QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Accelerated Filer ☐ |
||
Non-Accelerated Filer ☐ |
Smaller reporting company |
|
Emerging growth company |
Page No. |
||
Item 1. |
Consolidated Financial Statements: |
|
3 |
||
4 |
||
5 |
||
6 |
||
7 |
||
9 |
||
Item 2. |
27 |
|
Item 3. |
39 |
|
Item 4. |
40 |
PART II – OTHER INFORMATION |
||
Item 1. |
40 |
|
Item 6. |
41 |
|
42 |
ITEM 1. | CONSOLIDATED FINANCIAL STATEMENTS |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
(In thousands, except share and per share data) |
2021 |
2020 |
2021 |
2020 |
||||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||
Net sales |
$ |
$ |
$ |
$ |
||||||||||||
Cost of sales |
||||||||||||||||
Gross profit |
||||||||||||||||
Selling, general and administrative expenses |
||||||||||||||||
Restructuring and integration expenses |
||||||||||||||||
Other income, net |
||||||||||||||||
Operating income |
||||||||||||||||
Other non-operating income, net |
||||||||||||||||
Interest expense |
||||||||||||||||
Earnings from continuing operations before taxes |
||||||||||||||||
Provision for income taxes |
||||||||||||||||
Earnings from continuing operations |
||||||||||||||||
Loss from discontinued operations, net of income taxes |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net earnings |
$ |
|||||||||||||||
Net earnings attributable to noncontrolling interest |
||||||||||||||||
Net earnings attributable to SMP (a) |
$ |
$ |
$ |
$ |
||||||||||||
Net earnings attributable to SMP |
||||||||||||||||
Earnings from continuing operations |
$ |
$ |
$ |
$ |
||||||||||||
Discontinued operations |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
Per share data attributable to SMP |
||||||||||||||||
Net earnings per common share – Basic: |
||||||||||||||||
Earnings from continuing operations |
$ |
$ |
$ |
$ |
||||||||||||
Discontinued operations |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net earnings per common share – Basic |
$ |
$ |
$ |
$ |
||||||||||||
Net earnings per common share – Diluted: |
||||||||||||||||
Earnings from continuing operations |
$ |
$ |
$ |
$ |
||||||||||||
Discontinued operations |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net earnings per common share – Diluted |
$ |
$ |
$ |
$ |
||||||||||||
Dividend declared per share |
$ |
$ |
$ |
$ |
||||||||||||
Average number of common shares |
||||||||||||||||
Average number of common shares and dilutive common shares |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
(In thousands) |
2021 |
2020 |
2021 |
2020 |
||||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||
Net earnings |
$ |
$ |
$ |
$ |
||||||||||||
Other comprehensive income (loss), net of tax: |
||||||||||||||||
Foreign currency translation adjustments |
( |
) |
||||||||||||||
Pension and postretirement plans |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Total other comprehensive income, net of tax |
( |
) |
||||||||||||||
Total Comprehensive income |
||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest, net of tax: |
||||||||||||||||
Net earnings |
||||||||||||||||
Foreign currency translation adjustments |
( |
) |
( |
) |
||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest, net of tax |
( |
) |
( |
) |
||||||||||||
Comprehensive income attributable to SMP |
$ |
$ |
$ |
$ |
(In thousands, except share and per share data) |
June 30, 2021 |
December 31, 2020 |
||||||
(Unaudited) |
||||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ |
$ |
||||||
Accounts receivable, less allowances for discounts and doubtful accounts of $ |
||||||||
Inventories |
||||||||
Unreturned customer inventories |
||||||||
Prepaid expenses and other current assets |
||||||||
Total current assets |
||||||||
Property, plant and equipment, net of accumulated depreciation of $ |
||||||||
Operating lease right-of-use assets |
||||||||
Goodwill |
||||||||
Other intangibles, net |
||||||||
Deferred income taxes |
||||||||
Investments in unconsolidated affiliates |
||||||||
Other assets |
||||||||
Total assets |
$ |
$ |
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
CURRENT LIABILITIES: |
||||||||
Notes payable |
$ |
$ |
||||||
Current portion of other debt |
||||||||
Accounts payable |
||||||||
Sundry payables and accrued expenses |
||||||||
Accrued customer returns |
||||||||
Accrued core liability |
||||||||
Accrued rebates |
||||||||
Payroll and commissions |
||||||||
Total current liabilities |
||||||||
Long-term debt |
||||||||
Noncurrent operating lease liabilities |
||||||||
Other accrued liabilities |
||||||||
Accrued asbestos liabilities |
||||||||
Total liabilities |
||||||||
Commitments and contingencies |
||||||||
Stockholders’ equity: |
||||||||
Common stock – par value $ |
||||||||
Authorized – |
||||||||
Capital in excess of par value |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive income |
( |
) |
( |
) |
||||
Treasury stock – at cost ( |
( |
) |
( |
) |
||||
Total SMP stockholders’ equity |
||||||||
Noncontrolling interest |
||||||||
Total stockholders’ equity |
||||||||
Total liabilities and stockholders’ equity |
$ |
$ |
(In thousands) |
Six Months Ended June 30, |
|||||||
2021 |
2020 |
|||||||
(Unaudited) |
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net earnings |
$ |
$ |
||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
||||||||
Depreciation and amortization |
||||||||
Amortization of deferred financing cost |
||||||||
Increase to allowance for doubtful accounts |
||||||||
Increase (decrease) to inventory reserves |
( |
) |
||||||
Equity income from joint ventures |
( |
) |
( |
) |
||||
Employee stock ownership plan allocation |
||||||||
Stock-based compensation |
||||||||
(Increase) decrease in deferred income taxes |
( |
) |
||||||
Loss on discontinued operations, net of tax |
||||||||
Change in assets and liabilities: |
||||||||
(Increase) in accounts receivable |
( |
) |
( |
) |
||||
(Increase) decrease in inventories |
( |
) |
||||||
Decrease in prepaid expenses and other current assets |
||||||||
Increase (decrease) in accounts payable |
( |
) |
||||||
Increase (decrease) in sundry payables and accrued expenses |
( |
) |
||||||
Net change in other assets and liabilities |
( |
) |
( |
) |
||||
Net cash provided by (used in) operating activities |
( |
) |
||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Acquisitions of and investments in businesses |
( |
) |
||||||
Capital expenditures |
( |
) |
( |
) |
||||
Other investing activities |
||||||||
Net cash used in investing activities |
( |
) |
( |
) |
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Net borrowings under line-of-credit agreements |
||||||||
Net borrowings of other debt and capital lease obligations |
||||||||
Purchase of treasury stock |
( |
) |
( |
) |
||||
Increase in overdraft balances |
||||||||
Dividends paid |
( |
) |
( |
) |
||||
Net cash provided by financing activities |
||||||||
Effect of exchange rate changes on cash |
||||||||
Net increase in cash and cash equivalents |
||||||||
CASH AND CASH EQUIVALENTS at beginning of period |
||||||||
CASH AND CASH EQUIVALENTS at end of period |
$ |
$ |
||||||
Supplemental disclosure of cash flow information: |
||||||||
Cash paid during the period for: |
||||||||
Interest |
$ |
$ |
||||||
Income taxes |
$ |
$ |
(In thousands) |
Common Stock |
Capital in Excess of Par Value |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
Total SMP |
Non- Controlling Interest |
Total |
||||||||||||||||||||||||
Balance at March 31, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
||||||||||||||||||||
Noncontrolling interest acquired |
||||||||||||||||||||||||||||||||
Net earnings |
||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
( |
) |
||||||||||||||||||||||||||||||
Cash dividends paid |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||
Purchase of treasury stock |
||||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Employee Stock Ownership Plan |
||||||||||||||||||||||||||||||||
Balance at June 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
(In thousands) |
Common Stock |
Capital in Excess of Par Value |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
Total SMP |
Non- Controlling Interest |
Total |
||||||||||||||||||||||||
Balance at March 31, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
||||||||||||||||||||
Net earnings |
||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
||||||||||||||||||||||||||||||||
Cash dividends paid |
||||||||||||||||||||||||||||||||
Purchase of treasury stock |
||||||||||||||||||||||||||||||||
Stock-based compensation |
( |
) |
||||||||||||||||||||||||||||||
Employee Stock Ownership Plan |
||||||||||||||||||||||||||||||||
Balance at June 30, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
(In thousands) |
Common Stock |
Capital in Excess of Par Value |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
Total SMP |
Non- Controlling Interest |
Total |
||||||||||||||||||||||||
Balance at December 31, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
||||||||||||||||||||
Noncontrolling interest acquired |
||||||||||||||||||||||||||||||||
Net earnings |
||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
( |
) |
||||||||||||||||||||||||||||||
Cash dividends paid |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||
Purchase of treasury stock |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Employee Stock Ownership Plan |
||||||||||||||||||||||||||||||||
Balance at June 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
(In thousands) |
Common Stock |
Capital in Excess of Par Value |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
Total SMP |
Non- Controlling Interest |
Total |
||||||||||||||||||||||||
Balance at December 31, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
||||||||||||||||||||
Net earnings |
||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||
Cash dividends paid |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||
Purchase of treasury stock |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Employee Stock Ownership Plan |
||||||||||||||||||||||||||||||||
Balance at June 30, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
Standard |
Description |
Date of adoption |
Effects on the financial statements or other significant matters |
|||
ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
This standard is intended to simplify the accounting for income taxes by removing certain ASC Topic 740 exceptions in performing intra-period tax allocations among income statement components, in calculating certain deferred tax liabilities related to outside basis differences, and in calculating income taxes in interim periods with year-to-date losses. In addition, this standard is also intended to improve consistency and add simplification by clarifying and amending the reporting of franchise taxes and other taxes partially based on income, the recognition of deferred income taxes related to the step-up in tax basis goodwill, and the reporting in interim periods of the recognition of the enactment of tax laws or rate changes. |
January 1, 2021 |
The adoption of the technical clarifications in the standard did not materially impact our accounting for income taxes, our consolidated financial statements and related disclosures. |
Standard |
Description |
Date of adoption / Effective date |
Effects on the financial statements or other significant matters |
|||
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
This standard is intended to provide optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The new standard is applicable to contracts that reference LIBOR, or another reference rate, expected to be discontinued due to reference rate reform. |
Effective March 12, 2020 through December 31, 2022 |
