10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2015

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

Commission file number:  1-4743

Standard Motor Products, Inc.

(Exact name of registrant as specified in its charter)

New York	11-1362020
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

37-18 Northern Blvd., Long Island City, N.Y.	11101
(Address of principal executive offices)	(Zip Code)

(718) 392-0200

(Registrant’s telephone number, including area code)

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).

Yes ☑      No ☐

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

Large Accelerated Filer þ	Accelerated Filer ☐
Non-Accelerated Filer    o (Do not check if a smaller reporting company)	Smaller reporting company   ☐

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 the close of business on April 30, 2015, there were 22,986,865 outstanding shares of the registrant’s Common Stock, par value $2.00 per share.

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

INDEX

PART I - FINANCIAL INFORMATION

		Page No.
Item 1.	Consolidated Financial Statements:
	Consolidated Statements of Operations (Unaudited)for the Three Months Ended March 31, 2015 and 2014	3
	Consolidated Statements of Comprehensive Income (Unaudited)for the Three Months Ended March 31, 2015 and 2014	4
	Consolidated Balance Sheets as of March 31, 2015 (Unaudited) and December 31, 2014	5
	Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2015 and 2014	6
	Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)for the Three Months Ended March 31, 2015	7
	Notes to Consolidated Financial Statements (Unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	33
Item 4.	Controls and Procedures	34
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 6.	Exhibits	36
Signatures		36

2

PART I - FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except share and per share data)	Three Months Ended March 31,
	2015			2014
	(Unaudited)
Net sales	$	227,589		$	232,752
Cost of sales		163,700			164,842
Gross profit		63,889			67,910
Selling, general and administrative expenses		49,198			47,594
Restructuring and integration expenses		57			171
Other income, net		281			260
Operating income		14,915			20,405
Other non-operating income (expense), net		151			(413	)
Interest expense		426			308
Earnings from continuing operations before taxes		14,640			19,684
Provision for income taxes		5,301			7,277
Earnings from continuing operations		9,339			12,407
Loss from discontinued operations, net of income taxes		(391	)		(682	)
Net earnings	$	8,948		$	11,725
Net earnings per common share – Basic:
Earnings from continuing operations	$	0.41		$	0.54
Discontinued operations		(0.02	)		(0.03	)
Net earnings per common share – Basic	$	0.39		$	0.51
Net earnings per common share – Diluted:
Earnings from continuing operations	$	0.40		$	0.53
Discontinued operations		(0.01	)		(0.03	)
Net earnings per common share – Diluted	$	0.39		$	0.50
Dividends declared per share	$	0.15		$	0.13
Average number of common shares		22,910,889			22,947,241
Average number of common shares and dilutive common shares		23,238,050			23,224,698

See accompanying notes to consolidated financial statements (unaudited).

3

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended March 31,
(In thousands)	2015			2014
	(Unaudited)
Net earnings	$	8,948		$	11,725
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(3,074	)		(590	)
Pension and postretirement plans:
Amortization of:
Prior service benefit		(29	)		(754	)
Unrecognized loss		618			592
Foreign currency exchange rate changes		8			(22	)
Income tax (expense) benefit related to pension and postretirement plans		(241	)		58
Pension and postretirement plans, net of tax		356			(126	)
Total other comprehensive income (loss), net of tax		(2,718	)		(716	)
Comprehensive income	$	6,230		$	11,009

See accompanying notes to consolidated financial statements (unaudited).

4

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)	March 31, 2015			December 31, 2014
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	8,119		$	13,728
Accounts receivable, less allowances for discounts and doubtful accounts of $6,567 and $6,369 for 2015 and 2014, respectively		150,736			126,524
Inventories		283,701			278,051
Deferred income taxes		36,509			36,534
Prepaid expenses and other current assets		9,110			11,196
Total current assets		488,175			466,033
Property, plant and equipment, net		65,065			64,611
Goodwill		54,883			54,975
Other intangibles, net		32,863			34,402
Deferred income taxes		14,677			14,941
Other assets		39,032			38,589
Total assets	$	694,695		$	673,551
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Notes payable	$	71,567		$	56,558
Current portion of long-term debt		122			175
Accounts payable		76,889			70,674
Sundry payables and accrued expenses		43,237			49,412
Accrued customer returns		35,814			30,621
Accrued rebates		23,950			26,076
Payroll and commissions		13,443			17,313
Total current liabilities		265,022			250,829
Long-term debt		72			83
Other accrued liabilities		15,653			15,024
Accrued asbestos liabilities		33,399			33,462
Total liabilities		314,146			299,398
Commitments and contingencies
Stockholders’ equity:
Common stock – par value $2.00 per share:
Authorized – 30,000,000 shares; issued 23,936,036 shares		47,872			47,872
Capital in excess of par value		93,109			91,411
Retained earnings		264,674			259,160
Accumulated other comprehensive income		(5,370	)		(2,652	)
Treasury stock – at cost (951,396 shares and 1,043,064 shares in 2015 and 2014, respectively)		(19,736	)		(21,638	)
Total stockholders’ equity		380,549			374,153
Total liabilities and stockholders’ equity	$	694,695		$	673,551

See accompanying notes to consolidated financial statements (unaudited).

5

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)	Three Months Ended March 31,
	2015			2014
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	8,948		$	11,725
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization		4,288			4,084
Amortization of deferred financing cost		174			175
Increase to allowance for doubtful accounts		180			152
Increase to inventory reserves		238			508
Amortization of deferred gain on sale of building		(262	)		(262	)
Equity (income) loss from joint ventures		(390	)		53
Employee stock ownership plan allocation		552			457
Stock-based compensation		1,319			972
Excess tax benefits related to exercise of  employee stock grants		(38	)		(36	)
Increase in deferred income taxes		(64	)		(335	)
Loss on discontinued operations, net of tax		391			682
Change in assets and liabilities:
Increase in accounts receivable		(25,289	)		(852	)
Increase in inventories		(7,473	)		(12,715	)
Decrease in prepaid expenses and other current assets		3,620			2,044
Increase in accounts payable		5,255			9,310
Decrease in sundry payables and accrued expenses		(6,287	)		(5,971	)
Net changes in other assets and liabilities		675			(759	)
Net cash provided by (used in) operating activities		(14,163	)		9,232
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of and investments in businesses		—			(12,225	)
Capital expenditures		(4,009	)		(2,763	)
Other investing activities		26			—
Net cash used in investing activities		(3,983	)		(14,988	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under line-of-credit agreements		15,009			11,616
Principal payments of long-term debt and capital lease obligations		(63	)		(32	)
Purchase of treasury stock		—			(4,526	)
Increase in overdraft balances		1,536			947
Proceeds from exercise of employee stock options		35			66
Excess tax benefits related to the exercise of employee stock grants		38			36
Dividends paid		(3,434	)		(2,984	)
Net cash provided by financing activities		13,121			5,123
Effect of exchange rate changes on cash		(584	)		(503	)
Net decrease in cash and cash equivalents		(5,609	)		(1,136	)
CASH AND CASH EQUIVALENTS at beginning of period		13,728			5,559
CASH AND CASH EQUIVALENTS at end of period	$	8,119		$	4,423
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	245		$	110
Income taxes	$	1,892		$	2,474

See accompanying notes to consolidated financial statements (unaudited).

6

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

Three Months Ended March 31, 2015

(Unaudited)

	Common Stock		Capital in Excess of Par Value			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
(In thousands)
Balance at December 31, 2014	$	47,872	$	91,411		$	259,160		$	(2,652	)	$	(21,638	)	$	374,153
Net earnings		—		—			8,948			—			—			8,948
Other comprehensive income (loss), net of tax		—		—			—			(2,718	)		—			(2,718	)
Cash dividends paid		—		—			(3,434	)		—			—			(3,434	)
Stock-based compensation and related tax benefits		—		698			—			—			630			1,328
Stock options exercised and related tax benefits		—		(1	)		—			—			65			64
Employee Stock Ownership Plan		—		1,001			—			—			1,207			2,208
Balance at March 31, 2015	$	47,872	$	93,109		$	264,674		$	(5,370	)	$	(19,736	)	$	380,549

See accompanying notes to consolidated financial statements (unaudited).

7

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1. Basis of Presentation

Standard Motor Products, Inc. and subsidiaries (referred to as the “Company,” “we,” “us,” or “our”) is engaged in the manufacture and distribution of replacement parts for motor vehicles in the automotive aftermarket industry with an increasing focus on the original equipment service market.

The accompanying unaudited financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014.  The unaudited consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 50% equity ownership.  Our investments in unconsolidated affiliates are accounted for on the equity method, as we do not have a controlling financial interest.  All significant inter-company items have been eliminated.

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.  The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year.

Note 2. Summary of Significant Accounting Policies

The preparation of consolidated annual and quarterly financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods.  We have made a number of estimates and assumptions in the preparation of these consolidated financial statements.  We can give no assurance that actual results will not differ from those estimates.  Some of the more significant estimates include allowances for doubtful accounts, realizability of inventory, goodwill and other intangible assets, depreciation and amortization of long-lived assets, product liability, pensions and other postretirement benefits, asbestos, environmental and litigation matters, the valuation of deferred tax assets and sales return allowances.

There have been no material changes to our critical accounting policies and estimates from the information provided in Note 1 of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2014.

Recently Issued Accounting Pronouncements

Discontinued Operations and Disclosures of Disposals of Components of an Entity

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements.  Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.”  The new standard applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date.  The amendment is effective for annual reporting periods beginning after December 15, 2014.  We adopted the new standard as of January 1, 2015.  The adoption of the new standard did not change the manner in which we present discontinued operations in our consolidated financial statements.

8

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance.  Under the new guidance, “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.”  The new standard provides entities the option of using either a full retrospective or a modified approach to adopt the guidance.  The new standard is effective for annual reporting periods beginning after December 15, 2016, which for us is January 1, 2017, and interim periods within those annual periods; however, the FASB recently proposed a one year deferral of the effective date of the standard.  Early adoption is not permitted.  We are currently evaluating the impact, if any, this new standard will have on our consolidated financial statements and have not yet determined the method of adoption.

Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern

In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which provides guidance on determining when and how to disclose going concern uncertainties in the consolidated financial statements.  Under the new guidance, management would be required to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued.  Certain disclosures must be provided if “conditions or events raise substantial doubt about an entity’s ability to continue as a going concern.”  The new standard is effective for annual reporting periods ending after December 15, 2016, which for us is December 31, 2016, and interim periods thereafter.  Early adoption is permitted.  Upon adoption, although we do not anticipate that the new standard will have an impact on our disclosures, we will consider the new standard when conducting our interim and annual assessments of our ability to continue as a going concern.

Income Statement - Extraordinary and Unusual Items

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, (“ASU 2015-01”), which removes the concept of extraordinary items from U.S. GAAP.  Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual and occurs infrequently.  This separate, net-of-tax presentation will no longer be allowed.  The existing requirement to separately disclose events or transactions that are unusual or occur infrequently on a pre-tax basis within continuing operations in the income statement has been retained.  The new guidance requires similar separate presentation of items that are both unusual and infrequent.  The new standard is effective for periods beginning after December 15, 2015, which for us is January 1, 2016.  Early adoption is permitted, but only as of the beginning of the fiscal year of adoption.  Upon adoption, we will present transactions that are both unusual and infrequent, if any, on a pre-tax basis within continuing operations in the income statement.

9

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Simplifying the Presentation of Debt Issuance Costs

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, (“ASU 2015-03”), which requires that debt issuance costs be presented in the balance sheet as a direct deduction of the carrying value of the associated debt liability.  Under the existing guidance, debt issuance costs are required to be presented in the balance sheet as a deferred charge (i.e., an asset).  The new standard is effective for periods beginning after December 15, 2015, which for us is January 1, 2016.  Early adoption is permitted for financial statements that have not been previously issued.  The new standard should be applied retrospectively to all periods presented in the financial statements.  Upon adoption, we will present debt financing costs as a deduction of the carrying value of our revolving credit facility debt instead of presenting such costs as an asset in our consolidated balance sheets.

Note 3. Restructuring and Integration Costs

The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of December 31, 2014 and March 31, 2015 and activity for the three months ended March 31, 2015 consisted of the following (in thousands):

	Workforce Reduction			Other Exit Costs			Total
Exit activity liability at December 31, 2014	$	947		$	729		$	1,676
Restructuring and integration costs:
Amounts provided for during 2015		2			55			57
Cash payments		(294	)		(57	)		(351	)
Exit activity liability at March 31, 2015	$	655		$	727		$	1,382

Liabilities associated with the remaining restructuring and integration costs as of March 31, 2015 relate primarily to employee severance and other retiree benefit enhancements to be paid through 2019 and environmental clean-up costs at our Long Island City, New York location in connection with the closure of our manufacturing operations at the site.

Note 4. Sale of Receivables

From time to time, we sell undivided interests in certain of our receivables to financial institutions.  We enter these agreements at our discretion when we determine that the cost of factoring is less than the cost of servicing our receivables with existing debt.  Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables, and do not service the receivables after the sale.  As such, these transactions are being accounted for as a sale.

Pursuant to these agreements, we sold $144 million and $177.4 million of receivables during the three months ended March 31, 2015 and 2014, respectively.  A charge in the amount of $2.9 million and $3.4 million related to the sale of receivables is included in selling, general and administrative expense in our consolidated statements of operations for the three months ended March 31, 2015 and 2014, respectively.  If we do not enter into these arrangements or if any of the financial institutions with which we enter into these arrangements were to experience financial difficulties or otherwise terminate these arrangements, our financial condition, results of operations and cash flows could be materially and adversely affected by delays or failures to collect future trade accounts receivable.

10

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Note 5. Inventories

Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) or market, consist of the following:

	March 31, 2015		December 31, 2014
	(In thousands)
Finished goods	$	189,976	$	185,655
Work in process		5,321		4,722
Raw materials		88,404		87,674
Total inventories	$	283,701	$	278,051

Note 6. Acquired Intangible Assets

Acquired identifiable intangible assets consist of the following:

	March 31, 2015			December 31, 2014
	(In thousands)
Customer relationships	$	48,473		$	48,646
Trademarks and trade names		6,800			6,800
Non-compete agreements		970			970
Patents and supply contracts		723			723
Leaseholds		160			160
Total acquired intangible assets		57,126			57,299
Less accumulated amortization (1)		(25,373	)		(24,120	)
Net acquired intangible assets	$	31,753		$	33,179

(1) Applies to all intangible assets, except for trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being amortized.

Total amortization expense for acquired intangible assets was $1.3 million and $1.1 million for the three months ended March 31, 2015 and 2014, respectively.  Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be $3.7 million for the remainder of 2015, $4.8 million in 2016, $4.6 million in 2017 and $13.5 million in the aggregate for the years 2018 through 2028.

11

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Note 7. Credit Facilities and Long-Term Debt

Total debt outstanding is summarized as follows:

	March 31, 2015		December 31, 2014
	(In thousands)
Revolving credit facilities	$	71,567	$	56,558
Other		194		258
Total debt	$	71,761	$	56,816
Current maturities of debt	$	71,689	$	56,733
Long-term debt		72		83
Total debt	$	71,761	$	56,816

Deferred Financing Costs

We had deferred financing costs of $2.1 million and $2.3 million as of March 31, 2015 and December 31, 2014, respectively.  Deferred financing costs are related to our revolving credit facility.  Deferred financing costs as of March 31, 2015 are being amortized in the amounts of $0.5 million for the remainder of 2015, $0.7 million in 2016, $0.7 million in 2017 and $0.2 million in 2018.

Revolving Credit Facility

We entered into the Third Amended and Restated Credit Agreement with General Electric Capital Corporation, as agent, and a syndicate of lenders for a secured revolving credit facility.  The restated credit agreement (as amended) provides for a line of credit of up to $250 million (inclusive of the Canadian revolving credit facility described below) and expires in March 2018.  Direct borrowings under the restated credit agreement bear interest at the LIBOR rate plus the applicable margin (as defined), or floating at the index rate plus the applicable margin, at our option. The interest rate may vary depending upon our borrowing availability. The restated credit agreement is guaranteed by certain of our subsidiaries and secured by certain of our assets.

Borrowings under the restated credit agreement are collateralized by substantially all of our assets, including accounts receivable, inventory and fixed assets, and those of certain of our subsidiaries. After taking into account outstanding borrowings under the restated credit agreement, there was an additional $147.5 million available for us to borrow pursuant to the formula at March 31, 2015.  Outstanding borrowings under the restated credit agreement (inclusive of the Canadian revolving credit facility described below), which are classified as current liabilities, were $71.6 million and $56.6 million at March 31, 2015 and December 31, 2014, respectively.  Borrowings under the restated credit agreement have been classified as current liabilities based upon the accounting rules and certain provisions in the agreement.

