10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ 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 000-23486

 

NN, Inc.

(Exact name of registrant as specified in its charter)

Delaware	62-1096725
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

6210 Ardrey Kell Road, Suite 600

Charlotte, North Carolina 28277

(Address of principal executive offices, including zip code)

(980) 264-4300

(Registrant’s telephone number, including area code) 

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	NNBR	The Nasdaq Stock Market LLC

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  ☒    No  ☐

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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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	☐	Accelerated filer	☒
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   ☐

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 August 2, 2021, there were 43,033,548 shares of the registrant’s common stock, par value $0.01 per share, outstanding.

NN, Inc.

INDEX

		Page
PART I. FINANCIAL INFORMATION		3
Item 1.	Financial Statements	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)	3
	Condensed Consolidated Balance Sheets (Unaudited)	4
	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows (Unaudited)	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	8
	Note 1. Interim Financial Statements	8
	Note 2. Discontinued Operations	9
	Note 3. Segment Information	11
	Note 4. Inventories	12
	Note 5. Goodwill	12
	Note 6. Intangible Assets, Net	13
	Note 7. Investment in Joint Venture	13
	Note 8. Income Taxes	13
	Note 9. Debt	13
	Note 10. Leases	15
	Note 11. Commitments and Contingencies	16
	Note 12. Preferred Stock and Stockholders' Equity	17
	Note 13. Revenue from Contracts with Customers	18
	Note 14. Share-Based Compensation	21
	Note 15. Accumulated Other Comprehensive Income	23
	Note 16. Net Income (Loss) Per Common Share	24
	Note 17. Fair Value Measurements	26
	Note 18. Subsequent Event	28
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	38
PART II. OTHER INFORMATION		39
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3.	Defaults Upon Senior Securities	39
Item 4.	Mine Safety Disclosures	39
Item 5.	Other Information	39
Item 6.	Exhibits	40
SIGNATURES		41

2

PART I. FINANCIAL INFORMATION 

Item 1.Financial Statements

NN, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	2021		2020		2021		2020
Net sales	$	123,157	$	78,532	$	249,961	$	194,745
Cost of sales (exclusive of depreciation and amortization shown separately below)	99,797		65,058		199,485		159,536
Selling, general, and administrative expense	13,585		14,273		28,160		30,433
Depreciation and amortization	11,687		11,327		23,255		22,684
Goodwill impairment	—		—		—		92,942
Other operating expense (income), net	(324)		(949)		(329)		4,177
Loss from operations	(1,588)		(11,177)		(610)		(115,027)
Interest expense	3,573		6,356		5,597		10,163
Loss on extinguishment of debt and write-off of debt issuance costs	—		—		2,390		—
Derivative payments on interest rate swap	—		—		1,717		—
Loss on interest rate swap	—		—		2,033		—
Other expense (income), net	1,680		(1,215)		1,558		329
Loss from continuing operations before benefit (provision) for income taxes and share of net income from joint venture	(6,841)		(16,318)		(13,905)		(125,519)
Benefit (provision) for income taxes	231		(2,175)		987		(780)
Share of net income from joint venture	1,219		927		2,614		656
Loss from continuing operations	(5,391)		(17,566)		(10,304)		(125,643)
Loss from discontinued operations, net of tax (Note 2)	—		(4,182)		—		(144,296)
Net loss	$	(5,391)	$	(21,748)	$	(10,304)	$	(269,939)
Other comprehensive income (loss):
Foreign currency translation gain (loss)	$	4,409	$	994	$	1,062	$	(13,348)
Interest rate swap:
Change in fair value, net of tax	—		(1,255)		—		(12,464)
Reclassification adjustment for losses included in net loss, net of tax	—		2,638		2,851		3,690
Other comprehensive income (loss)	$	4,409	$	2,377	$	3,913	$	(22,122)
Comprehensive loss	$	(982)	$	(19,371)	$	(6,391)	$	(292,061)
Basic net loss per common share:
Loss from continuing operations per common share	$	(0.17)	$	(0.49)	$	(0.62)	$	(3.12)
Loss from discontinued operations per common share	—		(0.10)		—		(3.43)
Net loss per common share	$	(0.17)	$	(0.59)	$	(0.62)	$	(6.55)
Weighted average common shares outstanding	44,440		42,197		43,561		42,154
Diluted net loss per common share:
Loss from continuing operations per common share	$	(0.17)	$	(0.49)	$	(0.62)	$	(3.12)
Loss from discontinued operations per common share	—		(0.10)		—		(3.43)
Net loss per common share	$	(0.17)	$	(0.59)	$	(0.62)	$	(6.55)
Weighted average common shares outstanding	44,440		42,197		43,561		42,154

See notes to condensed consolidated financial statements (unaudited).

3

NN, Inc.

Condensed Consolidated Balance Sheets

(Unaudited) 

(in thousands, except per share data)	June 30, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	31,543	$	48,138
Accounts receivable, net	82,177		84,615
Inventories	74,770		62,517
Income tax receivable	13,071		8,800
Other current assets	13,125		11,148
Total current assets	214,686		215,218
Property, plant and equipment, net	219,808		223,690
Operating lease right-of-use assets	48,407		50,264
Intangible assets, net	95,891		103,065
Investment in joint venture	29,897		26,983
Deferred tax assets	131		—
Other non-current assets	4,763		5,742
Total assets	$	613,583	$	624,962
Liabilities, Preferred Stock, and Stockholders’ Equity
Current liabilities:
Accounts payable	$	46,834	$	37,435
Accrued salaries, wages and benefits	21,279		21,296
Income tax payable	1,494		3,557
Current maturities of long-term debt	4,808		4,885
Current portion of operating lease liabilities	5,130		4,797
Other current liabilities	12,651		31,261
Total current liabilities	92,196		103,231
Deferred tax liabilities	9,196		11,178
Long-term debt, net of current portion	150,728		79,025
Operating lease liabilities, net of current portion	53,601		55,053
Other non-current liabilities	26,438		17,237
Total liabilities	332,159		265,724
Commitments and contingencies (Note 11)
Series D perpetual preferred stock - $0.01 par value per share, 65 shares authorized, issued and outstanding at June 30, 2021	49,069		—
Series B convertible preferred stock - $0.01 par value per share, 100 shares authorized, issued and outstanding at December 31, 2020	—		105,086
Stockholders' equity:
Common stock - $0.01 par value per share, 90,000 shares authorized, 42,686 and 43,034 shares issued and outstanding at December 31, 2020 and June 30, 2021, respectively	430		427
Additional paid-in capital	477,923		493,332
Accumulated deficit	(216,179)		(205,875)
Accumulated other comprehensive loss	(29,819)		(33,732)
Total stockholders’ equity	232,355		254,152
Total liabilities, preferred stock, and stockholders’ equity	$	613,583	$	624,962

See notes to condensed consolidated financial statements (unaudited).

4

NN, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

Three Months Ended June 30, 2021 and 2020

(Unaudited)

	Common Stock					Accumulated deficit		Accumulated other comprehensive income (loss)
(in thousands)	Number of shares	Par value		Additional paid-in capital						Total
Balance, March 31, 2021	43,049	$	430	$	479,341	$	(210,788)	$	(34,228)	$	234,755
Net loss	—	—		—		(5,391)		—		(5,391)
Dividends accrued for preferred stock	—	—		(2,211)		—		—		(2,211)
Shares issued for option exercises	6	—		48		—		—		48
Share-based compensation expense	(19)	—		1,100		—		—		1,100
Restricted shares forgiven for taxes	(2)	—		(18)		—		—		(18)
Change in estimate of share-based award vesting	—	—		(337)		—		—		(337)
Foreign currency translation gain	—	—		—		—		4,409		4,409
Balance, June 30, 2021	43,034	$	430	$	477,923	$	(216,179)	$	(29,819)	$	232,355

	Common Stock							Accumulated deficit		Accumulated other comprehensive income (loss)
(in thousands)	Number of shares	Par value		Additional paid-in capital		Warrants						Total
Balance, March 31, 2020	42,757	$	428	$	499,925	$	1,076	$	(353,474)	$	(69,053)	$	78,902
Net loss	—	—		—		—		(21,748)		—		(21,748)
Dividends accrued for preferred stock	—	—		(3,043)		—		—		—		(3,043)
Share-based compensation expense	(10)	(1)		1,412		—		—		—		1,411
Change in fair value of interest rate swap, net of tax of $380	—	—		—		—		—		(1,255)		(1,255)
Reclassification of interest rate swap settlement to net loss, net of tax of $798	—	—		—		—		—		2,638		2,638
Foreign currency translation gain	—	—		—		—		—		994		994
Balance, June 30, 2020	42,747	$	427	$	498,294	$	1,076	$	(375,222)	$	(66,676)	$	57,899

See notes to condensed consolidated financial statements (unaudited).

5

NN, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

Six Months Ended June 30, 2021 and 2020

(Unaudited)

	Common Stock					Accumulated deficit		Accumulated other comprehensive income (loss)
(in thousands)	Number of shares	Par value		Additional paid-in capital						Total
Balance, December 31, 2020	42,686	$	427	$	493,332	$	(205,875)	$	(33,732)	$	254,152
Net loss	—	—		—		(10,304)		—		(10,304)
Dividends accrued for preferred stock	—	—		(16,740)		—		—		(16,740)
Shares issued for option exercises	6	—		48		—		—		48
Share-based compensation expense	394	4		1,982		—		—		1,986
Restricted shares forgiven for taxes	(52)	(1)		(362)		—		—		(363)
Change in estimate of share-based award vesting	—	—		(337)		—		—		(337)
Reclassification of interest rate swap to net loss, net of tax of $861	—	—		—		—		2,851		2,851
Foreign currency translation gain	—	—		—		—		1,062		1,062
Balance, June 30, 2021	43,034	$	430	$	477,923	$	(216,179)	$	(29,819)	$	232,355

	Common Stock							Accumulated deficit		Accumulated other comprehensive income (loss)
(in thousands)	Number of shares	Par value		Additional paid-in capital		Warrants						Total
Balance, December 31, 2019	42,313	$	423	$	501,615	$	1,076	$	(105,283)	$	(44,554)	$	353,277
Net loss	—	—		—		—		(269,939)		—		(269,939)
Dividends accrued for preferred stock	—	—		(5,994)		—		—		—		(5,994)
Share-based compensation expense	442	4		2,703		—		—		—		2,707
Restricted shares forgiven for taxes	(8)	—		(30)		—		—		—		(30)
Change in fair value of interest rate swap, net of tax of $3,770	—	—		—		—		—		(12,464)		(12,464)
Reclassification of interest rate swap settlement to net loss, net of tax of $1,116	—	—		—		—		—		3,690		3,690
Foreign currency translation loss	—	—		—		—		—		(13,348)		(13,348)
Balance, June 30, 2020	42,747	$	427	$	498,294	$	1,076	$	(375,222)	$	(66,676)	$	57,899

See notes to condensed consolidated financial statements (unaudited).

6

NN, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(in thousands)	2021		2020
Cash flows from operating activities
Net loss	$	(10,304)	$	(269,939)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization of continuing operations	23,255		22,684
Depreciation and amortization of discontinued operations	—		23,701
Amortization of debt issuance costs and discount	718		3,348
Goodwill impairment of continuing operations	—		92,942
Goodwill impairment of discontinued operations	—		146,757
Loss on extinguishment of debt and write-off of debt issuance costs	2,390		—
Total derivative loss, net of cash settlements	3,750		—
Share of net income from joint venture	(2,614)		(656)
Compensation expense from issuance of share-based awards	1,649		2,707
Deferred income taxes	(3,050)		(8,889)
Other	(1,154)		(2,207)
Changes in operating assets and liabilities:
Accounts receivable	2,685		23,485
Inventories	(12,052)		(4,327)
Accounts payable	9,441		(12,391)
Income taxes receivable and payable, net	(6,326)		(12,897)
Other	(2,490)		11,544
Net cash provided by operating activities	5,898		15,862
Cash flows from investing activities
Acquisition of property, plant and equipment	(11,015)		(15,624)
Proceeds from sale of property, plant, and equipment	74		3,112
Cash paid for post-closing adjustments on sale of business	(3,880)		—
Cash settlements of interest rate swap	(15,420)		—
Net cash used in investing activities	(30,241)		(12,512)
Cash flows from financing activities
Cash paid for debt issuance costs	(6,981)		(286)
Proceeds from issuance of preferred stock	61,793		—
Redemption of preferred stock	(122,434)		—
Proceeds from long-term debt	156,000		64,716
Repayments of long-term debt	(77,442)		(9,078)
Repayments of short-term debt, net	(1,321)		(411)
Other	(2,685)		(1,523)
Net cash provided by financing activities	6,930		53,418
Effect of exchange rate changes on cash flows	818		(5,776)
Net change in cash and cash equivalents	(16,595)		50,992
Cash and cash equivalents at beginning of period (1)	48,138		31,703
Cash and cash equivalents at end of period (1)	$	31,543	$	82,695

_______________________________

(1) Cash and cash equivalents include $12.2 million and $13.8 million of cash and cash equivalents that were included in current assets of discontinued operations as of June 30, 2020, and December 31, 2019, respectively.

See notes to condensed consolidated financial statements (unaudited).

7

NN, Inc.

Notes to Condensed Consolidated Financial Statements

June 30, 2021

(Unaudited)

Note 1. Interim Financial Statements

Nature of Business

NN, Inc. is a global diversified industrial company that combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies primarily for the automotive, general industrial, electrical, aerospace, defense, and medical markets. As used in this Quarterly Report on Form 10-Q (this “Quarterly Report”), the terms “NN,” the “Company,” “we,” “our,” or “us” refer to NN, Inc., and its subsidiaries.

Basis of Presentation

The accompanying condensed consolidated financial statements have not been audited. The Condensed Consolidated Balance Sheet as of December 31, 2020, was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”), which we filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 15, 2021. Historical periods presented reflect reclassifications for discontinued operations (see Note 2). In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary to fairly state our results of operations for the three and six months ended June 30, 2021 and 2020; financial position as of June 30, 2021, and December 31, 2020; and cash flows for the six months ended June 30, 2021 and 2020, on a basis consistent with our audited consolidated financial statements other than the adoption of new accounting standards (see Accounting Standards Recently Adopted section below). These adjustments are of a normal recurring nature and are, in the opinion of management, necessary to state fairly the Company’s financial position and operating results for the interim periods.

Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted from the interim financial statements presented in this Quarterly Report. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes included in the 2020 Annual Report. The results for the three and six months ended June 30, 2021, are not necessarily indicative of results for the year ending December 31, 2021, or any other future periods.

Except for per share data or as otherwise indicated, all U.S. dollar amounts and share counts presented in the tables in these Notes to Condensed Consolidated Financial Statements are in thousands.

Accounting Standards Recently Adopted

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, (“ASU 2019-12”) as part of its initiative to reduce complexity in accounting standards. ASU 2019-12 removes certain exceptions and provides simplification to specific tax items to improve consistent application. This standard was effective for us beginning January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements and related disclosures.

Accounting Standards Not Yet Adopted

In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, (“ASU 2020-06”) which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, ASU 2020-06 simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. In addition, ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for the exception. Further, for the diluted earnings-per-share calculation, the new guidance requires entities to use the if-converted method for all convertible instruments and generally requires entities to include the effect of share settlement for instruments that may be settled in cash or shares, among other things. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted. Either the full or modified retrospective adoption method is allowed. We are currently evaluating the impact on our consolidated financial statements and related disclosures.

In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options, (“ASU 2021-04”) which clarifies the accounting for modifications or exchanges of

8

freestanding equity-classified written call options that remain equity classified after modification or exchange. Specifically, ASU 2021-04 requires the issuer to treat a modification of an equity-classified warrant as an exchange of the original warrant. The difference between the fair value of the modified warrant and the fair value of the warrant immediately before modification is then recognized as an issuance cost or discount of the related transaction. ASU 2021-04 is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted. ASU 2021-04 should be applied prospectively to modifications or exchanges occurring after the effective date. Either the full or modified retrospective adoption method is allowed. We do not have any equity-classified written call options that would be subject to this guidance. Therefore, we do not expect any impact on our consolidated financial statements and related disclosures.

Note 2. Discontinued Operations

In October 2020, we closed on the sale of our Life Sciences business under the terms of a Stock Purchase Agreement (the “SPA”) with affiliates of American Securities LLC for $753.3 million cash. The SPA includes a potential earnout payment of up to $70 million based on the performance of the Life Sciences business during the year ending December 31, 2022, measured by Adjusted EBITDA targets, as defined by the SPA. After working capital and other closing adjustments, we received cash proceeds at closing of $757.2 million and paid $3.9 million to the buyer during the six months ended June 30, 2021, for post-closing adjustments.

Under the terms of a transition services agreement, we provided certain support services after the sale. In accordance with the terms of the SPA, we agreed to indemnify the buyer for certain tax liabilities on its consolidated federal income tax return related to the Life Sciences business during the portion of the year ended December 31, 2020, prior to the change in ownership on October 6, 2020. We estimate that the tax indemnification will result in a payment of approximately $1.2 million to the buyer during the year ending December 31, 2021, and we have recorded this estimated obligation in the “Other current liabilities” line item on the Condensed Consolidated Balance Sheets as of June 30, 2021, and December 31, 2020.

In accordance with ASC 205-20, Presentation of Financial Statements - Discontinued Operations, the operating results of the Life Sciences business are classified as discontinued operations. The presentation of discontinued operations includes revenues and expenses of the discontinued operations as well as any gain on the disposition of the business, all net of tax, as one line item on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for all historical periods presented have been revised to reflect this presentation. Accordingly, the results of the Life Sciences business have been excluded from continuing operations and segment results for all historical periods presented in the condensed consolidated financial statements and the accompanying notes unless otherwise stated. The Condensed Consolidated Statements of Cash Flows for historical periods include cash flows of the Life Sciences business in each line item unless otherwise stated.

9

The following table presents the operating results of the discontinued operations.

	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Net sales	$	71,888	$	155,420
Cost of sales (exclusive of depreciation and amortization shown separately below)	50,331		108,094
Selling, general, and administrative expense	5,619		14,024
Depreciation and amortization	11,874		23,701
Goodwill impairment	—		146,757
Other operating income, net	(6)		(3)
Income (loss) from operations	4,070		(137,153)
Interest expense	12,340		25,610
Other expense (income), net	334		(90)
Loss from discontinued operations before costs of disposal and benefit for income taxes	(8,604)		(162,673)
Benefit for income taxes	5,457		19,644
Loss from discontinued operations before costs of disposal	(3,147)		(143,029)
Costs of disposal of discontinued operations (1)	(1,099)		(1,358)
Benefit for income taxes on costs of disposal	64		91
Loss from discontinued operations, net of tax	$	(4,182)	$	(144,296)

_______________________________

(1)Represents incremental direct costs related to the sale of the Life Sciences business that were incurred prior to the closing of the sale.

During the first quarter of 2020, our market capitalization declined to a level that was less than the net book value of our stockholders’ equity. The decline in market capitalization was a triggering event that caused us to perform a goodwill impairment analysis as of March 31, 2020. The carrying value of the Life Sciences reporting unit exceeded its estimated fair value as of March 31, 2020. As a result of our analysis, we recorded an impairment loss on goodwill of $146.8 million for Life Sciences. The judgments, assumptions, and estimates involved in the goodwill impairment analysis for the Life Sciences reporting unit are consistent with those discussed in Note 5.

Our previous credit facility, which was in place at the time, required us to use proceeds from the sale of the Life Sciences business to prepay a portion of our previous debt. We paid $700 million in the aggregate on our term loans immediately after the transaction closed on October 6, 2020. The prepayment was applied to debt in accordance with the prepayment provisions of the previous credit agreement which was in place at the time. Average quarterly interest rates were multiplied by the required prepayment amounts to calculate interest expense to be reclassified to discontinued operations for historical periods presented. The following table summarizes the amount of interest expense related to the previous credit facility that has been reclassified to discontinued operations.

	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Interest on debt	$	11,214	$	23,350
Amortization of debt issuance costs	1,251		2,477
Capitalized interest	(182)		(405)
Other	57		188
Total interest expense of discontinued operations	$	12,340	$	25,610

10

The following table presents the significant noncash items and cash paid for capital expenditures of discontinued operations for the historical period presented.

	Six Months Ended June 30, 2020
Depreciation and amortization	$	23,701
Goodwill impairment	146,757
Amortization of debt issuance costs	2,477
Acquisition of property, plant and equipment	6,036
Right-of-use assets obtained in exchange for new finance lease liabilities	696
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	6,064

_______________________________

(1) Includes new leases, renewals, and modifications.

Note 3. Segment Information

Our business is aggregated into the following two reportable segments:

•Mobile Solutions, which is focused on growth in the automotive and general industrial end markets; and

•Power Solutions, which is focused on growth in the electrical, general industrial, automotive, aerospace, defense, and medical end markets.

These divisions are considered our two operating segments as each engages in business activities for which it earns revenues and incurs expenses, discrete financial information is available for each, and this is the level at which the chief operating decision maker reviews discrete financial information for purposes of allocating resources and assessing performance. Historically, we had a third operating segment, Life Sciences, that was focused on growth in the medical end market. See Note 2 for information regarding the sale of the Life Sciences business on October 6, 2020. The results of the Life Sciences business are classified as discontinued operations for the three and six months ended June 30, 2020, and therefore are not included in the tabular presentation below.

The following tables present results of continuing operations by reportable segment.

	Mobile Solutions		Power Solutions		Corporate and Consolidations			Total
Three Months Ended June 30, 2021
Net sales	$	73,886	$	49,271	$	—	(a)	$	123,157
Income (loss) from operations	2,509		2,875		(6,972)			$	(1,588)
Interest expense								(3,573)
Other								(1,680)
Loss from continuing operations before income taxes and share of net income from joint venture								$	(6,841)
Three Months Ended June 30, 2020
Net sales	$	41,037	$	37,491	$	4	(a)	$	78,532
Income (loss) from operations	(4,592)		1,454		(8,039)			$	(11,177)
Interest expense								(6,356)
Other								1,215
Loss from continuing operations before income taxes and share of net income from joint venture								$	(16,318)

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	Mobile Solutions		Power Solutions		Corporate and Consolidations			Total
Six Months Ended June 30, 2021
Net sales	$	151,662	$	98,346	$	(47)	(a)	$	249,961
Income (loss) from operations	8,599		5,307		(14,516)			$	(610)
Interest expense								(5,597)
Other								(7,698)
Loss from continuing operations before income taxes and share of net income from joint venture								$	(13,905)
Six Months Ended June 30, 2020
Net sales	$	110,921	$	83,892	$	(68)	(a)	$	194,745
Goodwill impairment	—		92,942		—			92,942
Loss from operations	(4,328)		(88,880)		(21,819)			$	(115,027)
Interest expense								(10,163)
Other								(329)
Loss from continuing operations before income taxes and share of net income from joint venture								$	(125,519)

_______________________________

(a)Includes elimination of intersegment transactions occurring during the ordinary course of business.

As of June 30, 2021, and December 31, 2020, one customer represented 11% and 11%, respectively, of consolidated accounts receivable. Amounts due from this customer are primarily related to Mobile Solutions.

Note 4. Inventories

Inventories are comprised of the following amounts:

	June 30, 2021		December 31, 2020
Raw materials	$	27,456	$	22,589
Work in process	25,764		20,758
Finished goods	21,550		19,170
Total inventories	$	74,770	$	62,517

Note 5. Goodwill

During the first quarter of 2020, our market capitalization declined to a level that was less than the net book value of our stockholders’ equity. The decline in market capitalization was a triggering event that caused us to perform a goodwill impairment analysis as of March 31, 2020. The goodwill impairment analysis required significant judgments to calculate the fair value for the Power Solutions reporting unit, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term growth rate for the operating segment, and determination of weighted average cost of capital. Our forecasts used in the goodwill impairment analysis reflected our expectations of declines in sales resulting from COVID-19. Significant assumptions and estimates are involved in the application of the discounted cash flow model to forecast operating cash flows, including market growth and market share, sales volumes and prices, costs to produce, discount rate, and estimated capital needs. Management considers historical experience and all available information at the time the fair values of its reporting units are estimated. Assumptions in estimating future cash flows are subject to a high degree of judgment and complexity. The carrying value of the Power Solutions reporting unit exceeded the estimated fair value as of the March 31, 2020, analysis. As a result of our analysis, we recorded an impairment loss on goodwill of $92.9 million to the “Goodwill impairment” line on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). As of June 30, 2021, and December 31, 2020, there was no remaining goodwill balance.

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Note 6. Intangible Assets, Net

The following table shows changes in the carrying amount of intangible assets, net, by reportable segment.

	Mobile Solutions		Power Solutions		Total
Balance as of December 31, 2020	$	29,062	$	74,003	$	103,065
Amortization	(1,677)		(5,497)		(7,174)
Balance as of June 30, 2021	$	27,385	$	68,506	$	95,891

Intangible assets are tested for impairment when changes in circumstances indicate the carrying value of those assets may not be recoverable. As of June 30, 2021, and December 31, 2020, there were no indicators of impairment.

Note 7. Investment in Joint Venture

We own a 49% investment in Wuxi Weifu Autocam Precision Machinery Company, Ltd. (the “JV”), a joint venture located in Wuxi, China. The JV is jointly controlled and managed, and we account for it under the equity method.

The following table shows changes in our investment in the JV.

Balance as of December 31, 2020	$	26,983
Share of earnings	2,614
Foreign currency translation gain	300
Balance as of June 30, 2021	$	29,897

Note 8. Income Taxes

Our effective tax rate for continuing operations was 3.4% and 7.1% for the three and six months ended June 30, 2021, respectively, and (13.3)% and (0.6)% for the three and six months ended June 30, 2020, respectively. The effective tax rate for the three and six months ended June 30, 2021, differs from the U.S. federal statutory tax rate of 21% primarily due to the accrual of tax on non-permanently reinvested unremitted earnings of foreign subsidiaries and by limitation on the amount of tax benefit recorded for loss carryforwards in certain jurisdictions where we believe it is more likely than not that a portion of the future tax benefit may not be realized. In addition, the effective tax rate was unfavorably impacted by U.S. tax on the earnings of foreign subsidiaries under the global intangible low-taxed income (“GILTI”) regime.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted. The provisions of the legislation had a significant impact on our effective tax rate and income tax receivable as of and for the six months ended June 30, 2020. Under the CARES Act, NOLs arising in tax years beginning after December 31, 2017, were carried back to preceding tax years when the federal tax rate was 35% rather than the currently enacted 21%. The effective tax rate for the three and six months ended June 30, 2020, was also adversely impacted by the effect of the non-deductible goodwill impairment on the estimated annual effective tax rate and the impact of the minimum GILTI tax, partially offset by impacts from the CARES Act.

Note 9. Debt

On March 22, 2021, we entered into a new $150.0 million term loan facility (the “Term Loan Facility”) and a new $50.0 million asset backed credit facility (the “ABL Facility”). The proceeds from the Term Loan Facility were used to prepay the amounts outstanding on our previous term loans. The previous credit facility was terminated and consisted of a Senior Secured Term Loan, Incremental Term Loan, and Senior Secured Revolver. No amounts were outstanding on the Senior Secured Revolver at the time of termination.

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The following table presents debt balances as of June 30, 2021, and December 31, 2020.