The new standard may be applied as of the beginning of an interim period that includes March 12, 2020 through December 31, 2022. As certain of our contracts reference LIBOR, including our revolving credit facility and supply chain financing arrangements, we are currently reviewing the optional guidance in the standard to determine its impact upon the discontinuance of LIBOR. At this time, we do not believe that the new guidance, nor the discontinuance of LIBOR, will have a material impact on our consolidated financial statements and related disclosures. |
Purchase price |
$ |
|||||||
Assets acquired and liabilities assumed: |
||||||||
Receivables |
$ |
|||||||
Inventory |
||||||||
Other current assets (1) |
||||||||
Property, plant and equipment, net |
||||||||
Operating lease right-of-use assets |
||||||||
Intangible assets |
||||||||
Goodwill |
||||||||
Current liabilities |
( |
) |
||||||
Noncurrent operating lease liabilities |
( |
) |
||||||
Deferred income taxes |
( |
) |
||||||
Subtotal |
||||||||
Fair value of acquired noncontrolling interest |
( |
) |
||||||
Net assets acquired |
$ |
(1) |
Purchase Price |
$ |
|||||||
Assets acquired and liabilities assumed: |
||||||||
Inventory |
$ |
|||||||
Machinery and equipment, net |
||||||||
Intangible assets |
||||||||
Net assets acquired |
$ |
Workforce Reduction |
Other Exit Costs |
Total |
||||||||||
Exit activity liability at December 31, 2020 |
$ |
$ |
$ |
|||||||||
Cash payments |
( |
) |
( |
) |
||||||||
Exit activity liability at June 30, 2021 |
$ |
$ |
$ |
June 30, 2021 |
December 31, 2020 |
|||||||
(In thousands) |
||||||||
Finished goods |
$ |
$ |
||||||
Work in process |
||||||||
Raw materials |
||||||||
Subtotal |
||||||||
Unreturned customer inventories |
||||||||
Total inventories |
$ |
$ |
June 30, 2021 |
December 31, 2020 |
|||||||
(In thousands) |
||||||||
Customer relationships |
$ |
$ |
||||||
Patents, developed technology and intellectual property |
||||||||
Trademarks and trade names |
||||||||
Non-compete agreements |
||||||||
Supply agreements |
||||||||
Leaseholds |
||||||||
Total acquired intangible assets |
||||||||
Less accumulated amortization (1) |
( |
) |
( |
) |
||||
Net acquired intangible assets |
$ |
$ |
(1) |
Balance Sheet Information |
June 30, 2021 |
December 31, 2020 |
||||||
Assets |
||||||||
Operating lease right-of-use assets |
$ |
$ |
||||||
Liabilities |
||||||||
Sundry payables and accrued expenses |
$ |
$ |
||||||
Noncurrent operating lease liabilities |
||||||||
Total operating lease liabilities |
$ |
$ |
||||||
Weighted Average Remaining Lease Term |
||||||||
Operating leases |
||||||||
Weighted Average Discount Rate |
||||||||
Operating leases |
% |
% |
Three Months Ended June 30, |
||||||||
Expense and Cash Flow Information |
2021 |
2020 |
||||||
Lease Expense |
||||||||
Operating lease expense (a) |
$ |
$ |
Six Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
Lease Expense |
||||||||
Operating lease expense (a) |
$ |
$ |
||||||
Supplemental Cash Flow Information |
||||||||
Cash paid for the amounts included in the measurement of lease liabilities: |
||||||||
Operating cash flows from operating leases |
$ |
$ |
||||||
Right-of-use assets obtained in exchange for new lease obligations: |
||||||||
Operating leases |
$ |
$ |
(a) |
2021 |
$ |
|||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
Total lease payments |
$ |
|||
Less: Interest |
( |
) |
||
Present value of lease liabilities |
$ |
June 30, 2021 |
December 31, 2020 |
|||||||
(In thousands) |
||||||||
Revolving credit facilities |
$ |
$ |
||||||
Other (1) |
||||||||
Total debt |
$ |
$ |
||||||
Current maturities of debt |
$ |
$ |
||||||
Long-term debt |
||||||||
Total debt |
$ |
$ |
(1) |
Shares |
Weighted Average Grant Date Fair Value Per Share |
|||||||
Balance at December 31, 2020 |
$ |
|||||||
Granted |
||||||||
Vested |
( |
) |
||||||
Forfeited |
( |
) |
||||||
Balance at June 30, 2021 |
$ |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Net Earnings Attributable to SMP |
||||||||||||||||
Earnings from continuing operations |
$ |
$ |
$ |
$ |
||||||||||||
Loss from discontinued operations |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net earnings attributable to SMP |
$ |
$ |
$ |
$ |
||||||||||||
Basic Net Earnings Per Common Share Attributable to SMP |
||||||||||||||||
Earnings from continuing operations per common share |
$ |
$ |
$ |
$ |
||||||||||||
Loss from discontinued operations per common share |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net earnings per common share attributable to SMP |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average common shares outstanding |
||||||||||||||||
Diluted Net Earnings Per Common Share Attributable to SMP |
||||||||||||||||
Earnings from continuing operations per common share |
$ |
$ |
$ |
$ |
||||||||||||
Loss from discontinued operations per common share |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net earnings per common share attributable to SMP |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average common shares outstanding |
||||||||||||||||
Plus incremental shares from assumed conversions: |
||||||||||||||||
Dilutive effect of restricted stock and performance-based stock |
||||||||||||||||
Weighted average common shares outstanding – Diluted |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Restricted and performance-based shares |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Net Sales (a) |
||||||||||||||||
Engine Management |
$ |
$ |
$ |
$ |
||||||||||||
Temperature Control |
||||||||||||||||
All Other |
||||||||||||||||
Consolidated |
$ |
$ |
$ |
$ |
||||||||||||
Intersegment Revenue (a) |
||||||||||||||||
Engine Management |
$ |
$ |
$ |
$ |
||||||||||||
Temperature Control |
||||||||||||||||
All Other |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Consolidated |
$ |
$ |
$ |
$ |
||||||||||||
Operating Income |
||||||||||||||||
Engine Management |
$ |
$ |
$ |
$ |
||||||||||||
Temperature Control |
||||||||||||||||
All Other |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Consolidated |
$ |
$ |
$ |
$ |
(a) |
Three months ended June 30, 2021 (a) |
Engine Management |
Temperature Control |
Other (b) |
Total |
||||||||||||
Geographic Area: |
||||||||||||||||
United States |
$ |
$ |
$ |
$ |
||||||||||||
Canada |
||||||||||||||||
Asia |
||||||||||||||||
Mexico |
||||||||||||||||
Europe |
||||||||||||||||
Other foreign |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
Major Product Group: |
||||||||||||||||
Ignition, emission control, fuel and safety related system products |
$ |
$ |
$ |
$ |
||||||||||||
Wire and cable |
( |
) |
||||||||||||||
Compressors |
||||||||||||||||
Other climate control parts |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
Major Sales Channel: |
||||||||||||||||
Aftermarket |
$ |
$ |
$ |
$ |
||||||||||||
OE/OES |
||||||||||||||||
Export |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
Three months ended June 30, 2020 (a) |
Engine Management |
Temperature Control |
Other (b) |
Total |
||||||||||||
Geographic Area: |
||||||||||||||||
United States |
$ |
$ |
$ |
$ |
||||||||||||
Canada |
||||||||||||||||
Asia |
||||||||||||||||
Mexico |
||||||||||||||||
Europe |
||||||||||||||||
Other foreign |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
Major Product Group: |
||||||||||||||||
Ignition, emission control, fuel and safety related system products |
$ |
$ |
$ |
$ |
||||||||||||
Wire and cable |
||||||||||||||||
Compressors |
||||||||||||||||
Other climate control parts |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
Major Sales Channel: |
||||||||||||||||
Aftermarket |
$ |
$ |
$ |
$ |
||||||||||||
OE/OES |
||||||||||||||||
Export |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
Six months ended June 30, 2021 (a) |
Engine Management |
Temperature Control |
Other (b) |
Total |
||||||||||||
Geographic Area: |
||||||||||||||||
United States |
$ |
$ |
$ |
$ |
||||||||||||
Canada |
||||||||||||||||
Asia |
||||||||||||||||
Mexico |
||||||||||||||||
Europe |
||||||||||||||||
Other foreign |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
Major Product Group: |
||||||||||||||||
Ignition, emission control, fuel and safety related system products |
$ |
$ |
$ |
$ |
||||||||||||
Wire and cable |
( |
) |
||||||||||||||
Compressors |
||||||||||||||||
Other climate control parts |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
Major Sales Channel: |
||||||||||||||||
Aftermarket |
$ |
$ |
$ |
$ |
||||||||||||
OE/OES |
||||||||||||||||
Export |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
Six months ended June 30, 2020 (a) |
Engine Management |
Temperature Control |
Other (b) |
Total |
||||||||||||
Geographic Area: |
||||||||||||||||
United States |
$ |
$ |
$ |
$ |
||||||||||||
Canada |
||||||||||||||||
Asia |
||||||||||||||||
Mexico |
||||||||||||||||
Europe |
||||||||||||||||
Other foreign |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
Major Product Group: |
||||||||||||||||
Ignition, emission control, fuel and safety related system products |
$ |
$ |
$ |
$ |
||||||||||||
Wire and cable |
( |
) |
||||||||||||||
Compressors |
||||||||||||||||
Other climate control parts |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
Major Sales Channel: |
||||||||||||||||
Aftermarket |
$ |
$ |
$ |
$ |
||||||||||||
OE/OES |
||||||||||||||||
Export |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
(a) |
(b) |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Balance, beginning of period |
$ |
$ |
$ |
$ |
||||||||||||
Liabilities accrued for current year sales |
||||||||||||||||
Settlements of warranty claims |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Balance, end of period |
$ |
$ |
$ |
$ |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
Engine Management: |
||||||||
Ignition, Emission Control, Fuel and Safety Related System Products |
$ |
192,486 |
$ |
142,787 |
||||
Wire and Cable |
40,730 |
30,366 |
||||||
Total Engine Management |
233,216 |
173,153 |
||||||
Temperature Control: |
||||||||
Compressors |
69,577 |
44,878 |
||||||
Other Climate Control Parts |
36,894 |
27,514 |
||||||
Total Temperature Control |
106,471 |
72,392 |
||||||
All Other |
2,389 |
2,394 |
||||||
Total |
$ |
342,076 |
$ |
247,939 |
Three Months Ended June 30, |
Engine Management |
Temperature Control |
Other |
Total |
||||||||||||
2021 |
||||||||||||||||
Net sales |
$ |
233,216 |
$ |
106,471 |
$ |
2,389 |
$ |
342,076 |
||||||||
Gross margins |
67,447 |
28,658 |
3,167 |
99,272 |
||||||||||||
Gross margin percentage |
28.9 |
% |
26.9 |
% |
— |
29 |
% |
|||||||||
2020 |
||||||||||||||||
Net sales |
$ |
173,153 |
$ |
72,392 |
$ |
2,394 |
$ |
247,939 |
||||||||
Gross margins |
46,230 |
16,520 |
1,608 |
64,358 |
||||||||||||
Gross margin percentage |
26.7 |
% |
22.8 |
% |
— |
26 |
% |
Six Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
Engine Management: |
||||||||
Ignition, Emission Control, Fuel and Safety Related System Products |
$ |
366,152 |
$ |
307,313 |
||||
Wire and Cable |
79,082 |
66,958 |
||||||
Total Engine Management |
445,234 |
374,271 |
||||||
Temperature Control: |
||||||||
Compressors |
102,951 |
70,226 |
||||||
Other Climate Control Parts |
65,993 |
53,608 |
||||||
Total Temperature Control |
168,944 |
123,834 |
||||||
All Other |
4,451 |
4,136 |
||||||
Total |
$ |
618,629 |
$ |
502,241 |
Six Months Ended June 30, |
Engine Management |
Temperature Control |
Other |
Total |
||||||||||||
2021 |
||||||||||||||||
Net sales |
$ |
445,234 |
$ |
168,944 |
$ |
4,451 |
$ |
618,629 |
||||||||
Gross margins |
132,517 |
44,653 |
5,886 |
183,056 |
||||||||||||
Gross margin percentage |
29.8 |
% |
26.4 |
% |
— |
29.6 |
% |
|||||||||
2020 |
||||||||||||||||
Net sales |
$ |
374,271 |
$ |
123,834 |
$ |
4,136 |
$ |
502,241 |
||||||||
Gross margins |
102,935 |
28,616 |
3,202 |
134,753 |
||||||||||||
Gross margin percentage |
27.5 |
% |
23.1 |
% |
— |
26.8 |
% |
(In thousands) |
2021 |
2022 |
2023 |
2024 |
2025 |
2026-2028 |
Total |
|||||||||||||||||||||
Operating lease obligations |
$ |
5,110 |
$ |
9,681 |
$ |
8,700 |
$ |
6,370 |
$ |
5,248 |
$ |
8,835 |
$ |
43,944 |
||||||||||||||
Postretirement benefits |
16 |
29 |
25 |
25 |
25 |
25 |
145 |
|||||||||||||||||||||
