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SUBSIDIARY GUARANTOR FINANCIAL INFORMATION
3 Months Ended
Sep. 30, 2013
Condensed Financial Statements, Captions [Line Items]  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION

The Company's 7.875% senior secured notes and 5.625% convertible senior subordinated notes are guaranteed by the following 100% owned subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, and Titan Wheel Corporation of Illinois. The note guarantees are full and unconditional, joint and several obligations of the guarantors. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. The following condensed consolidating financial statements are presented using the equity method of accounting. Certain sales & marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries.

(Amounts in thousands)
Consolidating Condensed Statements of Operations
For the Three Months Ended September 30, 2013
 
Titan
 Intl., Inc. (Parent)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
—

 
$
256,252

 
$
241,258

 
$
—

 
$
497,510

Cost of sales
241

 
216,445

 
218,318

 
—

 
435,004

Gross profit (loss)
(241
)
 
39,807

 
22,940

 
—

 
62,506

Selling, general and administrative expenses
3,561

 
16,513

 
18,657

 
—

 
38,731

Research and development expenses
(17
)
 
1,423

 
1,372

 
—

 
2,778

Royalty expense
—

 
1,850

 
2,092

 
—

 
3,942

Income (loss) from operations
(3,785
)
 
20,021

 
819

 
—

 
17,055

Interest expense
(10,945
)
 
—

 
(1,469
)
 
—

 
(12,414
)
Intercompany interest income (expense)
2,469

 
—

 
(2,469
)
 
—

 
—

Other income
1,182

 
(117
)
 
7,657

 
—

 
8,722

Income (loss) before income taxes
(11,079
)
 
19,904

 
4,538

 
—

 
13,363

Provision for income taxes
(4,717
)
 
7,435

 
2,993

 
—

 
5,711

Equity in earnings of subsidiaries
14,014

 
—

 
4,827

 
(18,841
)
 
—

Net income (loss)
7,652

 
12,469

 
6,372

 
(18,841
)
 
7,652

Net loss noncontrolling interests
—

 
—

 
(441
)
 
—

 
(441
)
Net income (loss) attributable to Titan
$
7,652

 
$
12,469

 
$
6,813

 
$
(18,841
)
 
$
8,093

 
(Amounts in thousands)
Consolidating Condensed Statements of Operations
For the Three Months Ended September 30, 2012
 
Titan
 Intl., Inc. (Parent)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
—

 
$
311,422

 
$
93,297

 
$
—

 
$
404,719

Cost of sales
253

 
246,275

 
91,030

 
—

 
337,558

Gross profit (loss)
(253
)
 
65,147

 
2,267

 
—

 
67,161

Selling, general and administrative expenses
(9,013
)
 
40,635

 
(6,125
)
 
—

 
25,497

Research and development expenses
155

 
1,604

 
—

 
—

 
1,759

Royalty expense
—

 
1,778

 
1,961

 
—

 
3,739

Income (loss) from operations
8,605

 
21,130

 
6,431

 
—

 
36,166

Interest expense
(6,012
)
 
—

 
(175
)
 
—

 
(6,187
)
Other income
1,163

 
364

 
912

 
—

 
2,439

Income (loss) before income taxes
3,756

 
21,494

 
7,168

 
—

 
32,418

Provision for income taxes
6,329

 
7,398

 
(138
)
 
—

 
13,589

Equity in earnings of subsidiaries
21,402

 
—

 
5,420

 
(26,822
)
 
—

Net income (loss)
18,829

 
14,096

 
12,726

 
(26,822
)
 
18,829

Net loss noncontrolling interests
—

 
—

 
(750
)
 
—

 
(750
)
Net income (loss) attributable to Titan
$
18,829

 
$
14,096

 
$
13,476

 
$
(26,822
)
 
$
19,579


(Amounts in thousands)
Consolidating Condensed Statements of Operations
For the Nine Months Ended September 30, 2013
 
Titan
 Intl., Inc. (Parent)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
—

 
$
903,628

 
$
765,560

 
$
—

 
$
1,669,188

Cost of sales
908

 
734,460

 
687,908

 
—

 
1,423,276

Gross profit (loss)
(908
)
 
169,168

 
77,652

 
—

 
245,912

Selling, general and administrative expenses
8,008

 
54,637

 
62,182

 
—

 
124,827

Research and development expenses
(35
)
 
4,136

 
4,180

 
—

 
8,281

Royalty expense
—

 
5,478

 
5,482

 
—

 
10,960

Income (loss) from operations
(8,881
)
 
104,917

 
5,808

 
—

 
101,844

Interest expense
(29,509
)
 
—

 
(6,415
)
 
—

 
(35,924
)
Convertible debt conversion charge
(7,273
)
 
