QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Accelerated Filer ☐
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Non-Accelerated Filer ☐
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Smaller reporting company
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Emerging growth company
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Page No.
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Item 1. |
Consolidated Financial Statements:
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3 | ||
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4 | ||
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5 | ||
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6 |
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7 | ||
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9
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Item 2. |
31
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Item 3. |
45
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Item 4. |
46
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Item 1. |
47
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Item 2. |
47
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Item 6. |
48
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49
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ITEM 1. |
CONSOLIDATED FINANCIAL STATEMENTS
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
(In thousands, except share and per share data)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Net sales
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$
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$
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$
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$
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|
||||||||
Cost of sales
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||||||||||||
Gross profit
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||||||||||||
Selling, general and administrative expenses
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||||||||||||
Restructuring and integration expenses
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||||||||||||
Other income, net
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||||||||||||||||
Operating income
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||||||||||||
Other non-operating income, net
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||||||||||||
Interest expense
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||||||||||||
Earnings from continuing operations before taxes
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||||||||||||
Provision for income taxes
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||||||||||||
Earnings from continuing operations
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||||||||||||
Loss from discontinued operations, net of income taxes
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(
|
)
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(
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)
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(
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)
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(
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)
|
||||||||
Net earnings
|
|
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|
|
|
|||||||||||
Net earnings attributable to noncontrolling interest
|
|
|
|
|
||||||||||||
Net earnings attributable to SMP (a)
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$
|
|
$
|
|
$
|
|
$
|
|
||||||||
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
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
(In thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
||||||||||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Foreign currency translation adjustments
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Derivative instruments
|
||||||||||||||||
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)
|
September 30,
2022
|
December 31,
2021
|
||||||
|
(Unaudited)
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Accounts receivable, less allowances for discounts and expected credit losses of $
|
|
|
||||||
Inventories
|
|
|
||||||
Unreturned customer inventories
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|
|
||||||
Prepaid expenses and other current assets
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|
|
||||||
Total current assets
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|
|
||||||
|
||||||||
Property, plant and equipment, net of accumulated depreciation of $
|
|
|
||||||
Operating lease right-of-use assets
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|
|
||||||
Goodwill
|
|
|
||||||
Other intangibles, net
|
|
|
||||||
Deferred income taxes
|
|
|
||||||
Investments in unconsolidated affiliates
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|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
|
||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current portion of revolving credit facility
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$
|
|
$
|
|
||||
Current portion of term loan and other debt
|
|
|
||||||
Accounts payable
|
|
|
||||||
Sundry payables and accrued expenses
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|
||||||
Accrued customer returns
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|
||||||
Accrued core liability
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|
||||||
Accrued rebates
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|
||||||
Payroll and commissions
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|
||||||
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)
|
Nine Months Ended
September 30,
|
|||||||
|
2022
|
2021
|
||||||
|
(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 (decrease) to allowance for expected credit losses
|
(
|
)
|
|
|||||
Increase (decrease) to inventory reserves
|
|
(
|
)
|
|||||
Equity income from joint ventures
|
(
|
)
|
(
|
)
|
||||
Employee stock ownership plan allocation
|
|
|
||||||
Stock-based compensation
|
|
|
||||||
Decrease in deferred income taxes
|
|
|
||||||
Loss on discontinued operations, net of tax
|
|
|
||||||
Change in assets and liabilities:
|
||||||||
(Increase) in accounts receivable
|
(
|
)
|
(
|
)
|
||||
(Increase) in inventories
|
(
|
)
|
(
|
)
|
||||
(Increase) decrease in prepaid expenses and other current assets
|
(
|
)
|
|
|||||
Increase (decrease) in accounts payable
|
(
|
)
|
|
|||||
Increase 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:
|
||||||||
Borrowings under the term loan |
||||||||
Repayments of the term loan
|
( |
) | ||||||
Net borrowings under revolving credit facilities
|
|
|
||||||
Net borrowings (repayments) of other debt and capital lease obligations
|
(
|
)
|
|
|||||
Purchase of treasury stock
|
(
|
)
|
(
|
)
|
||||
Payments of debt issuance costs
|
( |
) | ||||||
Increase (decrease) in overdraft balances
|
(
|
)
|
|
|||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
|
|
|
||||||
Effect of exchange rate changes on cash
|
(
|
)
|
(
|
)
|
||||
Net increase (decrease) 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 June 30, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Net earnings
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Cash dividends paid
|
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Purchase of treasury stock
|
|
|
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Stock-based compensation
|
|
(
|
)
|
|
|
|
|
|
|
|||||||||||||||||||||||
Balance at September 30, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
(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 June 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Net earnings
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Cash dividends paid | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Purchase of treasury stock | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance at September 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, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Net earnings
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Cash dividends paid
|
|
|
(
|
)
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
Purchase of treasury stock
|
|
|
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Stock-based compensation
|
|
(
|
)
|
|
|
|
|
|
|
|||||||||||||||||||||||
Employee Stock Ownership Plan
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance at September 30, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
(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 September 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
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 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
|
(
|
)
|
||||||
Net assets acquired
|
$
|
|
(1) |
|
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, 2021
|
$
|
|
$
|
|
$
|
|
||||||
Restructuring and integration costs: |
||||||||||||
Amounts provided for during 2022
|
||||||||||||
Cash payments
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Reclassification
|
( |
) | ( |
) | ||||||||
Exit activity liability at September 30, 2022
|
$
|
|
$
|
|
$
|
|
|
September 30,
2022
|
December 31,
2021
|
||||||
|
(In thousands)
|
|||||||
Finished goods
|
$
|
|
$
|
|
||||
Work in process
|
|
|
||||||
Raw materials
|
|
|
||||||
Subtotal
|
|
|
||||||
Unreturned customer inventories
|
|
|
||||||
Total inventories
|
$
|
|
$
|
|
|
September 30,
2022
|
December 31,
2021
|
||||||
|
(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
|
September 30,
2022
|
December 31,
2021
|
||||||
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
|
|
%
|
|
%
|
Expense and Cash Flow Information |
Three Months Ended
September 30,
|
|||||||
|
2022
|
2021
|
||||||
Lease Expense
|
||||||||
Operating lease expense (a)
|
$
|
|
$
|
|
Nine Months Ended
September 30,
|
||||||||
2022
|
2021
|
|||||||
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 (b)
|
$
|
|
$
|
|
(a) |
|
|
(b)
|
|
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
Thereafter
|
|
|||
Total lease payments
|
$
|
|
||
Less: Interest
|
(
|
)
|
||
Present value of lease liabilities
|
$
|
|
|
September 30,
2022
|
December 31,
2021
|
||||||
|
(In thousands)
|
|||||||
Credit facility – term loan due 2027 |
$ |
$ |
||||||
Credit facility – revolver due 2027 |
||||||||
Senior secured facility – revolver due 2023
|
|
|
|
|
||||
Other (1)
|
|
|
||||||
Total debt
|
$
|
|
$
|
|
||||
|
||||||||
Current maturities of debt
|
$
|
|
$
|
|
||||
Long-term debt
|
|
|
||||||
Total debt
|
$
|
|
$
|
|
(1) |
|
Revolving
Credit Facility
|
Term Loan
Facility
|
Polish
Overdraft
Facility and
Other Debt
|
Total
|
|||||||||||||
Remainder of 2022
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
2023
|
|
|
|
|
||||||||||||
2024
|
|
|
|
|
||||||||||||
2025
|
|
|
|
|
||||||||||||
2026
|
|
|
|
|
||||||||||||
2027
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Less: current maturities
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Long-term debt
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
||||
Remainder of 2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
Total amortization
|
$
|
|
Three Months Ended September 30, 2022
|
||||||||||||||||
Foreign
Currency
Translation
|
Unrecognized
Postretirement
Benefit Costs
(Credit)
|
Unrealized
derivative
gains
(losses)
|
Total
|
|||||||||||||
Balance at June 30, 2022 attributable to SMP
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
||||||
Other comprehensive income before reclassifications
|
(
|
)
|
|
|
(1) |
(
|
)
|
|||||||||
Amounts reclassified from accumulated other comprehensive income
|
|
(
|
)
|
|
|
|||||||||||
Other comprehensive income, net
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Balance at September 30, 2022 attributable to SMP
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
Nine Months Ended September 30, 2022
|
||||||||||||||||
Foreign
Currency
Translation
|
Unrecognized
Postretirement
Benefit Costs
(Credit)
|
Unrealized
derivative
gains
(losses)
|
Total
|
|||||||||||||
Balance at December 31, 2021 attributable to SMP
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
||||||
Other comprehensive income before reclassifications
|
(
|
)
|
|
|
(1) |
(
|
)
|
|||||||||
Amounts reclassified from accumulated other comprehensive income
|
|
(
|
)
|
|
|
|||||||||||
Other comprehensive income, net
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Balance at September 30, 2022 attributable to SMP
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
(1)
|
Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $
|
|
Three Months Ended
|
Nine Months Ended
|
||||||
Details About Accumulated Other Comprehensive Income Components
|
September 30,
2022
|
September 30,
2022
|
||||||
Derivative cash flow hedge:
|
||||||||
Unrecognized gain (loss) (1)
|
$
|
|
$
|
|
||||
Postretirement Benefit Plans:
|
||||||||
Unrecognized gain (loss) (2)
