year term with an exercise price of $9.00 per share. See Note 8, Long-term Debt, for additional information.

As of June 30, 2021, warrants to purchase 1,228,490 shares of the Company’s common stock have been exercised, resulting in the issuance of 972,924 shares of the Company’s common stock. As of June 30, 2021, warrants to purchase 9,231,146 shares of the Company’s common stock were issued and remain outstanding. During the six months ended June 30, 2021, a related-party entity, JKI Holdings, LLC, an entity owned by the chair of our board of directors, exercised in full the warrants that it originally received in connection with the March 2019 issuance described above, and paid the exercise price in cash and received 278,283 shares of common stock. During the six months ended June 30, 2021, the Company recognized $0.3 million of non-cash transactions in connection with warrants exercised.

Accumulated Other Comprehensive Income (Loss) (“AOCI”)

The change in AOCI attributable to Horizon Global by component, net of tax, for the six months ended June 30, 2021 is as follows:

	Foreign Currency Translation and Other
	(dollars in thousands)
Balance at January 1, 2021	$	(6,540)
Net unrealized losses arising during the period	(2,420)
Net change	(2,420)
Balance at June 30, 2021	$	(8,960)

The change in AOCI attributable to Horizon Global by component, net of tax, for the six months ended June 30, 2020 is as follows:

	Foreign Currency Translation and Other
	(dollars in thousands)
Balance at January 1, 2020	$	(9,790)
Net unrealized losses arising during the period	(2,300)
Net change	(2,300)
Balance at June 30, 2020	$	(12,090)

26

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

14. Segment Information

The Company groups its business into operating segments generally by the region in which sales and manufacturing efforts are focused, which are grouped on the basis of similar product, market and operating factors. Each operating segment has discrete financial information evaluated regularly by the Company’s chief operating decision maker in determining resource allocation and assessing performance. The Company reports the results of its business in two operating segments: Horizon Americas and Horizon Europe-Africa. Horizon Americas is comprised of the Company’s North American operations, and prior to the Brazil Sale also included the Company’s South American operations. Horizon Europe-Africa is comprised of the Company’s European and South African operations. See below for further information regarding the types of products and services provided within each operating segment.

The Company previously had a third operating segment, Horizon Asia-Pacific (“APAC”); however, the APAC segment was sold on September 19, 2019, and is presented as a discontinued operation in the accompanying condensed consolidated financial statements. During the first quarter of 2020, the remaining post-closing conditions of the sale were completed, resulting in a true up to net cash proceeds, which were recognized as a loss on sale of discontinued operations of $0.5 million in accordance with Accounting Standards Codification 205, “Discontinued Operations”.

Horizon Americas - A market leader in the design, manufacture and distribution of a wide variety of high-quality, custom engineered towing, trailering and cargo management products and related accessories. These products are designed to support automotive OEMs, automotive OESs, aftermarket and retail customers in the agricultural, automotive, construction, industrial, marine, military, recreational vehicle, trailer and utility end markets. Products include brake controllers, cargo management, heavy-duty towing products, jacks and couplers, protection/securing systems, trailer structural and electrical components, tow bars, vehicle roof racks, vehicle trailer hitches and additional accessories.

Horizon Europe‑Africa - With a product offering similar to Horizon Americas, Horizon Europe-Africa focuses its sales and manufacturing efforts in the Europe and Africa regions of the world.

The Company’s operating segment activity is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Net Sales
Horizon Americas	$	128,380	$	74,120	$	238,210	$	166,490
Horizon Europe-Africa	93,740		46,370		183,100		117,250
Total	$	222,120	$	120,490	$	421,310	$	283,740
Operating Profit (Loss)
Horizon Americas	$	16,760	$	3,430	$	28,600	$	6,160
Horizon Europe-Africa	1,240		(5,970)		2,700		(8,480)
Corporate	(6,670)		(5,430)		(13,190)		(12,330)
Total	$	11,330	$	(7,970)	$	18,110	$	(14,650)

27

HORIZON GLOBAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

15. Income Taxes

At the end of each interim reporting period, the Company makes an estimate of the annual effective income tax rate. Tax items included in the annual effective income tax rate are pro-rated for the full year and tax items discrete to a specific quarter are included in the effective income tax rate for that quarter. Effective tax rates vary from period to period as separate calculations are performed for those countries where the Company's operations are profitable and whose results continue to be tax-effected and for those countries where full deferred tax valuation allowances exist and are maintained. In determining the estimated annual effective tax rate, the Company analyzes various factors, including but not limited to, forecasts of projected annual earnings, taxing jurisdictions in which the pretax income and/or pretax losses will be generated, available tax planning strategies.

During the three and six months ended June 30, 2021, the effective income tax rate was 59.3% and (20.4)%, respectively. During the three and six months ended June 30, 2020, the effective income tax rate was (0.5)% and (0.2)%, respectively. The differences in the effective tax rate compared to the statutory tax rate is attributable to the valuation allowance recorded in the U.S. and several foreign jurisdictions, which resulted in no income tax benefit recognized for jurisdictional pretax losses, and therefore, are excluded from the estimated effective tax rate.

The Company evaluates the realizability of its deferred tax assets on a quarterly basis. In completing this evaluation, the Company considers all available evidence in order to determine whether, based on the weight of the evidence, a valuation allowance is necessary. Full valuation allowances that are recorded for deferred tax assets in the U.S. and certain foreign jurisdictions will be maintained until sufficient positive evidence exists to reduce or eliminate them. The factors considered by management in its determination of the probability of the realization of the deferred tax assets include, but are not limited to, recent historical financial results, historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences, tax planning strategies. If, based upon the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, a valuation allowance is recorded. The Company has recently experienced pre-tax losses. As of June 30, 2021, the Company believes that it is more likely than not that the recorded deferred tax assets will be realized.

16. Other Expense, Net

Other expense, net consists of the following components:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Loss on sale of business	$	(2,230)	$	—	$	(2,230)	$	—
Foreign currency gain (loss)	460		(220)		(1,650)		(1,750)
Customer pay discounts	(260)		(270)		(500)		(540)
Other, net	40		40		160		170
Total	$	(1,990)	$	(450)	$	(4,220)	$	(2,120)

28

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition contains forward-looking statements regarding industry outlook and our expectations regarding the performance of our business. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described under the heading “Forward-Looking Statements,” at the beginning of this Quarterly Report on Form 10-Q. Our actual results may differ materially from those contained in or implied by any forward-looking statements.

You should read the following discussion together with the Company’s reports on file with the Securities and Exchange Commission, as well as our Annual Report on Form 10-K for the twelve months ended December 31, 2020 (See Item 1A. Risk Factors).

Overview

Headquartered in Plymouth, Michigan, Horizon Global Corporation and its consolidated subsidiaries (“Horizon,” “Horizon Global,” “we,” or the “Company”) are a leading designer, manufacturer and distributor of a wide variety of high-quality, custom-engineered towing, trailering, cargo management and other related accessory products primarily in the North American, European and African markets, primarily servicing the aftermarket, automotive original equipment manufacturers (“automotive OEMs”) and automotive original equipment servicers (“automotive OESs”) (collectively, “OEs”), retail, e-commerce and industrial channels, supporting our customers generally through a regional service and delivery model.

Critical factors affecting our ability to succeed include:

•Our ability to realize the expected future economic benefits resulting from the changes made to our manufacturing operations, distribution footprint and management team in recent years, including the operational improvement initiatives implemented in 2019-2020, which are continuously ongoing to support margin expansion;

•Our ability to continue to manage our liquidity, including continuing to service our debt obligations and comply with the applicable financial covenants thereto, especially given our recent debt refinancing and capital structure alignment to support business growth and the Company’s long-term strategic plan;

•Our ability to quickly and cost-effectively introduce new products to our customers and end-user market with a resulting streamlined customer service model and improved operating margins;

•Our ability to continue to successfully launch new products and customer programs to expand or realign our geographic coverage or distribution channels and realize desired operating efficiencies and product line or customer content penetration;

•Our ability to manage our cost structure more efficiently via global supply base management, internal sourcing and/or purchasing of materials, freight and logistics management, selective outsourcing of support functions, working capital management and a global approach to leverage our administrative functions; and

•Our ability to manage liquidity and other economic and business uncertainties related to the COVID-19 pandemic that may result in future business disruption, including any mandated operating restrictions such as temporary facility closures.

If we are unable to do any of the foregoing successfully, our financial condition and results of operations could be materially and adversely impacted.

Horizon Global reports its business in two operating segments: Horizon Americas and Horizon Europe-Africa. See Note 14, Segment Information, included in Part I, Item 1, “Notes to Condensed Consolidated Financial Statements,” within this Quarterly Report on Form 10-Q for further description of the Company’s operating segments.

Shipping and handling costs associated with outbound freight are accounted for as a fulfillment cost and are included in cost of sales in our condensed consolidated statements of operations. Other shipping and handling expenses, which primarily relate to Horizon Americas’ distribution network, are included in selling, general and administrative expenses in our condensed consolidated statements of operations.

29

Supplemental Analysis and Segment Information

Non-GAAP Financial Measures

The Company’s management utilizes Adjusted EBITDA as the key measure of company and segment performance and for planning and forecasting purposes, as management believes this measure is most reflective of the operational profitability or loss of the Company and its operating segments and provides management and investors with information to evaluate the operating performance of its business and is representative of its performance used to measure certain of its financial covenants, further discussed in the Liquidity and Capital Resources section below. Adjusted EBITDA should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered an alternative to net income attributable to Horizon Global, which is the most directly comparable financial measure to Adjusted EBITDA that is prepared in accordance with U.S. GAAP. Adjusted EBITDA, as determined and measured by Horizon Global, should also not be compared to similarly titled measures reported by other companies. The Company also uses operating profit (loss) to measure stand-alone segment performance.

Adjusted EBITDA is defined as net income (loss) attributable to Horizon Global before interest expense, income taxes, depreciation and amortization, and before certain items, as applicable, such as severance, restructuring, relocation and related business disruption costs, gains (losses) on debt extinguishment, impairment of goodwill and other intangibles, non-cash stock compensation, certain product liability and litigation claims, acquisition and integration costs, gains (losses) on business divestitures and other assets, debt issuance costs, board transition support and non-cash unrealized foreign currency remeasurement costs.

The following table summarizes Adjusted EBITDA for our operating segments for the three months ended June 30, 2021:

	Three Months Ended June 30, 2021
	Horizon Americas		Horizon Europe-Africa		Corporate		Consolidated
	(dollars in thousands)
Net income attributable to Horizon Global							$	1,290
Net loss attributable to noncontrolling interest							(330)
Net income							$	960
Interest expense							6,980
Income tax expense							1,400
Depreciation and amortization							5,220
EBITDA	$	15,980	$	5,040	$	(6,460)	$	14,560
Net loss attributable to noncontrolling interest	—		330		—		330
Restructuring, relocation and related business disruption costs	20		90		(40)		70
Non-cash stock compensation	—		—		850		850
Loss (gain) on business divestitures and other assets	2,480		(10)		—		2,470
Debt issuance costs	—		—		190		190
Unrealized foreign currency remeasurement costs	—		(340)		(110)		(450)
Adjusted EBITDA	$	18,480	$	5,110	$	(5,570)	$	18,020

30

The following table summarizes Adjusted EBITDA for our operating segments for the three months ended June 30, 2020:

	Three Months Ended June 30, 2020
	Horizon Americas		Horizon Europe-Africa		Corporate		Consolidated
	(dollars in thousands)
Net loss attributable to Horizon Global							$	(16,340)
Net loss attributable to noncontrolling interest							(380)
Net loss							$	(16,720)
Interest expense							8,220
Income tax expense							80
Depreciation and amortization							5,470
EBITDA	$	5,350	$	(3,250)	$	(5,050)	$	(2,950)
Net loss attributable to noncontrolling interest	—		380		—		380
Restructuring, relocation and related business disruption costs	410		30		210		650
Non-cash stock compensation	—		—		900		900
Loss on business divestitures and other assets	240		—		40		280
Debt issuance costs	—		—		560		560
Unrealized foreign currency remeasurement costs	(100)		690		(370)		220
Adjusted EBITDA	$	5,900	$	(2,150)	$	(3,710)	$	40

31

Segment Information

Financial information for our operating segments for the three months ended June 30, 2021 and 2020 is as follows:

	Three Months Ended June 30,								Change				Constant Currency Change
	2021		As a Percentage of Net Sales		2020		As a Percentage of Net Sales		$		%		$		%
	(dollars in thousands)
Net Sales
Horizon Americas	$	128,380	57.8	%	$	74,120	61.5	%	$	54,260	73.2	%	$	54,270	73.2	%
Horizon Europe-Africa	93,740		42.2	%	46,370		38.5	%	47,370		102.2	%	39,480		85.1	%
Total	$	222,120	100.0	%	$	120,490	100.0	%	$	101,630	84.3	%	$	93,750	77.8	%
Gross Profit
Horizon Americas	$	35,080	27.3	%	$	18,140	24.5	%	$	16,940	93.4	%	$	16,700	92.1	%
Horizon Europe-Africa	12,210		13.0	%	(90)		(0.2)	%	12,300		13,666.7	%	11,390		12,655.6	%
Total	$	47,290	21.3	%	$	18,050	15.0	%	$	29,240	162.0	%	$	28,090	155.6	%
Selling, General and Administrative Expenses
Horizon Americas	$	18,320	14.3	%	$	14,730	19.9	%	$	3,590	24.4	%	$	3,480	23.6	%
Horizon Europe-Africa	10,970		11.7	%	5,870		12.7	%	5,100		86.9	%	4,140		70.5	%
Corporate	6,670		N/A		5,420		N/A		1,250		23.1	%	1,250		23.1	%
Total	$	35,960	16.2	%	$	26,020	21.6	%	$	9,940	38.2	%	$	8,870	34.1	%
Operating Profit (Loss)
Horizon Americas	$	16,760	13.1	%	$	3,430	4.6	%	$	13,330	388.6	%	$	13,210	385.1	%
Horizon Europe-Africa	1,240		1.3	%	(5,970)		(12.9)	%	7,210		120.8	%	7,240		121.3	%
Corporate	(6,670)		N/A		(5,430)		N/A		(1,240)		(22.8	%)	(1,240)		(22.8	%)
Total	$	11,330	5.1	%	$	(7,970)	(6.6)	%	$	19,300	242.2	%	$	19,210	241.0	%
Capital Expenditures
Horizon Americas	$	2,880	2.2	%	$	900	1.2	%	$	1,980	220.0	%	$	1,970	218.9	%
Horizon Europe-Africa	3,700		3.9	%	490		1.1	%	3,210		655.1	%	3,170		646.9	%
Corporate	—		N/A		—		N/A		—		—	%	—		—	%
Total	$	6,580	3.0	%	$	1,390	1.2	%	$	5,190	373.4	%	$	5,140	369.8	%
Depreciation of Property and Equipment and Amortization of Intangibles
Horizon Americas	$	1,780	1.4	%	$	2,040	2.8	%	$	(260)	(12.7	%)	$	(280)	(13.7	%)
Horizon Europe-Africa	3,390		3.6	%	3,370		7.3	%	20		0.6	%	(260)		(7.7	%)
Corporate	50		N/A		60		N/A		(10)		(16.7	%)	(10)		(16.7	%)
Total	$	5,220	2.4	%	$	5,470	4.5	%	$	(250)	(4.6	%)	$	(550)	(10.1	%)
Adjusted EBITDA
Horizon Americas	$	18,480	14.4	%	$	5,900	8.0	%	$	12,580	213.2	%	N/A		N/A
Horizon Europe-Africa	5,110		5.5	%	(2,150)		(4.6)	%	7,260		337.7	%	N/A		N/A
Corporate	(5,570)		N/A		(3,710)		N/A		(1,860)		(50.1	%)	N/A		N/A
Total	$	18,020	8.1	%	$	40	—	%	$	17,980	44,950.0	%	N/A		N/A

32

Results of Operations

Three Months Ended June 30, 2021 Compared with Three Months Ended June 30, 2020

Consolidated net sales increased $101.6 million, or 84.3%, to $222.1 million during the three months ended June 30, 2021, as compared to $120.5 million during the three months ended June 30, 2020. The impact was driven by an increase in net sales in Horizon Americas and Horizon Europe-Africa primarily as a result of the impacts of economic uncertainty and business disruptions of the COVID-19 pandemic that significantly impacted the Company in the second quarter of 2020. Net sales for Horizon Americas increased $54.3 million, driven primarily by increases in sales volumes in the aftermarket, automotive OEM and retail sales channels, as well as pricing recovery initiatives driven by commodity and input cost price increases. Net sales for Horizon Europe-Africa increased $47.3 million, driven primarily by increases in sales volumes in the automotive OEM, automotive OES and aftermarket sales channels, as well as $7.9 million of favorable currency translation.

Gross profit margin (gross profit as a percentage of net sales) was 21.3% and 15.0% during the three months ended June 30, 2021 and 2020, respectively. The improved gross profit margin is primarily due to higher net sales in Horizon Americas and Horizon Europe-Africa as detailed above, coupled with favorable net sales channel mix, as well as improved operating efficiency during the three months ended June 30, 2021, as compared to the three months ended June 30, 2020, as a result of the impacts of the COVID-19 pandemic experienced in the second quarter of 2020.

Selling, general and administrative (“SG&A”) expenses increased $9.9 million, primarily attributable to $4.9 million higher personnel and other variable compensation costs combined across the Company, driven by temporary salary reductions in the U.S. and participation in certain payroll reimbursement programs in Horizon Europe-Africa in the second quarter of 2020 in response to the impacts of the COVID-19 pandemic. Unfavorable currency translation in Horizon Europe-Africa of $1.0 million also contributed to the increase.

Operating margin (operating profit (loss) as a percentage of net sales) was 5.1% and (6.6)% during the three months ended June 30, 2021 and 2020, respectively. Operating profit improved $19.3 million to an operating profit of $11.3 million during the three months ended June 30, 2021, from an operating loss of $(8.0) million during the three months ended June 30, 2020. Improved operating profit and operating margin were primarily due to the operational results detailed above.

Other expense, net increased $1.5 million to $2.0 million during the three months ended June 30, 2021, as compared to $0.5 million during the three months ended June 30, 2020, primarily attributable to the $2.2 million loss on the sale of the Company’s Brazil business during the three months ended June 30, 2021. Refer to Note 4, Goodwill and Other Intangible Assets, in Part I, Item 1, “Notes to Condensed Consolidated Financial Statements,” included within this Quarterly Report on Form 10-Q for additional information of the sale of the Company’s Brazil business.

Interest expense decreased $1.2 million to $7.0 million during the three months ended June 30, 2021, as compared to $8.2 million during the three months ended June 30, 2020, primarily as a result of the Company’s February 2021 refinancing, which resulted in a new term loan agreement and replaced the Company’s existing term loan agreement. The new term loan included a lower interest rate and removed paid-in-kind interest, resulting in lower interest expense for the three months ended June 30, 2021, as compared to the three months ended June 30, 2020. Refer to Note 8, Long-term Debt, in Part I, Item 1, “Notes to Condensed Consolidated Financial Statements,” included within this Quarterly Report on Form 10-Q for additional information of the Company’s February 2021 refinancing.

The effective income tax rate for the three months ended June 30, 2021 and 2020 was 59.3% and (0.5)%, respectively. The increase in tax expense and related impacts on the effective income tax rate for the three months ended June 30, 2021 is attributable to projected jurisdictional income mix in jurisdictions not in a valuation allowance, coupled with utilization limitations on usage of U.S. tax attributes. The difference in the effective tax rate compared to the statutory tax rate for both periods is attributable to the valuation allowance recorded in the U.S. and several foreign jurisdictions, which resulted in no income tax benefit recognized for jurisdictional pretax losses, and therefore, are excluded from the estimated effective tax rate.

Net income from continuing operations increased $17.7 million to $1.0 million during the three months ended June 30, 2021, compared to a net loss from continuing operations of $(16.7) million during the three months ended June 30, 2020. The improvement was attributable to the operational results detailed above.

See below for a discussion of operating results by segment.

33

Horizon Americas

Net sales by sales channel, in thousands, for Horizon Americas are as follows:

	Three Months Ended June 30,				Change
	2021		2020		$		%
Net Sales
Aftermarket	$	40,560	$	22,280	$	18,280	82.0	%
Automotive OEM	22,650		9,510		13,140		138.2	%
Automotive OES	4,240		1,080		3,160		292.6	%
Retail	32,610		22,830		9,780		42.8	%
E-commerce	19,730		13,370		6,360		47.6	%
Industrial	8,590		5,040		3,550		70.4	%
Other	—		10		(10)		(100.0)	%
Total	$	128,380	$	74,120	$	54,260	73.2	%

Net sales increased $54.3 million, or 73.2%, to $128.4 million during the three months ended June 30, 2021, as compared to $74.1 million during the three months ended June 30, 2020, primarily attributable to higher sales volumes in all sales channels. The increased volumes compared to the three months ended June 30, 2020, are attributable to the impacts of economic uncertainty and business disruptions of the COVID-19 pandemic that impacted the Company in the second quarter of 2020. Net sales also increased by $10.3 million in 2021 due to pricing increases, which were implemented to recover increased material and input costs. The increase was partially offset by a $5.0 million increase in sales returns and allowances during the three months ended June 30, 2021, as compared with the three months ended June 30, 2020, primarily as a result of the higher sales volumes experienced.

Horizon Americas’ gross profit increased $17.0 million, or 93.4%, to $35.1 million, or 27.3% of net sales, during the three months ended June 30, 2021, as compared to $18.1 million, or 24.5% of net sales, during the three months ended June 30, 2020. The increase in gross profit and gross profit margin reflects the changes in sales detailed above. Additionally, gross profit was impacted by the following:

–$0.9 million of favorable tariff recoveries;

–$5.2 million unfavorable manufacturing input costs, such as material costs due to increasing commodity and raw material market prices, coupled with other input costs; and

–$2.3 million unfavorable outbound freight costs driven by higher sales volumes discussed above.

SG&A increased $3.6 million to $18.3 million, or 14.3% of net sales, during the three months ended June 30, 2021, as compared to $14.7 million, or 19.9% of net sales, during the three months ended June 30, 2020. The increase in SG&A was primarily attributable to the cost saving initiatives implemented by the Company and corresponding savings realized during the second quarter of 2020 in response to the impacts of the COVID-19 pandemic. As a result, the increase in SG&A is attributable to the following:

–$2.3 million higher personnel and other variable compensation costs, primarily as a result of temporary salary reductions in the U.S. and other compensation and benefit cost reductions in the second quarter of 2020 in response to the impacts of the COVID-19 pandemic; and

–$0.9 million higher outside professional fees and other administrative costs.

Horizon Americas’ operating profit increased $13.4 million to $16.8 million, or 13.1% of net sales, during the three months ended June 30, 2021, as compared to $3.4 million, or 4.6% of net sales, during the three months ended June 30, 2020. Improved operating profit and operating margin were primarily due to the operational results detailed above.

Horizon Americas’ Adjusted EBITDA increased $12.6 million to $18.5 million during the three months ended June 30, 2021, as compared to Adjusted EBITDA of $5.9 million during the three months ended June 30, 2020. Adjusted EBITDA improved primarily due to the operational results detailed above.

34

Horizon Europe-Africa

Net sales by sales channel, in thousands, for Horizon Europe-Africa are as follows:

	Three Months Ended June 30,				Change
	2021		2020		$		%
Net Sales
Aftermarket	$	26,130	$	16,680	$	9,450	56.7	%
Automotive OEM	44,190		20,620		23,570		114.3	%
Automotive OES	19,970		7,720		12,250		158.7	%
E-commerce	1,960		230		1,730		752.2	%
Industrial	630		340		290		85.3	%
Other	860		780		80		10.3	%
Total	$	93,740	$	46,370	$	47,370	102.2	%

Net sales increased $47.3 million, or 102.2%, to $93.7 million during the three months ended June 30, 2021, as compared to $46.4 million, during the three months ended June 30, 2020, primarily attributable to higher sales volumes in the automotive OEM, automotive OES and aftermarket sales channels. The increased volumes are attributable to the impacts of economic uncertainty and business disruptions of the COVID-19 pandemic that impacted the Company in the second quarter of 2020. The increase was also due to $7.9 million of favorable currency translation.

Horizon Europe-Africa’s gross profit increased $12.3 million, or 13,666.7%, to $12.2 million, or 13.0% of net sales, during the three months ended June 30, 2021, from $(0.1) million, or (0.2)% of net sales, during the three months ended June 30, 2020. The increase in gross profit and gross profit margin reflects the changes in sales detailed above. Additionally, gross profit was impacted by the following:

–$2.5 million higher labor costs, primarily as a result of payroll costs reimbursed in the prior year under terms of certain government payroll reimbursement programs;

–$1.1 million unfavorable outbound freight costs driven by higher sales volumes discussed above; and

–$0.8 million unfavorable manufacturing input costs, such as material costs due to increasing commodity and raw material market prices, coupled with other input costs.

SG&A increased $5.1 million to $11.0 million, or 11.7% of net sales, during the three months ended June 30, 2021, as compared to $5.9 million, or 12.7% of net sales, during the three months ended June 30, 2020. The increase in SG&A was primarily attributable to the cost saving initiatives implemented by the Company and corresponding savings realized during the second quarter of 2020 in response to the impacts of the COVID-19 pandemic. As a result, the increase in SG&A is attributable to the following:

–$1.3 million of higher personnel and other variable compensation cost, partially as a result of payroll costs reimbursed in the prior year under terms of certain government payroll reimbursement programs;

–$1.3 million of higher outside professional fees and other administrative costs; and

–$1.0 million of unfavorable currency translation.

Horizon Europe-Africa’s operating profit increased $7.2 million to an operating profit of $1.2 million, or 1.3% of net sales, during the three months ended June 30, 2021, as compared to an operating loss of $(6.0) million, or (12.9)% of net sales, during the three months ended June 30, 2020. Improved operating profit and operating margin were primarily due to the operational results detailed above.

Horizon Europe-Africa’s Adjusted EBITDA increased $7.3 million to $5.1 million during the three months ended June 30, 2021, as compared to Adjusted EBITDA of $(2.2) million during the three months ended June 30, 2020. Adjusted EBITDA improved primarily due to the operational results detailed above.

35

Corporate Expenses

Corporate expenses included in operating profit increased $1.3 million to $6.7 million during the three months ended June 30, 2021, as compared to $5.4 million during the three months ended June 30, 2020. The increase was primarily attributable to the following:

–$1.3 million higher personnel and other variable compensation costs, primarily as a result of temporary salary reductions in the U.S. and other compensation and benefit cost reductions in the second quarter of 2020 in response to the impacts of the COVID-19 pandemic.