At March 31, 2015, the weighted average interest rate on our restated credit agreement was 2%, which consisted of $61 million in direct borrowings at 1.7% and an index loan of $10.6 million at 3.8%.  At December 31, 2014, the weighted average interest rate on our restated credit agreement was 1.8%, which consisted of $53 million in direct borrowings at 1.7% and an index loan of $3.6 million at 3.8%.  During the three months ended March 31, 2015, our average daily index loan balance was $4.3 million compared to $3.3 million for the three months ended March 31, 2014 and $4.4 million for the year ended December 31, 2014.

12

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

At any time that our average borrowing availability is less than $25 million, the terms of our restated credit agreement provide for, among other provisions, a financial covenant requiring us, on a consolidated basis, to maintain specified levels of fixed charge coverage at the end of each fiscal quarter (rolling twelve months).  As of March 31, 2015, we were not subject to these covenants.  Availability under our restated credit agreement is based on a formula of eligible accounts receivable, eligible inventory and eligible fixed assets.  Provided specific conditions are met, our restated credit agreement permits cash dividends, stock repurchases, acquisitions, permissible debt financing and capital expenditures.

Canadian Revolving Credit Facility

Our Canadian Credit Agreement (as amended) with GE Canada Finance Holding Company, for itself and as agent for the lenders, provides for a $10 million revolving credit facility that expires in March 2018.  The Canadian $10 million line of credit is part of the $250 million available for borrowing under our restated credit agreement with General Electric Capital Corporation.

The Canadian Credit Agreement is guaranteed and secured by us and certain of our wholly-owned subsidiaries.  Direct borrowings under the amended credit agreement bear interest at the same rate as our restated credit agreement with General Electric Capital Corporation.  As of March 31, 2015, we have no outstanding borrowings under the Canadian Credit Agreement.

Note 8. Accumulated Other Comprehensive Income

Changes in Accumulated Other Comprehensive Income by Component

	Foreign Currency Translation Adjustments			Unrecognized Pension and Postretirement Benefit Costs (Credit)			Total
Balance at December 31, 2014	$	(219	)	$	(2,433	)	$	(2,652	)
Other comprehensive income before reclassifications		(3,074	)		8			(3,066	)
Amounts reclassified from accumulated other comprehensive income		—			348			348
Other comprehensive income, net		(3,074	)		356			(2,718	)
Balance at March 31, 2015	$	(3,293	)	$	(2,077	)	$	(5,370	)

Reclassifications Out of Accumulated Other Comprehensive Income

Details About Accumulated Other Comprehensive Income Components	Three Months Ended March 31, 2015
Amortization of pension and postretirement benefit plans:
Prior service benefit (1)	$	(29	)
Unrecognized loss (1)		618
Total before income tax		589
Income tax expense		(241	)
Total reclassifications for the period	$	348

(1)  These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement benefit costs, which are included in selling, general and administrative expenses in our consolidated statements of operations (see Note 10 for additional details).

13

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Note 9. Stock-Based Compensation Plans

We account for our stock-based compensation plans in accordance with the provisions of FASB ASC 718, Stock Compensation, which requires that a company measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award.  The cost is recognized in the consolidated statement of operations over the period during which an employee is required to provide service in exchange for the award.

Stock Option Grants

The following is a summary of the changes in outstanding stock options for the three months ended March 31, 2015:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
Outstanding at December 31, 2014		9,875		$	10.99		0.4
Expired		—			—		—
Exercised		(3,125	)		11.14		—
Forfeited, other		—			—		—
Outstanding at March 31, 2015		6,750		$	10.92		0.1
Options exercisable at March 31, 2015		6,750		$	10.92		0.1

The aggregate intrinsic value of all outstanding stock options as of March 31, 2015 was $0.2 million.  All outstanding stock options as of March 31, 2015 are fully vested and exercisable.  The total intrinsic value of options exercised was $0.1 million for the three months ended March 31, 2015.  There were no options granted in the three months ended March 31, 2015.

Restricted and Performance Stock Grants

As part of the 2006 Omnibus Incentive Plan, we currently grant shares of restricted stock to eligible employees and our independent directors and performance-based stock to eligible employees.  Selected executives and other key personnel are granted performance awards whose vesting is contingent upon meeting various performance measures with a retention feature.  Performance-based shares are subject to a three-year measuring period and the achievement of performance targets and, depending upon the achievement of such performance targets, they may become vested on the third anniversary of the date of grant.  Each period we evaluate the probability of achieving the applicable targets, and we adjust our accrual accordingly.  Restricted shares granted to employees become fully vested upon the third anniversary of the date of grant; and for selected key executives, certain additional restricted share grants vest 25% upon the attainment of age 60, 25% upon the attainment of age 63 and become fully vested upon the attainment of age 65.  Restricted shares granted to directors become fully vested upon the first anniversary of the date of grant.  Forfeitures on restricted stock grants are estimated at 5% for employees and 0% for executives and directors, respectively, based on our evaluation of historical and expected future turnover.

14

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Our restricted and performance-based share activity was as follows for the three months ended March 31, 2015:

	Shares			Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2014		749,018		$	24.62
Granted		—			—
Vested		(30,343	)		36.14
Forfeited		(1,100	)		22.30
Balance at March 31, 2015		717,575		$	24.13

We recorded compensation expense related to restricted shares and performance-based shares of $1.3 million ($0.8 million, net of tax) and $1million ($0.6 million, net of tax) for the three months ended March 31, 2015 and 2014, respectively. The unamortized compensation expense related to our restricted and performance-based shares was $10.7 million at March 31, 2015, and is expected to be recognized as they vest over a weighted average period of 5.1 years and 0.1 years for employees and directors, respectively.

Note 10. Employee Benefits

The components of net periodic benefit cost (credit) for our defined benefit plans and postretirement benefit plans for the three months ended March 31, 2015 and 2014 were as follows (in thousands):

	Three Months Ended March 31,
Pension benefits	2015			2014
Service cost	$	—		$	41
Interest cost		54			65
Amortization of prior service cost		—			—
Actuarial net loss		184			57
Net periodic benefit cost	$	238		$	163
Postretirement benefits
Service cost	$	—		$	—
Interest cost		7			8
Amortization of prior service cost		(29	)		(754	)
Actuarial net loss		434			535
Net periodic benefit cost (credit)	$	412		$	(211	)

For the three months ended March 31, 2015, we made employee benefit contributions of $0.2 million related to our postretirement plans.  Based on current actuarial estimates, we believe we will be required to make approximately $2.3 million in contributions for 2015.

We maintain a Supplemental Executive Retirement Plan (“SERP”) for key employees. Under the plan, these employees may elect to defer a portion of their compensation and, in addition, we may at our discretion make contributions to the plan on behalf of the employees.  In March 2015, contributions of $0.5 million were made related to calendar year 2014.

We also have an Employee Stock Ownership Plan and Trust for employees who are not covered by a collective bargaining agreement.  In connection therewith, we maintain an employee benefits trust to which we contribute shares of treasury stock.  We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under the plan. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released.  The trustees will vote the shares in accordance with their fiduciary duties.  During the three months ended March 31, 2015, we contributed to the trust an additional 58,000 shares from our treasury and released 58,200 shares from the trust leaving 200 shares remaining in the trust as of March 31, 2015.

15

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Note 11. Fair Value Measurements

We follow a three-level fair value hierarchy that prioritizes the inputs to measure fair value.  This hierarchy requires entities to maximize the use of “observable inputs” and minimize the use of “unobservable inputs.”  The three levels of inputs used to measure fair value are as follows:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect assumptions that market participants would use in pricing an asset or liability.

The following is a summary of the carrying amounts and estimated fair values of our financial instruments at March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015				December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	8,119	$	8,119	$	13,728	$	13,728
Deferred compensation		11,006		11,006		9,811		9,811
Short term borrowings		71,689		71,689		56,733		56,733
Long-term debt		72		72		83		83

For fair value purposes the carrying value of cash and cash equivalents approximates fair value due to the short maturity of those investments.  The fair value of the underlying assets held by the deferred compensation plan are based on the quoted market prices of the funds in registered investment companies, which are considered Level 1 inputs.  The carrying value of our revolving credit facilities, classified as short term borrowings, equals fair market value because the interest rate reflects current market rates.

16

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Note 12. Earnings Per Share

The following are reconciliations of the earnings available to common stockholders and the shares used in calculating basic and dilutive net earnings per common share (in thousands, except per share data):

	Three Months Ended March 31,
Basic Net Earnings Per Common Share:	2015			2014
Earnings from continuing operations	$	9,339		$	12,407
Loss from discontinued operations		(391	)		(682	)
Net earnings available to common stockholders	$	8,948		$	11,725
Weighted average common shares outstanding		22,911			22,947
Earnings from continuing operations per common share	$	0.41		$	0.54
Loss from discontinued operations per common share		(0.02	)		(0.03	)
Basic net earnings per common share	$	0.39		$	0.51
Diluted Net Earnings Per Common Share:
Earnings from continuing operations	$	9,339		$	12,407
Loss from discontinued operations		(391	)		(682	)
Net earnings available to common stockholders	$	8,948		$	11,725
Weighted average common shares outstanding		22,911			22,947
Plus incremental shares from assumed conversions:
Dilutive effect of restricted stock and performance stock		323			272
Dilutive effect of stock options		4			6
Weighted average common shares outstanding – Diluted		23,238			23,225
Earnings from continuing operations per common share	$	0.40		$	0.53
Loss from discontinued operations per common share		(0.01	)		(0.03	)
Diluted net earnings per common share	$	0.39		$	0.50

The shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands):

	Three Months Ended March 31,
	2015		2014
Stock options		3		6
Restricted and performance shares		358		308

Note 13. Industry Segments

We have two major reportable operating segments, each of which focuses on a specific line of replacement parts.  Our Engine Management Segment manufactures and remanufactures ignition and emission parts, ignition wires, battery cables, fuel system parts and sensors for vehicle systems.  Our Temperature Control Segment manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories and windshield washer system parts.

17

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

The following tables show our net sales, intersegment revenue and operating income by our operating segments (in thousands):

	Three Months Ended March 31,
	2015			2014
Net Sales
Engine Management	$	177,071		$	179,294
Temperature Control		48,728			51,485
All Other		1,790			1,973
Consolidated	$	227,589		$	232,752
Intersegment Revenue
Engine Management	$	5,023		$	5,953
Temperature Control		1,444			2,234
All Other		(6,467	)		(8,187	)
Consolidated	$	—		$	—
Operating Income
Engine Management	$	21,716		$	24,372
Temperature Control		(1,419	)		613
All Other		(5,382	)		(4,580	)
Consolidated	$	14,915		$	20,405

Note 14. Commitments and Contingencies

Asbestos

In 1986, we acquired a brake business, which we subsequently sold in March 1998 and which is accounted for as a discontinued operation. When we originally acquired this brake business, we assumed future liabilities relating to any alleged exposure to asbestos-containing products manufactured by the seller of the acquired brake business. In accordance with the related purchase agreement, we agreed to assume the liabilities for all new claims filed on or after September 2001. Our ultimate exposure will depend upon the number of claims filed against us on or after September 2001 and the amounts paid for indemnity and defense thereof.  At March 31, 2015, approximately 2,150 cases were outstanding for which we may be responsible for any related liabilities.  Since inception in September 2001 through March 31, 2015, the amounts paid for settled claims are approximately $17.7 million.

In evaluating our potential asbestos-related liability, we have considered various factors including, among other things, an actuarial study of the asbestos related liabilities performed by an independent actuarial firm, our settlement amounts and whether there are any co-defendants, the jurisdiction in which lawsuits are filed, and the status and results of settlement discussions.  As is our accounting policy, we consider the advice of actuarial consultants with experience in assessing asbestos-related liabilities to estimate our potential claim liability.  The methodology used to project asbestos-related liabilities and costs in our actuarial study considered: (1) historical data available from publicly available studies; (2) an analysis of our recent claims history to estimate likely filing rates into the future; (3) an analysis of our currently pending claims; and (4) an analysis of our settlements to date in order to develop average settlement values.

18

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

The most recent actuarial study was performed as of August 31, 2014.  The updated study has estimated an undiscounted liability for settlement payments, excluding legal costs and any potential recovery from insurance carriers, ranging from $36.1 million to $55.4 million for the period through 2058. The change from the prior year study was an $11.7 million increase for the low end of the range and an $18 million increase for the high end of the range.  The increase in the estimated undiscounted liability from the prior year study at both the low end and high end of the range reflects historical data and certain assumptions with respect to events that may occur in the future.  Based on the information contained in the actuarial study and all other available information considered by us, we have concluded that no amount within the range of settlement payments was more likely than any other and, therefore, in assessing our asbestos liability we compare the low end of the range to our recorded liability to determine if an adjustment is required.  Based upon the results of the August 31, 2014 actuarial study, in September 2014 we increased our asbestos liability to $36.1 million, the low end of the range, and recorded an incremental pre-tax provision of $12.8 million in loss from discontinued operations in the accompanying statement of operations.  Legal costs, which are expensed as incurred and reported in loss from discontinued operations in the accompanying statement of operations, are estimated, according to the updated study, to range from $43 million to $76.4 million for the period through 2058.

We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future. Given the uncertainties associated with projecting such matters into the future and other factors outside our control, we can give no assurance that additional provisions will not be required. We will continue to monitor the circumstances surrounding these potential liabilities in determining whether additional provisions may be necessary.  At the present time, however, we do not believe that any additional provisions would be reasonably likely to have a material adverse effect on our liquidity or consolidated financial position.

Other Litigation

We are currently involved in various other legal claims and legal proceedings (some of which may involve substantial amounts), including claims related to commercial disputes, product liability, employment, and environmental.  Although these legal claims and legal proceedings are subject to inherent uncertainties, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the ultimate outcome of these matters will not, either individually or in the aggregate, have a material adverse effect on our business, financial condition or results of operations.  We may at any time determine that settling any of these matters is in our best interests, which settlement may include substantial payments.  Although we cannot currently predict the specific amount of any liability that may ultimately arise with respect to any of these matters, we will record provisions when the liability is considered probable and reasonably estimable.  Significant judgment is required in both the determination of probability and the determination as to whether an exposure can be reasonably estimated.  As additional information becomes available, we reassess our potential liability related to these matters. Such revisions of the potential liabilities could have a material adverse effect on our business, financial condition or results of operations.

Warranties

We generally warrant our products against certain manufacturing and other defects. These product warranties are provided for specific periods of time of the product depending on the nature of the product.  As of March 31, 2015 and 2014, we have accrued $20 million and $20.4 million, respectively, for estimated product warranty claims included in accrued customer returns. The accrued product warranty costs are based primarily on historical experience of actual warranty claims.

19

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

The following table provides the changes in our product warranties (in thousands):

	Three Months Ended March 31,
	2015			2014
Balance, beginning of period	$	19,328		$	18,041
Liabilities accrued for current year sales		21,036			19,191
Settlements of warranty claims		(20,379	)		(16,858	)
Balance, end of period	$	19,985		$	20,374

20

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements in this Report are indicated by words such as “anticipates,” “expects,” “believes,” “intends,” “plans,” “estimates,” “projects,” “strategies” and similar expressions. These statements represent our expectations based on current information and assumptions and are inherently subject to risks and uncertainties.  Our actual results could differ materially from those which are anticipated or projected as a result of certain risks and uncertainties, including, but not limited to, changes in business relationships with our major customers and in the timing, size and continuation of our customers’ programs; changes in our receivables factoring arrangements; the ability of our customers to achieve their projected sales; competitive product and pricing pressures; increases in production or material costs that cannot be recouped in product pricing; the performance of the aftermarket, heavy duty ,industrial equipment and original equipment service markets; changes in the product mix and distribution channel mix; economic and market conditions; successful integration of acquired businesses; our ability to achieve benefits from our cost savings initiatives; product liability and environmental matters (including, without limitation, those related to asbestos-related contingent liabilities and remediation costs at certain properties); as well as other risks and uncertainties, such as those described under Risk Factors, Quantitative and Qualitative Disclosures About Market Risk and those detailed herein and from time to time in the filings of the Company with the SEC.  Forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. In addition, historical information should not be considered as an indicator of future performance.  The following discussion should be read in conjunction with the unaudited consolidated financial statements, including the notes thereto, included elsewhere in this Report.