|
(
|
)
|
(
|
)
|
||||
Total before income tax
|
|
|
||||||
Income tax expense
|
|
|
||||||
Total reclassifications attributable to SMP
|
$
|
|
$
|
|
(1)
|
|
(2)
|
|
Shares
|
Weighted Average
Grant Date Fair
Value Per Share
|
|||||||
Balance at December 31, 2021
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Performance Shares Target Adjustment
|
||||||||
Forfeited
|
(
|
)
|
|
|||||
Balance at September 30, 2022
|
|
$
|
|
September 30, 2022
|
December 31, 2021
|
||||||||||||||||
Fair Value
Hierarchy
|
Fair Value | Carrying Amount | Fair Value | Carrying Amount | |||||||||||||
Cash and cash equivalents
|
LEVEL 1
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Deferred compensation
|
LEVEL 1
|
|
|
|
|
||||||||||||
Short term borrowings
|
LEVEL 1
|
|
|
|
|
||||||||||||
Long-term debt
|
LEVEL 1
|
|
|
|
|
||||||||||||
Cash flow interest rate swap
|
LEVEL 2
|
|
|
|
|
Three Months Ended
September 30,
|
Nine Months
Ended
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
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
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Restricted and performance-based shares
|
|
|
|
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2022
|
2021
|
2022 | 2021 | ||||||||||||
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 September 30, 2022 (a)
|
Engine
Management
|
Temperature
Control
|
Other (b)
|
Total
|
||||||||||||
Geographic Area:
|
||||||||||||||||
United States
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Canada
|
|
|
|
|
||||||||||||
Europe
|
|
|
|
|
||||||||||||
Mexico
|
|
|
|
|
||||||||||||
Asia
|
|
|
|
|
||||||||||||
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 September 30, 2021 (a)
|
Engine
Management
|
Temperature
Control
|
Other (b)
|
Total
|
||||||||||||
Geographic Area:
|
||||||||||||||||
United States
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Canada
|
|
|
|
|
||||||||||||
Europe
|
|
|
|
|
||||||||||||
Mexico
|
|
|
|
|
||||||||||||
Asia
|
|
|
|
|
||||||||||||
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
|
$
|
|
$
|
|
$
|
|
$
|
|
Nine months ended September 30, 2022 (a)
|
Engine
Management
|
Temperature
Control
|
Other (b)
|
Total
|
||||||||||||
Geographic Area:
|
||||||||||||||||
United States
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Canada
|
|
|
|
|
||||||||||||
Europe
|
|
|
|
|
||||||||||||
Mexico
|
|
|
|
|
||||||||||||
Asia
|
|
|
|
|
||||||||||||
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 |
$ |
$ |
$ |
$ |
Nine months ended September 30, 2021 (a)
|
Engine
Management
|
Temperature
Control
|
Other (b)
|
Total
|
||||||||||||
Geographic Area:
|
||||||||||||||||
United States
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Canada
|
|
|
|
|
||||||||||||
Europe
|
|
|
|
|
||||||||||||
Mexico
|
|
|
|
|
||||||||||||
Asia
|
|
|
|
|
||||||||||||
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 |
Nine
Months Ended |
|||||||||||||||
|
September 30,
|
September 30,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
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
September 30,
|
||||||||
(In thousands, except per share data)
|
2022
|
2021
|
||||||
Net sales
|
$
|
381,373
|
$
|
370,310
|
||||
Gross profit
|
106,784
|
105,205
|
||||||
Gross profit %
|
28
|
%
|
28.4
|
%
|
||||
Operating income
|
33,615
|
38,538
|
||||||
Operating income %
|
8.8
|
%
|
10.4
|
%
|
||||
Earnings from continuing operations before income taxes
|
31,472
|
38,666
|
||||||
Provision for income taxes
|
8,280
|
9,481
|
||||||
Earnings from continuing operations
|
23,192
|
29,185
|
||||||
Loss from discontinued operations, net of income taxes
|
(14,294
|
)
|
(5,122
|
)
|
||||
Net earnings
|
8,898
|
24,063
|
||||||
Net earnings (loss) attributable to noncontrolling interest
|
52
|
13
|
||||||
Net earnings attributable to SMP
|
8,846
|
24,050
|
||||||
Per share data attributable to SMP – Diluted:
|
||||||||
Earnings from continuing operations
|
$
|
1.06
|
$
|
1.29
|
||||
Discontinued operations
|
(0.66
|
)
|
(0.22
|
)
|
||||
Net earnings per common share
|
$
|
0.40
|
$
|
1.07
|
Three Months Ended September 30,
|
||||||||
2022
|
2021
|
|||||||
Engine Management:
|
||||||||
Ignition, Emission Control, Fuel and Safety Related System Products
|
$
|
215,021
|
$
|
208,443
|
||||
Wire and Cable
|
36,720
|
38,708
|
||||||
Total Engine Management
|
251,741
|
247,151
|
||||||
Temperature Control:
|
||||||||
Compressors
|
78,211
|
75,080
|
||||||
Other Climate Control Parts
|
44,780
|
43,995
|
||||||
Total Temperature Control
|
122,991
|
119,075
|
||||||
All Other
|
6,641
|
4,084
|
||||||
Total
|
$
|
381,373
|
$
|
370,310
|
Three Months Ended
September 30,
|
Engine
Management
|
Temperature
Control
|
Other
|
Total
|
||||||||||||
2022
|
||||||||||||||||
Net sales
|
$
|
251,741
|
$
|
122,991
|
$
|
6,641
|
$
|
381,373
|
||||||||
Gross margins
|
66,026
|
35,415
|
5,343
|
106,784
|
||||||||||||
Gross margin percentage
|
26.2
|
%
|
28.8
|
%
|
—
|
28
|
%
|
|||||||||
2021
|
||||||||||||||||
Net sales
|
$
|
247,151
|
$
|
119,075
|
$
|
4,084
|
$
|
370,310
|
||||||||
Gross margins
|
66,714
|
33,815
|
4,676
|
105,205
|
||||||||||||
Gross margin percentage
|
27
|
%
|
28.4
|
%
|
—
|
28.4
|
%
|
Nine Months Ended September 30,
|
||||||||
2022
|
2021
|
|||||||
Engine Management:
|
||||||||
Ignition, Emission Control, Fuel and Safety Related System Products
|
$
|
618,198
|
$
|
574,595
|
||||
Wire and Cable
|
114,673
|
117,790
|
||||||
Total Engine Management
|
732,871
|
692,385
|
||||||
Temperature Control:
|
||||||||
Compressors
|
193,551
|
178,031
|
||||||
Other Climate Control Parts
|
125,193
|
109,988
|
||||||
Total Temperature Control
|
318,744
|
288,019
|
||||||
All Other
|
12,001
|
8,535
|
||||||
Total
|
$
|
1,063,616
|
$
|
988,939
|
Nine Months Ended
September 30,
|
Engine
Management
|
Temperature
Control
|
Other
|
Total
|
||||||||||||
2022
|
||||||||||||||||
Net sales
|
$
|
732,871
|
$
|
318,744
|
$
|
12,001
|
$
|
1,063,616
|
||||||||
Gross margins
|
193,855
|
85,965
|
13,155
|
292,975
|
||||||||||||
Gross margin percentage
|
26.5
|
%
|
27
|
%
|
—
|
27.5
|
%
|
|||||||||
2021
|
||||||||||||||||
Net sales
|
$
|
692,385
|
$
|
288,019
|
$
|
8,535
|
$
|
988,939
|
||||||||
Gross margins
|
199,231
|
78,468
|
10,562
|
288,261
|
||||||||||||
Gross margin percentage
|
28.8
|
%
|
27.2
|
%
|
—
|
29.1
|
%
|
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 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
Total Number of
Shares
Purchased (1)
|
Average
Price Paid
Per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs (2)
|
Maximum Number (or
Approximate Dollar
Value) of Shares that
may yet be Purchased
Under the Plans or
Programs (2)
|
||||||||||||
July 1 – 31, 2022
|
70,182
|
$
|
45.03
|
70,182
|
$
|
30,000,000
|
||||||||||
August 1 – 31, 2022
|
—
|
—
|
—
|
30,000,000
|
||||||||||||
September 1 – 30, 2022
|
—
|
—
|
—
|
30,000,000
|
||||||||||||
Total
|
70,182
|
$
|
45.03
|
70,182
|
$
|
30,000,000
|
(1) |
All shares were purchased through the publicly announced stock repurchase programs in open-market transactions.
|
(2) |
In October 2021, our Board of Directors authorized the purchase of up to $30 million of our common stock under a stock repurchase program. Stock repurchases under this program, during the year ended December 31, 2022 were 7,000 shares
at a total cost of $0.3 million, and during the three and nine months ended September 30, 2022 were 70,182 shares and 692,067 shares of our common stock, respectively, at a total cost of $3.2 million and $29.7 million, respectively, thereby
completing the October 2021 Board of Directors authorization.
|
ITEM 6. |
EXHIBITS
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Chief Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
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: October 31, 2022
|
/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: October 31, 2022
|
||
/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: October 31, 2022
|
|
/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
|
|
October 31, 2022
|
(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
|
|
October 31, 2022
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net earnings | $ 8,898 | $ 24,063 | $ 47,547 | $ 72,224 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (8,279) | (2,466) | (15,445) | (1,905) |
Derivative instruments | 4,199 | 0 | 4,304 | 0 |
Pension and postretirement plans | (2) | (4) | (11) | (13) |
Total other comprehensive income, net of tax | (4,082) | (2,470) | (11,152) | (1,918) |
Total Comprehensive income | 4,816 | 21,593 | 36,395 | 70,306 |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax: | ||||
Net earnings | 52 | 13 | 129 | 32 |
Foreign currency translation adjustments | (115) | 20 | (176) | (2) |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax | (63) | 33 | (47) | 30 |
Comprehensive income attributable to SMP | $ 4,879 | $ 21,560 | $ 36,442 | $ 70,276 |
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 17,525 | $ 21,755 |
Accounts receivable, less allowances for discounts and expected credit losses of $5,900 and $6,170 for 2022 and 2021, respectively | 230,442 | 180,604 |
Inventories | 534,310 | 468,755 |
Unreturned customer inventories | 21,485 | 22,268 |
Prepaid expenses and other current assets | 25,911 | 17,823 |
Total current assets | 829,673 | 711,205 |
Property, plant and equipment, net of accumulated depreciation of $234,062 and $227,788 for 2022 and 2021, respectively | 104,199 | 102,786 |
Operating lease right-of-use assets | 47,168 | 40,469 |
Goodwill | 130,727 | 131,652 |
Other intangibles, net | 99,756 | 106,234 |
Deferred income taxes | 34,484 | 36,126 |
Investments in unconsolidated affiliates | 42,648 | 44,087 |
Other assets | 30,071 | 25,402 |
Total assets | 1,318,726 | 1,197,961 |
CURRENT LIABILITIES: | ||
Current portion of revolving credit facility | 52,100 | 125,298 |
Current portion of term loan and other debt | 6,036 | 3,117 |
Accounts payable | 103,894 | 137,167 |
Sundry payables and accrued expenses | 54,215 | 57,182 |
Accrued customer returns | 53,857 | 42,412 |
Accrued core liability | 23,845 | 23,663 |
Accrued rebates | 42,378 | 42,472 |
Payroll and commissions | 37,539 | 45,058 |
Total current liabilities | 373,864 | 476,369 |
Long-term debt | 211,400 | 21 |
Noncurrent operating lease liabilities | 38,618 | 31,206 |
Other accrued liabilities | 20,637 | 25,040 |
Accrued asbestos liabilities | 63,820 | 52,698 |
Total liabilities | 708,339 | 585,334 |
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 | 104,411 | 105,377 |
Retained earnings | 562,135 | 532,319 |
Accumulated other comprehensive income | (19,145) | (8,169) |
Treasury stock - at cost (2,366,339 shares and 1,911,792 shares in 2022 and 2021, respectively) | (95,886) | (75,819) |
Total SMP stockholders' equity | 599,387 | 601,580 |
Noncontrolling interest | 11,000 | 11,047 |
Total stockholders' equity | 610,387 | 612,627 |
Total liabilities and stockholders' equity | $ 1,318,726 | $ 1,197,961 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
CURRENT ASSETS: | ||
Accounts receivable, allowances for discounts and expected credit losses | $ 5,900 | $ 6,170 |
Property, plant and equipment, accumulated depreciation | $ 234,062 | $ 227,788 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 2 | $ 2 |
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) | 2,366,339 | 1,911,792 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 47,547 | $ 72,224 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 20,895 | 20,160 |
Amortization of deferred financing cost | 294 | 171 |
Increase (decrease) to allowance for expected credit losses | (561) | 381 |
Increase (decrease) to inventory reserves | 4,354 | (443) |
Equity income from joint ventures | (3,553) | (2,419) |
Employee stock ownership plan allocation | 1,722 | 1,885 |
Stock-based compensation | 6,327 | 7,189 |
Decrease in deferred income taxes | 245 | 1 |
Loss on discontinued operations, net of tax | 17,076 | 7,139 |
Change in assets and liabilities: | ||
(Increase) in accounts receivable | (51,887) | (15,343) |
(Increase) in inventories | (75,300) | (52,742) |
(Increase) decrease in prepaid expenses and other current assets | (6,270) | 2,324 |
Increase (decrease) in accounts payable | (31,844) | 24,228 |
Increase in sundry payables and accrued expenses | 3,807 | 18,905 |
Net change in other assets and liabilities | (8,327) | (4,522) |
Net cash provided by (used in) operating activities | (75,475) | 79,138 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of and investments in businesses | 0 | (124,663) |
Capital expenditures | (19,499) | (19,406) |
Other investing activities | 12 | 29 |
Net cash used in investing activities | (19,487) | (144,040) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under the term loan | 100,000 | 0 |
Repayments of the term loan | (1,250) | 0 |
Net borrowings under revolving credit facilities | 44,452 | 118,938 |