Corporate Adjusted EBITDA was $(5.6) million during the three months ended June 30, 2021, as compared to Adjusted EBITDA of $(3.7) million during the three months ended June 30, 2020. The change in Adjusted EBITDA was primarily due to the operational results detailed above.

The following table summarizes Adjusted EBITDA for our operating segments for the six months ended June 30, 2021:

	Six Months Ended June 30, 2021
	Horizon Americas		Horizon Europe-Africa		Corporate		Consolidated
	(dollars in thousands)
Net loss attributable to Horizon Global							$	(13,520)
Net loss attributable to noncontrolling interest							(670)
Net loss							$	(14,190)
Interest expense							14,030
Income tax expense							2,400
Depreciation and amortization							10,720
EBITDA	$	29,180	$	8,830	$	(25,050)	$	12,960
Net loss attributable to noncontrolling interest	—		670		—		670
Restructuring, relocation and related business disruption costs	(840)		20		(40)		(860)
Loss on debt extinguishment	—		—		11,650		11,650
Non-cash stock compensation	—		—		1,710		1,710
Loss (gain) on business divestitures and other assets	2,720		(10)		—		2,710
Debt issuance costs	—		—		190		190
Unrealized foreign currency remeasurement costs	270		950		420		1,640
Adjusted EBITDA	$	31,330	$	10,460	$	(11,120)	$	30,670

36

The following table summarizes Adjusted EBITDA for our operating segments for the six months ended June 30, 2020:

	Six Months Ended June 30, 2020
	Horizon Americas		Horizon Europe-Africa		Corporate		Consolidated
	(dollars in thousands)
Net loss attributable to Horizon Global							$	(33,080)
Net loss attributable to noncontrolling interest							(670)
Net loss							$	(33,750)
Interest expense							16,410
Income tax expense							70
Depreciation and amortization							10,530
EBITDA	$	10,290	$	(4,340)	$	(12,690)	$	(6,740)
Net loss attributable to noncontrolling interest	—		670		—		670
Loss from discontinued operations, net of tax	—		—		500		500
Severance	530		20		(10)		540
Restructuring, relocation and related business disruption costs	1,300		30		320		1,650
Non-cash stock compensation	—		—		1,320		1,320
Loss (gain) on business divestitures and other assets	600		(180)		40		460
Product liability and litigation claims	—		1,510		—		1,510
Debt issuance costs	—		—		1,310		1,310
Unrealized foreign currency remeasurement costs	(700)		2,440		10		1,750
Adjusted EBITDA	$	12,020	$	150	$	(9,200)	$	2,970

37

The following table summarizes financial information for our operating segments for the six months ended June 30, 2021 and 2020:

	Six Months Ended June 30,								Change				Constant Currency Change
	2021		As a Percentage of Net Sales		2020		As a Percentage of Net Sales		$		%		$		%
	(dollars in thousands)
Net Sales
Horizon Americas	$	238,210	56.5	%	$	166,490	58.7	%	$	71,720	43.1	%	$	72,160	43.3	%
Horizon Europe-Africa	183,100		43.5	%	117,250		41.3	%	65,850		56.2	%	51,020		43.5	%
Total	$	421,310	100.0	%	$	283,740	100.0	%	$	137,570	48.5	%	$	123,180	43.4	%
Gross Profit
Horizon Americas	$	64,350	27.0	%	$	37,760	22.7	%	$	26,590	70.4	%	$	26,450	70.0	%
Horizon Europe-Africa	23,500		12.8	%	6,540		5.6	%	16,960		259.3	%	15,180		232.1	%
Total	$	87,850	20.9	%	$	44,300	15.6	%	$	43,550	98.3	%	$	41,630	94.0	%
Selling, General and Administrative Expenses
Horizon Americas	$	35,750	15.0	%	$	31,620	19.0	%	$	4,130	13.1	%	$	4,120	13.0	%
Horizon Europe-Africa	20,800		11.4	%	15,020		12.8	%	5,780		38.5	%	4,070		27.1	%
Corporate	13,190		N/A		12,310		N/A		880		7.1	%	880		7.1	%
Total	$	69,740	16.6	%	$	58,950	20.8	%	$	10,790	18.3	%	$	9,070	15.4	%
Operating Profit (Loss)
Horizon Americas	$	28,600	12.0	%	$	6,160	3.7	%	$	22,440	364.3	%	$	22,320	362.3	%
Horizon Europe-Africa	2,700		1.5	%	(8,480)		(7.2)	%	11,180		131.8	%	11,090		130.8	%
Corporate	(13,190)		N/A		(12,330)		N/A		(860)		(7.0)	%	(860)		(7.0)	%
Total	$	18,110	4.3	%	$	(14,650)	(5.2)	%	$	32,760	223.6	%	$	32,550	222.2	%
Capital Expenditures
Horizon Americas	$	4,380	1.8	%	$	1,470	0.9	%	$	2,910	198.0	%	$	2,900	197.3	%
Horizon Europe-Africa	5,560		3.0	%	3,980		3.4	%	1,580		39.7	%	1,060		26.6	%
Corporate	—		N/A		—		N/A		—		—	%	—		—	%
Total	$	9,940	2.4	%	$	5,450	1.9	%	$	4,490	82.4	%	$	3,960	72.7	%
Depreciation of Property and Equipment and Amortization of Intangibles
Horizon Americas	$	3,690	1.5	%	$	4,200	2.5	%	$	(510)	(12.1)	%	$	(500)	(11.9)	%
Horizon Europe-Africa	6,930		3.8	%	6,220		5.3	%	710		11.4	%	160		2.6	%
Corporate	100		N/A		110		N/A		(10)		(9.1)	%	(10)		(9.1)	%
Total	$	10,720	2.5	%	$	10,530	3.7	%	$	190	1.8	%	$	(350)	(3.3)	%
Adjusted EBITDA
Horizon Americas	$	31,330	13.2	%	$	12,020	7.2	%	$	19,310	160.6	%	N/A		N/A
Horizon Europe-Africa	10,460		5.7	%	150		0.1	%	10,310		6,873.3	%	N/A		N/A
Corporate	(11,120)		N/A		(9,200)		N/A		(1,920)		(20.9)	%	N/A		N/A
Total	$	30,670	7.3	%	$	2,970	1.0	%	$	27,700	932.7	%	N/A		N/A

38

Results of Operations

Six Months Ended June 30, 2021 Compared with Six Months Ended June 30, 2020

Consolidated net sales increased $137.6 million, or 48.5%, to $421.3 million during the six months ended June 30, 2021, as compared to $283.7 million during the six months ended June 30, 2020. The impact was driven by an increase in net sales in Horizon Americas and Horizon Europe-Africa primarily as a result of the impacts of economic uncertainty and business disruptions of the COVID-19 pandemic that began to impact the Company near the end of the first quarter of 2020, and significantly impacted the Company during the second quarter of 2020. Net sales for Horizon Americas increased $71.7 million, driven primarily by increases in sales volumes in the aftermarket, automotive OEM, retail and e-commerce sales channels, as well as pricing recovery initiatives driven by commodity and input cost price increases. Net sales for Horizon Europe-Africa increased $65.9 million, driven primarily by increases in sales volumes in the automotive OEM, automotive OES and aftermarket sales channels, as well as $14.8 million of favorable currency translation.

Gross profit margin was 20.9% and 15.6% during the six months ended June 30, 2021 and 2020, respectively. The improved gross profit margin is primarily due to higher net sales in Horizon Americas and Horizon Europe-Africa as detailed above, coupled with favorable net sales channel mix, as well as improved operating efficiency during the six months ended June 30, 2021, as compared to six months ended June 30, 2020, as a result of the impacts of the COVID-19 pandemic experienced during the six months ended June 30, 2020.

SG&A increased $10.8 million primarily attributable to $7.9 million higher personnel and other variable compensation costs combined across the Company, driven primarily by temporary salary reductions in the U.S. and the Company’s participation in certain payroll reimbursement programs in the second quarter of 2020 in response to the impacts of the COVID-19 pandemic. Unfavorable currency translation in Horizon Europe-Africa of $1.7 million also contributed to the increase.

Operating margin was 4.3% and (5.2)% during the six months ended June 30, 2021 and 2020, respectively. Operating profit improved $32.8 million to an operating profit of $18.1 million during the six months ended June 30, 2021, from an operating loss of $(14.7) million during the six months ended June 30, 2020. Improved operating profit and operating margin were primarily due to the operational results detailed above.

Other expense, net increased $2.1 million to $4.2 million during the six months ended June 30, 2021, as compared to $2.1 million during the six months ended June 30, 2020, primarily attributable to the $2.2 million loss on the sale of the Company’s Brazil business completed during the second quarter of 2021. Refer to Note 4, Goodwill and Other Intangible Assets, in Part I, Item 1, “Notes to Condensed Consolidated Financial Statements,” included within this Quarterly Report on Form 10-Q for additional information of the sale of the Company’s Brazil business.

Interest expense decreased $2.4 million to $14.0 million during the six months ended June 30, 2021, as compared to $16.4 million during the six months ended June 30, 2020, primarily as a result of the Company’s February 2021 refinancing, which resulted in a new term loan agreement and replaced the Company’s existing term loan agreement. The new term loan included a lower interest rate and removed paid-in-kind interest, resulting in lower interest expense for the six months ended June 30, 2021. Additionally, as a result of the refinancing, the Company incurred an $11.7 million loss on debt extinguishment related to the termination of the existing term loan agreement. Refer to Note 8, Long-term Debt, in Part I, Item 1, “Notes to Condensed Consolidated Financial Statements,” included within this Quarterly Report on Form 10-Q for additional information.

The effective income tax rate for the six months ended June 30, 2021 and 2020 was (20.4)% and (0.2)%, respectively. The increase in tax expense and related impacts on the effective income tax rate for the six months ended June 30, 2021 is attributable to projected jurisdictional income mix in jurisdictions not in a valuation allowance, coupled with utilization limitations on usage of U.S. tax attributes. The difference in the effective tax rate compared to the statutory tax rate for both periods is attributable to the valuation allowance recorded in the U.S. and several foreign jurisdictions, which resulted in no income tax benefit recognized for jurisdictional pretax losses, and therefore, are excluded from the estimated effective tax rate.

Net loss from continuing operations improved $19.1 million, to a net loss of $(14.2) million for the six months ended June 30, 2021, compared to a net loss from continuing operations of $(33.3) million for the six months ended June 30, 2020. The improvement was attributable to the operational results detailed above.

Loss from discontinued operations, net of tax is attributable to the sale of the Company’s former APAC operating segment, which was sold in September 2019. During the six months ended June 30, 2020, the remaining post-closing conditions of the sale were completed, including a true up to net cash proceeds, which resulted in a loss on sale of discontinued operations of $0.5 million, in accordance with Accounting Standards Codification 205-20, “Discontinued Operations”.

See below for a discussion of operating results by segment.

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Horizon Americas

Net sales by sales channel, in thousands, for Horizon Americas are as follows:

	Six Months Ended June 30,				Change
	2021		2020		$		%
Net Sales
Aftermarket	$	72,250	$	49,050	$	23,200	47.3	%
Automotive OEM	50,170		29,870		20,300		68.0	%
Automotive OES	8,100		2,350		5,750		244.7	%
Retail	55,190		46,400		8,790		18.9	%
E-commerce	34,250		25,880		8,370		32.3	%
Industrial	18,250		12,890		5,360		41.6	%
Other	—		50		(50)		N/A
Total	$	238,210	$	166,490	$	71,720	43.1	%

Net sales increased $71.7 million, or 43.1%, to $238.2 million during the six months ended June 30, 2021, as compared to $166.5 million during the six months ended June 30, 2020, primarily attributable to higher sales volumes in all sales channels. The increased volumes compared to the six months ended June 30, 2020, are attributable to the impacts of economic uncertainty and business disruptions of the COVID-19 pandemic that began to impact the Company near the end of the first quarter of 2020, and significantly impacted the Company during the second quarter of 2020. Net sales also increased by $13.1 million in 2021 due to pricing increases, which were implemented to recover increased material and input costs. The increase was partially offset by a $3.7 million increase in sales returns and allowances during the six months ended June 30, 2021, as compared with the six months ended June 30, 2020, primarily as a result of the higher sales volumes experienced.

Horizon Americas’ gross profit increased $26.6 million, or 70.4%, to $64.4 million, or 27.0% of net sales, during the six months ended June 30, 2021, as compared to $37.8 million, or 22.7% of net sales, during the six months ended June 30, 2020. The increase in gross profit and gross profit margin reflects the changes in sales detailed above. Additionally, gross profit was impacted by the following:

–$2.1 million of favorable tariff recoveries;

–$4.0 million unfavorable outbound freight costs driven by higher sales volumes discussed above; and

–$3.7 million unfavorable manufacturing input costs, such as material costs due to increasing commodity and raw material market prices, coupled with other input costs.

SG&A increased $4.2 million to $35.8 million, or 15.0% of net sales during the six months ended June 30, 2021, as compared to $31.6 million, or 19.0% of net sales, during the six months ended June 30, 2020. The increase in SG&A was primarily attributable to the cost saving initiatives implemented by the Company and corresponding savings realized during the second quarter of 2020 in response to the impacts of the COVID-19 pandemic. As a result, the increase in SG&A is attributable to the following:

–$3.8 million higher personnel and other variable compensation costs, primarily as a result of temporary salary reductions in the U.S. and other compensation and benefit cost reductions in the second quarter of 2020 in response to the impacts of the COVID-19 pandemic;

–$1.5 million higher distribution center lease and variable operating and other support costs; partially offset by:

–$0.8 million lower depreciation and amortization.

Horizon Americas’ operating profit increased $22.4 million to $28.6 million, or 12.0% of net sales, during the six months ended June 30, 2021, as compared to $6.2 million, or 3.7% of net sales, during the six months ended June 30, 2020. Improved operating profit and operating margin were primarily due to the operational results detailed above.

Horizon Americas’ Adjusted EBITDA increased $19.3 million to $31.3 million during the six months ended June 30, 2021, as compared to Adjusted EBITDA of $12.0 million during the six months ended June 30, 2020. Adjusted EBITDA improved primarily due to operational results detailed above.

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Horizon Europe-Africa

Net sales by sales channel, in thousands, for Horizon Europe-Africa are as follows:

	Six Months Ended June 30,				Change
	2021		2020		$		%
Net Sales
Aftermarket	$	48,550	$	32,390	$	16,160	49.9	%
Automotive OEM	92,750		62,020		30,730		49.5	%
Automotive OES	36,030		20,180		15,850		78.5	%
E-commerce	3,390		660		2,730		413.6	%
Industrial	1,180		660		520		78.8	%
Other	1,200		1,340		(140)		(10.4)	%
Total	$	183,100	$	117,250	$	65,850	56.2	%

Net sales increased $65.9 million, or 56.2%, to $183.1 million during the six months ended June 30, 2021, as compared to $117.3 million during the six months ended June 30, 2020, primarily attributable to higher sales volumes in the automotive OEM, automotive OES and aftermarket sales channels. The increased volumes are attributable to the impacts of economic uncertainty and business disruptions of the COVID-19 pandemic that began to impact the Company near the end of the first quarter of 2020, and significantly impacted the Company during the second quarter of 2020. The increase was also due to $14.8 million of favorable currency translation.

Horizon Europe-Africa’s gross profit increased $17.0 million, or 259.3%, to $23.5 million, or 12.8% of net sales, during the six months ended June 30, 2021, from $6.5 million, or 5.6% of net sales, during the six months ended June 30, 2020. The increase in gross profit margin reflects the changes in sales detailed above. Additionally, gross profit was impacted by the following:

–$3.7 million favorable manufacturing costs driven by improved operating efficiency and partially offset by unfavorable manufacturing input costs, such as material costs due to increasing commodity and raw material market prices, coupled with other input costs;

–$1.5 million favorable litigation settlement costs related to the charge incurred in the prior year for settlement of intellectual property infringement claims, see Note 10, Contingencies, included in Part I, Item 1, “Notes to Condensed Consolidated Financial Statements” for more information;

–$3.9 million higher labor costs, primarily as a result of payroll costs reimbursed in the prior year under terms of certain government payroll reimbursement programs; and

–$1.3 million unfavorable outbound freight costs driven by higher sales volumes discussed above.

SG&A increased $5.8 million to $20.8 million, or 11.4% of net sales during the six months ended June 30, 2021, as compared to $15.0 million, or 12.8% of net sales, during the six months ended June 30, 2020. The increase in SG&A was primarily attributable to the cost saving initiatives implemented by the Company and corresponding savings realized during the second quarter of 2020 in response to the impacts of the COVID-19 pandemic. As a result, the increase in SG&A is attributable to the following:

–$1.8 million higher personnel and other variable compensation cost, partially as a result of payroll costs reimbursed in the prior year under terms of certain government payroll reimbursement programs;

–$1.2 million of higher outside professional fees and other administrative costs; and

–$1.7 million of unfavorable currency translation.

Horizon Europe-Africa’s operating profit increased $11.2 million to an operating profit of $2.7 million, or 1.5% of net sales during the six months ended June 30, 2021, as compared to an operating loss of $(8.5) million, or (7.2)% of net sales, during the six months ended June 30, 2020. Improved operating profit and operating margin were primarily due to the operational results described above.

Horizon Europe-Africa’s Adjusted EBITDA increased $10.3 million to $10.5 million during the six months ended June 30, 2021, as compared to Adjusted EBITDA of $0.2 million during the six months ended June 30, 2020. Adjusted EBITDA improved primarily due to operational results detailed above.

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Corporate Expenses

Corporate expenses included in operating profit increased $0.9 million to $13.2 million during the six months ended June 30, 2021, as compared to $12.3 million during the six months ended June 30, 2020. The increase was primarily attributable to the following:

–$2.3 million higher personnel and other variable compensation costs primarily as a result of temporary salary reductions in the U.S. and other compensation and benefit cost reductions in the second quarter of 2020 in response to the impacts of the COVID-19 pandemic; partially offset by:

–$1.1 million lower costs incurred related to professional service fees and other costs associated with new debt issuance, amendments, and modifications and related structure changes.

Corporate Adjusted EBITDA was $(11.1) million during the six months ended June 30, 2021, as compared to Adjusted EBITDA of $(9.2) million during the six months ended June 30, 2020. The change in Adjusted EBITDA was primarily due to the higher personnel and compensation costs described above.

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Liquidity and Capital Resources

Our capital and working capital requirements are funded through a combination of cash on hand, cash flows from operations, and various borrowings and factoring arrangements described below, including our asset-based Revolving Credit Facility (as defined below). As of June 30, 2021, and December 31, 2020, we had $12.9 million and $18.2 million, respectively, of cash and cash equivalents held at foreign subsidiaries. There may be country specific regulations, which may restrict or result in increased costs in the repatriation of these funds.

In March 2020, the Company, as guarantor, entered into a Loan and Security Agreement (the “Loan Agreement”) with Encina Business Credit, LLC (“Encina”), as agent for the lenders party thereto, and Horizon Global Americas Inc. and Cequent Towing Products of Canada Ltd., as borrowers (the “ABL Borrowers”). The Loan Agreement provides for an asset-based revolving credit facility (the “Revolving Credit Facility”) in the maximum aggregate principal amount of $75.0 million subject to customary borrowing base limitations contained therein, and may be increased at the ABL Borrowers’ request in increments of $5.0 million, up to a maximum of five times over the life of the Revolving Credit Facility, for a total increase of up to $25.0 million. As of June 30, 2021, the Company had availability of $37.3 million under the Revolving Credit Facility and $11.8 million of cash and cash equivalents in the United States.

As of June 30, 2021 and December 31, 2020, total cash and availability was $62.0 million and $83.4 million, respectively. The Company defines cash and availability as cash and cash equivalents and amounts of cash accessible but undrawn from credit facilities.

During 2020, in response to the initial uncertain economic environment caused in part from the COVID-19 pandemic, the Company pursued funding from available government programs and other sources of liquidity designed to strengthen its balance sheet and enhance financial flexibility. These sources included short-term loans, some of which are forgivable if certain conditions are met as well as entering into or modifying other arrangements. A summary of these actions is described below.

In April 2020, Horizon Global Company LLC (the “U.S. Borrower”), a direct U.S.-based subsidiary of the Company, received a loan from PNC Bank, National Association (“PNC”) for $8.7 million, pursuant to the Paycheck Protection Program (the “PPP Loan”) under Division A, Title I of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. The PPP Loan, which is in the form of a note dated April 18, 2020 issued by the U.S. Borrower, matures on April 18, 2022. Funds from the PPP Loan may be used for payroll, costs used to continue group health care benefits, rent and utilities. Under the terms of the PPP Loan, certain amounts may be forgiven if they are used for qualifying expenses as described in the CARES Act.

The Company submitted its PPP Loan application in good faith in accordance with the CARES Act and the guidance issued by the Small Business Administration (the “SBA”), including the SBA’s Paycheck Protection Program’s Frequently Asked Questions. During 2020, the Company, in accordance with the final guidance issued by the United States Department of the Treasury (the “Treasury”), met the need and sized based criteria of the program.

As of June 30, 2021, the Company has filed its application of loan forgiveness with PNC and the SBA for forgiveness of $8.0 million of $8.7 million of funds originally received. The potential loan forgiveness is determined, subject to limitations, based on the use of loan proceeds for payment of qualifying expenses over the 24 weeks after the loan proceeds were disbursed. The unforgiven portion of the loan has an interest rate of 1.0% per annum, and in July 2021, the note was amended to make the unforgiven portion payable over five years on a monthly basis. The Company has deferred interest payments until the Company’s application for forgiveness is completed in accordance with the guidance issued by the SBA and Treasury and the terms of the Company’s PPP Loan. While we currently believe that our use of the loan proceeds will meet the conditions for forgiveness of our PPP Loan, there can be no assurance that forgiveness for any portion of the PPP Loan will be obtained.

In April 2020, S.I.A.R.R. SAS (the “French Borrower”), an indirect subsidiary of the Company, received a loan from BNP Paribas (the “French Loan”) for $5.5 million. On February 17, 2021, the French Borrower entered into an amendment to the French Loan, which under the terms of the amendment, the repayment of the loan was modified to monthly repayments of principal and interest beginning April 2022 through April 2026, from the original maturity of April 9, 2021. In addition, the interest rate on the French Loan was amended to a rate of 1.0% per annum and interest is payable monthly beginning April 2021.

In March 2020, Westfalia-Automotive GmbH (“Westfalia”), an indirect subsidiary of the Company, was approved for a government payroll reimbursement program in Germany under the Kurzarbeitergeld (the “KUG”). The KUG is designed to reimburse employers for payroll costs incurred and paid to employees affected by the business disruption and government mandated operating restrictions in place due to the COVID-19 pandemic for the period March 1, 2020 through August 31, 2020. Westfalia was approved to receive reimbursement of certain costs for the period March 19, 2020 through August 31, 2020. The Company was reimbursed $3.3 million for qualifying payroll costs under terms of the KUG for the twelve months ended December 31, 2020.

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We believe the combination of these sources, as well as the changes to our capital structure following our recent refinancing activities, as fully summarized below, will enable us to meet our working capital, capital expenditures and other funding requirements. Our ability to fund our working capital needs, debt payments and other obligations, and to comply with financial covenants, including borrowing base limitations under our Revolving Credit Facility, depends on our future operating performance and cash flow and many factors outside of our control, including the costs of raw materials, the state of the automotive accessories market, financial and economic conditions and the extent and duration of the impact of the COVID-19 pandemic.

Cash Flows - Operating Activities

Net cash used for and provided by operating activities during the six months ended June 30, 2021 and 2020 was $(27.6) million and $4.9 million, respectively.

During the six months ended June 30, 2021, the Company generated $18.8 million in cash flows, based on the reported net loss of $(14.2) million and after considering the effects of non-cash items related to depreciation, amortization of intangible assets, loss on debt extinguishment, amortization of original issuance discount and debt issuance costs, deferred income taxes, non-cash compensation expense, paid-in-kind interest, and other, net. During the six months ended June 30, 2020, the Company used $(8.2) million in cash flows, based on the reported net loss of $(33.3) million and after considering the effects of similar non-cash items previously described.

Changes in operating assets and liabilities used $(46.5) million and sourced $13.1 million of cash during the six months ended June 30, 2021 and 2020, respectively.

Changes in accounts receivable resulted in a net use of cash of $(30.6) million and $(16.8) million during the six months ended June 30, 2021 and 2020, respectively. The increase in accounts receivable is higher in the six months ended June 30, 2021 as compared with the six months ended June 30, 2020 as a result of higher net sales activity in the second quarter of 2021 as compared with the second quarter of 2020 driven by the impacts of the COVID-19 pandemic that began to impact the Company near the end of the first quarter of 2020, and significantly impacted the Company during the second quarter of 2020.

Changes in inventory resulted in a use of cash of $(31.4) million during the six months ended June 30, 2021 and source of cash of $19.3 million during the six months ended June 30, 2020. The increase in inventory during the six months ended June 30, 2021 was due in part to recent macroeconomic factors, such as rising costs of raw materials, constraints on shipping container availability and port congestion leading to higher inventory costs and levels of in-transit inventory as well as seasonal inventory build in order to meet the demand of the Company’s traditional peak selling season. The decrease in inventory during the six months ended June 30, 2020 was due to improved inventory management coupled with the COVID-19 business disruptions that impacted the Company during the six months ended June 30, 2020.

Changes in accounts payable and accrued liabilities resulted in a source of cash of $16.0 million and $13.5 million during the six months ended June 30, 2021 and 2020, respectively. The higher source of cash for the six months ended June 30, 2021 as compared to the six months ended June 30, 2020 is primarily due to the working capital build during the six months ended June 30, 2021 for the Company’s peak selling season coupled with the mix of payments to suppliers and vendors and related terms.

Cash Flows - Investing Activities

Net cash used for investing activities during the six months ended June 30, 2021 and 2020 was $(9.9) million and $(5.4) million, respectively.

During the six months ended June 30, 2021 and 2020, capital expenditures were $(9.9) million and $(5.5) million, respectively, and related to growth, capacity and productivity-related projects within Horizon Americas and Horizon Europe-Africa. The increase in capital expenditures is primarily due to the Company’s curtailment or retiming of certain projects during the six months ended June 30, 2020, in response to the impacts and business disruptions of the COVID-19 pandemic.

Cash Flows - Financing Activities

Net cash provided by financing activities was $17.3 million and $29.3 million during the six months ended June 30, 2021 and 2020, respectively.