Severance payments related to restructuring and integration |
66 |
40 |
1 |
— |
— |
— |
107 |
|||||||||||||||||||||
Total commitments |
$ |
5,192 |
$ |
9,750 |
$ |
8,726 |
$ |
6,395 |
$ |
5,273 |
$ |
8,860 |
$ |
44,196 |
(a) | Indebtedness under our revolving credit facility is not included in the table above as it is reported as a current liability in our consolidated balance sheets. As of June 30, 2021, amounts outstanding under our revolving credit facilities were $135 million. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
(a) | Evaluation of Disclosure Controls and Procedures. |
(b) | Changes in Internal Control Over Financial Reporting. |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 6. | EXHIBITS |
Exhibit Number |
|
31.1 |
|
31.2 |
|
32.1 |
|
32.2 |
101.INS** |
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
101.SCH** |
Inline XBRL Taxonomy Extension Schema Document. |
101.CAL** |
Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.LAB** |
Inline XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE** |
Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
101.DEF** |
Inline XBRL Taxonomy Extension Definition Linkbase Document. |
104 |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
** | 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.” |
STANDARD MOTOR PRODUCTS, INC. |
|
(Registrant) |
|
Date: August 5, 2021 |
/s/ Nathan R. Iles |
Nathan R. Iles |
|
Chief Financial Officer |
|
(Principal Financial and |
|
Accounting Officer) |
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: August 5, 2021
|
|
/s/ Eric P. Sills
|
|
Eric P. Sills
|
|
Chief Executive Officer and President
|
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: August 5, 2021
|
|
/s/ Nathan R. Iles
|
|
Nathan R. Iles
|
|
Chief Financial Officer
|
(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/ Eric P. Sills
|
|
Eric P. Sills
|
|
Chief Executive Officer and President
|
|
August 5, 2021
|
(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/ Nathan R. Iles
|
|
Nathan R. Iles
|
|
Chief Financial Officer
|
|
August 5, 2021
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net earnings | $ 27,161 | $ 10,967 | $ 48,161 | $ 19,594 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 2,477 | 1,877 | 561 | (4,424) |
Pension and postretirement plans | (4) | (4) | (9) | (8) |
Total other comprehensive income, net of tax | 2,473 | 1,873 | 552 | (4,432) |
Total Comprehensive income | 29,634 | 12,840 | 48,713 | 15,162 |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax: | ||||
Net earnings | 19 | 0 | 19 | 0 |
Foreign currency translation adjustments | (22) | 0 | (22) | 0 |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax | (3) | 0 | (3) | 0 |
Comprehensive income attributable to SMP | $ 29,637 | $ 12,840 | $ 48,716 | $ 15,162 |
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 27,453 | $ 19,488 |
Accounts receivable, less allowances for discounts and doubtful accounts of $6,218 and $5,822 for 2021 and 2020, respectively | 211,778 | 198,039 |
Inventories | 404,876 | 345,502 |
Unreturned customer inventories | 22,070 | 19,632 |
Prepaid expenses and other current assets | 14,492 | 15,875 |
Total current assets | 680,669 | 598,536 |
Property, plant and equipment, net of accumulated depreciation of $222,302 and $214,394 for 2021 and 2020, respectively | 96,762 | 89,105 |
Operating lease right-of-use assets | 39,095 | 29,958 |
Goodwill | 126,893 | 77,837 |
Other intangibles, net | 105,462 | 54,004 |
Deferred income taxes | 38,915 | 44,770 |
Investments in unconsolidated affiliates | 42,070 | 40,507 |
Other assets | 25,409 | 21,823 |
Total assets | 1,155,275 | 956,540 |
CURRENT LIABILITIES: | ||
Notes payable | 135,000 | 10,000 |
Current portion of other debt | 2,397 | 135 |
Accounts payable | 119,632 | 100,018 |
Sundry payables and accrued expenses | 42,410 | 47,078 |
Accrued customer returns | 53,062 | 40,982 |
Accrued core liability | 23,318 | 22,014 |
Accrued rebates | 41,885 | 46,437 |
Payroll and commissions | 29,363 | 35,938 |
Total current liabilities | 447,067 | 302,602 |
Long-term debt | 80 | 97 |
Noncurrent operating lease liabilities | 30,495 | 22,450 |
Other accrued liabilities | 28,481 | 25,929 |
Accrued asbestos liabilities | 54,035 | 55,226 |
Total liabilities | 560,158 | 406,304 |
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 | 107,062 | 105,084 |
Retained earnings | 500,620 | 463,612 |
Accumulated other comprehensive income | (5,102) | (5,676) |
Treasury stock - at cost (1,715,406 shares and 1,586,923 shares in 2021 and 2020, respectively) | (66,836) | (60,656) |
Total SMP stockholders' equity | 583,616 | 550,236 |
Noncontrolling interest | 11,501 | 0 |
Total stockholders' equity | 595,117 | 550,236 |
Total liabilities and stockholders' equity | $ 1,155,275 | $ 956,540 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
CURRENT ASSETS: | ||
Accounts receivable, allowances for discounts and doubtful accounts | $ 6,218 | $ 5,822 |
Property, plant and equipment, accumulated depreciation | $ 222,302 | $ 214,394 |
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) | 1,715,406 | 1,586,923 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 48,161 | $ 19,594 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 13,100 | 12,877 |
Amortization of deferred financing cost | 114 | 114 |
Increase to allowance for doubtful accounts | 321 | 376 |
Increase (decrease) to inventory reserves | (463) | 3,048 |
Equity income from joint ventures | (1,156) | (429) |
Employee stock ownership plan allocation | 1,257 | 1,150 |
Stock-based compensation | 4,381 | 3,306 |
(Increase) decrease in deferred income taxes | (2,344) | 232 |
Loss on discontinued operations, net of tax | 2,017 | 1,869 |
Change in assets and liabilities: | ||
(Increase) in accounts receivable | (4,715) | (38,623) |
(Increase) decrease in inventories | (46,682) | 12,725 |
Decrease in prepaid expenses and other current assets | 3,220 | 5,664 |
Increase (decrease) in accounts payable | 16,097 | (21,804) |
Increase (decrease) in sundry payables and accrued expenses | (6,491) | 2,085 |
Net change in other assets and liabilities | (3,664) | (3,069) |
Net cash provided by (used in) operating activities | 23,153 | (885) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of and investments in businesses | (109,267) | 0 |
Capital expenditures | (11,709) | (9,026) |
Other investing activities | 2 | 6 |
Net cash used in investing activities | (120,974) | (9,020) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net borrowings under line-of-credit agreements | 125,000 | 32,540 |
Net borrowings of other debt and capital lease obligations | 2,250 | 1,809 |
Purchase of treasury stock | (11,096) | (8,726) |
Increase in overdraft balances | 694 | 1,818 |
Dividends paid | (11,134) | (5,615) |
Net cash provided by financing activities | 105,714 | 21,826 |
Effect of exchange rate changes on cash | 72 | 217 |
Net increase in cash and cash equivalents | 7,965 | 12,138 |
CASH AND CASH EQUIVALENTS at beginning of period | 19,488 | 10,372 |
CASH AND CASH EQUIVALENTS at end of period | 27,453 | 22,510 |
Cash paid during the period for: | ||
Interest | 481 | 1,561 |
Income taxes | $ 12,803 | $ 1,030 |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands |
Common Stock [Member] |
Capital in Excess of Par Value [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Treasury Stock [Member] |
Total SMP [Member] |
Non-Controlling Interest [Member] |
Total |
---|---|---|---|---|---|---|---|---|
Balance at beginning of period at Dec. 31, 2019 | $ 47,872 | $ 102,742 | $ 417,437 | $ (8,589) | $ (55,234) | $ 504,228 | $ 0 | $ 504,228 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 19,594 | 0 | 0 | 19,594 | 0 | 19,594 |
Other comprehensive income, net of tax | 0 | 0 | 0 | (4,432) | 0 | (4,432) | 0 | (4,432) |
Cash dividends paid | 0 | 0 | (5,615) | 0 | 0 | (5,615) | 0 | (5,615) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (8,726) | (8,726) | 0 | (8,726) |
Stock-based compensation | 0 | 756 | 0 | 0 | 2,550 | 3,306 | 0 | 3,306 |
Employee Stock Ownership Plan | 0 | 630 | 0 | 0 | 1,671 | 2,301 | 0 | 2,301 |
Balance at end of period at Jun. 30, 2020 | 47,872 | 104,128 | 431,416 | (13,021) | (59,739) | 510,656 | 0 | 510,656 |
Balance at beginning of period at Mar. 31, 2020 | 47,872 | 104,245 | 420,449 | (14,894) | (61,059) | 496,613 | 0 | 496,613 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 10,967 | 0 | 0 | 10,967 | 0 | 10,967 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 1,873 | 0 | 1,873 | 0 | 1,873 |
Cash dividends paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation | 0 | (117) | 0 | 0 | 1,320 | 1,203 | 0 | 1,203 |
Employee Stock Ownership Plan | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Balance at end of period at Jun. 30, 2020 | 47,872 | 104,128 | 431,416 | (13,021) | (59,739) | 510,656 | 0 | 510,656 |
Balance at beginning of period at Dec. 31, 2020 | 47,872 | 105,084 | 463,612 | (5,676) | (60,656) | 550,236 | 0 | 550,236 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling interest acquired | 0 | 0 | 0 | 0 | 0 | 0 | 11,504 | 11,504 |
Net earnings | 0 | 0 | 48,142 | 0 | 0 | 48,142 | 19 | 48,161 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 574 | 0 | 574 | (22) | 552 |
Cash dividends paid | 0 | 0 | (11,134) | 0 | 0 | (11,134) | 0 | (11,134) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (11,096) | (11,096) | 0 | (11,096) |
Stock-based compensation | 0 | 1,844 | 0 | 0 | 2,537 | 4,381 | 0 | 4,381 |
Employee Stock Ownership Plan | 0 | 134 | 0 | 0 | 2,379 | 2,513 | 0 | 2,513 |
Balance at end of period at Jun. 30, 2021 | 47,872 | 107,062 | 500,620 | (5,102) | (66,836) | 583,616 | 11,501 | 595,117 |
Balance at beginning of period at Mar. 31, 2021 | 47,872 | 106,366 | 479,024 | (7,597) | (68,725) | 556,940 | 0 | 556,940 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling interest acquired | 0 | 0 | 0 | 0 | 0 | 0 | 11,504 | 11,504 |
Net earnings | 0 | 0 | 27,142 | 0 | 0 | 27,142 | 19 | 27,161 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 2,495 | 0 | 2,495 | (22) | 2,473 |
Cash dividends paid | 0 | 0 | (5,546) | 0 | 0 | (5,546) | 0 | (5,546) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation | 0 | 696 | 0 | 0 | 1,889 | 2,585 | 0 | 2,585 |
Employee Stock Ownership Plan | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Balance at end of period at Jun. 30, 2021 | $ 47,872 | $ 107,062 | $ 500,620 | $ (5,102) | $ (66,836) | $ 583,616 | $ 11,501 | $ 595,117 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Basis of Presentation [Abstract] | |
Basis of Presentation |
Note 1. Basis of Presentation
Standard Motor Products, Inc. and subsidiaries (referred to hereinafter in these notes to the consolidated financial statements as “we,” “us,” “our,” “SMP,” or the “Company”) is a leading automotive parts manufacturer and distributor for engine management and temperature control systems of motor vehicles in the automotive aftermarket industry with a complementary focus on the heavy duty, industrial equipment and original equipment service markets.
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, 2020. The unaudited consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 50% equity ownership, except in instances where the minority shareholder maintains substantive participating rights, in which case we follow the equity method of accounting. In instances where we have more than a 50% equity ownership and the minority shareholder does not maintain substantive participating rights, our consolidated financial statements include the accounts of the company on a consolidated basis with its net income and equity reported at amounts attributable to both our equity position and that of the noncontrolling interest. Investments in unconsolidated affiliates are accounted for on the equity method, as we do not have a controlling financial interest but have the ability to exercise significant influence. 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.