Net borrowings (repayments) of other debt and capital lease obligations | (1,745) | 2,916 |
Purchase of treasury stock | (29,656) | (26,518) |
Payments of debt issuance costs | (2,128) | 0 |
Increase (decrease) in overdraft balances | (54) | 455 |
Dividends paid | (17,602) | (16,678) |
Net cash provided by financing activities | 92,017 | 79,113 |
Effect of exchange rate changes on cash | (1,285) | (555) |
Net increase (decrease) in cash and cash equivalents | (4,230) | 13,656 |
CASH AND CASH EQUIVALENTS at beginning of period | 21,755 | 19,488 |
CASH AND CASH EQUIVALENTS at end of period | 17,525 | 33,144 |
Cash paid during the period for: | ||
Interest | 5,828 | 1,094 |
Income taxes | $ 21,837 | $ 18,361 |
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, 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 | 72,192 | 0 | 0 | 72,192 | 32 | 72,224 |
Other comprehensive income, net of tax | 0 | 0 | 0 | (1,916) | 0 | (1,916) | (2) | (1,918) |
Cash dividends paid | 0 | 0 | (16,678) | 0 | 0 | (16,678) | 0 | (16,678) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (26,518) | (26,518) | 0 | (26,518) |
Stock-based compensation | 0 | 4,357 | 0 | 0 | 2,832 | 7,189 | 0 | 7,189 |
Employee Stock Ownership Plan | 0 | 134 | 0 | 0 | 2,379 | 2,513 | 0 | 2,513 |
Balance at end of period at Sep. 30, 2021 | 47,872 | 109,575 | 519,126 | (7,592) | (81,963) | 587,018 | 11,534 | 598,552 |
Balance at beginning of period at Jun. 30, 2021 | 47,872 | 107,062 | 500,620 | (5,102) | (66,836) | 583,616 | 11,501 | 595,117 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 24,050 | 0 | 0 | 24,050 | 13 | 24,063 |
Other comprehensive income, net of tax | 0 | 0 | 0 | (2,490) | 0 | (2,490) | 20 | (2,470) |
Cash dividends paid | 0 | 0 | (5,544) | 0 | 0 | (5,544) | 0 | (5,544) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (15,422) | (15,422) | 0 | (15,422) |
Stock-based compensation | 0 | 2,513 | 0 | 0 | 295 | 2,808 | 0 | 2,808 |
Balance at end of period at Sep. 30, 2021 | 47,872 | 109,575 | 519,126 | (7,592) | (81,963) | 587,018 | 11,534 | 598,552 |
Balance at beginning of period at Dec. 31, 2021 | 47,872 | 105,377 | 532,319 | (8,169) | (75,819) | 601,580 | 11,047 | 612,627 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 47,418 | 0 | 0 | 47,418 | 129 | 47,547 |
Other comprehensive income, net of tax | 0 | 0 | 0 | (10,976) | 0 | (10,976) | (176) | (11,152) |
Cash dividends paid | 0 | 0 | (17,602) | 0 | 0 | (17,602) | 0 | (17,602) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (29,656) | (29,656) | 0 | (29,656) |
Stock-based compensation | 0 | (1,335) | 0 | 0 | 7,662 | 6,327 | 0 | 6,327 |
Employee Stock Ownership Plan | 0 | 369 | 0 | 0 | 1,927 | 2,296 | 0 | 2,296 |
Balance at end of period at Sep. 30, 2022 | 47,872 | 104,411 | 562,135 | (19,145) | (95,886) | 599,387 | 11,000 | 610,387 |
Balance at beginning of period at Jun. 30, 2022 | 47,872 | 109,117 | 559,069 | (15,178) | (99,294) | 601,586 | 11,063 | 612,649 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 0 | 0 | 8,846 | 0 | 0 | 8,846 | 52 | 8,898 |
Other comprehensive income, net of tax | 0 | 0 | 0 | (3,967) | 0 | (3,967) | (115) | (4,082) |
Cash dividends paid | 0 | 0 | (5,780) | 0 | 0 | (5,780) | 0 | (5,780) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (3,160) | (3,160) | 0 | (3,160) |
Stock-based compensation | 0 | (4,706) | 0 | 0 | 6,568 | 1,862 | 0 | 1,862 |
Balance at end of period at Sep. 30, 2022 | $ 47,872 | $ 104,411 | $ 562,135 | $ (19,145) | $ (95,886) | $ 599,387 | $ 11,000 | $ 610,387 |
Basis of Presentation |
9 Months Ended |
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Sep. 30, 2022 | |
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 manufacturer and distributor of premium replacement parts utilized in the maintenance, repair and service of vehicles in the automotive aftermarket industry along with a complementary focus on specialized equipment parts for
manufacturers across multiple industries around the world.
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, 2021. 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 2022 presentation.
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Summary of Significant Accounting Policies |
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Sep. 30, 2022 | ||||||||||||||||||||||
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 disruptions in the supply chain caused by the COVID-19 pandemic, Russia’s invasion of the Ukraine and resultant sanctions imposed by the U.S. and other governments, future increases in interest rates, 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 expected credit losses, 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.
Derivative Instruments and Hedging Activities
We occasionally use derivative financial instruments to reduce our market risk for changes in
interest rates on our variable rate borrowings. Derivative financial instruments are recorded at fair value in other current and long-term assets, and other current and long-term liabilities in the consolidated balance sheets. For derivative
financial instruments that have been formally designated as cash flow interest rate hedges (“interest rate swap agreements”), provided that the hedging instrument is highly effective, the entire change in the fair value of the derivative will be
deferred and recorded in accumulated other comprehensive income (“AOCI”) in the consolidated balance sheets. When the underlying hedged transaction is realized (i.e., when the interest payments on the underlying borrowing are recognized in the
consolidated statements of operations), the gain/loss included in AOCI is recorded in earnings and reflected on the same line as the gain/loss on the hedged item attributable to the hedged risk (i.e., interest expense). At the inception of each
transaction, we formally document the hedge relationship, including the identification of the hedge instrument, the related hedged items, the effectiveness of the hedge, as well as its risk management objectives and strategies.
Other than the addition of the foregoing accounting policy, “Derivative Instruments and Hedging Activities,”
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, 2021.
Recently Issued Accounting Pronouncements
Standards that are not yet adopted as of September 30, 2022
The following table provides a brief description of recently issued accounting pronouncements that have not
yet been adopted as of September 30, 2022, and that could have an impact on our financial statements:
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Business Acquisitions and Investments |
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Business Acquisitions and Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions and Investments |
Note 3. Business Acquisitions and Investments
2021 Business Acquisitions
Acquisition of Capital Stock of Stabil Operative Group GmbH (“Stabil”)
In September 2021, we acquired 100% of the capital
stock of Stabil Operative Group GmbH, a German company (“Stabil”), for Euros 13.7 million, or $16.3 million. Stabil is a manufacturer and distributor of a variety of components, including electronic sensors, control units, and clamping
devices to the European Original Equipment (“OE”) market, serving both commercial and light vehicle applications. The acquired Stabil business was paid for with cash funded by borrowings under our revolving credit facility with JPMorgan Chase
Bank, N.A., as agent, and is headquartered on the outskirts of Stuttgart, Germany with facilities in Germany and Hungary. The acquisition, reported as part of our Engine Management Segment, aligns with our strategy of expansion beyond our
core aftermarket business into complementary areas, and gives us exposure to a diversified group of blue chip European commercial and light vehicle OE customers.
The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values (in thousands):
Intangible assets acquired of $5.5 million consist of customer relationships that will be amortized on a straight-line basis over the estimated useful life of 20 years. Goodwill of $4.8 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.
Incremental revenues from the acquired Stabil business included in our consolidated statement of operations for the three months and nine months ended September 30, 2022 were $3.3 million and $14.9 million, respectively.
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. 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, to be reported as part of our Engine Management Segment, aligns with our strategy of expansion into non-aftermarket parts.
The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values (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 $49.3 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.
Incremental revenues from the acquired
Trombetta business were $27.4 million for the six months ended June 30, 2022 ($16.6 million and $10.8 million in the first quarter and second quarter of 2022, respectively) and were included in our consolidated statement of operations for the nine
months ended September 30, 2022.
Acquisition of Particulate Matter Sensor Business of Stoneridge, Inc. (“Soot Sensor”)
In March 2021 and November 2021, we finalized the acquisitions of certain Soot Sensor product lines from Stoneridge, Inc. for $2.9 million. The acquired product lines were paid for with cash funded by borrowings under our revolving credit facility with JPMorgan Chase Bank,
N.A. The assets acquired include inventory, machinery, and equipment and certain intangible assets.
The product lines acquired are used to manufacture sensors used in the exhaust and emission systems of diesel engines. The acquired product lines were located in Stoneridge’s facilities in Lexington,
Ohio and Tallinn, Estonia. We did not acquire these facilities, nor any of Stoneridge’s employees, and have substantially completed the relocation of the acquired inventory, machinery and equipment related to the product lines to our engine
management plants in Independence, Kansas and Bialystok, Poland. The acquisition, reported as part of our Engine Management Segment, aligns with our strategy of expansion into non-aftermarket parts. Customer relationships acquired include
Volvo, CNHi and Hino.
The following
table presents the allocation of the purchase price to the assets acquired and liabilities assumed 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.
Incremental revenues from the acquired Soot Sensor business included in our consolidated statement of operations for the nine months ended September 30, 2022 were $2.3 million, all of which relates to the first quarter of 2022. |
Restructuring and Integration Expenses |
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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,
2021 and September 30, 2022 and for the nine months ended September 30, 2022, consisted of the following (in thousands):
Integration Costs
Particulate Matter Sensor
(“Soot Sensor”) Product Line Relocation
In connection with our acquisitions
in March 2021 and November 2021 of certain soot sensor product lines from Stoneridge, Inc., we incurred certain integration expenses in connection with the relocation of certain inventory, machinery, and equipment to our existing facilities in
Independence, Kansas and Bialystok, Poland. Integration expenses recognized and cash payments made of $44,000, during the nine
months ended September 30, 2022, related to these relocation activities in our Engine Management segment. The soot sensor product line relocation has been substantially completed.
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 $16,000 during the nine months ended September 30, 2022
consists of severance payments to former employees terminated in connection with these programs. There is no remaining aggregate
liability as of September 30, 2022.
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Sale of Receivables |
9 Months Ended |
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Sep. 30, 2022 | |
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 $236.3 million and $610.4 million of receivables during the three months and nine months ended September 30, 2022, respectively, and $232.5 million and $626.9 million for the comparable periods in 2021. Receivables presented at financial institutions and not yet collected as of September 30, 2022 and
December 31, 2021 were approximately $9.8 million and $1.3 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 $10.6 million and $21.8 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 nine months
ended September 30, 2022, respectively, and $3 million and $8.7 million for the comparable periods in 2021.
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, or an alternative benchmark reference rate, as it is a component of the discount rate applicable to each arrangement. If the LIBOR
rate, or alternative benchmark reference 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.