During the six months ended June 30, 2021 and 2020, net proceeds from the Revolving Credit Facility, net of issuance costs, were $20.0 million and $35.5 million, respectively. During the six months ended June 30, 2020, net repayments on the Company’s former asset based lending facility totaled $(19.9) million.

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During the six months ended June 30, 2021, proceeds from the Company’s new term loan, net of issuance costs and related issuance of common stock warrants were $75.3 million and $16.3 million, respectively. During the six months ended June 30, 2021, repayments of borrowings on Replacement Term Loan, including transaction fees were $(94.9) million.

Additionally, during the six months ended June 30, 2020, proceeds from the PPP Loan were $8.7 million.

Factoring Arrangements

The Company has factoring arrangements with financial institutions to sell certain accounts receivable. During the six months ended June 30, 2021 and 2020, total receivables sold under certain non-recourse factoring arrangements was $158.2 million and $94.6 million, respectively. We utilize factoring arrangements as part of our working capital needs. The costs of participating in these arrangements are immaterial to our results. Refer to Note 3, Summary of Significant Accounting Policies, in Item 8, “Financial Statements and Supplementary Data,” included within our Annual Report on Form 10-K for the twelve months ended December 31, 2020, for additional information.

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Our Debt and Other Commitments

We and certain of our subsidiaries are party to the asset-based Revolving Credit Facility, as defined and described above. The Revolving Credit Facility provides for $75.0 million of funding on a revolving basis, subject to borrowing base availability, and matures on March 13, 2023. As of June 30, 2021, there was $44.2 million outstanding on the Revolving Credit Facility bearing interest at a weighted average rate of 5.3%.

In February 2021, the Company entered into a limited consent to the Loan Agreement governing its Revolving Credit Facility, that among other modifications, consented to the Company’s entering into the Senior Term Loan Credit Agreement, as defined and described below.

On April 19, 2021, the Company entered into an amendment to the Loan Agreement governing its Revolving Credit Facility, that among other modifications, increased the maximum amount of credit available under the Revolving Credit Facility from $75.0 million to $85.0 million. The amendment also increased sub-limits relating to the Company’s ability to borrow against in-transit inventory as well as inventory located in the Company’s Mexico facilities.

In addition, the Company and certain of its subsidiaries, have been or are parties to other long-term credit agreements, including the Senior Term Loan Credit Agreement, as defined and described below. As of June 30, 2021, there was $100.0 million outstanding on the Senior Term Loan Credit Agreement bearing cash interest at 7.50%.

In February 2017, the Company completed a public offering of 2.75% Convertible Senior Notes due 2022 (the “Convertible Notes”) in an aggregate principal amount of $125.0 million. Interest is payable on January 1 and July 1 of each year.

First Lien Term Loan Agreement and Second Lien Term Loan Agreement

In March 2019, the Company amended and restated the existing term loan agreement (the “First Lien Term Loan Agreement”) to permit the Company to, among other things, enter into the Second Lien Term Loan Agreement, as defined and described below.

In March 2019, the Company entered into a credit agreement (the “Second Lien Term Loan Agreement”) with Cortland Capital Markets Services LLC, as administrative agent and collateral agent, and Corre Partners Management L.L.C., as representative of the lenders, and the lenders party thereto.

In May 2020, the Company entered into amendments, limited waivers and consents in connection with the Loan Agreement governing its Revolving Credit Facility, the First Lien Term Loan Agreement, and the Second Lien Term Loan Agreement, each with an effective date of April 1, 2020, that, among other things, consented to the Company’s applying for, obtaining and incurring the PPP Loan and French Loan, each as defined and described above.

As a result of the Replacement Term Loan Amendment, as defined and described below, the outstanding balance and any accrued interest under the First Lien Term Loan Agreement and Second Lien Term Loan Agreement was replaced by the Replacement Term Loan, as defined and described below.

Replacement Term Loan

In July 2020, the Company entered into a limited consent to the Loan Agreement governing its Revolving Credit Facility and the Replacement Term Loan Amendment (the “Eleventh Term Amendment”) to amend the First Lien Term Loan Agreement and Second Lien Term Loan Agreement. The Eleventh Term Amendment provided replacement term loans (the “Replacement Term Loan”) that refinanced and replaced the outstanding balances under the First Lien Term Loan Agreement and Second Lien Term Loan Agreement, plus any accrued interest thereon.

In February 2021, the Company entered into the Senior Term Loan Credit Agreement, as defined and described below. The proceeds received from the initial borrowings under the Senior Term Loan Credit Agreement were used to repay in full all outstanding debt and accrued interest on the Company’s Replacement Term Loan. As a result of the repayment, the credit agreement governing the Company’s Replacement Term Loan was terminated and is no longer in effect.

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Senior Term Loan Credit Agreement

On February 2, 2021, the Company entered into a credit agreement (the “Senior Term Loan Credit Agreement”) with Atlantic Park Strategic Capital Fund, L.P. (“Atlantic Park”), as administrative agent and collateral agent, and the lenders party thereto (collectively, the “Lenders”). The Senior Term Loan Credit Agreement provides for an initial term loan facility in the aggregate principal amount of $100.0 million, all of which has been borrowed by the Company and used to repay the Replacement Term Loan, as described above, and a delayed draw term loan facility in the aggregate principal amount of up to $125.0 million, which may be drawn by the Company in up to three separate borrowings through June 30, 2022. A ticking fee of 25 basis points per annum will accrue on the undrawn portion of the delayed draw term loan facility.

Interest on the Senior Term Loan Credit Agreement is payable in cash on a quarterly basis at the interest rate of LIBOR plus 7.50% per annum, subject to a 1.00% LIBOR floor. The Senior Term Loan Credit Agreement includes customary affirmative and negative covenants, including a maximum total net leverage ratio requirement tested quarterly, commencing with the fiscal quarter ending March 31, 2023, not to exceed: 6.50 to 1.00. The Senior Term Loan Credit Agreement also contains a financial covenant that stipulates the Company will not make capital expenditures exceeding $27.5 million during any fiscal year. To the extent that the amount of capital expenditures is less than $27.5 million in any fiscal year, up to 50% of the difference may be carried forward and used for capital expenditures in the immediately succeeding fiscal year.

Following a one-year no-call period, the Senior Term Loan Credit Agreement provides for a 2.5% call premium for years two through five and no premium thereafter. All outstanding borrowings under the Senior Term Loan Credit Agreement mature on February 2, 2027.

All of the indebtedness under the Senior Term Loan Credit Agreement is and will be guaranteed by the Company’s existing and future United States, Canadian and Mexican subsidiaries and certain other foreign subsidiaries and is and will be secured by substantially all of the assets of the Company and such guarantors.

Covenant and Liquidity Matters

The Loan Agreement governing our Revolving Credit Facility contains various negative and affirmative covenants and other requirements affecting us and our subsidiaries, including restrictions on incurrence of debt, liens, mergers, investments, loans, advances, guarantee obligations, acquisitions, asset dispositions, sale-leaseback transactions, hedging agreements, dividends and other restricted payments, transactions with affiliates, restrictive agreements and amendments to charters, bylaws, and other material documents. The Revolving Credit Facility does not include any financial maintenance covenants other than a financial covenant that stipulates the Company will not make capital expenditures exceeding $30.0 million during any fiscal year.

We are subject to variable interest rates on our Senior Term Loan Credit Agreement and Revolving Credit Facility. At June 30, 2021, 1-Month LIBOR and 3-Month LIBOR approximated 0.10% and 0.15%, respectively.

The Company is in compliance with all of its financial covenants as of June 30, 2021.

In addition to our long-term debt, we have other cash commitments related to leases. We account for these lease transactions as operating leases and rent expense related thereto for the six months ended June 30, 2021 and 2020 was $7.6 million and $7.2 million, respectively. We expect to continue to utilize leasing as a financing strategy in the future to meet capital expenditure needs and to reduce debt levels.

Refer to Note 8, Long-term Debt, and Note 9, Leases, in Part I, Item 1, “Notes to Condensed Consolidated Financial Statements,” included within this Quarterly Report on Form 10-Q for additional information.

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Consolidated EBITDA

Consolidated EBITDA (defined as “Consolidated EBITDA” in our Senior Term Loan Agreement) is a comparable measure to how the Company assesses performance. As discussed further in the Segment Information and Supplemental Analysis section above, we use certain non-GAAP financial measures to assess performance and measure our covenant compliance in accordance with the Senior Term Loan Agreement, which includes Adjusted EBITDA at the operating segment level. For the measurement of our Senior Term Loan Agreement financial covenants, the definition of Consolidated EBITDA limits the amount of non-recurring expenses or costs including restructuring, moving and severance that can be excluded to $10 million in any cumulative four fiscal quarter period. Similarly, the definition limits the amount of fees, costs and expenses incurred in connection with any proposed asset sale, offering of equity interests or any indebtedness, lender agent fees, and fees in connection with the maintenance and/or forgiveness of the PPP Loan, in aggregate, that can be excluded to $8 million in any cumulative four fiscal quarter period.

The reconciliations of net income (loss) attributable to Horizon Global to EBITDA, EBITDA to Adjusted EBITDA and Adjusted EBITDA to Consolidated EBITDA are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,						Last Twelve Months Ended June 30,
	2021		2020		Change		2021		2020		Change		2021		2020		Change
	(dollars in thousands)						(dollars in thousands)						(dollars in thousands)
Net income (loss) attributable to Horizon Global	$	1,290	$	(16,340)	$	17,630	$	(13,520)	$	(33,080)	$	19,560	$	(17,000)	$	80,720	$	(97,720)
Net loss attributable to noncontrolling interest	(330)		(380)		50		(670)		(670)		—		(1,420)		(1,320)		(100)
Net income (loss)	$	960	$	(16,720)	$	17,680	$	(14,190)	$	(33,750)	$	19,560	$	(18,420)	$	79,400	$	(97,820)
Interest expense	6,980		8,220		(1,240)		14,030		16,410		(2,380)		29,300		48,530		(19,230)
Income tax expense (benefit)	1,400		80		1,320		2,400		70		2,330		750		(9,320)		10,070
Depreciation and amortization	5,220		5,470		(250)		10,720		10,530		190		23,100		21,680		1,420
EBITDA	$	14,560	$	(2,950)	$	17,510	$	12,960	$	(6,740)	$	19,700	$	34,730	$	140,290	$	(105,560)
Net loss attributable to noncontrolling interest	330		380		(50)		670		670		—		1,420		1,320		100
Loss (income) from discontinued operations, net of tax	—		—		—		—		500		(500)		—		(182,240)		182,240
EBITDA from continuing operations	$	14,890	$	(2,570)	$	17,460	$	13,630	$	(5,570)	$	19,200	$	36,150	$	(40,630)	$	76,780
Adjustments pursuant to Senior Term Loan Agreement:
Losses on sale of receivables	270		250		20		500		540		(40)		1,370		1,170		200
Debt extinguishment losses	—		—		—		11,650		—		11,650		11,650		—		11,650
Non-cash equity grant expenses	850		900		(50)		1,710		1,320		390		3,390		2,500		890
Other non-cash expenses or losses	1,790		220		1,570		3,920		1,750		2,170		1,360		1,210		150
Term Loans related fees, costs and expenses	—		—		—		—		—		—		—		(120)		120
Lender agent related professional fees, costs, and expenses(a)	90		270		(180)		100		380		(280)		100		320		(220)
Non-recurring expenses or costs(b)	130		970		(840)		(820)		4,480		(5,300)		110		17,080		(16,970)
Non-cash losses on asset sales	10		20		(10)		10		90		(80)		10		1,240		(1,230)
Other	(10)		(20)		10		(30)		(20)		(10)		(30)		660		(690)
Adjusted EBITDA	$	18,020	$	40	$	17,980	$	30,670	$	2,970	$	27,700	$	54,110	$	(16,570)	$	70,680
Non-recurring expense limitation(a)(b)	N/A		N/A		N/A		N/A		N/A		N/A		N/A		(7,080)		7,080
Other	10		20		(10)		30		20		10		30		(660)		690
Consolidated EBITDA	$	18,030	$	60	$	17,970	$	30,700	$	2,990	$	27,710	$	54,140	$	(24,310)	$	78,450

(a) Fees, costs and expenses incurred in connection with any proposed asset sale, offering of equity interests or any indebtedness, lender agent fees, and fees in connection with the maintenance and/or forgiveness of the PPP Loan are not to, in aggregate, exceed $8 million in adjustments in determining Consolidated EBITDA in any four fiscal quarter period.

(b) Non-recurring expenses or costs including restructuring, moving and severance are not to, in aggregate, exceed $10 million in adjustments in determining Consolidated EBITDA in any four fiscal quarter period.

Credit Rating

The Company’s debt agreements do not require that we maintain a credit rating.

48

Outlook

Our business remains susceptible to economic conditions that could adversely affect our results, including potential negative impacts of the COVID-19 pandemic. The trend of customer orders in the economies that most significantly affect our demand has been strong, including the United States and Europe. However, we have experienced rising pricing to certain raw materials, including steel, and while the Company endeavors to recover incremental input costs through pricing actions, the recoveries generally occur over time and are not guaranteed. In addition, recent macroeconomic factors, such as constraints on shipping container availability, port congestion and the global microchip shortage have resulted in a delay of receiving raw materials by the Company or some of our OE customers, which has resulted in retiming some customer orders to future periods. We continue to monitor these supply constraints and remain committed to fulfilling and delivering our customers’ orders driven by the strong product demand we have experienced.

We also remain focused on maintaining liquidity to fund our operations, while considering future maturities in our capital structure, which have been addressed and will continue to be addressed as the Company continues to execute upon its business plan and operational improvement initiatives in 2021. These initiatives were put in place to streamline and simplify its operations and provide a roadmap to achieve our strategic priorities of margin expansion, liquidity management and organic business growth.

We believe the unique strategic footprint we enjoy in our market space will benefit us as our OE customers continue to demonstrate a preference for stronger relationships with few suppliers. We believe that our strong brand positions, portfolio of product offerings, and existing customer relationships present a long-term opportunity for us and provide leverage to see balanced growth in OE, aftermarket and retail businesses. That position and brand recognition allows us flexibility to bring our products to market in various channels that we believe provide us the ability to leverage our current operational footprint to meet or exceed our customer demands.

Impact of New Accounting Standards

See Note 2, New Accounting Pronouncements, included in Part I, Item 1, “Notes to Condensed Consolidated Financial Statements,” within this Quarterly Report on Form 10-Q.

Critical Accounting Policies

Our condensed consolidated financial statements are prepared in accordance with U.S. GAAP. Certain of our accounting policies require the application of significant judgment by management in selecting the appropriate assumptions for calculating financial estimates that affect both the amounts and timing of the recording of assets, liabilities, net sales and expenses. By their nature, these judgments are subject to an inherent degree of uncertainty. These judgments are based on our historical experience, our evaluation of business and macroeconomic trends, and information from other outside sources, as appropriate.

There were no material changes to the items that we disclosed as our critical accounting policies in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the twelve months ended December 31, 2020.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

49

Item 4. Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Evaluation of disclosure controls and procedures

As of June 30, 2021, an evaluation was carried out by management, with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) pursuant to Rule 13a-15 of the Exchange Act. The Company’s disclosure controls and procedures are designed only to provide reasonable assurance that they will meet their objectives. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2021, the Company’s disclosure controls and procedures are effective to provide reasonable assurance that they would meet their objectives.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the three months ended June 30, 2021, that have materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

50

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are subject to claims and litigation in the ordinary course of business, but we do not believe that any such claim or litigation is likely to have a material adverse effect on our financial position, results of operations, or cash flows. For additional information regarding legal proceedings, refer to Note 10, Contingencies, included in Part I, Item 1, “Notes to Condensed Consolidated Financial Statements,” within this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors

A discussion of our risk factors, which could materially affect our business, financial condition or future results, can be found in the section entitled “Risk Factors,” in our Annual Report on Form 10-K for the twelve months ended December 31, 2020. There have been no significant changes in our risk factors disclosed in our 2020 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

51

Item 6. Exhibits.

Exhibits Index:

3.1(b)	Amended and Restated Certificate of Incorporation of Horizon Global Corporation, as amended.
3.2(a)	Amended and Restated By-laws of Horizon Global Corporation.
10.1*	Fourth Amendment to Loan and Security Agreement dated April 19, 2021, by and among Horizon Global Americas Inc. and Cequent Towing Products of Canada Ltd., as borrowers, Horizon Global Corporation, Horizon Global Company LLC, Cequent Electrical Products de Mexico, S. de R.L. de C.V., and Cequent Sales Company de Mexico, S. de R.L. de C.V., as guarantors, the lenders party thereto and Encina Business Credit, LLC, as agent for the Lenders.
31.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document. (not part of filing)
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

(a)	Incorporated by reference to the Exhibit filed with our Current Report on Form 8-K filed on February 20, 2019 (File No. 001-37427).
(b)	Incorporated by reference to the Exhibit filed with our Quarterly Report on Form 10-Q filed on August 8, 2019 (File No. 001-37427).

* Certain exhibits and schedules are omitted pursuant to Item 601(a)(5) of Regulation S-K, and the Company agrees to furnish supplementally to the Securities and Exchange Commission a copy of any omitted exhibits and schedules upon request.

52

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		HORIZON GLOBAL CORPORATION (Registrant)
			/s/ DENNIS E. RICHARDVILLE
Date:	August 3, 2021	By:	Dennis E. Richardville Chief Financial Officer

53

EX-10.1

Exhibit 10.1

FOURTH AMENDMENT

TO LOAN AND SECURITY AGREEMENT

This Fourth Amendment to Loan and Security Agreement (this “Fourth Amendment”) is made this 19th day of April, 2021, by and among HORIZON GLOBAL AMERICAS INC., a Delaware corporation (“Horizon Americas”), CEQUENT TOWING PRODUCTS OF CANADA LTD., a company formed under the laws of the Province of Ontario ("Cequent Canada"; together with Horizon Americas, each a "Borrower" and collectively the “Borrowers”), HORIZON GLOBAL CORPORATION, a Delaware corporation (“Parent”), HORIZON GLOBAL COMPANY LLC, a Delaware limited liability company (“Horizon Global”) CEQUENT ELECTRICAL PRODUCTS DE MÉXICO, S. de R.L. de C.V., a Mexican limited liability company (sociedad de responsabilidad limitada de capital variable) (“Cequent Electrical MX”), CEQUENT SALES COMPANY DE MÉXICO, S. de R.L. de C.V., a Mexican limited liability company (sociedad de responsabilidad limitada de capital variable) (“Cequent Sales MX”,and together with Parent, Horizon Global and Cequent Electrical MX, each a "Guarantor" and collectively the “Guarantors”; the Borrowers and Guarantors are referred to herein as, collectively, jointly and severally, the “Loan Parties” and each a “Loan Party”), the Lenders party hereto and ENCINA BUSINESS CREDIT, LLC, as agent for the Lenders (in such capacity, the "Agent").

BACKGROUND

A.The Loan Parties, Lenders and the Agent entered into that certain Loan and Security Agreement dated as of March 13, 2020 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) to reflect certain financing arrangements between the parties thereto.The Loan Agreement, as in effect immediately prior to the date hereof, and all other Loan Documents executed in connection therewith prior to the date hereof are collectively referred to as the “Existing Financing Agreements”.

B.The Loan Parties have informed the Agent that the Loan Parties desire to make certain modifications to the Loan Agreement, and, subject to the terms and conditions of this Fourth Amendment, the Lenders and the Agent have agreed to amend certain provisions of the Loan Agreement as set forth herein.

NOW THEREFORE, with the foregoing background hereinafter deemed incorporated by reference herein and made a part hereof, the parties hereto, intending to be legally bound, promise and agree as follows:

1.Defined Terms.Capitalized terms used herein but not otherwise defined herein shall have the meanings attributed thereto in the Loan Agreement, as amended by this Fourth Amendment.

2.Amendments to Loan Agreement. Subject to the satisfaction (or waiver) of the conditions precedent specified in Section 4 below:

(a)the Loan Agreement (including the Annexes attached thereto) is hereby amended in its entirety to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined text) as set forth in the changed pages to the conformed Loan Agreement attached as Annex I hereto; and

(b)Exhibit H to the Loan Agreement, the Form of Borrowing Base Certificate, is hereby amended be deleting said exhibit in its entirety and replacing it with the corresponding exhibit set forth in Annex II attached hereto.

10176272v2

3.Representations and Warranties.Each Loan Party hereby:

(a)after giving effect to this Fourth Amendment, reaffirms all representations and warranties made to the Lenders and the Agent under the Loan Agreement and all of the other Existing Financing Agreements and represents and warrants that after giving effect to this Fourth Amendment and the transactions contemplated hereby all such representations and warranties are true and correct in all material respects (unless otherwise qualified by materiality or the occurrence of a Material Adverse Effect, in which case such representation and warranty is true and correct in all respects) on and as of the date hereof (or, to the extent any representations or warranties are expressly made solely as of an earlier date, such representations and warranties are true and correct as of such earlier date);

(b)as of the date hereof, reaffirms all covenants contained in the Loan Agreement (as amended hereby) and all of the other Existing Financing Agreements and covenants to comply with all such covenants until the Termination Date; and

(c)as of the date hereof, represents and warrants that:

(i)no Default or Event of Default has occurred and is continuing under the Loan Agreement or any of the other Existing Financing Agreements;

(ii)such Loan Party has all requisite power and authority to execute and deliver, and to perform all of its obligations under, this Fourth Amendment;

(iii)the execution, delivery and performance by such Loan Party of this Fourth Amendment have been duly and validly authorized and do not violate such Loan Party's Governing Documents or any law or any material agreement or instrument (including, without limitation, the Term Loan Agreement) or any court order which is binding upon such Loan Party or its property, do not constitute grounds for acceleration of any Indebtedness or obligation under any material agreement or instrument which is binding upon such Loan Party or its property, and do not require the consent of any Person (including, without limitation, the Term Loan Agent);

(iv)this Fourth Amendment has been duly executed and delivered by, and is enforceable against, each of the Loan Parties party hereto, in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles; and

(v)no Loan Party is required to obtain any government approval, consent, or authorization from, or to file any declaration or statement with, any Governmental Authority in connection with or as a condition to the execution, delivery or performance of this Fourth Amendment.

4.Conditions Precedent. This Fourth Amendment shall become effective on the date on which the following conditions have been fulfilled to the satisfaction of the Agent (the “Fourth Amendment Effective Date”):

(a)each of the following documents shall be duly executed by all parties thereto and delivered to the Agent, in form and substance satisfactory to the Agent, and each such document shall be in full force and effect:

(i)this Fourth Amendment;

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(ii)an amended and restated Revolving Note in favor of the Lender; and

(iii)the Amendment Fee Letter.

(b)the Borrowers shall have paid to the Agent all fees due on the Fourth Amendment Effective Date and shall have paid or reimbursed Agent for all of Agent's costs, charges and expenses incurred through the Fourth Amendment Effective Date for which invoices have been presented to the Loan Parties prior to the date hereof payable to the extent required by Section 15.7 of the Loan Agreement (including, without limitation, reasonable and documented attorneys’ fees and expenses incurred in connection with the preparation, negotiation and execution of this Fourth Amendment and the documents provided for herein or related hereto); and

(c)after giving effect to this Fourth Amendment, all representations and warranties contained in Section 3 above shall be true and correct in all respects.

5.Further Assurances. Each Loan Party hereby agrees to take all such actions and to execute and/or deliver to the Agent all such documents, assignments, financing statements and other documents, as the Agent may reasonably require from time to time, to effectuate and implement the purposes of this Fourth Amendment.

6.Reaffirmation of Loan Documents; No Novation. Each Loan Party, as debtor, grantor, pledgor, guarantor, assignor, or in other any other similar capacity in which such Loan Party grants liens or security interests in its property or otherwise acts as accommodation party or guarantor, as the case may be, hereby (i) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under each of the Loan Documents to which it is a party and (ii) to the extent such Loan Party granted liens on or security interests in any of its property pursuant to any such Loan Document as security for or otherwise guaranteed any Obligations, ratifies and reaffirms such guarantee and grant of security interests and liens and confirms and agrees that such security interests and liens hereafter secure all of such Obligations as amended hereby. Each Loan Party hereby consents to this Fourth Amendment and acknowledges that each of the Loan Documents remains in full force and effect and is hereby ratified and reaffirmed.The execution of this Fourth Amendment shall not serve to effect a novation of any Indebtedness under the Loan Documents or any other Obligations.

7.No Modification. Except as expressly set forth herein, nothing contained in this Fourth Amendment shall be deemed to constitute a waiver of compliance with any term or condition contained in the Loan Agreement or any other Loan Document or constitute a course of conduct or dealing among the parties.Except as expressly stated herein, the Agent reserves all rights, privileges and remedies under the Loan Documents. Except as amended or consented to hereby, the Loan Agreement and other Loan Documents remain unmodified and in full force and effect.All references in the Loan Documents to the Loan Agreement shall be deemed to be references to the Loan Agreement as modified hereby.

8.Release of Claims. In consideration of the Agent’s and Lenders’ agreements contained in this Fourth Amendment, each Loan Party hereby irrevocably releases and forever discharges the Agent, Lenders and their respective affiliates, subsidiaries, successors, assigns, directors, officers, employees, agents, consultants and attorneys (each, a “Released Person”) of and from any and all claims, suits, actions, investigations or proceedings, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute or common law of any kind or character, known or unknown, which such Loan Party ever had or now has against the Agent, any Lender or any other Released Person which relates, directly or indirectly, to any acts or omissions of the Agent or any other Released Person relating to the Loan Agreement or any other Loan Document on or prior to the date hereof.

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9.Miscellaneous.

(a)Headings; Construction. Section and subsection headings are used in this Fourth Amendment only for convenience and do not affect the meanings of the provisions that they precede.

(b)Modifications. No modification hereof or of any agreement referred to herein shall be binding or enforceable unless in writing and signed on behalf of the party against whom enforcement is sought.

(c)Governing Law; Loan Document. THIS FOURTH AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED THEREIN WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES. FURTHER, THE LAW OF THE STATE OF NEW YORK SHALL APPLY TO ALL DISPUTES OR CONTROVERSIES ARISING OUT OF OR CONNECTED TO OR WITH THIS FOURTH AMENDMENT WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES. This Fourth Amendment is a Loan Document and is subject to and has the benefit of all the provisions in the Loan Agreement applicable to Loan Documents.

(d)Counterparts; Fax/Email Signatures. This Fourth Amendment may be executed in any number of counterparts, all of which shall constitute one and the same agreement.This Fourth Amendment may be executed by signatures delivered by facsimile or electronic mail, each of which shall be fully binding on the signing party.