Reclassification
Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2021 presentation.
|
Summary of Significant Accounting Policies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||
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. Although we do not believe that there is a reasonable likelihood that there will be a material change in the future estimates, or in the assumptions that we use in calculating the estimates, the uncertain future effects, if any, of the COVID-19 pandemic, and other unforeseen changes in the industry, or business, could materially impact the estimates, and may have a material adverse effect on our business, financial condition and results of operations. Some of the more significant estimates include allowances for doubtful accounts, cash discounts, valuation of inventory, valuation of long-lived assets, goodwill and other intangible assets, depreciation and amortization of long-lived assets, product liability exposures, asbestos, environmental and litigation matters, valuation of deferred tax assets, share based compensation and sales returns and other 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, 2020.
Recently Issued Accounting Pronouncements
Standards that were adopted
Standards that are not yet adopted as of June 30, 2021
The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted as of June 30, 2021, and that could have an impact on our financial statements:
|
Business Acquisitions and Investments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions and Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions and Investments |
Note 3. Business Acquisitions and Investments
2021 Business Acquisitions
Acquisition of Capital Stock of Trumpet Holdings, Inc. (“Trombetta”)
In May 2021, we acquired 100% of the capital stock of Trumpet Holdings, Inc., a Delaware corporation, (more commonly known as “Trombetta”), for $111.7 million, subject to certain post-closing adjustments. Trombetta is a leading provider of power switching and power management products to Original Equipment (‘‘OE’’) customers in various markets. The acquired Trombetta business was paid for in cash funded by borrowings under our revolving credit facility with JPMorgan Chase Bank, N.A., as agent, and has manufacturing facilities in Milwaukee, Wisconsin; Sheboygan Falls, Wisconsin; Tijuana, Mexico, as well as a 70% ownership in a joint venture in Hong Kong, with operations in Shanghai and Wuxi, China (“Trombetta Asia, Ltd.”). The acquisition will be reported as part of our Engine Management Segment, is an excellent fit for our strategy of expansion into the OE heavy duty market.
The preliminary allocation of purchase price to assets acquired and liabilities assumed is based upon estimates of fair values utilizing customary valuation procedures and techniques, as well as other information compiled by management. While we believe these preliminary estimates provide a reasonable basis for estimating the fair value of the assets acquired and liabilities assumed, and do not anticipate that any adjustments to these values will be significant, we will continue to evaluate available information prior to finalization of the amounts, particularly the amounts related to intangible assets, deferred income taxes, noncontrolling interests and the final agreement of post-closing adjustments. The following table presents the preliminary allocation of the purchase price to the assets acquired and liabilities assumed (in thousands):
Intangible assets acquired of $54.7 million consist of customer relationships of $39.4 million that will be amortized on a straight-line basis over the estimated useful life of 20 years; developed technology of $13.4 million that will be amortized on a straight-line basis over the estimated useful life of 15 years; and a trade name of $1.9 million that will be amortized on a straight-line basis over the estimated useful life of 10 years. Goodwill of $49 million was allocated to the Engine Management Segment. The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations. The intangible assets and goodwill are not deductible for tax purposes.
Revenues from the acquired business included in our consolidated statement of operations from the acquisition date through June 30, 2021 were $5.7 million.
Acquisition of Particulate Matter Sensor Business of Stoneridge, Inc.
In March 2021, we agreed to acquire the soot sensor product lines from Stoneridge, Inc. The product lines to be acquired manufacture sensors used in the exhaust and emission systems of diesel engines. The product lines are located in Stoneridge’s facilities in Lexington, Ohio and Tallinn, Estonia. We are not acquiring these facilities, nor any of Stoneridge’s employees, and will be relocating the production lines to our engine management plants in Independence, Kansas and Bialystok, Poland, respectively. The acquisition, to be reported as part of our Engine Management Segment, is an excellent fit for our strategy of expansion into the OE heavy duty market. Customer relationships to be acquired include Volvo, CNHi and Hino.
The product lines located in Stoneridge’s facility in Lexington, Ohio were acquired in March 2021 for $2.1 million, and were paid for in cash funded by borrowings under our revolving credit facility with JPMorgan Chase Bank, N.A. The assets acquired include inventory, machinery & equipment and certain intangible assets. The product lines at Stoneridge’s Tallinn, Estonia facility will be acquired at a future date for approximately $800,000. Tallinn, Estonia assets to be acquired consist solely of machinery & equipment.
The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed through June 30, 2021, based on their fair values (in thousands):
Intangible assets acquired of approximately $0.8 million consist of customer relationships that will be amortized on a straight-line basis over the estimated useful life of 10 years.
Revenues from the acquired business included in our consolidated statement of operations from the acquisition date through June 30, 2021 were $3.8 million.
|
Restructuring and Integration Expenses |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Integration Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Integration Expenses |
Note 4. Restructuring and Integration Expenses
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, 2020 and June 30, 2021 and for the six months ended June 30, 2021, consisted of the following (in thousands):
Restructuring Costs
Plant Rationalization Programs
The 2016 Plant Rationalization Program, which included the shutdown and sale of our Grapevine, Texas facility, and the 2017 Orlando Plant Rationalization Program, which included the shutdown our Orlando Florida facility, have been substantially completed. Cash payments made of $72,000 during the six months ended June 30, 2021, and the remaining aggregate liability of $107,000 consists of severance payments to former employees terminated in connection with these programs.
|
Sale of Receivables |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Sale of Receivables [Abstract] | |
Sale of Receivables |
Note 5. Sale of Receivables
We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions. We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements 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 $203.1 million and $394.4 million of receivables during the three months and six months ended June 30, 2021, respectively, and $147.7 million and $297.9 million for the comparable periods in 2020. Receivables presented at financial institutions and not yet sold as of June 30, 2021 and December 31, 2020 were approximately $5 million and $50 million, respectively, and remained in our accounts receivable balance for those periods. All receivables sold were reflected as a reduction of accounts receivable in the consolidated balance sheet at the time of sale. A charge in the amount of $3 million and $5.7 million related to the sale of receivables was included in selling, general and administrative expense in our consolidated statements of operations for the three months and six months ended June 30, 2021, respectively, and $3.1 million and $5.9 million for the comparable periods in 2020.
To the extent that these arrangements are terminated, our financial condition, results of operations, cash flows and liquidity could be adversely affected by extended payment terms, delays or failures in collecting trade accounts receivables. The utility of the supply chain financing arrangements also depends upon the LIBOR rate, as it is a component of the discount rate applicable to each arrangement. If the LIBOR rate increases significantly, we may be negatively impacted as we may not be able to pass these added costs on to our customers, which could have a material and adverse effect upon our financial condition, results of operations and cash flows.
|
Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
Note 6. Inventories
Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) and net realizable value, consist of the following:
|
Acquired Intangible Assets |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired Intangible Assets |
Note 7. Acquired Intangible Assets
Acquired identifiable intangible assets consist of the following:
In May 2021, we acquired 100% of the capital stock of Trumpet Holdings, Inc. (more commonly known as “Trombetta”). Intangible assets acquired of $54.7 million consist of customer relationships of $39.4 million that will be amortized on a straight-line basis over the estimated useful life of 20 years; developed technology of $13.4 million that will be amortized on a straight-line basis over the estimated useful life of 15 years; and a trade name of $1.9 million that will be amortized on a straight-line basis over the estimated useful life of 10 years.
In March 2021, we acquired certain assets and liabilities of the particulate matter sensor product lines from Stoneridge, Inc. Intangible assets acquired of approximately $0.8 million consist of customer relationships that will be amortized on a straight-line basis over the estimated useful life of 10 years.
Total amortization expense for acquired intangible assets was $2.1 million and $4.1 million for the three months and six months ended June 30, 2021, respectively, and $2 million and $4.1 million for the comparable periods in 2020. Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be $4.6 million for the remainder of 2021, $8.4 million in 2022, $8.1 million in 2023, $8 million in 2024 and $73.1 million in the aggregate for the years 2025 through 2041.
|
Leases |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
Note 8. Leases
We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to ten years, some of which may include one or more five-year renewal options. We have included the five-year renewal option for one of our leases in our operating lease payments as we concluded that it is reasonably certain that we will exercise the option. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term. Finance leases are not material.
The following tables provides quantitative disclosures related to our operating leases and includes all operating leases acquired in the Trombetta acquisition from the date of acquisition (in thousands):
Minimum Lease Payments
At June 30, 2021, we are obligated to make minimum lease payments through 2028, under operating leases, which are as follows (in thousands):
|
Credit Facilities and Long-Term Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Facilities and Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Facilities and Long-Term Debt |
Note 9. Credit Facilities and Long-Term Debt
Total debt outstanding is summarized as follows:
Revolving Credit Facility
In December 2018, we amended our Credit Agreement with JPMorgan Chase Bank, N.A., as agent, and a syndicate of lenders. The amended credit agreement provides for a senior secured revolving credit facility with a line of credit of up to $250 million (with an additional $50 million accordion feature) and extends the maturity date to
. The line of credit under the amended credit agreement also allows for a $10 million line of credit to Canada as part of the $250 million available for borrowing. Direct borrowings under the amended credit agreement bear interest at LIBOR plus a margin ranging from 1.25% to 1.75% based on our borrowing availability, or floating at the alternate base rate plus a margin ranging from 0.25% to 0.75% based on our borrowing availability, at our option. The amended credit agreement is guaranteed by certain of our subsidiaries and secured by certain of our assets.Borrowings under the amended credit agreement are secured by substantially all of our assets, including accounts receivable, inventory and certain fixed assets, and those of certain of our subsidiaries. Availability under the amended credit agreement is based on a formula of eligible accounts receivable, eligible drafts presented to the banks under our supply chain financing arrangements and eligible inventory. After taking into account outstanding borrowings under the amended credit agreement, there was an additional $112.3 million available for us to borrow pursuant to the formula at June 30, 2021. The loss of business of one or more of our key customers or, a significant reduction in purchases of our products from any one of them, could adversely impact availability under our revolving credit facility.
Outstanding borrowings under the credit agreement, which are classified as current liabilities, were $135 million and $10 million at June 30, 2021 and December 31, 2020, respectively; while letters of credit outstanding under the credit agreement were $2.6 million and $2.8 million at June 30, 2021 and December 31, 2020, respectively. Borrowings under the credit agreement have been classified as current liabilities based upon accounting rules and certain provisions in the agreement.
At June 30, 2021, the weighted average interest rate on our amended credit agreement was 1.3%, which consisted of $135 million in direct borrowings. At December 31, 2020, the weighted average interest rate on our amended credit agreement was 1.4%, which consisted of $10 million in direct borrowings. During the six months ended June 30, 2021, our average daily alternative base rate loan balance was $1 million, compared to a balance of $1.7 million for the six months ended June 30, 2020 and a balance of $1.5 million for the year ended December 31, 2020.
At any time that our borrowing availability is less than the greater of either (a) $25 million, or 10% of the commitments if fixed assets are not included in the borrowing base, or (b) $31.25 million, or 12.5% of the commitments if fixed assets are included in the borrowing base, the terms of the amended credit agreement provide for, among other provisions, a financial covenant requiring us, on a consolidated basis, to maintain a fixed charge coverage ratio of 1:1 at the end of each fiscal quarter (rolling four quarters). As of June 30, 2021, we were not subject to these covenants. The amended credit agreement permits us to pay cash dividends of $20 million and make stock repurchases of $20 million in any fiscal year subject to a minimum availability of $25 million. Provided specific conditions are met, the amended credit agreement also permits acquisitions, permissible debt financing, capital expenditures, and cash dividend payments and stock repurchases of greater than $20 million.