	June 30, 2021		December 31, 2020
Term Loan Facility	$	149,625	$	—
Senior Secured Term Loan	—		47,728
Incremental Term Loan	—		22,716
International lines of credit and other loans	12,171		14,418
Total principal	161,796		84,862
Less-current maturities of long-term debt	4,808		4,885
Principal, net of current portion	156,988		79,977
Less-unamortized debt issuance costs and discount (1)	6,260		952
Long-term debt, net of current portion	$	150,728	$	79,025

_______________________________

(1) In addition to this amount, costs of $0.8 million related to the ABL Facility were recorded in other non-current assets as of June 30, 2021, and $1.8 million related to the Senior Secured Revolver were recorded in other non-current assets as of December 31, 2020.

We capitalized interest costs of $0.1 million and less than $0.1 million in the three months ended June 30, 2021 and 2020, respectively, and $0.1 million and $0.1 million in the six months ended June 30, 2021 and 2020, respectively, related to construction in progress.

Term Loan Facility

Outstanding borrowings under the Term Loan Facility bear interest at either 1) one-month LIBOR (subject to a 1.000% floor) plus an applicable margin of 6.875% or 2) the greater of various benchmark rates plus an applicable margin of 5.875%. At June 30, 2021, the Term Loan Facility bore interest, based on one-month LIBOR, at 7.875%.

The Term Loan Facility requires quarterly principal payments of $0.4 million with the remaining unpaid principal amount due on the final maturity date of September 22, 2026. The Term Loan Facility is collateralized by all of our assets. The Term Loan Facility has a first lien on all assets other than accounts receivable and inventory and has a second lien on accounts receivable and inventory. We were in compliance with all requirements under the Term Loan Facility as of June 30, 2021.

The Term Loan Facility was issued at a $3.8 million discount. We capitalized an additional $2.8 million in new debt issuance costs related to the Term Loan Facility. Debt issuance costs and original issue discount related to the Term Loan Facility are recorded as a direct reduction to the carrying amount of the associated long-term debt and amortized over the term of the debt.

ABL Facility

The ABL Facility provides for a senior secured revolving credit facility in the amount of $50.0 million, of which $30.0 million is available in the form of letters of credit and $5.0 million is available for the issuance of short-term swingline loans. The availability of credit under the ABL Facility is limited by a borrowing base calculation derived from accounts receivable and inventory held in the United States. Outstanding borrowings under the ABL Facility bear interest on a variable rate structure plus an interest rate spread that is based on the average amount of aggregate revolving commitment available. The variable borrowing rate is either 1) LIBOR plus an applicable margin of 1.75% or 2.00%, depending on availability, or 2) the greater of the federal funds rate or prime, plus an applicable margin of 0.75% or 1.00%, depending on availability. We may elect whether to use one-month, three-month, or six-month LIBOR, subject to a 0.50% floor. Interest payments are due monthly on borrowings that utilize one-month LIBOR and quarterly on borrowings that utilize three-month or six-month LIBOR. At June 30, 2021, using one-month LIBOR plus a 1.75% spread, the weighted average interest rate on outstanding borrowings under the ABL Facility would have been 2.25% if there had been any balance outstanding. We pay a commitment fee of 0.375% for unused capacity under the ABL Facility and a 0.125% fee on the amount of letters of credit outstanding. The final maturity date of the ABL Facility is March 22, 2026.

We had no outstanding borrowings under the ABL Facility at June 30, 2021. Total capacity under the ABL Facility was $44.2 million as of June 30, 2021, of which $30.2 million was available for future borrowings after reductions for outstanding letters of credit as of June 30, 2021. The ABL Facility has a first lien on accounts receivable and inventory. We were in compliance with all requirements under the ABL Facility as of June 30, 2021.

We capitalized a total of $0.8 million in new debt issuance costs related to the ABL Facility. Costs related to the ABL Facility are recorded in other non-current assets and amortized over the term of the agreement.

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Senior Secured Term Loan

Outstanding borrowings under the Senior Secured Term Loan bore interest at one-month LIBOR (subject to a 0.75% floor) plus an applicable margin of 5.75%. During 2021 until termination, the Senior Secured Term Loan bore interest at 6.50%.

Incremental Term Loan

Outstanding borrowings under the Incremental Term Loan bore interest at one-month LIBOR plus an applicable margin of 5.75%. During 2021 until termination, the Incremental Term Loan bore interest at 5.90%.

Senior Secured Revolver

Outstanding borrowings under the Senior Secured Revolver bore interest on a variable rate structure at either 1) one-month LIBOR plus an applicable margin of 4.00% or 2) the prime lending rate plus an applicable margin of 3.00%. We had no outstanding borrowings under the Senior Secured Revolver during 2021. We incurred a commitment fee of 0.50% for unused capacity under the Senior Secured Revolver until it was terminated.

Debt Issuance Costs

We recognized a $2.4 million loss on extinguishment for unamortized debt issuance costs that were written off in the six months ended June 30, 2021, in connection with the termination of our previous credit facility.

Interest Rate Swap

A portion of the proceeds from the Term Loan Facility was used to settle and terminate our fixed-rate interest rate swap agreement with a cash payment of $13.7 million during the first quarter of 2021. Refer to Note 17 for further discussion of the interest rate swap agreement. On July 22, 2021, we entered into a new interest rate swap as discussed in Note 18.

Note 10. Leases

The following table contains supplemental cash flow information related to leases of continuing operations.

	Six Months Ended June 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in finance leases	$	113	$	94
Operating cash flows used in operating leases	7,221		7,312
Financing cash flows used in finance leases	2,370		936
Right-of-use assets obtained in exchange for new finance lease liabilities	636		710
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	—		9,334

_______________________________

(1) Includes new leases, renewals, and modifications.

As disclosed in our 2020 Annual Report, we amended the lease of our corporate headquarters building in March 2020 to exit over half of the previously leased space and reduce annual base rent payments. The amendment was accounted for as a lease modification, and the remeasurement of the lease resulted in an $8.1 million decrease in the operating lease right-of-use (“ROU”) asset, a $10.5 million decrease in the noncurrent portion of the operating lease liability, and a $0.6 million decrease in the current portion of the operating lease liability. The $3.0 million difference between the change in the operating lease ROU asset and the operating lease liabilities was recognized in “Other operating expense (income), net,” on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). In connection with the discontinued use of the previously leased space, we also recognized a $4.4 million termination charge and a $2.9 million impairment charge on the associated leasehold improvements, all of which were also recognized in “Other operating expense (income), net.”

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Note 11. Commitments and Contingencies

Brazil ICMS Tax Matter

Prior to the acquisition of Autocam Corporation (“Autocam”) in 2014, Autocam’s Brazilian subsidiary (“Autocam Brazil”) received notification from the Brazilian tax authority regarding ICMS (state value added tax or “VAT”) tax credits claimed on intermediary materials (e.g., tooling and perishable items) used in the manufacturing process. The Brazilian tax authority notification disallowed state ICMS tax credits claimed on intermediary materials based on the argument that these items are not intrinsically related to the manufacturing processes. Autocam Brazil filed an administrative defense with the Brazilian tax authority arguing, among other matters, that it should qualify for an ICMS tax credit, contending that the intermediary materials are directly related to the manufacturing process.

We believe that we have substantial legal and factual defenses, and we plan to defend our interests in this matter vigorously. The matter encompasses several lawsuits filed with the Brazilian courts requesting declaratory actions that no tax is due or seeking a stay of execution on the collection of the tax. In 2018, we obtained a favorable decision in one of the declaratory actions for which the period for appeal has expired. We have filed actions in each court requesting dismissal of the matter based on the earlier court action. In May 2020, we received an unfavorable decision in one of the lawsuits, and as a result have recorded a liability to the Brazilian tax authorities and a receivable from the former shareholders of Autocam for the same amount. Although we anticipate a favorable resolution to the remaining matters, we can provide no assurances that we will be successful in achieving dismissal of all pending cases. The U.S. dollar amount that would be owed in the event of an unfavorable decision is subject to interest, penalties, and currency impacts and therefore is dependent on the timing of the decision. For the remaining open lawsuits, we currently believe the cumulative potential liability in the event of unfavorable decisions on all matters will be less than $5.0 million, inclusive of interest and penalties.

We are entitled to indemnification from the former shareholders of Autocam, subject to the limitations and procedures set forth in the agreement and plan of merger relating to the Autocam acquisition. Management believes the indemnification would include amounts owed for the tax, interest, and penalties related to this matter. Accordingly, we don’t expect to incur a loss related to this matter even in the event of an unfavorable decision and, therefore, have not accrued an amount for the remaining matters as of June 30, 2021.

Securities Offering Matter

On November 1, 2019, Erie County Employees’ Retirement System, on behalf of a purported class of plaintiffs, filed a complaint in the Supreme Court of the State of New York, County of New York, against the Company, certain of the Company’s current and former officers and directors, and each of the underwriters involved in the Company’s public offering and sale of 14.4 million shares of its common stock pursuant to a preliminary prospectus supplement, dated September 10, 2018, a final prospectus supplement, dated September 13, 2018, and a base prospectus, dated April 19, 2017, relating to the Company’s effective shelf registration statement on Form S-3 (File No. 333-216737) (the “Offering”), which complaint was amended on January 24, 2020. The complaint alleges violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 in connection with the Offering. The plaintiffs seek to represent a class of stockholders who purchased shares of the Company’s common stock in the Offering. The complaint seeks unspecified monetary damages and other relief. The Company believes the complaint and allegations to be without merit and intends to vigorously defend itself against these actions. The Company is unable at this time to determine whether the outcome of the litigation would have a material impact on the Company’s financial position, results of operations, or cash flows.

Other Legal Matters

On October 26, 2020, Corre Opportunities Qualified Master Fund, LP, and Corre Horizon Fund, LP, (collectively, “Corre Partners”) filed a complaint in the Chancery Court of the State of Delaware against the Company. The complaint alleged that the Company’s sale of its Life Sciences business without obtaining the prior consent of the plaintiffs was a breach of the terms of the Series B Preferred Stock. On May 13, 2021, Company entered into a cooperation agreement with Corre Partners. In connection with the cooperation agreement, on May 13, 2021, the Company also entered into a settlement agreement with Corre Partners, which resolved the complaint.

All other legal proceedings are of an ordinary and routine nature and are incidental to our operations. Management believes that such proceedings should not, individually or in the aggregate, have a material adverse effect on our business, financial condition, results of operations, or cash flows. In making that determination, we analyze the facts and circumstances of each case at least quarterly in consultation with our attorneys and determine a range of reasonably possible outcomes.

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Note 12. Preferred Stock and Stockholders' Equity

Series D Perpetual Preferred Stock

On March 22, 2021, we completed a private placement of 65 thousand shares of newly designated Series D Perpetual Preferred Stock, with a par value of $0.01 per share (the “Series D Preferred Stock”), at a price of $1,000 per share, together with detachable warrants (the “2021 Warrants”) to purchase up to 1.9 million shares of our common stock at an exercise price of $0.01 per share. The Series D Preferred Stock has an initial liquidation preference of $1,000 per share and is redeemable at our option in cash at a redemption price equal to the liquidation preference then in effect. Series D Preferred Stock shares earn cash dividends at a rate of 10.0% per year, payable quarterly in arrears, accruing whether or not earned or declared. If no cash dividend is paid, then the liquidation preference per share effective on the dividend date increases by 12.0% per year. On March 22, 2026, the cash dividend rate and in-kind dividend rate increase by 2.5% per year. Cash dividends are required beginning on September 30, 2027.

The Series D Preferred Stock is classified as mezzanine equity, between liabilities and stockholders’ equity, because certain features of the Series D Preferred Stock could require redemption of the Series D Preferred Stock upon a change of control event that is considered not solely within our control. For initial recognition, the Series D Preferred Stock was recognized at a discounted value, net of issuance costs and allocation to warrants and a bifurcated embedded derivative. The aggregate discount is amortized as a deemed dividend through March 22, 2026, which is the date the dividend rate begins to increase by 2.5% per year. Deemed dividends adjust retained earnings (or in the absence of retained earnings, additional paid-in capital).

In accordance with ASC 815-15, Derivatives and Hedging - Embedded Derivatives, certain features of the Series D Preferred Stock were bifurcated and accounted for as derivatives separately. Note 17 discusses the accounting for these features.

As of June 30, 2021, the carrying value of the Series D Preferred Stock shares was $49.1 million which included $2.4 million of accumulated unpaid and deemed dividends. The following table presents the change in the Series D Preferred Stock carrying value during the six months ended June 30, 2021.

	Six Months Ended June 30, 2021
Beginning balance	$	—
Proceeds from issuance of shares, net of issuance costs	61,793
Fair value of 2021 Warrants issued	(14,839)
Recognition of bifurcated embedded derivative	(282)
Accrual of in-kind dividends	2,123
Amortization	274
Ending balance	$	49,069

Net cash proceeds of $61.8 million from the issuance of the Series D Preferred Stock, along with part of the proceeds from the Term Loan Facility, were used to redeem all of the outstanding shares of the Company’s Series B Convertible Preferred Stock (the “Series B Preferred Stock”).

Series B Convertible Preferred Stock

The Series B Preferred Stock had a liquidation preference of $1,000 per share and was redeemable in cash at our option, subject to the applicable redemption premium. Series B Preferred Stock shares earned cumulative dividends at a rate of 10.625% per year, and accrued whether or not earned or declared. The Series B Preferred Stock was recognized at a discounted value, net of issuance costs and allocation to warrants and bifurcated embedded derivatives. The aggregate discount was amortized as a deemed dividend through December 31, 2023, which is the date the holders had a non-contingent conversion option into a variable number of common shares equal to the liquidation preference plus accrued and unpaid dividends. Deemed dividends adjust retained earnings (or in the absence of retained earnings, additional paid-in capital).

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At redemption on March 22, 2021, the carrying value of the Series B Preferred Stock shares included $14.3 million of accumulated unpaid and deemed dividends. The following table presents the change in the Series B Preferred Stock carrying value during the six months ended June 30, 2021.

	Six Months Ended June 30, 2021
Beginning balance	$	105,086
Accrual of in-kind dividends	14,008
Amortization	335
Redemption	(119,429)
Ending balance	$	—

Preferred Share Purchase Rights

On April 15, 2020, our Board of Directors authorized and declared a dividend of one preferred share purchase right for each outstanding share of common stock to shareholders of record on April 27, 2020. The rights expired on March 31, 2021.

Note 13. Revenue from Contracts with Customers

Revenue is recognized when control of the good or service is transferred to the customer either at a point in time or, in limited circumstances, as our services are rendered over time. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or services. The following tables summarize revenue by customer geographical region.

	Three Months Ended June 30, 2021
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
United States and Puerto Rico	$	35,284	$	39,424	$	—	$	74,708
China	13,219		1,282		—		14,501
Brazil	9,985		343		—		10,328
Mexico	4,829		4,349		—		9,178
Germany	1,369		96		—		1,465
Poland	904		3		—		907
Other	8,296		3,774		—		12,070
Total net sales	$	73,886	$	49,271	$	—	$	123,157

	Three Months Ended June 30, 2020
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
United States and Puerto Rico	$	20,237	$	30,859	$	4	$	51,100
China	10,726		1,252		—		11,978
Brazil	2,132		63		—		2,195
Mexico	2,456		4,119		—		6,575
Germany	851		90		—		941
Poland	341		3		—		344
Other	4,294		1,105		—		5,399
Total net sales	$	41,037	$	37,491	$	4	$	78,532

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	Six Months Ended June 30, 2021
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
United States and Puerto Rico	$	72,722	$	79,230	$	(47)	$	151,905
China	27,633		2,788		—		30,421
Brazil	19,653		535		—		20,188
Mexico	9,844		7,746		—		17,590
Germany	3,136		260		—		3,396
Poland	2,084		7		—		2,091
Other	16,590		7,780		—		24,370
Total net sales	$	151,662	$	98,346	$	(47)	$	249,961

	Six Months Ended June 30, 2020
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
United States and Puerto Rico	$	57,366	$	69,156	$	(68)	$	126,454
China	18,418		2,409		—		20,827
Brazil	10,715		193		—		10,908
Mexico	7,292		6,262		—		13,554
Germany	3,001		129		—		3,130
Poland	2,099		8		—		2,107
Other	12,030		5,735		—		17,765
Total net sales	$	110,921	$	83,892	$	(68)	$	194,745

The following tables summarize revenue by customer industry. Our products in the automotive industry include high-precision components and assemblies for fuel systems, steering systems, electric motors, transmissions, moldings, stampings, sensors, and electrical contacts. Our products in the general industrial industry include high-precision metal and plastic components for a variety of industrial applications including heating and cooling systems, fluid power systems, power tools, and more. While many of the industries we serve include electrical components, our products in the residential/commercial electrical industry category in the following tables include electrical contact assemblies, precision stampings, welded contact assemblies, and specification plating and surface finishing.

	Three Months Ended June 30, 2021
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
Automotive	$	46,247	$	12,121	$	—	$	58,368
General Industrial	24,449		13,625		—		38,074
Residential/Commercial Electrical	—		16,798		—		16,798
Other	3,190		6,727		—		9,917
Total net sales	$	73,886	$	49,271	$	—	$	123,157

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	Three Months Ended June 30, 2020
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
Automotive	$	22,511	$	6,817	$	—	$	29,328
General Industrial	17,178		11,345		—		28,523
Residential/Commercial Electrical	—		12,838		—		12,838
Other	1,348		6,491		4		7,843
Total net sales	$	41,037	$	37,491	$	4	$	78,532

	Six Months Ended June 30, 2021
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
Automotive	$	96,391	$	25,581	$	—	$	121,972
General Industrial	48,759		27,335		—		76,094
Residential/Commercial Electrical	—		31,980		—		31,980
Other	6,512		13,450		(47)		19,915
Total net sales	$	151,662	$	98,346	$	(47)	$	249,961

	Six Months Ended June 30, 2020
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
Automotive	$	71,585	$	19,181	$	—	$	90,766
General Industrial	35,157		23,888		—		59,045
Residential/Commercial Electrical	—		26,699		—		26,699
Other	4,179		14,124		(68)		18,235
Total net sales	$	110,921	$	83,892	$	(68)	$	194,745

Transaction Price Allocated to Future Performance Obligations

We are required to disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2021, unless our contracts meet one of the practical expedients. Our contracts met the practical expedient for a performance obligation that is part of a contract that has an original expected duration of one year or less.

Sales Concentration

We recognized sales from a single customer of $13.2 million, or 11% and $26.2 million, or 11%, of consolidated net sales, during the three and six months ended June 30, 2021, respectively. We recognized sales from this customer of $9.2 million, or 12% of consolidated net sales, during the three months ended June 30, 2020. Revenues from this customer are primarily in our Mobile Solutions segment.

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Note 14. Share-Based Compensation

Share-based compensation cost is recognized in the “Selling, general, and administrative expense” line in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) except for $0.2 million and $0.4 million, attributable to discontinued operations for the three and six months ended June 30, 2020, respectively. The following table lists the components of share-based compensation expense by type of award. 

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Stock options	$	59	$	140	$	148	$	321
Restricted stock	591		936		1,139		1,828
Performance share units	450		335		699		558
Change in estimate of share-based award vesting (1)	(337)		—		(337)		—
Share-based compensation expense	$	763	$	1,411	$	1,649	$	2,707

_______________________________ 

(1)    Amounts reflect the decrease in share-based compensation expense based on the change in estimate of the probability of vesting of share-based awards.

Stock Options

The following table presents stock option activity for the six months ended June 30, 2021.

	Number of Options (in thousands)	Weighted- Average Exercise Price (per share)		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2021	871	$	12.41
Exercised	(6)	7.93
Forfeited or expired	(71)	13.81
Outstanding at June 30, 2021	794	$	12.32	3.6 years	$	—	(1)
Exercisable at June 30, 2021	698	$	12.79	3.0 years	$	—	(1)

_______________________________ 

(1)The aggregate intrinsic value is the sum of intrinsic values for each exercisable individual option grant. The intrinsic value is the amount by which the closing market price of our stock at June 30, 2021, was greater than the exercise price of any individual option grant.

Restricted Stock

During the six months ended June 30, 2021, we granted 459 thousand shares of restricted stock to non-executive directors, officers and certain other key employees. The shares of restricted stock granted during the six months ended June 30, 2021, vest pro-rata generally over three years for employees and over one year for non-executive directors. We determined the fair value of the shares awarded by using the closing price of our common stock as of the date of grant. The weighted average grant date fair value of restricted stock granted in the six months ended June 30, 2021, was $6.84 per share. Total grant date fair value of restricted stock that vested in the six months ended June 30, 2021, was $2.8 million.

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The following table presents the status of unvested restricted stock awards as of June 30, 2021, and changes during the six months then ended.

	Nonvested Restricted Shares (in thousands)	Weighted Average Grant-Date Fair Value (per share)
Unvested at January 1, 2021	385	$	9.42
Granted	459	6.84
Vested	(303)	9.34
Forfeited	(65)	7.20
Unvested at June 30, 2021	476	$	7.28

Performance Share Units

Performance Share Units (“PSUs”) are a form of long-term incentive compensation awarded to executive officers and certain other key employees designed to directly align the interests of employees to the interests of our stockholders, and to create long-term stockholder value. PSUs granted in 2021 were made pursuant to the NN, Inc. 2019 Omnibus Incentive Plan and a Performance Share Unit Agreement (the “2019 Omnibus Agreement”). Some PSUs are based on total shareholder return (“TSR Awards”), and other PSUs are based on return on invested capital (“ROIC Awards”).

The TSR Awards vest, if at all, upon our achieving a specified relative total shareholder return, which will be measured against the total shareholder return of the S&P SmallCap 600 Index during specified performance periods as defined in the 2019 Omnibus Agreement. The ROIC Awards vest, if at all, upon our achieving a specified average return on invested capital during the performance periods. Each performance period generally begins on January 1 of the year of grant and ends 36 months later on December 31.

We recognize compensation expense over the performance period in which the performance and market conditions are measured. If the PSUs do not vest at the end of the performance periods, then the PSUs will expire automatically. Upon vesting, the PSUs will be settled by the issuance of shares of our common stock, subject to the award recipient’s continued employment. The actual number of shares of common stock to be issued to each award recipient at the end of the performance periods will be interpolated between a threshold and maximum payout amount based on actual performance results. No dividends will be paid on outstanding PSUs during the performance period; however, dividend equivalents will be paid based on dividends declared and the number of shares of common stock that are ultimately earned at the end of the performance periods.

With respect to the TSR and ROIC Awards, a participant will earn 50% of the target number of PSUs for “Threshold Performance,” 100% of the target number of PSUs for “Target Performance,” and 150% of the target number of PSUs for “Maximum Performance.” For performance levels falling between the values shown below, the percentages will be determined by interpolation.

The following table presents the goals with respect to TSR Awards and ROIC Awards granted or modified in 2021.

TSR Awards:	Threshold Performance (50% of Shares)	Target Performance (100% of Shares)	Maximum Performance (150% of Shares)
2021 grants	35th Percentile	50th Percentile	75th Percentile
ROIC Awards:	Threshold Performance (50% of Shares)	Target Performance (100% of Shares)	Maximum Performance (150% of Shares)
2021 grants	6.3%	7.0%	8.6%
2020 grants (1)	6.7%	7.9%	8.7%

_______________________________

(1)The performance levels for 2020 grants were modified by the compensation committee of the board of directors in the first quarter of 2021 to adjust for the sale of the Life Sciences business and the ongoing effects of the COVID-19 pandemic.

We estimate the grant date fair value of TSR Awards using the Monte Carlo simulation model, as the total shareholder return metric is considered a market condition under ASC Topic 718, Compensation – stock compensation. The grant date fair value of ROIC Awards is based on the closing price of a share of our common stock on the date of grant.

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The following table presents the number of PSUs granted and the grant date fair value in the period presented.

	TSR Awards		ROIC Awards
Award Year	Shares (in thousands)	Grant Date Fair Value (per share)	Shares (in thousands)	Grant Date Fair Value (per share)
2021	142	$8.58	172	$7.20

We recognize expense for ROIC Awards based on the probable outcome of the associated performance condition. We generally recognize an expense for ROIC Awards based on the Target Performance threshold of 100% because, at the date of grant, the Target Performance is the probable level of performance achievement.

The following table presents the status of unvested PSUs as of June 30, 2021, and changes during the six months then ended.

	Nonvested TSR Awards			Nonvested ROIC Awards
	Shares (in thousands)	Weighted Average Grant-Date Fair Value (per share)		Shares (in thousands)	Weighted  Average Grant-Date Fair Value (per share)
Nonvested at January 1, 2021	138	$	10.58	160	$	9.13
Granted	142	8.58		172	7.20
Forfeited	(61)	9.61		(71)	8.17
Nonvested at June 30, 2021	219	$	9.55	261	$	8.12

Change in Vesting Estimates

During the six months ended June 30, 2021, we recognized a decrease in share-based compensation expense in continuing operations of $0.3 million in the “Selling, general, and administrative expense” line in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) to reverse cumulative expense for restricted stock and PSU awards that were forfeited upon termination of employment and were in excess of our estimated forfeiture rate.

Note 15. Accumulated Other Comprehensive Income

The following tables present the components of accumulated other comprehensive income (“AOCI”).

	Foreign Currency Translation		Interest rate swap		Income taxes (1)		Total
Balance at March 31, 2021	$	(34,228)	$	—	$	—	$	(34,228)
Net other comprehensive income (loss)	4,409		—		—		4,409
Balance at June 30, 2021	$	(29,819)	$	—	$	—	$	(29,819)
Balance at March 31, 2020	$	(49,501)	$	(25,463)	$	5,911	$	(69,053)
Other comprehensive income (loss) before reclassifications	994		(1,635)		380		(261)
Amounts reclassified from AOCI to interest expense (2)	—		3,436		(798)		2,638
Net other comprehensive income (loss)	994		1,801		(418)		2,377
Balance at June 30, 2020	$	(48,507)	$	(23,662)	$	5,493	$	(66,676)

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	Foreign Currency Translation		Interest rate swap		Income taxes (1)		Total
Balance at December 31, 2020	$	(30,881)	$	(3,712)	$	861	$	(33,732)
Other comprehensive income (loss) before reclassifications	1,062		—		—		1,062
Amounts reclassified from AOCI to loss on interest rate swap (3)	—		3,712		(861)		2,851
Net current-period other comprehensive income (loss)	1,062		3,712		(861)		3,913
Balance at June 30, 2021	$	(29,819)	$	—	$	—	$	(29,819)
Balance at December 31, 2019	$	(35,159)	$	(12,234)	$	2,839	$	(44,554)
Other comprehensive income (loss) before reclassifications	(13,348)		(16,234)		3,770		(25,812)
Amounts reclassified from AOCI to interest expense (2)	—		4,806		(1,116)		3,690
Net current-period other comprehensive income (loss)	(13,348)		(11,428)		2,654		(22,122)
Balance at June 30, 2020	$	(48,507)	$	(23,662)	$	5,493	$	(66,676)

_______________________

(1) Income tax effect of changes in interest rate swap.

(2) Represents settlements on the interest rate swap while the hedge was effective.

(3) Represents reclassification of derivative loss and settlements after discontinuation of hedge accounting.

Note 16. Net Income (Loss) Per Common Share

In accordance with ASC 260, Earnings Per Share, a company that has participating securities is required to utilize the two-class method for calculating earnings per share (“EPS”) unless the treasury stock method results in lower EPS. The two-class method is an allocation of earnings between the holders of common stock and a company’s participating securities. Basic EPS is calculated by dividing income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding. To calculate diluted EPS, basic EPS is further adjusted to include the effect of potentially dilutive stock options, warrants, and convertible preferred stock. 