—

 
—

 
—

 
(7,273
)
Gain on earthquake insurance recovery
—

 
—

 
22,451

 
—

 
22,451

Intercompany interest income (expense)
5,158

 
—

 
(5,158
)
 
—

 
—

Other income (expense)
2,741

 
(91
)
 
5,062

 
—

 
7,712

Income (loss) before income taxes
(37,764
)
 
104,826

 
21,748

 
—

 
88,810

Provision (benefit) for income taxes
(6,561
)
 
38,025

 
7,449

 
—

 
38,913

Equity in earnings of subsidiaries
81,100

 
—

 
38,351

 
(119,451
)
 
—

Net income (loss)
49,897

 
66,801

 
52,650

 
(119,451
)
 
49,897

Net loss noncontrolling interests
—

 
—

 
(888
)
 
—

 
(888
)
Net income (loss) attributable to Titan
$
49,897

 
$
66,801

 
$
53,538

 
$
(119,451
)
 
$
50,785

 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
Consolidating Condensed Statements of Operations
For the Nine Months Ended September 30, 2012
 
Titan
 Intl., Inc. (Parent)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
—

 
$
1,055,586

 
$
271,454

 
$
—

 
$
1,327,040

Cost of sales
812

 
828,935

 
254,683

 
—

 
1,084,430

Gross profit (loss)
(812
)
 
226,651

 
16,771

 
—

 
242,610

Selling, general and administrative expenses
4,970

 
71,372

 
3,400

 
—

 
79,742

Research and development expenses
327

 
3,983

 
146

 
—

 
4,456

Royalty expense
—

 
5,250

 
3,490

 
—

 
8,740

Supply agreement termination income
—

 
—

 
(26,134
)
 
—

 
(26,134
)
Income (loss) from operations
(6,109
)
 
146,046

 
35,869

 
—

 
175,806

Interest expense
(18,119
)
 
—

 
(580
)
 
—

 
(18,699
)
Other income
3,620

 
1,174

 
1,369

 
—

 
6,163

Income (loss) before income taxes
(20,608
)
 
147,220

 
36,658

 
—

 
163,270

Provision (benefit) for income taxes
1,261

 
51,311

 
12,150

 
—

 
64,722

Equity in earnings of subsidiaries
120,417

 
—

 
24,242

 
(144,659
)
 
—

Net income (loss)
98,548

 
95,909

 
48,750

 
(144,659
)
 
98,548

Net loss noncontrolling interests
—

 
—

 
(506
)
 
—

 
(506
)
Net income (loss) attributable to Titan
$
98,548

 
$
95,909

 
$
49,256

 
$
(144,659
)
 
$
99,054

 
 
 
 
 
 
 
 
 
 


(Amounts in thousands)
Consolidating Condensed Statements of Comprehensive Income
For the Three Months Ended September 30, 2013
 
Titan
 Intl., Inc. (Parent)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
7,652

 
$
12,469

 
$
6,372

 
$
(18,841
)
 
$
7,652

Currency translation adjustment, net
854

 
—

 
854

 
(854
)
 
854

Pension liability adjustments, net of tax
969

 
781

 
188

 
(969
)
 
969

Comprehensive income (loss)
9,475

 
13,250

 
7,414

 
(20,664
)
 
9,475

Net comprehensive loss attributable to noncontrolling interests
—

 
—

 
(85
)
 
—

 
(85
)
Comprehensive income (loss) attributable to Titan
$
9,475

 
$
13,250

 
$
7,499

 
$
(20,664
)
 
$
9,560



(Amounts in thousands)
Consolidating Condensed Statements of Comprehensive Income
For the Three Months Ended September 30, 2012
 
Titan
 Intl., Inc. (Parent)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
18,829

 
$
14,096

 
$
12,726

 
$
(26,822
)
 
$
18,829

Unrealized gain (loss) on investments, net of tax
(353
)
 
—

 
(353
)
 
353

 
(353
)
Currency translation adjustment, net
(1,247
)
 
—

 
(1,247
)
 
1,247

 
(1,247
)
Pension liability adjustments, net of tax
836

 
790

 
46

 
(836
)
 
836

Comprehensive income (loss)
18,065

 
14,886

 
11,172

 
(26,058
)
 
18,065

Net comprehensive loss attributable to noncontrolling interests
—

 
—

 
(1,104
)
 
—

 
(1,104
)
Comprehensive income (loss) attributable to Titan
$
18,065

 
$
14,886

 
$
12,276

 
$
(26,058
)
 
$
19,169



 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
Consolidating Condensed Statements of Comprehensive Income
For the Nine Months Ended September 30, 2013
 
Titan
 Intl., Inc. (Parent)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
49,897

 
$
66,801

 
$
52,650

 
$
(119,451
)
 