Polish Overdraft Facility
Our Polish subsidiary, SMP Poland sp. z.o.o., has entered into an overdraft facility with HSBC France (Spolka Akcyjna) Oddzial w Polsce, formerly HSBC Bank Polska S.A., for Zloty 30 million (approximately $7.9 million). The facility, as amended, expires in
. Borrowings under the overdraft facility will bear interest at a rate equal to WIBOR + 1.5% and are guaranteed by Standard Motor Products, Inc., the ultimate parent company. At June 30, 2021 and December 31, 2020, borrowings under the overdraft facility were Zloty 9 million (approximately $2.4 million) and Zloty 0.4 million (approximately $0.1 million), respectively.Deferred Financing Costs
We have deferred financing costs of approximately $0.5 million and $0.7 million as of June 30, 2021 and December 31, 2020, respectively. Deferred financing costs are related to our revolving credit facility. Deferred financing costs as of June 30, 2021 are being amortized in the amounts of $0.1 million for the remainder of 2021, $0.2 million in 2022, and $0.2 million in 2023.
|
Stock-Based Compensation Plans |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Plans |
Note 10. 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.
Restricted and Performance Stock Grants
In May 2021, our Board of Directors and Shareholders approved an amendment and restatement to the 2016 Omnibus Incentive Plan (the “Plan”). The Plan, as amended and restated (1) increased the number of shares available for issuance under the Plan by 950,000 shares (from 1,100,000 shares to 2,050,000 shares); (2) increased the number of shares available for issuance to nonemployee directors by 100,000 (from 250,000 shares to 350,000 shares); and (3) revised the Plan in response to certain changes made in applicable federal tax laws. The restated and amended 2016 Omnibus Incentive Plan terminates in May 2026.
Under the revised and amended 2016 Omnibus Incentive Plan, we are authorized to issue, among other things, shares of restricted and performance-based stock to eligible employees and restricted stock to directors of up to 2,050,000 shares. Shares issued under the Plan that are cancelled, forfeited or expire by their terms are eligible to be granted again under the Plan.
As part of the Plan, we currently grant shares of restricted stock to eligible employees and our independent directors and performance-based shares to eligible employees. We grant eligible employees two types of restricted stock (standard restricted shares and long-term retention restricted shares). Standard restricted shares granted to employees become fully vested no earlier than three years after the date of grant. Long-term retention restricted shares granted to selected executives vest at a 25% rate on or within approximately two months of an executive reaching the ages 60 and 63, and become fully vested on or within approximately two months of an executive reaching the age 65. Restricted shares granted to directors become vested upon the first anniversary of the date of grant.
Performance-based shares issued to eligible employees 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 no earlier than three years after the date of grant. Each period we evaluate the probability of achieving the applicable targets, and we adjust our accrual accordingly. Restricted shares (other than long-term retention restricted shares) and performance shares issued to certain key executives and directors are subject to a
or two year holding period upon the lapse of the vesting period. Forfeitures on stock grants are estimated at 5% for employees and 0% for executives and directors based on our evaluation of historical and expected future turnover.Our restricted and performance-based share activity was as follows for the six months ended June 30, 2021:
We recorded compensation expense related to restricted shares and performance-based shares of $4 million ($3 million, net of tax) and $3 million ($2.2 million, net of tax) for the six months ended June 30, 2021 and 2020, respectively. The unamortized compensation expense related to our restricted and performance-based shares was $13.1 million at June 30, 2021, and is expected to be recognized as they vest over a weighted average period of 4 years and 0.8 years for employees and directors, respectively.
|
Employee Benefits |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Employee Benefits [Abstract] | |
Employee Benefits |
Note 11. Employee Benefits
We provide certain medical and dental care benefits to 16 former U.S. union employees. The postretirement medical and dental benefit obligation to the former union employees as of June 30, 2021, and the related net periodic benefit cost for the plan for the three and six months ended June 30, 2021 and 2020 were not material.
We maintain a defined contribution Supplemental Executive Retirement Plan 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 2021, we made company contributions to the plan of $0.5 million related to calendar year 2020.
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 six months ended June 30, 2021, we contributed to the trust an additional 61,800 shares from our treasury and released 61,800 shares from the trust leaving 200 shares remaining in the trust as of June 30, 2021.
|
Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
Note 12. Earnings Per Share
The following are reconciliations of the net earnings attributable to SMP and the shares used in calculating basic and dilutive net earnings per common share attributable to SMP (in thousands, except per share data):
The shares listed below were not included in the computation of diluted net earnings per common share attributable to SMP because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands):
|
Fair Value Measurements |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements |
Note 13. Fair Value Measurements
The carrying value of our financial instruments consisting of cash and cash equivalents, deferred compensation, and short term borrowings approximate their fair value. In each instance, fair value is determined after considering Level 1 inputs under the three-level fair value hierarchy. 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 assets held by the deferred compensation plan are based on the quoted market prices of the underlying funds which are held in registered investment companies. 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.
|
Industry Segments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industry Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industry Segments |
Note 14. Industry Segments
We have two major reportable operating segments, each of which focuses on a specific line of automotive parts in the automotive aftermarket with a complementary focus on the heavy duty, industrial equipment and original equipment service markets. 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, intersegment revenue and operating income for each reportable segment (in thousands):
For the disaggregation of our net sales from contracts with customers by geographic area, major product group and major sales channels for each of our segments, see Note 15, “Net Sales.”
|
Net Sales |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales |
Note 15. Net Sales
Disaggregation of Net Sales
We disaggregate our net sales from contracts with customers by geographic area, major product group, and major sales channels for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our net sales are affected by economic factors.
The following tables provide disaggregation of net sales information for the three months and six months ended June 30, 2021 and 2020 (in thousands):
Geographic Area
We sell our line of products primarily in the United States, with additional sales in Canada, Mexico, Europe, Asia and Latin America. Sales are attributed to countries based upon the location of the customer. Our sales are substantially denominated in U.S. dollars.
Major Product Group
The Engine Management segment of the Company principally generates revenue from the sale of automotive engine parts in the automotive aftermarket including ignition, emission control, fuel and safety related system products, and wire and cable parts. The Temperature Control segment of the Company principally generates revenue from the sale of automotive temperature control systems parts in the automotive aftermarket including air conditioning compressors and other climate control parts.
Major Sales Channel
In the aftermarket channel, we sell our products to warehouse distributors and retailers. Our customers buy directly from us and sell directly to jobber stores, professional technicians and to “do-it-yourselfers” who perform automotive repairs on their personal vehicles. In the “OE” and Original Equipment Service (“OES”) channel, we sell our products to original equipment manufacturers who redistribute our products within their distribution network, ind ependent dealerships and service dealer technicians. Lastly, in the Export channel, our domestic entities sell to customers outside the United States.
|
Commitments and Contingencies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
Note 16. 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 in the accompanying statement of operations. 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 settlements, awards of asbestos-related damages, and defense of such claims. At June 30, 2021, approximately 1,610 cases were outstanding for which we may be responsible for any related liabilities. Since inception in September 2001 through June 30, 2021, the amounts paid for settled claims and awards of asbestos-related damages, including interest, were approximately $53.1 million. We do not have insurance coverage for the indemnity and defense costs associated with the claims we face.
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 such claims. 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; and perform an actuarial evaluation in the third quarter of each year and whenever events or changes in circumstances indicate that additional provisions may be necessary. 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 and awards of asbestos-related damages to date; and (5) an analysis of closed with pay ratios and lag patterns in order to develop average future settlement values. 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 and awards of asbestos-related damages 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.
In accordance with our policy to perform an annual actuarial evaluation in the third quarter of each year, and whenever events or changes in circumstances indicate that additional provisions may be necessary, an actuarial study was performed as of August 31, 2020. The results of the August 31, 2020 study included an estimate of our undiscounted liability for settlement payments and awards of asbestos-related damages, excluding legal costs and any potential recovery from insurance carriers, ranging from $58.1 million to $99.3 million for the period through 2065. Based upon the results of the August 31, 2020 actuarial study, in September 2020 we increased our asbestos liability to $58.1 million, the low end of the range, and recorded an incremental pre-tax provision of $8.7 million in earnings (loss) from discontinued operations.
As related to our potential asbestos-related liability as of August 31, 2020, we were found liable for $7.6 million in compensatory damages as a defendant in a 2018 asbestos liability case in California. We actively pursued our right of appeal, and during the fourth quarter of 2020, received notice that the appeal was unsuccessful. The judgment against us was for the $7.6 million in compensatory damages plus interest at a rate of ten percent (10%) per annum. During the fourth quarter of 2020, we paid the compensatory damages and accrued interest.
Based upon the reduction to our asbestos-related liability resulting from the payment made in the California asbestos case and fourth quarter 2020 cash settlements, in December 2020 our actuarial firm performed an updated actuarial study. The results of the updated study included an estimate of our undiscounted liability for settlement payments and awards of asbestos-related damages, excluding legal costs and any potential recovery from insurance carriers, ranging from $63 million to $99.1 million for the period through 2065. Based upon the results of the updated actuarial study and in accordance with our practice, we increased our asbestos liability as of November 2020 to $63 million, the low end of the range, and recorded an additional incremental pre-tax provision of $17 million in earnings (loss) from discontinued operations. Future legal costs, which are expensed as incurred and reported in earnings (loss) from discontinued operations, are estimated, according to the updated study, to range from $48.7 million to $95.4 million for the period through 2065. Total operating cash outflows related to discontinued operations, which include settlements, awards of asbestos-related damages and legal costs, net of taxes, were $5.5 million and $3.4 million for the six months ended June 30, 2021 and 2020, respectively.
We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future and whenever events or changes in circumstances indicate that additional provisions may be necessary. 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 events and changes in circumstances surrounding these potential liabilities in determining whether to perform additional actuarial evaluations and 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 June 30, 2021 and 2020, we have accrued $18.2 million and $17.8 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):
|
Basis of Presentation (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Basis of Presentation [Abstract] | |
Principles of Consolidation |
Standard Motor Products, Inc. and subsidiaries (referred to hereinafter in these notes to the consolidated financial statements as “we,” “us,” “our,” “SMP,” or the “Company”) is a leading automotive parts manufacturer and distributor for engine management and temperature control systems of motor vehicles in the automotive aftermarket industry with a complementary focus on the heavy duty, industrial equipment and original equipment service markets.
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, 2020. The unaudited consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 50% equity ownership, except in instances where the minority shareholder maintains substantive participating rights, in which case we follow the equity method of accounting. In instances where we have more than a 50% equity ownership and the minority shareholder does not maintain substantive participating rights, our consolidated financial statements include the accounts of the company on a consolidated basis with its net income and equity reported at amounts attributable to both our equity position and that of the noncontrolling interest. Investments in unconsolidated affiliates are accounted for on the equity method, as we do not have a controlling financial interest but have the ability to exercise significant influence. 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.
|
Reclassification |
Reclassification
Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2021 presentation.