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The following table summarizes the computation of basic and diluted net loss per common share.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator:
Loss from continuing operations	$	(5,391)	$	(17,566)	$	(10,304)	$	(125,643)
Less: Preferred stock cumulative dividends and deemed dividends	(2,211)		(3,043)		(16,740)		(5,994)
Numerator for basic and diluted loss from continuing operations per common share (1)	(7,602)		(20,609)		(27,044)		(131,637)
Loss from discontinued operations, net of tax (Note 2)	—		(4,182)		—		(144,296)
Numerator for basic and diluted undistributed net loss per common share (1)	$	(7,602)	$	(24,791)	$	(27,044)	$	(275,933)
Denominator:
Weighted average common shares outstanding	43,067		42,753		42,952		42,671
Adjustment for unvested restricted common stock	(524)		(556)		(450)		(517)
Adjustment for 2021 Warrants outstanding (2)	1,897		—		1,059		—
Shares used to calculate income (loss) per share, basic and diluted	44,440		42,197		43,561		42,154
Per common share net loss:
Basic loss from continuing operations per common share	$	(0.17)	$	(0.49)	$	(0.62)	$	(3.12)
Basic loss from discontinued operations per common share	—		(0.10)		—		(3.43)
Basic net loss per common share	$	(0.17)	$	(0.59)	$	(0.62)	$	(6.55)
Diluted loss from continuing operations per common share	$	(0.17)	$	(0.49)	$	(0.62)	$	(3.12)
Diluted loss from discontinued operations per common share	—		(0.10)		—		(3.43)
Diluted net loss per common share	$	(0.17)	$	(0.59)	$	(0.62)	$	(6.55)
Cash dividends declared per common share	$	—	$	—	$	—	$	—

_______________________________

(1) Preferred Stock does not participate in losses.

(2) Weighted average 2021 Warrants outstanding are included in shares outstanding for calculation of basic earnings per share because they are exercisable at an exercise price of $0.01 per share, subject to certain adjustments (see Note 17).

The following table presents securities that could be potentially dilutive in the future that were excluded from the calculation of diluted net loss per common share because they had an anti-dilutive effect.

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Options	825	890	843	890
2019 Warrants	1,500	1,500	1,500	1,500
Series B Preferred Stock, as-converted	—	25,278	—	25,278
	2,325	27,668	2,343	27,668

We have elected to allocate undistributed income to participating securities based on year-to-date results. As there was no undistributed income for the three and six months ended June 30, 2021, no such allocation was necessary. In addition, given the undistributed loss from continuing operations in the three and six months ended June 30, 2021 and 2020, options and the 2019 Warrants are considered anti-dilutive and were excluded from the calculation of diluted net loss per share. Stock options excluded from the calculations of diluted net loss per share had a per share exercise price ranging from $7.93 to $25.16 for the three months ended June 30, 2021, and $7.93 to $25.16 for three months ended June 30, 2020. Stock options excluded from the

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calculations of diluted net income (loss) per share had a per share exercise price ranging from $7.93 to $25.16 for the six months ended June 30, 2021, and $7.93 to $25.16 for six months ended June 30, 2020. The 2019 Warrants excluded from the calculation of diluted net loss per share for the three and six months ended June 30, 2021, had a per share exercise price of $11.49. Series B Preferred Stock excluded from the calculation of diluted net loss per share for the three and six months ended June 30, 2020, was calculated on an as-converted basis.

Note 17. Fair Value Measurements

Fair value is an exit price representing the expected amount that an entity would receive to sell an asset or pay to transfer a liability in an orderly transaction with market participants at the measurement date. We followed consistent methods and assumptions to estimate fair values as more fully described in the 2020 Annual Report.

Fair value principles prioritize valuation inputs across three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the assumptions used to measure assets and liabilities at fair value. An asset or liability’s classification within the various levels is determined based on the lowest level input that is significant to the fair value measurement.

Our financial instruments that are subject to fair value disclosure consist of cash and cash equivalents, accounts receivable, accounts payable, derivatives, and long-term debt. As of June 30, 2021, the carrying values of these financial instruments approximated fair value.

Derivative Financial Instruments

Certain features were bifurcated and accounted for separately from the Series B Preferred Stock. The following features were recorded as derivatives.

•Leverage ratio put feature. The Series B Preferred Stock included a redemption option based on a leverage ratio threshold that provided the preferred holder the option to convert the Series B Preferred Stock to a variable number of shares of common stock at a discount to the then fair value of our common stock. The conversion feature was considered a redemption right at a premium which was not clearly and closely related to the debt host. The conversion feature was terminated upon redemption of the Series B Preferred Stock in March 2021.

•Dividends withholding. The Series B Preferred Stock bore a feature that could require us to make an effective distribution to purchasers which is indexed to the tax rate of the purchasers. This distribution would be partially offset by an adjustment to the redemption price and/or conversion rate. The dividends withholding feature was not clearly and closely related to the debt host. Upon redemption of the Series B Preferred Stock in March 2021, we made a net cash distribution of $3.0 million to settle this withholding feature after effectively receiving a $1.0 million offset from the purchasers upon redemption of the Series B Preferred Stock.

•Warrants. The warrants issued with the Series B Preferred Stock (the “2019 Warrants”) are exercisable, in full or in part, at any time prior to December 11, 2026. The original exercise price was $12.00 per share, subject to anti-dilution adjustments in the event of future below market issuances, stock splits, stock dividends, combinations or similar events. The issuance of the 2021 Warrants resulted in an adjusted exercise price of $11.49 per share for the 2019 Warrants because the new warrants have an exercise price below market value.

Certain features were bifurcated and accounted for separately from the Series D Preferred Stock that was issued on March 22, 2021. The following features were recorded as derivatives.

•Change-in-control put feature. The Series D Preferred Stock includes a put feature that allows the holder to redeem the Series D Preferred Stock upon a change in control at the greater of 1) the liquidation preference plus accrued dividends or 2) 140% of the liquidation preference. The put feature is considered a redemption right at a premium and is not clearly and closely related to the debt host.

•Warrants. The 2021 Warrants are exercisable, in full or in part, at any time prior to March 22, 2027, at an exercise price of $0.01 per share, subject to anti-dilution adjustments in the event of certain future equity issuances, stock splits, stock dividends, combinations or similar events.

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The following tables show the liabilities measured at fair value for the above derivatives as of June 30, 2021, and December 31, 2020.

	Fair Value Measurements as of June 30, 2021
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability - other current liabilities	$	—	$	—	$	—
Derivative liability - other non-current liabilities	13,946		—		1,510
Total	$	13,946	$	—	$	1,510

	Fair Value Measurements as of December 31, 2020
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability - other current liabilities	$	—	$	—	$	2,453
Derivative liability - other non-current liabilities	—		—		664
Total	$	—	$	—	$	3,117

The following table presents the change in the above derivatives during the six months ended June 30, 2021.

	Six Months Ended June 30, 2021
Beginning balance	$	3,117
Issuances	15,121
Change in fair value (1)	223
Settlements	(3,005)
Ending balance	$	15,456

_______________________________

(1) Changes in the fair value are recognized in the “Other expense (income), net” line in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

The fair value of the change-in-control put feature utilizes unobservable inputs based on the Company’s assessment of the probability of a change-in-control event occurring in a future period. The probability of a change-in-control event ranged from 1% to 10% as of June 30, 2021.

The leverage ratio put feature, the dividends withholding feature, and the contingent dividends feature utilized unobservable inputs based on the best information available to determine the probability of the Series B Preferred Stock remaining outstanding for future periods. These inputs included probability assessments of how long the Series B Preferred Stock would remain outstanding and whether the leverage ratio threshold would be exceeded. Inputs also included the percentage of Series B Preferred Stock held by non-U.S. resident holders and the applicable tax withholding rates for those holders. The probability of the Series B Preferred Stock remaining in future periods ranged from 3% to 2% as of December 31, 2020. The leverage ratio put feature also utilized unobservable inputs to determine the probability of the leverage ratio put being exercisable as of March 31, 2023, which ranged from 10% to 1% as of December 31, 2020. These probabilities were determined based on management’s assessment of facts and circumstances at each reporting date. An increase in these probabilities would have resulted in an increase in the derivative liability fair value. Given the Series B Preferred Stock value changed by period as a result of dividends and redemption premiums, weighted average values for these assumptions are not meaningful.

The fair value of the 2019 Warrants is determined using a valuation model that utilizes unobservable inputs to determine the probability that the 2019 Warrants will remain outstanding for future periods. The probabilities resulted in a weighted average term of 4.2 years as of June 30, 2021, and 2.4 years as of December 31, 2020.

The fair value of the 2021 Warrants is determined using the observable market price of a share of our common stock, less the $0.01 per share exercise price.

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Interest Rate Swap

We manage our exposure to fluctuations in interest rates using a mix of fixed and variable rate debt. We had a fixed-rate interest rate swap agreement that changed the LIBOR-based portion of the interest rate on a portion of our variable rate debt to a fixed rate of 2.4575% (the “interest rate swap”). On March 22, 2021, we terminated the interest rate swap agreement with a $13.7 million cash payment in connection with the extinguishment of our previously outstanding long-term variable-rate debt.

The interest rate swap was designated as a cash flow hedge at inception. However, in the fourth quarter of 2020, the interest rate swap no longer qualified as an effective hedge, and subsequent changes in fair value of the interest rate swap were recognized in earnings. Amounts recognized in earnings related to the interest rate swap are recorded in the “Loss on interest rate swap” line on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) except that cash settlements prior to termination are recognized in “Derivative payments on interest rate swap.” Cash settlements during 2021 are presented in investing activities on the Condensed Consolidated Statements of Cash Flows. The following table presents the effect of the interest rate swap on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Interest expense	$	—	$	3,436	$	—	$	4,806
Derivative payments on interest rate swap	—		—		1,717		—
Loss on interest rate swap	—		—		2,033		—

The following table presents the liabilities measured at fair value on a recurring basis for the interest rate swap as of December 31, 2020.

	Fair Value Measurements as of December 31, 2020
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability - other current liabilities	$	—	$	11,022	$	—
Derivative liability - other non-current liabilities	—		4,357		—
Total	$	—	$	15,379	$	—

The inputs for determining fair value of the interest rate swap are classified as Level 2 inputs. Level 2 fair value is based on estimates using standard pricing models. These standard pricing models use inputs which are derived from or corroborated by observable market data such as interest rate yield curves, index forward curves, discount curves, and volatility surfaces. Counterparty to this derivative contract is a highly rated financial institution which we believe carries only a minimal risk of nonperformance.

On July 22, 2021, we entered into a new interest rate swap as discussed in Note 18.

Fixed Rate Debt

The fair value of our outstanding fixed-rate debt included in the “International lines of credit and other loans” line item within Note 9 to these Notes to Condensed Consolidated Financial Statements approximated carrying value as of June 30, 2021, and December 31, 2020, respectively. These fair values represent Level 2 under the three-tier hierarchy described above. The carrying value of this fixed-rate debt was $12.2 million and $14.4 million as of June 30, 2021 and December 31, 2020, respectively.

Note 18. Subsequent Event

Interest Rate Swap Agreement

On July 22, 2021, we entered into a new fixed-rate interest rate swap agreement to change the LIBOR-based component of the interest rate on a portion of our variable rate debt to a fixed rate of 1.291%. The interest rate swap has a notional amount of $60.0 million and a maturity date of July 31, 2024.

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The objective of the interest rate swap is to eliminate the variability of cash flows in interest payments on the first $60.0 million of variable rate debt attributable to changes in benchmark one-month LIBOR interest rates. The hedged risk is the interest rate risk exposure to changes in interest payments, attributable to changes in benchmark one-month LIBOR interest rates over the interest rate swap term. The changes in cash flows of the interest rate swap are expected to exactly offset changes in cash flows of the variable rate debt. We designated the interest rate swap as a cash flow hedge at inception.

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

Overview

NN, Inc. is a global diversified industrial company that combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies primarily for the electrical, automotive, general industrial, aerospace, defense, and medical markets. As used in this Quarterly Report, the terms “NN,” the “Company,” “we,” “our,” or “us” refer to NN, Inc. and its subsidiaries.

Forward-Looking Statements

This Quarterly Report contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to NN, Inc., based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “possible,” “potential,” “predict,” “project” or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the impacts of the COVID-19 pandemic on the Company’s financial condition, business operations and liquidity; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; availability of raw materials; currency and other risks associated with international trade; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures; the level of our indebtedness; the restrictions contained in our debt agreements; our ability to obtain financing at favorable rates, if at all, and to refinance existing debt as it matures; unanticipated difficulties integrating acquisitions; new laws and governmental regulations; and other risk factors and cautionary statements listed from time-to-time in our periodic reports filed with the Securities and Exchange Commission. We disclaim any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements included herein or therein to reflect future events or developments.

For additional information concerning such risk factors and cautionary statements, please see the sections titled “Item 1A. Risk Factors” in the 2020 Annual Report and this Quarterly Report.

Results of Operations

Factors That May Influence Results of Operations

The following paragraphs describe factors that have influenced results of operations for the six months ended June 30, 2021, that management believes are important to provide an understanding of the business and results of operations or that may influence operations in the future.

Global COVID-19 Pandemic

The COVID-19 pandemic continues to disrupt the United States and global economy, and we cannot predict when a full economic recovery will occur. Although product volumes are beginning to return to more normalized levels and our operating results in 2021 reflect momentum in the recovery of our business from the effects of the COVID-19 pandemic, a new Delta variant of COVID-19, which appears to be the most transmissible variant to date, has begun to spread in the United States and across the globe. The impact of the Delta variant cannot be predicted at this time and could depend on numerous factors, including vaccination rates among the population, the effectiveness of COVID-19 vaccines against the Delta variant, and the response by governmental bodies and regulators. Further surges in COVID-19 infection rates could result in the reinstatement of directives and mandates requiring businesses to again curtail or cease normal operations. The spread of COVID-19 and the responses thereto have created a disruption in the manufacturing, delivery, and overall supply chain of automobile manufacturers and suppliers, as well as disruption within the power industry. Global vehicle production decreased significantly in 2020, but production has since ramped back up. Disruptions of normal supply chains have caused challenges in obtaining raw materials we use in the manufacture of some of our products. We have been increasing our inventories in the current year to mitigate the risk of supply chain disruption for our customers. A worldwide semiconductor chip shortage is beginning to affect automotive original equipment manufacturers, causing unpredictable volumes. The rapid development and fluidity of the situation precludes any prediction as to the ultimate impact COVID-19 will have on our business, financial condition, results of operations, and cash flows, which will depend largely on future developments directly or indirectly relating to the duration and scope of the COVID-19 pandemic.

While managing decreased demand in many regions across the globe, we are now operating at all of our business locations. We have implemented training and recruiting programs to address labor shortages. We are focused on the safety of our employees, customers, and suppliers. We have developed and implemented processes to ensure a safe environment for our employees and

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any visitors to our facilities, including providing personal protective equipment and establishing social distancing protocols and temperature checks. We are actively promoting vaccination among our employees. These processes include recommendations based on guidelines from the Centers for Disease Control and Prevention and the World Health Organization. The health and safety of our employees remains our top priority.

We have undertaken a number of permanent and temporary actions to manage the evolving situation, as described in our 2020 Annual Report. We continue to streamline facilities and implement cost savings initiatives. Capital expenditures and travel costs remain at relatively low levels. We refinanced our credit facility and preferred stock in the first quarter as discussed below.

Credit Facilities

On March 22, 2021, we entered into a new $150.0 million term loan facility (the “Term Loan Facility”) and a new $50.0 million asset backed credit facility (the “ABL Facility”). The proceeds from the Term Loan Facility were used to prepay the amounts outstanding on our previous term loans. The previous credit facility was terminated and consisted of a Senior Secured Term Loan, Incremental Term Loan, and Senior Secured Revolver. No amounts were outstanding on the Senior Secured Revolver at the time of termination.

Outstanding borrowings under the Term Loan Facility bear interest at either 1) one-month LIBOR (subject to a 1.000% floor) plus an applicable margin of 6.875% or 2) the greater of various benchmark rates plus an applicable margin of 5.875%. At June 30, 2021, the Term Loan Facility bore interest, based on one-month LIBOR, at 7.875%. The Term Loan Facility requires quarterly principal payments of $0.4 million with the remaining unpaid principal amount due on the final maturity date of September 22, 2026. The Term Loan Facility is collateralized by all of our assets. The Term Loan Facility has a first lien on all assets other than accounts receivable and inventory and has a second lien on accounts receivable and inventory. We were in compliance with all requirements under the Term Loan Facility as of June 30, 2021.

The ABL Facility provides for a senior secured revolving credit facility in the amount of $50.0 million, of which $30.0 million is available in the form of letters of credit and $5.0 million is available for the issuance of short-term swingline loans. The availability of credit under the ABL Facility is limited by a borrowing base calculation derived from accounts receivable and inventory held in the United States. Outstanding borrowings under the ABL Facility bear interest on a variable rate structure plus an interest rate spread that is based on the average amount of aggregate revolving commitment available. The variable borrowing rate is either 1) LIBOR plus an applicable margin of 1.75% or 2.00%, depending on availability, or 2) the greater of the federal funds rate or prime, plus an applicable margin of 0.75% or 1.00%, depending on availability. We may elect whether to use one-month, three-month, or six-month LIBOR, subject to a 0.50% floor. Interest payments are due monthly on borrowings that utilize one-month LIBOR and quarterly on borrowings that utilize three-month or six-month LIBOR. At June 30, 2021, using one-month LIBOR plus a 1.75% spread, the weighted average interest rate on outstanding borrowings under the ABL Facility would have been 2.25% if there had been any balance outstanding. We pay a commitment fee of 0.375% for unused capacity under the ABL Facility and a 0.125% fee on the amount of letters of credit outstanding. The final maturity date of the ABL Facility is March 22, 2026.

We had no outstanding borrowings under the ABL Facility at June 30, 2021. Total capacity under the ABL Facility was $44.2 million as of June 30, 2021, of which $30.2 million was available for future borrowings after reductions for outstanding letters of credit as of June 30, 2021. The ABL Facility has a first lien on accounts receivable and inventory. We were in compliance with all requirements under the ABL Facility as of June 30, 2021.

Preferred Stock

On March 22, 2021, we completed a private placement of 65 thousand shares of newly designated Series D Perpetual Preferred Stock, with a par value of $0.01 per share (the “Series D Preferred Stock”), at a price of $1,000 per share, together with detachable warrants (the “2021 Warrants”) to purchase up to 1.9 million shares of our common stock at an exercise price of $0.01 per share. The Series D Preferred Stock has an initial liquidation preference of $1,000 per share and is redeemable at our option in cash at a redemption price equal to the liquidation preference then in effect. Series D Preferred Stock shares earn cash dividends at a rate of 10.0% per year, payable quarterly in arrears, accruing whether or not earned or declared. If no cash dividend is paid, then the liquidation preference per share effective on the dividend date increases by 12.0% per year. On March 22, 2026, the cash dividend rate and in-kind dividend rate increase by 2.5% per year. Cash dividends are required beginning on September 30, 2027.

Net cash proceeds of $61.8 million from the issuance of the Series D Preferred Stock, along with part of the proceeds from the Term Loan Facility, were used to redeem all of the outstanding shares of the Company’s Series B Convertible Preferred Stock (the “Series B Preferred Stock”). The total redemption cash payment was $118.4 million.

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Sales Concentration

We recognized sales from a single customer of $13.2 million, or 11% and $26.2 million, or 11%, of consolidated net sales, during the three and six months ended June 30, 2021, respectively. We recognized sales from this customer of $9.2 million, or 12% of consolidated net sales, during the three months ended June 30, 2020. Revenues from this customer are primarily in our Mobile Solutions segment.

Three Months Ended June 30, 2021, compared to the Three Months Ended June 30, 2020

	Three Months Ended June 30,
	2021		2020		$ Change
Net sales	$	123,157	$	78,532	$	44,625
Organic growth							$	42,123
Foreign exchange effects							2,502
Cost of sales (exclusive of depreciation and amortization shown separately below)	99,797		65,058		34,739
Selling, general, and administrative expense	13,585		14,273		(688)
Depreciation and amortization	11,687		11,327		360
Other operating income, net	(324)		(949)		625
Loss from operations	(1,588)		(11,177)		9,589
Interest expense	3,573		6,356		(2,783)
Other expense (income), net	1,680		(1,215)		2,895
Loss from continuing operations before benefit (provision) for income taxes and share of net income from joint venture	(6,841)		(16,318)		9,477
Benefit (provision) for income taxes	231		(2,175)		2,406
Share of net income from joint venture	1,219		927		292
Loss from continuing operations	(5,391)		(17,566)		12,175
Loss from discontinued operations, net of tax	—		(4,182)		4,182
Net loss	$	(5,391)	$	(21,748)	$	16,357

Net Sales. Net sales increased by $44.6 million, or 57%, during the three months ended June 30, 2021, compared to the three months ended June 30, 2020, primarily due to higher demand within all markets that were negatively impacted by the COVID-19 pandemic in the prior year and new business in the general industrial market. In addition, sales were positively impacted by increased selling prices for precious metals allowed under customer contracts due to the sharp rise in underlying commodities costs compared with the same period of 2020. These increases were partially offset by decreased demand for smart meter components due to inventory adjustments at a key customer. Sales of components to the medical industry experienced recovery in the current period compared to the same period of 2020 when many elective surgeries were delayed as a result of the COVID-19 pandemic. We also realized favorable foreign exchange effects of $2.5 million.

Cost of Sales. Cost of sales increased by $34.7 million, or 53%, during the three months ended June 30, 2021, compared to the three months ended June 30, 2020, primarily due to variable costs associated with the above-noted sales increase. In addition, cost of sales increased due to the reintroduction of employee-related costs suspended in the prior year due to the pandemic, such as benefits and overtime hours. These increases were partially offset by favorable overhead absorption due to the increase in inventory.

Selling, General, and Administrative Expense. Selling, general, and administrative expense decreased by $0.7 million during the three months ended June 30, 2021, compared to the three months ended June 30, 2020, primarily due to cost reduction initiatives that drove decreases in personnel and professional fees.

Other Operating Income, Net. Other operating income, net, changed unfavorably by $0.6 million primarily due to a gain on the sale of a building in Fairfield, Ohio, during the three months ended June 30, 2020.

Interest Expense.  Interest expense decreased by $2.8 million during the three months ended June 30, 2021, compared to the three months ended June 30, 2020, primarily due to settlements on the interest rate swap in the prior year that were recognized in interest expense while the hedge was effective.

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	Three Months Ended June 30,
	2021		2020
Interest on debt	$	3,110	$	2,304
Interest rate swap settlements	—		3,436
Amortization of debt issuance costs and discount	313		445
Capitalized interest	(80)		(45)
Other	230		216
Total interest expense	$	3,573	$	6,356

Other Expense (Income), Net. Other expense (income), net, changed unfavorably by $2.9 million during the three months ended June 30, 2021, compared to the three months ended June 30, 2020, due to noncash derivative mark-to-market losses, less favorable foreign exchange effects associated with intercompany borrowings, and a litigation settlement reached during the current quarter.

Benefit (Provision) For Income Taxes. Our effective tax rate was 3.4% for the three months ended June 30, 2021, compared to (13.3)% for the three months ended June 30, 2020. The difference in rates is primarily due to the estimated impacts of GILTI and the CARES Act. Note 8 in the Notes to Condensed Consolidated Financial Statements describes the effective income tax rate for each period presented.

Share of Net Income from Joint Venture. Our share of net income from the joint venture increased during the three months ended June 30, 2021, compared to the three months ended June 30, 2020, primarily due to improved profits resulting from higher sales volumes, expanding variable margins as a result of successful process improvement initiatives and improved product mix, and fixed cost reduction actions.

Results by Segment

MOBILE SOLUTIONS

	Three Months Ended June 30,
	2021		2020		$ Change
Net sales	$	73,886	$	41,037	$	32,849
Organic growth							$	31,013
Foreign exchange effects							1,836
Income (loss) from operations	$	2,509	$	(4,592)	$	7,101

Net sales increased by $32.8 million during the three months ended June 30, 2021, compared to the three months ended June 30, 2020, primarily due to higher demand within all markets which were negatively impacted by the COVID-19 pandemic in the prior year, new business in the general industrial market, and favorable foreign exchange effects of $1.8 million.

Income from operations increased by $7.1 million during the three months ended June 30, 2021, compared to the same period in the prior year primarily due to the contribution generated from the above-noted sales increase. Moreover, we built up inventory in the three months ended June 30, 2021, which resulted in favorable overhead absorption during the quarter. These positive impacts were partially offset by the reintroduction of employee-related costs suspended in the prior year due to the pandemic, such as travel, benefits and overtime hours.

POWER SOLUTIONS

	Three Months Ended June 30,
	2021		2020		$ Change
Net sales	$	49,271	$	37,491	$	11,780
Organic growth							$	11,114
Foreign exchange effects							666
Income from operations	$	2,875	$	1,454	$	1,421

Net sales increased by $11.8 million during the three months ended June 30, 2021, compared to the three months ended June 30, 2020 primarily due to higher demand within the end markets which were negatively impacted by the COVID-19 pandemic in the prior year. Sales were also positively impacted by increased selling prices for precious metals allowed under customer contracts due to the sharp rise in underlying commodities costs compared with the same period in 2020. Sales of components to

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the medical industry experienced recovery in the current period compared to the same period of 2020 when many elective surgeries were delayed as a result of the COVID-19 pandemic.

Income from operations increased by $1.4 million compared to the same period in the prior year primarily due to the contribution generated from the above-noted sales increase, partially offset by the reintroduction of employee-related costs suspended in the prior year due to the pandemic, such as travel, benefits and overtime hours.

Six Months Ended June 30, 2021, compared to the Six Months Ended June 30, 2020

	Six Months Ended June 30,
	2021		2020		$ Change
Net sales	$	249,961	$	194,745	$	55,216
Organic growth							$	53,371
Foreign exchange effects							1,845
Cost of sales (exclusive of depreciation and amortization shown separately below)	199,485		159,536		39,949
Selling, general, and administrative expense	28,160		30,433		(2,273)
Depreciation and amortization	23,255		22,684		571
Goodwill impairment	—		92,942		(92,942)
Other operating expense (income), net	(329)		4,177		(4,506)
Loss from operations	(610)		(115,027)		114,417
Interest expense	5,597		10,163		(4,566)
Loss on extinguishment of debt and write-off of debt issuance costs	2,390		—		2,390
Derivative payments on interest rate swap	1,717		—		1,717
Loss on interest rate swap	2,033		—		2,033
Other expense, net	1,558		329		1,229
Loss from continuing operations before benefit (provision) for income taxes and share of net income from joint venture	(13,905)		(125,519)		111,614
Benefit (provision) for income taxes	987		(780)		1,767
Share of net income from joint venture	2,614		656		1,958
Loss from continuing operations	(10,304)		(125,643)		115,339
Loss from discontinued operations, net of tax	—		(144,296)		144,296
Net loss	$	(10,304)	$	(269,939)	$	259,635

Net Sales. Net sales increased by $55.2 million, or 28%, during the six months ended June 30, 2021, compared to the six months ended June 30, 2020, primarily due to higher demand within all markets that were negatively impacted by the COVID-19 pandemic in the prior year and favorable foreign exchange effects of $1.8 million. In addition, sales were positively impacted by increased selling prices for precious metals allowed under customer contracts due to the sharp rise in underlying commodities costs compared with the same period of 2020.