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Inventories |
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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:
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Acquired Intangible Assets |
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Acquired Intangible Assets |
Note 7. Acquired Intangible Assets
Acquired identifiable intangible assets consist of the following:
Total amortization expense for acquired intangible
assets was $2.1 million and $6.4 million for the three months
and nine months ended September 30, 2022, respectively, and $2.4 million and $6.5 million for the comparable periods in 2021. Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be
$2.2 million for the remainder of 2022, $8.3 million
in 2023, $8.3 million in 2024, $8.3
million in 2025 and $68.5 million in the aggregate for the years 2026 through 2041.
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Leases |
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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 eleven years, some of which may include one or more five-year renewal options. We have not included any of the renewal options in our operating lease payments, as we concluded that it is not reasonably certain that we will exercise any of
these renewal options. 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 provide quantitative disclosures related to our operating leases and includes all
operating leases acquired from the date of acquisition (in thousands):
Minimum Lease Payments
At September 30, 2022, we are obligated to make minimum lease payments through 2033, under operating leases, which are as follows (in thousands):
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Credit Facilities and Long-Term Debt |
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Credit Facilities and Long-Term Debt |
Note 9. Credit Facilities and Long-Term Debt
Total debt outstanding is summarized as follows:
Term Loan and Revolving Credit Facilities
In March 2022, the Company and its wholly owned subsidiaries, SMP Motor Products Ltd. and Trumpet Holdings, Inc., entered into an amendment to our existing Credit
Agreement, dated as of October 28, 2015, as amended (the “2015 Credit Agreement”), with JP Morgan Chase Bank, N.A., as agent, and a syndicate of lenders for our senior secured revolving credit facility. The amendment provided for the drawdown of an
additional $50 million from the agreement’s accordion feature to increase the line of credit under the revolving credit facility from $250 million to $300 million, and updated
the benchmark provisions to replace LIBOR with Term SOFR as the reference rate.
In June 2022, the Company entered into a new Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders (the “Credit
Agreement”). The Credit Agreement provides for a $500 million credit facility comprised of a $100 million term loan facility (the “term loan”) and a $400
million multi-currency revolving credit facility available in U.S. Dollars, Euros, Sterling, Swiss Francs, Canadian Dollars and other currencies as agreed to by the administrative agent and the lenders (the “revolving facility”). The Credit
Agreement replaces and refinances the 2015 Credit Agreement.
Borrowings under the Credit Agreement were used to repay all outstanding borrowings under the 2015 Credit Agreement, and pay certain fees and expenses incurred in
connection with the Credit Agreement, with future borrowings used for other general corporate purposes of the Company and its subsidiaries. The term loan amortizes in quarterly installments of 1.25% in each of the first four years, and quarterly installments of 2.5% in the
fifth year of the Credit Agreement. The revolving facility has a $25 million sub-limit for the issuance of letters of credit and a $25 million sub-limit for the borrowing of swingline loans. The maturity date is June 1, 2027. The Company may request up to two one-year extensions of the maturity date.
The Company may, upon the agreement of one or more then existing lenders or of additional financial institutions not currently party to the Credit Agreement, increase the
revolving facility commitments or obtain incremental term loans by an aggregate amount not to exceed (x) the greater of (i) $168 million
or (ii) 100% of consolidated EBITDA (as defined in the Credit Agreement) for the four fiscal quarters ended most recently before such
date, plus (y) the amount of any voluntary prepayment of term loans, plus (z) an unlimited amount so long as, immediately after giving effect thereto, the pro forma First Lien Net Leverage Ratio (as defined in the Credit Agreement) does not exceed
2.5 to 1.0.
Term loan and revolver facility borrowings in U.S. Dollars bear interest, at the Company’s election, at a rate per annum equal to Term SOFR plus 0.10% plus an applicable margin, or an alternate base rate plus an applicable margin, where the alternate base rate is the greater of the prime rate,
the federal funds effective rate plus 0.50%, and one-month Term SOFR plus 0.10% plus 1.00%. Term loan borrowings are being made at one-month Term
SOFR. The applicable margin for the term benchmark borrowings ranges from 1.0% to 2.0%, and the applicable margin for alternate base rate borrowings ranges from 0%
to 1.0%, in each case, based on the total net leverage ratio of the Company and its restricted subsidiaries. The Company may select
interest periods of one, three or six months for Term SOFR borrowings. Interest is payable at the end of the selected interest period,
but no less frequently than quarterly.
The Company’s obligations under the Credit Agreement are guaranteed by its material domestic subsidiaries (each, a “Guarantor”), and secured by a first priority perfected
security interest in substantially all of the existing and future personal property of the Company and each Guarantor, subject to certain exceptions. The collateral security described above also secures certain banking services obligations and
interest rate swaps and currency or other hedging obligations of the Company owing to any of the then existing lenders or any affiliates thereof. Concurrently with the Company’s entry into the Credit Agreement, the Company also entered into a seven year interest rate swap agreement with Wells Fargo Bank, N.A., Co-Syndication Agent and lender under the Credit Agreement, on $100 million of borrowings under the Credit Agreement. The interest rate swap agreement matures in May 2029.
Outstanding borrowings at September 30, 2022 under the Credit Agreement were $268.5
million, consisting of current borrowings of $57.1 million and long-term debt of $211.4 million; while outstanding borrowings at December 31, 2021 under the 2015 Credit Agreement were $125.3 million, consisting of current borrowings. Letters of credit outstanding under the Credit Agreement were $2.4 million at September 30, 2022, and $2.6 million under the
2015 Credit Agreement at December 31, 2021. Borrowings at December 31, 2021 under the 2015 Credit Agreement have been classified as current liabilities based upon accounting rules and certain provisions in the agreement.
At September 30, 2022, the weighted average interest rate under our Credit Agreement was 4.4%, which consisted of $268 million in borrowings at 4.4% under Term SOFR, adjusted for the impact of the interest rate swap agreement on $100 million of borrowings, and an alternative base rate borrowing of $0.5 million at 6.8%. At December 31, 2021, the weighted average interest rate on our 2015
Credit Agreement was 1.4%, which consisted of $125 million in direct borrowings at 1.4% and alternative base rate loan of $0.3 million at 3.5%. During the nine
months ended September 30, 2022, our average daily alternative base rate loan balance was $7.5 million, compared to a balance of $1 million for the nine months ended September 30, 2021 and a balance of $1.1 million for the year ended December 31, 2021.
The Credit Agreement contains customary covenants limiting, among other things, the incurrence of additional indebtedness, the creation of liens, mergers, consolidations,
liquidations and dissolutions, sales of assets, dividends and other payments in respect of equity interests, acquisitions, investments, loans and guarantees, subject, in each case, to customary exceptions, thresholds and baskets. The Credit
Agreement also contains customary events of default.
Polish Overdraft Facility
In February 2022, our Polish subsidiary, SMP Poland sp. z.o.o., amended its overdraft facility with HSBC Continental Europe (Spolka Akcyjna) Oddzial w Polsce, formerly HSBC
France (Spolka Akcyjna) Oddzial w Polsce. The amended overdraft facility provides for borrowings of up to Zloty 30 million (approximately
$6.1 million). Availability under the amended facility commenced in
, with automatic three-month renewals until 2027 subject to
cancellation by either party, at its sole discretion, at least 30 days prior to the commencement of the three-month renewal period. 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 September 30, 2022 and December 31, 2021, borrowings under the
overdraft facility were Zloty 4.9 million (approximately $1 million) and Zloty 12.3 million (approximately $3 million), respectively.Maturities of Debt
As of September 30, 2022, maturities of debt through 2027, assuming no prepayments, are as follows (in thousands):
Deferred Financing Costs
We have deferred financing costs of approximately $2.2
million and $0.4 million as of September 30, 2022 and December 31, 2021, respectively. Deferred financing costs are related to our term
loan and revolving credit facilities. In connection with the amendment to the 2015 Credit Agreement entered into in March 2022 and the Credit Agreement entered into in June 2022 with JPMorgan Chase Bank, N.A., as agent, we incurred and capitalized
approximately $0.2 million, and $1.9
million, respectively, of deferred financing costs related to bank, legal, and other professional fees which are being amortized, along with certain preexisting deferred financing costs, through June 2027, the term of the Credit Agreement. In
addition, upon entering into the Credit Agreement, we wrote-off $40,000 of unamortized deferred financing costs associated with the 2015
Credit Agreement. Unamortized deferred financing costs written-off in June 2022 were recorded in other non-operating income (expense), net in our consolidated statement of operations.
Deferred financing costs as of September 30, 2022, assuming no prepayments, are being amortized as follows:
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Accumulated Other Comprehensive Income |
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Accumulated Other Comprehensive Income |
Note 10. Accumulated Other Comprehensive Income
Changes in Accumulated Other Comprehensive Income by Component (in thousands)
Reclassifications Out of Accumulated Other Comprehensive Income (in thousands)
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Stock-Based Compensation Plans |
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Plans [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Plans |
Note 11. 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
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 under the Amended and Restated 2016 Omnibus
Incentive Plan (“Plan”). 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 nine months ended
September 30, 2022:
We recorded compensation expense related to restricted shares and performance-based shares of $5.7 million ($4.2 million, net of tax) and $6.8 million ($5.1 million, net of tax) for the nine months ended September 30, 2022 and 2021, respectively. The unamortized compensation
expense related to our restricted and performance-based shares was $16.6 million at September 30, 2022, and is expected to be recognized as they vest over a weighted average period of 4.55 years and 0.56 years for employees and directors, respectively.
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Employee Benefits |
9 Months Ended |
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Sep. 30, 2022 | |
Employee Benefits [Abstract] | |
Employee Benefits |
Note 12. Employee Benefits
We provide certain medical and dental care benefits to 14 former U.S. union employees. The postretirement medical and dental benefit obligation to the former
union employees as of September 30, 2022, and the related net periodic benefit cost for the plan for the three and nine months ended September 30, 2022 and 2021 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 2022, we made company contributions to the plan of $0.8 million related to calendar year 2021.
We also have an Employee Stock Ownership Plan 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 nine months ended September 30, 2022, we contributed to the trust an additional 48,200 shares from our treasury and released 48,200 shares from the trust leaving 200 shares remaining in the trust as of September 30, 2022.
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Derivative Financial Instruments |
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Sep. 30, 2022 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments |
Note 13. Derivative
Financial Instruments
Interest Rate Swap
Agreements
We occasionally use
derivative financial instruments to reduce our market risk for changes in interest rates on our variable rate borrowings. The principal financial instruments used for cash flow hedging purposes are interest rate swap agreements. The interest rate
swaps effectively convert a portion of our variable rate borrowings under our existing facilities to a fixed rate based upon determined notional amount. We do not enter into interest rate swap agreements, or other financial instruments, for trading
or speculative purposes.
In June
2022, we entered into a seven year interest rate swap agreement with a notional amount of $100 million that is to mature in . The interest rate
swap agreement has been designated as a cash flow hedge of interest payments on $100 million of borrowings under our Credit Agreement.
Under the terms of the swap agreement, we will receive monthly variable interest payments based on one month Term SOFR and will pay
interest based upon a fixed rate of 2.683% per annum, adjusted upward for the credit spread adjustment in the Credit Agreement of 0.10% and the loan margin in the Credit Agreement of 1.50%
at September 30, 2022.
The fair value of the
interest rate swap agreement as of September 30, 2022 was an asset of $5.8 million, which has been deferred and recorded in accumulated
other comprehensive income, net of income taxes, in our consolidated balance sheet. When the interest expense on the underlying borrowing is recognized, the deferred gain/loss in accumulated other comprehensive income is recorded in earnings as
interest expense in the consolidated statements of operations. We perform quarterly hedge effectiveness assessments and anticipate that the interest rate swap will be highly effective throughout its term.