[Signature Pages Follow]

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10176272v2

IN WITNESS WHEREOF,the parties have caused this Fourth Amendment to be executed and delivered by their duly authorized officers as of the date first above written.

HORIZON GLOBAL AMERICAS INC.,

as a Borrower

By: /s/ Jay Goldbaum                

Name: Jay Goldbaum

Title: Vice President and Secretary

CEQUENT TOWING PRODUCTS OF CANADA LTD., as a Borrower

By: /s/ Jay Goldbaum                

Name: Jay Goldbaum

Title: Vice President and Secretary    

HORIZON GLOBAL CORPORATION,

as a Guarantor

By: /s/ Jay Goldbaum                

Name: Jay Goldbaum

Title: Vice President and Secretary

HORIZON GLOBAL COMPANY LLC,

as a Guarantor

By: /s/ Jay Goldbaum                

Name: Jay Goldbaum

Title: Vice President and Secretary    

CEQUENT ELECTRICAL PRODUCTS DE MÉXICO, S. DE R.L. DE C.V., as a Guarantor

By: /s/ Jay Goldbaum                

Name:     Jay Goldbaum

Title:     Legal Representative

CEQUENT SALES COMPANY DE MÉXICO, S. DE R.L. DE C.V., as a Guarantor

By: /s/ Jay Goldbaum                

Name:     Jay Goldbaum

Title:     Legal Representative

[Signature Page to Fourth Amendment to Loan and Security Agreement]

ENCINA BUSINESS CREDIT, LLC, as Agent

By: /s/ Brian Hynds

Name:    Brian Hynds

Title:    Authorized Signatory

ENCINA BUSINESS CREDIT SPV, LLC,

as a Lender

By: /s/ Brian Hynds

Name:    Brian Hynds

Title:    Authorized Signatory    

[Signature Page to Fourth Amendment to Loan and Security Agreement]

Annex I

Conformed Loan Agreement

(changed pages only)

See attached.

Conformed through ThirdFourthAmendment

LOAN AND SECURITY AGREEMENT

Dated as of March 13, 2020 by and among

HORIZON GLOBAL AMERICAS INC. AND

CEQUENT TOWING PRODUCTS OF CANADA, LTD.,

any other Borrower party hereto from time to time, as Borrowers,

HORIZON GLOBAL CORPORATION AND HORIZON GLOBAL COMPANY LLC

any other Guarantor party hereto from time to time, as Guarantors,

any other Loan Party party hereto from time to time, as Loan Parties,

the Lenders from time to time party hereto, and

ENCINA BUSINESS CREDIT, LLC,

as Agent

10068325v7 10176250v4

TABLE OF CONTENTS

			Page
1.	DEFINITIONS		1
	1.1	Certain Defined Terms	1
	1.2	Accounting Terms and Determinations	29
	1.3	Other Definitional Provisions and References	30
	1.4	Interpretation (Québec)	30
	1.5	Interpretation (Mexico)	31
2.	LOANS		31
	2.1	Amount of Loans	31
	2.2	Protective Advances; Overadvances	33
	2.3	Notice of Borrowing; Manner of Revolving Loan Borrowing	34
	2.4	Swingline Loans	35
	2.5	Repayments	36
	2.6	Prepayments / Voluntary Termination / Application of Prepayments	36
	2.7	Obligations Unconditional	37
	2.8	Reversal of Payments	38
	2.9	Notes	38
	2.10	Defaulting Lenders	38
	2.11	Appointment of Borrower Representative	39
	2.12	Joint and Several Liability	39
	2.13	Other Provisions Applicable to Letters of Credit	41
	2.14	Separate Letter of Credit Facility	42
3.	INTEREST AND FEES; LOAN ACCOUNT		42
	3.1	Interest	42
	3.2	Fees	42
	3.3	Computation of Interest and Fees	44
	3.4	Loan Account; Monthly Accountings	44
	3.5	Further Obligations; Maximum Lawful Rate	44
	3.6	Certain Provisions Regarding LIBOR Loans; Replacement of Lenders	45
4.	CONDITIONS PRECEDENT		46
	4.1	Conditions to Initial Loans/Letters of Credit	46
	4.2	Conditions to all Loans and/or Letters of Credit	46
5.	COLLATERAL		47
	5.1	Grant of Security Interest	47
	5.2	Possessory Collateral	48
	5.3	Further Assurances	48
	5.4	UCC Financing Statements	49
6.	CERTAIN PROVISIONS REGARDING ACCOUNTS, INVENTORY, COLLECTIONS AND APPLICATIONS OF PAYMENTS		49
	6.1	Lock Boxes and Blocked Accounts	49
	6.2	Application of Payments	50
	6.3	Notification; Verification	50
	6.4	Power of Attorney	51

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10176250v4

Loan and Security Agreement

This Loan and Security Agreement (as it may be amended, restated, supplemented or otherwise modified from time to time, this "Agreement") is entered into on March 13, 2020, by and among HORIZON GLOBAL AMERICAS INC., a Delaware corporation (“Horizon Americas”), CEQUENT TOWING PRODUCTS OF CANADA, LTD., a company formed under the laws of the Province of Ontario ("Cequent Canada"; together with Horizon Americas, each a "Borrower" and together with any other Borrower party hereto from time to time, collectively the "Borrowers"), HORIZON GLOBAL CORPORATION, a Delaware corporation (“Parent”), HORIZON GLOBAL COMPANY LLC, a Delaware limited liability company (“Horizon Global”) CEQUENT ELECTRICAL PRODUCTS DE MÉXICO, S. DE R.L. DE C.V., a Mexican limited liability company (sociedad de responsabilidad limitada de capital variable) (“Cequent Electrical MX”), CEQUENT SALES COMPANY DE MÉXICO, S. DE R.L. DE C.V., a Mexican limited liability company (sociedad de responsabilidad limitada de capital variable) (“Cequent Sales MX”, and together with Parent, Horizon Global and Cequent Electrical MX, each a “Guarantor” and together with any other Guarantor party hereto from time to time, collectively the “Guarantors”) and together with any other Loan Party party hereto from time to time, as Loan Parties (as defined herein), the Lenders party hereto from time to time and ENCINA BUSINESS CREDIT, LLC, as agent for the Lenders (in such capacity, "Agent"). The Annexes, Exhibits and Schedules to this Agreement, as well as the Perfection Certificate attached to this Agreement, are an integral part of this Agreement and are incorporated herein by reference.

1.DEFINITIONS.

1.1        Certain Defined Terms.

Unless otherwise defined herein, the following terms are used herein as defined in the UCC from time to time: Accounts, Account Debtor, As-Extracted Collateral, Certificated Security, Chattel Paper, Commercial Tort Claims, Debtor, Deposit Accounts, Documents, Electronic Chattel Paper, Equipment, Farm Products, Financing Statement, Fixtures, General Intangibles, Goods, Health-Care-Insurance Receivables, Instruments, Inventory, Letter-of-Credit Rights, Money, Payment Intangible, Proceeds, Secured Party, Securities Accounts, Security Agreement, Supporting Obligations and Tangible Chattel Paper; provided, however, that (a) as such terms relate to any Collateral of any Canadian Borrower, such terms shall refer to such Collateral as defined in the PPSA, to the extent applicable and (b) as such terms relate to any such Collateral encumbered by or to be encumbered by a Mexican Security Document, such terms shall have the meanings assigned to them in such Mexican Security Document, to the extent applicable.

As used in this Agreement, the following terms have the following meanings:

“ABL Priority Collateral” means as defined in the Intercreditor Agreement (it being understood and agreed that any time the Term Loan Debt is not in effect, the term “ABL Priority Collateral” shall mean all Collateral).

"ABLSoft" means the electronic and/or internet-based system approved by Agent for the purpose of making notices, requests, deliveries, communications and for the other purposes contemplated in this Agreement or otherwise approved by Agent, whether such system is owned, operated or hosted by Agent, any of its Affiliates or any other Person.

1

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10176250v4

“ABN AMRO Factoring Agreement” means the Factoring Agreement, dated as of June 5, 2012, between Westfalia-Automotive GmbH and ABN AMRO Commercial Finance GmbH, as amended, restated, supplemented or otherwise modified from time to time.

"Accounts Advance Rate" means the percentage set forth in Section 1(b)(i) of Annex I.

"Advance Rates" means, collectively, the Accounts Advance Rate and the Inventory Advance Rate.

"Affiliate" means, with respect to any Person, any other Person in control of, controlled by, or under common control with the first Person, and any other Person who has a substantial interest, direct or indirect, in the first Person or any of its Affiliates, including, any officer or director of the first Person or any of its Affiliates (and if that Person is an individual, any member of the immediate family (including parents, siblings, spouse, children, stepchildren, nephews, nieces and grandchildren) of such individual and any trust whose principal beneficiary is such individual or one or more members of such immediate family and any Person who is controlled by any such member or trust); provided, that neither Agent, any Lender nor any of their respective Affiliates shall be deemed an "Affiliate" of any Borrower for any purposes of this Agreement. For the purpose of this definition, a "substantial interest" shall mean the direct or indirect legal or beneficial ownership of more than ten (10%) percent of any class of equity or similar interest.

"Agent" has the meaning set forth in the preamble to this Agreement, and includes any successor agent appointed in accordance with Section 14.6.

"Agent Fee Letter"meansthatcertainfeeletteragreementdatedasoftheClosing DatebetweenAgentandBorrowers.

"Agent-Related Persons" means Agent, together with its Affiliates, officers, directors, employees, members, managers, attorneys, and agents.

"Agent Professionals" means attorneys, accountants, appraisers, auditors, business valuation experts, liquidation agents, collection agencies, auctioneers, environmental engineers or consultants, turnaround consultants, and other professionals and experts retained by Agent.

"Agreement" and "this Agreement" has the meaning set forth in the preamble to this Agreement.

"Anti-Corruption Laws" meanslaws, rules, and regulations of any jurisdiction applicable to any Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.

"Applicable Margin" has the meaning set forth in Section 3(a) of Annex I.

"Applicable Percentage" has the meaning set forth in Section 3.2(e)(i).

"Approved Electronic Communication" means each notice, demand, communication, information, document and other material transmitted, posted or otherwise made or communicated by e-mail, facsimile, ABLSoft or any other equivalent electronic service, whether owned, operated or hosted by Agent, any of its Affiliates or any other Person, that any party is obligated to, or otherwise chooses to, provide to Agent pursuant to this Agreement or any other Loan Document, including any

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"Existing Credit Agreement" means the Amended and Restated Loan Agreement, dated as of December 22, 2015, by and among the Obligors (as defined therein), the several banks and other financial institutions or entities party thereto, Bank of America, N.A., as Administrative Agent, and the other parties thereto, as amended, restated, supplemented, otherwise modified from time to time.

"FATCA" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with) and any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

“Fee Letter” means that certain fee letter, dated the Closing Date, among the Borrowers and the Agent, as amended, restated, supplemented or otherwise modified from time to time.

"FIRREA" means the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended.

"Fiscal Year" means the fiscal year of Borrowers which ends on December 31 of each

year.

"Fixed Charge Coverage Ratio" means, for the period in question, the ratio of (a) EBITDA minus unfinanced Capital Expenditures of the Financial Covenant Parties on a consolidated basis for such period, to (b) Fixed Charges for such period.

"Fixed Charges" means, for the period in question, on a consolidated basis, the sum of

(a) all principal payments scheduled to be made during or with respect to such period in cash in respect of Indebtedness of the Financial Covenant Parties, plus (b) all Interest Expense of the Financial Covenant Parties for such period paid in cash attributable to such period, plus (c) all taxes of the Financial Covenant Parties paid in cash for such period and plus (d) all cash distributions (including Permitted Tax Distributions, if applicable), dividends, redemptions and other cash payments made with respect to equity securities or subordinated debt issued by the Financial Covenant Parties, minus (e) all cash investments made in cash by any Loan Party to any Subsidiary of Parent that is not a Loan Party to the extent permitted under clauses (b) and (c) of the definition of Permitted Investment.

"Foreign Subsidiary" means any Subsidiary that is not a Loan Party organized or incorporated under the laws of a jurisdiction of the United States, any State thereof, or the District of Columbia or Canada.

"FRB" means the Board of Governors of the Federal Reserve System or any successor thereto.

"Funding Account" has the meaning set forth in Section 2.3(b).

"GAAP" means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting

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(i)(i)Provided no Default or Event of Default then exists, at any time during the period from and after the Closing Date through the secondanniversary of the Closing Date, the Borrower Representative may request from time to time (but subject to the conditions set forth in clause (c)(v) below) that the Maximum Revolving Facility Amount be increased by an amount in the aggregate for all such increases of the Maximum Revolving Facility Amount not to exceed the Available Increase Amount (each such increase, an “Increase”); provided, that (i) any such request for an Increase shall be in a minimum amount of $5,000,000, (ii) Borrowers may make a maximum of fivefour(54) such requests and (iii) after giving effect thereto, the sum of the total of the Increases does not exceed $25,000,000.15,000,000. At the time of sending such notice, the Borrower Representative (in consultation with the Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten (10) Business Days from the date of delivery of such notice to the Lenders).

(ii)The Agent shall notify the Borrower Representative and each Lender of the Lenders’ responses to each request made hereunder.

(iii)Each Lender shall notify the Agent within such time period whether or not it agrees to increase its Revolving Loan Commitment and, if so, whether by an amount equal to, greater than, or less than its Pro Rata Share of such requested increase. Any Lender not responding within such time period shall be deemed to have declined to increase its Revolving Loan Commitment, and no Lender shall be required to so increase its Revolving Loan Commitment hereunder.

(iv)If the Maximum Revolving Facility is increased in accordance with this Section, the Agent, in consultation with the Borrower Representative, shall determine the effective date and the final allocation of such increase. The Agent shall promptly notify the Borrower Representative and the Lenders of the final allocation of such increase and the date of such increase; on such date, the (i) the Maximum Revolving Commitment under, and for all purposes of, this Agreement shall be increased by the aggregate amount of such Commitment Increases, and (ii) Annex III shall be deemed modified, without further action, to reflect the revised Revolving Loan Commitment and Pro Rata Share of the Lenders.

(v)Each of the following shall be conditions precedent to any Increase of the Maximum Revolving Facility Amount:

(A)each of the conditions precedent set forth in Section 4.2 is satisfied;

(B)Borrowers shall have paid Agent an additional closing fee specified in the Fee Letter; and

(C)Borrower Representative shall deliver to Agent (i) a certificate of each Loan Party signed by an authorized officer of such Loan Party (A) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such Increase, and (B) in the case of each Borrower, certifying that, before and after giving effect to such Increase, (1) the representations and warranties contained in Section 7 and the other Loan Documents are true and correct, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, (2) no Default or Event of Default exists and (3) Borrowers are in compliance (on a pro forma basis) with the covenants contained in Section 9 and (ii) legal opinions and documents consistent with those delivered on the Closing Date, to the extent requested by Agent.

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IN WITNESS WHEREOF, each Borrower, each other Loan Party party hereto, Agent and each Lender have signed this Agreement as of the date first set forth above.

Agent:

ENCINA BUSINESS CREDIT, LLC

By:

Name:    __________________________________

Its:    Authorized Signatory

Lenders:

ENCINA BUSINESS CREDIT SPV, LLC

By:

Name:    ___________________________________

Its:    Authorized Signatory    

Signature Page to Loan and Security Agreement

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Perfection Certificate

See Attached.

Perfection Certificate Page 1

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Annex I

Description of Certain Terms

1. Loan Limits for Revolving Loans and Letters of Credit
(a) Maximum Revolving Facility Amount	$75,000,00085,000,000 (as increased from time to time in accordance with Section 2.1(c))
(b) Advance Rates
(i) Accounts Advance Rate
a. Eligible Receivables of Investment Grade Account Debtors	Ninety percent (90%); provided, that if Dilution exceeds five percent (5%), Agent may, at its option, (A) reduce such advance rate by the number of full or partial percentage points comprising such excess or (B) establish a Reserve on account of such excess (the "Dilution Reserve").
b. Eligible Receivables of Non-Investment Grade Account Debtors	Eighty-five percent (85%); provided, that if Dilution exceeds five percent (5%), Agent may, at its option, (A) reduce such advance rate by the number of full or partial percentage points comprising such excess or (B) establish a Dilution Reserve on account of such excess.
(ii) Inventory Advance Rate(s)
Lower of cost or net realizable value:	Seventy percent (70% )
NOLV:	Eighty-five percent (85%)
(c) Letter of Credit Limit:	$3,500,000
(d) Inventory Sublimit(s)
i. Overall	$47,500,000
ii. Mexican Inventory Sublimit	$4,000,0005,000,000
iii. In-Transit Sublimit	$5,500,0007,500,000
(e) Reserved
(f) Reserved
2. Availability Block	$5,000,000
3. Interest Rates
(a) Applicable Margins	Four percent (4.00%) per annum in excess of the LIBOR Rate Three percent (3.00%) per annum in excess of the Base Rate
4. Maximum Days Eligible Accounts
(a) Maximum days after original invoice date for Eligible Accounts other than for Specified Account Debtors	One hundred twenty (120) days
(b) Maximum days after original invoice date for Eligible Accounts of only	Three hundred sixty-five (365) days

Annex I-1

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Annex II

Agent and Lenders shall be provided with each of the documents set forth below at the following times, in form satisfactory to Agent:

I.	Monthly (no later than the 3rd Business Day after the end of each month)	(a) An Account roll-forward with reasonable supporting details as agreed to by the parties with respect to Borrowers’ Accounts (delivered electronically in an acceptable format) and which for the avoidance of doubt will not contain eligibility criteria or otherwise reflect ineligible items. Such reasonable supporting details will include: (i) Account roll-forward; and (ii) Account aging (at the customer level; will tie to the Account roll-forward balance and will include Type – INV, DEB, CRD) (b) A gross Inventory roll-forward with reasonable supporting details as agreed to by the parties with respect to Borrowers’ gross Inventory (delivered electronically in an acceptable format) and which for the avoidance of doubt will not contain eligibility criteria or otherwise reflect ineligible items. Such reasonable supporting details will include: (i) a gross Inventory roll-forward; and (ii) an Inventory – perpetual listing (will tie to the gross Inventory roll-forward)
II.	Monthly (no later than 15th day after the end of each month)	(c) An Account roll-forward with supporting details supplied from sales journals, collection journals, credit registers and any other records, with respect to Borrowers' Accounts (delivered electronically in an acceptable format) (d) Notice of all claims, offsets, or disputes asserted by Account Debtors with respect to Borrowers' Accounts (e) A detailed Inventory perpetual report with respect to Borrowers' Inventory, including a listing by category and location of Inventory (delivered electronically in an acceptable format) (f) A summary and a detailed aging, by total, of Borrowers' Accounts, together with reconciliation to the weekly Borrowing Base submitted closest to such date and support documentation for any reconciling items noted (delivered electronically in an acceptable format) (g) A summary aging, by vendor, of each Loan Party's accounts payable and a listing by vendor, of any held and/or outstanding checks (delivered electronically in an acceptable format) (h) A monthly Account roll-forward with respect to Borrowers' Accounts, in a format acceptable to Agent in its discretion, tied to the beginning and ending Account balances of Borrowers' month-end accounts receivable aging (delivered electronically in an acceptable format) (i) A reconciliation of Accounts summary aging and trade accounts payable summary aging to each of (i) Borrowers'

Annex II-1

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Annex III

Revolving Loan Commitments1

Encina Business Credit SPV, LLC	$75,000,00085,000,000
Total	$75,000,00085,000,000

_____________________________

1 As increased from time to time in accordance with Section 2.1(c).

Annex III-1

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Exhibit A

[FORM OF] NOTICE OF BORROWING

[letterhead of BorrowerRepresentative]

ENCINA BUSINESS CREDIT, LLC,

as Agent

123 N Wacker Suite 2400

Chicago, IL 60606

Attention: John Whetstone

Ladies and Gentlemen:

Please refer to the Loan and Security Agreement dated as of March 13, 2020 (as amended, restated, supplemented or otherwise modified from time to time, the "Loan Agreement") among the undersigned, as Borrower Representative, the Borrowers (as defined therein) the Loan Party (as defined therein) party thereto, the Lenders party thereto and ENCINA BUSINESS CREDIT, LLC, as Agent for the Lenders.Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Loan Agreement.This notice is given pursuant to Section 2.3 of the Loan Agreement and constitutes a representation by Borrower Representative, for itself and on behalf of each Borrower, that the conditions specified in Section 4 of the Loan Agreement have been satisfied.Without limiting the foregoing, (i) each of the representations and warranties set forth in the Loan Agreement and in the other Loan Documents is true and correct in all respects as of the date hereof (or to the extent any representations or warranties are expressly made solely as of an earlier date, such representations and warranties shall be true and correct as of such earlier date), both before and after giving effect to the Loans requested hereby, and (ii) no Default or Event of Default is in existence, both before and after giving effect to the Loans requested hereby.

Borrower Representative hereby requests a borrowing, on behalf of each Borrower, under the Loan Agreement as follows:

The aggregate amount of the proposed borrowing is $[______________].The requested borrowing date for the proposed borrowing (which is a Business Day) is [______________], [____].

Borrower Representative has caused this Notice of Borrowing to be executed and delivered by its officer thereunto duly authorized on [_____________].

HORIZON GLOBAL AMERICAS INC.,

as Borrower Representative

By:_______________________________________

Title:

Ex.A-1

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Exhibit B

CLOSING CHECKLIST

[Attached]

Ex. B-1

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Exhibit C

CLIENT USER FORM

ENCINA BUSINESS CREDIT, LLC

ABLSoft – Client User Form

Borrowers Names:Horizon Global Americas Inc.

Cequent Towing Products of Canada, Ltd.

Borrower Number:HORIZON101

Loan and Security Agreement Date:March 13, 2020

I, being an authorized signer of the above borrower, as Borrower Representative (the "Borrower"), refer to the above Loan and Security Agreement (as amended, restated, supplemented or otherwise modified from time to time, the "Loan Agreement") between the Borrowers named above, the other Loan Parties party thereto, the Lenders party thereto and ENCINA BUSINESS CREDIT, LLC, as Agent.This is the Client User Form, used to determined client access to ABLSoft.Terms defined in the Loan Agreement have the same meaning when used in this Client User Form.

Being duly authorized by Borrower Representative, on behalf of Borrowers, I confirm that the following individuals have been authorized by Borrower to have access to ABLSoft:

First Name Last Name Email Address Phone Number

HORIZON GLOBAL AMERICAS INC., as Borrower Representative

By_________________________

Name:______________________

Title:_______________________

Ex. C-1

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Exhibit D

AUTHORIZED ACCOUNTS FORM

ENCINA BUSINESS CREDIT, LLC

Authorized Accounts Form

Borrowers Names:Horizon Global Americas Inc.

Cequent Towing Products of Canada, Ltd.

Borrower Number:HORIZON101

Loan and Security Agreement Date:March 13, 2020

I, being an authorized signer of HORIZON GLOBAL AMERICAS INC.,Delaware corporation, as Borrower Representative, refer to the above Loan and Security Agreement (as amended, restated, supplemented or otherwise modified from time to time, the "Loan Agreement") between the Borrower named above, the Lenders party thereto and ENCINA BUSINESS CREDIT, LLC, as agent ("Agent").This is the Authorized Accounts Form, referring to authorized operating bank accounts of Borrower.Terms defined in the Loan Agreement have the same meaning when used in this Authorized Accounts Form.

Being duly authorized by Borrower Representative, I confirm that the following operating bank accounts of Borrowers are the accounts into which the proceeds of any Loan may be paid:

Bank Routing Number Account number Account name

HORIZON GLOBAL AMERICAS INC., as Borrower Representative

By:_____________________________

Authorized Signer

Name: ______________________

Title:________________________

Ex. D-1

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Exhibit E

[FORM OF] ACCOUNT DEBTOR NOTIFICATION

[Date]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

[Account Debtor]

[Address]

Re:Loan Transaction with ENCINA BUSINESS CREDIT, LLC

Ladies and Gentlemen:

Please be advised that we have entered into certain financing arrangements (along with any other financing agreements that we may enter into with Agent in the future, the "Financing Arrangements") with ENCINA BUSINESS CREDIT, LLC ("Agent"), as Agent for certain Lenders, pursuant to which we have granted to Agent a security interest in, among other things, any and all Accounts and Chattel Paper (as those terms are defined in the Uniform Commercial Code) owing by you to us, whether now existing or hereafter arising.

You are authorized and directed to respond to any inquiries that Agent may direct to you from time to time pertaining to the validity, amount and other matters relating to such Accounts and Chattel Paper.In the event that Agent requests that payment for any Accounts and/or Chattel Paper be made directly to Agent, you are hereby authorized and directed to comply with such instructions, without further authorization or instruction from us.

This authorization and directive shall be continuing and irrevocable until Agent advises you, in writing, that this authorization is no longer in force.

Very truly yours,

[BORROWER]

By: _____________________________

Name: ________________________

Its:

cc:ENCINA BUSINESS CREDIT, LLC

as Agent

123 N Wacker Suite 2400

Chicago, IL 60606

Attention: John Whetstone

Ex. E-1

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Exhibit F

[FORM OF] COMPLIANCE CERTIFICATE

[letterhead of Parent]

To:ENCINA BUSINESS CREDIT, LLC,

as Agent

123 N Wacker Suite 2400

Chicago, IL 60606

Attention: John Whetstone

Re:Compliance Certificate dated _______________

Ladies and Gentlemen:

Reference is made to that certain Loan and Security Agreement dated as of March 13, 2020 (as amended, restated, supplemented or otherwise modified from time to time, the "Loan Agreement") by and among ENCINA BUSINESS CREDIT, LLC ("Agent"), the Lenders party thereto, Horizon Global Americas Inc., a Delaware corporation (“Horizon Americas”), Cequent Towing Products of Canada, Ltd., a company formed under the laws of the Province of Ontario ("Cequent Canada"; together with Horizon Americas, each a "Borrower" and collectively, the “Borrowers”) and each of the other Loan Parties (as defined therein) party thereto.Capitalized terms used in this Compliance Certificate have the meanings set forth in the Loan Agreement unless specifically defined herein.

Pursuant to Section 7.15 of the Loan Agreement, the undersigned Authorized Officer of Parent hereby certifies on behalf of each Borrower (solely in his capacity as an officer of Parent and not in his individual capacity) that:

1.The financial statements of Borrowers for the ___ -month period ending _____________ attached hereto have been prepared in accordance with GAAP and fairly present the financial condition of Borrowers for the periods and as of the dates specified therein (it being understood that the obligation to furnish the foregoing to the Agent shall be deemed to be satisfied in respect of any fiscal quarter of the Parent by the filing of the Parent’s [annual][quarterly] report on Form [10-K][10-Q] for such [fiscal year][fiscal quarter] with the Securities and Exchange Commission to the extent permitted by the Loan Agreement).