Cost of Sales.  Cost of sales increased by $39.9 million, or 25%, during the six months ended June 30, 2021, compared to the six months ended June 30, 2020, primarily due to variable costs associated with the above-noted sales increase. In addition, cost of sales increased due to the reintroduction of employee-related costs suspended in the prior year due to the pandemic, such as travel, benefits and overtime hours, which was partially offset by favorable overhead absorption due to the increase in inventory.

Selling, General, and Administrative Expense.  Selling, general, and administrative expense decreased by $2.3 million during the six months ended June 30, 2021, compared to the six months ended June 30, 2020, primarily due to cost reduction initiatives that drove decreases in personnel costs and professional fees.

Goodwill Impairment. We recognized goodwill impairment of $92.9 million at Power Solutions in 2020, resulting in no remaining goodwill balance.

Other Operating Expense (Income), Net. Other operating expense (income), net, changed favorably by $4.5 million primarily due to charges and costs associated with asset disposals and elimination of a portion of our lease obligation as a result of our

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decision to vacate a portion of our corporate headquarters building in 2020. These charges were partially offset by a gain on the sale of a building in Fairfield, Ohio, in the second quarter of 2020.

Interest Expense.  Interest expense decreased by $4.6 million during the six months ended June 30, 2021, compared to the six months ended June 30, 2020, primarily due to settlements on the interest rate swap the prior year that were recognized in interest expense while the hedge was effective.

	Six Months Ended June 30,
	2021		2020
Interest on debt	$	4,549	$	4,155
Interest rate swap settlements	—		4,806
Amortization of debt issuance costs and discount	718		871
Capitalized interest	(111)		(134)
Other	441		465
Total interest expense	$	5,597	$	10,163

Loss on Extinguishment of Debt and Write-off of Debt Issuance Costs. We recognized $2.4 million for the write-off of unamortized debt issuance costs that were associated with the credit facility that was terminated in March 2021.

Derivative Payments on Interest Rate Swap. Derivative payments on interest rate swap represent cash settlements of the interest rate swap after hedge accounting was discontinued in October 2020. Prior to October 2020, interest rate swap settlements were recognized in interest expense. The interest rate swap was terminated in the first quarter of 2021.

Loss on Interest Rate Swap. Loss on interest rate swap represents mark-to-market adjustments on the interest rate swap after hedge accounting was discontinued in October 2020 as well as amortization of the residual loss in accumulated other comprehensive income as monthly settlements occur. Prior to October 2020, mark-to-market adjustments on the interest rate swap were recognized in accumulated other comprehensive income. Upon termination of the interest rate swap in March 2021, we recognized in earnings the remaining $3.3 million loss that had been deferred in accumulated other comprehensive income.

Other Expense, Net. Other expense, net, changed unfavorably by $1.2 million during the six months ended June 30, 2021, compared to the six months ended June 30, 2020, due to a litigation settlement reached during the current quarter, partially offset by more favorable foreign exchange effects associated with intercompany borrowings.

Benefit (Provision) for Income Taxes. Our effective tax rate was 7.1% for the six months ended June 30, 2021, compared to (0.6)% for the six months ended June 30, 2020. The difference in rates is primarily due to the estimated impacts of GILTI and the CARES Act. Note 8 in the Notes to Condensed Consolidated Financial Statements describes the effective income tax rate for each period presented.

Share of Net Income from Joint Venture. Share of net income from the JV increased during the six months ended June 30, 2021, compared to the six months ended June 30, 2020, primarily due to improved profits from expanding variable margins as a result of successful process improvement initiatives and improved product mix, and fixed cost reduction actions.

Results by Segment

MOBILE SOLUTIONS

	Six Months Ended June 30,
	2021		2020		$ Change
Net sales	$	151,662	$	110,921	$	40,741
Organic growth							$	39,589
Foreign exchange effects							1,152
Income (loss) from operations	$	8,599	$	(4,328)	$	12,927

Net sales increased by $40.7 million during the six months ended June 30, 2021, compared to the six months ended June 30, 2020, primarily due to higher demand within all markets which were negatively impacted by the COVID-19 pandemic in the prior year, new business in the general industrial market, and favorable foreign exchange effects.

Income (loss) from operations increased by $12.9 million compared to the same period in the prior year primarily due to contribution generated from the above-noted sales increase. Moreover, we built up inventory in the six months ended June 30, 2021, which resulted in favorable overhead absorption during the period. These positive impacts were partially offset by the reintroduction of employee-related costs suspended in the prior year due to the pandemic, such as travel, benefits and overtime hours.

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POWER SOLUTIONS

	Six Months Ended June 30,
	2021		2020		$ Change
Net sales	$	98,346	$	83,892	$	14,454
Organic growth							$	13,761
Foreign exchange effects							693
Goodwill impairment	$	—	$	(92,942)	$	92,942
Income (loss) from operations	$	5,307	$	(88,880)	$	94,187

Net sales increased by $14.5 million during the six months ended June 30, 2021, compared to the six months ended June 30, 2020, primarily due to higher demand within the end markets which were negatively impacted by the COVID-19 pandemic in the prior year. Sales were also positively impacted by increased selling prices for precious metals allowed under customer contracts due to the sharp rise in underlying commodities costs compared to the same period of 2020.

Income (loss) from operations increased by $94.2 million compared to the same period in the prior year primarily due to a goodwill impairment loss of $92.9 million recognized in the first quarter of 2020. In addition, income from operations increased due to the contribution generated from the above-noted sales increase and higher precious metals commodities prices. These favorable impacts were partially offset by the reintroduction of employee-related costs suspended in the prior year due to the pandemic, such as travel, benefits and overtime hours.

Changes in Financial Condition from December 31, 2020, to June 30, 2021

Overview

From December 31, 2020, to June 30, 2021, total assets decreased by $11.4 million primarily due to normal depreciation and amortization of fixed assets, lease right-of-use assets, and intangible assets. These decreases were partially offset by capital expenditures and increases in inventories during the six months ended June 30, 2021. Inventories increased as a result of a strategic decision to mitigate potential supply chain issues for our customers.

From December 31, 2020, to June 30, 2021, total liabilities increased by $66.4 million, primarily due to the refinancing of our credit facilities and redeeming the Series B Preferred Stock with debt.

Working capital, which consists of current assets less current liabilities, was $122.5 million as of June 30, 2021, compared to $112.0 million as of December 31, 2020. The increase in working capital was primarily due to the increase in inventories discussed above.

Cash Flows

Cash provided by operations was $5.9 million for the six months ended June 30, 2021, compared with cash provided by operations of $15.9 million for the six months ended June 30, 2020. The difference was primarily due to $8.0 million in current year income tax payments and building inventory levels during the current year to mitigate potential supply chain issues for our customers.

Cash used in investing activities was $30.2 million for the six months ended June 30, 2021, compared with cash used in investing activities of $12.5 million for the six months ended June 30, 2020. The difference was primarily due to cash paid to settle the interest rate swap and post-closing adjustment on the sale of the Life Sciences business, partially offset by lower capital expenditures in the current year.

Cash provided by financing activities was $6.9 million for the six months ended June 30, 2021, compared with cash provided by financing activities of $53.4 million for the six months ended June 30, 2020. The difference was primarily due to $11.9 million net inflow from the debt and preferred stock refinancing in the current year compared to the $62.5 million draw on the Senior Secured Revolver in the prior year.

Liquidity and Capital Resources

Credit Facilities

The principal amount outstanding under our Term Loan Facility as of June 30, 2021, was $149.6 million, without regard to unamortized debt issuance costs and discount. As of June 30, 2021, we had unused borrowing capacity of $30.2 million under

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the ABL Facility, subject to certain limitations. This amount of borrowing capacity is net of $14.0 million of outstanding letters of credit at June 30, 2021, which are considered as usage of the ABL Facility. This amount includes approximately $0.8 million of duplicate letters of credit that remained outstanding at June 30 but were terminated during the third quarter after transition to a new guarantor bank was completed.

The Term Loan Facility requires quarterly principal payments of $0.4 million with the remaining unpaid principal amount due on the final maturity date of September 22, 2026. If one-month LIBOR is less than 1.00%, then we pay 7.875% per annum in interest. If one-month LIBOR exceeds 1.000%, then we pay the variable one-month LIBOR plus an applicable margin of 6.875%. Based on the interest rate in effect at June 30, 2021, annual interest payments would be approximately $11.8 million. On July 22, 2021, we entered into a new interest rate swap as discussed in Note 18 to the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report. Based on the interest rate in effect at June 30, 2021, and the fixed rate on the new interest rate swap, annual interest payments would be approximately $12.0 million.

The ABL Facility bears interest on a variable rate structure with borrowings bearing interest at one-month LIBOR plus an applicable margin of 1.75%. The interest rate in effect at June 30, 2021, was 2.25%. We pay a commitment fee of 0.375% for unused capacity under the ABL Facility.

We were in compliance as of June 30, 2021, with all requirements under our Term Loan Facility and ABL Facility. Both credit facilities allow for optional expansion of available borrowings, subject to certain terms and conditions.

Seasonality and Fluctuation in Quarterly Results

General economic conditions impact our business and financial results, and certain businesses experience seasonal and other trends related to the industries and end markets that they serve. For example, European sales are often weaker in the summer months as customers slow production and sales to original equipment manufacturers are often stronger immediately preceding and following the launch of new products. However, as a whole, we are not materially impacted by seasonality.

Off-Balance Sheet Arrangements

We are not a party to any off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources.

Critical Accounting Policies

Our critical accounting policies, including the assumptions and judgments underlying them, are disclosed in the 2020 Annual Report, including those policies as discussed in Note 1 to the Notes to Consolidated Financial Statements included in the 2020 Annual Report. There have been no changes to these policies during the six months ended June 30, 2021, except as discussed in Note 1 to the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report.    

Recent Accounting Pronouncements

See Note 1 in the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report.

Item 3.Quantitative and Qualitative Disclosures About Market Risk

We are exposed to changes in financial market conditions in the normal course of business due to use of certain financial instruments as well as transacting business in various foreign currencies. To mitigate the exposure to these market risks, we have established policies, procedures, and internal processes governing the management of financial market risks. We are exposed to changes in interest rates primarily as a result of borrowing activities.

Interest Rate Risk

Our policy is to manage interest expense using a mixture of fixed and variable rate debt. To manage this mixture of fixed and variable rate debt effectively and mitigate interest rate risk, we may use interest rate swap agreements. The nature and amount of borrowings may vary as a result of future business requirements, market conditions, and other factors.

In February 2019, we entered into a fixed-rate interest rate swap agreement that changed the LIBOR-based portion of the interest rate on a portion of our variable rate debt to a fixed rate of 2.4575%. On March 22, 2021, we terminated the interest rate swap agreement in connection with the prepayment of our previously outstanding long-term variable-rate debt. Refer to Note 17 in the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for further discussion about the interest rate swap.

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On July 22, 2021, we entered into a new fixed-rate interest rate swap agreement to change the LIBOR-based component of the interest rate on a portion of our variable rate debt to a fixed rate of 1.291%. The interest rate swap has a notional amount of $60.0 million and a maturity date of July 31, 2024.

The objective of the interest rate swap is to eliminate the variability of cash flows in interest payments on the first $60.0 million of variable rate debt attributable to changes in benchmark one-month LIBOR interest rates. The hedged risk is the interest rate risk exposure to changes in interest payments, attributable to changes in benchmark one-month LIBOR interest rates over the interest rate swap term. The changes in cash flows of the interest rate swap are expected to exactly offset changes in cash flows of the variable rate debt. We designated the interest rate swap as a cash flow hedge at inception.

At June 30, 2021, we had $149.6 million of principal outstanding under the Term Loan Facility without regard to capitalized debt issuance costs. A one-percent increase in one-month LIBOR would have resulted in a net increase in interest expense of $0.2 million on an annualized basis due to the fact that the Term Loan Facility is subject to a LIBOR floor of 1.00% and one-month LIBOR was below the floor as of June 30, 2021. The new interest rate swap discussed above would have reduced the impact by approximately $0.1 million if it had been in place on June 30, 2021.

We had no outstanding borrowings under the ABL Facility at June 30, 2021.

Foreign Currency Risk

Translation of our operating cash flows denominated in foreign currencies is impacted by changes in foreign exchange rates. We participate in various third party and intercompany loans, payables, and receivables denominated in currencies other than the U.S. dollar. To help reduce exposure to foreign currency fluctuation, we have incurred debt in euros in the past. From time to time, we may use foreign currency derivatives to hedge currency exposures when these exposures meet certain discretionary levels. We did not hold a position in any foreign currency derivatives as of June 30, 2021.

Item 4.Controls and Procedures

Disclosure Controls and Procedures

Under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2021, to ensure that information required to be disclosed in the reports that we file or submit under 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 management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the fiscal quarter ended June 30, 2021, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1.Legal Proceedings

As disclosed in Note 11 in the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report, we are engaged in certain legal proceedings, and the disclosure set forth in Note 11 relating to legal proceedings is incorporated herein by reference.

Item 1A.Risk Factors

There have been no material changes to the risk factors disclosed in the 2020 Annual Report under Item 1A, “Risk Factors.”

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

Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plan or Programs (1)
April 2021	—	$	—	—	—
May 2021	—	—		—	—
June 2021	2,489	7.35		—	—
Total	2,489	$	7.35	—	—

_______________________________

(1)Shares were withheld to pay for tax obligations due upon the vesting of restricted stock held by certain employees granted under the NN, Inc. 2019 Omnibus Incentive Plan (the “Plan”). The Plan provides for the withholding of shares to satisfy tax obligations. It does not specify a maximum number of shares that can be withheld for this purpose. These shares may be deemed to be “issuer purchases” of shares that are required to be disclosed pursuant to this Item.

Item 3.Defaults Upon Senior Securities

None. 

Item 4.Mine Safety Disclosures

Not applicable. 

Item 5.Other Information

None.

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Item 6.Exhibits

Exhibit Number	Description
10.1	Cooperation Agreement, dated May 13, 2021, among NN, Inc., Corre Partners Management, LLC, and each of the persons listed on the signature page thereto (incorporated by reference to Exhibit 10.1 to NN, Inc.’s Current Report on Form 8-K filed on May 14, 2021)
10.2*	Separation Agreement and General Release, dated as of June 14, 2021, by and between NN, Inc. and Thomas D. DeByle (incorporated by reference to Exhibit 10.1 to NN, Inc.’s Current Report on Form 8-K filed on June 15, 2021)
10.3*	Form of Separation Agreement by and between NN, Inc. and Michael C. Felcher (incorporated by reference to Exhibit 10.2 to NN, Inc.’s Current Report on Form 8-K filed on June 15, 2021)
31.1	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended.
31.2	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended.
32.1	Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Service
101.CAL	Taxonomy Calculation Linkbase
101.LAB	XBRL Taxonomy Label Linkbase
101.PRE	XBRL Presentation Linkbase Document
101.DEF	XBRL Definition Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

_______________________________ 

* Management contract or compensatory plan or arrangement

40

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.

	NN, Inc.
	(Registrant)
Date: August 6, 2021	/s/ Warren A. Veltman
	Warren A. Veltman
	President, Chief Executive Officer and Director
	(Principal Executive Officer)
	(Duly Authorized Officer)
Date: August 6, 2021	/s/ Michael C. Felcher
	Michael C. Felcher
	Senior Vice President - Chief Financial Officer
	(Principal Financial and Accounting Officer)
	(Duly Authorized Officer)

41

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO RULES 13a-14(a) AND 15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Warren A. Veltman, certify that:

1)I have reviewed this quarterly report on Form 10-Q of NN, Inc.;

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

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

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

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

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

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

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

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

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

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

August 6, 2021	/s/ Warren A. Veltman
	Warren A. Veltman
	President, Chief Executive Officer and Director
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULES 13a-14(a) AND 15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Michael C. Felcher, certify that:

1)I have reviewed this quarterly report on Form 10-Q of NN, Inc.;

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

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

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

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

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

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

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

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

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

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

August 6, 2021	/s/ Michael C. Felcher
	Michael C. Felcher
	Senior Vice President – Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT

TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of NN, Inc. (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and date indicated below, hereby certifies pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to 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 as of the dates and for the periods indicated.

August 6, 2021	/s/ Warren A. Veltman
	Warren A. Veltman
	President, Chief Executive Officer and Director
	(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT

TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of NN, Inc. (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and date indicated below, hereby certifies pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to 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 as of the dates and for the periods indicated.

August 6, 2021	/s/ Michael C. Felcher
	Michael C. Felcher
	Senior Vice President – Chief Financial Officer
	(Principal Financial Officer)

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Aug. 02, 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	000-23486
Entity Registrant Name	NN, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	62-1096725
Entity Address, Address Line One	6210 Ardrey Kell Road, Suite 600
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28277
City Area Code	980
Local Phone Number	264-4300
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	NNBR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		43,033,548
Entity Central Index Key	0000918541
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ 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	$ 123,157	$ 78,532	$ 249,961	$ 194,745
Cost of sales (exclusive of depreciation and amortization shown separately below)	99,797	65,058	199,485	159,536
Selling, general, and administrative expense	13,585	14,273	28,160	30,433
Depreciation and amortization	11,687	11,327	23,255	22,684
Goodwill impairment	0	0	0	92,942
Other operating expense (income), net	(324)	(949)	(329)	4,177
Loss from operations	(1,588)	(11,177)	(610)	(115,027)
Interest expense	3,573	6,356	5,597	10,163
Loss on extinguishment of debt and write-off of debt issuance costs	0	0	2,390	0
Derivative payments on interest rate swap	0	0	1,717	0
Loss on interest rate swap	0	0	2,033	0
Other expense (income), net	1,680	(1,215)	1,558	329
Loss from continuing operations before benefit (provision) for income taxes and share of net income from joint venture	(6,841)	(16,318)	(13,905)	(125,519)
Benefit (provision) for income taxes	231	(2,175)	987	(780)
Share of net income from joint venture	1,219	927	2,614	656
Loss from continuing operations	(5,391)	(17,566)	(10,304)	(125,643)
Loss from discontinued operations, net of tax (Note 2)	0	(4,182)	0	(144,296)
Net loss	(5,391)	(21,748)	(10,304)	(269,939)
Other comprehensive income (loss):
Foreign currency translation gain (loss)	4,409	994	1,062	(13,348)
Change in fair value, net of tax	0	(1,255)	0	(12,464)
Reclassification adjustment for losses included in net loss, net of tax	0	2,638	2,851	3,690
Other comprehensive income (loss)	4,409	2,377	3,913	(22,122)
Comprehensive loss	$ (982)	$ (19,371)	$ (6,391)	$ (292,061)
Basic net loss per common share:
Loss from continuing operations per common share (in dollars per share)	$ (0.17)	$ (0.49)	$ (0.62)	$ (3.12)
Loss from discontinued operations per common share (in dollars per share)	0	(0.10)	0	(3.43)
Net loss per common share (in dollars per shares)	$ (0.17)	$ (0.59)	$ (0.62)	$ (6.55)
Weighted average common shares outstanding, basic (in shares)	44,440	42,197	43,561	42,154
Diluted net loss per common share:
Loss from continuing operations per common share (in dollars per share)	$ (0.17)	$ (0.49)	$ (0.62)	$ (3.12)
Loss from discontinued operations per common share (in dollars per share)	0	(0.10)	0	(3.43)
Net loss per common share (in dollars per share)	$ (0.17)	$ (0.59)	$ (0.62)	$ (6.55)
Weighted average common shares outstanding, diluted (in shares)	44,440	42,197	43,561	42,154

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 31,543	$ 48,138
Accounts receivable, net	82,177	84,615
Inventories	74,770	62,517
Income tax receivable	13,071	8,800
Other current assets	13,125	11,148
Total current assets	214,686	215,218
Property, plant and equipment, net	219,808	223,690
Operating lease right-of-use assets	48,407	50,264
Intangible assets, net	95,891	103,065
Investment in joint venture	29,897	26,983
Deferred tax assets	131	0
Other non-current assets	4,763	5,742
Total assets	613,583	624,962
Current liabilities:
Accounts payable	46,834	37,435
Accrued salaries, wages and benefits	21,279	21,296
Income tax payable	1,494	3,557
Current maturities of long-term debt	4,808	4,885
Current portion of operating lease liabilities	5,130	4,797
Other current liabilities	12,651	31,261
Total current liabilities	92,196	103,231
Deferred tax liabilities	9,196	11,178
Long-term debt, net of current portion	150,728	79,025
Operating lease liabilities, net of current portion	53,601	55,053
Other non-current liabilities	26,438	17,237
Total liabilities	332,159	265,724
Commitments and contingencies (Note 11)
Common stock - $0.01 par value per share, 90,000 shares authorized, 42,686 and 43,034 shares issued and outstanding at December 31, 2020 and June 30, 2021, respectively	430	427
Additional paid-in capital	477,923	493,332
Accumulated deficit	(216,179)	(205,875)
Accumulated other comprehensive loss	(29,819)	(33,732)
Total stockholders’ equity	232,355	254,152
Total liabilities, preferred stock, and stockholders’ equity	613,583	624,962
Series D Preferred Stock
Current liabilities:
Perpetual and convertible preferred stock	49,069	0
Series B Preferred Stock
Current liabilities:
Perpetual and convertible preferred stock	$ 0	$ 105,086

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	90,000,000	90,000,000
Common stock, shares issued (in shares)	43,034,000	42,686,000
Common stock, shares outstanding (in shares)	43,034,000	42,686,000
Series D Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.01
Preferred stock, shares authorized (in shares)	65,000
Preferred stock, shares issued (in shares)	65,000
Preferred stock, shares outstanding (in shares)	65,000
Perpetual and convertible preferred stock	$ 49,069	$ 0
Series B Preferred Stock
Preferred stock, par value (in dollars per share)		$ 0.01
Preferred stock, shares authorized (in shares)		100,000
Preferred stock, shares issued (in shares)		100,000
Preferred stock, shares outstanding (in shares)		100,000
Perpetual and convertible preferred stock	$ 0	$ 105,086

XML

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional paid-in capital	Warrants	Accumulated deficit	Accumulated other comprehensive income (loss)
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Total stockholders' equity				$ 1,076
Beginning balance (in shares) at Dec. 31, 2019		42,313,000
Beginning balance at Dec. 31, 2019	$ 353,277	$ 423	$ 501,615	1,076	$ (105,283)	$ (44,554)
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Net loss	(269,939)				(269,939)
Dividends accrued for preferred stock	(5,994)		(5,994)
Share-based compensation expense (in shares)		442,000
Share-based compensation expense	2,707	$ 4	2,703
Restricted shares forgiven for taxes (in shares)		(8,000)
Restricted shares forgiven for taxes	(30)	$ 0	(30)
Change in fair value of interest rate swap, net of tax	(12,464)					(12,464)
Reclassification of interest rate swap settlement to net income (loss), net of tax	3,690					3,690
Foreign currency translation gain (loss)	(13,348)					(13,348)
Ending balance (in shares) at Jun. 30, 2020		42,747,000
Ending balance at Jun. 30, 2020	57,899	$ 427	498,294	1,076	(375,222)	(66,676)
Beginning balance (in shares) at Mar. 31, 2020		42,757,000
Beginning balance at Mar. 31, 2020	78,902	$ 428	499,925		(353,474)	(69,053)
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Net loss	(21,748)				(21,748)
Dividends accrued for preferred stock	(3,043)		(3,043)
Share-based compensation expense (in shares)		(10,000)
Share-based compensation expense	1,411	$ (1)	1,412
Change in fair value of interest rate swap, net of tax	(1,255)					(1,255)
Reclassification of interest rate swap settlement to net income (loss), net of tax	2,638					2,638
Foreign currency translation gain (loss)	994					994
Ending balance (in shares) at Jun. 30, 2020		42,747,000
Ending balance at Jun. 30, 2020	57,899	$ 427	498,294	1,076	(375,222)	(66,676)
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Total stockholders' equity				$ 1,076
Total stockholders' equity	254,152
Beginning balance (in shares) at Dec. 31, 2020		42,686,000
Beginning balance at Dec. 31, 2020	254,152	$ 427	493,332		(205,875)	(33,732)
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Net loss	(10,304)				(10,304)
Dividends accrued for preferred stock	$ (16,740)		(16,740)
Shares issues for option exercises (in shares)	6,000	6,000
Stock Issued During Period, Value, Stock Options Exercised	$ 48	$ 0	48
Share-based compensation expense (in shares)		394,000
Share-based compensation expense	1,986	$ 4	1,982
Restricted shares forgiven for taxes (in shares)		(52,000)
Restricted shares forgiven for taxes	(363)	$ (1)	(362)
Change in estimate of share-based award vesting	(337)		(337)
Change in fair value of interest rate swap, net of tax	0
Reclassification of interest rate swap settlement to net income (loss), net of tax	2,851					2,851
Foreign currency translation gain (loss)	1,062					1,062
Ending balance (in shares) at Jun. 30, 2021		43,034,000
Ending balance at Jun. 30, 2021	232,355	$ 430	477,923		(216,179)	(29,819)
Beginning balance (in shares) at Mar. 31, 2021		43,049,000
Beginning balance at Mar. 31, 2021	234,755	$ 430	479,341		(210,788)	(34,228)
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Net loss	(5,391)				(5,391)
Dividends accrued for preferred stock	(2,211)		(2,211)
Shares issues for option exercises (in shares)		6,000
Stock Issued During Period, Value, Stock Options Exercised	48	$ 0	48
Share-based compensation expense (in shares)		(19,000)
Share-based compensation expense	1,100	$ 0	1,100
Restricted shares forgiven for taxes (in shares)		(2,000)
Restricted shares forgiven for taxes	(18)	$ 0	(18)
Change in estimate of share-based award vesting	(337)		(337)
Change in fair value of interest rate swap, net of tax	0
Reclassification of interest rate swap settlement to net income (loss), net of tax	0
Foreign currency translation gain (loss)	4,409					4,409
Ending balance (in shares) at Jun. 30, 2021		43,034,000
Ending balance at Jun. 30, 2021	232,355	$ 430	$ 477,923		$ (216,179)	$ (29,819)
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Total stockholders' equity	$ 232,355

XML

Condensed Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Stockholders' Equity [Abstract]
Change in fair value of interest rate swap, tax	$ 380		$ (3,770)
Reclassification of interest rate swap settlement, tax	$ 798	$ 861	$ 1,116

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities
Net loss		$ (10,304)	$ (269,939)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization of continuing operations		23,255	22,684
Depreciation and amortization of discontinued operations		0	23,701
Amortization of debt issuance costs and discount		718	3,348
Goodwill impairment of continuing operations		0	92,942
Goodwill impairment of discontinued operations		0	146,757
Loss on extinguishment of debt and write-off of debt issuance costs		2,390	0
Total derivative loss, net of cash settlements		3,750	0
Share of net income from joint venture		(2,614)	(656)
Compensation expense from issuance of share-based awards		1,649	2,707
Deferred income taxes		(3,050)	(8,889)
Other		(1,154)	(2,207)
Changes in operating assets and liabilities:
Accounts receivable		2,685	23,485
Inventories		(12,052)	(4,327)
Accounts payable		9,441	(12,391)
Income taxes receivable and payable, net		(6,326)	(12,897)
Other		(2,490)	11,544
Net cash provided by operating activities		5,898	15,862
Cash flows from investing activities
Acquisition of property, plant and equipment		(11,015)	(15,624)
Proceeds from sale of property, plant, and equipment		74	3,112
Cash paid for post-closing adjustments on sale of business		(3,880)	0
Cash settlements of interest rate swap		(15,420)	0
Net cash used in investing activities		(30,241)	(12,512)
Cash flows from financing activities
Cash paid for debt issuance costs		(6,981)	(286)
Proceeds from issuance of preferred stock		61,793	0
Redemption of preferred stock		(122,434)	0
Proceeds from long-term debt		156,000	64,716
Repayments of long-term debt		(77,442)	(9,078)
Repayments of short-term debt, net		(1,321)	(411)
Other		(2,685)	(1,523)
Net cash provided by financing activities		6,930	53,418
Effect of exchange rate changes on cash flows		818	(5,776)
Net change in cash and cash equivalents		(16,595)	50,992
Cash and cash equivalents at beginning of period	[1]	48,138	31,703
Cash cash equivalents at end of period	[1]	$ 31,543	$ 82,695

[1] Cash and cash equivalents include $12.2 million and $13.8 million of cash and cash equivalents that were included in current assets of discontinued operations as of June 30, 2020, and December 31, 2019, respectively.