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Fair Value Measurements |
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Fair Value Measurements |
Note 14. Fair Value Measurements
We follow a three-level fair value hierarchy that prioritizes the inputs to measure fair value. This hierarchy requires entities to maximize the use of “observable
inputs” and minimize the use of “unobservable inputs.” The three levels of inputs used to measure fair value are as follows:
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets as of the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in
markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect assumptions that market participants would use in pricing an asset or liability.
The following is a summary of the estimated fair values, carrying amounts, and classification under the fair value hierarchy of our financial instruments at September
30, 2022 and December 31, 2021 (in thousands):
The carrying value of cash and cash equivalents approximates fair value due to the short maturity of those investments. The fair value of the underlying assets held by
the deferred compensation plan are based on the quoted market prices of the underlying funds which are held by registered investment companies. The carrying value of our variable rate short-term borrowings and long-term debt under our credit
facilities approximates fair value as the variable interest rates in the facilities reflect current market rates. The fair value of our cash flow interest rate swap agreement obtained from two independent third parties, is based upon market quotes, and represents the net amount required to terminate the interest rate swap, taking into consideration market rates and
counterparty credit risk.
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Earnings Per Share |
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Earnings Per Share |
Note 15. 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):
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Industry Segments |
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Industry Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industry Segments |
Note 16. 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 non-aftermarket, 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
17, “Net Sales.”
|
Net Sales |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales |
Note 17. 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 nine months ended September 30, 2022 and 2021 (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 Specialized Original Equipment (“OE”) and Original Equipment Service (“OES”) channel, we sell our products to original equipment
manufacturers who redistribute our products within their distribution network, independent dealerships and service dealer technicians. Lastly, in the Export channel, our domestic entities sell to customers outside the United States.
|
Commitments and Contingencies |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
Note 18. 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 September 30, 2022, approximately 1,550 cases were
outstanding for which we may be responsible for any related liabilities. Since inception in September 2001 through September 30, 2022, the amounts paid for settled claims and awards of asbestos-related damages, including interest, were approximately
$64 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; (4) an analysis of our settlements and awards of asbestos-related damages to date; and (5) an analysis of closed
claims 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, an updated actuarial study was performed as of August 31, 2022.
The results of the August 31, 2022 study included an estimate of our undiscounted liability for settlement payments and awards of asbestos-related damages, excluding legal costs, ranging from $68.8 million to $111.6 million for the period through 2065. The
change from the prior year study, which was in August 31,2021, was a $7.9 million increase for the low end of the range, and an $11.4 million increase for the high end of the range. The increase in the estimated undiscounted liability from the prior year study at both the low end
and the high end of the range reflects our actual experience, our historical data, recent settlements and certain assumptions with respect to events that may occur in the future.
Based upon the results of the August 31, 2022 actuarial study, in September 2022, we increased our asbestos liability to $68.8 million, the low end of the range, and recorded an incremental pre-tax provision of $18.5 million in earnings (loss) from discontinued operations in the accompanying statement of operations. Future legal costs, which are expensed as incurred and reported in earnings (loss) from discontinued
operations in the accompanying statement of operations, are estimated, according to the August 31, 2022 study, to range from $53.2 million
to $105.7 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 $11 million and $6.7 million for the nine months ended September 30, 2022 and 2021, 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 September 30, 2022 and 2021, we have accrued $30 million and $18.9 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):
|
Subsequent Event |
9 Months Ended |
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Sep. 30, 2022 | |
Subsequent Event [Abstract] | |
Subsequent Event |
Note 19. Subsequent Event
In October 2022, we acquired 100% of the capital stock of Kade Trading GmbH (“Kade”) headquartered in Glinde, Germany for Euros 1.9 million (approximately $1.9 million), net of closing balance sheet
adjustments, plus a Euros 0.5 million (approximately $0.5 million) earn-out based upon Kade’s performance in 2024 and 2025. Kade is a supplier across Europe of mobile temperature control components to commercial vehicle, passenger car and
specialty equipment markets and has been a distributor of SMP products including electric compressors, hose assemblies and receiver dryers, with annual sales of approximately $6 million. The acquired Kade business, to be reported as part of our Temperature Control segment, was paid for with cash funded by borrowings under our Credit Agreement with JP Morgan Chase
Bank, N.A., as agent.
|
Basis of Presentation (Policies) |
9 Months Ended |
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Sep. 30, 2022 | |
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 manufacturer and distributor of premium replacement parts utilized in the maintenance, repair and service of vehicles in the automotive aftermarket industry along with a complementary focus on specialized equipment parts for
manufacturers across multiple industries around the world.
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, 2021. 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 2022 presentation.
|
Summary of Significant Accounting Policies (Policies) |
9 Months Ended | |||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||
Derivative Instruments and Hedging Activities |
Derivative Instruments and Hedging Activities
We occasionally use derivative financial instruments to reduce our market risk for changes in
interest rates on our variable rate borrowings. Derivative financial instruments are recorded at fair value in other current and long-term assets, and other current and long-term liabilities in the consolidated balance sheets. For derivative
financial instruments that have been formally designated as cash flow interest rate hedges (“interest rate swap agreements”), provided that the hedging instrument is highly effective, the entire change in the fair value of the derivative will be
deferred and recorded in accumulated other comprehensive income (“AOCI”) in the consolidated balance sheets. When the underlying hedged transaction is realized (i.e., when the interest payments on the underlying borrowing are recognized in the
consolidated statements of operations), the gain/loss included in AOCI is recorded in earnings and reflected on the same line as the gain/loss on the hedged item attributable to the hedged risk (i.e., interest expense). At the inception of each
transaction, we formally document the hedge relationship, including the identification of the hedge instrument, the related hedged items, the effectiveness of the hedge, as well as its risk management objectives and strategies.
Other than the addition of the foregoing accounting policy, “Derivative Instruments and Hedging Activities,”
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, 2021.
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Recently Issued Accounting Pronouncements |
Recently Issued Accounting Pronouncements
Standards that are not yet adopted as of September 30, 2022
The following table provides a brief description of recently issued accounting pronouncements that have not
yet been adopted as of September 30, 2022, and that could have an impact on our financial statements:
|
Business Acquisitions and Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stabil [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 based on their fair values (in thousands):
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Trombetta [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 based on their fair values (in thousands):
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Soot Sensor [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 based on their fair values (in thousands):
|
Restructuring and Integration Expenses (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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,
2021 and September 30, 2022 and for the nine months ended September 30, 2022, consisted of the following (in thousands):
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Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired Identifiable Intangible Assets |
Acquired identifiable intangible assets consist of the following:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative Disclosures Related to Operating Leases |
The following tables provide quantitative disclosures related to our operating leases and includes all
operating leases acquired from the date of acquisition (in thousands):
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Minimum Lease Payments |
At September 30, 2022, we are obligated to make minimum lease payments through 2033, under operating leases, which are as follows (in thousands):
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Credit Facilities and Long-Term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Facilities and Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Total Debt Outstanding |
Total debt outstanding is summarized as follows:
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Maturities of Debt |
As of September 30, 2022, maturities of debt through 2027, assuming no prepayments, are as follows (in thousands):
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Schedule of Deferred Financing Costs |
Deferred financing costs as of September 30, 2022, assuming no prepayments, are being amortized as follows:
|
Accumulated Other Comprehensive Income (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income by Component |
Changes in Accumulated Other Comprehensive Income by Component (in thousands)
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Reclassifications Out of Accumulated Other Comprehensive Income |
Reclassifications Out of Accumulated Other Comprehensive Income (in thousands)
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Stock-Based Compensation Plans (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Plans [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted and Performance-based Share Activity |
Our restricted and performance-based share activity was as follows for the nine months ended
September 30, 2022:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Estimated Fair Values, Carrying Amounts and Classification under Fair Value Hierarchy |
The following is a summary of the estimated fair values, carrying amounts, and classification under the fair value hierarchy of our financial instruments at September
30, 2022 and December 31, 2021 (in thousands):
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Earnings Per Share (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
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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):
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Industry Segments (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Net Sales |