2.As of the date hereof, there does not exist any Default or Event of Default.

3.Borrowers are in compliance with the applicable financial covenant contained in Section 9.2 of the Loan Agreement for the periods covered by this Compliance Certificate.Attached hereto are statements of all relevant facts and computations in reasonable detail sufficient to evidence Borrowers’ compliance with such financial covenant, which computations were made in accordance with GAAP.

4.[Except as attached hereto, the Loan Parties have not acquired, or otherwise registered, any registered Intellectual Property since the last quarter.]2

IN WITNESS WHEREOF, this Compliance Certificate is executed by the undersigned this __ day of _______________, ______.

____________________

2 To be included in all quarter-end certificates.

Ex. F-1

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Exhibit G

[FORM OF] ASSIGNMENT AND ASSUMPTION

Dated [___________ ___, 20_]

Reference is made to the Loan and Security Agreement dated as of March 13, 2020 among Horizon Global Americas Inc., a Delaware corporation (“Horizon Americas”), Cequent Towing Products of Canada, Ltd., a company formed under the laws of the Province of Ontario ("Cequent Canada"; together with Horizon Americas, each a "Borrower" and collectively the “Borrowers”) , the other Loan Parties party thereto, the lenders party thereto as "Lenders" and Encina Business Credit, LLC, as agent ("Agent") for the Lenders (as amended, restated, supplemented or otherwise modified from time to time, the "Loan Agreement").Terms defined in the Loan Agreement are used herein as therein defined.

[____________], solely in its capacity as a Lender under the Loan Agreement (the "Assignor"), and [__________] (the "Assignee") agree as follows:

1.The Assignor hereby sells and assigns to the Assignee, without recourse, representation or warranty (except as expressly set forth elsewhere herein), and the Assignee hereby purchases and assumes from the Assignor, on the Effective Date (as defined below), an interest as set forth in Exhibit A attached hereto (the "Assigned Interest") in and to (i) all of the Assignor's right, title and interest with respect to the Loans set forth in Exhibit A, (ii) all of the Assignor's right, title and interest with respect to the [Revolving Loan Commitment] of Assignor as set forth in Exhibit A and (iii) to the extent related thereto, all of the Assignor's rights and obligations, solely as a Lender, under the Loan Agreement and any other Loan Document (including, without limitation, (A) the outstanding principal amount of the Loans made by the Assignor and assigned to Assignee hereunder, and (B) the Assignor's pro rata share of the obligations owing by each Loan Party under the Loan Agreement and the Loan Documents).The Assigned Interest (expressed as a percentage) in the Loans and the [Revolving Loan Commitment] is set forth in Exhibit A.

2.The Assignor (i) represents and warrants as of the date hereof that [its Revolving Loan Commitment, or if its Revolving Loan Commitment shall have been terminated, the outstanding principal amount of its Revolving Loans], is set forth in Exhibit A (without giving effect to assignments thereof which have not yet become effective); (ii) represents and warrants that it is the legal and beneficial owner of the interest it is assigning hereunder; (iii) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made by or in connection with the Loan Agreement or any other Loan Document or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Agreement or any other Loan Document, or any other instrument or document furnished pursuant thereto; and (iv) makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Loan Party or the performance or observance by any Loan Party of any of its obligations under the Loan Agreement, any other Loan Document or any other instrument or document furnished pursuant thereto.

3.The Assignee represents and warrants that it has become a party hereto solely in reliance upon its own independent investigation of the financial and other circumstances surrounding the Loan Parties, the Collateral, the Loans, the Revolving Loan Commitments and all aspects of the transactions evidenced by or referred to in the Loan Documents, or has otherwise satisfied itself thereto, and that it is not relying upon any representation, warranty or statement (except any such representation, warranty or statement expressly set forth in this Assignment and Assumption) of the Assignor in connection with the assignment made under this Assignment and Assumption.The Assignee further acknowledges that the Assignee will, independently and without reliance upon Agent, the Assignor or any other Lender and based upon the

Ex. G-1

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IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute this Assignment and Assumption as of the Effective Date.

[ASSIGNOR]

By_______________________________________

Name ____________________________________

Title

NOTICE ADDRESS AND PAYMENT

INSTRUCTIONS FOR ASSIGNOR

Telephone No. (___) ___-____

Telecopy No. (___)___-____

[ASSIGNEE]

By_______________________________________

Name ____________________________________

Title

NOTICE ADDRESS AND PAYMENT

INSTRUCTIONS FOR ASSIGNEE

Telephone No. (___)___-____

Telecopy No. (___)___-____

Ex. G-4

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EXHIBIT A

Borrowers: Horizon Global Americas Inc.

Cequent Towing Products of Canada, Ltd.

Description of Loan Agreement:Loan and Security Agreement, dated as of March 13, 2020 among Borrowers, the other Loan Parties party thereto, the lenders party thereto as "Lenders" and Encina Business Credit, LLC as agent ("Agent") for the Lenders (as amended, restated, supplemented or otherwise modified from time to time).

Assigned Interests:

Assignor's Interest Prior to Assignment	Assigned Interests	Assignor's Remaining Interest After Assignment	Assignee's Pro Rata Shares
Revolving Loans and Revolving Loan Commitments

Ex. H-1

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Exhibit H

[FORM OF] BORROWING BASE CERTIFICATE

See attached.

Ex. H-1

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Schedule 7.32

Post-Closing Matters

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Annex II

Updated Form of Borrowing Base Certificate

See attached.

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EX-31.1

Exhibit 31.1

Certification

Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002

(Chapter 63, Title 18 U.S.C. Section 1350(A) and (B))

I, Terrence G. Gohl, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Horizon Global Corporation;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 3, 2021

/s/ TERRENCE G. GOHL

Terrence G. Gohl

Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification

Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002

(Chapter 63, Title 18 U.S.C. Section 1350(A) and (B))

I, Dennis E. Richardville, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Horizon Global Corporation;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 3, 2021

/s/ DENNIS E. RICHARDVILLE

Dennis E. Richardville

Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Horizon Global Corporation (the "Company") on Form 10-Q for the period ended June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Terrence G. Gohl, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

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 Company.

Date: August 3, 2021

/s/  TERRENCE G. GOHL

Terrence G. Gohl

Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Horizon Global Corporation (the “Company”) on Form 10-Q for the period ended June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dennis E. Richardville, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes‑Oxley Act of 2002, that to the best of my knowledge:

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 Company.

Date: August 3, 2021

/s/  DENNIS E. RICHARDVILLE

Dennis E. Richardville

Chief Financial Officer

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Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Jul. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-37427
Entity Registrant Name	HORIZON GLOBAL CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-3574483
Entity Address, Address Line One	47912 Halyard Drive
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Plymouth
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48170
City Area Code	734
Local Phone Number	656-3000
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	HZN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,286,647
Entity Central Index Key	0001637655
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 24,680	$ 44,970
Restricted cash	5,510	5,720
Receivables, net	116,240	87,420
Inventories	144,360	115,320
Prepaid expenses and other current assets	12,100	11,510
Total current assets	302,890	264,940
Property and equipment, net	73,520	74,090
Operating lease right-of-use assets	40,400	47,310
Goodwill	0	3,360
Other intangibles, net	54,890	58,230
Deferred income taxes	1,280	1,280
Other assets	6,410	7,280
Total assets	479,390	456,490
Current liabilities:
Short-term borrowings and current maturities, long-term debt	11,990	14,120
Accounts payable	111,940	99,520
Short-term operating lease liabilities	11,130	12,180
Accrued liabilities	59,750	59,100
Total current liabilities	194,810	184,920
Gross long-term debt	284,040	251,960
Unamortized debt issuance costs and discount	(31,460)	(20,570)
Long-term debt	252,580	231,390
Deferred income taxes	4,080	3,130
Long-term operating lease liabilities	39,410	46,340
Other long-term liabilities	11,000	14,560
Total liabilities	501,880	480,340
Contingencies (See Note 10)
Preferred stock, $0.01 par: Authorized 100,000,000 shares; Issued and outstanding: None	0	0
Common stock, $0.01 par: Authorized 400,000,000 shares; 27,970,998 shares issued and 27,284,492 outstanding at June 30, 2021, and 27,089,673 shares issued and 26,403,167 outstanding at December 31, 2020	270	260
Common stock warrants issued, outstanding and exercisable for 9,231,146 and 5,815,039 shares of common stock at June 30, 2021 and December 31, 2020, respectively	25,010	9,510
Paid-in capital	169,070	166,610
Treasury stock, at cost: 686,506 shares at June 30, 2021 and December 31, 2020	(10,000)	(10,000)
Accumulated deficit	(192,050)	(178,530)
Accumulated other comprehensive loss	(8,960)	(6,540)
Total Horizon Global shareholders' deficit	(16,660)	(18,690)
Noncontrolling interest	(5,830)	(5,160)
Total shareholders' deficit	(22,490)	(23,850)
Total liabilities and shareholders' equity	$ 479,390	$ 456,490

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares (in shares)	100,000,000	100,000,000
Preferred stock, issued shares (in shares)	0	0
Preferred stock, outstanding shares (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, authorized shares (in shares)	400,000,000	400,000,000
Common Stock, issued shares (in shares)	27,970,998	27,089,673
Common Stock, outstanding shares (in shares)	27,284,492	26,403,167
Issued warrants (in shares)	9,231,146	5,815,039
Warrants outstanding and exercisable (in shares)	9,231,146	5,815,039
Treasury stock, shares (in shares)	686,506	686,506

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Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Net sales	$ 222,120	$ 120,490	$ 421,310	$ 283,740
Cost of sales	(174,830)	(102,440)	(333,460)	(239,440)
Gross profit	47,290	18,050	87,850	44,300
Selling, general and administrative expenses	(35,960)	(26,020)	(69,740)	(58,950)
Operating profit (loss)	11,330	(7,970)	18,110	(14,650)
Other expense, net	(1,990)	(450)	(4,220)	(2,120)
Loss on debt extinguishment	0	0	(11,650)	0
Interest expense	(6,980)	(8,220)	(14,030)	(16,410)
Income (loss) from continuing operations before income tax	2,360	(16,640)	(11,790)	(33,180)
Income tax expense	(1,400)	(80)	(2,400)	(70)
Net income (loss) from continuing operations	960	(16,720)	(14,190)	(33,250)
Loss from discontinued operations, net of income tax	0	0	0	(500)
Net income (loss)	960	(16,720)	(14,190)	(33,750)
Less: Net loss attributable to noncontrolling interest	(330)	(380)	(670)	(670)
Net income (loss) attributable to Horizon Global	$ 1,290	$ (16,340)	$ (13,520)	$ (33,080)
Basic:
Continuing operations (in dollars per share)	$ 0.05	$ (0.64)	$ (0.50)	$ (1.28)
Discontinued operations (in dollars per share)	0	0	0	(0.02)
Total	0.05	(0.64)	(0.50)	(1.30)
Diluted:
Continuing operations (in dollars per share)	0.04	(0.64)	(0.50)	(1.28)
Discontinued operations (in dollars per share)	0	0	0	(0.02)
Total	$ 0.04	$ (0.64)	$ (0.50)	$ (1.30)
Weighted average common shares outstanding:
Basic (in shares)	27,022,652	25,618,793	26,883,818	25,509,794
Diluted (in shares)	32,747,203	25,618,793	26,883,818	25,509,794

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 960	$ (16,720)	$ (14,190)	$ (33,750)
Other comprehensive (loss) income, net of tax:
Foreign currency translation and other	(130)	2,040	(2,420)	(2,300)
Total other comprehensive (loss) income, net of tax	(130)	2,040	(2,420)	(2,300)
Total comprehensive income (loss)	830	(14,680)	(16,610)	(36,050)
Less: Comprehensive loss attributable to noncontrolling interest	(330)	(380)	(670)	(670)
Comprehensive income (loss) attributable to Horizon Global	$ 1,160	$ (14,300)	$ (15,940)	$ (35,380)

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows from Operating Activities:
Net income (loss)	$ (14,190)	$ (33,750)
Less: Net loss from discontinued operations	0	(500)
Net loss from continuing operations	(14,190)	(33,250)
Adjustments to reconcile net loss from continuing operations to net cash (used for) provided by operating activities:
Depreciation	7,750	7,100
Amortization of intangible assets	2,970	3,430
Loss on debt extinguishment	11,650	0
Amortization of original issuance discount and debt issuance costs	5,400	8,100
Deferred income taxes	1,120	10
Non-cash compensation expense	1,710	1,320
Paid-in-kind interest	650	3,660
Increase in receivables	(30,630)	(16,780)
(Increase) decrease in inventories	(31,350)	19,270
Increase in prepaid expenses and other assets	(440)	(2,890)
Increase in accounts payable and accrued liabilities	15,960	13,460
Other, net	1,780	1,470
Net cash (used for) provided by operating activities for continuing operations	(27,620)	4,900
Cash Flows from Investing Activities:
Capital expenditures	(9,940)	(5,450)
Other, net	10	70
Net cash used for investing activities for continuing operations	(9,930)	(5,380)
Cash Flows from Financing Activities:
Proceeds from borrowings on credit facilities	2,190	6,290
Repayments of borrowings on credit facilities	(1,300)	(1,210)
Proceeds from Senior Term Loan, net of issuance costs	75,300	0
Repayments of borrowings on Replacement Term Loan, including transaction fees	(94,940)	0
Proceeds from Revolving Credit Facility, net of issuance costs	20,000	54,680
Repayments of borrowings on Revolving Credit Facility	0	(19,180)
Proceeds from ABL revolving debt, net of issuance costs	0	8,000
Repayments of borrowings on ABL revolving debt	0	(27,920)
Proceeds from Paycheck Protection Program Loan	0	8,670
Proceeds from issuance of common stock warrants	16,300	0
Proceeds from exercise of common stock warrants	420	0
Other, net	(640)	(10)
Net cash provided by financing activities for continuing operations	17,330	29,320
Discontinued Operations:
Net cash used for discontinued operations	0	(500)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(280)	(110)
(Decrease) increase for the period	(20,500)	28,230
At beginning of period	50,690	11,770
At end of period	30,190	40,000
Supplemental disclosure of cash flow information:
Cash paid for interest	10,860	4,370
Cash paid for taxes, net of refunds	$ 1,430	$ 440

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Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Common Stock Warrants	Paid-in Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income	Total Horizon Global Shareholders' Equity (Deficit)	Noncontrolling Interest
Beginning balance at Dec. 31, 2019	$ 8,600	$ 250	$ 10,610	$ 163,240	$ (10,000)	$ (141,970)	$ (9,790)	$ 12,340	$ (3,740)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(17,030)					(16,740)		(16,740)	(290)
Other comprehensive income (loss), net of tax	(4,340)						(4,340)	(4,340)
Shares surrendered upon vesting of employees share based payment awards to cover tax obligations	(60)			(60)				(60)
Non-cash compensation expense	420			420				420
Ending balance at Mar. 31, 2020	(12,410)	250	10,610	163,600	(10,000)	(158,710)	(14,130)	(8,380)	(4,030)
Beginning balance at Dec. 31, 2019	8,600	250	10,610	163,240	(10,000)	(141,970)	(9,790)	12,340	(3,740)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(33,750)
Other comprehensive income (loss), net of tax	(2,300)
Ending balance at Jun. 30, 2020	(26,140)	250	10,610	164,550	(10,000)	(175,050)	(12,090)	(21,730)	(4,410)
Beginning balance at Mar. 31, 2020	(12,410)	250	10,610	163,600	(10,000)	(158,710)	(14,130)	(8,380)	(4,030)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(16,720)					(16,340)		(16,340)	(380)
Other comprehensive income (loss), net of tax	2,040						2,040	2,040
Shares surrendered upon vesting of employees share based payment awards to cover tax obligations	50			50				50
Non-cash compensation expense	900			900				900
Ending balance at Jun. 30, 2020	(26,140)	250	10,610	164,550	(10,000)	(175,050)	(12,090)	(21,730)	(4,410)
Beginning balance at Dec. 31, 2020	(23,850)	260	9,510	166,610	(10,000)	(178,530)	(6,540)	(18,690)	(5,160)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(15,150)					(14,810)		(14,810)	(340)
Other comprehensive income (loss), net of tax	(2,290)						(2,290)	(2,290)
Shares surrendered upon vesting of employees share based payment awards to cover tax obligations	(650)			(650)				(650)
Non-cash compensation expense	960			960				960
Issuance of common stock warrants	16,300		16,300					16,300
Exercise of common stock warrants	420	10	(800)	1,210				420
Ending balance at Mar. 31, 2021	(24,260)	270	25,010	168,130	(10,000)	(193,340)	(8,830)	(18,760)	(5,500)
Beginning balance at Dec. 31, 2020	(23,850)	260	9,510	166,610	(10,000)	(178,530)	(6,540)	(18,690)	(5,160)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(14,190)
Other comprehensive income (loss), net of tax	(2,420)
Ending balance at Jun. 30, 2021	(22,490)	270	25,010	169,070	(10,000)	(192,050)	(8,960)	(16,660)	(5,830)
Beginning balance at Mar. 31, 2021	(24,260)	270	25,010	168,130	(10,000)	(193,340)	(8,830)	(18,760)	(5,500)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	960					1,290		1,290	(330)
Other comprehensive income (loss), net of tax	(130)						(130)	(130)
Shares surrendered upon vesting of employees share based payment awards to cover tax obligations	10			10				10
Non-cash compensation expense	930			930				930
Ending balance at Jun. 30, 2021	$ (22,490)	$ 270	$ 25,010	$ 169,070	$ (10,000)	$ (192,050)	$ (8,960)	$ (16,660)	$ (5,830)

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Nature of Operations and Basis of Presentation

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Basis of Presentation

Nature of Operations and Basis of Presentation

Horizon Global Corporation and its consolidated subsidiaries (“Horizon,” “Horizon Global,” “we,” or the “Company”) are a leading designer, manufacturer and distributor of a wide variety of high quality, custom-engineered towing, trailering, cargo management and other related accessory products, primarily in the North American, European and African markets. These products are designed to support aftermarket, automotive original equipment manufacturers (“automotive OEMs”) and automotive original equipment servicers (“automotive OESs”) (collectively, “OEs”), retail, e-commerce and industrial customers within the agricultural, automotive, construction, horse/livestock, industrial, marine, military, recreational, trailer and utility markets. The Company groups its business into operating segments generally by the region in which sales and manufacturing efforts are focused. The Company’s operating segments are Horizon Americas and Horizon Europe-Africa. See Note 14, Segment Information, for further information on each of the Company’s operating segments.

The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the twelve months ended December 31, 2020. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. It is management’s opinion that these condensed consolidated financial statements contain all adjustments, including adjustments of a normal and recurring nature, necessary for a fair presentation of financial position and results of operations. Results of operations for interim periods are not necessarily indicative of results for the full year.

U.S. GAAP requires the Company to make certain estimates, judgments, and assumptions. Management believes that the estimates, judgments, and assumptions made when accounting for items and matters such as, but not limited to, the allowance for doubtful accounts, sales incentives, sales returns, impairment assessment of indefinite-lived intangible assets, recoverability of long-lived assets, income taxes (including deferred taxes and uncertain tax positions), share-based compensation, the assessment of lower of cost or net realizable value on inventory, useful lives assigned to long-lived assets, and depreciation and amortization, are reasonable based on information available at the time they are made. To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected.

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New Accounting Pronouncements

6 Months Ended

Jun. 30, 2021

Accounting Standards Update and Change in Accounting Principle [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

New accounting pronouncements not yet adopted

In May 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-04, “Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40)” (“ASU 2021-04”). ASU 2021-04 provides guidance on modifications or exchanges of a freestanding equity-classified written call option that is not within the scope of other accounting standards. Under this guidance, an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument. ASU 2021-04 provides further guidance on measuring the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange. ASU 2021-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2021, with early adoption permitted. We are currently assessing the impact of this update on the Company’s condensed consolidated financial statements. The standard is not expected to have a significant impact on the Company's condensed consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for convertible instruments by removing certain separation models in Accounting Standards Codification (“ASC”) 470-20, “Debt—Debt with Conversion and Other Options,” (“ASC 470-20”) for convertible instruments. Under ASU 2020-06, the embedded conversion features no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under ASC 815, “Derivatives and Hedging,” or that do not result in substantial premiums accounted for as paid-in capital. For smaller reporting companies, ASU 2020-06 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2023, with early adoption permitted for fiscal years beginning after December 15, 2020. We are currently assessing the impact of this update on the Company’s condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides temporary optional guidance to ease the potential burden in accounting for (or recognize the effects of) reference rate reform on financial reporting. The relief provided by this guidance is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform initiatives being undertaken in an effort to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The optional amendments of this guidance are effective for all entities upon adoption. We are currently assessing the impact of this update on the Company’s condensed consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 replaces the current incurred loss model guidance with a new method that reflects expected credit losses. Under this guidance, an entity would recognize an allowance for credit losses equal to its estimate of expected credit losses on financial assets measured at amortized cost. In November 2019, the FASB extended the effective date of ASU 2016-13 for smaller reporting companies. As a result, ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022, with early adoption permitted. The standard is not expected to have a significant impact on the Company's condensed consolidated financial statements.

Accounting pronouncements recently adopted

There were no new accounting pronouncements adopted during the six months ended June 30, 2021.

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Revenues

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenues

RevenuesThe Company disaggregates net sales from contracts with customers by major sales channel. The Company determined that disaggregating its net sales into these categories best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The automotive OEM channel represents sales to automotive vehicle manufacturers. The automotive OES channel primarily represents sales to automotive vehicle dealerships. The aftermarket channel represents sales to automotive installers and warehouse distributors. The retail channel represents sales to direct-to-consumer retailers. The e-commerce channel represents sales to retailers whose customers utilize the Internet to purchase the Company’s products. The industrial channel represents sales to non-automotive manufacturers and dealers of agricultural equipment, trailers, and other custom assemblies. The other channel represents sales that do not fit into a category described above and these sales are considered ancillary to the Company’s core operating activities.

The Company’s net sales by segment and disaggregated by major sales channel are as follows:

	Three Months Ended June 30, 2021
	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Net Sales
Aftermarket	$	40,560	$	26,130	$	66,690
Automotive OEM	22,650		44,190		66,840
Automotive OES	4,240		19,970		24,210
Retail	32,610		—		32,610
E-commerce	19,730		1,960		21,690
Industrial	8,590		630		9,220
Other	—		860		860
Total	$	128,380	$	93,740	$	222,120

	Three Months Ended June 30, 2020
	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Net Sales
Aftermarket	$	22,280	$	16,680	$	38,960
Automotive OEM	9,510		20,620		30,130
Automotive OES	1,080		7,720		8,800
Retail	22,830		—		22,830
E-commerce	13,370		230		13,600
Industrial	5,040		340		5,380
Other	10		780		790
Total	$	74,120	$	46,370	$	120,490

	Six Months Ended June 30, 2021
	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Net Sales
Aftermarket	$	72,250	$	48,550	$	120,800
Automotive OEM	50,170		92,750		142,920
Automotive OES	8,100		36,030		44,130
Retail	55,190		—		55,190
E-commerce	34,250		3,390		37,640
Industrial	18,250		1,180		19,430
Other	—		1,200		1,200
Total	$	238,210	$	183,100	$	421,310

	Six Months Ended June 30, 2020
	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Net Sales
Aftermarket	$	49,050	$	32,390	$	81,440
Automotive OEM	29,870		62,020		91,890
Automotive OES	2,350		20,180		22,530
Retail	46,400		—		46,400
E-commerce	25,880		660		26,540
Industrial	12,890		660		13,550
Other	50		1,340		1,390
Total	$	166,490	$	117,250	$	283,740

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill are as follows:

	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Balance at January 1, 2021	$	3,360	$	—	$	3,360
Divestiture of business	(3,340)		—		(3,340)
Foreign currency translation	(20)		—		(20)
Balance at June 30, 2021	$	—	$	—	$	—

Brazil Sale

On June 8, 2021, the Company divested its Brazil business via a share sale (the “Brazil Sale”). Under the terms of the Brazil Sale, the Company disposed all assets and liabilities of its Brazil business, including $3.3 million of goodwill within the Horizon Americas operating segment, for nominal consideration. As a result of the Brazil Sale, the Company recorded a $2.2 million loss in other expense, net in the accompanying condensed consolidated statements of operations.