|
Summary of Significant Accounting Policies (Policies) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Recently Issued Accounting Pronouncements |
Standards that were adopted
Standards that are not yet adopted as of June 30, 2021
The following table provides a brief description of recently issued accounting pronouncements that have not yet been adopted as of June 30, 2021, and that could have an impact on our financial statements:
|
Business Acquisitions and Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trumpet Holdings, Inc. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Purchase Price, Assets Acquired And Liabilities Assumed |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Particulate Matter Sensor Business of Stoneridge, Inc. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Purchase Price, Assets Acquired And Liabilities Assumed |
The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed through June 30, 2021, based on their fair values (in thousands):
|
Restructuring and Integration Expenses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Integration Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Integration Expense |
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, 2020 and June 30, 2021 and for the six months ended June 30, 2021, consisted of the following (in thousands):
|
Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) and net realizable value, consist of the following:
|
Acquired Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired Identifiable Intangible Assets |
Acquired identifiable intangible assets consist of the following:
|
Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative Disclosures Related to Operating Leases |
The following tables provides quantitative disclosures related to our operating leases and includes all operating leases acquired in the Trombetta acquisition from the date of acquisition (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum Lease Payments |
At June 30, 2021, we are obligated to make minimum lease payments through 2028, under operating leases, which are as follows (in thousands):
|
Credit Facilities and Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Facilities and Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Total Debt Outstanding |
Total debt outstanding is summarized as follows:
|
Stock-Based Compensation Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted and Performance-based Share Activity |
Our restricted and performance-based share activity was as follows for the six months ended June 30, 2021:
|
Earnings Per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliations of Earnings Available to Common Stockholders and Shares used in Calculating Basic and Dilutive Net Earnings per Common Share |
The following are reconciliations of the net earnings attributable to SMP and the shares used in calculating basic and dilutive net earnings per common share attributable to SMP (in thousands, except per share data):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Anti-dilutive Securities Excluded from Computation of Earnings per Share |
The shares listed below were not included in the computation of diluted net earnings per common share attributable to SMP because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands):
|
Industry Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industry Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and Operating Income by Operating Segments |
The following tables show our net sales, intersegment revenue and operating income for each reportable segment (in thousands):
|
Net Sales (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Net Sales |
The following tables provide disaggregation of net sales information for the three months and six months ended June 30, 2021 and 2020 (in thousands):
|
Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Product Warranties |
The following table provides the changes in our product warranties (in thousands):
|
Basis of Presentation (Details) |
Jun. 30, 2021 |
---|---|
Basis of Presentation [Abstract] | |
Equity ownership in entities included in consolidated financial statements, minimum | 50.00% |
Business Acquisitions and Investments, Acquisition of Capital Stock of Trumpet Holdings, Inc. (Details) - USD ($) $ in Thousands |
1 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
May 31, 2021 |
Mar. 31, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
|||
Assets acquired and liabilities assumed [Abstract] | ||||||
Goodwill | $ 126,893 | $ 77,837 | ||||
Trombetta [Member] | ||||||
Business Combination, Description [Abstract] | ||||||
Percentage of entity acquired | 100.00% | |||||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | ||||||
Purchase Price | $ 111,741 | |||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Receivables | 9,173 | |||||
Inventory | 12,460 | |||||
Other current assets | [1] | 5,193 | ||||
Property, plant, and equipment, net | 4,939 | |||||
Operating lease right-of-use assets | 3,847 | |||||
Intangible assets | 54,700 | |||||
Goodwill | 49,028 | |||||
Current liabilities | (4,820) | |||||
Noncurrent operating lease liabilities | (3,065) | |||||
Deferred income taxes | (8,210) | |||||
Subtotal | 123,245 | |||||
Fair value of acquired noncontrolling interest | (11,504) | |||||
Net assets acquired | 111,741 | |||||
Cash acquired | 4,600 | |||||
Revenues from acquisition date | $ 5,700 | |||||
Trombetta [Member] | Customer Relationships [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Intangible assets | 39,400 | |||||
Estimated useful life of intangible assets | 20 years | |||||
Trombetta [Member] | Developed Technology [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Intangible assets | 13,400 | |||||
Estimated useful life of intangible assets | 15 years | |||||
Trombetta [Member] | Trade Names [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Intangible assets | $ 1,900 | |||||
Estimated useful life of intangible assets | 10 years | |||||
Trombetta [Member] | Trombetta Asia, Ltd [Member] | ||||||
Business Combination, Description [Abstract] | ||||||
Percentage of entity acquired | 70.00% | |||||
Particulate Matter Sensor Business of Stoneridge, Inc. [Member] | ||||||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | ||||||
Purchase Price | $ 2,138 | |||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Inventory | 1,032 | |||||
Property, plant, and equipment, net | 351 | |||||
Intangible assets | 755 | |||||
Revenues from acquisition date | $ 3,800 | |||||
Particulate Matter Sensor Business of Stoneridge, Inc. [Member] | Customer Relationships [Member] | ||||||
Assets acquired and liabilities assumed [Abstract] | ||||||
Intangible assets | $ 800 | |||||
Estimated useful life of intangible assets | 10 years | |||||
Tallinn, Estonia Facility [Member] | Plan [Member] | ||||||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | ||||||
Purchase Price | $ 800 | |||||
|
Business Acquisitions and Investments, Acquisition of Particulate Matter Sensor Business of Stoneridge, Inc. (Details) - USD ($) $ in Thousands |
1 Months Ended | 6 Months Ended |
---|---|---|
Mar. 31, 2021 |
Jun. 30, 2021 |
|
Particulate Matter Sensor Business of Stoneridge, Inc. [Member] | ||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | ||
Purchase Price | $ 2,138 | |
Assets acquired and liabilities assumed [Abstract] | ||
Inventory | 1,032 | |
Machinery and equipment, net | 351 | |
Intangible assets | 755 | |
Net assets acquired | 2,138 | |
Business Combination, Description [Abstract] | ||
Revenues from acquisition date | $ 3,800 | |
Particulate Matter Sensor Business of Stoneridge, Inc. [Member] | Customer Relationships [Member] | ||
Assets acquired and liabilities assumed [Abstract] | ||
Intangible assets | $ 800 | |
Business Combination, Description [Abstract] | ||
Estimated useful life of intangible assets | 10 years | |
Tallinn, Estonia Facility [Member] | Plan [Member] | ||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | ||
Purchase Price | $ 800 |
Restructuring and Integration Expenses (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2021
USD ($)
| |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | $ 179 |
Cash payments | (72) |
Exit activity liability, end of period | 107 |
Plant Rationalization Program [Member] | |
Restructuring and integration activities [Roll Forward] | |
Cash payments | (72) |
Exit activity liability, end of period | 107 |
Workforce Reduction [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 179 |
Cash payments | (72) |
Exit activity liability, end of period | 107 |
Other Exit Costs [Member] | |
Restructuring and integration activities [Roll Forward] | |
Exit activity liability, beginning of period | 0 |
Cash payments | 0 |
Exit activity liability, end of period | $ 0 |
Sale of Receivables (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
Sale of Receivables [Abstract] | |||||
Sale of receivables to financial institutions | $ 203.1 | $ 147.7 | $ 394.4 | $ 297.9 | |
Receivables not yet sold | 5.0 | 5.0 | $ 50.0 | ||
Charge related to sale of receivables | $ 3.0 | $ 3.1 | $ 5.7 | $ 5.9 |
Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventories [Abstract] | ||
Finished goods | $ 261,627 | $ 225,523 |
Work in process | 12,219 | 10,711 |
Raw materials | 131,030 | 109,268 |
Subtotal | 404,876 | 345,502 |
Unreturned customer inventories | 22,070 | 19,632 |
Total inventories | $ 426,946 | $ 365,134 |
Acquired Intangible Assets, Identifiable Intangible Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
||
---|---|---|---|---|
Indefinite Lived Intangible Assets [Abstract] | ||||
Total acquired intangible assets | $ 179,116 | $ 123,636 | ||
Less accumulated amortization | [1] | (74,336) | (70,221) | |
Net acquired intangible assets | 104,780 | 53,415 | ||
Customer Relationships [Member] | ||||
Indefinite Lived Intangible Assets [Abstract] | ||||
Total acquired intangible assets | 151,876 | 111,701 | ||
Patents, Developed Technology and Intellectual Property [Member] | ||||
Indefinite Lived Intangible Assets [Abstract] | ||||
Total acquired intangible assets | 14,123 | 723 | ||
Trademarks and Trade Names [Member] | ||||
Indefinite Lived Intangible Assets [Abstract] | ||||
Total acquired intangible assets | 8,880 | 6,980 | ||
Acquired indefinite-lived intangible assets | 2,600 | |||
Non-compete Agreements [Member] | ||||
Indefinite Lived Intangible Assets [Abstract] | ||||
Total acquired intangible assets | 3,277 | 3,272 | ||
Supply Agreements [Member] | ||||
Indefinite Lived Intangible Assets [Abstract] | ||||
Total acquired intangible assets | 800 | 800 | ||
Leaseholds [Member] | ||||
Indefinite Lived Intangible Assets [Abstract] | ||||
Total acquired intangible assets | $ 160 | $ 160 | ||
|
Acquired Intangible Assets, Acquired Assets and Liabilities and Amortization Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
May 31, 2021 |
Mar. 31, 2021 |
|
Amortization of acquired intangible assets [Abstract] | ||||||
Amortization expense | $ 2,100 | $ 2,000 | $ 4,100 | $ 4,100 | ||
Estimated amortization expense, remainder of 2021 | 4,600 | 4,600 | ||||
Estimated amortization expense in year 2022 | 8,400 | 8,400 | ||||
Estimated amortization expense in year 2023 | 8,100 | 8,100 | ||||
Estimated amortization expense in year 2024 | 8,000 | 8,000 | ||||
Estimated amortization expense in years 2025 through 2041 | $ 73,100 | $ 73,100 | ||||
Particulate Matter Sensor Business of Stoneridge, Inc. [Member] | ||||||
Intangible assets acquired [Abstract] | ||||||
Intangible assets | $ 755 | |||||
Trombetta [Member] | ||||||
Intangible assets acquired [Abstract] | ||||||
Business acquisition, ownership percentage | 100.00% | |||||
Intangible assets | $ 54,700 | |||||
Customer Relationships [Member] | Particulate Matter Sensor Business of Stoneridge, Inc. [Member] | ||||||
Intangible assets acquired [Abstract] | ||||||
Intangible assets | $ 800 | |||||
Estimated useful life of intangible assets | 10 years | |||||
Customer Relationships [Member] | Trombetta [Member] | ||||||
Intangible assets acquired [Abstract] | ||||||
Intangible assets | 39,400 | |||||
Estimated useful life of intangible assets | 20 years | |||||
Developed Technology [Member] | Trombetta [Member] | ||||||
Intangible assets acquired [Abstract] | ||||||
Intangible assets | 13,400 | |||||
Estimated useful life of intangible assets | 15 years | |||||
Trade Names [Member] | Trombetta [Member] | ||||||
Intangible assets acquired [Abstract] | ||||||
Intangible assets | $ 1,900 | |||||
Estimated useful life of intangible assets | 10 years |
Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|||
Quantitative Lease Disclosures [Abstract] | |||||||