Business Overview

We are a leading independent manufacturer and distributor of replacement parts for motor vehicles in the automotive aftermarket industry with an increasing focus on heavy duty, industrial equipment and the original equipment service market.  We are organized into two major operating segments, each of which focuses on specific lines of replacement parts.  Our Engine Management Segment manufactures and remanufactures ignition and emission parts, ignition wires, battery cables, fuel system parts and sensors for vehicle systems.  Our Temperature Control Segment manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories, and windshield washer system parts.

We sell our products primarily to warehouse distributors, large retail chains,original equipment manufacturers and original equipment service part operations in the United States, Canada, Latin America, and Europe.  Our customers consist of many of the leading warehouse distributors and auto parts retail chains, such as NAPA Auto Parts (National Automotive Parts Association, Inc.), Advance Auto Parts, Inc./CARQUEST Auto Parts, AutoZone, Inc., O’Reilly Automotive, Inc., Canadian Tire Corporation Limited and The Pep Boys Manny, Moe & Jack, as well as national program distribution groups, such as Auto Value and All Pro/Bumper to Bumper (Aftermarket Auto Parts Alliance, Inc.), Automotive Distribution Network LLC, The National Pronto Association (“Pronto”), Federated Auto Parts Distributors, Inc. (“Federated”), Pronto and Federated’s newly formed organization, the Automotive Parts Services Group or The Group, and specialty market distributors. We distribute parts under our own brand names, such as Standard®, BWD®, Intermotor®, GP Sorensen®, TechSmart®, Tech Expert®, OEM®, LockSmart®, Select®, Four Seasons®, Factory Air®, EVERCO®, ACi®, Imperial®, COMPRESSORWORKS®, TORQFLO® and Hayden® and through co-labels and private labels, such as CARQUEST® BWD®, CARQUEST® Intermotor®, Duralast®, Duralast Gold®, Import Direct®, Master Pro®, Murray®, NAPA®, NAPA® Echlin®, Mileage Plus®, NAPA Proformer™, NAPA Temp Products™, Cold Power® and NAPA® Belden®.

21

Our goal is to grow revenues and earnings and deliver returns in excess of our cost of capital by providing high quality original equipment and replacement products to the engine management and temperature control markets.  Our management places significant emphasis on improving our financial performance by achieving operating efficiencies and improving asset utilization, while maintaining product quality and high customer order fill rates.  We intend to continue to improve our operating efficiency, customer satisfaction and cost position by increasing cost‑effective vertical integration in key product lines through internal development and improving our cost effectiveness and competitive responsiveness to better serve our customer base, including sourcing certain products from low cost countries such as those in Asia.

Seasonality.  Historically, our operating results have fluctuated by quarter, with the greatest sales occurring in the second and third quarters of the year and revenues generally being recognized at the time of shipment. It is in these quarters that demand for our products is typically the highest, specifically in the Temperature Control Segment of our business.  In addition to this seasonality, the demand for our Temperature Control products during the second and third quarters of the year may vary significantly with the summer weather and customer inventories.  For example, a cool summer, as we experienced in both 2014 and 2013, may lessen the demand for our Temperature Control products, while a hot summer may increase such demand.  As a result of this seasonality and variability in demand of our Temperature Control products, our working capital requirements typically peak near the end of the second quarter, as the inventory build‑up of air conditioning products is converted to sales and payments on the receivables associated with such sales have yet to be received. During this period, our working capital requirements are typically funded by borrowing from our revolving credit facility.

Inventory Management.  We face inventory management issues as a result of warranty and overstock returns. Many of our products carry a warranty ranging from a 90-day limited warranty to a lifetime limited warranty, which generally covers defects in materials or workmanship and failure to meet industry published specifications and/or the result of installer error. In addition to warranty returns, we also permit our customers to return products to us within customer-specific limits (which are generally limited to a specified percentage of their annual purchases from us) in the event that they have overstocked their inventories. We accrue for overstock returns as a percentage of sales, after giving consideration to recent returns history.

In order to better control warranty and overstock return levels, we have put in place procedures for authorized warranty returns, including for warranty returns which result from installer error, placed restrictions on the amounts customers can return and instituted a program to better estimate potential future product returns.  In addition, with respect to our air conditioning compressors, which are our most significant customer product warranty returns, we established procedures whereby a warranty will be voided if a customer does not provide acceptable proof that complete air conditioning system repair was performed.

Discounts, Allowances and Incentives.  We offer a variety of usual customer discounts, allowances and incentives.  First, we offer cash discounts for paying invoices in accordance with the specified discount terms of the invoice.  Second, we offer pricing discounts based on volume purchased from us and participation in our cost reduction initiatives.  These discounts are principally in the form of “off-invoice” discounts and are immediately deducted from sales at the time of sale. For those customers that choose to receive a payment on a quarterly basis instead of “off-invoice,” we accrue for such payments as the related sales are made and reduce sales accordingly.  Finally, rebates and discounts are provided to customers as advertising and sales force allowances, and allowances for warranty and overstock returns are also provided.  Management analyzes historical returns, current economic trends, and changes in customer demand when evaluating the adequacy of the sales returns and other allowances. Significant management judgments and estimates must be made and used in connection with establishing the sales returns and other allowances in any accounting period.  We account for these discounts and allowances as a reduction to revenues, and record them when the related sales are recorded.

22

Interim Results of Operations:

Comparison of the Three Months Ended March 31, 2015 to the Three Months Ended March 31, 2014

Sales.  Consolidated net sales for the three months ended March 31, 2015 were $227.6 million, a decrease of $5.2 million, or 2.2%, compared to $232.8 million in the same period of 2014.  Consolidated net sales decreased due to the lower results achieved by both our Engine Management and Temperature Control Segments.  Had the same Canadian Dollar and Polish Zloty exchange rates applied in the first quarter of 2014 been used in 2015, net sales for the first quarter of 2015 would have been $2.1 million higher.

The following table summarizes consolidated net sales and gross margins by segment for the quarters ended March 31, 2015 and 2014, respectively (in thousands):

Three Months Ended March 31,	Engine Management			Temperature Control			Other		Total
2015
Net sales	$	177,071		$	48,728		$	1,790	$	227,589
Gross margins		51,702			9,827			2,360		63,889
Gross margin percentage		29.2	%		20.2	%		—		28.1	%
2014
Net sales	$	179,294		$	51,485		$	1,973	$	232,752
Gross margins		53,195			11,885			2,830		67,910
Gross margin percentage		29.7	%		23.1	%		—		29.2	%

Engine Management’s net sales decreased $2.2 million, or 1.2%, to $177.1 million for the first quarter of 2015.  Had the same Polish Zloty exchange rate applied in the first quarter of 2014 been used in 2015, net sales for the first quarter of 2015 would have been $0.8 million higher.

Temperature Control’s net sales decreased $2.8 million, or 5.4%, to $48.7 million for the first quarter of 2014.  Included in the first three months of 2015 are incremental sales of $3 million from our asset acquisition of Annex Manufacturing acquired in April 2014.  Excluding the incremental sales from the acquisition, Temperature Control’s net sales decreased $5.8 million compared to the first quarter of 2014.  Temperature Control net sales in the first quarter of the year reflect early pre-season orders as customers stock their shelves for the upcoming summer season.  Demand for our Temperature Control products during the second and third quarter of each year may vary significantly with summer weather conditions and customer inventories.

Gross Margins.  Gross margins, as a percentage of consolidated net sales, decreased to 28.1% in the first quarter of 2015, compared to 29.2% in the first quarter of 2014.  Gross margins at Engine Management decreased 0.5 percentage points from 29.7% to 29.2%, and gross margins at Temperature Control decreased 2.9 percentage points from 23.1% to 20.2%.  The gross margin percentage decline in Engine Management compared to the prior year was primarily the result of costs incurred to improve our diesel manufacturing production processes and quality controls.  The gross margin percentage decline in Temperature Control compared to the prior year resulted primarily from unabsorbed overheads as production levels were reduced in the fourth quarter of 2014 and the first quarter of 2015.

Selling, General and Administrative Expenses.  Selling, general and administrative expenses (“SG&A”) increased to $49.2 million, or 21.6% of consolidated net sales, in the first quarter of 2015, as compared to $47.6 million, or 20.4% of consolidated net sales in the first quarter of 2014.  The increase in SG&A expenses as compared to the first quarter of 2014 is principally due to higher employee benefit costs.

23

Restructuring and Integration Expenses.  Restructuring and integration expenses for the first quarter of 2015 and 2014 were $0.1 million and $0.2 million, respectively.  Components of our restructuring and integration accruals, by segment, were as follows (in thousands):

	Engine Management			Temperature Control			Other			Total
Exit activity liability at December 31, 2014	$	1,289		$	180		$	207		$	1,676
Restructuring and integration costs:
Amounts provided for during 2015		1			56			—			57
Cash payments		(158	)		(131	)		(62	)		(351	)
Exit activity liability at March 31, 2015	$	1,132		$	105		$	145		$	1,382

Other Income, Net. Other income, net was $0.3 million in both the first quarter of 2015 and 2014.  During the first quarter of 2015 and 2014, we recognized $0.3 million of deferred gain related to the sale-leaseback of our Long Island City, New York facility.

Operating Income.  Operating income decreased to $14.9 million in the first quarter of 2015, compared to $20.4 million in the first quarter of 2014.  The decrease of $5.5 million is the result of lower consolidated net sales, lower gross margins as a percentage of consolidated net sales and higher SG&A expenses.

Other Non-Operating Income (Expense), Net.  Other non-operating income was $0.2 million in the first quarter of 2015, compared to other non-operating expense of $0.4 million in the first quarter of 2014.  The year-over-year improvement in other non-operating income (expense), net results primarily from the improved equity income from our joint ventures.

Interest Expense.  Interest expense increased to $0.4 million in the first quarter of 2015 compared to $0.3 million in the same period of 2014 as average outstanding borrowings during the quarter increased year-over-year.

Income Tax Provision. The income tax provision in the first quarter of 2015 was $5.3 million at an effective tax rate of 36.2% compared to $7.3 million and an effective tax rate of 37% for the same period in 2014.

Loss from Discontinued Operations.  Loss from discontinued operations, net of tax, reflects legal expenses associated with our asbestos related liability.  We recorded a $0.4 million and $0.7 million loss from discontinued operations for the first quarter of 2015 and 2014, respectively.  As discussed more fully in Note 14 in the notes to our consolidated financial statements (unaudited), we are responsible for certain future liabilities relating to alleged exposure to asbestos containing products.

Restructuring and Integration Costs

The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of December 31, 2014 and March 31, 2015 and activity for the three months ended March 31, 2015 consisted of the following (in thousands):

	Workforce Reduction			Other Exit Costs			Total
Exit activity liability at December 31, 2014	$	947		$	729		$	1,676
Restructuring and integration costs:
Amounts provided for during 2015		2			55			57
Cash payments		(294	)		(57	)		(351	)
Exit activity liability at March 31, 2015	$	655		$	727		$	1,382

24

Liabilities associated with the remaining restructuring and integration costs as of March 31, 2015 relate primarily to employee severance and other retiree benefit enhancements to be paid through 2019 and environmental clean-up costs at our Long Island City, New York location in connection with the closure of our manufacturing operations at the site.

Liquidity and Capital Resources

Operating Activities. During the first three months of 2015, cash used in operating activities was $14.2 million compared to cash provided by operating activities of $9.2 million in the same period of 2014.  The year-over-year decrease in operating cash flow is primarily the result of the decline in net earnings, the larger year-over-year increase in accounts receivable and a smaller year-over-year increase in accounts payable, partially offset by a smaller year-over-year increase in inventories.  The larger year-over-year increase in accounts receivable is primarily due to higher net sales later in the first quarter of 2015 as compared to the first quarter of 2014 with cash collections anticipated early in the second quarter of 2015.

Net earnings during the first quarter of 2015 were $8.9 million compared to $11.7 million in the first quarter of 2014.  During the first three months of 2015, (1) the increase in accounts receivable was $25.3 million compared to the year-over-year increase in accounts receivable of $0.8 million in 2014; (2) the increase in accounts payable was $5.2 million compared to the year-over-year increase in accounts payable of $9.3 million in 2014; and (3) the increase in inventories was $7.5 million compared to the year-over-year increase in inventories of $12.7 million in 2014.  We continue to actively manage our working capital to maximize our operating cash flow.

Investing Activities.  Cash used in investing activities was $4 million in the first three months of 2015, compared to $15 million in the same period of 2014.  Investing activities during the first quarter of 2015 consisted of capital expenditures of $4 million.  Investing activities in the first quarter of 2014 consisted of (1) our acquisition of certain net assets of Pensacola Fuel Injection Inc., our primary vendor for rebuilt diesel fuel injectors and other related diesel products, for $12.2 million and (2) capital expenditures of $2.8 million.

Financing Activities.  Cash provided by financing activities was $13.1 million in the first three months of 2015 compared to $5.1 million provided by the same period of 2014.  Borrowings under our revolving credit facility were used to fund operating cash flow, capital expenditures and to pay dividends.  Dividends of $3.4 million were paid in the first three months of 2015 compared to $3 million in the comparable period last year.  In February 2015, our Board of Directors voted to increase our quarterly dividend from $0.13 per share in 2014 to $0.15 per share in 2015.

We entered into the Third Amended and Restated Credit Agreement with General Electric Capital Corporation, as agent, and a syndicate of lenders for a secured revolving credit facility.  The restated credit agreement (as amended) provides for a line of credit of up to $250 million (inclusive of the Canadian revolving credit facility described below) and expires in March 2018.  Direct borrowings under the restated credit agreement bear interest at the LIBOR rate plus the applicable margin (as defined), or floating at the index rate plus the applicable margin, at our option. The interest rate may vary depending upon our borrowing availability. The restated credit agreement is guaranteed by certain of our subsidiaries and secured by certain of our assets.

Borrowings under the restated credit agreement are collateralized by substantially all of our assets, including accounts receivable, inventory and fixed assets, and those of certain of our subsidiaries. After taking into account outstanding borrowings under the restated credit agreement, there was an additional $147.5 million available for us to borrow pursuant to the formula at March 31, 2015.  Outstanding borrowings under the restated credit agreement (inclusive of the Canadian revolving credit facility described below), which are classified as current liabilities, were $71.6 million and $56.6 million at March 31, 2015 and December 31, 2014, respectively.  Borrowings under the restated credit agreement have been classified as current liabilities based upon accounting rules and certain provisions in the agreement.

25

At March 31, 2015, the weighted average interest rate on our restated credit agreement was 2%, which consisted of $61 million in direct borrowings at 1.7% and an index loan of $10.6 million at 3.8%.  At December 31, 2014, the weighted average interest rate on our restated credit agreement was 1.8%, which consisted of $53 million in direct borrowings at 1.7% and an index loan of $3.6 million at 3.8%.  During the three months ended March 31, 2015, our average daily index loan balance was $4.3 million compared to $3.3 million for the three months ended March 31, 2014 and $4.4 million for the year ended December 31, 2014.

At any time that our average borrowing availability is less than $25 million, the terms of our restated credit agreement provide for, among other provisions, a financial covenant requiring us, on a consolidated basis, to maintain specified levels of fixed charge coverage at the end of each fiscal quarter (rolling twelve months).  As of March 31, 2015, we were not subject to these covenants.  Availability under our restated credit agreement is based on a formula of eligible accounts receivable, eligible inventory and eligible fixed assets.  Provided specific conditions are met, our restated credit agreement permits cash dividends, stock repurchases, acquisitions, permissible debt financing and capital expenditures.

Our Canadian Credit Agreement (as amended) with GE Canada Finance Holding Company, for itself and as agent for the lenders, provides for a $10 million revolving credit facility that expires in March 2018.  The Canadian $10 million line of credit is part of the $250 million available for borrowing under our restated credit agreement with General Electric Capital Corporation.

The Canadian Credit Agreement is guaranteed and secured by us and certain of our wholly-owned subsidiaries.  Direct borrowings under the amended credit agreement bear interest at the same rate as our restated credit agreement with General Electric Capital Corporation.  As of March 31, 2015, we have no outstanding borrowings under the Canadian Credit Agreement.

In order to reduce our accounts receivable balances and improve our cash flow, we sell undivided interests in certain of our receivables to financial institutions.  We enter these agreements at our discretion when we determine that the cost of factoring is less than the cost of servicing our receivables with existing debt.  Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables, and do not service the receivables after the sale.  As such, these transactions are being accounted for as a sale.