XML

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Statement of Cash Flows [Abstract]
Cash and cash equivalents	$ 12.2	$ 13.8

XML

Interim Financial Statements

6 Months Ended

Jun. 30, 2021

Quarterly Financial Information Disclosure [Abstract]

Interim Financial Statements

Interim Financial Statements

Nature of Business

NN, Inc. is a global diversified industrial company that combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies primarily for the automotive, general industrial, electrical, aerospace, defense, and medical markets. As used in this Quarterly Report on Form 10-Q (this “Quarterly Report”), the terms “NN,” the “Company,” “we,” “our,” or “us” refer to NN, Inc., and its subsidiaries.

Basis of Presentation

The accompanying condensed consolidated financial statements have not been audited. The Condensed Consolidated Balance Sheet as of December 31, 2020, was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”), which we filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 15, 2021. Historical periods presented reflect reclassifications for discontinued operations (see Note 2). In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary to fairly state our results of operations for the three and six months ended June 30, 2021 and 2020; financial position as of June 30, 2021, and December 31, 2020; and cash flows for the six months ended June 30, 2021 and 2020, on a basis consistent with our audited consolidated financial statements other than the adoption of new accounting standards (see Accounting Standards Recently Adopted section below). These adjustments are of a normal recurring nature and are, in the opinion of management, necessary to state fairly the Company’s financial position and operating results for the interim periods.

Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted from the interim financial statements presented in this Quarterly Report. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes included in the 2020 Annual Report. The results for the three and six months ended June 30, 2021, are not necessarily indicative of results for the year ending December 31, 2021, or any other future periods.

Except for per share data or as otherwise indicated, all U.S. dollar amounts and share counts presented in the tables in these Notes to Condensed Consolidated Financial Statements are in thousands.

Accounting Standards Recently Adopted

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, (“ASU 2019-12”) as part of its initiative to reduce complexity in accounting standards. ASU 2019-12 removes certain exceptions and provides simplification to specific tax items to improve consistent application. This standard was effective for us beginning January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements and related disclosures.

Accounting Standards Not Yet Adopted

In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, (“ASU 2020-06”) which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, ASU 2020-06 simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. In addition, ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for the exception. Further, for the diluted earnings-per-share calculation, the new guidance requires entities to use the if-converted method for all convertible instruments and generally requires entities to include the effect of share settlement for instruments that may be settled in cash or shares, among other things. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted. Either the full or modified retrospective adoption method is allowed. We are currently evaluating the impact on our consolidated financial statements and related disclosures.

In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options, (“ASU 2021-04”) which clarifies the accounting for modifications or exchanges of

freestanding equity-classified written call options that remain equity classified after modification or exchange. Specifically, ASU 2021-04 requires the issuer to treat a modification of an equity-classified warrant as an exchange of the original warrant. The difference between the fair value of the modified warrant and the fair value of the warrant immediately before modification is then recognized as an issuance cost or discount of the related transaction. ASU 2021-04 is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted. ASU 2021-04 should be applied prospectively to modifications or exchanges occurring after the effective date. Either the full or modified retrospective adoption method is allowed. We do not have any equity-classified written call options that would be subject to this guidance. Therefore, we do not expect any impact on our consolidated financial statements and related disclosures.

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Discontinued Operations

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

In October 2020, we closed on the sale of our Life Sciences business under the terms of a Stock Purchase Agreement (the “SPA”) with affiliates of American Securities LLC for $753.3 million cash. The SPA includes a potential earnout payment of up to $70 million based on the performance of the Life Sciences business during the year ending December 31, 2022, measured by Adjusted EBITDA targets, as defined by the SPA. After working capital and other closing adjustments, we received cash proceeds at closing of $757.2 million and paid $3.9 million to the buyer during the six months ended June 30, 2021, for post-closing adjustments.

Under the terms of a transition services agreement, we provided certain support services after the sale. In accordance with the terms of the SPA, we agreed to indemnify the buyer for certain tax liabilities on its consolidated federal income tax return related to the Life Sciences business during the portion of the year ended December 31, 2020, prior to the change in ownership on October 6, 2020. We estimate that the tax indemnification will result in a payment of approximately $1.2 million to the buyer during the year ending December 31, 2021, and we have recorded this estimated obligation in the “Other current liabilities” line item on the Condensed Consolidated Balance Sheets as of June 30, 2021, and December 31, 2020.

In accordance with ASC 205-20, Presentation of Financial Statements - Discontinued Operations, the operating results of the Life Sciences business are classified as discontinued operations. The presentation of discontinued operations includes revenues and expenses of the discontinued operations as well as any gain on the disposition of the business, all net of tax, as one line item on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for all historical periods presented have been revised to reflect this presentation. Accordingly, the results of the Life Sciences business have been excluded from continuing operations and segment results for all historical periods presented in the condensed consolidated financial statements and the accompanying notes unless otherwise stated. The Condensed Consolidated Statements of Cash Flows for historical periods include cash flows of the Life Sciences business in each line item unless otherwise stated.

The following table presents the operating results of the discontinued operations.

	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Net sales	$	71,888	$	155,420
Cost of sales (exclusive of depreciation and amortization shown separately below)	50,331		108,094
Selling, general, and administrative expense	5,619		14,024
Depreciation and amortization	11,874		23,701
Goodwill impairment	—		146,757
Other operating income, net	(6)		(3)
Income (loss) from operations	4,070		(137,153)
Interest expense	12,340		25,610
Other expense (income), net	334		(90)
Loss from discontinued operations before costs of disposal and benefit for income taxes	(8,604)		(162,673)
Benefit for income taxes	5,457		19,644
Loss from discontinued operations before costs of disposal	(3,147)		(143,029)
Costs of disposal of discontinued operations (1)	(1,099)		(1,358)
Benefit for income taxes on costs of disposal	64		91
Loss from discontinued operations, net of tax	$	(4,182)	$	(144,296)

_______________________________

(1)Represents incremental direct costs related to the sale of the Life Sciences business that were incurred prior to the closing of the sale.

During the first quarter of 2020, our market capitalization declined to a level that was less than the net book value of our stockholders’ equity. The decline in market capitalization was a triggering event that caused us to perform a goodwill impairment analysis as of March 31, 2020. The carrying value of the Life Sciences reporting unit exceeded its estimated fair value as of March 31, 2020. As a result of our analysis, we recorded an impairment loss on goodwill of $146.8 million for Life Sciences. The judgments, assumptions, and estimates involved in the goodwill impairment analysis for the Life Sciences reporting unit are consistent with those discussed in Note 5.

Our previous credit facility, which was in place at the time, required us to use proceeds from the sale of the Life Sciences business to prepay a portion of our previous debt. We paid $700 million in the aggregate on our term loans immediately after the transaction closed on October 6, 2020. The prepayment was applied to debt in accordance with the prepayment provisions of the previous credit agreement which was in place at the time. Average quarterly interest rates were multiplied by the required prepayment amounts to calculate interest expense to be reclassified to discontinued operations for historical periods presented. The following table summarizes the amount of interest expense related to the previous credit facility that has been reclassified to discontinued operations.

	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Interest on debt	$	11,214	$	23,350
Amortization of debt issuance costs	1,251		2,477
Capitalized interest	(182)		(405)
Other	57		188
Total interest expense of discontinued operations	$	12,340	$	25,610

The following table presents the significant noncash items and cash paid for capital expenditures of discontinued operations for the historical period presented.

	Six Months Ended June 30, 2020
Depreciation and amortization	$	23,701
Goodwill impairment	146,757
Amortization of debt issuance costs	2,477
Acquisition of property, plant and equipment	6,036
Right-of-use assets obtained in exchange for new finance lease liabilities	696
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	6,064

_______________________________

(1) Includes new leases, renewals, and modifications.

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Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

Our business is aggregated into the following two reportable segments:

•Mobile Solutions, which is focused on growth in the automotive and general industrial end markets; and

•Power Solutions, which is focused on growth in the electrical, general industrial, automotive, aerospace, defense, and medical end markets.

These divisions are considered our two operating segments as each engages in business activities for which it earns revenues and incurs expenses, discrete financial information is available for each, and this is the level at which the chief operating decision maker reviews discrete financial information for purposes of allocating resources and assessing performance. Historically, we had a third operating segment, Life Sciences, that was focused on growth in the medical end market. See Note 2 for information regarding the sale of the Life Sciences business on October 6, 2020. The results of the Life Sciences business are classified as discontinued operations for the three and six months ended June 30, 2020, and therefore are not included in the tabular presentation below.

The following tables present results of continuing operations by reportable segment.

	Mobile Solutions		Power Solutions		Corporate and Consolidations			Total
Three Months Ended June 30, 2021
Net sales	$	73,886	$	49,271	$	—	(a)	$	123,157
Income (loss) from operations	2,509		2,875		(6,972)			$	(1,588)
Interest expense								(3,573)
Other								(1,680)
Loss from continuing operations before income taxes and share of net income from joint venture								$	(6,841)
Three Months Ended June 30, 2020
Net sales	$	41,037	$	37,491	$	4	(a)	$	78,532
Income (loss) from operations	(4,592)		1,454		(8,039)			$	(11,177)
Interest expense								(6,356)
Other								1,215
Loss from continuing operations before income taxes and share of net income from joint venture								$	(16,318)

	Mobile Solutions		Power Solutions		Corporate and Consolidations			Total
Six Months Ended June 30, 2021
Net sales	$	151,662	$	98,346	$	(47)	(a)	$	249,961
Income (loss) from operations	8,599		5,307		(14,516)			$	(610)
Interest expense								(5,597)
Other								(7,698)
Loss from continuing operations before income taxes and share of net income from joint venture								$	(13,905)
Six Months Ended June 30, 2020
Net sales	$	110,921	$	83,892	$	(68)	(a)	$	194,745
Goodwill impairment	—		92,942		—			92,942
Loss from operations	(4,328)		(88,880)		(21,819)			$	(115,027)
Interest expense								(10,163)
Other								(329)
Loss from continuing operations before income taxes and share of net income from joint venture								$	(125,519)

_______________________________

(a)Includes elimination of intersegment transactions occurring during the ordinary course of business.

As of June 30, 2021, and December 31, 2020, one customer represented 11% and 11%, respectively, of consolidated accounts receivable. Amounts due from this customer are primarily related to Mobile Solutions.

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Inventories

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are comprised of the following amounts:

	June 30, 2021		December 31, 2020
Raw materials	$	27,456	$	22,589
Work in process	25,764		20,758
Finished goods	21,550		19,170
Total inventories	$	74,770	$	62,517

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Goodwill	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill During the first quarter of 2020, our market capitalization declined to a level that was less than the net book value of our stockholders’ equity. The decline in market capitalization was a triggering event that caused us to perform a goodwill impairment analysis as of March 31, 2020. The goodwill impairment analysis required significant judgments to calculate the fair value for the Power Solutions reporting unit, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term growth rate for the operating segment, and determination of weighted average cost of capital. Our forecasts used in the goodwill impairment analysis reflected our expectations of declines in sales resulting from COVID-19. Significant assumptions and estimates are involved in the application of the discounted cash flow model to forecast operating cash flows, including market growth and market share, sales volumes and prices, costs to produce, discount rate, and estimated capital needs. Management considers historical experience and all available information at the time the fair values of its reporting units are estimated. Assumptions in estimating future cash flows are subject to a high degree of judgment and complexity. The carrying value of the Power Solutions reporting unit exceeded the estimated fair value as of the March 31, 2020, analysis. As a result of our analysis, we recorded an impairment loss on goodwill of $92.9 million to the “Goodwill impairment” line on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). As of June 30, 2021, and December 31, 2020, there was no remaining goodwill balance.

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Intangible Assets, Net

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

Intangible Assets, Net

The following table shows changes in the carrying amount of intangible assets, net, by reportable segment.

	Mobile Solutions		Power Solutions		Total
Balance as of December 31, 2020	$	29,062	$	74,003	$	103,065
Amortization	(1,677)		(5,497)		(7,174)
Balance as of June 30, 2021	$	27,385	$	68,506	$	95,891

Intangible assets are tested for impairment when changes in circumstances indicate the carrying value of those assets may not be recoverable. As of June 30, 2021, and December 31, 2020, there were no indicators of impairment.

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Investment in Joint Venture

6 Months Ended

Jun. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investment in Joint Venture

Investment in Joint Venture

We own a 49% investment in Wuxi Weifu Autocam Precision Machinery Company, Ltd. (the “JV”), a joint venture located in Wuxi, China. The JV is jointly controlled and managed, and we account for it under the equity method.

The following table shows changes in our investment in the JV.

Balance as of December 31, 2020	$	26,983
Share of earnings	2,614
Foreign currency translation gain	300
Balance as of June 30, 2021	$	29,897

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Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our effective tax rate for continuing operations was 3.4% and 7.1% for the three and six months ended June 30, 2021, respectively, and (13.3)% and (0.6)% for the three and six months ended June 30, 2020, respectively. The effective tax rate for the three and six months ended June 30, 2021, differs from the U.S. federal statutory tax rate of 21% primarily due to the accrual of tax on non-permanently reinvested unremitted earnings of foreign subsidiaries and by limitation on the amount of tax benefit recorded for loss carryforwards in certain jurisdictions where we believe it is more likely than not that a portion of the future tax benefit may not be realized. In addition, the effective tax rate was unfavorably impacted by U.S. tax on the earnings of foreign subsidiaries under the global intangible low-taxed income (“GILTI”) regime.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted. The provisions of the legislation had a significant impact on our effective tax rate and income tax receivable as of and for the six months ended June 30, 2020. Under the CARES Act, NOLs arising in tax years beginning after December 31, 2017, were carried back to preceding tax years when the federal tax rate was 35% rather than the currently enacted 21%. The effective tax rate for the three and six months ended June 30, 2020, was also adversely impacted by the effect of the non-deductible goodwill impairment on the estimated annual effective tax rate and the impact of the minimum GILTI tax, partially offset by impacts from the CARES Act.

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Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt

Debt On March 22, 2021, we entered into a new $150.0 million term loan facility (the “Term Loan Facility”) and a new $50.0 million asset backed credit facility (the “ABL Facility”). The proceeds from the Term Loan Facility were used to prepay the amounts outstanding on our previous term loans. The previous credit facility was terminated and consisted of a Senior Secured Term Loan, Incremental Term Loan, and Senior Secured Revolver. No amounts were outstanding on the Senior Secured Revolver at the time of termination.

The following table presents debt balances as of June 30, 2021, and December 31, 2020.

	June 30, 2021		December 31, 2020
Term Loan Facility	$	149,625	$	—
Senior Secured Term Loan	—		47,728
Incremental Term Loan	—		22,716
International lines of credit and other loans	12,171		14,418
Total principal	161,796		84,862
Less-current maturities of long-term debt	4,808		4,885
Principal, net of current portion	156,988		79,977
Less-unamortized debt issuance costs and discount (1)	6,260		952
Long-term debt, net of current portion	$	150,728	$	79,025

_______________________________

(1) In addition to this amount, costs of $0.8 million related to the ABL Facility were recorded in other non-current assets as of June 30, 2021, and $1.8 million related to the Senior Secured Revolver were recorded in other non-current assets as of December 31, 2020.

We capitalized interest costs of $0.1 million and less than $0.1 million in the three months ended June 30, 2021 and 2020, respectively, and $0.1 million and $0.1 million in the six months ended June 30, 2021 and 2020, respectively, related to construction in progress.

Term Loan Facility

Outstanding borrowings under the Term Loan Facility bear interest at either 1) one-month LIBOR (subject to a 1.000% floor) plus an applicable margin of 6.875% or 2) the greater of various benchmark rates plus an applicable margin of 5.875%. At June 30, 2021, the Term Loan Facility bore interest, based on one-month LIBOR, at 7.875%.

The Term Loan Facility requires quarterly principal payments of $0.4 million with the remaining unpaid principal amount due on the final maturity date of September 22, 2026. The Term Loan Facility is collateralized by all of our assets. The Term Loan Facility has a first lien on all assets other than accounts receivable and inventory and has a second lien on accounts receivable and inventory. We were in compliance with all requirements under the Term Loan Facility as of June 30, 2021.

The Term Loan Facility was issued at a $3.8 million discount. We capitalized an additional $2.8 million in new debt issuance costs related to the Term Loan Facility. Debt issuance costs and original issue discount related to the Term Loan Facility are recorded as a direct reduction to the carrying amount of the associated long-term debt and amortized over the term of the debt.

ABL Facility

The ABL Facility provides for a senior secured revolving credit facility in the amount of $50.0 million, of which $30.0 million is available in the form of letters of credit and $5.0 million is available for the issuance of short-term swingline loans. The availability of credit under the ABL Facility is limited by a borrowing base calculation derived from accounts receivable and inventory held in the United States. Outstanding borrowings under the ABL Facility bear interest on a variable rate structure plus an interest rate spread that is based on the average amount of aggregate revolving commitment available. The variable borrowing rate is either 1) LIBOR plus an applicable margin of 1.75% or 2.00%, depending on availability, or 2) the greater of the federal funds rate or prime, plus an applicable margin of 0.75% or 1.00%, depending on availability. We may elect whether to use one-month, three-month, or six-month LIBOR, subject to a 0.50% floor. Interest payments are due monthly on borrowings that utilize one-month LIBOR and quarterly on borrowings that utilize three-month or six-month LIBOR. At June 30, 2021, using one-month LIBOR plus a 1.75% spread, the weighted average interest rate on outstanding borrowings under the ABL Facility would have been 2.25% if there had been any balance outstanding. We pay a commitment fee of 0.375% for unused capacity under the ABL Facility and a 0.125% fee on the amount of letters of credit outstanding. The final maturity date of the ABL Facility is March 22, 2026.

We had no outstanding borrowings under the ABL Facility at June 30, 2021. Total capacity under the ABL Facility was $44.2 million as of June 30, 2021, of which $30.2 million was available for future borrowings after reductions for outstanding letters of credit as of June 30, 2021. The ABL Facility has a first lien on accounts receivable and inventory. We were in compliance with all requirements under the ABL Facility as of June 30, 2021.

We capitalized a total of $0.8 million in new debt issuance costs related to the ABL Facility. Costs related to the ABL Facility are recorded in other non-current assets and amortized over the term of the agreement.

Senior Secured Term Loan

Outstanding borrowings under the Senior Secured Term Loan bore interest at one-month LIBOR (subject to a 0.75% floor) plus an applicable margin of 5.75%. During 2021 until termination, the Senior Secured Term Loan bore interest at 6.50%.

Incremental Term Loan

Outstanding borrowings under the Incremental Term Loan bore interest at one-month LIBOR plus an applicable margin of 5.75%. During 2021 until termination, the Incremental Term Loan bore interest at 5.90%.

Senior Secured Revolver

Outstanding borrowings under the Senior Secured Revolver bore interest on a variable rate structure at either 1) one-month LIBOR plus an applicable margin of 4.00% or 2) the prime lending rate plus an applicable margin of 3.00%. We had no outstanding borrowings under the Senior Secured Revolver during 2021. We incurred a commitment fee of 0.50% for unused capacity under the Senior Secured Revolver until it was terminated.

Debt Issuance Costs

We recognized a $2.4 million loss on extinguishment for unamortized debt issuance costs that were written off in the six months ended June 30, 2021, in connection with the termination of our previous credit facility.

Interest Rate Swap

A portion of the proceeds from the Term Loan Facility was used to settle and terminate our fixed-rate interest rate swap agreement with a cash payment of $13.7 million during the first quarter of 2021. Refer to Note 17 for further discussion of the interest rate swap agreement. On July 22, 2021, we entered into a new interest rate swap as discussed in Note 18.

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Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

The following table contains supplemental cash flow information related to leases of continuing operations.

	Six Months Ended June 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in finance leases	$	113	$	94
Operating cash flows used in operating leases	7,221		7,312
Financing cash flows used in finance leases	2,370		936
Right-of-use assets obtained in exchange for new finance lease liabilities	636		710
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	—		9,334

_______________________________

(1) Includes new leases, renewals, and modifications.

As disclosed in our 2020 Annual Report, we amended the lease of our corporate headquarters building in March 2020 to exit over half of the previously leased space and reduce annual base rent payments. The amendment was accounted for as a lease modification, and the remeasurement of the lease resulted in an $8.1 million decrease in the operating lease right-of-use (“ROU”) asset, a $10.5 million decrease in the noncurrent portion of the operating lease liability, and a $0.6 million decrease in the current portion of the operating lease liability. The $3.0 million difference between the change in the operating lease ROU asset and the operating lease liabilities was recognized in “Other operating expense (income), net,” on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). In connection with the discontinued use of the previously leased space, we also recognized a $4.4 million termination charge and a $2.9 million impairment charge on the associated leasehold improvements, all of which were also recognized in “Other operating expense (income), net.”

Leases

Leases

The following table contains supplemental cash flow information related to leases of continuing operations.

	Six Months Ended June 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in finance leases	$	113	$	94
Operating cash flows used in operating leases	7,221		7,312
Financing cash flows used in finance leases	2,370		936
Right-of-use assets obtained in exchange for new finance lease liabilities	636		710
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	—		9,334

_______________________________

(1) Includes new leases, renewals, and modifications.

As disclosed in our 2020 Annual Report, we amended the lease of our corporate headquarters building in March 2020 to exit over half of the previously leased space and reduce annual base rent payments. The amendment was accounted for as a lease modification, and the remeasurement of the lease resulted in an $8.1 million decrease in the operating lease right-of-use (“ROU”) asset, a $10.5 million decrease in the noncurrent portion of the operating lease liability, and a $0.6 million decrease in the current portion of the operating lease liability. The $3.0 million difference between the change in the operating lease ROU asset and the operating lease liabilities was recognized in “Other operating expense (income), net,” on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). In connection with the discontinued use of the previously leased space, we also recognized a $4.4 million termination charge and a $2.9 million impairment charge on the associated leasehold improvements, all of which were also recognized in “Other operating expense (income), net.”

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Brazil ICMS Tax Matter

Prior to the acquisition of Autocam Corporation (“Autocam”) in 2014, Autocam’s Brazilian subsidiary (“Autocam Brazil”) received notification from the Brazilian tax authority regarding ICMS (state value added tax or “VAT”) tax credits claimed on intermediary materials (e.g., tooling and perishable items) used in the manufacturing process. The Brazilian tax authority notification disallowed state ICMS tax credits claimed on intermediary materials based on the argument that these items are not intrinsically related to the manufacturing processes. Autocam Brazil filed an administrative defense with the Brazilian tax authority arguing, among other matters, that it should qualify for an ICMS tax credit, contending that the intermediary materials are directly related to the manufacturing process.

We believe that we have substantial legal and factual defenses, and we plan to defend our interests in this matter vigorously. The matter encompasses several lawsuits filed with the Brazilian courts requesting declaratory actions that no tax is due or seeking a stay of execution on the collection of the tax. In 2018, we obtained a favorable decision in one of the declaratory actions for which the period for appeal has expired. We have filed actions in each court requesting dismissal of the matter based on the earlier court action. In May 2020, we received an unfavorable decision in one of the lawsuits, and as a result have recorded a liability to the Brazilian tax authorities and a receivable from the former shareholders of Autocam for the same amount. Although we anticipate a favorable resolution to the remaining matters, we can provide no assurances that we will be successful in achieving dismissal of all pending cases. The U.S. dollar amount that would be owed in the event of an unfavorable decision is subject to interest, penalties, and currency impacts and therefore is dependent on the timing of the decision. For the remaining open lawsuits, we currently believe the cumulative potential liability in the event of unfavorable decisions on all matters will be less than $5.0 million, inclusive of interest and penalties.

We are entitled to indemnification from the former shareholders of Autocam, subject to the limitations and procedures set forth in the agreement and plan of merger relating to the Autocam acquisition. Management believes the indemnification would include amounts owed for the tax, interest, and penalties related to this matter. Accordingly, we don’t expect to incur a loss related to this matter even in the event of an unfavorable decision and, therefore, have not accrued an amount for the remaining matters as of June 30, 2021.

Securities Offering Matter

On November 1, 2019, Erie County Employees’ Retirement System, on behalf of a purported class of plaintiffs, filed a complaint in the Supreme Court of the State of New York, County of New York, against the Company, certain of the Company’s current and former officers and directors, and each of the underwriters involved in the Company’s public offering and sale of 14.4 million shares of its common stock pursuant to a preliminary prospectus supplement, dated September 10, 2018, a final prospectus supplement, dated September 13, 2018, and a base prospectus, dated April 19, 2017, relating to the Company’s effective shelf registration statement on Form S-3 (File No. 333-216737) (the “Offering”), which complaint was amended on January 24, 2020. The complaint alleges violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 in connection with the Offering. The plaintiffs seek to represent a class of stockholders who purchased shares of the Company’s common stock in the Offering. The complaint seeks unspecified monetary damages and other relief. The Company believes the complaint and allegations to be without merit and intends to vigorously defend itself against these actions. The Company is unable at this time to determine whether the outcome of the litigation would have a material impact on the Company’s financial position, results of operations, or cash flows.

Other Legal Matters

On October 26, 2020, Corre Opportunities Qualified Master Fund, LP, and Corre Horizon Fund, LP, (collectively, “Corre Partners”) filed a complaint in the Chancery Court of the State of Delaware against the Company. The complaint alleged that the Company’s sale of its Life Sciences business without obtaining the prior consent of the plaintiffs was a breach of the terms of the Series B Preferred Stock. On May 13, 2021, Company entered into a cooperation agreement with Corre Partners. In connection with the cooperation agreement, on May 13, 2021, the Company also entered into a settlement agreement with Corre Partners, which resolved the complaint.

All other legal proceedings are of an ordinary and routine nature and are incidental to our operations. Management believes that such proceedings should not, individually or in the aggregate, have a material adverse effect on our business, financial condition, results of operations, or cash flows. In making that determination, we analyze the facts and circumstances of each case at least quarterly in consultation with our attorneys and determine a range of reasonably possible outcomes.

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Preferred Stock and Stockholders' Equity

6 Months Ended

Jun. 30, 2021

Temporary Equity Disclosure [Abstract]

Preferred Stock and Stockholders' Equity

Preferred Stock and Stockholders' Equity

Series D Perpetual Preferred Stock

On March 22, 2021, we completed a private placement of 65 thousand shares of newly designated Series D Perpetual Preferred Stock, with a par value of $0.01 per share (the “Series D Preferred Stock”), at a price of $1,000 per share, together with detachable warrants (the “2021 Warrants”) to purchase up to 1.9 million shares of our common stock at an exercise price of $0.01 per share. The Series D Preferred Stock has an initial liquidation preference of $1,000 per share and is redeemable at our option in cash at a redemption price equal to the liquidation preference then in effect. Series D Preferred Stock shares earn cash dividends at a rate of 10.0% per year, payable quarterly in arrears, accruing whether or not earned or declared. If no cash dividend is paid, then the liquidation preference per share effective on the dividend date increases by 12.0% per year. On March 22, 2026, the cash dividend rate and in-kind dividend rate increase by 2.5% per year. Cash dividends are required beginning on September 30, 2027.