Renewal option period | 5 years | 5 years | |||||
Assets [Abstract] | |||||||
Operating lease right-of-use assets | $ 39,095 | $ 39,095 | $ 29,958 | ||||
Liabilities [Abstract] | |||||||
Sundry payables and accrued expenses | 9,851 | 9,851 | 8,719 | ||||
Noncurrent operating lease liabilities | 30,495 | 30,495 | 22,450 | ||||
Total operating lease liabilities | $ 40,346 | $ 40,346 | $ 31,169 | ||||
Operating Leases [Abstract] | |||||||
Weighted average remaining lease term | 5 years 2 months 12 days | 5 years 2 months 12 days | 5 years | ||||
Weighted average discount rate | 3.20% | 3.20% | 3.60% | ||||
Lease Expense [Abstract] | |||||||
Operating lease expense | [1] | $ 2,441 | $ 2,303 | $ 4,777 | $ 4,616 | ||
Excluded expenses of non lease | 300 | $ 500 | 900 | 900 | |||
Cash Paid for the amounts included in the measurement of lease liabilities [Abstract] | |||||||
Operating cash flows from operating leases | 4,733 | 4,544 | |||||
Right-of-use assets obtained in exchange for new lease obligations [Abstract] | |||||||
Operating leases | 14,077 | $ 380 | |||||
Minimum Lease Payments [Abstract] | |||||||
2021 | 5,110 | 5,110 | |||||
2022 | 9,681 | 9,681 | |||||
2023 | 8,700 | 8,700 | |||||
2024 | 6,370 | 6,370 | |||||
2025 | 5,248 | 5,248 | |||||
Thereafter | 8,835 | 8,835 | |||||
Total lease payments | 43,944 | 43,944 | |||||
Less: Interest | (3,598) | (3,598) | |||||
Total operating lease liabilities | $ 40,346 | $ 40,346 | $ 31,169 | ||||
Maximum [Member] | |||||||
Quantitative Lease Disclosures [Abstract] | |||||||
Remaining operating lease terms | 10 years | 10 years | |||||
|
Credit Facilities and Long-Term Debt, Total Debt Outstanding (Details) $ in Thousands, zł in Millions |
Jun. 30, 2021
USD ($)
|
Jun. 30, 2021
PLN (zł)
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2020
PLN (zł)
|
||
---|---|---|---|---|---|---|
Credit Facilities and Long-Term Debt [Abstract] | ||||||
Revolving credit facilities | $ 135,000 | $ 10,000 | ||||
Other | [1] | 2,477 | 232 | |||
Total debt | 137,477 | 10,232 | ||||
Current maturities of debt | 137,397 | 10,135 | ||||
Long-term debt | 80 | 97 | ||||
HSBC Bank Polska S.A. [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Overdraft facility | $ 2,400 | zł 9.0 | $ 100 | zł 0.4 | ||
|
Credit Facilities and Long-Term Debt, Revolving Credit Facility (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
Line of Credit Facility [Abstract] | |||
Outstanding borrowings under credit facility | $ 135,000 | $ 10,000 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Abstract] | |||
Coverage ratio | 1 | ||
Revolving Credit Facility [Member] | Pay Cash Dividend [Member] | |||
Line of Credit Facility [Abstract] | |||
Agreement permissions | $ 20,000 | ||
Revolving Credit Facility [Member] | Stock Repurchase [Member] | |||
Line of Credit Facility [Abstract] | |||
Agreement permissions | 20,000 | ||
Revolving Credit Facility [Member] | Stock Repurchase [Member] | Minimum [Member] | |||
Line of Credit Facility [Abstract] | |||
Borrowing base | 25,000 | ||
Revolving Credit Facility [Member] | Cash Dividend And Stock Repurchases [Member] | Minimum [Member] | |||
Line of Credit Facility [Abstract] | |||
Agreement permissions | 20,000 | ||
Revolving Credit Facility [Member] | Fixed Assets Included in Borrowing Base [Member] | |||
Line of Credit Facility [Abstract] | |||
Borrowing base | $ 31,250 | ||
Borrowing base percentage | 12.50% | ||
Revolving Credit Facility [Member] | Fixed Assets Not Included in Borrowing Base [Member] | Maximum [Member] | |||
Line of Credit Facility [Abstract] | |||
Borrowing base | $ 25,000 | ||
Borrowing base percentage | 10.00% | ||
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 250,000 | ||
Line of credit facility, accordian feature | $ 50,000 | ||
Maturity date | Dec. 31, 2023 | ||
Additional available borrowing capacity | $ 112,300 | ||
Outstanding borrowings under credit facility | 135,000 | 10,000 | |
Outstanding letters of credit | $ 2,600 | $ 2,800 | |
Weighted average interest rate | 1.30% | 1.40% | |
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | Canada [Member] | |||
Line of Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 10,000 | ||
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | |||
Line of Credit Facility [Abstract] | |||
Margin on variable rate | 1.25% | ||
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | |||
Line of Credit Facility [Abstract] | |||
Margin on variable rate | 1.75% | ||
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | Alternate Base Rate [Member] | |||
Line of Credit Facility [Abstract] | |||
Average daily loan balance outstanding | $ 1,000 | $ 1,700 | $ 1,500 |
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | Alternate Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Abstract] | |||
Margin on variable rate | 0.25% | ||
JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | Alternate Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Abstract] | |||
Margin on variable rate | 0.75% |
Credit Facilities and Long-Term Debt, Polish Overdraft Facility (Details) - HSBC Bank Polska S.A. [Member] zł in Millions, $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2021
PLN (zł)
|
Jun. 30, 2021
USD ($)
|
Dec. 31, 2020
PLN (zł)
|
Dec. 31, 2020
USD ($)
|
|
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | zł 30.0 | $ 7.9 | ||
Overdraft facility expiration date | Dec. 31, 2021 | |||
Overdraft facility | zł 9.0 | $ 2.4 | zł 0.4 | $ 0.1 |
1M WIBOR [Member] | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable rate | 1.50% |
Credit Facilities and Long-Term Debt, Deferred Financing Costs (Details) - USD ($) $ in Millions |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Deferred Financing Costs [Abstract] | ||
Deferred financing costs | $ 0.5 | $ 0.7 |
Amortization of financing costs remainder of 2021 | 0.1 | |
Amortization of financing costs in 2022 | 0.2 | |
Amortization of financing costs in 2023 | $ 0.2 |
Stock-Based Compensation Plans (Details) $ / shares in Units, $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2021
USD ($)
Type
$ / shares
shares
|
Jun. 30, 2020
USD ($)
|
May 31, 2021
shares
|
|
Restricted and Performance Stock Grants [Abstract] | |||
Number of types of restricted stock | Type | 2 | ||
Additional Disclosures [Abstract] | |||
Compensation expense, gross | $ | $ 4,381 | $ 3,306 | |
Restricted Shares [Member] | Minimum [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Expiration of vesting period | 3 years | ||
Restricted Shares [Member] | Employees [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Estimated forfeitures | 5.00% | ||
Restricted Shares [Member] | Executives [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Estimated forfeitures | 0.00% | ||
Restricted Shares [Member] | Directors [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Estimated forfeitures | 0.00% | ||
Restricted Shares [Member] | Age 60 [Member] | Executives [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Vesting percentage | 25.00% | ||
Vesting period before reaching age limit | 2 months | ||
Restricted Shares [Member] | Age 63 [Member] | Executives [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Vesting percentage | 25.00% | ||
Vesting period before reaching age limit | 2 months | ||
Restricted Shares [Member] | Age 65 [Member] | Executives [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Vesting percentage | 100.00% | ||
Vesting period before reaching age limit | 2 months | ||
Performance-based Shares [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Measuring period for performance-based shares | 3 years | ||
Performance-based Shares [Member] | Minimum [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Expiration of vesting period | 3 years | ||
Restricted and Performance-Based Shares [Member] | |||
Restricted and performance-based stock, shares [Roll Forward] | |||
Beginning of period (in shares) | 839,686 | ||
Granted (in shares) | 7,000 | ||
Vested (in shares) | (56,845) | ||
Forfeited (in shares) | (10,625) | ||
End of period (in shares) | 779,216 | ||
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward] | |||
Beginning of period (in dollars per share) | $ / shares | $ 34.77 | ||
Granted (in dollars per share) | $ / shares | 39.03 | ||
Vested (in dollars per share) | $ / shares | 31.90 | ||
Forfeited (in dollars per share) | $ / shares | 38.76 | ||
End of period (in dollars per share) | $ / shares | $ 34.96 | ||
Additional Disclosures [Abstract] | |||
Compensation expense, gross | $ | $ 4,000 | 3,000 | |
Compensation expense, net of tax | $ | 3,000 | $ 2,200 | |
Unamortized compensation expense | $ | $ 13,100 | ||
Restricted and Performance-Based Shares [Member] | Employees [Member] | |||
Additional Disclosures [Abstract] | |||
Weighted average period of recognition for unrecognized compensation expense | 4 years | ||
Restricted and Performance-Based Shares [Member] | Directors [Member] | |||
Additional Disclosures [Abstract] | |||
Weighted average period of recognition for unrecognized compensation expense | 9 months 18 days | ||
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Minimum [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Post vesting holding period for restricted and performance shares issued | 1 year | ||
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Maximum [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Post vesting holding period for restricted and performance shares issued | 2 years | ||
2016 Omnibus Incentive Plan [Member] | Restricted and Performance-Based Shares [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Shares authorized for issuance (in shares) | 950,000 | ||
2016 Omnibus Incentive Plan [Member] | Restricted and Performance-Based Shares [Member] | Minimum [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Shares authorized for issuance (in shares) | 1,100,000 | ||
2016 Omnibus Incentive Plan [Member] | Restricted and Performance-Based Shares [Member] | Maximum [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Shares authorized for issuance (in shares) | 2,050,000 | ||
2016 Omnibus Incentive Plan [Member] | Restricted and Performance-Based Shares [Member] | Non-employee Directors [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Shares authorized for issuance (in shares) | 100,000 | ||
2016 Omnibus Incentive Plan [Member] | Restricted and Performance-Based Shares [Member] | Non-employee Directors [Member] | Minimum [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Shares authorized for issuance (in shares) | 250,000 | ||
2016 Omnibus Incentive Plan [Member] | Restricted and Performance-Based Shares [Member] | Non-employee Directors [Member] | Maximum [Member] | |||
Restricted and Performance Stock Grants [Abstract] | |||
Shares authorized for issuance (in shares) | 350,000 |
Employee Benefits (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Mar. 31, 2021
USD ($)
|
Jun. 30, 2021
Employee
shares
|
|
Benefit Plan [Abstract] | ||
Number of former union employees covered by the plan | Employee | 16 | |
Supplemental Executive Retirement Plan [Member] | ||
Defined Contribution Pension and Other Postretirement Plans [Abstract] | ||
Employer discretionary contribution amount | $ | $ 0.5 | |
Employee Stock Ownership Plan and Trust (ESOP) [Member] | ||
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract] | ||
Additional shares contributed to ESOP (in shares) | 61,800 | |
Shares released from trust (in shares) | 61,800 | |
Total remaining balance of shares in the ESOP (in shares) | 200 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Net Earnings Attributable to SMP | ||||
Earnings from continuing operations | $ 27,995 | $ 11,842 | $ 50,159 | $ 21,463 |
Loss from discontinued operations | (853) | (875) | (2,017) | (1,869) |
Net earnings attributable to SMP | $ 27,142 | $ 10,967 | $ 48,142 | $ 19,594 |
Basic Net Earnings Per Common Share Attributable to SMP | ||||
Earnings from continuing operations per common share (in dollars per share) | $ 1.26 | $ 0.53 | $ 2.25 | $ 0.96 |
Loss from discontinued operations per common share (in dollars per share) | (0.04) | (0.04) | (0.09) | (0.08) |
Net earnings per common share attributable to SMP | $ 1.22 | $ 0.49 | $ 2.16 | $ 0.88 |
Weighted average common shares outstanding (in shares) | 22,198,545 | 22,330,476 | 22,257,922 | 22,384,281 |
Diluted Net Earnings Per Common Share Attributable to SMP | ||||
Earnings from continuing operations per common share (in dollars per share) | $ 1.23 | $ 0.52 | $ 2.21 | $ 0.94 |
Loss from discontinued operations per common share (in dollars per share) | (0.03) | (0.04) | (0.09) | (0.08) |