Pursuant to these agreements, we sold $144 million and $177.4 million of receivables during the three months ended March 31, 2015 and 2014, respectively.  A charge in the amount of $2.9 million and $3.4 million related to the sale of receivables is included in selling, general and administrative expense in our consolidated statements of operations for the three months ended March 31, 2015 and 2014, respectively.  If we do not enter into these arrangements or if any of the financial institutions with which we enter into these arrangements were to experience financial difficulties or otherwise terminate these arrangements, our financial condition, results of operations and cash flows could be materially and adversely affected by delays or failures to collect future trade accounts receivable.

In February 2015, our Board of Directors authorized the purchase of up to $10 million of our common stock under a stock repurchase program.  Stock will be purchased from time to time, in the open market or through private transactions, as market conditions warrant.  We did not make any stock repurchases under the program during the first quarter of 2015.

We anticipate that our cash flow from operations, available cash and available borrowings under our revolving credit facility will be adequate to meet our future liquidity needs for at least the next twelve months.  Significant assumptions underlie this belief, including, among other things, that there will be no material adverse developments in our business, liquidity or capital requirements.  If material adverse developments were to occur in any of these areas, there can be no assurance that our business will generate sufficient cash flow from operations, or that future borrowings will be available to us under our revolving credit facility in amounts sufficient to enable us to pay the principal and interest on our indebtedness, or to fund our other liquidity needs.  In addition, if we default on any of our indebtedness, or breach any financial covenant in our revolving credit facility, our business could be adversely affected. For further information regarding the risks of our business, please refer to the Risk Factors section of our Annual Report on Form 10-K for the year ending December 31, 2014.

26

The following table summarizes our contractual commitments as of March 31, 2015 and expiration dates of commitments through 2023:

(In thousands)	2015		2016		2017		2018		2019			2020- 2023	Total
Lease obligations	$	5,722	$	6,235	$	4,008	$	2,293	$	865	$	1,356	$	20,479
Postretirement and pension benefits		8,836		1,300		68		64		60		226		10,554
Severance payments related to restructuring and integration		527		91		23		12		2		—		655
Total commitments	$	15,085	$	7,626	$	4,099	$	2,369	$	927	$	1,582	$	31,688

Indebtedness under our revolving credit facilities is not included in the table above as it is reported as a current liability in our consolidated balance sheets.  As of March 31, 2015, amounts outstanding under our revolving credit facilities were $71.6 million.

Critical Accounting Policies

We have identified the policies below as critical to our business operations and the understanding of our results of operations.  The impact and any associated risks related to these policies on our business operations is discussed throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” where such policies affect our reported and expected financial results. There have been no material changes to our critical accounting policies and estimates from the information provided in Note 1 of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2014.  You should be aware that preparation of our consolidated quarterly financial statements in this Report requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods.  We can give no assurances that actual results will not differ from those estimates.  Although we do not believe that there is a reasonable likelihood that there will be a material change in the future estimate or in the assumptions that we use in calculating the estimate, unforeseen changes in the industry, or business could materially impact the estimate and may have a material adverse effect on our business, financial condition and results of operations.

Revenue Recognition.  We derive our revenue primarily from sales of replacement parts for motor vehicles from both our Engine Management and Temperature Control Segments.  We recognize revenues when products are shipped and title has been transferred to a customer, the sales price is fixed and determinable, and collection is reasonably assured.  For some of our sales of remanufactured products, we also charge our customers a deposit for the return of a used core component which we can use in our future remanufacturing activities.  Such deposit is not recognized as revenue but rather carried as a core liability.  The liability is extinguished when a core is actually returned to us.  We estimate and record provisions for cash discounts, quantity rebates, sales returns and warranties in the period the sale is recorded, based upon our prior experience and current trends.  As described below, significant management judgments and estimates must be made and used in estimating sales returns and allowances relating to revenue recognized in any accounting period.

Inventory Valuation.  Inventories are valued at the lower of cost or market.  Cost is determined on the first-in, first-out basis.  Where appropriate, standard cost systems are utilized for purposes of determining cost; the standards are adjusted as necessary to ensure they approximate actual costs.  Estimates of lower of cost or market value of inventory are determined based upon current economic conditions, historical sales quantities and patterns and, in some cases, the specific risk of loss on specifically identified inventories.

27

We also evaluate inventories on a regular basis to identify inventory on hand that may be obsolete or in excess of current and future projected market demand.  For inventory deemed to be obsolete, we provide a reserve on the full value of the inventory. Inventory that is in excess of current and projected use is reduced by an allowance to a level that approximates our estimate of future demand.  Future projected demand requires management judgment and is based upon (a) our review of historical trends and (b) our estimate of projected customer specific buying patterns and trends in the industry and markets in which we do business.  Using rolling twelve month historical information, we estimate future demand on a continuous basis.  As such, the historical volatility of such estimates has been minimal.

We utilize cores (used parts) in our remanufacturing processes for air conditioning compressors.  The production of air conditioning compressors involves the rebuilding of used cores, which we acquire either in outright purchases from used parts brokers or from returns pursuant to an exchange program with customers.  Under such exchange programs, we reduce our inventory, through a charge to cost of sales, when we sell a finished good compressor, and put back to inventory the used core exchanged at standard cost through a credit to cost of sales when it is actually received from the customer.

Sales Returns and Other Allowances and Allowance for Doubtful Accounts.  We must make estimates of potential future product returns related to current period product revenue. We analyze historical returns, current economic trends, and changes in customer demand when evaluating the adequacy of the sales returns and other allowances. Significant judgments and estimates must be made and used in connection with establishing the sales returns and other allowances in any accounting period.  At March 31, 2015, the allowance for sales returns was $35.8 million.  Similarly, we must make estimates of the uncollectability of our accounts receivable. We specifically analyze accounts receivable and analyze historical bad debts, customer concentrations, customer credit‑worthiness, current economic trends and changes in our customer payment terms when evaluating the adequacy of the allowance for doubtful accounts.  At March 31, 2015, the allowance for doubtful accounts and for discounts was $6.6 million.

New Customer Acquisition Costs.  New customer acquisition costs refer to arrangements pursuant to which we incur change-over costs to induce a new customer to switch from a competitor’s brand.  In addition, change-over costs include the costs related to removing the new customer’s inventory and replacing it with Standard Motor Products inventory commonly referred to as a stocklift.  New customer acquisition costs are recorded as a reduction to revenue when incurred.

Accounting for Income Taxes.  As part of the process of preparing our consolidated financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves estimating our actual current tax expense together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within our consolidated balance sheet. We must then assess the likelihood that our deferred tax assets will be recovered from future taxable income, and to the extent we believe that it is more likely than not that the deferred tax assets will not be recovered, we must establish a valuation allowance. To the extent we establish a valuation allowance or increase or decrease this allowance in a period, we must include an expense or recovery, respectively, within the tax provision in the statement of operations.

We maintain valuation allowances when it is more likely than not that all or a portion of a deferred asset will not be realized.  In determining whether a valuation allowance is warranted, we evaluate factors such as prior earnings history, expected future earnings, carryback and carryforward periods and tax strategies. We consider all positive and negative evidence to estimate if sufficient future taxable income will be generated to realize the deferred tax asset. We consider cumulative losses in recent years as well as the impact of one-time events in assessing our pre-tax earnings.  Assumptions regarding future taxable income require significant judgment. Our assumptions are consistent with estimates and plans used to manage our business which includes restructuring and integration initiatives that are expected to generate significant savings in future periods.

28

The valuation allowance of $0.4 million as of March 31, 2015 is intended to provide for the uncertainty regarding the ultimate realization of our U.S. foreign tax credit carryovers , state investment tax credit carryovers and foreign net operating loss carryovers. The assessment of the adequacy of our valuation allowance is based on our estimates of taxable income in these jurisdictions and the period over which our deferred tax assets will be recoverable.

In the event that actual results differ from these estimates, or we adjust these estimates in future periods for current trends or expected changes in our estimating assumptions, we may need to modify the level of the valuation allowance which could materially impact our business, financial condition and results of operations.

In accordance with generally accepted accounting practices, we recognize in our financial statements only those tax positions that meet the more-likely-than-not-recognition threshold. We establish tax reserves for uncertain tax positions that do not meet this threshold.  As of March 31, 2015, we do not believe there is a need to establish a liability for uncertain tax positions.  Penalties associated with income tax matters are included in the provision for income taxes in our consolidated statement of operations.

Valuation of Long‑Lived and Intangible Assets and Goodwill.  At acquisition, we estimate and record the fair value of purchased intangible assets, which primarily consists of customer relationships, trademarks and trade names, patents and non-compete agreements.  The fair values of these intangible assets are estimated based on our assessment.  Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations.  Goodwill and certain other intangible assets having indefinite lives are not amortized to earnings, but instead are subject to periodic testing for impairment.  Intangible assets determined to have definite lives are amortized over their remaining useful lives.

We assess the impairment of long‑lived assets, identifiable intangibles assets and goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable.  With respect to goodwill and identifiable intangible assets having indefinite lives, we test for impairment on an annual basis or in interim periods if an event occurs or circumstances change that may indicate the fair value is below its carrying amount.  Factors we consider important, which could trigger an impairment review, include the following: (a) significant underperformance relative to expected historical or projected future operating results; (b) significant changes in the manner of our use of the acquired assets or the strategy for our overall business; and (c) significant negative industry or economic trends.  We review the fair values using the discounted cash flows method and market multiples.

When performing our evaluation of goodwill for impairment, if we conclude qualitatively that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, than the two-step impairment test is not required.  If we are unable to reach this conclusion, then we would perform the two-step impairment test.  Initially, the fair value of the reporting unit is compared to its carrying amount.  To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit; we are required to perform a second step, as this is an indication that the reporting unit goodwill may be impaired.  In this step, we compare the implied fair value of the reporting unit goodwill with the carrying amount of the reporting unit goodwill and recognize a charge for impairment to the extent the carrying value exceeds the implied fair value. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit to all of the assets (recognized and unrecognized) and liabilities of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill.  In addition, identifiable intangible assets having indefinite lives are reviewed for impairment on an annual basis using a methodology consistent with that used to evaluate goodwill.

Intangible assets having definite lives and other long-lived assets are reviewed for impairment whenever events such as product discontinuance, plant closures, product dispositions or other changes in circumstances indicate that the carrying amount may not be recoverable.  In reviewing for impairment, we compare the carrying value of such assets to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition.  When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets fair value and their carrying value.

29

There are inherent assumptions and estimates used in developing future cash flows requiring our judgment in applying these assumptions and estimates to the analysis of identifiable intangibles and long‑lived asset impairment including projecting revenues, interest rates, tax rates and the cost of capital.  Many of the factors used in assessing fair value are outside our control and it is reasonably likely that assumptions and estimates will change in future periods.  These changes can result in future impairments.  In the event our planning assumptions were modified resulting in impairment to our assets, we would be required to include an expense in our statement of operations, which could materially impact our business, financial condition and results of operations.

Retirement and Postretirement Medical Benefits.  Each year, we calculate the costs of providing retiree benefits under the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 712, Nonretirement Postemployment Benefits, and FASB ASC 715, Retirement Benefits.  The determination of defined benefit pension and postretirement plan obligations and their associated costs requires the use of actuarial computations to estimate participant plan benefits the employees will be entitled to.  The key assumptions used in making these calculations are the eligibility criteria of participants and the discount rate used to value the future obligation.  The discount rate reflects the yields available on high-quality, fixed-rate debt securities.

Share-Based Compensation.  The provisions of FASB ASC 718, Stock Compensation, require the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors based on estimated fair values on the grant date.  The value of the portion of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service periods in our consolidated statement of operations.  Forfeitures are estimated at the time of grant based on historical trends in order to estimate the amount of share-based awards that will ultimately vest.  We monitor actual forfeitures for any subsequent adjustment to forfeiture rates.

Environmental Reserves.  We are subject to various U.S. Federal, state and local environmental laws and regulations and are involved in certain environmental remediation efforts. We estimate and accrue our liabilities resulting from such matters based upon a variety of factors including the assessments of environmental engineers and consultants who provide estimates of potential liabilities and remediation costs. Such estimates are not discounted to reflect the time value of money due to the uncertainty in estimating the timing of the expenditures, which may extend over several years.  Potential recoveries from insurers or other third parties of environmental remediation liabilities are recognized independently from the recorded liability, and any asset related to the recovery will be recognized only when the realization of the claim for recovery is deemed probable.

Asbestos Litigation.  We are responsible for certain future liabilities relating to alleged exposure to asbestos-containing products.  In accordance with our accounting policy, our most recent actuarial study as of August 31, 2014 estimated an undiscounted liability for settlement payments, excluding legal costs and any potential recovery from insurance carriers, ranging from $36.1 million to $55.4 million for the period through 2058.  Based on the information contained in the actuarial study and all other available information considered by us, we have concluded that no amount within the range of settlement payments was more likely than any other and, therefore, in assessing our asbestos liability we compare the low end of the range to our recorded liability to determine if an adjustment is required.  Based upon the results of the August 31, 2014 actuarial study, in September 2014 we increased our asbestos liability to $36.1 million, the low end of the range, and recorded an incremental pre-tax provision of $12.8 million in loss from discontinued operations in the accompanying statement of operations.  In addition, according to the updated study, legal costs, which are expensed as incurred and reported in loss from discontinued operations, are estimated to range from $43 million to $76.4 million during the same period.  We will continue to perform an annual actuarial analysis during the third quarter of each year for the foreseeable future.  Based on this analysis and all other available information, we will continue to reassess the recorded liability and, if deemed necessary, record an adjustment to the reserve, which will be reflected as a loss or gain from discontinued operations.

30

Other Loss Reserves.  We have other loss exposures, for such matters as legal claims and legal proceedings.  Establishing loss reserves for these matters requires estimates, judgment of risk exposure, and ultimate liability.  We record provisions when the liability is considered probable and reasonably estimable.  Significant judgment is required in both the determination of probability and the determination as to whether an exposure can be reasonably estimated.  As additional information becomes available, we reassess our potential liability related to these matters.  Such revisions of the potential liabilities could have a material adverse effect on our business, financial condition or results of operations.

Recently Issued Accounting Pronouncements

Discontinued Operations and Disclosures of Disposals of Components of an Entity

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements.  Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.”  The new standard applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date.  The amendment is effective for annual reporting periods beginning after December 15, 2014. We adopted the new standard as of January 1, 2015.  The adoption of the new standard did not change the manner in which we present discontinued operations in our consolidated financial statements.

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance.  Under the new guidance, “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.”  The new standard provides entities the option of using either a full retrospective or a modified approach to adopt the guidance.  The new standard is effective for annual reporting periods beginning after December 15, 2016, which for us is January 1, 2017, and interim periods within those annual periods; however, the FASB recently proposed a one year deferral of the effective date of the standard.  Early adoption is not permitted.  We are currently evaluating the impact, if any, this new standard will have on our consolidated financial statements and have not yet determined the method of adoption.

Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern

In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which provides guidance on determining when and how to disclose going concern uncertainties in the consolidated financial statements.  Under the new guidance, management would be required to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued.  Certain disclosures must be provided if “conditions or events raise substantial doubt about an entity’s ability to continue as a going concern.”  The new standard is effective for annual reporting periods ending after December 15, 2016, which for us is December 31, 2016, and interim periods thereafter.  Early adoption is permitted.  Upon adoption, although we do not anticipate that the new standard will have an impact on our disclosures, we will consider the new standard when conducting our interim and annual assessments of our ability to continue as a going concern.

31

Income Statement - Extraordinary and Unusual Items

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, (“ASU 2015-01”), which removes the concept of extraordinary items from U.S. GAAP.  Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual and occurs infrequently.  This separate, net-of-tax presentation will no longer be allowed.  The existing requirement to separately disclose events or transactions that are unusual or occur infrequently on a pre-tax basis within continuing operations in the income statement has been retained.  The new guidance requires similar separate presentation of items that are both unusual and infrequent.  The new standard is effective for periods beginning after December 15, 2015, which for us is January 1, 2016.  Early adoption is permitted, but only as of the beginning of the fiscal year of adoption.  Upon adoption, we will present transactions that are both unusual and infrequent, if any, on a pre-tax basis within continuing operations in the income statement.