The following tables
provide disaggregation of net sales information for the three months and nine months ended September 30, 2022 and 2021 (in thousands):
|
Commitments and Contingencies (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Product Warranties |
The following table provides the changes in our product warranties (in thousands):
|
Basis of Presentation (Details) |
Sep. 30, 2022 |
---|---|
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 Stabil Operative Group GmbH (Details) $ in Thousands, € in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2021
EUR (€)
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|||
Assets acquired and liabilities assumed [Abstract] | |||||||
Operating lease right-of-use assets | $ 8,800 | ||||||
Goodwill | $ 130,727 | $ 130,727 | $ 131,652 | ||||
Stabil [Member] | |||||||
Business Combination, Description [Abstract] | |||||||
Percentage of entity acquired | 100.00% | ||||||
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | |||||||
Purchase Price | $ 16,290 | € 13.7 | |||||
Assets acquired and liabilities assumed [Abstract] | |||||||
Receivables | 2,852 | ||||||
Inventory | 5,126 | ||||||
Other current assets | [1] | 1,628 | |||||
Property, plant, and equipment, net | 1,810 | ||||||
Operating lease right-of-use assets | 4,971 | ||||||
Intangible assets | 5,471 | ||||||
Goodwill | 4,827 | ||||||
Current liabilities | (4,190) | ||||||
Noncurrent operating lease liabilities | (4,454) | ||||||
Deferred income taxes | (1,751) | ||||||
Net assets acquired | 16,290 | ||||||
Cash acquired | $ 900 | ||||||
Incremental revenues from acquisition date | $ 3,300 | $ 14,900 | |||||
Stabil [Member] | Customer Relationships [Member] | |||||||
Assets acquired and liabilities assumed [Abstract] | |||||||
Estimated useful life of intangible assets | 20 years | ||||||
|
Business Acquisitions and Investments, Acquisition of Capital Stock of Trumpet Holdings, Inc. (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|---|---|
May 31, 2021 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
|||
Assets acquired and liabilities assumed [Abstract] | |||||||||
Operating lease right-of-use assets | $ 8,800 | ||||||||
Goodwill | $ 130,727 | $ 131,652 | |||||||
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 | $ 111,711 | ||||||||
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 | 49,250 | ||||||||
Current liabilities | (5,072) | ||||||||
Noncurrent operating lease liabilities | (3,065) | ||||||||
Deferred income taxes | (8,210) | ||||||||
Subtotal | 123,215 | ||||||||
Fair value of acquired noncontrolling interest | (11,504) | ||||||||
Net assets acquired | 111,711 | ||||||||
Cash acquired | 4,600 | ||||||||
Incremental revenues from acquisition date | $ 10,800 | $ 16,600 | $ 27,400 | ||||||
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% | ||||||||
|
Business Acquisitions and Investments, Acquisition of Particulate Matter Sensor Business of Stoneridge, Inc. (Details) - Soot Sensor [Member] - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Nov. 30, 2021 |
|
Allocation of the Purchase Price, Assets Acquired and Liabilities Assumed [Abstract] | ||
Purchase Price | $ 2,924 | |
Assets acquired and liabilities assumed [Abstract] | ||
Inventory | 1,032 | |
Machinery and equipment, net | 1,137 | |
Intangible assets | 755 | |
Net assets acquired | 2,924 | |
Business Combination, Description [Abstract] | ||
Incremental revenues from acquisition date | $ 2,300 | |
Customer Relationships [Member] | ||
Assets acquired and liabilities assumed [Abstract] | ||
Intangible assets | $ 800 | |
Business Combination, Description [Abstract] | ||
Estimated useful life of intangible assets | 10 years |
Restructuring and Integration Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Restructuring and integration activities [Roll Forward] | ||||
Exit activity liability, beginning of period | $ 79 | |||
Restructuring and integration costs provided for during 2022 | $ 0 | $ 166 | 44 | $ 166 |
Cash payments | (60) | |||
Reclassification | (63) | |||
Exit activity liability, end of period | 0 | 0 | ||
Soot Sensor Product Line Relocation [Member] | ||||
Restructuring and integration activities [Roll Forward] | ||||
Cash payments | (44) | |||
Plant Rationalization Program [Member] | ||||
Restructuring and integration activities [Roll Forward] | ||||
Cash payments | (16) | |||
Exit activity liability, end of period | 0 | 0 | ||
Workforce Reduction [Member] | ||||
Restructuring and integration activities [Roll Forward] | ||||
Exit activity liability, beginning of period | 79 | |||
Restructuring and integration costs provided for during 2022 | 0 | |||
Cash payments | (16) | |||
Reclassification | (63) | |||
Exit activity liability, end of period | 0 | 0 | ||
Other Exit Costs [Member] | ||||
Restructuring and integration activities [Roll Forward] | ||||
Exit activity liability, beginning of period | 0 | |||
Restructuring and integration costs provided for during 2022 | 44 | |||
Cash payments | (44) | |||
Reclassification | 0 | |||
Exit activity liability, end of period | $ 0 | $ 0 |
Sale of Receivables (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Sale of Receivables [Abstract] | |||||
Sale of receivables to financial institutions | $ 236.3 | $ 232.5 | $ 610.4 | $ 626.9 | |
Receivables not yet collected | 9.8 | 9.8 | $ 1.3 | ||
Charge related to sale of receivables | $ 10.6 | $ 3.0 | $ 21.8 | $ 8.7 |
Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Inventories [Abstract] | ||
Finished goods | $ 326,434 | $ 296,739 |
Work in process | 13,342 | 16,010 |
Raw materials | 194,534 | 156,006 |
Subtotal | 534,310 | 468,755 |
Unreturned customer inventories | 21,485 | 22,268 |
Total inventories | $ 555,795 | $ 491,023 |
Acquired Intangible Assets, Identifiable Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Indefinite Lived Intangible Assets [Abstract] | ||||
Acquired intangible assets | $ 183,175 | $ 184,263 | ||
Less accumulated amortization | [1] | (85,005) | (78,932) | |
Net acquired intangible assets | 98,170 | 105,331 | ||
Customer Relationships [Member] | ||||
Indefinite Lived Intangible Assets [Abstract] | ||||
Acquired intangible assets | 155,932 | 157,020 | ||
Patents, Developed Technology and Intellectual Property [Member] | ||||
Indefinite Lived Intangible Assets [Abstract] | ||||
Acquired intangible assets | 14,123 | 14,123 | ||
Trademarks and Trade Names [Member] | ||||
Indefinite Lived Intangible Assets [Abstract] | ||||
Acquired intangible assets | 8,880 | 8,880 | ||
Acquired indefinite-lived intangible assets | 2,600 | |||
Non-compete Agreements [Member] | ||||
Indefinite Lived Intangible Assets [Abstract] | ||||
Acquired intangible assets | 3,280 | 3,280 | ||
Supply Agreements [Member] | ||||
Indefinite Lived Intangible Assets [Abstract] | ||||
Acquired intangible assets | 800 | 800 | ||
Leaseholds [Member] | ||||
Indefinite Lived Intangible Assets [Abstract] | ||||
Acquired intangible assets | $ 160 | $ 160 | ||
|
Acquired Intangible Assets, Amortization Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Amortization of acquired intangible assets [Abstract] | ||||
Amortization expense | $ 2.1 | $ 2.4 | $ 6.4 | $ 6.5 |
Estimated amortization expense, remainder of 2022 | 2.2 | 2.2 | ||
Estimated amortization expense in year 2023 | 8.3 | 8.3 | ||
Estimated amortization expense in year 2024 | 8.3 | 8.3 | ||
Estimated amortization expense in year 2025 | 8.3 | 8.3 | ||
Estimated amortization expense in years 2026 through 2041 | $ 68.5 | $ 68.5 |
Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|||||
Quantitative Lease Disclosures [Abstract] | |||||||||
Renewal option period | 5 years | 5 years | |||||||
Assets [Abstract] | |||||||||
Operating lease right-of-use assets | $ 47,168 | $ 47,168 | $ 40,469 | ||||||
Liabilities [Abstract] | |||||||||
Sundry payables and accrued expenses | 9,983 | 9,983 | 10,544 | ||||||
Noncurrent operating lease liabilities | 38,618 | 38,618 | 31,206 | ||||||
Total operating lease liabilities | $ 48,601 | $ 48,601 | $ 41,750 | ||||||
Operating Leases [Abstract] | |||||||||
Weighted average remaining lease term | 7 years 3 months 18 days | 7 years 3 months 18 days | 5 years 3 months 18 days | ||||||
Weighted average discount rate | 3.50% | 3.50% | 3.00% | ||||||
Lease Expense [Abstract] | |||||||||
Operating lease expense | [1] | $ 2,817 | $ 2,547 | $ 8,358 | $ 7,324 | ||||
Excluded expenses of non lease | 800 | 300 | 1,900 | 1,200 | |||||
Cash Paid for the amounts included in the measurement of lease liabilities [Abstract] | |||||||||
Operating cash flows from operating leases | 8,188 | 7,271 | |||||||
Right-of-use assets obtained in exchange for new lease obligations [Abstract] | |||||||||
Operating leases | [2] | 26,206 | 19,215 | ||||||
Right-of-use assets related to lease modifications and extension | 21,600 | ||||||||
Right-of use assets obtained in business acquisitions | $ 8,800 | $ 8,800 | |||||||
Minimum Lease Payments [Abstract] | |||||||||
2022 | 2,953 | 2,953 | |||||||
2023 | 9,949 | 9,949 | |||||||
2024 | 8,615 | 8,615 | |||||||
2025 | 6,024 | 6,024 | |||||||
2026 | 5,153 | 5,153 | |||||||
Thereafter | 24,138 | 24,138 | |||||||
Total lease payments | 56,832 | 56,832 | |||||||
Less: Interest | (8,231) | (8,231) | |||||||
Present value of lease liabilities | $ 48,601 | $ 48,601 | $ 41,750 | ||||||
Maximum [Member] | |||||||||
Quantitative Lease Disclosures [Abstract] | |||||||||
Remaining operating lease terms | 11 years | 11 years | |||||||
|
Credit Facilities and Long-Term Debt, Total Debt Outstanding (Details) $ in Thousands, zł in Millions |
Sep. 30, 2022
USD ($)
|
Sep. 30, 2022
PLN (zł)
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2021
PLN (zł)
|
||
---|---|---|---|---|---|---|
Debt Instruments [Abstract] | ||||||
Total debt | $ 269,536 | $ 128,436 | ||||
Current maturities of debt | 58,136 | 128,415 | ||||
Long-term debt | 211,400 | 21 | ||||
Credit Facility - Term Loan Due 2027 [Member] | ||||||
Debt Instruments [Abstract] | ||||||
Total debt | 98,750 | 0 | ||||
Current maturities of debt | 5,000 | |||||
Long-term debt | 93,750 | |||||
Credit Facility - Revolver Due 2027 [Member] | ||||||
Debt Instruments [Abstract] | ||||||
Total debt | 169,750 | 0 | ||||
Current maturities of debt | 52,100 | |||||
Long-term debt | 117,650 | |||||
Senior Secured Facility - Revolver Due 2023 [Member] | ||||||
Debt Instruments [Abstract] | ||||||
Total debt | 0 | 125,298 | ||||
Other [Member] | ||||||
Debt Instruments [Abstract] | ||||||
Total debt | [1] | 1,036 | 3,138 | |||
Current maturities of debt | 1,036 | |||||
Long-term debt | 0 | |||||
Line of Credit Facility [Abstract] | ||||||
Overdraft facility | $ 1,000 | zł 4.9 | $ 3,000 | zł 12.3 | ||
|
Credit Facilities and Long-Term Debt, Term Loan and Revolving Credit Facilities (Details) $ in Thousands |
9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022
USD ($)
Installment
|
Sep. 30, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
Jun. 30, 2022
USD ($)
|
Mar. 31, 2022
USD ($)
|
|
Line of Credit Facility [Abstract] | |||||
Current portion of debt | $ 52,100 | $ 125,298 | |||
Senior Secured Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | $ 300,000 | 250,000 | |||
Line of credit facility, accordion feature | $ 50,000 | ||||
Outstanding borrowings under credit facility | 125,300 | ||||
Outstanding letters of credit | $ 2,600 | ||||
Weighted average interest rate | 1.40% | ||||
Senior Secured Revolving Credit Facility [Member] | Alternate Base Rate [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Outstanding borrowings under credit facility | $ 300 | ||||
Weighted average interest rate | 3.50% | ||||
Average daily loan balance outstanding | $ 1,000 | $ 1,100 | |||
Senior Secured Revolving Credit Facility [Member] | Direct Borrowings [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Outstanding borrowings under credit facility | $ 125,000 | ||||
Weighted average interest rate | 1.40% | ||||
Term Loan and Revolving Credit Facilities [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | $ 500,000 | ||||
Maturity date | Jun. 01, 2027 | ||||
Frequency of periodic payment | quarterly | ||||
Debt instrument, extension period | 1 year | ||||
Borrowing base | $ 168,000 | ||||
Maximum consolidated EBITDA | 1 | ||||
Net Leverage Ratio | 250.00% | ||||
Outstanding borrowings under credit facility | $ 268,500 | ||||
Current portion of debt | 57,100 | ||||
Long-term debt | 211,400 | ||||
Outstanding letters of credit | $ 2,400 | ||||
Weighted average interest rate | 4.40% | ||||