The Series D Preferred Stock is classified as mezzanine equity, between liabilities and stockholders’ equity, because certain features of the Series D Preferred Stock could require redemption of the Series D Preferred Stock upon a change of control event that is considered not solely within our control. For initial recognition, the Series D Preferred Stock was recognized at a discounted value, net of issuance costs and allocation to warrants and a bifurcated embedded derivative. The aggregate discount is amortized as a deemed dividend through March 22, 2026, which is the date the dividend rate begins to increase by 2.5% per year. Deemed dividends adjust retained earnings (or in the absence of retained earnings, additional paid-in capital).

In accordance with ASC 815-15, Derivatives and Hedging - Embedded Derivatives, certain features of the Series D Preferred Stock were bifurcated and accounted for as derivatives separately. Note 17 discusses the accounting for these features.

As of June 30, 2021, the carrying value of the Series D Preferred Stock shares was $49.1 million which included $2.4 million of accumulated unpaid and deemed dividends. The following table presents the change in the Series D Preferred Stock carrying value during the six months ended June 30, 2021.

	Six Months Ended June 30, 2021
Beginning balance	$	—
Proceeds from issuance of shares, net of issuance costs	61,793
Fair value of 2021 Warrants issued	(14,839)
Recognition of bifurcated embedded derivative	(282)
Accrual of in-kind dividends	2,123
Amortization	274
Ending balance	$	49,069

Net cash proceeds of $61.8 million from the issuance of the Series D Preferred Stock, along with part of the proceeds from the Term Loan Facility, were used to redeem all of the outstanding shares of the Company’s Series B Convertible Preferred Stock (the “Series B Preferred Stock”).

Series B Convertible Preferred Stock

The Series B Preferred Stock had a liquidation preference of $1,000 per share and was redeemable in cash at our option, subject to the applicable redemption premium. Series B Preferred Stock shares earned cumulative dividends at a rate of 10.625% per year, and accrued whether or not earned or declared. The Series B Preferred Stock was recognized at a discounted value, net of issuance costs and allocation to warrants and bifurcated embedded derivatives. The aggregate discount was amortized as a deemed dividend through December 31, 2023, which is the date the holders had a non-contingent conversion option into a variable number of common shares equal to the liquidation preference plus accrued and unpaid dividends. Deemed dividends adjust retained earnings (or in the absence of retained earnings, additional paid-in capital).

At redemption on March 22, 2021, the carrying value of the Series B Preferred Stock shares included $14.3 million of accumulated unpaid and deemed dividends. The following table presents the change in the Series B Preferred Stock carrying value during the six months ended June 30, 2021.

	Six Months Ended June 30, 2021
Beginning balance	$	105,086
Accrual of in-kind dividends	14,008
Amortization	335
Redemption	(119,429)
Ending balance	$	—

Preferred Share Purchase Rights

On April 15, 2020, our Board of Directors authorized and declared a dividend of one preferred share purchase right for each outstanding share of common stock to shareholders of record on April 27, 2020. The rights expired on March 31, 2021.

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Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Revenue is recognized when control of the good or service is transferred to the customer either at a point in time or, in limited circumstances, as our services are rendered over time. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or services. The following tables summarize revenue by customer geographical region.

	Three Months Ended June 30, 2021
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
United States and Puerto Rico	$	35,284	$	39,424	$	—	$	74,708
China	13,219		1,282		—		14,501
Brazil	9,985		343		—		10,328
Mexico	4,829		4,349		—		9,178
Germany	1,369		96		—		1,465
Poland	904		3		—		907
Other	8,296		3,774		—		12,070
Total net sales	$	73,886	$	49,271	$	—	$	123,157

	Three Months Ended June 30, 2020
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
United States and Puerto Rico	$	20,237	$	30,859	$	4	$	51,100
China	10,726		1,252		—		11,978
Brazil	2,132		63		—		2,195
Mexico	2,456		4,119		—		6,575
Germany	851		90		—		941
Poland	341		3		—		344
Other	4,294		1,105		—		5,399
Total net sales	$	41,037	$	37,491	$	4	$	78,532

	Six Months Ended June 30, 2021
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
United States and Puerto Rico	$	72,722	$	79,230	$	(47)	$	151,905
China	27,633		2,788		—		30,421
Brazil	19,653		535		—		20,188
Mexico	9,844		7,746		—		17,590
Germany	3,136		260		—		3,396
Poland	2,084		7		—		2,091
Other	16,590		7,780		—		24,370
Total net sales	$	151,662	$	98,346	$	(47)	$	249,961

	Six Months Ended June 30, 2020
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
United States and Puerto Rico	$	57,366	$	69,156	$	(68)	$	126,454
China	18,418		2,409		—		20,827
Brazil	10,715		193		—		10,908
Mexico	7,292		6,262		—		13,554
Germany	3,001		129		—		3,130
Poland	2,099		8		—		2,107
Other	12,030		5,735		—		17,765
Total net sales	$	110,921	$	83,892	$	(68)	$	194,745

The following tables summarize revenue by customer industry. Our products in the automotive industry include high-precision components and assemblies for fuel systems, steering systems, electric motors, transmissions, moldings, stampings, sensors, and electrical contacts. Our products in the general industrial industry include high-precision metal and plastic components for a variety of industrial applications including heating and cooling systems, fluid power systems, power tools, and more. While many of the industries we serve include electrical components, our products in the residential/commercial electrical industry category in the following tables include electrical contact assemblies, precision stampings, welded contact assemblies, and specification plating and surface finishing.

	Three Months Ended June 30, 2021
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
Automotive	$	46,247	$	12,121	$	—	$	58,368
General Industrial	24,449		13,625		—		38,074
Residential/Commercial Electrical	—		16,798		—		16,798
Other	3,190		6,727		—		9,917
Total net sales	$	73,886	$	49,271	$	—	$	123,157

	Three Months Ended June 30, 2020
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
Automotive	$	22,511	$	6,817	$	—	$	29,328
General Industrial	17,178		11,345		—		28,523
Residential/Commercial Electrical	—		12,838		—		12,838
Other	1,348		6,491		4		7,843
Total net sales	$	41,037	$	37,491	$	4	$	78,532

	Six Months Ended June 30, 2021
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
Automotive	$	96,391	$	25,581	$	—	$	121,972
General Industrial	48,759		27,335		—		76,094
Residential/Commercial Electrical	—		31,980		—		31,980
Other	6,512		13,450		(47)		19,915
Total net sales	$	151,662	$	98,346	$	(47)	$	249,961

	Six Months Ended June 30, 2020
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
Automotive	$	71,585	$	19,181	$	—	$	90,766
General Industrial	35,157		23,888		—		59,045
Residential/Commercial Electrical	—		26,699		—		26,699
Other	4,179		14,124		(68)		18,235
Total net sales	$	110,921	$	83,892	$	(68)	$	194,745

Transaction Price Allocated to Future Performance Obligations

We are required to disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2021, unless our contracts meet one of the practical expedients. Our contracts met the practical expedient for a performance obligation that is part of a contract that has an original expected duration of one year or less.

Sales Concentration

We recognized sales from a single customer of $13.2 million, or 11% and $26.2 million, or 11%, of consolidated net sales, during the three and six months ended June 30, 2021, respectively. We recognized sales from this customer of $9.2 million, or 12% of consolidated net sales, during the three months ended June 30, 2020. Revenues from this customer are primarily in our Mobile Solutions segment.

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Shared-Based Compensation

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Shared-Based Compensation

Share-Based Compensation

Share-based compensation cost is recognized in the “Selling, general, and administrative expense” line in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) except for $0.2 million and $0.4 million, attributable to discontinued operations for the three and six months ended June 30, 2020, respectively. The following table lists the components of share-based compensation expense by type of award. 

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Stock options	$	59	$	140	$	148	$	321
Restricted stock	591		936		1,139		1,828
Performance share units	450		335		699		558
Change in estimate of share-based award vesting (1)	(337)		—		(337)		—
Share-based compensation expense	$	763	$	1,411	$	1,649	$	2,707

_______________________________ 

(1)    Amounts reflect the decrease in share-based compensation expense based on the change in estimate of the probability of vesting of share-based awards.

Stock Options

The following table presents stock option activity for the six months ended June 30, 2021.

	Number of Options (in thousands)	Weighted- Average Exercise Price (per share)		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2021	871	$	12.41
Exercised	(6)	7.93
Forfeited or expired	(71)	13.81
Outstanding at June 30, 2021	794	$	12.32	3.6 years	$	—	(1)
Exercisable at June 30, 2021	698	$	12.79	3.0 years	$	—	(1)

_______________________________ 

(1)The aggregate intrinsic value is the sum of intrinsic values for each exercisable individual option grant. The intrinsic value is the amount by which the closing market price of our stock at June 30, 2021, was greater than the exercise price of any individual option grant.

Restricted Stock

During the six months ended June 30, 2021, we granted 459 thousand shares of restricted stock to non-executive directors, officers and certain other key employees. The shares of restricted stock granted during the six months ended June 30, 2021, vest pro-rata generally over three years for employees and over one year for non-executive directors. We determined the fair value of the shares awarded by using the closing price of our common stock as of the date of grant. The weighted average grant date fair value of restricted stock granted in the six months ended June 30, 2021, was $6.84 per share. Total grant date fair value of restricted stock that vested in the six months ended June 30, 2021, was $2.8 million.

The following table presents the status of unvested restricted stock awards as of June 30, 2021, and changes during the six months then ended.

	Nonvested Restricted Shares (in thousands)	Weighted Average Grant-Date Fair Value (per share)
Unvested at January 1, 2021	385	$	9.42
Granted	459	6.84
Vested	(303)	9.34
Forfeited	(65)	7.20
Unvested at June 30, 2021	476	$	7.28

Performance Share Units

Performance Share Units (“PSUs”) are a form of long-term incentive compensation awarded to executive officers and certain other key employees designed to directly align the interests of employees to the interests of our stockholders, and to create long-term stockholder value. PSUs granted in 2021 were made pursuant to the NN, Inc. 2019 Omnibus Incentive Plan and a Performance Share Unit Agreement (the “2019 Omnibus Agreement”). Some PSUs are based on total shareholder return (“TSR Awards”), and other PSUs are based on return on invested capital (“ROIC Awards”).

The TSR Awards vest, if at all, upon our achieving a specified relative total shareholder return, which will be measured against the total shareholder return of the S&P SmallCap 600 Index during specified performance periods as defined in the 2019 Omnibus Agreement. The ROIC Awards vest, if at all, upon our achieving a specified average return on invested capital during the performance periods. Each performance period generally begins on January 1 of the year of grant and ends 36 months later on December 31.

We recognize compensation expense over the performance period in which the performance and market conditions are measured. If the PSUs do not vest at the end of the performance periods, then the PSUs will expire automatically. Upon vesting, the PSUs will be settled by the issuance of shares of our common stock, subject to the award recipient’s continued employment. The actual number of shares of common stock to be issued to each award recipient at the end of the performance periods will be interpolated between a threshold and maximum payout amount based on actual performance results. No dividends will be paid on outstanding PSUs during the performance period; however, dividend equivalents will be paid based on dividends declared and the number of shares of common stock that are ultimately earned at the end of the performance periods.

With respect to the TSR and ROIC Awards, a participant will earn 50% of the target number of PSUs for “Threshold Performance,” 100% of the target number of PSUs for “Target Performance,” and 150% of the target number of PSUs for “Maximum Performance.” For performance levels falling between the values shown below, the percentages will be determined by interpolation.

The following table presents the goals with respect to TSR Awards and ROIC Awards granted or modified in 2021.

TSR Awards:	Threshold Performance (50% of Shares)	Target Performance (100% of Shares)	Maximum Performance (150% of Shares)
2021 grants	35th Percentile	50th Percentile	75th Percentile
ROIC Awards:	Threshold Performance (50% of Shares)	Target Performance (100% of Shares)	Maximum Performance (150% of Shares)
2021 grants	6.3%	7.0%	8.6%
2020 grants (1)	6.7%	7.9%	8.7%

_______________________________

(1)The performance levels for 2020 grants were modified by the compensation committee of the board of directors in the first quarter of 2021 to adjust for the sale of the Life Sciences business and the ongoing effects of the COVID-19 pandemic.

We estimate the grant date fair value of TSR Awards using the Monte Carlo simulation model, as the total shareholder return metric is considered a market condition under ASC Topic 718, Compensation – stock compensation. The grant date fair value of ROIC Awards is based on the closing price of a share of our common stock on the date of grant.

The following table presents the number of PSUs granted and the grant date fair value in the period presented.

	TSR Awards		ROIC Awards
Award Year	Shares (in thousands)	Grant Date Fair Value (per share)	Shares (in thousands)	Grant Date Fair Value (per share)
2021	142	$8.58	172	$7.20

We recognize expense for ROIC Awards based on the probable outcome of the associated performance condition. We generally recognize an expense for ROIC Awards based on the Target Performance threshold of 100% because, at the date of grant, the Target Performance is the probable level of performance achievement.

The following table presents the status of unvested PSUs as of June 30, 2021, and changes during the six months then ended.

	Nonvested TSR Awards			Nonvested ROIC Awards
	Shares (in thousands)	Weighted Average Grant-Date Fair Value (per share)		Shares (in thousands)	Weighted  Average Grant-Date Fair Value (per share)
Nonvested at January 1, 2021	138	$	10.58	160	$	9.13
Granted	142	8.58		172	7.20
Forfeited	(61)	9.61		(71)	8.17
Nonvested at June 30, 2021	219	$	9.55	261	$	8.12

Change in Vesting Estimates

During the six months ended June 30, 2021, we recognized a decrease in share-based compensation expense in continuing operations of $0.3 million in the “Selling, general, and administrative expense” line in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) to reverse cumulative expense for restricted stock and PSU awards that were forfeited upon termination of employment and were in excess of our estimated forfeiture rate.

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

The following tables present the components of accumulated other comprehensive income (“AOCI”).

	Foreign Currency Translation		Interest rate swap		Income taxes (1)		Total
Balance at March 31, 2021	$	(34,228)	$	—	$	—	$	(34,228)
Net other comprehensive income (loss)	4,409		—		—		4,409
Balance at June 30, 2021	$	(29,819)	$	—	$	—	$	(29,819)
Balance at March 31, 2020	$	(49,501)	$	(25,463)	$	5,911	$	(69,053)
Other comprehensive income (loss) before reclassifications	994		(1,635)		380		(261)
Amounts reclassified from AOCI to interest expense (2)	—		3,436		(798)		2,638
Net other comprehensive income (loss)	994		1,801		(418)		2,377
Balance at June 30, 2020	$	(48,507)	$	(23,662)	$	5,493	$	(66,676)

	Foreign Currency Translation		Interest rate swap		Income taxes (1)		Total
Balance at December 31, 2020	$	(30,881)	$	(3,712)	$	861	$	(33,732)
Other comprehensive income (loss) before reclassifications	1,062		—		—		1,062
Amounts reclassified from AOCI to loss on interest rate swap (3)	—		3,712		(861)		2,851
Net current-period other comprehensive income (loss)	1,062		3,712		(861)		3,913
Balance at June 30, 2021	$	(29,819)	$	—	$	—	$	(29,819)
Balance at December 31, 2019	$	(35,159)	$	(12,234)	$	2,839	$	(44,554)
Other comprehensive income (loss) before reclassifications	(13,348)		(16,234)		3,770		(25,812)
Amounts reclassified from AOCI to interest expense (2)	—		4,806		(1,116)		3,690
Net current-period other comprehensive income (loss)	(13,348)		(11,428)		2,654		(22,122)
Balance at June 30, 2020	$	(48,507)	$	(23,662)	$	5,493	$	(66,676)

_______________________

(1) Income tax effect of changes in interest rate swap.

(2) Represents settlements on the interest rate swap while the hedge was effective.

(3) Represents reclassification of derivative loss and settlements after discontinuation of hedge accounting.

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Net Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share In accordance with ASC 260, Earnings Per Share, a company that has participating securities is required to utilize the two-class method for calculating earnings per share (“EPS”) unless the treasury stock method results in lower EPS. The two-class method is an allocation of earnings between the holders of common stock and a company’s participating securities. Basic EPS is calculated by dividing income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding. To calculate diluted EPS, basic EPS is further adjusted to include the effect of potentially dilutive stock options, warrants, and convertible preferred stock. 

The following table summarizes the computation of basic and diluted net loss per common share.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator:
Loss from continuing operations	$	(5,391)	$	(17,566)	$	(10,304)	$	(125,643)
Less: Preferred stock cumulative dividends and deemed dividends	(2,211)		(3,043)		(16,740)		(5,994)
Numerator for basic and diluted loss from continuing operations per common share (1)	(7,602)		(20,609)		(27,044)		(131,637)
Loss from discontinued operations, net of tax (Note 2)	—		(4,182)		—		(144,296)
Numerator for basic and diluted undistributed net loss per common share (1)	$	(7,602)	$	(24,791)	$	(27,044)	$	(275,933)
Denominator:
Weighted average common shares outstanding	43,067		42,753		42,952		42,671
Adjustment for unvested restricted common stock	(524)		(556)		(450)		(517)
Adjustment for 2021 Warrants outstanding (2)	1,897		—		1,059		—
Shares used to calculate income (loss) per share, basic and diluted	44,440		42,197		43,561		42,154
Per common share net loss:
Basic loss from continuing operations per common share	$	(0.17)	$	(0.49)	$	(0.62)	$	(3.12)
Basic loss from discontinued operations per common share	—		(0.10)		—		(3.43)
Basic net loss per common share	$	(0.17)	$	(0.59)	$	(0.62)	$	(6.55)
Diluted loss from continuing operations per common share	$	(0.17)	$	(0.49)	$	(0.62)	$	(3.12)
Diluted loss from discontinued operations per common share	—		(0.10)		—		(3.43)
Diluted net loss per common share	$	(0.17)	$	(0.59)	$	(0.62)	$	(6.55)
Cash dividends declared per common share	$	—	$	—	$	—	$	—

_______________________________

(1) Preferred Stock does not participate in losses.

(2) Weighted average 2021 Warrants outstanding are included in shares outstanding for calculation of basic earnings per share because they are exercisable at an exercise price of $0.01 per share, subject to certain adjustments (see Note 17).

The following table presents securities that could be potentially dilutive in the future that were excluded from the calculation of diluted net loss per common share because they had an anti-dilutive effect.

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Options	825	890	843	890
2019 Warrants	1,500	1,500	1,500	1,500
Series B Preferred Stock, as-converted	—	25,278	—	25,278
	2,325	27,668	2,343	27,668

We have elected to allocate undistributed income to participating securities based on year-to-date results. As there was no undistributed income for the three and six months ended June 30, 2021, no such allocation was necessary. In addition, given the undistributed loss from continuing operations in the three and six months ended June 30, 2021 and 2020, options and the 2019 Warrants are considered anti-dilutive and were excluded from the calculation of diluted net loss per share. Stock options excluded from the calculations of diluted net loss per share had a per share exercise price ranging from $7.93 to $25.16 for the three months ended June 30, 2021, and $7.93 to $25.16 for three months ended June 30, 2020. Stock options excluded from the

calculations of diluted net income (loss) per share had a per share exercise price ranging from $7.93 to $25.16 for the six months ended June 30, 2021, and $7.93 to $25.16 for six months ended June 30, 2020. The 2019 Warrants excluded from the calculation of diluted net loss per share for the three and six months ended June 30, 2021, had a per share exercise price of $11.49. Series B Preferred Stock excluded from the calculation of diluted net loss per share for the three and six months ended June 30, 2020, was calculated on an as-converted basis.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is an exit price representing the expected amount that an entity would receive to sell an asset or pay to transfer a liability in an orderly transaction with market participants at the measurement date. We followed consistent methods and assumptions to estimate fair values as more fully described in the 2020 Annual Report.

Fair value principles prioritize valuation inputs across three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the assumptions used to measure assets and liabilities at fair value. An asset or liability’s classification within the various levels is determined based on the lowest level input that is significant to the fair value measurement.

Our financial instruments that are subject to fair value disclosure consist of cash and cash equivalents, accounts receivable, accounts payable, derivatives, and long-term debt. As of June 30, 2021, the carrying values of these financial instruments approximated fair value.

Derivative Financial Instruments

Certain features were bifurcated and accounted for separately from the Series B Preferred Stock. The following features were recorded as derivatives.

•Leverage ratio put feature. The Series B Preferred Stock included a redemption option based on a leverage ratio threshold that provided the preferred holder the option to convert the Series B Preferred Stock to a variable number of shares of common stock at a discount to the then fair value of our common stock. The conversion feature was considered a redemption right at a premium which was not clearly and closely related to the debt host. The conversion feature was terminated upon redemption of the Series B Preferred Stock in March 2021.

•Dividends withholding. The Series B Preferred Stock bore a feature that could require us to make an effective distribution to purchasers which is indexed to the tax rate of the purchasers. This distribution would be partially offset by an adjustment to the redemption price and/or conversion rate. The dividends withholding feature was not clearly and closely related to the debt host. Upon redemption of the Series B Preferred Stock in March 2021, we made a net cash distribution of $3.0 million to settle this withholding feature after effectively receiving a $1.0 million offset from the purchasers upon redemption of the Series B Preferred Stock.

•Warrants. The warrants issued with the Series B Preferred Stock (the “2019 Warrants”) are exercisable, in full or in part, at any time prior to December 11, 2026. The original exercise price was $12.00 per share, subject to anti-dilution adjustments in the event of future below market issuances, stock splits, stock dividends, combinations or similar events. The issuance of the 2021 Warrants resulted in an adjusted exercise price of $11.49 per share for the 2019 Warrants because the new warrants have an exercise price below market value.

Certain features were bifurcated and accounted for separately from the Series D Preferred Stock that was issued on March 22, 2021. The following features were recorded as derivatives.

•Change-in-control put feature. The Series D Preferred Stock includes a put feature that allows the holder to redeem the Series D Preferred Stock upon a change in control at the greater of 1) the liquidation preference plus accrued dividends or 2) 140% of the liquidation preference. The put feature is considered a redemption right at a premium and is not clearly and closely related to the debt host.

•Warrants. The 2021 Warrants are exercisable, in full or in part, at any time prior to March 22, 2027, at an exercise price of $0.01 per share, subject to anti-dilution adjustments in the event of certain future equity issuances, stock splits, stock dividends, combinations or similar events.

The following tables show the liabilities measured at fair value for the above derivatives as of June 30, 2021, and December 31, 2020.

	Fair Value Measurements as of June 30, 2021
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability - other current liabilities	$	—	$	—	$	—
Derivative liability - other non-current liabilities	13,946		—		1,510
Total	$	13,946	$	—	$	1,510

	Fair Value Measurements as of December 31, 2020
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability - other current liabilities	$	—	$	—	$	2,453
Derivative liability - other non-current liabilities	—		—		664
Total	$	—	$	—	$	3,117

The following table presents the change in the above derivatives during the six months ended June 30, 2021.

	Six Months Ended June 30, 2021
Beginning balance	$	3,117
Issuances	15,121
Change in fair value (1)	223
Settlements	(3,005)
Ending balance	$	15,456

_______________________________

(1) Changes in the fair value are recognized in the “Other expense (income), net” line in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

The fair value of the change-in-control put feature utilizes unobservable inputs based on the Company’s assessment of the probability of a change-in-control event occurring in a future period. The probability of a change-in-control event ranged from 1% to 10% as of June 30, 2021.

The leverage ratio put feature, the dividends withholding feature, and the contingent dividends feature utilized unobservable inputs based on the best information available to determine the probability of the Series B Preferred Stock remaining outstanding for future periods. These inputs included probability assessments of how long the Series B Preferred Stock would remain outstanding and whether the leverage ratio threshold would be exceeded. Inputs also included the percentage of Series B Preferred Stock held by non-U.S. resident holders and the applicable tax withholding rates for those holders. The probability of the Series B Preferred Stock remaining in future periods ranged from 3% to 2% as of December 31, 2020. The leverage ratio put feature also utilized unobservable inputs to determine the probability of the leverage ratio put being exercisable as of March 31, 2023, which ranged from 10% to 1% as of December 31, 2020. These probabilities were determined based on management’s assessment of facts and circumstances at each reporting date. An increase in these probabilities would have resulted in an increase in the derivative liability fair value. Given the Series B Preferred Stock value changed by period as a result of dividends and redemption premiums, weighted average values for these assumptions are not meaningful.

The fair value of the 2019 Warrants is determined using a valuation model that utilizes unobservable inputs to determine the probability that the 2019 Warrants will remain outstanding for future periods. The probabilities resulted in a weighted average term of 4.2 years as of June 30, 2021, and 2.4 years as of December 31, 2020.

The fair value of the 2021 Warrants is determined using the observable market price of a share of our common stock, less the $0.01 per share exercise price.

Interest Rate Swap

We manage our exposure to fluctuations in interest rates using a mix of fixed and variable rate debt. We had a fixed-rate interest rate swap agreement that changed the LIBOR-based portion of the interest rate on a portion of our variable rate debt to a fixed rate of 2.4575% (the “interest rate swap”). On March 22, 2021, we terminated the interest rate swap agreement with a $13.7 million cash payment in connection with the extinguishment of our previously outstanding long-term variable-rate debt.

The interest rate swap was designated as a cash flow hedge at inception. However, in the fourth quarter of 2020, the interest rate swap no longer qualified as an effective hedge, and subsequent changes in fair value of the interest rate swap were recognized in earnings. Amounts recognized in earnings related to the interest rate swap are recorded in the “Loss on interest rate swap” line on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) except that cash settlements prior to termination are recognized in “Derivative payments on interest rate swap.” Cash settlements during 2021 are presented in investing activities on the Condensed Consolidated Statements of Cash Flows. The following table presents the effect of the interest rate swap on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Interest expense	$	—	$	3,436	$	—	$	4,806
Derivative payments on interest rate swap	—		—		1,717		—
Loss on interest rate swap	—		—		2,033		—

The following table presents the liabilities measured at fair value on a recurring basis for the interest rate swap as of December 31, 2020.

	Fair Value Measurements as of December 31, 2020
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability - other current liabilities	$	—	$	11,022	$	—
Derivative liability - other non-current liabilities	—		4,357		—
Total	$	—	$	15,379	$	—

The inputs for determining fair value of the interest rate swap are classified as Level 2 inputs. Level 2 fair value is based on estimates using standard pricing models. These standard pricing models use inputs which are derived from or corroborated by observable market data such as interest rate yield curves, index forward curves, discount curves, and volatility surfaces. Counterparty to this derivative contract is a highly rated financial institution which we believe carries only a minimal risk of nonperformance.

On July 22, 2021, we entered into a new interest rate swap as discussed in Note 18.

Fixed Rate Debt

The fair value of our outstanding fixed-rate debt included in the “International lines of credit and other loans” line item within Note 9 to these Notes to Condensed Consolidated Financial Statements approximated carrying value as of June 30, 2021, and December 31, 2020, respectively. These fair values represent Level 2 under the three-tier hierarchy described above. The carrying value of this fixed-rate debt was $12.2 million and $14.4 million as of June 30, 2021 and December 31, 2020, respectively.