Simplifying the Presentation of Debt Issuance Costs

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, (“ASU 2015-03”), which requires that debt issuance costs be presented in the balance sheet as a direct deduction of the carrying value of the associated debt liability.  Under the existing guidance, debt issuance costs are required to be presented in the balance sheet as a deferred charge (ie, an asset).  The new standard is effective for periods beginning after December 15, 2015, which for us is January 1, 2016.  Early adoption is permitted for financial statements that have not been previously issued.  The new standard should be applied retrospectively to all periods presented in the financial statements.  Upon adoption, we will present debt financing costs as a deduction of the carrying value of our revolving credit facility debt instead of presenting such costs as an asset in our consolidated balance sheets.

32

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Quantitative and Qualitative Disclosure about Market Risk

We are exposed to market risk, primarily related to foreign currency exchange and interest rates.  These exposures are actively monitored by management.  Our exposure to foreign exchange rate risk is due to certain costs, revenues and borrowings being denominated in currencies other than one of our subsidiary’s functional currency. Similarly, we are exposed to market risk as the result of changes in interest rates, which may affect the cost of our financing. It is our policy and practice to use derivative financial instruments only to the extent necessary to manage exposures.  We do not hold or issue derivative financial instruments for trading or speculative purposes.  As of March 31, 2015, we do not have any derivative financial instruments.

Exchange Rate Risk

We have exchange rate exposure, primarily, with respect to the Canadian Dollar, the Euro, the British Pound, the Polish Zloty, the Mexican Peso, the Taiwan Dollar, the Chinese Yuan Renminbi and the Hong Kong Dollar.  As of March 31, 2015 and December 31, 2014, our monetary assets and liabilities which are subject to this exposure are immaterial, therefore, the potential immediate loss to us that would result from a hypothetical 10% change in foreign currency exchange rates would not be expected to have a material impact on our earnings or cash flows.  This sensitivity analysis assumes an unfavorable 10% fluctuation in the exchange rates affecting the foreign currencies in which monetary assets and liabilities are denominated and does not take into account the incremental effect of such a change on our foreign currency denominated revenues.

Interest Rate Risk

We manage our exposure to interest rate risk through the proportion of fixed rate debt and variable rate debt in our debt portfolio.  To manage a portion of our exposure to interest rate changes, we have in the past entered into interest rate swap agreements.  We invest our excess cash in highly liquid short-term investments.  Our percentage of variable rate debt to total debt was 99.7% at March 31, 2015 and 99.5% at December 31, 2014.

Other than the aforementioned, there have been no significant changes to the information presented in Item 7A (Market Risk) of our Annual Report on Form 10-K for the year ended December 31, 2014.

33

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures.

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in reports 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 our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Exchange Act, as of the end of the period covered by this Report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Report.

(b) Changes in Internal Control Over Financial Reporting.

During the quarter ended March 31, 2015, we have not made any changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

We review, document and test our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in the 2013 Internal Control – Integrated Framework.  We may from time to time make changes aimed at enhancing their effectiveness and to ensure that our systems evolve with our business. These efforts may lead to various changes in our internal control over financial reporting.

34

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In 1986, we acquired a brake business, which we subsequently sold in March 1998 and which is accounted for as a discontinued operation. When we originally acquired this brake business, we assumed future liabilities relating to any alleged exposure to asbestos-containing products manufactured by the seller of the acquired brake business. In accordance with the related purchase agreement, we agreed to assume the liabilities for all new claims filed on or after September 2001. Our ultimate exposure will depend upon the number of claims filed against us on or after September 2001 and the amounts paid for indemnity and defense thereof.  At March 31, 2015, approximately 2,150 cases were outstanding for which we may be responsible for any related liabilities.  Since inception in September 2001 through March 31, 2015, the amounts paid for settled claims are approximately $17.7 million.

In evaluating our potential asbestos-related liability, we have considered various factors including, among other things, an actuarial study of the asbestos related liabilities performed by an independent actuarial firm, our settlement amounts and whether there are any co-defendants, the jurisdiction in which lawsuits are filed, and the status and results of settlement discussions.  As is our accounting policy, we consider the advice of actuarial consultants with experience in assessing asbestos-related liabilities to estimate our potential claim liability.  The methodology used to project asbestos-related liabilities and costs in our actuarial study considered: (1) historical data available from publicly available studies; (2) an analysis of our recent claims history to estimate likely filing rates into the future; (3) an analysis of our currently pending claims; and (4) an analysis of our settlements to date in order to develop average settlement values.

The most recent actuarial study was performed as of August 31, 2014.  The updated study has estimated an undiscounted liability for settlement payments, excluding legal costs and any potential recovery from insurance carriers, ranging from $36.1 million to $55.4 million for the period through 2058. The change from the prior year study was an $11.7 million increase for the low end of the range and an $18 million increase for the high end of the range.  The increase in the estimated undiscounted liability from the prior year study at both the low end and high end of the range reflects historical data and certain assumptions with respect to events that may occur in the future.  Based on the information contained in the actuarial study and all other available information considered by us, we have concluded that no amount within the range of settlement payments was more likely than any other and, therefore, in assessing our asbestos liability we compare the low end of the range to our recorded liability to determine if an adjustment is required.  Based upon the results of the August 31, 2014 actuarial study, in September 2014 we increased our asbestos liability to $36.1 million, the low end of the range, and recorded an incremental pre-tax provision of $12.8 million in loss from discontinued operations in the accompanying statement of operations.  Legal costs, which are expensed as incurred and reported in loss from discontinued operations in the accompanying statement of operations, are estimated, according to the updated study, to range from $43 million to $76.4 million for the period through 2058.

We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future. Given the uncertainties associated with projecting such matters into the future and other factors outside our control, we can give no assurance that additional provisions will not be required. We will continue to monitor the circumstances surrounding these potential liabilities in determining whether additional provisions may be necessary.  At the present time, however, we do not believe that any additional provisions would be reasonably likely to have a material adverse effect on our liquidity or consolidated financial position.

We are currently involved in various other legal claims and legal proceedings (some of which may involve substantial amounts), including claims related to one of our divestitures, commercial disputes, product liability, employment, and environmental.  Although these legal claims and legal proceedings are subject to inherent uncertainties, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the ultimate outcome of these matters will not, either individually or in the aggregate, have a material adverse effect on our business, financial condition or results of operations.  We may at any time determine that settling any of these matters is in our best interests, which settlement may include substantial payments. Although we cannot currently predict the specific amount of any liability that may ultimately arise with respect to any of these matters, we will record provisions when the liability is considered probable and reasonably estimable.  Significant judgment is required in both the determination of probability and the determination as to whether an exposure can be reasonably estimated.  As additional information becomes available, we reassess our potential liability related to these matters.  Such revisions of the potential liabilities could have a material adverse effect on our business, financial condition or results of operations.

35

ITEM 6. EXHIBITS

31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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.

	STANDARD MOTOR PRODUCTS, INC.
	(Registrant)
Date: May 4, 2015	/s/ James J. Burke
	James J. Burke
	Vice President Finance,
	Chief Financial Officer
	(Principal Financial and
	Accounting Officer)

36

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

EXHIBIT INDEX

Exhibit Number
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document

** In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to the Original Filing shall be deemed to be “furnished” and not “filed.”

37

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Lawrence I. Sills, certify that:

1. I have reviewed this report on Form 10-Q of Standard Motor Products, 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(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

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

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

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

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

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

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

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

Date: May 4, 2015
	/s/ Lawrence I. Sills
	Lawrence I. Sills
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James J. Burke, certify that:

1. I have reviewed this report on Form 10-Q of Standard Motor Products, 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(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

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

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

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

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

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

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

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

Date: May 4, 2015
	/s/ James J. Burke
	James J. Burke
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Standard Motor Products, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lawrence I. Sills, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(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 result of operations of the Company.

/s/ Lawrence I. Sills

Lawrence I. Sills

Chief Executive Officer

May 4, 2015

*A signed original of this written statement required by Section 906 has been provided to Standard Motor Products, Inc. and will be retained by Standard Motor Products, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Standard Motor Products, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James J. Burke, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(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 result of operations of the Company.

/s/ James J. Burke

James J. Burke

Chief Financial Officer

May 4, 2015

*A signed original of this written statement required by Section 906 has been provided to Standard Motor Products, Inc. and will be retained by Standard Motor Products, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Credit Facilities and Long-Term Debt, Total Debt Outstanding (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Credit Facilities and Long-Term Debt [Abstract]
Revolving credit facilities	$ 71,567	$ 56,558
Other	194	258
Total debt	71,761	56,816
Current maturities of debt	71,689	56,733
Long-term debt	$ 72	$ 83

XML

Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Basic Net Earnings Per Common Shares [Abstract]
Earnings from continuing operations	$ 9,339	$ 12,407
Loss from discontinued operation	(391)	(682)
Net earnings available to common stockholders	8,948	11,725
Weighted average common shares outstanding (in shares)	22,910,889	22,947,241
Earnings from continuing operations per common share (in dollars per share)	$ 0.41	$ 0.54
Loss from discontinued operations per common share (in dollars per share)	$ (0.02)	$ (0.03)
Net earnings per common share - Basic (in dollars per share)	$ 0.39	$ 0.51
Diluted Net Earnings Per Common Share [Abstract]
Earnings from continuing operations	9,339	12,407
Loss from discontinued operation	(391)	(682)
Net earnings available to common stockholders	$ 8,948	$ 11,725
Plus incremental shares from assumed conversions [Abstract]
Dilutive effect of restricted stock and performance stock (in shares)	323,000	272,000
Dilutive effect of stock options (in shares)	4,000	6,000
Weighted average common shares outstanding - Diluted (in shares)	23,238,050	23,224,698
Earnings from continuing operations per common share (in dollars per share)	$ 0.40	$ 0.53
Loss from discontinued operations per common share (in dollars per share)	$ (0.01)	$ (0.03)
Net earnings per common share - Diluted (in dollars per share)	$ 0.39	$ 0.50
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	3,000	6,000
Restricted and Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	358,000	308,000

XML

Employee Benefits (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Employee Stock Ownership Plan and Trust (ESOP) [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Additional shares contributed to ESOP (in shares)	58,000
Shares released from trust (in shares)	58,200
Total remaining balance of shares in the ESOP (in shares)	200
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 41,000
Interest cost	54,000	65,000
Amortization of prior service cost	0	0
Actuarial net loss	184,000	57,000
Net periodic benefit cost (credit)	238,000	163,000
Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0
Interest cost	7,000	8,000
Amortization of prior service cost	(29,000)	(754,000)
Actuarial net loss	434,000	535,000
Net periodic benefit cost (credit)	412,000	(211,000)
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]
Contributions by employer on behalf of employees	200,000
Estimated future employer contributions in current fiscal year	2,300,000
Supplemental Executive Retirement Plan [Member]
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]
Employer discretionary contribution amount	$ 500,000

XML

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies [Abstract]

Changes in Product Warranties

The following table provides the changes in our product warranties (in thousands):

	Three Months Ended
	March 31,
	2015			2014
Balance, beginning of period	$	19,328		$	18,041
Liabilities accrued for current year sales		21,036			19,191
Settlements of warranty claims		(20,379	)		(16,858	)
Balance, end of period	$	19,985		$	20,374

XML

Acquired Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2015

Acquired Intangible Assets [Abstract]

Acquired Identifiable Intangible Assets

Acquired identifiable intangible assets consist of the following:

	March 31, 2015			December 31, 2014
	(In thousands)
Customer relationships	$	48,473		$	48,646
Trademarks and trade names		6,800			6,800
Non-compete agreements		970			970
Patents and supply contracts		723			723
Leaseholds		160			160
Total acquired intangible assets		57,126			57,299
Less accumulated amortization (1)		(25,373	)		(24,120	)
Net acquired intangible assets	$	31,753		$	33,179

(1) Applies to all intangible assets, except for trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being amortized.

XML

Commitments and Contingencies (Details) (USD $)	3 Months Ended		163 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015 Claim
Changes in product warranties [Roll forward]
Balance, beginning of period	$ 19,328,000	$ 18,041,000
Liabilities accrued for current year sales	21,036,000	19,191,000
Settlements of warranty claims	(20,379,000)	(16,858,000)
Balance, end of period	19,985,000	20,374,000	19,985,000
Asbestos [Member]
Loss Contingencies [Line Items]
Pending claims, approximate number	2,150		2,150
Reimbursement from insurance carrier for settled claims			17,700,000
Increase for low end of range	11,700,000
Increase for high end of range	18,000,000
Incremental pre-tax provision	12,800,000
Range of possible loss, minimum	43,000,000		43,000,000
Range of possible loss, maximum	76,400,000		76,400,000
Asbestos [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Estimated legal costs	36,100,000		36,100,000
Asbestos [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Estimated legal costs	$ 55,400,000		$ 55,400,000

XML

Credit Facilities and Long-Term Debt, Canadian Revolving Credit Facility (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 250
Expiration date	Mar. 31, 2018
GE Canada Finance Holding Company Credit Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	10
Outstanding borrowings under credit facility	0
Line of Credit [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 10

XML

Inventories (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Inventories [Abstract]
Finished goods	$ 189,976	$ 185,655
Work-in-process	5,321	4,722
Raw materials	88,404	87,674
Total inventories	$ 283,701	$ 278,051

XML

Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Carrying Amount [Member]
Carrying amounts and estimated fair values of financial instruments [Abstract]
Cash and cash equivalents	$ 8,119	$ 13,728
Deferred compensation	11,006	9,811
Short term borrowings	71,689	56,733
Long-term debt	72	83
Fair Value [Member]
Carrying amounts and estimated fair values of financial instruments [Abstract]
Cash and cash equivalents	8,119	13,728
Deferred compensation	11,006	9,811
Short term borrowings	71,689	56,733
Long-term debt	$ 72	$ 83

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2015

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2.    Summary of Significant Accounting Policies

The preparation of consolidated annual and quarterly financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods.  We have made a number of estimates and assumptions in the preparation of these consolidated financial statements.  We can give no assurance that actual results will not differ from those estimates.  Some of the more significant estimates include allowances for doubtful accounts, realizability of inventory, goodwill and other intangible assets, depreciation and amortization of long-lived assets, product liability, pensions and other postretirement benefits, asbestos, environmental and litigation matters, the valuation of deferred tax assets and sales return allowances.

There have been no material changes to our critical accounting policies and estimates from the information provided in Note 1 of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2014.

Recently Issued Accounting Pronouncements

Discontinued Operations and Disclosures of Disposals of Components of an Entity

In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU 2014-08"), which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements.  Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and "represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results."  The new standard applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date.  The amendment is effective for annual reporting periods beginning after December 15, 2014.  We adopted the new standard as of January 1, 2015. The adoption of the new standard did not change the manner in which we present discontinued operations in our consolidated financial statements.

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance.  Under the new guidance, “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.”  The new standard provides entities the option of using either a full retrospective or a modified approach to adopt the guidance.  The new standard is effective for annual reporting periods beginning after December 15, 2016, which for us is January 1, 2017, and interim periods within those annual periods; however, the FASB recently proposed a one year deferral of the effective date of the standard.  Early adoption is not permitted.  We are currently evaluating the impact, if any, this new standard will have on our consolidated financial statements and have not yet determined the method of adoption.

Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern

In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"), which provides guidance on determining when and how to disclose going concern uncertainties in the consolidated financial statements.  Under the new guidance, management would be required to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued.  Certain disclosures must be provided if "conditions or events raise substantial doubt about an entity's ability to continue as a going concern."  The new standard is effective for annual reporting periods ending after December 15, 2016, which for us is December 31, 2016, and interim periods thereafter.  Early adoption is permitted.  Upon adoption, although we do not anticipate that the new standard will have an impact on our disclosures, we will consider the new standard when conducting our interim and annual assessments of our ability to continue as a going concern.

Income Statement - Extraordinary and Unusual Items

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, ("ASU 2015-01"), which removes the concept of extraordinary items from U.S. GAAP. Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual and occurs infrequently. This separate, net-of-tax presentation will no longer be allowed. The existing requirement to separately disclose events or transactions that are unusual or occur infrequently on a pre-tax basis within continuing operations in the income statement has been retained. The new guidance requires similar separate presentation of items that are both unusual and infrequent. The new standard is effective for periods beginning after December 15, 2015, which for us is January 1, 2016. Early adoption is permitted, but only as of the beginning of the fiscal year of adoption. Upon adoption, we will present transactions that are both unusual and infrequent on a pre-tax basis within continuing operations in the income statement.