The gross carrying amounts and accumulated amortization of the Company’s other intangible assets are as follows:

	June 30, 2021
Intangible Category by Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(dollars in thousands)
Finite-lived intangible assets:
Customer relationships (2 – 20 years)	$	163,860	$	(135,960)	$	27,900
Technology and other (3 – 15 years)	23,000		(17,300)		5,700
Trademark/Trade names (1 – 8 years)	150		(150)		—
Sub-total	187,010		(153,410)		33,600
Trademark/Trade names, indefinite-lived	21,290		—		21,290
Total	$	208,300	$	(153,410)	$	54,890

	December 31, 2020
Intangible Category by Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(dollars in thousands)
Finite-lived intangible assets:
Customer relationships (2 – 20 years)	$	166,420	$	(135,140)	$	31,280
Technology and other (3 – 15 years)	22,250		(16,710)		5,540
Trademark/Trade names (1 – 8 years)	150		(150)		—
Sub-total	188,820		(152,000)		36,820
Trademark/Trade names, indefinite-lived	21,410		—		21,410
Total	$	210,230	$	(152,000)	$	58,230

Amortization expense related to other intangible assets is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Technology and other, included in cost of sales	$	580	$	550	$	780	$	670
Customer relationships, included in selling, general and administrative expenses	1,090		1,310		2,190		2,760
Total	$	1,670	$	1,860	$	2,970	$	3,430

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Inventories

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Finished goods	$	72,680	$	58,600
Work in process	16,170		13,070
Raw materials	55,510		43,650
Total	$	144,360	$	115,320

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Property and Equipment, Net

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and Equipment, Net

Property and equipment, net consists of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Land and land improvements	$	500	$	520
Buildings	23,010		23,040
Machinery and equipment	140,110		134,750
Gross property and equipment	163,620		158,310
Accumulated depreciation	(90,100)		(84,220)
Total	$	73,520	$	74,090

Depreciation expense is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Depreciation expense, included in cost of sales	$	3,270	$	3,260	$	7,130	$	6,410
Depreciation expense, included in selling, general and administrative expenses	280		350		620		690
Total	$	3,550	$	3,610	$	7,750	$	7,100

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Accrued and Other Long-term Liabilities

6 Months Ended

Jun. 30, 2021

Accrued Liabilities [Abstract]

Accrued and Other Long-term Liabilities

Accrued and Other Long-term Liabilities

Accrued liabilities consist of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Customer incentives	$	17,140	$	15,870
Accrued compensation	12,370		12,130
Short-term tax liabilities	6,640		5,570
Customer claims	3,680		6,520
Accrued professional services	2,070		1,510
Litigation settlements	1,100		1,600
Restructuring	120		650
Deferred purchase price	—		1,370
Other	16,630		13,880
Total	$	59,750	$	59,100

Other long-term liabilities consist of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Litigation settlements	$	2,370	$	2,930
Long-term tax liabilities	380		130
Deferred purchase price	—		1,650
Restructuring	—		1,070
Other	8,250		8,780
Total	$	11,000	$	14,560

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Long-term Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Long-term Debt

Long-term Debt

The Company’s long-term debt consists of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Revolving Credit Facility	$	44,230	$	24,230
Senior Term Loan	100,000		—
Replacement Term Loan	—		90,210
Convertible Notes	125,000		125,000
Paycheck Protection Program Loan	8,670		8,670
Bank facilities, capital leases and other long-term debt	18,130		17,970
Gross debt	296,030		266,080
Less:
Short-term borrowings and current maturities, long-term debt	11,990		14,120
Gross long-term debt	284,040		251,960
Less:
Unamortized debt issuance costs and original issuance discount on Senior Term Loan	23,550		—
Unamortized debt issuance costs and original issuance discount on Replacement Term Loan	—		9,100
Unamortized debt issuance costs and discount on Convertible Notes	7,910		11,470
Unamortized debt issuance costs and discount	31,460		20,570
Total	$	252,580	$	231,390

ABL Facility

In December 2015, the Company entered into an Amended and Restated Loan Agreement with certain subsidiaries of the Company party thereto as guarantors, the lenders party thereto and Bank of America, N.A., as agent for the lenders, under which the lenders party thereto agreed to provide the Company and certain of its subsidiaries with a committed asset-based revolving credit facility (the “ABL Facility”) providing for revolving loans. The Amended and Restated Loan Agreement was subsequently amended on several occasions and as a result, the effective facility size was $80.0 million.

In March 2020, the Company paid in full all outstanding debt incurred under the ABL Facility, which the Company accounted for as a debt extinguishment in accordance with guidance in ASC 405-20, “Extinguishment of Liabilities”. As a result of the debt extinguishment, during the six months ended June 30, 2020, the Company recognized $0.8 million of unamortized debt issuance costs in interest expense and $0.6 million of additional costs in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations, in accordance with ASC 470-50, “Modifications and Extinguishments” (“ASC 470-50”).

During the three and six months ended June 30, 2021, the Company recognized no amortization of debt issuance costs and during the three and six months ended June 30, 2020, the Company recognized no amortization of debt issuance costs and $0.4 million amortization of debt issuance costs, respectively, in the accompanying condensed consolidated statements of operations.

Revolving Credit Facility

In March 2020, the Company, as guarantor, entered into a Loan and Security Agreement (the “Loan Agreement”) with Encina Business Credit, LLC (“Encina”), as agent for the lenders party thereto, and Horizon Global Americas Inc. and Cequent Towing Products of Canada Ltd., as borrowers (the “ABL Borrowers”). The Loan Agreement provides for an asset-based revolving credit facility (the “Revolving Credit Facility”) in the maximum aggregate principal amount of $75.0 million subject to customary borrowing base limitations contained therein, and may be increased at the ABL Borrowers’ request in increments of $5.0 million, up to a maximum of five times over the life of the Revolving Credit Facility, for a total increase of up to $25.0 million.

In May 2020, the Company entered into amendments, limited waivers and consents in connection with the Loan Agreement, with an effective date of April 1, 2020, that, among other things, consented to the Company’s applying for, obtaining and incurring the PPP Loan and French Loan, each as defined and described below.

In February 2021, the Company entered into a limited consent of the Loan Agreement, that among other modifications, consented to the Company’s entering into the Senior Term Loan Credit Agreement, as defined and described below.

On April 19, 2021, the Company entered into an amendment to the Loan Agreement, that among other modifications, increased the maximum amount of credit available under the Revolving Credit Facility from $75.0 million to $85.0 million. The amendment also increased sub-limits relating to the Company’s ability to borrow against in-transit inventory as well as inventory located in the Company’s Mexico facilities.

The interest on the loans under the Loan Agreement is payable in cash at the interest rate of LIBOR plus 4.00% per annum, subject to a 1.00% LIBOR floor, provided that if for any reason the loans are converted to base rate loans, interest will be paid in cash at the customary base rate plus a margin of 3.00% per annum. All interest, fees, and other monetary obligations due may, at Encina’s discretion, but upon prior notice to the ABL Borrowers, be charged to the loan account and thereafter be deemed to be part of the Revolving Credit Facility subject to the same interest rate. There are no amortization payments required under the Loan Agreement. All outstanding borrowings under the Loan Agreement mature on March 13, 2023.

All of the indebtedness under the Loan Agreement is and will be guaranteed by the Company and certain of the Company’s existing and future North American subsidiaries and is and will be secured by substantially all of the assets of the Company, such other guarantors, and the ABL Borrowers.

The Loan Agreement also contains a financial covenant that stipulates the ABL Borrowers and guarantors under the Loan Agreement will not make capital expenditures exceeding $30.0 million during any fiscal year.

Debt issuance costs of $2.3 million were incurred in connection with the Loan Agreement. These debt issuance costs will be amortized into interest expense over the contractual term of the Loan Agreement.

During the three and six months ended June 30, 2021, the Company recognized $0.1 million and $0.3 million of amortization of debt issuance costs, respectively, and during the three and six months ended June 30, 2020, the Company recognized $0.5 million and $0.7 million of amortization of debt issuance costs, respectively, in the accompanying condensed consolidated statements of operations.

As of June 30, 2021 and December 31, 2020, there was $1.0 million and $1.1 million, respectively, of unamortized debt issuance costs included in other assets in the accompanying condensed consolidated balance sheets.

As of June 30, 2021 and December 31, 2020, there was $44.2 million and $24.2 million outstanding, respectively, under the Revolving Credit Facility with a weighted average interest rate of 5.3% and 5.0%, respectively. As of June 30, 2021 and December 31, 2020, the Company had $37.3 million and $38.4 million of availability, respectively, under the Revolving Credit Facility.

As of June 30, 2021 and December 31, 2020, the Company had $1.8 million and $3.1 million, respectively, of letters of credit issued and outstanding, under the Revolving Credit Facility with no cash collateral requirement. As of June 30, 2021 and December 31, 2020, respectively, the Company also had $4.4 million and $4.9 million of other letters of credit issued and outstanding, under the Revolving Credit Facility with a cash collateral requirement. The cash collateral requirement is 105% of the outstanding letters of credit. As of June 30, 2021 and December 31, 2020, the Company had cash collateral, of $4.9 million and $5.1 million, respectively. Cash collateral is presented in restricted cash in the accompanying condensed consolidated balance sheets.

First Lien Term Loan Agreement

In June 2015, the Company entered into a credit agreement among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A. (the “Term Loan Agreement”) under which the Company borrowed an aggregate of $200.0 million (the “Original Term B Loan”). The Term Loan Agreement was subsequently amended and restated on several occasions and is collectively referred to as the “First Lien Term Loan Agreement”. The Original Term B Loan was also subsequently amended on several occasions and is collectively referred to as the “First Lien Term Loan”.

In May 2020, the Company entered into an amendment, limited waiver and consent to credit agreement with an effective date of April 1, 2020, to amend the First Lien Term Loan Agreement and to consent to the Company’s entering into, among other things, the PPP Loan and French Loan, each as defined and described below.

As a result of the Replacement Term Loan Amendment, as defined and described below, the outstanding balance and any accrued interest was replaced by the Replacement Term Loan, as defined and described below.

During the three and six months ended June 30, 2021, the Company recognized no amortization of debt issuance costs and during the three and six months ended June 30, 2020, the Company recognized $0.1 million and $0.2 million amortization of debt issuance costs, respectively, in the accompanying condensed consolidated statements of operations.

During the three and six months ended June 30, 2021, the Company recognized no paid-in-kind (“PIK”) interest and during the three and six months ended June 30, 2020, the Company recognized $0.2 million and $0.4 million of PIK interest, respectively, in the accompanying condensed consolidated statements of operations.

Second Lien Term Loan Agreement

In March 2019, the Company entered into a credit agreement (the “Second Lien Term Loan Agreement”) with Cortland Capital Markets Services LLC, as administrative agent and collateral agent, and Corre Partners Management L.L.C., as representative of the lenders, and the lenders party thereto. The Second Lien Term Loan Agreement provided for a term loan facility in the aggregate principal amount of $51.0 million.

In May 2020, the Company entered into an amendment, limited waiver and consent to credit agreement with an effective date of April 1, 2020, to amend the Second Lien Term Loan Agreement and to consent to the Company’s entering into, among other things, the PPP Loan and French Loan, each as defined and described below.

As a result of the Replacement Term Loan Amendment, as defined and described below, the outstanding balance and any accrued interest was replaced by the Replacement Term Loan, as defined and described below.

During the three and six months ended June 30, 2021, the Company recognized no amortization of debt issuance costs and during the three and six months ended June 30, 2020, the Company recognized $1.4 million and $2.7 million amortization of debt issuance costs, respectively, in the accompanying condensed consolidated statements of operations.

During the three and six months ended June 30, 2021, the Company recognized no PIK interest and during the three and six months ended June 30, 2020, the Company recognized $1.9 million and $3.3 million of PIK interest, respectively, in the accompanying condensed consolidated statements of operations.

Replacement Term Loan

In July 2020, the Company entered into the Replacement Term Loan Amendment (the “Eleventh Term Amendment”) to amend the Term Loan Agreement. The Eleventh Term Amendment provided replacement term loans (the “Replacement Term Loan”) that refinanced and replaced the outstanding balances under the First Lien Term Loan Agreement and Second Lien Term Loan Agreement, plus any accrued interest thereon.

The interest on the Replacement Term Loan was LIBOR plus 10.75% per annum, subject to a 1.00% LIBOR floor, of which 4.00% was payable in cash and the remainder of which was PIK interest (provided that the Company may elect on not more than one occasion to pay all interest as PIK interest). The Eleventh Amendment provided for a 1.00% PIK closing fee, which was added to the principal amount of the Replacement Term Loan on the closing date and provided for a prepayment penalty on the entire principal amount of the Replacement Term Loan in an amount equal to 3.0% of the aggregate principal amount prepaid prior to December 31, 2021.

In February 2021, the Company entered into the Senior Term Loan Credit Agreement, as defined and described below. The proceeds received from the initial borrowings under the Senior Term Loan Credit Agreement were used to repay in full all outstanding debt and accrued interest on the Company’s Replacement Term Loan. As a result of the repayment, the Term Loan Agreement was terminated and is no longer in effect. During the six months ended June 30, 2021, the Company recognized $11.7 million as loss on debt extinguishment in the accompanying condensed consolidated statements of operations, in accordance with ASC 470-50. Included in the loss was $8.9 million of unamortized debt issuance and others costs and a $2.8 million prepayment penalty.

During the three and six months ended June 30, 2021, the Company recognized no amortization of debt issuance costs and $0.4 million amortization of debt issuance costs, respectively, and during the three and six months ended June 30, 2020, the Company recognized no amortization of debt issuance costs in the accompanying condensed consolidated statements of operations.

As of December 31, 2020, the Company had total unamortized debt issuance and discount costs of $9.1 million, all of which were recorded as a reduction of long-term debt in the accompanying condensed consolidated balance sheets.

During the three and six months ended June 30, 2021, the Company recognized no PIK interest and $0.7 million of PIK interest, respectively, and during the three and six months ended June 30, 2020, the Company recognized no PIK interest in the accompanying condensed consolidated statements of operations.

As of December 31, 2020, the Company had $90.2 million of aggregate principal outstanding.

Senior Term Loan Credit Agreement

On February 2, 2021, the Company entered into a credit agreement (the “Senior Term Loan Credit Agreement”) with Atlantic Park Strategic Capital Fund, L.P. (“Atlantic Park”), as administrative agent and collateral agent, and the lenders party thereto (collectively, the “Lenders”). The Senior Term Loan Credit Agreement provides for an initial term loan facility in the aggregate principal amount of $100.0 million, all of which has been borrowed by the Company and was used to repay the Replacement Term Loan, as described above, and a delayed draw term loan facility in the aggregate principal amount of up to $125.0 million, which may be drawn by the Company in up to three separate borrowings through June 30, 2022. A ticking fee of 25 basis points per annum will accrue on the undrawn portion of the delayed draw term loan facility.

Interest on the Senior Term Loan Credit Agreement is payable in cash on a quarterly basis at the interest rate of LIBOR plus 7.50% per annum, subject to a 1.00% LIBOR floor. The Senior Term Loan Credit Agreement includes customary affirmative and negative covenants, including a maximum total net leverage ratio requirement tested quarterly, commencing with the fiscal quarter ending March 31, 2023, not to exceed: 6.50 to 1.00. The Senior Term Loan Credit Agreement also contains a financial covenant that stipulates the Company will not make capital expenditures exceeding $27.5 million during any fiscal year. To the extent that the amount of capital expenditures is less than $27.5 million in any fiscal year, up to 50% of the difference may be carried forward and used for capital expenditures in the immediately succeeding fiscal year.

Following a one-year no-call period, the Senior Term Loan Credit Agreement provides for a 2.5% call premium for years two through five and no premium thereafter. All outstanding borrowings under the Senior Term Loan Credit Agreement mature on February 2, 2027.

All of the indebtedness under the Senior Term Loan Credit Agreement is and will be guaranteed by the Company’s existing and future United States, Canadian and Mexican subsidiaries and certain other foreign subsidiaries and is and will be secured by substantially all of the assets of the Company and such guarantors.

Pursuant to the Senior Term Loan Credit Agreement, the Company issued warrants (the “Senior Term Loan Warrants”) to Atlantic Park to purchase in the aggregate up to 3,905,486 shares of the Company’s common stock, with an exercise price of $9.00 per share, subject to adjustment as provided in the Senior Term Loan Warrants. The Senior Term Loan Warrants are exercisable at any time prior to February 2, 2026.

In accordance with guidance in ASC 480, “Distinguishing Liabilities from Equity” (“ASC 480”) and ASC 815, “Derivatives and Hedging”, the Senior Term Loan Credit Agreement and the Senior Term Loan Warrants are each freestanding instruments and proceeds were allocated to each instrument on a relative fair value basis of $82.4 million and $17.6 million, respectively.

The Senior Term Loan Warrants are not within the scope of ASC 480 and do not meet the criteria for liability classification. However, the Senior Term Loan Warrants are determined to be indexed to the Company’s common stock and meet the requirements for equity classification pursuant to ASC 815-40, “Derivatives and Hedging - Contracts in Entity’s Own Equity”. The $17.6 million allocated to the Senior Term Loan Warrants was determined using an option pricing method and is recorded in common stock warrants in the accompanying condensed consolidated balance sheets.

Debt issuance costs of $5.4 million and original issue discount of $3.0 million were incurred in connection with entry into the Senior Term Loan Credit Agreement. The total costs of $8.4 million were allocated to each instrument on a relative fair value basis. The $7.1 million allocated to the Senior Term Loan Credit Agreement will be amortized into interest expense over the contractual term of the loan using the effective interest method and the $1.3 million allocated to the Senior Term Loan Warrants was recorded as a reduction of equity.

The Company determined the fair value of the Senior Term Loan Credit Agreement using a discount rate build up approach. The debt discount of $17.6 million created by the relative fair value allocation of the equity component is being amortized as additional non-cash interest expense using the effective interest method over the contractual term of the loan. The debt discount is recorded as a reduction of long-term debt in the accompanying condensed consolidated balance sheets.

During the three and six months ended June 30, 2021, the Company recognized $0.7 million and $1.1 million, respectively, of amortization of debt issuance and discount costs in the accompanying condensed consolidated statements of operations.

As of June 30, 2021, the Company had total unamortized debt issuance and discount costs of $23.6 million, all of which were recorded as a reduction of long-term debt in the accompanying condensed consolidated balance sheets.

As of June 30, 2021, the Company had $100.0 million aggregate principal outstanding.

Convertible Notes

In February 2017, the Company completed a public offering of 2.75% Convertible Senior Notes (the “Convertible Notes”) in an aggregate principal amount of $125.0 million. Interest is payable on January 1 and July 1 of each year, beginning on July 1, 2017. The Convertible Notes are convertible into 5,005,000 shares of the Company’s common stock, based on an initial conversion price of $24.98 per share. The Convertible Notes will mature on July 1, 2022 unless earlier converted. In connection with the issuance of the Convertible Notes, the Company entered into convertible note hedge transactions (the “Convertible Note Hedges”) in privately negotiated transactions with certain of the underwriters or their affiliates (in this capacity, the “option counterparties”). The Convertible Note Hedges provide the Company with the option to acquire, on a net settlement basis, 5,005,000 shares of its common stock, which is equal to the number of shares of common stock that notionally underlie the Convertible Notes, at a strike price of $24.98, which corresponds to the conversion price of the Convertible Notes. The Convertible Note Hedges have an expiration date that is the same as the maturity date of the Convertible Notes, subject to earlier exercise. The Convertible Note Hedges have customary anti-dilution provisions similar to the Convertible Notes.

During the second quarter of 2021, no conditions allowing holders of the Convertible Notes to convert have been met. Therefore, the Convertible Notes were not convertible during the second quarter of 2021 and are classified as long-term debt. Should conditions allowing holders of the Convertible Notes to convert be met in a future quarter, the Convertible Notes will be convertible at their holders’ option during the immediately following quarter. As of June 30, 2021, the if-converted value of the Convertible Notes did not exceed the principal value of those Convertible Notes.

Upon conversion by the holders, the Company may elect to settle such conversion in shares of its common stock, cash, or a combination thereof. Because the Company may elect to settle conversion in cash, the Company separated the Convertible Notes into their liability and equity components by allocating the issuance proceeds to each of those components in accordance with ASC 470-20. The Company first determined the fair value of the liability component by estimating the value of a similar liability that does not have an associated equity component. The Company then deducted that amount from the issuance proceeds to arrive at a residual amount, which represents the equity component. The Company accounted for the equity component as a debt discount (with an offset to paid-in capital in excess of par value). The debt discount created by the equity component is being amortized as additional non-cash interest expense using the effective interest method over the contractual term of the Convertible Notes ending on July 1, 2022.

During the three and six months ended June 30, 2021, the Company recognized total interest expense of $2.7 million and $5.3 million and during the three and six months ended June 30, 2020, the Company recognized total interest expense of $2.5 million and $5.1 million, respectively, in the accompanying condensed consolidated statements of operations. The interest expense recognized consists of contractual interest coupon, amortization of debt discount and amortization of debt issuance costs on the Convertible Notes, and is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Contractual interest coupon on convertible debt	$	860	$	870	$	1,720	$	1,740
Amortization of debt issuance costs	140		140		270		270
Amortization of "equity discount" related to debt	1,650		1,520		3,300		3,040
Total	$	2,650	$	2,530	$	5,290	$	5,050

As of June 30, 2021 and December 31, 2020, the Company had total unamortized debt issuance and discount costs of $7.9 million and $11.5 million, respectively, all of which were recorded as a reduction of long-term debt in the accompanying condensed consolidated balance sheets.

As of June 30, 2021 and December 31, 2020, the Company had $125.0 million and $125.0 million, respectively, of aggregate principal outstanding.

Paycheck Protection Program Loan

In April 2020, Horizon Global Company LLC (the “U.S. Borrower”), a direct U.S.-based subsidiary of the Company, received a loan from PNC Bank, National Association (“PNC”) for $8.7 million, pursuant to the Paycheck Protection Program (the “PPP Loan”) under Division A, Title I of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. The PPP Loan, which is in the form of a note dated April 18, 2020 issued by the U.S. Borrower, matures on April 18, 2022. Funds from the PPP Loan may be used for payroll, costs used to continue group health care benefits, rent and utilities. Under the terms of the PPP Loan, certain amounts may be forgiven if they are used for qualifying expenses as described in the CARES Act.

The Company submitted its PPP Loan application in good faith in accordance with the CARES Act and the guidance issued by the Small Business Administration (the “SBA”), including the SBA’s Paycheck Protection Program’s Frequently Asked Questions. During 2020, the Company, in accordance with the final guidance issued by the United States Department of the Treasury (the “Treasury”), met the need and sized based criteria of the program.

As of June 30, 2021, the Company has filed its application of loan forgiveness with PNC and the SBA for forgiveness of $8.0 million of the $8.7 million of funds originally received. The potential loan forgiveness is determined, subject to limitations, based on the use of loan proceeds for payment of qualifying expenses over the 24 weeks after the loan proceeds were disbursed. The unforgiven portion of the loan has an interest rate of 1.0% per annum, and in July 2021, the note was amended to make the unforgiven portion payable over five years on a monthly basis. The Company has deferred interest payments until the Company’s application for forgiveness is completed in accordance with the guidance issued by the SBA and Treasury and the terms of the Company’s PPP Loan. While we currently believe that our use of the loan proceeds will meet the conditions for forgiveness of our PPP Loan, there can be no assurance that forgiveness for any portion of the PPP Loan will be obtained.

The French Loan

In April 2020, S.I.A.R.R. SAS (the “French Borrower”), an indirect subsidiary of the Company, received a loan from BNP Paribas (the “French Loan”) for $5.5 million. On February 17, 2021, the French Borrower entered into an amendment to the French Loan. Under the terms of the amendment, the repayment of the loan was modified to monthly repayments of principal and interest beginning April 2022 through April 2026, from the original maturity of April 9, 2021. In addition, the interest rate on the French Loan was amended to a rate of 1.0% per annum and interest is payable monthly beginning April 2021.

Covenant and Liquidity Matters

The Company is in compliance with all of its financial covenants as of June 30, 2021.

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Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

The Company leases certain facilities, automobiles and equipment under non-cancellable operating leases. Our leases have remaining lease terms of one to eight years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. Leases with an initial term of twelve months or less are not recorded on the condensed consolidated balance sheets; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Most leases include one or more options to renew. The exercise of lease renewal options is typically at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use (“ROU”) assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options and when they are reasonably certain of exercise, the Company includes the renewal period in the lease term. The Company combines lease and non-lease components, which are accounted for as a single lease component as the Company has elected the practical expedient to group lease and non-lease components for all leases. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Refer to Note 3, Summary of Significant Accounting Policies, in the Company’s Annual Report on Form 10-K for the twelve months ended December 31, 2020, for more information.

Supplemental information for the Company’s leases is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Operating lease cost	$	3,760	$	3,600	$	7,630	$	7,200

	Six Months Ended June 30,
	2021		2020
Operating cash flows from operating leases	$	6,120	$	8,110
ROU assets obtained in exchange for operating lease obligations	$	540	$	2,580

	June 30, 2021		December 31, 2020
Weighted average remaining lease term (years)	5.4		6.0
Weighted average discount rate	8.4	%	8.4	%

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Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

In April 2020, the Company agreed to a settlement (the “Settlement”) related to certain intellectual property infringement claims made against one of the Company’s subsidiaries in its Horizon Europe-Africa operating segment. The Company settled all historical and future associated claims for $4.4 million to be paid evenly in semi-annual installments on June 30 and December 31 of each year through December 31, 2024. As a result of the Settlement, the Company recorded a $1.5 million charge during the first quarter of 2020 in cost of sales of the accompanying condensed consolidated statements of operations. During the three and six months ended June 30, 2021, the Company recorded $0.1 million and $0.2 million of royalties, respectively, and during the three and six months ended June 30, 2020, the Company recorded $0.2 million of royalties, all of which were recorded in cost of sales in the accompanying condensed consolidated statements of operations.

As of June 30, 2021 and December 31, 2020, the Company had recorded $0.9 million and $0.9 million, respectively, in prepaid expenses and other current assets and $1.4 million and $1.8 million, respectively, in other assets, in the accompanying condensed consolidated balance sheets related to the royalties to be recognized by the Company over the life of future programs connected to the Settlement. In addition, as of June 30, 2021 and December 31, 2020, the Company had $0.9 million and $1.0 million, respectively, in accrued liabilities and $2.4 million and $2.9 million, respectively, in other long-term liabilities, in the accompanying condensed consolidated balance sheets related to the remaining semi-annual installment payments.

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Earnings (Loss) per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings (Loss) per Share

Earnings (Loss) per Share

Basic earnings (loss) per share is computed using net income (loss) attributable to Horizon Global and the number of weighted average shares outstanding. Diluted earnings (loss) per share is computed using net income (loss) attributable to Horizon Global and the number of weighted average shares outstanding, adjusted to give effect to the assumed exercise of outstanding stock options and warrants, vesting of restricted shares outstanding, and conversion of the Convertible Notes, where dilutive to earnings per share.

A reconciliation of the numerator and the denominator of basic income (loss) per share attributable to Horizon Global and diluted income (loss) per share attributable to Horizon Global is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands, except for per share amounts)
Numerator:
Net income (loss) from continuing operations	$	960	$	(16,720)	$	(14,190)	$	(33,250)
Add: Loss from discontinued operations, net of tax	—		—		—		(500)
Less: Net loss attributable to noncontrolling interest	(330)		(380)		(670)		(670)
Net income (loss) attributable to Horizon Global	$	1,290	$	(16,340)	$	(13,520)	$	(33,080)
Denominator:
Weighted average shares outstanding, basic	27,022,652		25,618,793		26,883,818		25,509,794
Dilutive effect of common stock equivalents	5,724,551		—		—		—
Weighted average shares outstanding, diluted	32,747,203		25,618,793		26,883,818		25,509,794
Basic income (loss) per share attributable to Horizon Global
Continuing operations	$	0.05	$	(0.64)	$	(0.50)	$	(1.28)
Discontinued operations	—		—		—		(0.02)
Total	$	0.05	$	(0.64)	$	(0.50)	$	(1.30)
Diluted income (loss) per share attributable to Horizon Global
Continuing operations	$	0.04	$	(0.64)	$	(0.50)	$	(1.28)
Discontinued operations	—		—		—		(0.02)
Total	$	0.04	$	(0.64)	$	(0.50)	$	(1.30)

As a result of the net loss from continuing operations for the three months ended June 30, 2020 and six months ended June 30, 2021 and 2020, the effect of certain dilutive securities was excluded from the computation of weighted average diluted shares outstanding, as inclusion would have resulted in anti-dilution. A summary of these anti-dilutive common stock equivalents are as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Number of options	18,961	18,961	18,961	18,961
Exercise price of options	$9.20 - $11.02	$9.20 - $11.02	$9.20 - $11.02	$9.20 - $11.02
Restricted stock units	—	2,011,211	1,915,451	1,709,598
Convertible Notes	5,005,000	5,005,000	5,005,000	5,005,000
Convertible Notes warrants	5,005,000	5,005,000	5,005,000	5,005,000
Common stock warrants	3,905,486	6,443,910	8,596,184	6,443,910

For purposes of determining diluted loss per share, the Company has elected a policy to assume that the principal portion of the Convertible Notes, as described in Note 8, Long-term Debt, is settled in cash and the conversion premium is settled in shares. Therefore, the Company has adopted a policy of calculating the diluted loss per share effect of the Convertible Notes using the treasury stock method. As a result, the dilutive effect of the Convertible Notes is limited to the conversion premium, which is reflected in the calculation of diluted loss per share as if it were a freestanding written call option on the Company’s shares. Using the treasury stock method, the warrants issued in connection with the issuance of the Convertible Notes are considered to be dilutive when they are in the money relative to the Company’s average common stock price during the period. The Convertible Note Hedges purchased in connection with the issuance of the Convertible Notes are always considered to be anti-dilutive and therefore do not impact the Company’s calculation of diluted loss per share.