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Subsequent Events

6 Months Ended

Jun. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

Subsequent Event

Interest Rate Swap Agreement

On July 22, 2021, we entered into a new fixed-rate interest rate swap agreement to change the LIBOR-based component of the interest rate on a portion of our variable rate debt to a fixed rate of 1.291%. The interest rate swap has a notional amount of $60.0 million and a maturity date of July 31, 2024.

The objective of the interest rate swap is to eliminate the variability of cash flows in interest payments on the first $60.0 million of variable rate debt attributable to changes in benchmark one-month LIBOR interest rates. The hedged risk is the interest rate risk exposure to changes in interest payments, attributable to changes in benchmark one-month LIBOR interest rates over the interest rate swap term. The changes in cash flows of the interest rate swap are expected to exactly offset changes in cash flows of the variable rate debt. We designated the interest rate swap as a cash flow hedge at inception.

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Interim Financial Statements (Policies)

6 Months Ended

Jun. 30, 2021

Quarterly Financial Information Disclosure [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements have not been audited. The Condensed Consolidated Balance Sheet as of December 31, 2020, was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”), which we filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 15, 2021. Historical periods presented reflect reclassifications for discontinued operations (see Note 2). In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary to fairly state our results of operations for the three and six months ended June 30, 2021 and 2020; financial position as of June 30, 2021, and December 31, 2020; and cash flows for the six months ended June 30, 2021 and 2020, on a basis consistent with our audited consolidated financial statements other than the adoption of new accounting standards (see Accounting Standards Recently Adopted section below). These adjustments are of a normal recurring nature and are, in the opinion of management, necessary to state fairly the Company’s financial position and operating results for the interim periods.

Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted from the interim financial statements presented in this Quarterly Report. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes included in the 2020 Annual Report. The results for the three and six months ended June 30, 2021, are not necessarily indicative of results for the year ending December 31, 2021, or any other future periods.

Except for per share data or as otherwise indicated, all U.S. dollar amounts and share counts presented in the tables in these Notes to Condensed Consolidated Financial Statements are in thousands.

Accounting Standards Recently Adopted and Not Yet Adopted

Accounting Standards Recently Adopted

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, (“ASU 2019-12”) as part of its initiative to reduce complexity in accounting standards. ASU 2019-12 removes certain exceptions and provides simplification to specific tax items to improve consistent application. This standard was effective for us beginning January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements and related disclosures.

Accounting Standards Not Yet Adopted

In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, (“ASU 2020-06”) which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, ASU 2020-06 simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. In addition, ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for the exception. Further, for the diluted earnings-per-share calculation, the new guidance requires entities to use the if-converted method for all convertible instruments and generally requires entities to include the effect of share settlement for instruments that may be settled in cash or shares, among other things. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted. Either the full or modified retrospective adoption method is allowed. We are currently evaluating the impact on our consolidated financial statements and related disclosures.

In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options, (“ASU 2021-04”) which clarifies the accounting for modifications or exchanges of

freestanding equity-classified written call options that remain equity classified after modification or exchange. Specifically, ASU 2021-04 requires the issuer to treat a modification of an equity-classified warrant as an exchange of the original warrant. The difference between the fair value of the modified warrant and the fair value of the warrant immediately before modification is then recognized as an issuance cost or discount of the related transaction. ASU 2021-04 is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted. ASU 2021-04 should be applied prospectively to modifications or exchanges occurring after the effective date. Either the full or modified retrospective adoption method is allowed. We do not have any equity-classified written call options that would be subject to this guidance. Therefore, we do not expect any impact on our consolidated financial statements and related disclosures.

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Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Summary of Discontinued Operations and Disposal Groups

The following table presents the operating results of the discontinued operations.

	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Net sales	$	71,888	$	155,420
Cost of sales (exclusive of depreciation and amortization shown separately below)	50,331		108,094
Selling, general, and administrative expense	5,619		14,024
Depreciation and amortization	11,874		23,701
Goodwill impairment	—		146,757
Other operating income, net	(6)		(3)
Income (loss) from operations	4,070		(137,153)
Interest expense	12,340		25,610
Other expense (income), net	334		(90)
Loss from discontinued operations before costs of disposal and benefit for income taxes	(8,604)		(162,673)
Benefit for income taxes	5,457		19,644
Loss from discontinued operations before costs of disposal	(3,147)		(143,029)
Costs of disposal of discontinued operations (1)	(1,099)		(1,358)
Benefit for income taxes on costs of disposal	64		91
Loss from discontinued operations, net of tax	$	(4,182)	$	(144,296)

_______________________________

(1)Represents incremental direct costs related to the sale of the Life Sciences business that were incurred prior to the closing of the sale.

The following table summarizes the amount of interest expense related to the previous credit facility that has been reclassified to discontinued operations.

	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Interest on debt	$	11,214	$	23,350
Amortization of debt issuance costs	1,251		2,477
Capitalized interest	(182)		(405)
Other	57		188
Total interest expense of discontinued operations	$	12,340	$	25,610

The following table presents the significant noncash items and cash paid for capital expenditures of discontinued operations for the historical period presented.

	Six Months Ended June 30, 2020
Depreciation and amortization	$	23,701
Goodwill impairment	146,757
Amortization of debt issuance costs	2,477
Acquisition of property, plant and equipment	6,036
Right-of-use assets obtained in exchange for new finance lease liabilities	696
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	6,064

_______________________________

(1) Includes new leases, renewals, and modifications.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

The following tables present results of continuing operations by reportable segment.

	Mobile Solutions		Power Solutions		Corporate and Consolidations			Total
Three Months Ended June 30, 2021
Net sales	$	73,886	$	49,271	$	—	(a)	$	123,157
Income (loss) from operations	2,509		2,875		(6,972)			$	(1,588)
Interest expense								(3,573)
Other								(1,680)
Loss from continuing operations before income taxes and share of net income from joint venture								$	(6,841)
Three Months Ended June 30, 2020
Net sales	$	41,037	$	37,491	$	4	(a)	$	78,532
Income (loss) from operations	(4,592)		1,454		(8,039)			$	(11,177)
Interest expense								(6,356)
Other								1,215
Loss from continuing operations before income taxes and share of net income from joint venture								$	(16,318)

	Mobile Solutions		Power Solutions		Corporate and Consolidations			Total
Six Months Ended June 30, 2021
Net sales	$	151,662	$	98,346	$	(47)	(a)	$	249,961
Income (loss) from operations	8,599		5,307		(14,516)			$	(610)
Interest expense								(5,597)
Other								(7,698)
Loss from continuing operations before income taxes and share of net income from joint venture								$	(13,905)
Six Months Ended June 30, 2020
Net sales	$	110,921	$	83,892	$	(68)	(a)	$	194,745
Goodwill impairment	—		92,942		—			92,942
Loss from operations	(4,328)		(88,880)		(21,819)			$	(115,027)
Interest expense								(10,163)
Other								(329)
Loss from continuing operations before income taxes and share of net income from joint venture								$	(125,519)

_______________________________

(a)Includes elimination of intersegment transactions occurring during the ordinary course of business.

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Inventories (Tables)

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories are comprised of the following amounts:

	June 30, 2021		December 31, 2020
Raw materials	$	27,456	$	22,589
Work in process	25,764		20,758
Finished goods	21,550		19,170
Total inventories	$	74,770	$	62,517

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Intangible Assets, Net (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Carrying Amount of Intangible Assets Net

The following table shows changes in the carrying amount of intangible assets, net, by reportable segment.

	Mobile Solutions		Power Solutions		Total
Balance as of December 31, 2020	$	29,062	$	74,003	$	103,065
Amortization	(1,677)		(5,497)		(7,174)
Balance as of June 30, 2021	$	27,385	$	68,506	$	95,891

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Investment in Joint Venture (Tables)

6 Months Ended

Jun. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Summarized Activity Related to Investment in Joint Venture

The following table shows changes in our investment in the JV.

Balance as of December 31, 2020	$	26,983
Share of earnings	2,614
Foreign currency translation gain	300
Balance as of June 30, 2021	$	29,897

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Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Summary of Debt

The following table presents debt balances as of June 30, 2021, and December 31, 2020.

	June 30, 2021		December 31, 2020
Term Loan Facility	$	149,625	$	—
Senior Secured Term Loan	—		47,728
Incremental Term Loan	—		22,716
International lines of credit and other loans	12,171		14,418
Total principal	161,796		84,862
Less-current maturities of long-term debt	4,808		4,885
Principal, net of current portion	156,988		79,977
Less-unamortized debt issuance costs and discount (1)	6,260		952
Long-term debt, net of current portion	$	150,728	$	79,025

_______________________________

(1) In addition to this amount, costs of $0.8 million related to the ABL Facility were recorded in other non-current assets as of June 30, 2021, and $1.8 million related to the Senior Secured Revolver were recorded in other non-current assets as of December 31, 2020.

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Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Lease, Cost

The following table contains supplemental cash flow information related to leases of continuing operations.

	Six Months Ended June 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in finance leases	$	113	$	94
Operating cash flows used in operating leases	7,221		7,312
Financing cash flows used in finance leases	2,370		936
Right-of-use assets obtained in exchange for new finance lease liabilities	636		710
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	—		9,334

_______________________________

(1) Includes new leases, renewals, and modifications.

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Preferred Stock and Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2021

Temporary Equity Disclosure [Abstract]

Temporary Equity

The following table presents the change in the Series D Preferred Stock carrying value during the six months ended June 30, 2021.

	Six Months Ended June 30, 2021
Beginning balance	$	—
Proceeds from issuance of shares, net of issuance costs	61,793
Fair value of 2021 Warrants issued	(14,839)
Recognition of bifurcated embedded derivative	(282)
Accrual of in-kind dividends	2,123
Amortization	274
Ending balance	$	49,069

The following table presents the change in the Series B Preferred Stock carrying value during the six months ended June 30, 2021.

	Six Months Ended June 30, 2021
Beginning balance	$	105,086
Accrual of in-kind dividends	14,008
Amortization	335
Redemption	(119,429)
Ending balance	$	—

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Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Summary of Revenue from Contracts with Customers

	Three Months Ended June 30, 2021
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
United States and Puerto Rico	$	35,284	$	39,424	$	—	$	74,708
China	13,219		1,282		—		14,501
Brazil	9,985		343		—		10,328
Mexico	4,829		4,349		—		9,178
Germany	1,369		96		—		1,465
Poland	904		3		—		907
Other	8,296		3,774		—		12,070
Total net sales	$	73,886	$	49,271	$	—	$	123,157

	Three Months Ended June 30, 2020
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
United States and Puerto Rico	$	20,237	$	30,859	$	4	$	51,100
China	10,726		1,252		—		11,978
Brazil	2,132		63		—		2,195
Mexico	2,456		4,119		—		6,575
Germany	851		90		—		941
Poland	341		3		—		344
Other	4,294		1,105		—		5,399
Total net sales	$	41,037	$	37,491	$	4	$	78,532

	Six Months Ended June 30, 2021
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
United States and Puerto Rico	$	72,722	$	79,230	$	(47)	$	151,905
China	27,633		2,788		—		30,421
Brazil	19,653		535		—		20,188
Mexico	9,844		7,746		—		17,590
Germany	3,136		260		—		3,396
Poland	2,084		7		—		2,091
Other	16,590		7,780		—		24,370
Total net sales	$	151,662	$	98,346	$	(47)	$	249,961

	Six Months Ended June 30, 2020
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
United States and Puerto Rico	$	57,366	$	69,156	$	(68)	$	126,454
China	18,418		2,409		—		20,827
Brazil	10,715		193		—		10,908
Mexico	7,292		6,262		—		13,554
Germany	3,001		129		—		3,130
Poland	2,099		8		—		2,107
Other	12,030		5,735		—		17,765
Total net sales	$	110,921	$	83,892	$	(68)	$	194,745

The following tables summarize revenue by customer industry. Our products in the automotive industry include high-precision components and assemblies for fuel systems, steering systems, electric motors, transmissions, moldings, stampings, sensors, and electrical contacts. Our products in the general industrial industry include high-precision metal and plastic components for a variety of industrial applications including heating and cooling systems, fluid power systems, power tools, and more. While many of the industries we serve include electrical components, our products in the residential/commercial electrical industry category in the following tables include electrical contact assemblies, precision stampings, welded contact assemblies, and specification plating and surface finishing.

	Three Months Ended June 30, 2021
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
Automotive	$	46,247	$	12,121	$	—	$	58,368
General Industrial	24,449		13,625		—		38,074
Residential/Commercial Electrical	—		16,798		—		16,798
Other	3,190		6,727		—		9,917
Total net sales	$	73,886	$	49,271	$	—	$	123,157

	Three Months Ended June 30, 2020
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
Automotive	$	22,511	$	6,817	$	—	$	29,328
General Industrial	17,178		11,345		—		28,523
Residential/Commercial Electrical	—		12,838		—		12,838
Other	1,348		6,491		4		7,843
Total net sales	$	41,037	$	37,491	$	4	$	78,532

	Six Months Ended June 30, 2021
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
Automotive	$	96,391	$	25,581	$	—	$	121,972
General Industrial	48,759		27,335		—		76,094
Residential/Commercial Electrical	—		31,980		—		31,980
Other	6,512		13,450		(47)		19,915
Total net sales	$	151,662	$	98,346	$	(47)	$	249,961

	Six Months Ended June 30, 2020
	Mobile Solutions		Power Solutions		Intersegment Sales Eliminations		Total
Automotive	$	71,585	$	19,181	$	—	$	90,766
General Industrial	35,157		23,888		—		59,045
Residential/Commercial Electrical	—		26,699		—		26,699
Other	4,179		14,124		(68)		18,235
Total net sales	$	110,921	$	83,892	$	(68)	$	194,745

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Shared-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Components of Share-Based Compensation Expense by Type of Award

The following table lists the components of share-based compensation expense by type of award. 

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Stock options	$	59	$	140	$	148	$	321
Restricted stock	591		936		1,139		1,828
Performance share units	450		335		699		558
Change in estimate of share-based award vesting (1)	(337)		—		(337)		—
Share-based compensation expense	$	763	$	1,411	$	1,649	$	2,707

_______________________________ 

(1)    Amounts reflect the decrease in share-based compensation expense based on the change in estimate of the probability of vesting of share-based awards.

S

Reconciliation of Option Activity

The following table presents stock option activity for the six months ended June 30, 2021.

	Number of Options (in thousands)	Weighted- Average Exercise Price (per share)		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2021	871	$	12.41
Exercised	(6)	7.93
Forfeited or expired	(71)	13.81
Outstanding at June 30, 2021	794	$	12.32	3.6 years	$	—	(1)
Exercisable at June 30, 2021	698	$	12.79	3.0 years	$	—	(1)

_______________________________ 

(1)The aggregate intrinsic value is the sum of intrinsic values for each exercisable individual option grant. The intrinsic value is the amount by which the closing market price of our stock at June 30, 2021, was greater than the exercise price of any individual option grant.

Reconciliation of Restricted Stock Option Activity

The following table presents the status of unvested restricted stock awards as of June 30, 2021, and changes during the six months then ended.

	Nonvested Restricted Shares (in thousands)	Weighted Average Grant-Date Fair Value (per share)
Unvested at January 1, 2021	385	$	9.42
Granted	459	6.84
Vested	(303)	9.34
Forfeited	(65)	7.20
Unvested at June 30, 2021	476	$	7.28

Schedule of Performance Based Awards Goals with Respect to TSR and ROIC

The following table presents the goals with respect to TSR Awards and ROIC Awards granted or modified in 2021.

TSR Awards:	Threshold Performance (50% of Shares)	Target Performance (100% of Shares)	Maximum Performance (150% of Shares)
2021 grants	35th Percentile	50th Percentile	75th Percentile
ROIC Awards:	Threshold Performance (50% of Shares)	Target Performance (100% of Shares)	Maximum Performance (150% of Shares)
2021 grants	6.3%	7.0%	8.6%
2020 grants (1)	6.7%	7.9%	8.7%

_______________________________

(1)The performance levels for 2020 grants were modified by the compensation committee of the board of directors in the first quarter of 2021 to adjust for the sale of the Life Sciences business and the ongoing effects of the COVID-19 pandemic.

Schedule of Number of Awards Granted and Grant Date Fair Value of Each Award in Periods

The following table presents the number of PSUs granted and the grant date fair value in the period presented.

	TSR Awards		ROIC Awards
Award Year	Shares (in thousands)	Grant Date Fair Value (per share)	Shares (in thousands)	Grant Date Fair Value (per share)
2021	142	$8.58	172	$7.20

Summary of Status of Unvested PSU Awards

The following table presents the status of unvested PSUs as of June 30, 2021, and changes during the six months then ended.

	Nonvested TSR Awards			Nonvested ROIC Awards
	Shares (in thousands)	Weighted Average Grant-Date Fair Value (per share)		Shares (in thousands)	Weighted  Average Grant-Date Fair Value (per share)
Nonvested at January 1, 2021	138	$	10.58	160	$	9.13
Granted	142	8.58		172	7.20
Forfeited	(61)	9.61		(71)	8.17
Nonvested at June 30, 2021	219	$	9.55	261	$	8.12

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income

The following tables present the components of accumulated other comprehensive income (“AOCI”).

	Foreign Currency Translation		Interest rate swap		Income taxes (1)		Total
Balance at March 31, 2021	$	(34,228)	$	—	$	—	$	(34,228)
Net other comprehensive income (loss)	4,409		—		—		4,409
Balance at June 30, 2021	$	(29,819)	$	—	$	—	$	(29,819)
Balance at March 31, 2020	$	(49,501)	$	(25,463)	$	5,911	$	(69,053)
Other comprehensive income (loss) before reclassifications	994		(1,635)		380		(261)
Amounts reclassified from AOCI to interest expense (2)	—		3,436		(798)		2,638
Net other comprehensive income (loss)	994		1,801		(418)		2,377
Balance at June 30, 2020	$	(48,507)	$	(23,662)	$	5,493	$	(66,676)

	Foreign Currency Translation		Interest rate swap		Income taxes (1)		Total
Balance at December 31, 2020	$	(30,881)	$	(3,712)	$	861	$	(33,732)
Other comprehensive income (loss) before reclassifications	1,062		—		—		1,062
Amounts reclassified from AOCI to loss on interest rate swap (3)	—		3,712		(861)		2,851
Net current-period other comprehensive income (loss)	1,062		3,712		(861)		3,913
Balance at June 30, 2021	$	(29,819)	$	—	$	—	$	(29,819)
Balance at December 31, 2019	$	(35,159)	$	(12,234)	$	2,839	$	(44,554)
Other comprehensive income (loss) before reclassifications	(13,348)		(16,234)		3,770		(25,812)
Amounts reclassified from AOCI to interest expense (2)	—		4,806		(1,116)		3,690
Net current-period other comprehensive income (loss)	(13,348)		(11,428)		2,654		(22,122)
Balance at June 30, 2020	$	(48,507)	$	(23,662)	$	5,493	$	(66,676)

_______________________

(1) Income tax effect of changes in interest rate swap.

(2) Represents settlements on the interest rate swap while the hedge was effective.

(3) Represents reclassification of derivative loss and settlements after discontinuation of hedge accounting.

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Net Income (Loss) Per Common Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Summary of Net Income (Loss) Per Share

The following table summarizes the computation of basic and diluted net loss per common share.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator:
Loss from continuing operations	$	(5,391)	$	(17,566)	$	(10,304)	$	(125,643)
Less: Preferred stock cumulative dividends and deemed dividends	(2,211)		(3,043)		(16,740)		(5,994)
Numerator for basic and diluted loss from continuing operations per common share (1)	(7,602)		(20,609)		(27,044)		(131,637)
Loss from discontinued operations, net of tax (Note 2)	—		(4,182)		—		(144,296)
Numerator for basic and diluted undistributed net loss per common share (1)	$	(7,602)	$	(24,791)	$	(27,044)	$	(275,933)
Denominator:
Weighted average common shares outstanding	43,067		42,753		42,952		42,671
Adjustment for unvested restricted common stock	(524)		(556)		(450)		(517)
Adjustment for 2021 Warrants outstanding (2)	1,897		—		1,059		—
Shares used to calculate income (loss) per share, basic and diluted	44,440		42,197		43,561		42,154
Per common share net loss:
Basic loss from continuing operations per common share	$	(0.17)	$	(0.49)	$	(0.62)	$	(3.12)
Basic loss from discontinued operations per common share	—		(0.10)		—		(3.43)
Basic net loss per common share	$	(0.17)	$	(0.59)	$	(0.62)	$	(6.55)
Diluted loss from continuing operations per common share	$	(0.17)	$	(0.49)	$	(0.62)	$	(3.12)
Diluted loss from discontinued operations per common share	—		(0.10)		—		(3.43)
Diluted net loss per common share	$	(0.17)	$	(0.59)	$	(0.62)	$	(6.55)
Cash dividends declared per common share	$	—	$	—	$	—	$	—

_______________________________

(1) Preferred Stock does not participate in losses.

(2) Weighted average 2021 Warrants outstanding are included in shares outstanding for calculation of basic earnings per share because they are exercisable at an exercise price of $0.01 per share, subject to certain adjustments (see Note 17).

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table presents securities that could be potentially dilutive in the future that were excluded from the calculation of diluted net loss per common share because they had an anti-dilutive effect.

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Options	825	890	843	890
2019 Warrants	1,500	1,500	1,500	1,500
Series B Preferred Stock, as-converted	—	25,278	—	25,278
	2,325	27,668	2,343	27,668

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Derivative Instruments

The following tables show the liabilities measured at fair value for the above derivatives as of June 30, 2021, and December 31, 2020.

	Fair Value Measurements as of June 30, 2021
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability - other current liabilities	$	—	$	—	$	—
Derivative liability - other non-current liabilities	13,946		—		1,510
Total	$	13,946	$	—	$	1,510

	Fair Value Measurements as of December 31, 2020
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability - other current liabilities	$	—	$	—	$	2,453
Derivative liability - other non-current liabilities	—		—		664
Total	$	—	$	—	$	3,117

The following table presents the change in the above derivatives during the six months ended June 30, 2021.

	Six Months Ended June 30, 2021
Beginning balance	$	3,117
Issuances	15,121
Change in fair value (1)	223
Settlements	(3,005)
Ending balance	$	15,456

_______________________________

(1) Changes in the fair value are recognized in the “Other expense (income), net” line in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Schedule of Interest Rate Derivatives

The following table presents the effect of the interest rate swap on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Interest expense	$	—	$	3,436	$	—	$	4,806
Derivative payments on interest rate swap	—		—		1,717		—
Loss on interest rate swap	—		—		2,033		—

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the liabilities measured at fair value on a recurring basis for the interest rate swap as of December 31, 2020.

	Fair Value Measurements as of December 31, 2020
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability - other current liabilities	$	—	$	11,022	$	—
Derivative liability - other non-current liabilities	—		4,357		—
Total	$	—	$	15,379	$	—

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Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended
	Oct. 06, 2020	Oct. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash paid for post-closing adjustments on sale of business					$ (3,880)	$ 0
Goodwill impairment			$ 0	$ 0	0	92,942
Repayments of debt	$ 700,000
Life Sciences
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Goodwill impairment						$ 146,800
Discontinued Operations, Disposed of by Sale | Life Sciences
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Aggregate purchase price of the stock purchase plan		$ 753,300
Potential earnout payment		70,000
Cash paid for post-closing adjustments on sale of business		$ 757,200			(3,900)
Estimated tax indemnification			$ 1,200		$ 1,200		$ 1,200

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Discontinued Operations - Summary of Major Line Items Included in Results of Operations of Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Goodwill impairment			$ 0	$ 146,757
Loss from discontinued operations, net of tax	$ 0	$ (4,182)	$ 0	(144,296)
Discontinued Operations, Disposed of by Sale | Life Sciences
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales		71,888		155,420
Cost of sales (exclusive of depreciation and amortization shown separately below)		50,331		108,094
Selling, general, and administrative expense		5,619		14,024
Depreciation and amortization		11,874		23,701
Goodwill impairment		0		146,757
Other operating income, net		(6)		(3)
Income (loss) from operations		4,070		(137,153)
Interest expense		12,340		25,610
Other expense (income), net		334		(90)
Loss from discontinued operations before costs of disposal and benefit for income taxes		(8,604)		(162,673)
Benefit for income taxes		5,457		19,644
Loss from discontinued operations before costs of disposal		(3,147)		(143,029)
Costs of disposal of discontinued operations		(1,099)		(1,358)
Benefit for income taxes on costs of disposal		64		91
Loss from discontinued operations, net of tax		$ (4,182)		$ (144,296)

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Discontinued Operations - Interest Expense Reclassified to Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Amortization of debt issuance costs and discount			$ 718	$ 3,348
Total interest expense of discontinued operations	$ 3,573	$ 6,356	$ 5,597	10,163
Life Sciences | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Interest on debt		11,214		23,350
Amortization of debt issuance costs and discount		1,251		2,477
Capitalized interest		(182)		(405)
Other		57		188
Total interest expense of discontinued operations		$ 12,340		$ 25,610

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Discontinued Operations - Summary of Significant Noncash Items and Cash Paid for Capital Expenditures of Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Depreciation and amortization of discontinued operations		$ 0	$ 23,701
Goodwill impairment		0	146,757
Amortization of debt issuance costs and discount		$ 718	3,348
Discontinued Operations, Disposed of by Sale | Life Sciences
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Depreciation and amortization of discontinued operations			23,701
Goodwill impairment	$ 0		146,757
Amortization of debt issuance costs and discount	$ 1,251		2,477
Acquisition of property, plant and equipment			6,036
Right-of-use assets obtained in exchange for new finance lease liabilities			696
Right-of-use assets obtained in exchange for new operating lease liabilities			$ 6,064

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Segment Information - Continuing Operations by Reportable Segment (Detail) $ 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
Number of operating segments | segment			2
Segment Reporting Information [Line Items]
Net sales	$ 123,157	$ 78,532	$ 249,961	$ 194,745
Goodwill impairment	0	0	0	92,942
Income (loss) from operations	(1,588)	(11,177)	(610)	(115,027)
Interest expense	(3,573)	(6,356)	(5,597)	(10,163)
Other	(1,680)	1,215	(7,698)	(329)
Loss before (provision) benefit for income taxes and share of net income from joint venture	(6,841)	(16,318)	(13,905)	(125,519)
Operating Segments | Mobile Solutions
Segment Reporting Information [Line Items]
Net sales	73,886	41,037	151,662	110,921
Goodwill impairment				0
Income (loss) from operations	2,509	(4,592)	8,599	(4,328)
Operating Segments | Power Solutions
Segment Reporting Information [Line Items]
Net sales	49,271	37,491	98,346	83,892
Goodwill impairment				92,942
Income (loss) from operations	2,875	1,454	5,307	(88,880)
Corporate and Eliminations
Segment Reporting Information [Line Items]
Net sales	0	4	(47)	(68)
Goodwill impairment				0
Income (loss) from operations	$ (6,972)	$ (8,039)	$ (14,516)	$ (21,819)

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Segment Information - Additional Information (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Major Customer | Accounts receivable | Customer Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	11.00%	11.00%

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Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 27,456	$ 22,589
Work in process	25,764	20,758
Finished goods	21,550	19,170
Inventories	$ 74,770	$ 62,517

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Goodwill - Additional Information (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
Goodwill [Line Items]
Goodwill impairment	$ 0	$ 0	$ 0	$ 92,942
Goodwill	$ 0		$ 0		$ 0
Power Solutions
Goodwill [Line Items]
Goodwill impairment		$ 92,900