Net earnings per common share attributable to SMP | $ 1.20 | $ 0.48 | $ 2.12 | $ 0.86 |
Weighted average common shares outstanding (in shares) | 22,198,545 | 22,330,476 | 22,257,922 | 22,384,281 |
Plus incremental shares from assumed conversions [Abstract] | ||||
Dilutive effect of restricted stock and performance-based stock (in shares) | 487,000 | 389,000 | 483,000 | 410,000 |
Weighted average common shares outstanding - Diluted (in shares) | 22,686,384 | 22,718,680 | 22,741,171 | 22,793,606 |
Restricted and Performance-Based Shares [Member] | ||||
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 239,000 | 261,000 | 258,000 | 257,000 |
Industry Segments (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2021
USD ($)
Segment
|
Jun. 30, 2020
USD ($)
|
|||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Number of reportable operating segments | Segment | 2 | |||||
Net sales | [1] | $ 342,076 | $ 247,939 | $ 618,629 | $ 502,241 | |
Operating Income | 36,925 | 16,021 | 66,249 | 30,344 | ||
Intersegment Revenues [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Net sales | [1] | 0 | 0 | 0 | 0 | |
Engine Management [Member] | Reportable Segments [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Net sales | [1] | 233,216 | 173,153 | 445,234 | 374,271 | |
Operating Income | 30,384 | 16,722 | 61,498 | 38,155 | ||
Engine Management [Member] | Intersegment Revenues [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Net sales | [1] | 5,185 | 2,666 | 10,544 | 6,680 | |
Temperature Control [Member] | Reportable Segments [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Net sales | [1] | 106,471 | 72,392 | 168,944 | 123,834 | |
Operating Income | 13,229 | 3,967 | 16,821 | 3,619 | ||
Temperature Control [Member] | Intersegment Revenues [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Net sales | [1] | 3,125 | 1,387 | 4,972 | 2,778 | |
All Other [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Net sales | [1] | 2,389 | 2,394 | 4,451 | 4,136 | |
Operating Income | (6,688) | (4,668) | (12,070) | (11,430) | ||
All Other [Member] | Intersegment Revenues [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Net sales | [1] | $ (8,310) | $ (4,053) | $ (15,516) | $ (9,458) | |
|
Net Sales (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | $ 342,076 | $ 247,939 | $ 618,629 | $ 502,241 | |||
Aftermarket [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 275,311 | 210,307 | 499,901 | 417,026 | |||
OE/OES [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 59,397 | 34,047 | 104,612 | 75,946 | |||
Export [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 7,368 | 3,585 | 14,116 | 9,269 | |||
Ignition, Emission Control, Fuel and Safety Related System Products [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 194,318 | 144,628 | 369,653 | 310,638 | |||
Wire and Cable [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 40,588 | 30,380 | 78,947 | 66,950 | |||
Compressors [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 69,963 | 45,371 | 103,355 | 70,577 | |||
Other Climate Control Parts [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 37,207 | 27,560 | 66,674 | 54,076 | |||
United States [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 303,515 | 223,661 | 543,352 | 445,916 | |||
Canada [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 14,454 | 9,176 | 28,416 | 20,648 | |||
Asia [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 9,515 | 8,260 | 19,226 | 17,814 | |||
Mexico [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 6,575 | 3,450 | 12,787 | 9,623 | |||
Europe [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 5,413 | 2,601 | 10,618 | 6,072 | |||
Other Foreign [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 2,604 | 791 | 4,230 | 2,168 | |||
Engine Management [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 233,216 | 173,153 | 445,234 | 374,271 | |||
Engine Management [Member] | Aftermarket [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 175,159 | 141,476 | 342,002 | 302,059 | |||
Engine Management [Member] | OE/OES [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 51,293 | 28,351 | 90,128 | 63,471 | |||
Engine Management [Member] | Export [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 6,764 | 3,326 | 13,104 | 8,741 | |||
Engine Management [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 192,486 | 142,787 | 366,152 | 307,313 | |||
Engine Management [Member] | Wire and Cable [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 40,730 | 30,366 | 79,082 | 66,958 | |||
Engine Management [Member] | Compressors [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | 0 | |||
Engine Management [Member] | Other Climate Control Parts [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | 0 | |||
Engine Management [Member] | United States [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 202,274 | 153,891 | 383,375 | 328,270 | |||
Engine Management [Member] | Canada [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 7,433 | 4,525 | 16,007 | 11,114 | |||
Engine Management [Member] | Asia [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 9,447 | 8,216 | 19,082 | 17,675 | |||
Engine Management [Member] | Mexico [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 6,460 | 3,409 | 12,607 | 9,523 | |||
Engine Management [Member] | Europe [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 5,252 | 2,526 | 10,401 | 5,874 | |||
Engine Management [Member] | Other Foreign [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 2,350 | 586 | 3,762 | 1,815 | |||
Temperature Control [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 106,471 | 72,392 | 168,944 | 123,834 | |||
Temperature Control [Member] | Aftermarket [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 97,763 | 66,437 | 153,448 | 110,831 | |||
Temperature Control [Member] | OE/OES [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 8,104 | 5,696 | 14,484 | 12,475 | |||
Temperature Control [Member] | Export [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 604 | 259 | 1,012 | 528 | |||
Temperature Control [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | 0 | |||
Temperature Control [Member] | Wire and Cable [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 0 | 0 | 0 | 0 | |||
Temperature Control [Member] | Compressors [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 69,577 | 44,878 | 102,951 | 70,226 | |||
Temperature Control [Member] | Other Climate Control Parts [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 36,894 | 27,514 | 65,993 | 53,608 | |||
Temperature Control [Member] | United States [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 101,241 | 69,770 | 159,977 | 117,646 | |||
Temperature Control [Member] | Canada [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 4,632 | 2,257 | 7,958 | 5,398 | |||
Temperature Control [Member] | Asia [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 68 | 44 | 144 | 139 | |||
Temperature Control [Member] | Mexico [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 115 | 41 | 180 | 100 | |||
Temperature Control [Member] | Europe [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 161 | 75 | 217 | 198 | |||
Temperature Control [Member] | Other Foreign [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 254 | 205 | 468 | 353 | |||
Other [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 2,389 | 2,394 | 4,451 | 4,136 | |||
Other [Member] | Aftermarket [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 2,389 | 2,394 | 4,451 | 4,136 | |||
Other [Member] | OE/OES [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 | |||
Other [Member] | Export [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 | |||
Other [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 1,832 | 1,841 | 3,501 | 3,325 | |||
Other [Member] | Wire and Cable [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | (142) | 14 | (135) | (8) | |||
Other [Member] | Compressors [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 386 | 493 | 404 | 351 | |||
Other [Member] | Other Climate Control Parts [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 313 | 46 | 681 | 468 | |||
Other [Member] | United States [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 | |||
Other [Member] | Canada [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 2,389 | 2,394 | 4,451 | 4,136 | |||
Other [Member] | Asia [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 | |||
Other [Member] | Mexico [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 | |||
Other [Member] | Europe [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 0 | 0 | 0 | 0 | |||
Other [Member] | Other Foreign [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | $ 0 | $ 0 | $ 0 | $ 0 | |||
|
Commitments and Contingencies, Asbestos (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 238 Months Ended | ||||
---|---|---|---|---|---|---|---|---|
Nov. 30, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
Dec. 31, 2020
USD ($)
|
Jun. 30, 2021
USD ($)
Claim
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2021
USD ($)
Claim
|
Aug. 31, 2020
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Asbestos [Abstract] | ||||||||
Accrued asbestos liabilities | $ 55,226 | $ 54,035 | $ 54,035 | |||||
Asbestos [Member] | ||||||||
Asbestos [Abstract] | ||||||||
Pending claims, approximate number | Claim | 1,610 | 1,610 | ||||||
Payment for settled claims and awards related damages, including interest | $ 53,100 | |||||||
Accrued asbestos liabilities | $ 63,000 | $ 58,100 | ||||||
Incremental pre-tax provision | $ 17,000 | |||||||
Asbestos [Member] | Minimum [Member] | ||||||||
Asbestos [Abstract] | ||||||||
Range of possible loss | 63,000 | $ 58,100 | ||||||
Asbestos [Member] | Maximum [Member] | ||||||||
Asbestos [Abstract] | ||||||||
Range of possible loss | 99,100 | $ 99,300 | ||||||
Asbestos [Member] | California Case [Member] | ||||||||
Asbestos [Abstract] | ||||||||
Range of possible loss | $ 7,600 | |||||||
Compensatory damages judgment | $ 7,600 | |||||||
Compensatory damages judgment interest percentage | 10.00% | |||||||
Asbestos [Member] | Discontinued Operations [Member] | ||||||||
Asbestos [Abstract] | ||||||||
Incremental pre-tax provision | $ 8,700 | |||||||
Total operating cash outflows related to discontinued operations | $ 5,500 | $ 3,400 | ||||||
Asbestos [Member] | Discontinued Operations [Member] | Minimum [Member] | ||||||||
Asbestos [Abstract] | ||||||||
Range of possible loss | $ 48,700 | |||||||
Asbestos [Member] | Discontinued Operations [Member] | Maximum [Member] | ||||||||
Asbestos [Abstract] | ||||||||
Range of possible loss | $ 95,400 |
Commitments and Contingencies, Warranties (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Changes in product warranties [Roll forward] | ||||
Balance, beginning of period | $ 16,948 | $ 17,232 | $ 17,663 | $ 17,175 |
Liabilities accrued for current year sales | 25,162 | 22,795 | 45,339 | 44,862 |
Settlements of warranty claims | (23,897) | (22,267) | (44,789) | (44,277) |
Balance, end of period | $ 18,213 | $ 17,760 | $ 18,213 | $ 17,760 |
_$5?5/);G"%^=Z-783[4N8Y0EBUV>>Z!NQ5
M,"AA&UV?Z(J<<;43_Y^[VU_N>8Z5-F5I7_68;SY%9IIENI;Q78S@6[8L_5EK
MI^*MZ,'RD_1%):B74JYAA.<+1C\;G)_QRN+8%9J4Z?Y [O2XIW MU5I;FQE7
M'K)9\C,/M^&S]>/R$_K&MKM%YM@=A2W)9QM:BMRC,ZDQ@ZYU%*N$U=130@L7
MMD26ND\C=1+OB3WS=107'**=H@7A,T] IE:;#B+'4#QD3V2C5 @$&CX6:6)+
MQ=\VN41W^>/S\)%]@>,Q-4R"\_C$U8_3T^D?8XL_)7><;H"'=YU]2OK_.?NY
M+SZSP2>W6ODU?U@,@NLO?7WKW_;?+F_2)[O=]O3A$[ !R((P:H6C\^DW+T;"
MIX^)Z2&ZAC_@+5V,KN:?E<+=W],&K*\ &ULI5513]LP$'[G
M5YRR:0()D30ME)6V$@6F,0D-%38>ICTXR36Q<.S,=FC[[W=VTJS5H"^\)#[[
MN^^^.U\NXZ72SZ9 M+ JA323H+"V&H6A20LLF3E1%4HZ62A=,DNFSD-3:629
M=RI%&$?165@R+H/IV._=Z^E8U59PB?<:3%V63*]G*-1R$O2"S<:6%P?EK+*=V2_[6^L?@UZ+04JJ3**5,)2Y.SWL7P
M[>41RP>!WQ0MW,:S8$_&QMSQCQ^+LU[*@$A3[EF#Q']SNB*M61%@?&YU]CJ3
M?'#S>:7]7? =OHREHRNC?U>%GYWU7O=$01/9:/_1+-Y3Z\\QZ\N-=N&O6$39
M(PCGC?.F; \#0:FJ^+^\;^.P<>!U^LR!K#V0!=S14$#YO?3R_-2:A; L#6W\
M$%P-IP%.59R46V^QJW#.GU]9*I07[V2NM/**G)!5(7XVU?2;3V1+\3V-_>G
MPQ++#_)6ZV74FCVC]5OQP51^YL0/54'%]OD!$'8PLQ7,RVRGPI^:*A&CM"^R
M-!ONT#?JW!X%?:/_X+;X\V+LO$7=_+7#XE%G\2A8//J? [U;ZR_&DWB3B*_R
MYY/Q4J-D\8CV=!XBJIH*Y=J65%^H$-*)B='H5?=V#U&G+NK0D5,Y)BM&P["2
M[AW\6 D_,XV#)G>X]Y'F1L]991[A3-9P]L5P=-Q/TY2?4G[8N_8S*#L8'HJL
M?W1R(K)1MKO&FNI\JA_W]BHUTPVI4=O6FD8VPO>>_8^2+Q.
MQ9N3%PPPF A+5;EN"A@8&XM,PRDG&A2S1>BLN#%:N9DP<[*%E9/.TR7C^4,;
M/)1*:Z:= UG7UMPK8":]A*EVXS!DZ*MEG4C$.K[;Z5X*Y*'+3I8.7_?%@H0$
M=Z+[ N#VP,74$I4GD.KL
/NWCV_%B=#7FV\':
M1=PUTF.-RQU[.8#]RJ%*>2$.QNOBZA]02P,$% @ 1F(%4\QDF?!H!
MM L !D !X;"]W;W)K
8W2<"5!XWKF+^*+RXGS[QS^Y+@U!]_@5K)2ZKL;7)4S/W*"4&!A
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M. [&6>SM&-F>T164.&!D/>.%=X,%\ONNNBC\/(C'J>