$
49,897

Unrealized gain (loss) on investments, net of tax
(3
)
 
—

 
(3
)
 
3

 
(3
)
Currency translation adjustment, net
(24,513
)
 
—

 
(24,513
)
 
24,513

 
(24,513
)
Pension liability adjustments, net of tax
2,990

 
2,343

 
647

 
(2,990
)
 
2,990

Comprehensive income (loss)
28,371

 
69,144

 
28,781

 
(97,925
)
 
28,371

Net comprehensive loss attributable to noncontrolling interests
—

 
—

 
(3,243
)
 
—

 
(3,243
)
Comprehensive income (loss) attributable to Titan
$
28,371

 
$
69,144

 
$
32,024

 
$
(97,925
)
 
$
31,614

 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
Consolidating Condensed Statements of Comprehensive Income
For the Nine Months Ended September 30, 2012
 
Titan
 Intl., Inc. (Parent)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
$
98,548

 
$
95,909

 
$
48,750

 
$
(144,659
)
 
$
98,548

Unrealized gain (loss) on investments, net of tax
(16
)
 
—

 
(16
)
 
16

 
(16
)
Currency translation adjustment, net
(5,816
)
 
—

 
(5,816
)
 
5,816

 
(5,816
)
Pension liability adjustments, net of tax
2,508

 
2,370

 
138

 
(2,508
)
 
2,508

Comprehensive income (loss)
95,224

 
98,279

 
43,056

 
(141,335
)
 
95,224

Net comprehensive loss attributable to noncontrolling interests
—

 
—

 
(859
)
 
—

 
(859
)
Comprehensive income (loss) attributable to Titan
$
95,224

 
$
98,279

 
$
43,915

 
$
(141,335
)
 
$
96,083

 
 
 
 
 
 
 
 
 
 


(Amounts in thousands)
Consolidating Condensed Balance Sheets
September 30, 2013
 
Titan
 Intl., Inc. (Parent)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
350,611

 
$
4

 
$
96,841

 
$
—

 
$
447,456

Accounts receivable
—

 
125,048

 
165,199

 
—

 
290,247

Inventories
—

 
129,672

 
246,221

 
—

 
375,893

Prepaid and other current assets
63,335

 
13,634

 
53,456

 
—

 
130,425

Total current assets
413,946

 
268,358

 
561,717

 
—

 
1,244,021

Property, plant and equipment, net
16,393

 
205,666

 
339,647

 
—

 
561,706

Investment in subsidiaries
631,910

 
—

 
127,384

 
(759,294
)
 
—

Other assets
35,590

 
403

 
106,041

 
—

 
142,034

Total assets
$
1,097,839

 
$
474,427

 
$
1,134,789

 
$
(759,294
)
 
$
1,947,761

Liabilities and Stockholders’ Equity
 

 
 

 
 

 
 

 
 

Short-term debt
$
4,121

 
$
—

 
$
100,763

 
$
—

 
$
104,884

Accounts payable
1,219

 
20,899

 
173,005

 
—

 
195,123

Other current liabilities
30,222

 
59,921

 
63,333

 
—

 
153,476

Total current liabilities
35,562

 
80,820

 
337,101

 
—

 
453,483

Long-term debt
599,168

 
—

 
38,220

 
—

 
637,388

Other long-term liabilities
38,396

 
31,532

 
75,920

 
—

 
145,848

Intercompany accounts
(263,659
)
 
(126,589
)
 
390,248

 
—

 
—

Titan stockholders' equity
688,372

 
488,664

 
270,630

 
(759,294
)
 
688,372

Noncontrolling interests
—

 
—

 
22,670

 
—

 
22,670

Total liabilities and stockholders’ equity
$
1,097,839

 
$
474,427

 
$
1,134,789

 
$
(759,294
)
 
$
1,947,761



(Amounts in thousands)
Consolidating Condensed Balance Sheets
December 31, 2012
 
Titan
 Intl., Inc. (Parent)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
103,154

 
$
4

 
$
85,956

 
$
—

 
$
189,114

Accounts receivable
(72
)
 
128,917

 
168,953

 
—

 
297,798

Inventories
—

 
142,070

 
224,315

 
—

 
366,385

Prepaid and other current assets
49,438

 
17,021

 
76,367

 
—

 
142,826

Total current assets
152,520

 
288,012

 
555,591

 
—

 
996,123

Property, plant and equipment, net
11,497

 
208,734

 
348,113

 
—

 
568,344

Investment in subsidiaries
565,811

 
—

 
86,189

 
(652,000
)
 
—

Other assets
35,564

 
499

 
109,705

 
—

 
145,768

Total assets
$
765,392

 
$
497,245

 
$
1,099,598

 
$
(652,000
)
 