Term Loan and Revolving Credit Facilities [Member] | SOFR [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 0.10% | ||||
Term of variable rate | 1 month | ||||
Interest rate periods | one, three or six months | ||||
Outstanding borrowings under credit facility | $ 268,000 | ||||
Weighted average interest rate | 4.40% | ||||
Term Loan and Revolving Credit Facilities [Member] | Federal Funds Rate [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 0.50% | ||||
Term Loan and Revolving Credit Facilities [Member] | Term Benchmark Borrowings [Member] | Minimum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 1.00% | ||||
Term Loan and Revolving Credit Facilities [Member] | Term Benchmark Borrowings [Member] | Maximum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 2.00% | ||||
Term Loan and Revolving Credit Facilities [Member] | Alternate Base Rate [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 1.00% | ||||
Outstanding borrowings under credit facility | $ 500 | ||||
Weighted average interest rate | 6.80% | ||||
Average daily loan balance outstanding | $ 7,500 | ||||
Term Loan and Revolving Credit Facilities [Member] | Alternate Base Rate [Member] | Minimum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 0.00% | ||||
Term Loan and Revolving Credit Facilities [Member] | Alternate Base Rate [Member] | Maximum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 1.00% | ||||
Term Loan Facility [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | 100,000 | ||||
Term Loan Facility [Member] | Maximum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Number of extensions of maturity date | Installment | 2 | ||||
Term Loan Facility [Member] | First Four Years [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Periodic payment amortization percentage | 1.25% | ||||
Term Loan Facility [Member] | Fifth Year [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Periodic payment amortization percentage | 2.50% | ||||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | 400,000 | ||||
Letter of Credit Sublimit [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | $ 25,000 | ||||
Swing Line Loans [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | 25,000 | ||||
Interest Rate Swap Agreement [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Maximum borrowing capacity | $ 100,000 | ||||
Period of agreement | 7 years | ||||
Outstanding borrowings under credit facility | $ 100,000 | $ 100,000 | |||
Interest Rate Swap Agreement [Member] | SOFR [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Margin on variable rate | 1.50% | ||||
Term of variable rate | 1 month |
Credit Facilities and Long-Term Debt, Polish Overdraft Facility (Details) - Polish Overdraft Facility [Member] zł in Millions, $ in Millions |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2022
PLN (zł)
|
Sep. 30, 2022
USD ($)
|
Feb. 28, 2022
PLN (zł)
|
Feb. 28, 2022
USD ($)
|
Dec. 31, 2021
PLN (zł)
|
Dec. 31, 2021
USD ($)
|
|
Line of Credit Facility [Abstract] | ||||||
Maximum borrowing capacity | zł 30.0 | $ 6.1 | ||||
Overdraft facility initiation date | Mar. 01, 2022 | |||||
Overdraft facility renewal period | 3 months | |||||
Overdraft facility cancellation period | 30 days | |||||
Overdraft facility | zł 4.9 | $ 1.0 | zł 12.3 | $ 3.0 | ||
WIBOR [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Basis spread on variable rate | 1.50% |
Credit Facilities and Long-Term Debt, Maturities of Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Maturities of Debt [Abstract] | ||||
Remainder of 2022 | $ 2,286 | |||
2023 | 5,000 | |||
2024 | 5,000 | |||
2025 | 5,000 | |||
2026 | 7,500 | |||
2027 | 244,750 | |||
Total debt | 269,536 | $ 128,436 | ||
Less: current maturities | (58,136) | (128,415) | ||
Long-term debt | 211,400 | 21 | ||
Revolving Credit Facility [Member] | ||||
Maturities of Debt [Abstract] | ||||
Remainder of 2022 | 0 | |||
2023 | 0 | |||
2024 | 0 | |||
2025 | 0 | |||
2026 | 0 | |||
2027 | 169,750 | |||
Total debt | 169,750 | 0 | ||
Less: current maturities | (52,100) | |||
Long-term debt | 117,650 | |||
Term Loan Facility [Member] | ||||
Maturities of Debt [Abstract] | ||||
Remainder of 2022 | 1,250 | |||
2023 | 5,000 | |||
2024 | 5,000 | |||
2025 | 5,000 | |||
2026 | 7,500 | |||
2027 | 75,000 | |||
Total debt | 98,750 | 0 | ||
Less: current maturities | (5,000) | |||
Long-term debt | 93,750 | |||
Polish Overdraft Facility and Other Debt [Member] | ||||
Maturities of Debt [Abstract] | ||||
Remainder of 2022 | 1,036 | |||
2023 | 0 | |||
2024 | 0 | |||
2025 | 0 | |||
2026 | 0 | |||
2027 | 0 | |||
Total debt | [1] | 1,036 | $ 3,138 | |
Less: current maturities | (1,036) | |||
Long-term debt | $ 0 | |||
|
Credit Facilities and Long-Term Debt, Deferred Financing Costs (Details) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Deferred Financing Costs [Abstract] | ||||
Deferred financing costs | $ 2,220 | $ 400 | ||
Write off of unamortized deferred financing costs | 40,000 | |||
Deferred Finance Costs, Amortization [Abstract] | ||||
Remainder of 2022 | 127 | |||
2023 | 491 | |||
2024 | 478 | |||
2025 | 470 | |||
2026 | 464 | |||
2027 | 190 | |||
Total amortization | $ 2,220 | $ 400 | ||
Term Loan and Revolving Credit Facilities [Member] | ||||
Deferred Financing Costs [Abstract] | ||||
Deferred financing costs | $ 1,900 | $ 200 | ||
Deferred Finance Costs, Amortization [Abstract] | ||||
Total amortization | $ 1,900 | $ 200 |
Accumulated Other Comprehensive Income, Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2022 |
|||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Balance attributable to SMP | $ 601,580 | |||
Other comprehensive income before reclassifications | $ (4,069) | (11,170) | ||
Amounts reclassified from accumulated other comprehensive income | 102 | 194 | ||
Other comprehensive income, net | (3,967) | (10,976) | ||
Balance attributable to SMP | 599,387 | 599,387 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Unrecognized gain relating to change in fair value of cash flow interest rate hedge | 5,700 | 5,800 | ||
Unrecognized gain relating to change in fair value of cash flow interest rate hedge, net of tax | 4,200 | 4,300 | ||
Unrecognized gain, net of cash settlements payments | 100 | 300 | ||
Unrecognized gain, net of cash settlements payments, net of tax | 100 | 200 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Balance attributable to SMP | (15,178) | (8,169) | ||
Balance attributable to SMP | (19,145) | (19,145) | ||
Foreign Currency Translation [Member] | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Balance attributable to SMP | (15,326) | (8,221) | ||
Other comprehensive income before reclassifications | (8,164) | (15,269) | ||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | ||
Other comprehensive income, net | (8,164) | (15,269) | ||
Balance attributable to SMP | (23,490) | (23,490) | ||
Unrecognized Postretirement Benefit Costs (Credit) [Member] | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Balance attributable to SMP | 43 | 52 | ||
Other comprehensive income before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income | (2) | (11) | ||
Other comprehensive income, net | (2) | (11) | ||
Balance attributable to SMP | 41 | 41 | ||
Unrealized Derivative Gains (Losses) [Member] | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Balance attributable to SMP | 105 | 0 | ||
Other comprehensive income before reclassifications | [1] | 4,095 | 4,099 | |
Amounts reclassified from accumulated other comprehensive income | 104 | 205 | ||
Other comprehensive income, net | 4,199 | 4,304 | ||
Balance attributable to SMP | $ 4,304 | $ 4,304 | ||
|
Accumulated Other Comprehensive Income, Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|||||||
Details About Accumulated Other Comprehensive Income Components [Abstract] | ||||||||||
Interest expense | $ 3,656 | $ 652 | $ 6,282 | $ 1,356 | ||||||
Other non-operating income, net | 1,513 | 780 | 4,889 | 2,247 | ||||||
Earnings from continuing operations before taxes | 31,472 | 38,666 | 87,030 | 105,678 | ||||||
Income tax expense | 8,280 | 9,481 | 22,407 | 26,315 | ||||||
Net earnings attributable to SMP | [1] | 8,846 | $ 24,050 | 47,418 | $ 72,192 | |||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||
Details About Accumulated Other Comprehensive Income Components [Abstract] | ||||||||||
Earnings from continuing operations before taxes | 136 | 259 | ||||||||
Income tax expense | 34 | 65 | ||||||||
Net earnings attributable to SMP | 102 | 194 | ||||||||
Unrealized Derivative Gains (Losses) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||
Details About Accumulated Other Comprehensive Income Components [Abstract] | ||||||||||
Interest expense | [2] | 141 | 277 | |||||||
Unrecognized Postretirement Benefit Costs (Credit) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||
Details About Accumulated Other Comprehensive Income Components [Abstract] | ||||||||||
Other non-operating income, net | [3] | $ (5) | $ (18) | |||||||
|
Stock-Based Compensation Plans (Details) $ / shares in Units, $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2022
USD ($)
Type
$ / shares
shares
|
Sep. 30, 2021
USD ($)
|
|
Restricted and Performance Stock Grants [Abstract] | ||
Number of types of restricted stock | Type | 2 | |
Additional Disclosures [Abstract] | ||
Compensation expense, gross | $ | $ 6,327 | $ 7,189 |
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) | 807,019 | |
Granted (in shares) | 246,125 | |
Vested (in shares) | (174,742) | |
Performance Shares Target Adjustment (in shares) | 25,317 | |
Forfeited (in shares) | (6,825) | |
End of period (in shares) | 896,894 | |
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward] | ||
Beginning of period (in dollars per share) | $ / shares | $ 34.92 | |
Granted (in dollars per share) | $ / shares | 28.44 | |
Vested (in dollars per share) | $ / shares | 42.21 | |
Performance Shares Target Adjustment (in dollars per share) | $ / shares | 42.21 | |
Forfeited (in dollars per share) | $ / shares | 41.92 | |
End of period (in dollars per share) | $ / shares | $ 31.86 | |
Additional Disclosures [Abstract] | ||
Compensation expense, gross | $ | $ 5,700 | 6,800 |
Compensation expense, net of tax | $ | 4,200 | $ 5,100 |
Unamortized compensation expense | $ | $ 16,600 | |
Restricted and Performance-Based Shares [Member] | Employees [Member] | ||
Additional Disclosures [Abstract] | ||
Weighted average period of recognition for unrecognized compensation expense | 4 years 6 months 18 days | |
Restricted and Performance-Based Shares [Member] | Directors [Member] | ||
Additional Disclosures [Abstract] | ||
Weighted average period of recognition for unrecognized compensation expense | 6 months 21 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] | Maximum [Member] | ||
Restricted and Performance Stock Grants [Abstract] | ||
Shares authorized for issuance (in shares) | 2,050,000 |
Employee Benefits (Details) $ in Millions |
1 Months Ended | 9 Months Ended |
---|---|---|
Mar. 31, 2022
USD ($)
|
Sep. 30, 2022
Employee
shares
|
|
Benefit Plan [Abstract] | ||
Number of former union employees covered by the plan | Employee | 14 | |
Supplemental Executive Retirement Plan [Member] | ||
Defined Contribution Pension and Other Postretirement Plans [Abstract] | ||
Employer discretionary contribution amount | $ | $ 0.8 | |
Employee Stock Ownership Plan and Trust (ESOP) [Member] | ||
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract] | ||
Additional shares contributed to ESOP (in shares) | 48,200 | |
Shares released from trust (in shares) | 48,200 | |
Total remaining balance of shares in the ESOP (in shares) | 200 |
Derivative Financial Instruments (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
|
Interest Rate Swap Agreement [Member] | ||
Notional Disclosures [Abstract] | ||
Derivative term of contract | 7 years | |
Borrowings under credit agreement | $ 100.0 | $ 100.0 |
Fixed interest rate | 2.683% | |
Derivative, credit spread adjustment percentage | 0.10% | |
Interest Rate Swap Agreement [Member] | SOFR [Member] | ||
Notional Disclosures [Abstract] | ||
Term of variable rate | 1 month | |
Margin on variable rate | 1.50% | |
Interest Rate Swap [Member] | ||
Notional Disclosures [Abstract] | ||
Derivative term of contract | 7 years | |
Derivative, notional amount | $ 100.0 | |
Derivative contract, maturity date | May 31, 2029 | |
Derivative fair value | $ 5.8 |
Fair Value Measurements (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2022
USD ($)
Party
|
Dec. 31, 2021
USD ($)
|
|
Fair Value, Net Asset (Liability) [Abstract] | ||
Number of independent third parties | Party | 2 | |