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Equity Awards

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Equity Awards

Equity Awards

Description of the Plans

In June 2020, the shareholders approved the Horizon Global Corporation 2020 Equity and Incentive Compensation Plan (the “Horizon 2020 Plan”). Horizon employees, non-employee directors and certain consultants participate in the Horizon 2020 Plan. The Horizon 2020 Plan authorizes the Compensation Committee of the Horizon Board of Directors to grant stock options (including “incentive stock options” as defined in Section 422 of the U.S. Internal Revenue Code), appreciation rights, restricted shares, restricted stock units, performance shares, performance stock units, cash incentive awards, dividend equivalents and certain other awards based upon terms and conditions described in the Horizon 2020 Plan. No more than 4.1 million Horizon common shares may be delivered under the Horizon 2020 Plan, plus (A) the total number of shares remaining available for awards under the Horizon 2015 Plan, as defined and described below, as of June 19, 2020, plus (B) the shares that are subject to awards granted under the Horizon 2020 Plan or the Horizon 2015 Plan that are added (or added back, as applicable) to the aggregate number of shares available under the Horizon 2020 Plan pursuant to the share counting rules of the Horizon 2020 Plan. These shares may be shares of original issuance or treasury shares, or a combination of both.

Prior to the Horizon 2020 Plan, employees and non-employee directors participated in the Horizon Global Corporation 2015 Equity and Incentive Compensation Plan (as amended and restated, the “Horizon 2015 Plan”). The Horizon 2015 Plan authorized the Compensation Committee of the Horizon Board of Directors to grant stock options (including “incentive stock options” as defined in Section 422 of the U.S. Internal Revenue Code), restricted shares, restricted stock units, performance shares, performance stock units, cash incentive awards, and certain other awards based on or related to our common stock to Horizon employees and non-employee directors.

Stock Options

Horizon’s stock option activity is as follows:

	Number of Stock Options	Weighted Average Exercise Price		Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2020	18,961	$	10.43
Granted	—	—
Exercised	—	—
Canceled, forfeited	—	—
Expired	—	—
Outstanding at June 30, 2021	18,961	$	10.43	4.5	$	—

As of June 30, 2021, there was no unrecognized compensation cost related to stock options. During the three and six months ended June 30, 2021 and 2020, there was no stock-based compensation expense recognized by the Company related to stock options. As of June 30, 2021, the aggregate intrinsic value of outstanding stock options was immaterial. Stock-based compensation expense is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

Restricted Stock Units

During the six months ended June 30, 2021, the Company granted an aggregate of 524,711 restricted stock units (“RSUs”) and performance stock units (“PSUs”) to certain key employees and non-employee directors. The total grants consisted of: (i) 83,482 RSUs that vested during the period, (ii) 153,563 time-based RSUs vesting on a ratable basis on March 1, 2022, March 1, 2023 and March 1, 2024, (iii) 230,350 PSUs vesting on April 1, 2024 and (iv) 57,316 time-based RSUs vesting on May 28, 2022.

During 2020, the Company granted an aggregate of 1,502,072 RSUs and PSUs to certain key employees and non-employee directors. The total grants consisted of: (i) 284,859 time-based RSUs vesting on a ratable basis on March 3, 2021, March 3, 2022 and March 3, 2023; (ii) 277,228 time-based RSUs vesting on June 24, 2021; (iii) 21,351 time-based RSUs vesting on a ratable basis on April 2, 2021, March 3, 2022 and March 3, 2023 and (iv) 918,634 PSUs vesting on March 3, 2023.

The performance criteria for the PSUs granted is based on the Company’s three-year cumulative EBITDA. The grant date fair values for the PSUs and RSUs are based on the closing trading price of the Company’s common stock on the date of grant.

The grant date fair value of RSUs is expensed over the vesting period. Changes in the number of RSUs outstanding for the six months ended June 30, 2021 are as follows:

	Number of Restricted Stock Units(a)	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2020	1,800,682	$	3.14
Granted	524,711	8.96
Vested	(496,565)	2.63
Canceled, forfeited	(71,669)	5.21
Outstanding at June 30, 2021	1,757,159	$	4.94

(a)Includes PSUs at 100% attainment.

As of June 30, 2021, there was $5.7 million in unrecognized compensation costs related to unvested RSUs that is expected to be recognized over a weighted-average period of 2.2 years.

During the three and six months ended June 30, 2021, the Company recognized $0.9 million and $1.7 million, respectively, of stock-based compensation expense related to RSUs, and during the three and six months ended June 30, 2020, the Company recognized $0.9 million and $1.3 million, respectively, of stock-based compensation expense related to RSUs. Stock-based compensation expense is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

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Shareholders' Equity

6 Months Ended

Jun. 30, 2021

Other Comprehensive Income [Abstract]

Shareholders' Equity

Shareholders’ Equity

Preferred Stock

The Company is authorized to issue 100,000,000 shares of preferred stock, par value of $0.01 per share. As of June 30, 2021 and December 31, 2020, there were no preferred shares outstanding.

Common Stock

The Company is authorized to issue 400,000,000 shares of Horizon Global common stock, par value of $0.01 per share. As of June 30, 2021, there were 27,970,998 shares of common stock issued and 27,284,492 shares of common stock outstanding. As of December 31, 2020, there were 27,089,673 shares of common stock issued and 26,403,167 shares of common stock outstanding.

Common Stock Warrants

In March 2019, in connection with the Second Lien Term Loan, the Company became obligated to issue detachable warrants to purchase up to 6.25 million shares of the Company’s common stock, which can be exercised on a cashless basis over a five year term with an exercise price of $1.50 per share.

In February 2021, in connection with the Senior Term Loan Credit Agreement, the Company issued the Senior Term Loan Warrants to purchase up to 3,905,486 shares of the Company’s common stock, which can be exercised on a cashless basis over a five year term with an exercise price of $9.00 per share. See Note 8, Long-term Debt, for additional information.

As of June 30, 2021, warrants to purchase 1,228,490 shares of the Company’s common stock have been exercised, resulting in the issuance of 972,924 shares of the Company’s common stock. As of June 30, 2021, warrants to purchase 9,231,146 shares of the Company’s common stock were issued and remain outstanding. During the six months ended June 30, 2021, a related-party entity, JKI Holdings, LLC, an entity owned by the chair of our board of directors, exercised in full the warrants that it originally received in connection with the March 2019 issuance described above, and paid the exercise price in cash and received 278,283 shares of common stock. During the six months ended June 30, 2021, the Company recognized $0.3 million of non-cash transactions in connection with warrants exercised.

Accumulated Other Comprehensive Income (Loss) (“AOCI”)

The change in AOCI attributable to Horizon Global by component, net of tax, for the six months ended June 30, 2021 is as follows:

	Foreign Currency Translation and Other
	(dollars in thousands)
Balance at January 1, 2021	$	(6,540)
Net unrealized losses arising during the period	(2,420)
Net change	(2,420)
Balance at June 30, 2021	$	(8,960)

The change in AOCI attributable to Horizon Global by component, net of tax, for the six months ended June 30, 2020 is as follows:

	Foreign Currency Translation and Other
	(dollars in thousands)
Balance at January 1, 2020	$	(9,790)
Net unrealized losses arising during the period	(2,300)
Net change	(2,300)
Balance at June 30, 2020	$	(12,090)

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Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company groups its business into operating segments generally by the region in which sales and manufacturing efforts are focused, which are grouped on the basis of similar product, market and operating factors. Each operating segment has discrete financial information evaluated regularly by the Company’s chief operating decision maker in determining resource allocation and assessing performance. The Company reports the results of its business in two operating segments: Horizon Americas and Horizon Europe-Africa. Horizon Americas is comprised of the Company’s North American operations, and prior to the Brazil Sale also included the Company’s South American operations. Horizon Europe-Africa is comprised of the Company’s European and South African operations. See below for further information regarding the types of products and services provided within each operating segment.

The Company previously had a third operating segment, Horizon Asia-Pacific (“APAC”); however, the APAC segment was sold on September 19, 2019, and is presented as a discontinued operation in the accompanying condensed consolidated financial statements. During the first quarter of 2020, the remaining post-closing conditions of the sale were completed, resulting in a true up to net cash proceeds, which were recognized as a loss on sale of discontinued operations of $0.5 million in accordance with Accounting Standards Codification 205, “Discontinued Operations”.

Horizon Americas - A market leader in the design, manufacture and distribution of a wide variety of high-quality, custom engineered towing, trailering and cargo management products and related accessories. These products are designed to support automotive OEMs, automotive OESs, aftermarket and retail customers in the agricultural, automotive, construction, industrial, marine, military, recreational vehicle, trailer and utility end markets. Products include brake controllers, cargo management, heavy-duty towing products, jacks and couplers, protection/securing systems, trailer structural and electrical components, tow bars, vehicle roof racks, vehicle trailer hitches and additional accessories.

Horizon Europe‑Africa - With a product offering similar to Horizon Americas, Horizon Europe-Africa focuses its sales and manufacturing efforts in the Europe and Africa regions of the world.

The Company’s operating segment activity is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Net Sales
Horizon Americas	$	128,380	$	74,120	$	238,210	$	166,490
Horizon Europe-Africa	93,740		46,370		183,100		117,250
Total	$	222,120	$	120,490	$	421,310	$	283,740
Operating Profit (Loss)
Horizon Americas	$	16,760	$	3,430	$	28,600	$	6,160
Horizon Europe-Africa	1,240		(5,970)		2,700		(8,480)
Corporate	(6,670)		(5,430)		(13,190)		(12,330)
Total	$	11,330	$	(7,970)	$	18,110	$	(14,650)

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Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

At the end of each interim reporting period, the Company makes an estimate of the annual effective income tax rate. Tax items included in the annual effective income tax rate are pro-rated for the full year and tax items discrete to a specific quarter are included in the effective income tax rate for that quarter. Effective tax rates vary from period to period as separate calculations are performed for those countries where the Company's operations are profitable and whose results continue to be tax-effected and for those countries where full deferred tax valuation allowances exist and are maintained. In determining the estimated annual effective tax rate, the Company analyzes various factors, including but not limited to, forecasts of projected annual earnings, taxing jurisdictions in which the pretax income and/or pretax losses will be generated, available tax planning strategies.

During the three and six months ended June 30, 2021, the effective income tax rate was 59.3% and (20.4)%, respectively. During the three and six months ended June 30, 2020, the effective income tax rate was (0.5)% and (0.2)%, respectively. The differences in the effective tax rate compared to the statutory tax rate is attributable to the valuation allowance recorded in the U.S. and several foreign jurisdictions, which resulted in no income tax benefit recognized for jurisdictional pretax losses, and therefore, are excluded from the estimated effective tax rate.

The Company evaluates the realizability of its deferred tax assets on a quarterly basis. In completing this evaluation, the Company considers all available evidence in order to determine whether, based on the weight of the evidence, a valuation allowance is necessary. Full valuation allowances that are recorded for deferred tax assets in the U.S. and certain foreign jurisdictions will be maintained until sufficient positive evidence exists to reduce or eliminate them. The factors considered by management in its determination of the probability of the realization of the deferred tax assets include, but are not limited to, recent historical financial results, historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences, tax planning strategies. If, based upon the weight of available evidence, it is more likely than not the deferred tax assets will not be realized, a valuation allowance is recorded. The Company has recently experienced pre-tax losses. As of June 30, 2021, the Company believes that it is more likely than not that the recorded deferred tax assets will be realized.

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Other Expenses, Net

6 Months Ended

Jun. 30, 2021

Other Income and Expenses [Abstract]

Other Expenses, Net

Other Expense, Net

Other expense, net consists of the following components:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Loss on sale of business	$	(2,230)	$	—	$	(2,230)	$	—
Foreign currency gain (loss)	460		(220)		(1,650)		(1,750)
Customer pay discounts	(260)		(270)		(500)		(540)
Other, net	40		40		160		170
Total	$	(1,990)	$	(450)	$	(4,220)	$	(2,120)

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New Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Standards Update and Change in Accounting Principle [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

New accounting pronouncements not yet adopted

In May 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-04, “Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40)” (“ASU 2021-04”). ASU 2021-04 provides guidance on modifications or exchanges of a freestanding equity-classified written call option that is not within the scope of other accounting standards. Under this guidance, an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument. ASU 2021-04 provides further guidance on measuring the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange. ASU 2021-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2021, with early adoption permitted. We are currently assessing the impact of this update on the Company’s condensed consolidated financial statements. The standard is not expected to have a significant impact on the Company's condensed consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for convertible instruments by removing certain separation models in Accounting Standards Codification (“ASC”) 470-20, “Debt—Debt with Conversion and Other Options,” (“ASC 470-20”) for convertible instruments. Under ASU 2020-06, the embedded conversion features no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under ASC 815, “Derivatives and Hedging,” or that do not result in substantial premiums accounted for as paid-in capital. For smaller reporting companies, ASU 2020-06 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2023, with early adoption permitted for fiscal years beginning after December 15, 2020. We are currently assessing the impact of this update on the Company’s condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides temporary optional guidance to ease the potential burden in accounting for (or recognize the effects of) reference rate reform on financial reporting. The relief provided by this guidance is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform initiatives being undertaken in an effort to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The optional amendments of this guidance are effective for all entities upon adoption. We are currently assessing the impact of this update on the Company’s condensed consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 replaces the current incurred loss model guidance with a new method that reflects expected credit losses. Under this guidance, an entity would recognize an allowance for credit losses equal to its estimate of expected credit losses on financial assets measured at amortized cost. In November 2019, the FASB extended the effective date of ASU 2016-13 for smaller reporting companies. As a result, ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022, with early adoption permitted. The standard is not expected to have a significant impact on the Company's condensed consolidated financial statements.

Accounting pronouncements recently adopted

There were no new accounting pronouncements adopted during the six months ended June 30, 2021.

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Revenues (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Schedule of Net Sales Disaggregated by Major Sales Channels

The Company’s net sales by segment and disaggregated by major sales channel are as follows:

	Three Months Ended June 30, 2021
	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Net Sales
Aftermarket	$	40,560	$	26,130	$	66,690
Automotive OEM	22,650		44,190		66,840
Automotive OES	4,240		19,970		24,210
Retail	32,610		—		32,610
E-commerce	19,730		1,960		21,690
Industrial	8,590		630		9,220
Other	—		860		860
Total	$	128,380	$	93,740	$	222,120

	Three Months Ended June 30, 2020
	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Net Sales
Aftermarket	$	22,280	$	16,680	$	38,960
Automotive OEM	9,510		20,620		30,130
Automotive OES	1,080		7,720		8,800
Retail	22,830		—		22,830
E-commerce	13,370		230		13,600
Industrial	5,040		340		5,380
Other	10		780		790
Total	$	74,120	$	46,370	$	120,490

	Six Months Ended June 30, 2021
	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Net Sales
Aftermarket	$	72,250	$	48,550	$	120,800
Automotive OEM	50,170		92,750		142,920
Automotive OES	8,100		36,030		44,130
Retail	55,190		—		55,190
E-commerce	34,250		3,390		37,640
Industrial	18,250		1,180		19,430
Other	—		1,200		1,200
Total	$	238,210	$	183,100	$	421,310

	Six Months Ended June 30, 2020
	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Net Sales
Aftermarket	$	49,050	$	32,390	$	81,440
Automotive OEM	29,870		62,020		91,890
Automotive OES	2,350		20,180		22,530
Retail	46,400		—		46,400
E-commerce	25,880		660		26,540
Industrial	12,890		660		13,550
Other	50		1,340		1,390
Total	$	166,490	$	117,250	$	283,740

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in the carrying amount of goodwill are as follows:

	Horizon Americas		Horizon Europe-Africa		Total
	(dollars in thousands)
Balance at January 1, 2021	$	3,360	$	—	$	3,360
Divestiture of business	(3,340)		—		(3,340)
Foreign currency translation	(20)		—		(20)
Balance at June 30, 2021	$	—	$	—	$	—

Schedule of Intangible Assets (excluding Goodwill) by Major Class

The gross carrying amounts and accumulated amortization of the Company’s other intangible assets are as follows:

	June 30, 2021
Intangible Category by Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(dollars in thousands)
Finite-lived intangible assets:
Customer relationships (2 – 20 years)	$	163,860	$	(135,960)	$	27,900
Technology and other (3 – 15 years)	23,000		(17,300)		5,700
Trademark/Trade names (1 – 8 years)	150		(150)		—
Sub-total	187,010		(153,410)		33,600
Trademark/Trade names, indefinite-lived	21,290		—		21,290
Total	$	208,300	$	(153,410)	$	54,890

	December 31, 2020
Intangible Category by Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(dollars in thousands)
Finite-lived intangible assets:
Customer relationships (2 – 20 years)	$	166,420	$	(135,140)	$	31,280
Technology and other (3 – 15 years)	22,250		(16,710)		5,540
Trademark/Trade names (1 – 8 years)	150		(150)		—
Sub-total	188,820		(152,000)		36,820
Trademark/Trade names, indefinite-lived	21,410		—		21,410
Total	$	210,230	$	(152,000)	$	58,230

Schedule of Finite-Lived Intangible Assets, Amortization Expense

Amortization expense related to other intangible assets is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Technology and other, included in cost of sales	$	580	$	550	$	780	$	670
Customer relationships, included in selling, general and administrative expenses	1,090		1,310		2,190		2,760
Total	$	1,670	$	1,860	$	2,970	$	3,430

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Inventories (Tables)

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventories consist of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Finished goods	$	72,680	$	58,600
Work in process	16,170		13,070
Raw materials	55,510		43,650
Total	$	144,360	$	115,320

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Property and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment, net consists of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Land and land improvements	$	500	$	520
Buildings	23,010		23,040
Machinery and equipment	140,110		134,750
Gross property and equipment	163,620		158,310
Accumulated depreciation	(90,100)		(84,220)
Total	$	73,520	$	74,090

Depreciation Expense

Depreciation expense is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Depreciation expense, included in cost of sales	$	3,270	$	3,260	$	7,130	$	6,410
Depreciation expense, included in selling, general and administrative expenses	280		350		620		690
Total	$	3,550	$	3,610	$	7,750	$	7,100

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Accrued and Other Long-term Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Accrued Liabilities [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consist of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Customer incentives	$	17,140	$	15,870
Accrued compensation	12,370		12,130
Short-term tax liabilities	6,640		5,570
Customer claims	3,680		6,520
Accrued professional services	2,070		1,510
Litigation settlements	1,100		1,600
Restructuring	120		650
Deferred purchase price	—		1,370
Other	16,630		13,880
Total	$	59,750	$	59,100

Other long-term liabilities consist of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Litigation settlements	$	2,370	$	2,930
Long-term tax liabilities	380		130
Deferred purchase price	—		1,650
Restructuring	—		1,070
Other	8,250		8,780
Total	$	11,000	$	14,560

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Long-term Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of Debt

The Company’s long-term debt consists of the following components:

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Revolving Credit Facility	$	44,230	$	24,230
Senior Term Loan	100,000		—
Replacement Term Loan	—		90,210
Convertible Notes	125,000		125,000
Paycheck Protection Program Loan	8,670		8,670
Bank facilities, capital leases and other long-term debt	18,130		17,970
Gross debt	296,030		266,080
Less:
Short-term borrowings and current maturities, long-term debt	11,990		14,120
Gross long-term debt	284,040		251,960
Less:
Unamortized debt issuance costs and original issuance discount on Senior Term Loan	23,550		—
Unamortized debt issuance costs and original issuance discount on Replacement Term Loan	—		9,100
Unamortized debt issuance costs and discount on Convertible Notes	7,910		11,470
Unamortized debt issuance costs and discount	31,460		20,570
Total	$	252,580	$	231,390

Interest Income and Interest Expense Disclosure

The interest expense recognized consists of contractual interest coupon, amortization of debt discount and amortization of debt issuance costs on the Convertible Notes, and is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Contractual interest coupon on convertible debt	$	860	$	870	$	1,720	$	1,740
Amortization of debt issuance costs	140		140		270		270
Amortization of "equity discount" related to debt	1,650		1,520		3,300		3,040
Total	$	2,650	$	2,530	$	5,290	$	5,050

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Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Schedule of Lease Costs

Supplemental information for the Company’s leases is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Operating lease cost	$	3,760	$	3,600	$	7,630	$	7,200

	Six Months Ended June 30,
	2021		2020
Operating cash flows from operating leases	$	6,120	$	8,110
ROU assets obtained in exchange for operating lease obligations	$	540	$	2,580

	June 30, 2021		December 31, 2020
Weighted average remaining lease term (years)	5.4		6.0
Weighted average discount rate	8.4	%	8.4	%

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Earnings (Loss) per Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands, except for per share amounts)
Numerator:
Net income (loss) from continuing operations	$	960	$	(16,720)	$	(14,190)	$	(33,250)
Add: Loss from discontinued operations, net of tax	—		—		—		(500)
Less: Net loss attributable to noncontrolling interest	(330)		(380)		(670)		(670)
Net income (loss) attributable to Horizon Global	$	1,290	$	(16,340)	$	(13,520)	$	(33,080)
Denominator:
Weighted average shares outstanding, basic	27,022,652		25,618,793		26,883,818		25,509,794
Dilutive effect of common stock equivalents	5,724,551		—		—		—
Weighted average shares outstanding, diluted	32,747,203		25,618,793		26,883,818		25,509,794
Basic income (loss) per share attributable to Horizon Global
Continuing operations	$	0.05	$	(0.64)	$	(0.50)	$	(1.28)
Discontinued operations	—		—		—		(0.02)
Total	$	0.05	$	(0.64)	$	(0.50)	$	(1.30)
Diluted income (loss) per share attributable to Horizon Global
Continuing operations	$	0.04	$	(0.64)	$	(0.50)	$	(1.28)
Discontinued operations	—		—		—		(0.02)
Total	$	0.04	$	(0.64)	$	(0.50)	$	(1.30)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

A summary of these anti-dilutive common stock equivalents are as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Number of options	18,961	18,961	18,961	18,961
Exercise price of options	$9.20 - $11.02	$9.20 - $11.02	$9.20 - $11.02	$9.20 - $11.02
Restricted stock units	—	2,011,211	1,915,451	1,709,598
Convertible Notes	5,005,000	5,005,000	5,005,000	5,005,000
Convertible Notes warrants	5,005,000	5,005,000	5,005,000	5,005,000
Common stock warrants	3,905,486	6,443,910	8,596,184	6,443,910

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Equity Awards (Tables)

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity

	Number of Stock Options	Weighted Average Exercise Price		Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2020	18,961	$	10.43
Granted	—	—
Exercised	—	—
Canceled, forfeited	—	—
Expired	—	—
Outstanding at June 30, 2021	18,961	$	10.43	4.5	$	—

Schedule of Share-based Compensation, Restricted Stock Units Award Activity

Changes in the number of RSUs outstanding for the six months ended June 30, 2021 are as follows:

	Number of Restricted Stock Units(a)	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2020	1,800,682	$	3.14
Granted	524,711	8.96
Vested	(496,565)	2.63
Canceled, forfeited	(71,669)	5.21
Outstanding at June 30, 2021	1,757,159	$	4.94

(a)Includes PSUs at 100% attainment.