$
1,710,235

Liabilities and Stockholders’ Equity
 

 
 

 
 

 
 

 
 

Short-term debt
$
—


$
—


$
145,801


$
—

 
$
145,801

Accounts payable
1,000

 
21,222

 
157,843

 
—

 
180,065

Other current liabilities
13,911

 
55,290

 
72,013

 
—

 
141,214

Total current liabilities
14,911

 
76,512

 
375,657

 
—

 
467,080

Long-term debt
312,881

 
—

 
128,557

 
—

 
441,438

Other long-term liabilities
44,512

 
35,482

 
89,361

 
—

 
169,355

Intercompany accounts
(213,529
)
 
(34,272
)
 
247,801

 
—

 
—

Titan stockholders' equity
606,617

 
419,523

 
232,477

 
(652,000
)
 
606,617

Noncontrolling interests
—

 
—

 
25,745

 
—

 
25,745

Total liabilities and stockholders’ equity
$
765,392

 
$
497,245

 
$
1,099,598

 
$
(652,000
)
 
$
1,710,235


(Amounts in thousands)
Consolidating Condensed Statements of Cash Flows
For the Nine Months Ended September 30, 2013
 
Titan
 Intl., Inc. (Parent)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated
Net cash provided by (used for) operating activities
$
(72,306
)
 
$
21,528

 
$
182,967

 
$
132,189

Cash flows from investing activities:
 

 
 

 
 

 
 

Capital expenditures
(5,979
)
 
(21,763
)
 
(27,214
)
 
(54,956
)
Acquisitions, net of cash acquired
—

 
—

 
(1,670
)
 
(1,670
)
Additional equity investment in Wheels India
—

 
—

 
(8,017
)
 
(8,017
)
Insurance proceeds
—

 
—

 
2,879

 
2,879

Other, net
—

 
235

 
1,107

 
1,342

Net cash used for investing activities
(5,979
)
 
(21,528
)
 
(32,915
)
 
(60,422
)
Cash flows from financing activities:
 

 
 

 
 

 
 

Proceeds from borrowings
345,313

 
—

 
—

 
345,313

Payment on debt
—

 
—

 
(162,040
)
 
(162,040
)
Term loan borrowing
—

 
—

 
25,880

 
25,880

Convertible note conversion
(14,090
)
 
—

 
—

 
(14,090
)
Proceeds from exercise of stock options
863

 
—

 
—

 
863

Excess tax benefit from stock options exercised
(46
)
 
—

 
—

 
(46
)
Payment of financing fees
(5,520
)
 
—

 
—

 
(5,520
)
Dividends paid
(778
)
 
—

 
—

 
(778
)
Net cash provided by (used for) financing activities
325,742

 
—

 
(136,160
)
 
189,582

Effect of exchange rate change on cash
—

 
—

 
(3,007
)
 
(3,007
)
Net increase in cash and cash equivalents
247,457

 
—

 
10,885

 
258,342

Cash and cash equivalents, beginning of period
103,154

 
4

 
85,956

 
189,114

Cash and cash equivalents, end of period
$
350,611

 
$
4

 
$
96,841

 
$
447,456

 
(Amounts in thousands)
Consolidating Condensed Statements of Cash Flows
For the Nine Months Ended September 30, 2012
 
Titan
 Intl., Inc. (Parent)
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated
Net cash provided by operating activities
$
20,502

 
$
21,736

 
$
42,850

 
$
85,088

Cash flows from investing activities:
 

 
 

 
 

 
 

Capital expenditures
(3,571
)
 
(22,076
)
 
(10,672
)
 
(36,319
)
Acquisitions, net of cash acquired
(32,760
)
 
—

 
—

 
(32,760
)
Other, net
—

 
355

 
281

 
636

Net cash used for investing activities
(36,331
)
 
(21,721
)
 
(10,391
)
 
(68,443
)
Cash flows from financing activities:
 

 
 

 
 

 
 

Payment on debt
—

 
—

 
(14,434
)
 
(14,434
)
Term loan borrowing
—

 
—

 
4,378

 
4,378

Proceeds from exercise of stock options
925

 
—

 
—

 
925

Excess tax benefit from stock options exercised
185

 
—

 
—

 
185

Dividends paid
(634
)
 
—

 
—

 
(634
)
Net cash provided by (used for) financing activities
476

 
—

 
(10,056
)
 
(9,580
)
Effect of exchange rate change on cash
—

 
—

 
(1,345
)
 
(1,345
)
Net increase (decrease) in cash and cash equivalents
(15,353
)
 
15

 
21,058

 
5,720

Cash and cash equivalents, beginning of period
125,266

 
4

 
3,900

 
129,170

Cash and cash equivalents, end of period
$
109,913

 
$
19

 
$
24,958

 
$
134,890