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Intangible Assets, Net - Summary of Carrying Amount of Intangible Assets by Segment (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Finite-lived Intangible Assets [Roll Forward]
Beginning Balance	$ 103,065
Amortization	(7,174)
Ending balance	95,891
Mobile Solutions
Finite-lived Intangible Assets [Roll Forward]
Beginning Balance	29,062
Amortization	(1,677)
Ending balance	27,385
Power Solutions
Finite-lived Intangible Assets [Roll Forward]
Beginning Balance	74,003
Amortization	(5,497)
Ending balance	$ 68,506

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Investment in Joint Venture - Additional Information (Detail)	Jun. 30, 2021
Wuxi Weifu Autocam Precision Machinery Company, Ltd.
Schedule of Equity Method Investments [Line Items]
Investment in joint venture	49.00%

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Investment in Joint Venture - Summarized Activity Related to Investment in Joint Venture (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Equity Method Investments [Roll Forward]
Beginning Balance			$ 26,983
Share of earnings	$ 1,219	$ 927	2,614	$ 656
Ending Balance	29,897		29,897
Joint Venture
Equity Method Investments [Roll Forward]
Beginning Balance			26,983
Share of earnings			2,614
Foreign currency translation gain			300
Ending Balance	$ 29,897		$ 29,897

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Income Taxes - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Effective tax rate from continuing operations	3.40%	(13.30%)	7.10%	(0.60%)
Effective income tax rate reconciliation, at federal statutory income tax rate, percent			21.00%

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Debt - Additional Information (Detail) - USD ($)		3 Months Ended		6 Months Ended
	Mar. 22, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Debt issuance costs, line of credit arrangements, net		$ 800,000		$ 800,000		$ 1,800,000
Cash settlements for interest rate swaps				15,420,000	$ 0
Capitalized interest costs		(100,000)	$ (100,000)	(100,000)	(100,000)
Loss on extinguishment of debt and write-off of debt issuance costs		0	$ 0	$ 2,390,000	$ 0
Interest Rate Swap
Debt Instrument [Line Items]
Cash settlements for interest rate swaps	$ 13,700,000
Term Loan Facility
Debt Instrument [Line Items]
Borrowings	$ 150,000,000.0
Interest rate during period				7.875%
Principal payment amount				$ 400,000
Issuance discount		3,800,000		3,800,000
Debt issuance costs		2,800,000		2,800,000
Outstanding borrowings		149,625,000		$ 149,625,000		0
Term Loan Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Applicable margin	6.875%
Term Loan Facility | London Interbank Offered Rate (LIBOR) | Minimum
Debt Instrument [Line Items]
Applicable margin	1.00%
Term Loan Facility | Various Benchmark Rates
Debt Instrument [Line Items]
Applicable margin	5.875%
ABL Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 50,000,000.0
Interest rate during period				2.25%
Debt instrument, LIBOR floor rate	0.50%
Unused capacity, commitment fee percentage				0.375%
Outstanding borrowings		0		$ 0
Available capacity		44,200,000		44,200,000
Remaining borrowing capacity		30,200,000		30,200,000
Debt issuance costs, line of credit arrangements, net		$ 800,000		$ 800,000
ABL Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Applicable margin				1.75%
ABL Facility | London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Applicable margin	2.00%
ABL Facility | Federal Funds Or Prime Rate | Minimum
Debt Instrument [Line Items]
Applicable margin	0.75%
ABL Facility | Federal Funds Or Prime Rate | Maximum
Debt Instrument [Line Items]
Applicable margin	1.00%
Senior Secured Term Loan
Debt Instrument [Line Items]
Interest rate during period				6.50%
Debt instrument, LIBOR floor rate		0.75%		0.75%
Outstanding borrowings		$ 0		$ 0		47,728,000
Senior Secured Term Loan | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Applicable margin				5.75%
Incremental Term Loan
Debt Instrument [Line Items]
Interest rate during period				5.90%
Outstanding borrowings		$ 0		$ 0		$ 22,716,000
Incremental Term Loan | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Applicable margin				5.75%
Senior Secured Revolver
Debt Instrument [Line Items]
Unused capacity, commitment fee percentage				0.50%
Senior Secured Revolver | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Applicable margin				4.00%
Senior Secured Revolver | Prime Rate
Debt Instrument [Line Items]
Applicable margin				3.00%
Letters of credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 30,000,000.0
Unused capacity, commitment fee percentage				0.125%
Swingline loans
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 5,000,000.0

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Debt - Summary of Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total principal	$ 161,796	$ 84,862
Less-current maturities of long-term debt	4,808	4,885
Principal, net of current portion	156,988	79,977
Less-unamortized debt issuance costs	6,260	952
Long-term debt, net of current portion	150,728	79,025
Debt issuance costs, line of credit arrangements, net	800	1,800
Term Loan Facility
Debt Instrument [Line Items]
Term loans	149,625	0
Senior Secured Term Loan
Debt Instrument [Line Items]
Term loans	0	47,728
Incremental Term Loan
Debt Instrument [Line Items]
Term loans	0	22,716
Foreign Line of Credit
Debt Instrument [Line Items]
International lines of credit and other loans	$ 12,171	$ 14,418

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Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in finance leases	$ 113	$ 94
Operating cash flows used in operating leases	7,221	7,312
Financing cash flows used in finance leases	2,370	936
Right-of-use assets obtained in exchange for new finance lease liabilities	636	710
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 0	$ 9,334

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Leases - Narrative (Details) $ in Millions	1 Months Ended
	Mar. 31, 2020 USD ($)
Leases [Abstract]
Increase (decrease) in operating lease, right-of-use asset	$ (8.1)
Decrease in operating lease, liability, noncurrent	10.5
Decrease in operating lease, liability, current	0.6
Increase (decrease) in change between operating lease right-of-use assets and operating lease, liabilities	3.0
Loss on termination of lease	4.4
Impairment charge on termination of lease	$ 2.9

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Commitments and Contingencies - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions	Nov. 01, 2019	Jun. 30, 2021
Loss Contingencies [Line Items]
Stock issued during period, shares, new issues (in shares)	14.4
Maximum
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss		$ 5.0

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Preferred Stock and Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			6 Months Ended
	Mar. 22, 2026	Mar. 22, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Apr. 15, 2020
Temporary Equity [Line Items]
Proceeds from issuance of preferred stock			$ 61,793	$ 0
Series C Junior Participating Preferred Stock | Common Stock
Temporary Equity [Line Items]
Purchase right, number of shares called by each right (in shares)						1
Series D Preferred Stock
Temporary Equity [Line Items]
Class of warrant or right, number of securities called by warrants or rights (in shares)		1,900,000
Class of warrant or right, exercise price of warrants or rights (in dollars per share)		$ 0.01
Temporary equity, liquidation preference per share (in dollars per share)		$ 1,000
Temporary equity, dividend rate, percentage		10.00%
Increase in dividend rate if no cash dividends paid		12.00%
Carrying value			49,069		$ 0
Accrual of in-kind dividends			2,123
Proceeds from issuance of preferred stock		$ 61,800
Temporary Equity Dividends Unpaid Deemed			$ 2,400
Series D Preferred Stock | Forecast
Temporary Equity [Line Items]
Annual increase in dividend rate	2.50%
Series D Preferred Stock | Private Placement
Temporary Equity [Line Items]
Sale of stock, number of shares issued in transaction (in shares)		65,000
Temporary equity, par value (in dollars per share)		$ 0.01
Sale of stock, price per share (in dollars per share)		$ 1,000
Series B Preferred Stock
Temporary Equity [Line Items]
Class of warrant or right, exercise price of warrants or rights (in dollars per share)					$ 12.00
Temporary equity, liquidation preference per share (in dollars per share)			$ 1,000
Temporary equity, dividend rate, percentage			10.625%
Carrying value			$ 0		$ 105,086
Accrual of in-kind dividends			14,008
Temporary Equity Dividends Unpaid Deemed			$ 14,300

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Preferred Stock and Stockholders' Equity - Carrying Value Roll Forward (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Series D Preferred Stock
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning balance	$ 0
Proceeds from issuance of shares, net of issuance costs	61,793
Fair value of 2021 Warrants issued	(14,839)
Recognition of bifurcated embedded derivative	(282)
Accrual of in-kind dividends	2,123
Amortization	274
Ending balance	49,069
Series B Preferred Stock
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning balance	105,086
Accrual of in-kind dividends	14,008
Amortization	335
Redemption	(119,429)
Ending balance	$ 0

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Revenue from Contracts with Customers - Summary of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue, Major Customer [Line Items]
Net sales	$ 123,157	$ 78,532	$ 249,961	$ 194,745
Automotive
Revenue, Major Customer [Line Items]
Net sales	58,368	29,328	121,972	90,766
General Industrial
Revenue, Major Customer [Line Items]
Net sales	38,074	28,523	76,094	59,045
Residential/Commercial Electrical
Revenue, Major Customer [Line Items]
Net sales	16,798	12,838	31,980	26,699
Other
Revenue, Major Customer [Line Items]
Net sales	9,917	7,843	19,915	18,235
United States and Puerto Rico
Revenue, Major Customer [Line Items]
Net sales	74,708	51,100	151,905	126,454
China
Revenue, Major Customer [Line Items]
Net sales	14,501	11,978	30,421	20,827
Brazil
Revenue, Major Customer [Line Items]
Net sales	10,328	2,195	20,188	10,908
Mexico
Revenue, Major Customer [Line Items]
Net sales	9,178	6,575	17,590	13,554
Germany
Revenue, Major Customer [Line Items]
Net sales	1,465	941	3,396	3,130
Poland
Revenue, Major Customer [Line Items]
Net sales	907	344	2,091	2,107
Other
Revenue, Major Customer [Line Items]
Net sales	12,070	5,399	24,370	17,765
Operating Segments | Mobile Solutions
Revenue, Major Customer [Line Items]
Net sales	73,886	41,037	151,662	110,921
Operating Segments | Mobile Solutions | Automotive
Revenue, Major Customer [Line Items]
Net sales	46,247	22,511	96,391	71,585
Operating Segments | Mobile Solutions | General Industrial
Revenue, Major Customer [Line Items]
Net sales	24,449	17,178	48,759	35,157
Operating Segments | Mobile Solutions | Residential/Commercial Electrical
Revenue, Major Customer [Line Items]
Net sales	0	0	0	0
Operating Segments | Mobile Solutions | Other
Revenue, Major Customer [Line Items]
Net sales	3,190	1,348	6,512	4,179
Operating Segments | Mobile Solutions | United States and Puerto Rico
Revenue, Major Customer [Line Items]
Net sales	35,284	20,237	72,722	57,366
Operating Segments | Mobile Solutions | China
Revenue, Major Customer [Line Items]
Net sales	13,219	10,726	27,633	18,418
Operating Segments | Mobile Solutions | Brazil
Revenue, Major Customer [Line Items]
Net sales	9,985	2,132	19,653	10,715
Operating Segments | Mobile Solutions | Mexico
Revenue, Major Customer [Line Items]
Net sales	4,829	2,456	9,844	7,292
Operating Segments | Mobile Solutions | Germany
Revenue, Major Customer [Line Items]
Net sales	1,369	851	3,136	3,001
Operating Segments | Mobile Solutions | Poland
Revenue, Major Customer [Line Items]
Net sales	904	341	2,084	2,099
Operating Segments | Mobile Solutions | Other
Revenue, Major Customer [Line Items]
Net sales	8,296	4,294	16,590	12,030
Operating Segments | Power Solutions
Revenue, Major Customer [Line Items]
Net sales	49,271	37,491	98,346	83,892
Operating Segments | Power Solutions | Automotive
Revenue, Major Customer [Line Items]
Net sales	12,121	6,817	25,581	19,181
Operating Segments | Power Solutions | General Industrial
Revenue, Major Customer [Line Items]
Net sales	13,625	11,345	27,335	23,888
Operating Segments | Power Solutions | Residential/Commercial Electrical
Revenue, Major Customer [Line Items]
Net sales	16,798	12,838	31,980	26,699
Operating Segments | Power Solutions | Other
Revenue, Major Customer [Line Items]
Net sales	6,727	6,491	13,450	14,124
Operating Segments | Power Solutions | United States and Puerto Rico
Revenue, Major Customer [Line Items]
Net sales	39,424	30,859	79,230	69,156
Operating Segments | Power Solutions | China
Revenue, Major Customer [Line Items]
Net sales	1,282	1,252	2,788	2,409
Operating Segments | Power Solutions | Brazil
Revenue, Major Customer [Line Items]
Net sales	343	63	535	193
Operating Segments | Power Solutions | Mexico
Revenue, Major Customer [Line Items]
Net sales	4,349	4,119	7,746	6,262
Operating Segments | Power Solutions | Germany
Revenue, Major Customer [Line Items]
Net sales	96	90	260	129
Operating Segments | Power Solutions | Poland
Revenue, Major Customer [Line Items]
Net sales	3	3	7	8
Operating Segments | Power Solutions | Other
Revenue, Major Customer [Line Items]
Net sales	3,774	1,105	7,780	5,735
Intersegment Sales Eliminations
Revenue, Major Customer [Line Items]
Net sales	0	4	(47)	(68)
Intersegment Sales Eliminations | Automotive
Revenue, Major Customer [Line Items]
Net sales	0	0	0	0
Intersegment Sales Eliminations | General Industrial
Revenue, Major Customer [Line Items]
Net sales	0	0	0	0
Intersegment Sales Eliminations | Residential/Commercial Electrical
Revenue, Major Customer [Line Items]
Net sales	0	0	0	0
Intersegment Sales Eliminations | Other
Revenue, Major Customer [Line Items]
Net sales	0	4	(47)	(68)
Intersegment Sales Eliminations | United States and Puerto Rico
Revenue, Major Customer [Line Items]
Net sales	0	4	(47)	(68)
Intersegment Sales Eliminations | China
Revenue, Major Customer [Line Items]
Net sales	0	0	0	0
Intersegment Sales Eliminations | Brazil
Revenue, Major Customer [Line Items]
Net sales	0	0	0	0
Intersegment Sales Eliminations | Mexico
Revenue, Major Customer [Line Items]
Net sales	0	0	0	0
Intersegment Sales Eliminations | Germany
Revenue, Major Customer [Line Items]
Net sales	0	0	0	0
Intersegment Sales Eliminations | Poland
Revenue, Major Customer [Line Items]
Net sales	0	0	0	0
Intersegment Sales Eliminations | Other
Revenue, Major Customer [Line Items]
Net sales	$ 0	$ 0	$ 0	$ 0

XML

Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue, Major Customer [Line Items]
Net sales	$ 123,157	$ 78,532	$ 249,961	$ 194,745
Major Customer
Revenue, Major Customer [Line Items]
Net sales	$ 13,200	$ 9,200	$ 26,200
Major Customer | Customer Concentration Risk | Sales Revenue, Net
Revenue, Major Customer [Line Items]
Concentration risk, percentage	11.00%	12.00%	11.00%

XML

Shared-Based Compensation - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 763	$ 1,411	$ 1,649	$ 2,707
Discontinued Operations
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation		200		400
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	591	936	$ 1,139	1,828
Stock units issued (in shares)			459
Total grant-date fair value of restricted stock, vested			$ 2,800
TSR Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock units issued (in shares)			142
Award performance period			36 months
Percentage of shares issuable based on threshold performance			50.00%
Percentage of shares issuable based on target performance			100.00%
Percentage of shares issuable based on maximum performance			150.00%
ROIC Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock units issued (in shares)			172
Percentage of shares issuable based on target performance			100.00%
Change in estimate of share-based award vesting (1)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ (337)	$ 0	$ (337)	$ 0
Employees | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards granted vesting period			3 years
Non-executive Directors | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards granted vesting period			1 year

XML

Shared-Based Compensation - Components of Share-Based Compensation Expense by Type of Award (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 763	$ 1,411	$ 1,649	$ 2,707
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	59	140	148	321
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	591	936	1,139	1,828
Performance share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	450	335	699	558
Change in estimate of share-based award vesting (1)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ (337)	$ 0	$ (337)	$ 0

XML

Shared-Based Compensation - Reconciliation of Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2021
Number of Options (in thousands)
Beginning balance (in shares)	871
Forfeitures or expired (in shares)	(71)
Ending balance (in shares)	794
Options exercisable (in shares)	698
Weighted- Average Exercise Price (per share)
Beginning balance (in dollars per share)	$ 12.41
Forfeitures or expired (in dollars per share)	13.81
Ending balance (in dollars per share)	12.32
Options exercisable (in dollars per share)	$ 12.79
Weighted- Average Remaining Contractual Term
Outstanding	3 years 7 months 6 days
Options exercisable	3 years
Aggregate Intrinsic Value
Outstanding	$ 0
Options exercisable	$ 0
Exercised (in dollars per share)	$ 7.93
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	(6)

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Shared-Based Compensation - Reconciliation of Restricted Stock Option Activity (Detail) shares in Thousands	6 Months Ended
	Jun. 30, 2021 $ / shares shares
Restricted stock
Nonvested Shares (in thousands)
Nonvested restricted shares, beginning balance (in shares) | shares	385
Nonvested restricted shares, granted (in shares) | shares	459
Nonvested restricted shares, vested (in shares) | shares	(303)
Nonvested restricted shares, forfeited (in shares) | shares	(65)
Nonvested restricted shares, ending balance (in shares) | shares	476
Weighted Average Grant-Date Fair Value (per share)
Beginning balance (in dollars per share) | $ / shares	$ 9.42
Granted (in dollars per share) | $ / shares	6.84
Vested (in dollars per share) | $ / shares	9.34
Forfeited (in dollars per share) | $ / shares	7.20
Ending balance (in dollars per share) | $ / shares	$ 7.28
TSR Awards
Nonvested Shares (in thousands)
Nonvested restricted shares, beginning balance (in shares) | shares	138
Nonvested restricted shares, granted (in shares) | shares	142
Nonvested restricted shares, forfeited (in shares) | shares	(61)
Nonvested restricted shares, ending balance (in shares) | shares	219
Weighted Average Grant-Date Fair Value (per share)
Beginning balance (in dollars per share) | $ / shares	$ 10.58
Granted (in dollars per share) | $ / shares	8.58
Forfeited (in dollars per share) | $ / shares	9.61
Ending balance (in dollars per share) | $ / shares	$ 9.55
ROIC Awards
Nonvested Shares (in thousands)
Nonvested restricted shares, beginning balance (in shares) | shares	160
Nonvested restricted shares, granted (in shares) | shares	172
Nonvested restricted shares, forfeited (in shares) | shares	(71)
Nonvested restricted shares, ending balance (in shares) | shares	261
Weighted Average Grant-Date Fair Value (per share)
Beginning balance (in dollars per share) | $ / shares	$ 9.13
Granted (in dollars per share) | $ / shares	7.20
Forfeited (in dollars per share) | $ / shares	8.17
Ending balance (in dollars per share) | $ / shares	$ 8.12

XML

Shared-Based Compensation - Schedule of Performance Based Awards Goals with Respect to TSR and ROIC (Detail)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
TSR Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold performance, percentage	35.00%
Target performance, percentage	50.00%
Maximum performance, percentage	75.00%
ROIC Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold performance, percentage	6.30%	6.70%
Target performance, percentage	7.00%	7.90%
Maximum performance, percentage	8.60%	8.70%

XML

Shared-Based Compensation - Summary of Number of Awards Granted and Grand Date Fair Value (Detail) shares in Thousands	6 Months Ended
	Jun. 30, 2021 $ / shares shares
TSR Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-option equity instruments, outstanding (in shares) | shares	142
Grant Date Fair Value (in dollars per share) | $ / shares	$ 8.58
ROIC Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-option equity instruments, outstanding (in shares) | shares	172
Grant Date Fair Value (in dollars per share) | $ / shares	$ 7.20

XML

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 234,755	$ 78,902	$ 254,152	$ 353,277
OCI before reclassifications, net of tax		(261)	1,062	(25,812)
Net other comprehensive income (loss), net of tax	4,409	2,377	3,913	(22,122)
Ending balance	232,355	57,899	232,355	57,899
Derivative
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from AOCI, tax			(861)
Interest Expense
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from AOCI, net of tax		2,638		3,690
Accumulated other comprehensive income (loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(34,228)	(69,053)	(33,732)	(44,554)
Ending balance	(29,819)	(66,676)	(29,819)	(66,676)
Accumulated other comprehensive income (loss) | Derivative
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from AOCI, net of tax			2,851
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(34,228)	(49,501)	(30,881)	(35,159)
OCI before reclassifications and tax		994	1,062	(13,348)
Net other comprehensive income (loss), before tax	4,409	994	1,062	(13,348)
Ending balance	(29,819)	(48,507)	(29,819)	(48,507)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Derivative
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from AOCI, before tax			0
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Interest Expense
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from AOCI, before tax		0		0
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	0	(25,463)	(3,712)	(12,234)
OCI before reclassifications and tax		(1,635)	0	(16,234)
Net other comprehensive income (loss), before tax	0	1,801	3,712	(11,428)
Ending balance	0	(23,662)	0	(23,662)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Derivative | Interest Rate Swap
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from AOCI, before tax			3,712
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Interest Expense
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from AOCI, before tax		3,436		4,806
Income taxes
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	0	5,911	861	2,839
OCI before reclassifications, tax		380	0	3,770
Net other comprehensive income (loss), tax	0	(418)	(861)	2,654
Ending balance	$ 0	5,493	$ 0	5,493
Income taxes | Interest Expense
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amounts reclassified from AOCI, tax		$ (798)		$ (1,116)

XML

Net Income (Loss) Per Common Share - Summary of Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Weighted Average Number of Shares Issued, Basic	43,067	42,753	42,952	42,671
Loss from continuing operations	$ (5,391)	$ (17,566)	$ (10,304)	$ (125,643)
Less: Preferred stock cumulative dividends and deemed dividends	(2,211)	(3,043)	(16,740)	(5,994)
Numerator for basic income (loss) from continuing operations per common share	(7,602)	(20,609)	(27,044)	(131,637)
Numerator for diluted income (loss) from continuing operations per common share	(7,602)	(20,609)	(27,044)	(131,637)
Loss from discontinued operations, net of tax (Note 2)	0	(4,182)	0	(144,296)
Numerator for basic undistributed net loss per common share	(7,602)	(24,791)	(27,044)	(275,933)
Numerator for diluted undistributed net loss per common share	$ (7,602)	$ (24,791)	$ (27,044)	$ (275,933)
Weighted Average Number of Shares, Restricted Stock	(524)	(556)	(450)	(517)
Weighted average common shares outstanding, diluted (in shares)	44,440	42,197	43,561	42,154
Basic loss from continuing operations per common share (in dollars per share)	$ (0.17)	$ (0.49)	$ (0.62)	$ (3.12)
Basic loss from discontinuing operations per common share (in dollars per share)	0	(0.10)	0	(3.43)
Basic net loss per share (in dollars per share)	(0.17)	(0.59)	(0.62)	(6.55)
Diluted loss from continuing operations per common share (in dollars per share)	(0.17)	(0.49)	(0.62)	(3.12)
Diluted loss from discontinuing operations per common share (in dollars per share)	0	(0.10)	0	(3.43)
Diluted net loss per share (in dollars per share)	(0.17)	(0.59)	(0.62)	(6.55)
Cash dividends declared per share (in dollars per share)	$ 0	$ 0	$ 0	$ 0
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants	1,897	0	1,059	0
Weighted Average Number of Shares Outstanding, Basic and Diluted	44,440	42,197	43,561	42,154

XML

Net Income (Loss) Per Common Share - Antidilutive Securities Excluded from Computation (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	2,325	27,668	2,343	27,668
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	825	890	843	890
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	1,500	1,500	1,500	1,500
Series B Preferred Stock, as-converted
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	25,278	0	25,278

XML

Net Income (Loss) Per Common Share - Additional Information (Detail) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, minimum price range (in dollars per share)	$ 7.93	$ 7.93	$ 7.93	$ 7.93
Anti dilutive securities excluded from computation of earnings per share, maximum price range (in dollars per share)	$ 25.16	$ 25.16	$ 25.16	$ 25.16

XML

Fair Value Measurements - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended	6 Months Ended
	Mar. 22, 2021	Mar. 31, 2021	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Jul. 22, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants term				4 years 2 months 12 days			2 years 4 months 24 days
Cash settlements for interest rate swaps				$ 15,420	$ 0
Foreign Line of Credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
International lines of credit and other loans				12,171			$ 14,418
Significant Other Observable Inputs (Level 2) | Foreign Line of Credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value				$ 12,200			$ 14,400
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change-in-control put feature				1.00%
Preferred stock remaining in future periods, probability percentage			2.00%
Probability percentage of leverage ratio put being exercisable			1.00%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change-in-control put feature				10.00%
Preferred stock remaining in future periods, probability percentage			3.00%
Probability percentage of leverage ratio put being exercisable			10.00%
Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, fixed interest rate						1.291%	2.4575%
Cash settlements for interest rate swaps	$ 13,700
Series B Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Dividends withholdings net cash distribution		$ 3,000
Dividends withholdings offset from purchasers upon redemption				$ 1,000
Class of warrant or right, exercise price of warrants or rights (in dollars per share)							$ 12.00
Adjusted exercise price of warrants or rights (in dollars per share)				$ 11.49
Series D Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Class of warrant or right, exercise price of warrants or rights (in dollars per share)	$ 0.01
Liquidation preference	140.00%

XML

Fair Value Measurements - Liabilities Measure at Fair Value Preferred Stock (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability, fair value, gross liability	$ 13,946	$ 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Current Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability, fair value, gross liability	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Noncurrent Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability, fair value, gross liability	13,946	0
Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability, fair value, gross liability	0	0
Significant Other Observable Inputs (Level 2) | Other Current Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability, fair value, gross liability	0	0
Significant Other Observable Inputs (Level 2) | Other Noncurrent Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability, fair value, gross liability	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability, fair value, gross liability	1,510	3,117
Significant Unobservable Inputs (Level 3) | Other Current Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability, fair value, gross liability	0	2,453
Significant Unobservable Inputs (Level 3) | Other Noncurrent Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability, fair value, gross liability	$ 1,510	$ 664

XML

Fair Value Measurements - Roll Forward of Preferred Stock Derivative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 3,117
Issuances	15,121
Change in fair value	223
Settlements	(3,005)
Ending balance	$ 15,456

XML

Fair Value Measurements - Effect of Interest Rate Swap (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative [Line Items]
Interest expense	$ 3,573	$ 6,356	$ 5,597	$ 10,163
Derivative payments on interest rate swap	0	0	1,717	0
Loss on interest rate swap	0	0	2,033	0
Interest Rate Swap
Derivative [Line Items]
Interest expense	$ 0	$ 3,436	$ 0	$ 4,806

XML

Fair Value Measurements - Interest Rate Swap (Details) - Fair Value, Measurements, Recurring - Interest Rate Swap $ in Thousands	Dec. 31, 2020 USD ($)
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability - other current liabilities	$ 0
Derivative liability - other non-current liabilities	0
Total	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability - other current liabilities	11,022
Derivative liability - other non-current liabilities	4,357
Total	15,379
Significant Unobservable Inputs (Level 3)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability - other current liabilities	0
Derivative liability - other non-current liabilities	0
Total	$ 0

XML

Subsequent Events (Details) - Interest Rate Swap - USD ($) $ in Millions	Jul. 22, 2021	Dec. 31, 2020
Subsequent Event [Line Items]
Derivative, notional amount	$ 60.0
Derivative, fixed interest rate	1.291%	2.4575%