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Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2021

Other Comprehensive Income [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The change in AOCI attributable to Horizon Global by component, net of tax, for the six months ended June 30, 2021 is as follows:

	Foreign Currency Translation and Other
	(dollars in thousands)
Balance at January 1, 2021	$	(6,540)
Net unrealized losses arising during the period	(2,420)
Net change	(2,420)
Balance at June 30, 2021	$	(8,960)

The change in AOCI attributable to Horizon Global by component, net of tax, for the six months ended June 30, 2020 is as follows:

	Foreign Currency Translation and Other
	(dollars in thousands)
Balance at January 1, 2020	$	(9,790)
Net unrealized losses arising during the period	(2,300)
Net change	(2,300)
Balance at June 30, 2020	$	(12,090)

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Net Sales
Horizon Americas	$	128,380	$	74,120	$	238,210	$	166,490
Horizon Europe-Africa	93,740		46,370		183,100		117,250
Total	$	222,120	$	120,490	$	421,310	$	283,740
Operating Profit (Loss)
Horizon Americas	$	16,760	$	3,430	$	28,600	$	6,160
Horizon Europe-Africa	1,240		(5,970)		2,700		(8,480)
Corporate	(6,670)		(5,430)		(13,190)		(12,330)
Total	$	11,330	$	(7,970)	$	18,110	$	(14,650)

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Other Expenses, Net (Tables)

6 Months Ended

Jun. 30, 2021

Other Income and Expenses [Abstract]

Schedule of Other Expense, Net

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(dollars in thousands)
Loss on sale of business	$	(2,230)	$	—	$	(2,230)	$	—
Foreign currency gain (loss)	460		(220)		(1,650)		(1,750)
Customer pay discounts	(260)		(270)		(500)		(540)
Other, net	40		40		160		170
Total	$	(1,990)	$	(450)	$	(4,220)	$	(2,120)

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Revenues - Schedule of Net Sales Disaggregated by Major Sales Channels (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 222,120	$ 120,490	$ 421,310	$ 283,740
Aftermarket
Disaggregation of Revenue [Line Items]
Net sales	66,690	38,960	120,800	81,440
Automotive OEM
Disaggregation of Revenue [Line Items]
Net sales	66,840	30,130	142,920	91,890
Automotive OES
Disaggregation of Revenue [Line Items]
Net sales	24,210	8,800	44,130	22,530
Retail
Disaggregation of Revenue [Line Items]
Net sales	32,610	22,830	55,190	46,400
E-commerce
Disaggregation of Revenue [Line Items]
Net sales	21,690	13,600	37,640	26,540
Industrial
Disaggregation of Revenue [Line Items]
Net sales	9,220	5,380	19,430	13,550
Other
Disaggregation of Revenue [Line Items]
Net sales	860	790	1,200	1,390
Horizon Americas
Disaggregation of Revenue [Line Items]
Net sales	128,380	74,120	238,210	166,490
Horizon Americas | Aftermarket
Disaggregation of Revenue [Line Items]
Net sales	40,560	22,280	72,250	49,050
Horizon Americas | Automotive OEM
Disaggregation of Revenue [Line Items]
Net sales	22,650	9,510	50,170	29,870
Horizon Americas | Automotive OES
Disaggregation of Revenue [Line Items]
Net sales	4,240	1,080	8,100	2,350
Horizon Americas | Retail
Disaggregation of Revenue [Line Items]
Net sales	32,610	22,830	55,190	46,400
Horizon Americas | E-commerce
Disaggregation of Revenue [Line Items]
Net sales	19,730	13,370	34,250	25,880
Horizon Americas | Industrial
Disaggregation of Revenue [Line Items]
Net sales	8,590	5,040	18,250	12,890
Horizon Americas | Other
Disaggregation of Revenue [Line Items]
Net sales	0	10	0	50
Horizon Europe-Africa
Disaggregation of Revenue [Line Items]
Net sales	93,740	46,370	183,100	117,250
Horizon Europe-Africa | Aftermarket
Disaggregation of Revenue [Line Items]
Net sales	26,130	16,680	48,550	32,390
Horizon Europe-Africa | Automotive OEM
Disaggregation of Revenue [Line Items]
Net sales	44,190	20,620	92,750	62,020
Horizon Europe-Africa | Automotive OES
Disaggregation of Revenue [Line Items]
Net sales	19,970	7,720	36,030	20,180
Horizon Europe-Africa | Retail
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Horizon Europe-Africa | E-commerce
Disaggregation of Revenue [Line Items]
Net sales	1,960	230	3,390	660
Horizon Europe-Africa | Industrial
Disaggregation of Revenue [Line Items]
Net sales	630	340	1,180	660
Horizon Europe-Africa | Other
Disaggregation of Revenue [Line Items]
Net sales	$ 860	$ 780	$ 1,200	$ 1,340

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Goodwill and Other Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Balance at January 1, 2021		$ 3,360
Divestiture of business	$ (3,340)
Foreign currency translation	(20)
Balance at June 30, 2021	0
Horizon Americas
Goodwill [Roll Forward]
Balance at January 1, 2021		3,360
Divestiture of business	(3,340)
Foreign currency translation	(20)
Balance at June 30, 2021	0
Horizon Europe-Africa
Goodwill [Roll Forward]
Balance at January 1, 2021		$ 0
Divestiture of business	0
Foreign currency translation	0
Balance at June 30, 2021	$ 0

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Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands		6 Months Ended
	Jun. 08, 2021	Jun. 30, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Goodwill written off due to divestiture of business		$ 3,340
Horizon Americas
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Goodwill written off due to divestiture of business		$ 3,340
Discontinued Operations, Disposed of by Sale | Brazil Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from sale	$ 2,200
Discontinued Operations, Disposed of by Sale | Brazil Sale | Horizon Americas
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Goodwill written off due to divestiture of business	$ 3,300

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Goodwill and Other Intangible Assets - Schedule of Intangible Assets (excluding Goodwill) by Major Class (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Intangible Assets, excluding Goodwill [Line Items]
Finite-lived intangible assets, gross carrying amount	$ 187,010	$ 188,820
Finite-lived intangible assets, accumulated amortization	(153,410)	(152,000)
Finite-lived intangible assets, net	33,600	36,820
Total other intangible assets, gross	208,300	210,230
Total other intangible assets, net	54,890	58,230
Trademarks and Trade Names
Intangible Assets, excluding Goodwill [Line Items]
Indefinite-lived intangible assets, gross carrying amount	21,290	21,410
Useful Life Two To Twenty Years | Customer Relationships
Intangible Assets, excluding Goodwill [Line Items]
Finite-lived intangible assets, gross carrying amount	163,860	166,420
Finite-lived intangible assets, accumulated amortization	(135,960)	(135,140)
Finite-lived intangible assets, net	27,900	31,280
Useful Life Three to Fifteen Years | Technology and Other
Intangible Assets, excluding Goodwill [Line Items]
Finite-lived intangible assets, gross carrying amount	23,000	22,250
Finite-lived intangible assets, accumulated amortization	(17,300)	(16,710)
Finite-lived intangible assets, net	5,700	5,540
Useful Life One To Eight Years | Trademarks and Trade Names
Intangible Assets, excluding Goodwill [Line Items]
Finite-lived intangible assets, gross carrying amount	150	150
Finite-lived intangible assets, accumulated amortization	(150)	(150)
Finite-lived intangible assets, net	$ 0	$ 0
Minimum | Useful Life Two To Twenty Years | Customer Relationships
Intangible Assets, excluding Goodwill [Line Items]
Useful life of intangible assets	2 years	2 years
Minimum | Useful Life Three to Fifteen Years | Technology and Other
Intangible Assets, excluding Goodwill [Line Items]
Useful life of intangible assets	3 years	3 years
Minimum | Useful Life One To Eight Years | Trademarks and Trade Names
Intangible Assets, excluding Goodwill [Line Items]
Useful life of intangible assets	1 year	1 year
Maximum | Useful Life Two To Twenty Years | Customer Relationships
Intangible Assets, excluding Goodwill [Line Items]
Useful life of intangible assets	20 years	20 years
Maximum | Useful Life Three to Fifteen Years | Technology and Other
Intangible Assets, excluding Goodwill [Line Items]
Useful life of intangible assets	15 years	15 years
Maximum | Useful Life One To Eight Years | Trademarks and Trade Names
Intangible Assets, excluding Goodwill [Line Items]
Useful life of intangible assets	8 years	8 years

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Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Amortization of Intangible Assets [Line Items]
Amortization of intangible assets	$ 1,670	$ 1,860	$ 2,970	$ 3,430
Cost of sales | Technology and Other
Amortization of Intangible Assets [Line Items]
Amortization of intangible assets	580	550	780	670
Selling, general and administrative expenses | Customer Relationships
Amortization of Intangible Assets [Line Items]
Amortization of intangible assets	$ 1,090	$ 1,310	$ 2,190	$ 2,760

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Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Finished goods	$ 72,680	$ 58,600
Work in process	16,170	13,070
Raw materials	55,510	43,650
Total	$ 144,360	$ 115,320

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Property and Equipment, Net - Property and Equipment Table (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 163,620	$ 158,310
Less: Accumulated depreciation	(90,100)	(84,220)
Property and equipment, net	73,520	74,090
Land and land improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	500	520
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	23,010	23,040
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 140,110	$ 134,750

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Property and Equipment, Net - Depreciation Expense Table (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Depreciation Expense [Line Items]
Depreciation expense	$ 3,550	$ 3,610	$ 7,750	$ 7,100
Cost of sales
Depreciation Expense [Line Items]
Depreciation expense	3,270	3,260	7,130	6,410
Selling, general and administrative expenses
Depreciation Expense [Line Items]
Depreciation expense	$ 280	$ 350	$ 620	$ 690

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Accrued and Other Long-term Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accrued Liabilities [Abstract]
Customer incentives	$ 17,140	$ 15,870
Accrued compensation	12,370	12,130
Short-term tax liabilities	6,640	5,570
Customer claims	3,680	6,520
Accrued professional services	2,070	1,510
Litigation settlements	1,100	1,600
Restructuring	120	650
Deferred purchase price	0	1,370
Other	16,630	13,880
Total	$ 59,750	$ 59,100

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Accrued and Other Long-term Liabilities - Long-term Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accrued Liabilities [Abstract]
Litigation settlements	$ 2,370	$ 2,930
Long-term tax liabilities	380	130
Deferred purchase price	0	1,650
Restructuring	0	1,070
Other	8,250	8,780
Total	$ 11,000	$ 14,560

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Long-term Debt - Debt Table (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Gross long-term debt	$ 296,030	$ 266,080
Short-term borrowings and current maturities, long-term debt	11,990	14,120
Gross long-term debt	284,040	251,960
Less: Unamortized debt issuance costs and discount	31,460	20,570
Long-term debt	252,580	231,390
Revolving Credit Facility
Debt Instrument [Line Items]
Gross long-term debt	44,230	24,230
Senior Term Loan
Debt Instrument [Line Items]
Gross long-term debt	100,000	0
Less: Unamortized debt issuance costs and discount	23,550	0
Replacement Term Loan
Debt Instrument [Line Items]
Gross long-term debt	0	90,210
Less: Unamortized debt issuance costs and discount	0	9,100
Convertible notes
Debt Instrument [Line Items]
Gross long-term debt	125,000	125,000
Less: Unamortized debt issuance costs and discount	7,910	11,470
Paycheck Protection Plan
Debt Instrument [Line Items]
Gross long-term debt	8,670	8,670
Bank facilities, capital leases and other long-term debt
Debt Instrument [Line Items]
Gross long-term debt	$ 18,130	$ 17,970

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Long-term Debt - ABL Facility (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Apr. 19, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 22, 2015
Debt Instrument [Line Items]
Gross long-term debt	$ 296,030,000		$ 296,030,000			$ 266,080,000
Revolving Credit Facility, ABL Facility
Debt Instrument [Line Items]
Aggregate principal								$ 80,000,000.0
Amortization of debt issuance costs	0	$ 0	0	$ 400,000
Debt extinguishment related to unamortized debt issuance costs in interest expense				800,000
Costs associated with extinguishment of debt				600,000
Remaining borrowing capacity						38,400,000
Revolving Credit Facility
Debt Instrument [Line Items]
Aggregate principal					$ 85,000,000.0		$ 75,000,000.0
Debt issuance costs	2,300,000		2,300,000
Amortization of debt issuance costs	100,000	$ 500,000	300,000	$ 700,000
Gross long-term debt	44,230,000		44,230,000			24,230,000
Total letters of credit outstanding	$ 1,800,000		$ 1,800,000			$ 3,100,000
Percentage of cash collateral required	105.00%		105.00%
Remaining borrowing capacity	$ 37,300,000		$ 37,300,000

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Long-term Debt - Revolving Credit Facility (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Apr. 19, 2021	Dec. 31, 2020	Dec. 22, 2015
Debt Instrument [Line Items]
Gross long-term debt		$ 296,030,000		$ 296,030,000			$ 266,080,000
Revolving Credit Facility
Debt Instrument [Line Items]
Weighted average interest rate		5.30%		5.30%
Aggregate principal	$ 75,000,000.0					$ 85,000,000.0
Incremental increase in borrowing capacity	5,000,000.0
Maximum incremental increase in borrowing capacity available	$ 25,000,000.0
Maximum capital expenditures under covenant		$ 30,000,000.0		$ 30,000,000.0
Debt issuance costs		2,300,000		2,300,000
Amortization of debt issuance costs		100,000	$ 500,000	300,000	$ 700,000
Gross long-term debt		44,230,000		44,230,000			24,230,000
Remaining borrowing capacity		37,300,000		37,300,000
Total letters of credit outstanding		$ 1,800,000		$ 1,800,000			3,100,000
Percentage of cash collateral required		105.00%		105.00%
Debt Instrument, Collateral Amount		$ 4,900,000		$ 4,900,000			5,100,000
Revolving Credit Facility | Other Letter Of Credit
Debt Instrument [Line Items]
Total letters of credit outstanding		4,400,000		4,400,000			$ 4,900,000
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	4.00%
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Revolving Credit Facility | Base Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	3.00%
Revolving Credit Facility, ABL Facility
Debt Instrument [Line Items]
Weighted average interest rate							5.00%
Aggregate principal								$ 80,000,000.0
Amortization of debt issuance costs		$ 0	$ 0	$ 0	$ 400,000
Remaining borrowing capacity							$ 38,400,000

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Long-term Debt - First Lien Term Loans (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Jun. 30, 2015
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ 1,000,000.0		$ 1,000,000.0		$ 1,100,000
Paid-in-kind interest			650,000	$ 3,660,000
First Lien Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount						$ 200,000,000.0
Amortization of debt issuance costs	0	$ 100,000	0	200,000
Paid-in-kind interest	$ 0	$ 200,000	$ 0	$ 400,000

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Long-term Debt - Second Lien Term Loan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2019
Short-term Debt [Line Items]
Paid-in-kind interest			$ 650	$ 3,660
Second Lien Term Loan
Short-term Debt [Line Items]
Debt instrument, face amount					$ 51,000
Amortization of debt issuance costs	$ 0	$ 1,400	0	2,700
Paid-in-kind interest	$ 0	$ 1,900	$ 0	$ 3,300

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Long-term Debt - Replacement Term Loan (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Jul. 06, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Short-term Debt [Line Items]
Paid-in-kind interest				$ 650	$ 3,660
Loss on debt extinguishment		$ 0	$ 0	11,650	0
Replacement Term Loan
Short-term Debt [Line Items]
Debt instrument, face amount						$ 90,200
Amortization of debt issuance costs		0	0	400	0
Unamortized debt discount and issuance costs						$ 9,100
Paid in kind interest rate, closing fee	1.00%
Prepayment penalty as a percentage of aggregate principal	3.00%
Paid-in-kind interest		$ 0	$ 0	700	$ 0
Effective interest rate	4.00%
Loss on debt extinguishment				11,700
Write off of debt issuance costs				8,900
Other costs				$ 2,800
Replacement Term Loan | London Interbank Offered Rate (LIBOR) [Member]
Short-term Debt [Line Items]
Basis spread on variable rate	10.75%
Replacement Term Loan | London Interbank Offered Rate (LIBOR) [Member] | Minimum
Short-term Debt [Line Items]
Basis spread on variable rate	1.00%

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Long-term Debt - Senior Term Loan (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	6 Months Ended
	Feb. 02, 2021	Jun. 30, 2021	Jun. 30, 2021	Feb. 28, 2021	Dec. 31, 2020	Mar. 31, 2019
Debt Instrument [Line Items]
Issued warrants (in shares)		9,231,146	9,231,146		5,815,039
Exercise price of warrants (in usd per share)				$ 9.00		$ 1.50
Unamortized debt issuance costs		$ 1,000	$ 1,000		$ 1,100
Gross long-term debt		296,030	296,030		266,080
Senior Term Loan
Debt Instrument [Line Items]
Aggregate principal	$ 100,000
Incremental borrowing base	$ 125,000
Line Of Credit, Ticking Fee Percentage	2500.00%
Issued warrants (in shares)	3,905,486
Exercise price of warrants (in usd per share)	$ 9.00
Debt issuance costs	$ 5,400
Long-term Debt, Fair Value	82,400
Initial debt issuance costs	3,000
Total Debt Issuance Costs, Net	8,400
Unamortized debt discount and issuance costs		23,600	23,600
Unamortized debt issuance costs	$ 7,100
Amortization of debt issuance costs		700	1,100
Gross long-term debt		$ 100,000	100,000		$ 0
Senior Term Loan | Debt Instrument, Secured Net Leverage Ratio
Debt Instrument [Line Items]
Secured Net Leverage Ratio	6.50
Senior Term Loan | Debt Instrument, Capital Expenditures Covenant
Debt Instrument [Line Items]
Maximum capital expenditures allowed under financial covenant	$ 27,500
Line of Credit Facility, Carryforward Amount, Percent	50.00%
Senior Term Loan | Debt Instrument, Call Premium
Debt Instrument [Line Items]
Debt Instrument, Call Premium, Percent	2.50%
Senior Term Loan Warrants
Debt Instrument [Line Items]
Warrants Not Settleable in Cash, Fair Value Disclosure	$ 17,600
Amortization of "equity discount" related to debt			$ 1,300
London Interbank Offered Rate (LIBOR) [Member] | Senior Term Loan
Debt Instrument [Line Items]
Basis spread on variable rate	7.50%
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Senior Term Loan
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%

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Long-term Debt - Convertible Notes (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Gross long-term debt		$ 296,030,000		$ 296,030,000		$ 266,080,000
Unamortized debt issuance costs and discount		31,460,000		31,460,000		20,570,000
Revolving Credit Facility
Debt Instrument [Line Items]
Gross long-term debt		44,230,000		44,230,000		24,230,000
Convertible notes
Debt Instrument [Line Items]
Gross long-term debt		125,000,000.0		125,000,000.0		125,000,000
Interest rate	2.75%
Debt instrument, face amount	$ 125,000,000.0
Share issued upon conversion (in shares)	5,005,000
Conversion price (in dollars per share)	$ 24.98
Interest expense		2,650,000	$ 2,530,000	5,290,000	$ 5,050,000
Debt Instrument, Convertible, Stock Price Trigger	$ 24.98
Debt Conversion, Converted Instrument, Warrants or Options Issued	5,005,000
Unamortized debt issuance costs and discount		$ 7,910,000		$ 7,910,000		$ 11,470,000

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Long-term Debt - Schedule of Interest and Amortization on Convertible Debt (Details) - Convertible notes - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Debt Instrument [Line Items]
Contractual interest coupon on convertible debt	$ 860	$ 870	$ 1,720	$ 1,740
Amortization of debt issuance costs	140	140	270	270
Amortization of "equity discount" related to debt	1,650	1,520	3,300	3,040
Total	$ 2,650	$ 2,530	$ 5,290	$ 5,050

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Long-term Debt - Paycheck Protection Program Loan (Details) - Paycheck Protection Plan - USD ($) $ in Millions	Jun. 30, 2021	Apr. 30, 2020	Apr. 18, 2020
Debt Instrument [Line Items]
Debt instrument, face amount			$ 8.7
Value of loans in application for forgiveness	$ 8.0
Interest rate		1.00%

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Long-term Debt - French Loan (Details) - French Loan [Member] - Horizon Global Corporation, Indirect Subsidiary [Member] $ in Millions	Apr. 30, 2020 USD ($)
Debt Instrument [Line Items]
Debt instrument, face amount	$ 5.5
Interest rate	1.00%

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Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Renewal term for operating leases	5 years		5 years
Termination term			1 year
Operating lease cost	$ 3,760	$ 3,600	$ 7,630	$ 7,200
Operating cash flows from operating leases			6,120	8,110
Right-of-use assets obtained in exchange for operating lease obligations			$ 540	$ 2,580
Weighted average remaining lease term	5 years 4 months 24 days		5 years 4 months 24 days		6 years
Weighted average discount rate	8.40%		8.40%		8.40%
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year		1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	8 years		8 years

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Contingencies (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			6 Months Ended
	Apr. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Loss Contingencies [Line Items]
Settlement amount	$ 4,400
Prepaid Expenses and Other Current Assets
Loss Contingencies [Line Items]
Estimated litigation asset		$ 900			$ 900		$ 900
Other Assets
Loss Contingencies [Line Items]
Estimated litigation asset		1,400			1,400		1,800
Accrued Liabilities
Loss Contingencies [Line Items]
Liabilities for patent infringement		900			900		1,000
Other Noncurrent Liabilities
Loss Contingencies [Line Items]
Liabilities for patent infringement		2,400			2,400		$ 2,900
Cost of sales
Loss Contingencies [Line Items]
Loss contingency charges				$ 1,500
Royalties		$ 100	$ 200		$ 200	$ 200

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Earnings (Loss) per Share - Reconciliation of Numerator and Denominator of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Net loss from continuing operations	$ 960	$ (16,720)	$ (14,190)	$ (33,250)
Loss from discontinued operations, net of income tax	0	0	0	(500)
Less: Net loss attributable to noncontrolling interest	(330)	(380)	(670)	(670)
Net income (loss) attributable to Horizon Global	$ 1,290	$ (16,340)	$ (13,520)	$ (33,080)
Weighted average shares outstanding, basic (in shares)	27,022,652	25,618,793	26,883,818	25,509,794
Dilutive effect of stock-based awards (in shares)	5,724,551	0	0	0
Weighted average shares outstanding, diluted (in shares)	32,747,203	25,618,793	26,883,818	25,509,794
Basic income (loss) per share attributable to Horizon Global
Continuing operations (in dollars per share)	$ 0.05	$ (0.64)	$ (0.50)	$ (1.28)
Discontinued operations (in dollars per share)	0	0	0	(0.02)
Total	0.05	(0.64)	(0.50)	(1.30)
Diluted income (loss) per share attributable to Horizon Global
Continuing operations (in dollars per share)	0.04	(0.64)	(0.50)	(1.28)
Discontinued operations (in dollars per share)	0	0	0	(0.02)
Total	$ 0.04	$ (0.64)	$ (0.50)	$ (1.30)

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Earnings (Loss) per Share - Schedule of Antidilutive Securities (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	18,961	18,961	18,961	18,961
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	0	2,011,211	1,915,451	1,709,598
Convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	5,005,000	5,005,000	5,005,000	5,005,000
Convertible notes warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	5,005,000	5,005,000	5,005,000	5,005,000
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	3,905,486	6,443,910	8,596,184	6,443,910
Minimum | Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price of options (in usd per share)	$ 9.20	$ 9.20	$ 9.20	$ 9.20
Maximum | Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price of options (in usd per share)	$ 11.02	$ 11.02	$ 11.02	$ 11.02

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Equity Awards - Stock Options Narrative (Details) shares in Millions	Jun. 30, 2021 shares
Horizon 2020 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares Authorized	4.1

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Equity Awards - Stock Option Activity Table (Details)	6 Months Ended
	Jun. 30, 2021 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance (in shares) | shares	18,961
Granted (in shares) | shares	0
Exercised (in shares) | shares	0
Canceled, forfeited (in shares) | shares	0
Expired (in shares) | shares	0
Ending balance (in shares) | shares	18,961
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Beginning balance (in usd per share) | $ / shares	$ 10.43
Granted (in usd per share) | $ / shares	0
Exercised (in usd per share) | $ / shares	0
Canceled, forfeited (in usd per share) | $ / shares	0
Expired (in usd per share) | $ / shares	0
Ending balance (in usd per share) | $ / shares	$ 10.43
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures
Average Remaining Contractual Life (Years)	4 years 6 months
Aggregate Intrinsic Value | $	$ 0

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Equity Awards - Restricted Shares Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
RSU and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)					1,502,072
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			524,711
Grant date fair value (in usd per share)			$ 8.96
Unrecognized compensation cost	$ 5.7		$ 5.7
Weighted-average period for recognition of the unrecognized unvested restricted shares-based compensation expense			2 years 2 months 12 days
Restricted shares-based compensation expense	$ 0.9	$ 0.9	$ 1.7	$ 1.3
Tranche One | RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			83,482		284,859
Tranche Two | RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			153,563		277,228
Tranche Three | RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)					21,351
Tranche Three | PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			230,350
Tranche Four | RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			57,316
Tranche Four | PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)					918,634

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Equity Awards - Restricted Shares Activity Table (Details) - RSUs	6 Months Ended
	Jun. 30, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance (in shares) | shares	1,800,682
Granted (in shares) | shares	524,711
Vested (in shares) | shares	(496,565)
Canceled, forfeited (in shares) | shares	(71,669)
Ending balance (in shares) | shares	1,757,159
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Beginning balance (in usd per share) | $ / shares	$ 3.14
Granted (in usd per share) | $ / shares	8.96
Vested (in usd per share) | $ / shares	2.63
Canceled, forfeited (in usd per share) | $ / shares	5.21
Ending balance (in usd per share) | $ / shares	$ 4.94

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Shareholders' Equity - (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Feb. 28, 2021	Dec. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred stock, authorized shares (in shares)	100,000,000			100,000,000
Preferred stock, par value (in dollars per share)	$ 0.01			$ 0.01
Preferred stock, outstanding shares (in shares)	0			0
Common Stock, authorized shares (in shares)	400,000,000			400,000,000
Common stock, par value (in dollars per share)	$ 0.01			$ 0.01
Common Stock, issued shares (in shares)	27,970,998			27,089,673
Common Stock, outstanding shares (in shares)	27,284,492			26,403,167
Number of warrants authorized to be issued (in shares)			3,905,486		6,250,000
Exercise price of warrants (in usd per share)			$ 9.00		$ 1.50
Warrants outstanding and exercisable (in shares)	9,231,146			5,815,039
Number of warrants exercised	1,228,490
Number of shares of common stock received (in shares)	972,924				278,283
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ (23,850)	$ 8,600
Ending balance	(22,490)	(26,140)
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(6,540)	(9,790)
Net unrealized gains (losses) arising during the period	(2,420)	(2,300)
Net change	(2,420)	(2,300)
Ending balance	(8,960)	(12,090)
Paid-in Capital
Accumulated Other Comprehensive Income (Loss) [Line Items]
Exercise of stock warrants	300
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	166,610	163,240
Ending balance	$ 169,070	$ 164,550

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Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) segment	Jun. 30, 2020 USD ($)
Segment Reporting [Abstract]
Number of Reportable Segments | segment			2
Segment Reporting Information [Line Items]
Loss from discontinued operations, net of income tax	$ 0	$ 0	$ 0	$ 500
Net sales	222,120	120,490	421,310	283,740
Operating Profit (Loss)	11,330	(7,970)	18,110	(14,650)
Horizon Americas
Segment Reporting Information [Line Items]
Net sales	128,380	74,120	238,210	166,490
Horizon Europe-Africa
Segment Reporting Information [Line Items]
Net sales	93,740	46,370	183,100	117,250
Operating Segments | Horizon Americas
Segment Reporting Information [Line Items]
Net sales	128,380	74,120	238,210	166,490
Operating Profit (Loss)	16,760	3,430	28,600	6,160
Operating Segments | Horizon Europe-Africa
Segment Reporting Information [Line Items]
Net sales	93,740	46,370	183,100	117,250
Operating Profit (Loss)	1,240	(5,970)	2,700	(8,480)
Corporate
Segment Reporting Information [Line Items]
Operating Profit (Loss)	$ (6,670)	$ (5,430)	$ (13,190)	$ (12,330)

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Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Effective Income Tax Rate (as a percent)	59.30%	(0.50%)	(20.40%)	(0.20%)

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Other Expenses, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Income and Expenses [Abstract]
Loss on sale of business	$ (2,230)	$ 0	$ (2,230)	$ 0
Foreign currency gain (loss)	460	(220)	(1,650)	(1,750)
Customer pay discounts	(260)	(270)	(500)	(540)
Other, net	40	40	160	170
Total	$ (1,990)	$ (450)	$ (4,220)	$ (2,120)