Fair Value [Member] | LEVEL 1 [Member] | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash and cash equivalents | $ 17,525 | $ 21,755 |
Deferred compensation | 19,386 | 23,623 |
Short term borrowings | 58,136 | 128,415 |
Long-term debt | 211,400 | 21 |
Fair Value [Member] | LEVEL 2 [Member] | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash flow interest rate swap | 5,816 | 0 |
Carrying Amount [Member] | LEVEL 1 [Member] | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash and cash equivalents | 17,525 | 21,755 |
Deferred compensation | 19,386 | 23,623 |
Short term borrowings | 58,136 | 128,415 |
Long-term debt | 211,400 | 21 |
Carrying Amount [Member] | LEVEL 2 [Member] | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash flow interest rate swap | $ 5,816 | $ 0 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|||
Net Earnings Attributable to SMP [Abstract] | ||||||
Earnings from continuing operations | $ 23,140 | $ 29,172 | $ 64,494 | $ 79,331 | ||
Loss from discontinued operations | (14,294) | (5,122) | (17,076) | (7,139) | ||
Net earnings attributable to SMP | [1] | $ 8,846 | $ 24,050 | $ 47,418 | $ 72,192 | |
Basic Net Earnings Per Common Share Attributable to SMP [Abstract] | ||||||
Earnings from continuing operations per common share (in dollars per share) | $ 1.08 | $ 1.32 | $ 2.97 | $ 3.57 | ||
Loss from discontinued operations per common share (in dollars per share) | (0.67) | (0.23) | (0.79) | (0.32) | ||
Net earnings per common share - Basic (in dollars per share) | $ 0.41 | $ 1.09 | $ 2.18 | $ 3.25 | ||
Weighted average common shares outstanding (in shares) | 21,427,393 | 22,090,195 | 21,719,281 | 22,201,398 | ||
Diluted Net Earnings Per Common Share Attributable to SMP [Abstract] | ||||||
Earnings from continuing operations per common share (in dollars per share) | $ 1.06 | $ 1.29 | $ 2.91 | $ 3.5 | ||
Loss from discontinued operations per common share (in dollars per share) | (0.66) | (0.22) | (0.77) | (0.32) | ||
Net earnings per common share - Diluted (in dollars per share) | $ 0.4 | $ 1.07 | $ 2.14 | $ 3.18 | ||
Weighted average common shares outstanding (in shares) | 21,427,393 | 22,090,195 | 21,719,281 | 22,201,398 | ||
Plus incremental shares from assumed conversions [Abstract] | ||||||
Dilutive effect of restricted stock and performance-based stock (in shares) | 421,000 | 454,000 | 434,000 | 477,000 | ||
Weighted average common shares outstanding - Diluted (in shares) | 21,847,602 | 22,543,781 | 22,153,348 | 22,678,114 | ||
Restricted and Performance-Based Shares [Member] | ||||||
Earnings Per Share [Abstract] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 299,000 | 291,000 | 281,000 | 277,000 | ||
|
Industry Segments (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
Segment
|
Sep. 30, 2021
USD ($)
|
|||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Number of reportable operating segments | Segment | 2 | |||||
Net sales | [1] | $ 381,373 | $ 370,310 | $ 1,063,616 | $ 988,939 | |
Operating Income (Loss) | 33,615 | 38,538 | 88,423 | 104,787 | ||
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] | 251,741 | 247,151 | 732,871 | 692,385 | |
Operating Income (Loss) | 23,293 | 27,854 | 71,109 | 89,352 | ||
Engine Management [Member] | Intersegment Revenues [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Net sales | [1] | 6,034 | 7,278 | 16,830 | 17,822 | |
Temperature Control [Member] | Reportable Segments [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Net sales | [1] | 122,991 | 119,075 | 318,744 | 288,019 | |
Operating Income (Loss) | 14,252 | 16,695 | 31,735 | 33,516 | ||
Temperature Control [Member] | Intersegment Revenues [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Net sales | [1] | 1,654 | 2,254 | 7,701 | 7,226 | |
All Other [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Net sales | [1] | 6,641 | 4,084 | 12,001 | 8,535 | |
Operating Income (Loss) | (3,930) | (6,011) | (14,421) | (18,081) | ||
All Other [Member] | Intersegment Revenues [Member] | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||||
Net sales | [1] | $ (7,688) | $ (9,532) | $ (24,531) | $ (25,048) | |
|
Net Sales (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | $ 381,373 | $ 370,310 | $ 1,063,616 | $ 988,939 | |||
Aftermarket [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 304,478 | 290,358 | 824,255 | 785,566 | |||
OE/OES [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 68,707 | 72,543 | 213,836 | 181,848 | |||
Export [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 8,188 | 7,409 | 25,525 | 21,525 | |||
Ignition, Emission Control, Fuel and Safety Related System Products [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 218,571 | 210,692 | 626,455 | 580,345 | |||
Wire and Cable [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 36,817 | 38,666 | 114,739 | 117,613 | |||
Compressors [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 79,958 | 76,264 | 195,490 | 179,619 | |||
Other Climate Control Parts [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 46,027 | 44,688 | 126,932 | 111,362 | |||
United States [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 340,338 | 324,698 | 940,208 | 868,049 | |||
Canada [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 20,210 | 18,381 | 51,156 | 46,797 | |||
Europe [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 9,407 | 7,014 | 27,606 | 17,632 | |||
Mexico [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 7,377 | 6,481 | 22,573 | 19,269 | |||
Asia [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 2,488 | 12,304 | 16,806 | 31,530 | |||
Other Foreign [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 1,553 | 1,432 | 5,267 | 5,662 | |||
Engine Management [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 251,741 | 247,151 | 732,871 | 692,385 | |||
Engine Management [Member] | Aftermarket [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 184,430 | 175,881 | 522,916 | 513,190 | |||
Engine Management [Member] | OE/OES [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 59,908 | 64,343 | 186,449 | 159,164 | |||
Engine Management [Member] | Export [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 7,403 | 6,927 | 23,506 | 20,031 | |||
Engine Management [Member] | Ignition, Emission Control, Fuel and Safety Related System Products [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 215,021 | 208,443 | 618,198 | 574,595 | |||
Engine Management [Member] | Wire and Cable [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 36,720 | 38,708 | 114,673 | 117,790 | |||
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] | 222,110 | 210,639 | 638,377 | 594,014 | |||
Engine Management [Member] | Canada [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 9,129 | 9,731 | 23,526 | 25,738 | |||
Engine Management [Member] | Europe [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 9,375 | 6,900 | 27,460 | 17,301 | |||
Engine Management [Member] | Mexico [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 7,263 | 6,381 | 22,270 | 18,988 | |||
Engine Management [Member] | Asia [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 2,463 | 12,269 | 16,589 | 31,351 | |||
Engine Management [Member] | Other Foreign [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 1,401 | 1,231 | 4,649 | 4,993 | |||
Temperature Control [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 122,991 | 119,075 | 318,744 | 288,019 | |||
Temperature Control [Member] | Aftermarket [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 113,407 | 110,393 | 289,338 | 263,841 | |||
Temperature Control [Member] | OE/OES [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 8,799 | 8,200 | 27,387 | 22,684 | |||
Temperature Control [Member] | Export [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 785 | 482 | 2,019 | 1,494 | |||
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] | 78,211 | 75,080 | 193,551 | 178,031 | |||
Temperature Control [Member] | Other Climate Control Parts [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 44,780 | 43,995 | 125,193 | 109,988 | |||
Temperature Control [Member] | United States [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 118,228 | 114,059 | 301,831 | 274,035 | |||
Temperature Control [Member] | Canada [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 4,440 | 4,566 | 15,629 | 12,524 | |||
Temperature Control [Member] | Europe [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 32 | 114 | 146 | 331 | |||
Temperature Control [Member] | Mexico [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 114 | 100 | 303 | 281 | |||
Temperature Control [Member] | Asia [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 25 | 35 | 217 | 179 | |||
Temperature Control [Member] | Other Foreign [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1] | 152 | 201 | 618 | 669 | |||
Other [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 6,641 | 4,084 | 12,001 | 8,535 | |||
Other [Member] | Aftermarket [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 6,641 | 4,084 | 12,001 | 8,535 | |||
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] | 3,550 | 2,249 | 8,257 | 5,750 | |||
Other [Member] | Wire and Cable [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 97 | (42) | 66 | (177) | |||
Other [Member] | Compressors [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 1,747 | 1,184 | 1,939 | 1,588 | |||
Other [Member] | Other Climate Control Parts [Member] | ||||||||
Disaggregation of Revenue [Abstract] | ||||||||
Disaggregation of net sales | [1],[2] | 1,247 | 693 | 1,739 | 1,374 | |||
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] | 6,641 | 4,084 | 12,001 | 8,535 | |||
Other [Member] | Europe [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] | Asia [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 | 9 Months Ended | 253 Months Ended | ||||
---|---|---|---|---|---|---|---|
Sep. 30, 2022
USD ($)
Claim
|
Aug. 31, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
Claim
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
Claim
|
Aug. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Asbestos [Abstract] | |||||||
Accrued asbestos liabilities | $ 63,820 | $ 63,820 | $ 63,820 | $ 52,698 | |||
Asbestos [Member] | |||||||
Asbestos [Abstract] | |||||||
Pending claims, approximate number | Claim | 1,550 | 1,550 | 1,550 | ||||
Payment for settled claims and awards related damages, including interest | $ 64,000 | ||||||
Decrease in range of possible loss from lower range | $ 7,900 | ||||||
Increase in range of possible loss from upper range | $ 11,400 | ||||||
Accrued asbestos liabilities | $ 68,800 | $ 68,800 | $ 68,800 | ||||
Incremental pre-tax provision | $ 18,500 | ||||||
Asbestos [Member] | Minimum [Member] | |||||||
Asbestos [Abstract] | |||||||
Range of possible loss | $ 68,800 | ||||||
Asbestos [Member] | Maximum [Member] | |||||||
Asbestos [Abstract] | |||||||
Range of possible loss | 111,600 | ||||||
Asbestos [Member] | Discontinued Operations [Member] | |||||||
Asbestos [Abstract] | |||||||
Total operating cash outflows related to discontinued operations | $ 11,000 | $ 6,700 | |||||
Asbestos [Member] | Discontinued Operations [Member] | Minimum [Member] | |||||||
Asbestos [Abstract] | |||||||
Range of possible loss | 53,200 | ||||||
Asbestos [Member] | Discontinued Operations [Member] | Maximum [Member] | |||||||
Asbestos [Abstract] | |||||||
Range of possible loss | $ 105,700 |
Commitments and Contingencies, Warranties (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Changes in product warranties [Roll forward] | ||||
Balance, beginning of period | $ 23,766 | $ 18,213 | $ 17,463 | $ 17,663 |
Liabilities accrued for current year sales | 35,450 | 27,381 | 88,371 | 72,720 |
Settlements of warranty claims | (29,235) | (26,730) | (75,853) | (71,519) |
Balance, end of period | $ 29,981 | $ 18,864 | $ 29,981 | $ 18,864 |
Subsequent Event (Details) $ in Thousands, € in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2022
USD ($)
|
Oct. 31, 2022
EUR (€)
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Oct. 31, 2022
EUR (€)
|
|||
Subsequent Event [Abstract] | |||||||||
Business acquisition annual sales | [1] | $ 381,373 | $ 370,310 | $ 1,063,616 | $ 988,939 | ||||
Subsequent Event [Member] | Kade [Member] | |||||||||
Subsequent Event [Abstract] | |||||||||
Percentage of entity acquired | 100.00% | 100.00% | |||||||
Purchase price | $ 1,900 | € 1.9 | |||||||
Earn-out based performance obligation in 2024 and 2025 | 500 | € 0.5 | |||||||
Business acquisition annual sales | $ 6,000 | ||||||||
|
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