Simplifying the Presentation of Debt Issuance Costs

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, ("ASU 2015-03"), which requires that debt issuance costs be presented in the balance sheet as a direct deduction of the carrying value of the associated debt liability. Under the existing guidance, debt issuance costs are required to be presented in the balance sheet as a deferred charge (i.e., an asset).  The new standard is effective for periods beginning after December 15, 2015, which for us is January 1, 2016.  Early adoption is permitted for financial statements that have not been previously issued.  The new standard should be applied retrospectively to all periods presented in the financial statements.  Upon adoption, we will present debt financing costs as a deduction of the carrying value of our revolving credit facility debt instead of presenting such costs as an asset in our consolidated balance sheets.

XML

Accumulated Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance	$ (2,652)
Other comprehensive income before reclassifications	(3,066)
Amounts reclassified from accumulated other comprehensive income	348
Other comprehensive income, net	(2,718)
Ending balance	(5,370)
Foreign Currency Translation Adjustments [Member]
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance	(219)
Other comprehensive income before reclassifications	(3,074)
Amounts reclassified from accumulated other comprehensive income	0
Other comprehensive income, net	(3,074)
Ending balance	(3,293)
Unrecognized Pension and Postretirement Benefit Costs (Credit) [Member]
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance	(2,433)
Other comprehensive income before reclassifications	8
Amounts reclassified from accumulated other comprehensive income	348
Other comprehensive income, net	356
Ending balance	$ (2,077)

XML

Employee Benefits (Tables)

3 Months Ended

Mar. 31, 2015

Employee Benefits [Abstract]

Components of Net Periodic Benefit Cost (Credit) for our Defined Benefit Plans and Postretirement Benefit Plans

The components of net periodic benefit cost (credit) for our defined benefit plans and postretirement benefit plans for the three months ended March 31, 2015 and 2014 were as follows (in thousands):

	Three Months Ended
	March 31,
Pension benefits	2015			2014
Service cost	$	—		$	41
Interest cost		54			65
Amortization of prior service cost		—			—
Actuarial net loss		184			57
Net periodic benefit cost	$	238		$	163
Postretirement benefits
Service cost	$	—		$	—
Interest cost		7			8
Amortization of prior service cost		(29	)		(754	)
Actuarial net loss		434			535
Net periodic benefit cost (credit)	$	412		$	(211	)

XML

Stock-Based Compensation Plans (Tables)

3 Months Ended

Mar. 31, 2015

Stock-Based Compensation Plans [Abstract]

Summary of Changes in Outstanding Stock Options

The following is a summary of the changes in outstanding stock options for the three months ended March 31, 2015:

						Weighted Average
						Remaining Contractual
	Shares			Weighted Average Exercise Price		Term (Years)
Outstanding at December 31, 2014		9,875		$	10.99		0.4
Expired		—			—		—
Exercised		(3,125	)		11.14		—
Forfeited, other		—			—		—
Outstanding at March 31, 2015		6,750		$	10.92		0.1
Options exercisable at March 31, 2015		6,750		$	10.92		0.1

Restricted and Performance-based Share Activity

Our restricted and performance-based share activity was as follows for the three months ended March 31, 2015:

	Shares			Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2014		749,018		$	24.62
Granted		—			—
Vested		(30,343	)		36.14
Forfeited		(1,100	)		22.30
Balance at March 31, 2015		717,575		$	24.13

XML

Accumulated Other Comprehensive Income, Reclassified (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Amortization of pension and postretirement benefit plans [Abstract]
Prior service benefit	$ (29)		$ (754)
Unrecognized loss	618		592
Income tax expense	(241)		58
Total reclassifications for the period	(348)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Amortization of pension and postretirement benefit plans [Abstract]
Prior service benefit	(29)	[1]
Unrecognized loss	618	[1]
Total before income tax	589
Income tax expense	(241)
Total reclassifications for the period	$ 348

[1] These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement benefit costs, which are included in selling, general and administrative expenses in our consolidated statements of operations (see Note 10 for additional details)

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Measurements [Abstract]

Carrying Amounts and Estimated Fair Values of our Financial Instruments

The following is a summary of the carrying amounts and estimated fair values of our financial instruments at March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015				December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	8,119	$	8,119	$	13,728	$	13,728
Deferred compensation		11,006		11,006		9,811		9,811
Short term borrowings		71,689		71,689		56,733		56,733
Long-term debt		72		72		83		83

XML

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share

Reconciliations of the Earnings Available to Common Stockholders and the Shares used in Calculating Basic and Dilutive Net Earnings per Common Share

The following are reconciliations of the earnings available to common stockholders and the shares used in calculating basic and dilutive net earnings per common share (in thousands, except per share data):

	Three Months Ended
	March 31,
Basic Net Earnings Per Common Share:	2015			2014
Earnings from continuing operations	$	9,339		$	12,407
Loss from discontinued operations		(391	)		(682	)
Net earnings available to common stockholders	$	8,948		$	11,725
Weighted average common shares outstanding		22,911			22,947
Earnings from continuing operations per common share	$	0.41		$	0.54
Loss from discontinued operations per common share		(0.02	)		(0.03	)
Basic net earnings per common share	$	0.39		$	0.51
Diluted Net Earnings Per Common Share:
Earnings from continuing operations	$	9,339		$	12,407
Loss from discontinued operations		(391	)		(682	)
Net earnings available to common stockholders	$	8,948		$	11,725
Weighted average common shares outstanding		22,911			22,947
Plus incremental shares from assumed conversions:
Dilutive effect of restricted stock and performance stock		323			272
Dilutive effect of stock options		4			6
Weighted average common shares outstanding – Diluted		23,238			23,225
Earnings from continuing operations per common share	$	0.40		$	0.53
Loss from discontinued operations per common share		(0.01	)		(0.03	)
Diluted net earnings per common share	$	0.39		$	0.50

Anti-dilutive Securities Excluded from Computation of Earnings per Share

The shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands):

	Three Months Ended
	March 31,
	2015		2014
Stock options		3		6
Restricted and performance shares		358		308

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2015

Basis of Presentation [Abstract]

Basis of Presentation

Note 1.Basis of Presentation

Standard Motor Products, Inc. and subsidiaries (referred to as the "Company," "we," "us," or "our") is engaged in the manufacture and distribution of replacement parts for motor vehicles in the automotive aftermarket industry with an increasing focus on the original equipment service market.

The accompanying unaudited financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014.  The unaudited consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 50% equity ownership.  Our investments in unconsolidated affiliates are accounted for on the equity method, as we do not have a controlling financial interest. All significant inter-company items have been eliminated.

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year.

XML

Industry Segments (Tables)

3 Months Ended

Mar. 31, 2015

Industry Segments [Abstract]

Sales and Operating Income by Operating Segments

The following tables show our net sales, intersegement revenue and operating income by our operating segments (in thousands):

	Three Months Ended
	March 31,
	2015			2014
Net Sales
Engine Management	$	177,071		$	179,294
Temperature Control		48,728			51,485
All Other		1,790			1,973
Consolidated	$	227,589		$	232,752
Intersegment Revenue
Engine Management	$	5,023		$	5,953
Temperature Control		1,444			2,234
All Other		(6,467	)		(8,187	)
Consolidated	$	—		$	—
Operating Income
Engine Management	$	21,716		$	24,372
Temperature Control		(1,419	)		613
All Other		(5,382	)		(4,580	)
Consolidated	$	14,915		$	20,405

XML

Credit Facilities and Long-Term Debt, Deferred Financing Costs (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Deferred Financing Costs [Abstract]
Deferred financing costs	$ 2.1	$ 2.3
Amortization of financing costs reminder of 2015	0.5
Amortization of financing costs in 2016	0.7
Amortization of financing costs in 2017	0.7
Amortization of financing costs in 2018	$ 0.2

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
Net sales	$ 227,589	$ 232,752
Cost of sales	163,700	164,842
Gross profit	63,889	67,910
Selling, general and administrative expenses	49,198	47,594
Restructuring and integration expenses	57	171
Other income, net	281	260
Operating income	14,915	20,405
Other non-operating income (expense), net	151	(413)
Interest expense	426	308
Earnings from continuing operations before taxes	14,640	19,684
Provision for income taxes	5,301	7,277
Earnings from continuing operations	9,339	12,407
Loss from discontinued operations, net of income taxes	(391)	(682)
Net earnings	$ 8,948	$ 11,725
Net earnings per common share - Basic:
Earnings from continuing operations (in dollars per share)	$ 0.41	$ 0.54
Discontinued operations (in dollars per share)	$ (0.02)	$ (0.03)
Net earnings per common share - Basic (in dollars per share)	$ 0.39	$ 0.51
Net earnings per common share - Diluted:
Earnings from continuing operations (in dollars per share)	$ 0.40	$ 0.53
Discontinued operations (in dollars per share)	$ (0.01)	$ (0.03)
Net earnings per common share - Diluted (in dollars per share)	$ 0.39	$ 0.50
Dividends declared per share (in dollars per share)	$ 0.15	$ 0.13
Average number of common shares (in shares)	22,910,889	22,947,241
Average number of common shares and dilutive common shares (in shares)	23,238,050	23,224,698

XML

Stock-Based Compensation Plans (Details) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward]
Compensation expense, gross	$ 1,319,000	$ 972,000
Stock Options [Member]
Options, shares [Roll Forward]
Outstanding, beginning of period (in shares)	9,875
Expired (in shares)	0
Exercised (in shares)	(3,125)
Forfeited, other (in shares)	0
Outstanding, end of period (in shares)	6,750		9,875
Options exercisable, end of period (in shares)	6,750
Options, weighted average exercise price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 10.99
Expired (in dollars per share)	$ 0
Exercised (in dollars per share)	$ 11.14
Forfeited, other (in dollars per share)	$ 0
Outstanding, end of period (in dollars per share)	$ 10.92		$ 10.99
Options exercisable, end of period (in dollars per share)	$ 10.92
Options, additional disclosures [Abstract]
Outstanding, weighted average remaining contractual term, beginning of period	0 years 1 month 6 days		0 years 4 months 24 days
Outstanding, weighted average remaining contractual term, end of period	0 years 1 month 6 days		0 years 4 months 24 days
Options exercisable, weighted average remaining contractual term, end of period	0 years 1 month 6 days
Aggregate intrinsic value of outstanding stock options	200,000
Total intrinsic value of options exercised	100,000
Options granted (in shares)	0
Performance-based Shares [Member]
Restricted and Performance Stock Grants [Abstract]
Measuring period for performance-based shares	3 years
Award vesting rights	Selected executives and other key personnel are granted performance awards whose vesting is contingent upon meeting various performance measures with a retention feature. Performance-based shares are subject to a three-year measuring period and the achievement of performance targets and, depending upon the achievement of such performance targets, they may become vested on the third anniversary of the date of grant.
Restricted Shares [Member]
Restricted and Performance Stock Grants [Abstract]
Award vesting rights	Restricted shares granted to employees become fully vested upon the third anniversary of the date of grant; and for selected key executives, certain additional restricted share grants vest 25% upon the attainment of age 60, 25% upon the attainment of age 63 and become fully vested upon the attainment of age 65. Restricted shares granted to directors become fully vested upon the first anniversary of the date of grant.
Restricted and Performance Shares [Member]
Restricted and performance-based stock, shares [Roll Forward]
Beginning of period (in shares)	749,018
Granted (in shares)	0
Vested (in shares)	(30,343)
Forfeited (in shares)	(1,100)
End of period (in shares)	717,575
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward]
Beginning of period (in dollars per share)	$ 24.62
Granted (in dollars per share)	$ 0
Vested (in dollars per share)	$ 36.14
Forfeited (in dollars per share)	$ 22.30
End of period (in dollars per share)	$ 24.13
Compensation expense, gross	1,300,000	1,000,000
Compensation expense, net of tax	800,000	600,000
Unamortized compensation expense	$ 10,700,000
Restricted and Performance Shares [Member] | Employees [Member]
Restricted and Performance Stock Grants [Abstract]
Estimated forfeitures (in hundredths)	5.00%
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward]
Weighted average period of recognition for unrecognized compensation expense	5 years 1 month 6 days
Restricted and Performance Shares [Member] | Executives [Member]
Restricted and Performance Stock Grants [Abstract]
Estimated forfeitures (in hundredths)	0.00%
Restricted and Performance Shares [Member] | Directors [Member]
Restricted and Performance Stock Grants [Abstract]
Estimated forfeitures (in hundredths)	0.00%
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward]
Weighted average period of recognition for unrecognized compensation expense	0 years 1 month 6 days
Restricted and Performance Shares [Member] | Age 60 [Member]
Restricted and Performance Stock Grants [Abstract]
Vesting percentage (in hundredths)	25.00%
Restricted and Performance Shares [Member] | Age 63 [Member]
Restricted and Performance Stock Grants [Abstract]
Vesting percentage (in hundredths)	25.00%
Restricted and Performance Shares [Member] | Age65 [Member]
Restricted and Performance Stock Grants [Abstract]
Vesting percentage (in hundredths)	100.00%

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 8,948	$ 11,725
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	4,288	4,084
Amortization of deferred financing cost	174	175
Increase to allowance for doubtful accounts	180	152
Increase to inventory reserves	238	508
Amortization of deferred gain on sale of building	(262)	(262)
Equity (income) loss from joint ventures	(390)	53
Employee stock ownership plan allocation	552	457
Stock-based compensation	1,319	972
Excess tax benefits related to exercise of employee stock grants	(38)	(36)
Increase in deferred income taxes	(64)	(335)
Loss on discontinued operations, net of tax	391	682
Change in assets and liabilities:
Increase in accounts receivable	(25,289)	(852)
Increase in inventories	(7,473)	(12,715)
Decrease in prepaid expenses and other current assets	3,620	2,044
Increase in accounts payable	5,255	9,310
Decrease in sundry payables and accrued expenses	(6,287)	(5,971)
Net changes in other assets and liabilities	675	(759)
Net cash provided by (used in) operating activities	(14,163)	9,232
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of and investments in businesses	0	(12,225)
Capital expenditures	(4,009)	(2,763)
Other investing activities	26	0
Net cash used in investing activities	(3,983)	(14,988)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under line-of-credit agreements	15,009	11,616
Principal payments of long-term debt and capital lease obligations	(63)	(32)
Purchase of treasury stock	0	(4,526)
Increase in overdraft balances	1,536	947
Proceeds from exercise of employee stock options	35	66
Excess tax benefits related to the exercise of employee stock grants	38	36
Dividends paid	(3,434)	(2,984)
Net cash provided by financing activities	13,121	5,123
Effect of exchange rate changes on cash	(584)	(503)
Net decrease in cash and cash equivalents	(5,609)	(1,136)
CASH AND CASH EQUIVALENTS at beginning of period	13,728	5,559
CASH AND CASH EQUIVALENTS at end of period	8,119	4,423
Cash paid during the period for:
Interest	245	110
Income taxes	$ 1,892	$ 2,474

XML

Restructuring and Integration Costs (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Restructuring and integration activities [Roll Forward]
Exit activity liability, beginning of period	$ 1,676
Restructuring and integration costs [Abstract]
Amount provided for during 2015	57
Cash payments	(351)
Exit activity liability, end of period	1,382
Workforce Reduction [Member]
Restructuring and integration activities [Roll Forward]
Exit activity liability, beginning of period	947
Restructuring and integration costs [Abstract]
Amount provided for during 2015	2
Cash payments	(294)
Exit activity liability, end of period	655
Other Exit Costs [Member]
Restructuring and integration activities [Roll Forward]
Exit activity liability, beginning of period	729
Restructuring and integration costs [Abstract]
Amount provided for during 2015	55
Cash payments	(57)
Exit activity liability, end of period	$ 727

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2015

Summary of Significant Accounting Policies [Abstract]

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Discontinued Operations and Disclosures of Disposals of Components of an Entity

In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU 2014-08"), which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements.  Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and "represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results."  The new standard applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date.  The amendment is effective for annual reporting periods beginning after December 15, 2014.  We adopted the new standard as of January 1, 2015. The adoption of the new standard did not change the manner in which we present discontinued operations in our consolidated financial statements.

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance.  Under the new guidance, “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.”  The new standard provides entities the option of using either a full retrospective or a modified approach to adopt the guidance.  The new standard is effective for annual reporting periods beginning after December 15, 2016, which for us is January 1, 2017, and interim periods within those annual periods; however, the FASB recently proposed a one year deferral of the effective date of the standard.  Early adoption is not permitted.  We are currently evaluating the impact, if any, this new standard will have on our consolidated financial statements and have not yet determined the method of adoption.

Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern

In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"), which provides guidance on determining when and how to disclose going concern uncertainties in the consolidated financial statements.  Under the new guidance, management would be required to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued.  Certain disclosures must be provided if "conditions or events raise substantial doubt about an entity's ability to continue as a going concern."  The new standard is effective for annual reporting periods ending after December 15, 2016, which for us is December 31, 2016, and interim periods thereafter.  Early adoption is permitted.  Upon adoption, although we do not anticipate that the new standard will have an impact on our disclosures, we will consider the new standard when conducting our interim and annual assessments of our ability to continue as a going concern.

Income Statement - Extraordinary and Unusual Items

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, ("ASU 2015-01"), which removes the concept of extraordinary items from U.S. GAAP. Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual and occurs infrequently. This separate, net-of-tax presentation will no longer be allowed. The existing requirement to separately disclose events or transactions that are unusual or occur infrequently on a pre-tax basis within continuing operations in the income statement has been retained. The new guidance requires similar separate presentation of items that are both unusual and infrequent. The new standard is effective for periods beginning after December 15, 2015, which for us is January 1, 2016. Early adoption is permitted, but only as of the beginning of the fiscal year of adoption. Upon adoption, we will present transactions that are both unusual and infrequent on a pre-tax basis within continuing operations in the income statement.

Simplifying the Presentation of Debt Issuance Costs

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, ("ASU 2015-03"), which requires that debt issuance costs be presented in the balance sheet as a direct deduction of the carrying value of the associated debt liability. Under the existing guidance, debt issuance costs are required to be presented in the balance sheet as a deferred charge (i.e., an asset).  The new standard is effective for periods beginning after December 15, 2015, which for us is January 1, 2016.  Early adoption is permitted for financial statements that have not been previously issued.  The new standard should be applied retrospectively to all periods presented in the financial statements.  Upon adoption, we will present debt financing costs as a deduction of the carrying value of our revolving credit facility debt instead of presenting such costs as an asset in our consolidated balance sheets.

XML

Sale of Receivables (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Sale of Receivables [Abstract]
Sale of receivables to financial institutions	$ 144.0	$ 177.4
Charge related to sale of receivables	$ 2.9	$ 3.4

XML

Inventories (Tables)

3 Months Ended

Mar. 31, 2015

Inventories [Abstract]

Inventories

Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) or market, consist of the following:

	March 31, 2015		December 31, 2014
	(In thousands)
Finished goods	$	189,976	$	185,655
Work in process		5,321		4,722
Raw materials		88,404		87,674
Total inventories	$	283,701	$	278,051

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (USD $) In Thousands, unless otherwise specified	Common Stock [Member]	Capital in Excess of Par Value [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2014	$ 47,872	$ 91,411	$ 259,160	$ (2,652)	$ (21,638)	$ 374,153
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	0	0	8,948	0	0	8,948
Other comprehensive income (loss), net of tax	0	0	0	(2,718)	0	(2,718)
Cash dividends paid	0	0	(3,434)	0	0	(3,434)
Stock-based compensation and related tax benefits	0	698	0	0	630	1,328
Stock options exercised and related tax benefits	0	(1)	0	0	65	64
Employee Stock Ownership Plan	0	1,001	0	0	1,207	2,208
Balance at Mar. 31, 2015	$ 47,872	$ 93,109	$ 264,674	$ (5,370)	$ (19,736)	$ 380,549

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Net earnings	$ 8,948	$ 11,725
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(3,074)	(590)
Amortization of:
Prior service benefit	(29)	(754)
Unrecognized loss	618	592
Foreign currency exchange rate changes	8	(22)
Income tax (expense) benefit related to pension and postretirement plans	(241)	58
Pension and postretirement plans, net of tax	356	(126)
Total other comprehensive income (loss), net of tax	(2,718)	(716)
Comprehensive income	$ 6,230	$ 11,009

XML

Employee Benefits

3 Months Ended

Mar. 31, 2015

Employee Benefits [Abstract]

Employee Benefits

Note 10.Employee Benefits

The components of net periodic benefit cost (credit) for our defined benefit plans and postretirement benefit plans for the three months ended March 31, 2015 and 2014 were as follows (in thousands):

	Three Months Ended
	March 31,
Pension benefits	2015			2014
Service cost	$	—		$	41
Interest cost		54			65
Amortization of prior service cost		—			—
Actuarial net loss		184			57
Net periodic benefit cost	$	238		$	163
Postretirement benefits
Service cost	$	—		$	—
Interest cost		7			8
Amortization of prior service cost		(29	)		(754	)
Actuarial net loss		434			535
Net periodic benefit cost (credit)	$	412		$	(211	)

For the three months ended March 31, 2015, we made employee benefit contributions of $0.2 million related to our postretirement plans.  Based on current actuarial estimates, we believe we will be required to make approximately $2.3 million in contributions for 2015.

We maintain a Supplemental Executive Retirement Plan ("SERP") for key employees. Under the plan, these employees may elect to defer a portion of their compensation and, in addition, we may at our discretion make contributions to the plan on behalf of the employees. In March 2015, contributions of $0.5 million were made related to calendar year 2014.

We also have an Employee Stock Ownership Plan and Trust for employees who are not covered by a collective bargaining agreement.  In connection therewith, we maintain an employee benefits trust to which we contribute shares of treasury stock.  We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under the plan. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released.  The trustees will vote the shares in accordance with their fiduciary duties.  During the three months ended March 31, 2015, we contributed to the trust an additional 58,000 shares from our treasury and released 58,200 shares from the trust leaving 200 shares remaining in the trust as of March 31, 2015.

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	STANDARD MOTOR PRODUCTS INC
Entity Central Index Key	0000093389
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		22,986,865
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015

XML

Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 11.Fair Value Measurements

We follow a three-level fair value hierarchy that prioritizes the inputs to measure fair value. This hierarchy requires entities to maximize the use of "observable inputs" and minimize the use of "unobservable inputs." The three levels of inputs used to measure fair value are as follows:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect assumptions that market participants would use in pricing an asset or liability.

The following is a summary of the carrying amounts and estimated fair values of our financial instruments at March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015				December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	8,119	$	8,119	$	13,728	$	13,728
Deferred compensation		11,006		11,006		9,811		9,811
Short term borrowings		71,689		71,689		56,733		56,733
Long-term debt		72		72		83		83

For fair value purposes the carrying value of cash and cash equivalents approximates fair value due to the short maturity of those investments. The fair value of the underlying assets held by the deferred compensation plan are based on the quoted market prices of the funds in registered investment companies, which are considered Level 1 inputs. The carrying value of our revolving credit facilities, classified as short term borrowings, equals fair market value because the interest rate reflects current market rates.

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 8,119	$ 13,728
Accounts receivable, less allowances for discounts and doubtful accounts of $6,567 and $6,369 for 2015 and 2014, respectively	150,736	126,524
Inventories	283,701	278,051
Deferred income taxes	36,509	36,534
Prepaid expenses and other current assets	9,110	11,196
Total current assets	488,175	466,033
Property, plant and equipment, net	65,065	64,611
Goodwill	54,883	54,975
Other intangibles, net	32,863	34,402
Deferred incomes taxes	14,677	14,941
Other assets	39,032	38,589
Total assets	694,695	673,551
CURRENT LIABILITIES:
Notes payable	71,567	56,558
Current portion of long-term debt	122	175
Accounts payable	76,889	70,674
Sundry payables and accrued expenses	43,237	49,412
Accrued customer returns	35,814	30,621
Accrued rebates	23,950	26,076
Payroll and commissions	13,443	17,313
Total current liabilities	265,022	250,829
Long-term debt	72	83
Other accrued liabilities	15,653	15,024
Accrued asbestos liabilities	33,399	33,462
Total liabilities	314,146	299,398
Commitments and contingencies
Stockholders' equity:
Common stock - par value $2.00 per share: Authorized - 30,000,000 shares; issued 23,936,036 shares	47,872	47,872
Capital in excess of par value	93,109	91,411
Retained earnings	264,674	259,160
Accumulated other comprehensive income	(5,370)	(2,652)
Treasury stock - at cost (951,396 shares and 1,043,064 shares in 2015 and 2014, respectively)	(19,736)	(21,638)
Total stockholders' equity	380,549	374,153
Total liabilities and stockholders' equity	$ 694,695	$ 673,551

XML

Inventories

3 Months Ended

Mar. 31, 2015

Inventories [Abstract]

Inventories, Net

Note 5.   Inventories

Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) or market, consist of the following:

	March 31, 2015		December 31, 2014
	(In thousands)
Finished goods	$	189,976	$	185,655
Work in process		5,321		4,722
Raw materials		88,404		87,674
Total inventories	$	283,701	$	278,051

XML

Sale of Receivables

3 Months Ended

Mar. 31, 2015

Sale of Receivables [Abstract]

Sale of Receivables

Note 4.Sale of Receivables

From time to time, we sell undivided interests in certain of our receivables to financial institutions.  We enter these agreements at our discretion when we determine that the cost of factoring is less than the cost of servicing our receivables with existing debt.  Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables, and do not service the receivables after the sale.  As such, these transactions are being accounted for as a sale.

Pursuant to these agreements, we sold $144 million and $177.4 million of receivables during the three months ended March 31, 2015 and 2014, respectively.  A charge in the amount of $2.9 million and $3.4 million related to the sale of receivables is included in selling, general and administrative expense in our consolidated statements of operations for the three months ended March 31, 2015 and 2014, respectively.  If we do not enter into these arrangements or if any of the financial institutions with which we enter into these arrangements were to experience financial difficulties or otherwise terminate these arrangements, our financial condition, results of operations and cash flows could be materially and adversely affected by delays or failures to collect future trade accounts receivable.

XML

Restructuring and Integration Costs (Tables)

3 Months Ended

Mar. 31, 2015

Restructuring and Integration Costs [Abstract]

Restructuring and Integration Activities

The aggregated liabilities included in "sundry payables and accrued expenses" and "other accrued liabilities" in the consolidated balance sheet relating to the restructuring and integration activities as of December 31, 2014 and March 31, 2015 and activity for the three months ended March 31, 2015 consisted of the following (in thousands):

	Workforce Reduction			Other Exit Costs			Total
Exit activity liability at December 31, 2014	$	947		$	729		$	1,676
Restructuring and integration costs:
Amounts provided for during 2015		2			55			57
Cash payments		(294	)		(57	)		(351	)
Exit activity liability at March 31, 2015	$	655		$	727		$	1,382

XML

Earnings Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share

Earnings Per Share

Note 12.Earnings Per Share

The following are reconciliations of the earnings available to common stockholders and the shares used in calculating basic and dilutive net earnings per common share (in thousands, except per share data):

	Three Months Ended
	March 31,
Basic Net Earnings Per Common Share:	2015			2014
Earnings from continuing operations	$	9,339		$	12,407
Loss from discontinued operations		(391	)		(682	)
Net earnings available to common stockholders	$	8,948		$	11,725
Weighted average common shares outstanding		22,911			22,947
Earnings from continuing operations per common share	$	0.41		$	0.54
Loss from discontinued operations per common share		(0.02	)		(0.03	)
Basic net earnings per common share	$	0.39		$	0.51
Diluted Net Earnings Per Common Share:
Earnings from continuing operations	$	9,339		$	12,407
Loss from discontinued operations		(391	)		(682	)
Net earnings available to common stockholders	$	8,948		$	11,725
Weighted average common shares outstanding		22,911			22,947
Plus incremental shares from assumed conversions:
Dilutive effect of restricted stock and performance stock		323			272
Dilutive effect of stock options		4			6
Weighted average common shares outstanding – Diluted		23,238			23,225
Earnings from continuing operations per common share	$	0.40		$	0.53
Loss from discontinued operations per common share		(0.01	)		(0.03	)
Diluted net earnings per common share	$	0.39		$	0.50

The shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands):

	Three Months Ended
	March 31,
	2015		2014
Stock options		3		6
Restricted and performance shares		358		308

XML

Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2015

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income

Note 8.    Accumulated Other Comprehensive Income

Changes in Accumulated Other Comprehensive Income by Component

	Foreign Currency Translation Adjustments			Unrecognized Pension and Postretirement Benefit Costs (Credit)			Total
Balance at December 31, 2014	$	(219	)	$	(2,433	)	$	(2,652	)
Other comprehensive income before reclassifications		(3,074	)		8			(3,066	)
Amounts reclassified from accumulated other comprehensive income		—			348			348
Other comprehensive income, net		(3,074	)		356			(2,718	)
Balance at March 31, 2015	$	(3,293	)	$	(2,077	)	$	(5,370	)

Reclassifications Out of Accumulated Other Comprehensive Income

Details About Accumulated Other Comprehensive Income Components	Three Months Ended March 31, 2015
Amortization of pension and postretirement benefit plans:
Prior service benefit (1)	$	(29	)
Unrecognized loss (1)		618
Total before income tax		589
Income tax expense		(241	)
Total reclassifications for the period	$	348

(1)  These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement benefit costs, which are included in selling, general and administrative expenses in our consolidated statements of operations (see Note 10 for additional details).

XML

Acquired Intangible Assets

3 Months Ended

Mar. 31, 2015

Acquired Intangible Assets [Abstract]

Acquired Intangible Assets

Note 6.Acquired Intangible Assets

Acquired identifiable intangible assets consist of the following:

	March 31, 2015			December 31, 2014
	(In thousands)
Customer relationships	$	48,473		$	48,646
Trademarks and trade names		6,800			6,800
Non-compete agreements		970			970
Patents and supply contracts		723			723
Leaseholds		160			160
Total acquired intangible assets		57,126			57,299
Less accumulated amortization (1)		(25,373	)		(24,120	)
Net acquired intangible assets	$	31,753		$	33,179

(1) Applies to all intangible assets, except for trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being amortized.

Total amortization expense for acquired intangible assets was $1.3 million and $1.1 million for the three months ended March 31, 2015 and 2014, respectively.  Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be $3.7 million for the remainder of 2015, $4.8 million in 2016, $4.6 million in 2017 and $13.5 million in the aggregate for the years 2018 through 2028.

XML

Credit Facilities and Long-Term Debt

3 Months Ended

Mar. 31, 2015

Credit Facilities and Long-Term Debt [Abstract]

Credit Facilities and Long-Term Debt

Note 7.Credit Facilities and Long-Term Debt

Total debt outstanding is summarized as follows:

	March 31, 2015		December 31, 2014
	(In thousands)
Revolving credit facilities	$	71,567	$	56,558
Other		194		258
Total debt	$	71,761	$	56,816
Current maturities of debt	$	71,689	$	56,733
Long-term debt		72		83
Total debt	$	71,761	$	56,816

Deferred Financing Costs

We had deferred financing costs of $2.1 million and $2.3 million as of March 31, 2015 and December 31, 2014, respectively.  Deferred financing costs are related to our revolving credit facility.  Deferred financing costs as of March 31, 2015 are being amortized in the amounts of $0.5 million for the remainder of 2015, $0.7 million in 2016, $0.7 million in 2017 and $0.2 million in 2018.

Revolving Credit Facility

We entered into the Third Amended and Restated Credit Agreement with General Electric Capital Corporation, as agent, and a syndicate of lenders for a secured revolving credit facility.  The restated credit agreement (as amended) provides for a line of credit of up to $250 million (inclusive of the Canadian revolving credit facility described below) and expires in March 2018.  Direct borrowings under the restated credit agreement bear interest at the LIBOR rate plus the applicable margin (as defined), or floating at the index rate plus the applicable margin, at our option. The interest rate may vary depending upon our borrowing availability. The restated credit agreement is guaranteed by certain of our subsidiaries and secured by certain of our assets.

Borrowings under the restated credit agreement are collateralized by substantially all of our assets, including accounts receivable, inventory and fixed assets, and those of certain of our subsidiaries. After taking into account outstanding borrowings under the restated credit agreement, there was an additional $147.5 million available for us to borrow pursuant to the formula at March 31, 2015.  Outstanding borrowings under the restated credit agreement (inclusive of the Canadian revolving credit facility described below), which are classified as current liabilities, were $71.6 million and $56.6 million at March 31, 2015 and December 31, 2014, respectively.  Borrowings under the restated credit agreement have been classified as current liabilities based upon the accounting rules and certain provisions in the agreement.

At March 31, 2015, the weighted average interest rate on our restated credit agreement was 2%, which consisted of $61 million in direct borrowings at 1.7% and an index loan of $10.6 million at 3.8%.  At December 31, 2014, the weighted average interest rate on our restated credit agreement was 1.8%, which consisted of $53 million in direct borrowings at 1.7% and an index loan of $3.6 million at 3.8%.  During the three months ended March 31, 2015, our average daily index loan balance was $4.3 million compared to $3.3 million for the three months ended March 31, 2014 and $4.4 million for the year ended December 31, 2014.

At any time that our average borrowing availability is less than $25 million, the terms of our restated credit agreement provide for, among other provisions, a financial covenant requiring us, on a consolidated basis, to maintain specified levels of fixed charge coverage at the end of each fiscal quarter (rolling twelve months). As of March 31, 2015, we were not subject to these covenants. Availability under our restated credit agreement is based on a formula of eligible accounts receivable, eligible inventory and eligible fixed assets.  Provided specific conditions are met, our restated credit agreement permits cash dividends, stock repurchases, acquisitions, permissible debt financing and capital expenditures.

Canadian Revolving Credit Facility

Our Canadian Credit Agreement (as amended) with GE Canada Finance Holding Company, for itself and as agent for the lenders, provides for a $10 million revolving credit facility that expires in March 2018. The Canadian $10 million line of credit is part of the $250 million available for borrowing under our restated credit agreement with General Electric Capital Corporation.

The Canadian Credit Agreement is guaranteed and secured by us and certain of our wholly-owned subsidiaries. Direct borrowings under the amended credit agreement bear interest at the same rate as our restated credit agreement with General Electric Capital Corporation.  As of March 31, 2015, we have no outstanding borrowings under the Canadian Credit Agreement.

XML

Stock-Based Compensation Plans

3 Months Ended

Mar. 31, 2015

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

Note 9.Stock-Based Compensation Plans

We account for our stock-based compensation plans in accordance with the provisions of FASB ASC 718, Stock Compensation, which requires that a company measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award.  The cost is recognized in the consolidated statement of operations over the period during which an employee is required to provide service in exchange for the award.

Stock Option Grants

The following is a summary of the changes in outstanding stock options for the three months ended March 31, 2015:

						Weighted Average
						Remaining Contractual
	Shares			Weighted Average Exercise Price		Term (Years)
Outstanding at December 31, 2014		9,875		$	10.99		0.4
Expired		—			—		—
Exercised		(3,125	)		11.14		—
Forfeited, other		—			—		—
Outstanding at March 31, 2015		6,750		$	10.92		0.1
Options exercisable at March 31, 2015		6,750		$	10.92		0.1

The aggregate intrinsic value of all outstanding stock options as of March 31, 2015 was $0.2 million. All outstanding stock options as of March 31, 2015 are fully vested and exercisable.  The total intrinsic value of options exercised was $0.1 million for the three months ended March 31, 2015.  There were no options granted in the three months ended March 31, 2015.

Restricted and Performance Stock Grants

As part of the 2006 Omnibus Incentive Plan, we currently grant shares of restricted stock to eligible employees and our independent directors and performance-based stock to eligible employees.  Selected executives and other key personnel are granted performance awards whose vesting is contingent upon meeting various performance measures with a retention feature.  Performance-based shares are subject to a three-year measuring period and the achievement of performance targets and, depending upon the achievement of such performance targets, they may become vested on the third anniversary of the date of grant. Each period we evaluate the probability of achieving the applicable targets, and we adjust our accrual accordingly.  Restricted shares granted to employees become fully vested upon the third anniversary of the date of grant; and for selected key executives, certain additional restricted share grants vest 25% upon the attainment of age 60, 25% upon the attainment of age 63 and become fully vested upon the attainment of age 65. Restricted shares granted to directors become fully vested upon the first anniversary of the date of grant.  Forfeitures on restricted stock grants are estimated at 5% for employees and 0% for executives and directors, respectively, based on our evaluation of historical and expected future turnover.

Our restricted and performance-based share activity was as follows for the three months ended March 31, 2015:

	Shares			Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2014		749,018		$	24.62
Granted		—			—
Vested		(30,343	)		36.14
Forfeited		(1,100	)		22.30
Balance at March 31, 2015		717,575		$	24.13

We recorded compensation expense related to restricted shares and performance-based shares of $1.3 million ($0.8 million, net of tax) and $1million ($0.6 million, net of tax) for the three months ended March 31, 2015 and 2014, respectively. The unamortized compensation expense related to our restricted and performance-based shares was $10.7 million at March 31, 2015, and is expected to be recognized as they vest over a weighted average period of 5.1 years and 0.1 years for employees and directors, respectively.

XML

Basis of Presentation (Details)	Mar. 31, 2015
Basis of Presentation [Abstract]
Equity ownership in entities included in consolidated financial statements, minimum (in hundredths)	50.00%

XML

Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 14.Commitments and Contingencies

Asbestos

In 1986, we acquired a brake business, which we subsequently sold in March 1998 and which is accounted for as a discontinued operation. When we originally acquired this brake business, we assumed future liabilities relating to any alleged exposure to asbestos-containing products manufactured by the seller of the acquired brake business. In accordance with the related purchase agreement, we agreed to assume the liabilities for all new claims filed on or after September 2001. Our ultimate exposure will depend upon the number of claims filed against us on or after September 2001 and the amounts paid for indemnity and defense thereof. At March 31, 2015, approximately 2,150 cases were outstanding for which we may be responsible for any related liabilities.  Since inception in September 2001 through March 31, 2015, the amounts paid for settled claims are approximately $17.7 million.

In evaluating our potential asbestos-related liability, we have considered various factors including, among other things, an actuarial study of the asbestos related liabilities performed by an independent actuarial firm, our settlement amounts and whether there are any co-defendants, the jurisdiction in which lawsuits are filed, and the status and results of settlement discussions.  As is our accounting policy, we consider the advice of actuarial consultants with experience in assessing asbestos-related liabilities to estimate our potential claim liability.  The methodology used to project asbestos-related liabilities and costs in our actuarial study considered: (1) historical data available from publicly available studies; (2) an analysis of our recent claims history to estimate likely filing rates into the future; (3) an analysis of our currently pending claims; and (4) an analysis of our settlements to date in order to develop average settlement values.

The most recent actuarial study was performed as of August 31, 2014.  The updated study has estimated an undiscounted liability for settlement payments, excluding legal costs and any potential recovery from insurance carriers, ranging from $36.1 million to $55.4 million for the period through 2058. The change from the prior year study was an $11.7 million increase for the low end of the range and an $18 million increase for the high end of the range.  The increase in the estimated undiscounted liability from the prior year study at both the low end and high end of the range reflects historical data and certain assumptions with respect to events that may occur in the future. Based on the information contained in the actuarial study and all other available information considered by us, we have concluded that no amount within the range of settlement payments was more likely than any other and, therefore, in assessing our asbestos liability we compare the low end of the range to our recorded liability to determine if an adjustment is required.  Based upon the results of the August 31, 2014 actuarial study, in September 2014 we increased our asbestos liability to $36.1 million, the low end of the range, and recorded an incremental pre-tax provision of $12.8 million in loss from discontinued operations in the accompanying statement of operations.  Legal costs, which are expensed as incurred and reported in loss from discontinued operations in the accompanying statement of operations, are estimated, according to the updated study, to range from $43 million to $76.4 million for the period through 2058.

We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future. Given the uncertainties associated with projecting such matters into the future and other factors outside our control, we can give no assurance that additional provisions will not be required. We will continue to monitor the circumstances surrounding these potential liabilities in determining whether additional provisions may be necessary.  At the present time, however, we do not believe that any additional provisions would be reasonably likely to have a material adverse effect on our liquidity or consolidated financial position.

Other Litigation

We are currently involved in various other legal claims and legal proceedings (some of which may involve substantial amounts), including claims related to commercial disputes, product liability, employment, and environmental.  Although these legal claims and legal proceedings are subject to inherent uncertainties, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the ultimate outcome of these matters will not, either individually or in the aggregate, have a material adverse effect on our business, financial condition or results of operations.  We may at any time determine that settling any of these matters is in our best interests, which settlement may include substantial payments.  Although we cannot currently predict the specific amount of any liability that may ultimately arise with respect to any of these matters, we will record provisions when the liability is considered probable and reasonably estimable.  Significant judgment is required in both the determination of probability and the determination as to whether an exposure can be reasonably estimated.  As additional information becomes available, we reassess our potential liability related to these matters. Such revisions of the potential liabilities could have a material adverse effect on our business, financial condition or results of operations.

Warranties

We generally warrant our products against certain manufacturing and other defects. These product warranties are provided for specific periods of time of the product depending on the nature of the product.  As of March 31, 2015 and 2014, we have accrued $20 million and $20.4 million, respectively, for estimated product warranty claims included in accrued customer returns. The accrued product warranty costs are based primarily on historical experience of actual warranty claims.

The following table provides the changes in our product warranties (in thousands):

	Three Months Ended
	March 31,
	2015			2014
Balance, beginning of period	$	19,328		$	18,041
Liabilities accrued for current year sales		21,036			19,191
Settlements of warranty claims		(20,379	)		(16,858	)
Balance, end of period	$	19,985		$	20,374

XML

Credit Facilities and Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2015

Credit Facilities and Long-Term Debt [Abstract]

Summary of total debt outstanding

Total debt outstanding is summarized as follows:

	March 31, 2015		December 31, 2014
	(In thousands)
Revolving credit facilities	$	71,567	$	56,558
Other		194		258
Total debt	$	71,761	$	56,816
Current maturities of debt	$	71,689	$	56,733
Long-term debt		72		83
Total debt	$	71,761	$	56,816

XML

Industry Segments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015 Segment	Mar. 31, 2014
Segment Reporting Information [Line Items]
Number of reportable operating segments	2
Net sales	$ 227,589	$ 232,752
Operating Income	14,915	20,405
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net sales	0	0
Engine Management [Member] | Reportable Segments [Member]
Segment Reporting Information [Line Items]
Net sales	177,071	179,294
Operating Income	21,716	24,372
Engine Management [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net sales	5,023	5,953
Temperature Control [Member] | Reportable Segments [Member]
Segment Reporting Information [Line Items]
Net sales	48,728	51,485
Operating Income	(1,419)	613
Temperature Control [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net sales	1,444	2,234
All Other [Member]
Segment Reporting Information [Line Items]
Net sales	1,790	1,973
Operating Income	(5,382)	(4,580)
All Other [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net sales	$ (6,467)	$ (8,187)

XML

Credit Facilities and Long-Term Debt, Revolving Credit Facility (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 250
Expiration date	Mar. 31, 2018
Additional available borrowing capacity	147.5
Financial covenants	At any time that our average borrowing availability is less than $25 million, the terms of our restated credit agreement provide for, among other provisions, a financial covenant requiring us, on a consolidated basis, to maintain specified levels of fixed charge coverage at the end of each fiscal quarter (rolling twelve months).
General Electric Capital Corporation Credit Facility [Member]
Line of Credit Facility [Line Items]
Outstanding borrowings under credit facility	71.6		56.6
Weighted average interest rate (in hundredths)	2.00%		1.80%
General Electric Capital Corporation Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Conditions for required financial covenants, maximum borrowing availability	25
General Electric Capital Corporation Credit Facility [Member] | Direct Borrowings [Member]
Line of Credit Facility [Line Items]
Outstanding borrowings under credit facility	61.0		53.0
Weighted average interest rate (in hundredths)	1.70%		1.70%
General Electric Capital Corporation Credit Facility [Member] | Index Loan [Member]
Line of Credit Facility [Line Items]
Outstanding borrowings under credit facility	10.6		3.6
Weighted average interest rate (in hundredths)	3.80%		3.80%
Average daily loan balance outstanding	4.3	3.3	4.4
GE Canada Finance Holding Company Credit Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	10
Outstanding borrowings under credit facility	$ 0

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
CURRENT ASSETS:
Accounts receivable, allowances for discounts and doubtful accounts	$ 6,567	$ 6,369
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 2.00	$ 2.00
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	23,936,036	23,936,036
Treasury stock - at cost (in shares)	951,396	1,043,064

XML

Restructuring and Integration Costs

3 Months Ended

Mar. 31, 2015

Restructuring and Integration Costs [Abstract]

Restructuring and Integration Costs

Note 3.    Restructuring and Integration Costs

The aggregated liabilities included in "sundry payables and accrued expenses" and "other accrued liabilities" in the consolidated balance sheet relating to the restructuring and integration activities as of December 31, 2014 and March 31, 2015 and activity for the three months ended March 31, 2015 consisted of the following (in thousands):

	Workforce Reduction			Other Exit Costs			Total
Exit activity liability at December 31, 2014	$	947		$	729		$	1,676
Restructuring and integration costs:
Amounts provided for during 2015		2			55			57
Cash payments		(294	)		(57	)		(351	)
Exit activity liability at March 31, 2015	$	655		$	727		$	1,382

Liabilities associated with the remaining restructuring and integration costs as of March 31, 2015 relate primarily to employee severance and other retiree benefit enhancements to be paid through 2019 and environmental clean-up costs at our Long Island City, New York location in connection with the closure of our manufacturing operations at the site.

XML

Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2015

Accumulated Other Comprehensive Income [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income

Changes in Accumulated Other Comprehensive Income by Component

	Foreign Currency Translation Adjustments			Unrecognized Pension and Postretirement Benefit Costs (Credit)			Total
Balance at December 31, 2014	$	(219	)	$	(2,433	)	$	(2,652	)
Other comprehensive income before reclassifications		(3,074	)		8			(3,066	)
Amounts reclassified from accumulated other comprehensive income		—			348			348
Other comprehensive income, net		(3,074	)		356			(2,718	)
Balance at March 31, 2015	$	(3,293	)	$	(2,077	)	$	(5,370	)

Reclassification out of Accumulated Other Comprehensive Income

Reclassifications Out of Accumulated Other Comprehensive Income

Details About Accumulated Other Comprehensive Income Components	Three Months Ended March 31, 2015
Amortization of pension and postretirement benefit plans:
Prior service benefit (1)	$	(29	)
Unrecognized loss (1)		618
Total before income tax		589
Income tax expense		(241	)
Total reclassifications for the period	$	348

(1)  These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement benefit costs, which are included in selling, general and administrative expenses in our consolidated statements of operations (see Note 10 for additional details).

XML

Acquired Intangible Assets (Details) (USD $)	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014	Dec. 31, 2014
Acquired Indefinite-lived Intangible Assets [Line Items]
Total acquired intangible assets	$ 57,126,000			$ 57,299,000
Less accumulated amortization	(25,373,000)	[1]		(24,120,000)	[1]
Net acquired intangible assets	31,753,000			33,179,000
Amortization of acquired intangible assets [Abstract]
Amortization expense	1,300,000		1,100,000
Estimated amortization expense, remainder of current year	3,700,000
Estimated amortization expense in year 2016	4,800,000
Estimated amortization expense in year 2017	4,600,000
Estimated amortization expense in years 2018 through 2028	13,500,000
Customer Relationships [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Total acquired intangible assets	48,473,000			48,646,000
Trademarks and Trade Names [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Total acquired intangible assets	6,800,000			6,800,000
Intangible assets acquired [Abstract]
Amount of acquired indefinite-lived intangible assets	5,200,000
Non-compete Agreements [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Total acquired intangible assets	970,000			970,000
Patents and Supply Contracts [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Total acquired intangible assets	723,000			723,000
Leaseholds [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Total acquired intangible assets	$ 160,000			$ 160,000

[1] Applies to all intangible assets, except for related trademarks and trade names totaling $5.2 million, which have indefinite useful lives and, as such, are not being amortized.

XML

Industry Segments

3 Months Ended

Mar. 31, 2015

Industry Segments [Abstract]

Industry Segments

Note 13.Industry Segments

We have two major reportable operating segments, each of which focuses on a specific line of replacement parts. Our Engine Management Segment manufactures and remanufactures ignition and emission parts, ignition wires, battery cables, fuel system parts and sensors for vehicle systems. Our Temperature Control Segment manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories and windshield washer system parts.

The following tables show our net sales, intersegement revenue and operating income by our operating segments (in thousands):

	Three Months Ended
	March 31,
	2015			2014
Net Sales
Engine Management	$	177,071		$	179,294
Temperature Control		48,728			51,485
All Other		1,790			1,973
Consolidated	$	227,589		$	232,752
Intersegment Revenue
Engine Management	$	5,023		$	5,953
Temperature Control		1,444			2,234
All Other		(6,467	)		(8,187	)
Consolidated	$	—		$	—
Operating Income
Engine Management	$	21,716		$	24,372
Temperature Control		(1,419	)		613
All Other		(5,382	)		(4,580	)
Consolidated	$	14,915		$	20,405