10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 31, 2014
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from          to          .

Commission File No. 001-13683

Remy International, Inc.

(Exact name of registrant as specified in its charter)

Delaware	35-1909253
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

600 Corporation Drive, Pendleton, IN 46064

(Address of principal executive offices, including zip code)

(765) 778-6499

(Registrant's telephone number, including area code)

Not applicable

(Former name, former address or former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x     No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x   No o

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

Large accelerated filer ¨	Accelerated filer x	Non-accelerated filer ¨	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o     No x

As of March 31, 2014, there were 31,995,332 shares of the Registrant's common stock outstanding.

Table of contents

	PART I - Financial Information	Page
Item 1.	Financial Statements	2
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	33
	PART II - Other Information
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 6.	Exhibits	35

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PART I - Financial Information

Item 1.    Financial Statements

Remy International, Inc.

Consolidated balance sheets

	March 31,			December 31,
(In thousands, except share information)	2014			2013
Assets:	(unaudited)
Current assets:
Cash and cash equivalents	$	55,827		$	114,884
Trade accounts receivable (less allowances of $1,635 and $1,583)	237,991			191,548
Other receivables	21,338			21,023
Inventories	178,685			159,340
Deferred income taxes	38,491			36,329
Prepaid expenses and other current assets	10,689			11,151
Total current assets	543,021			534,275
Property, plant and equipment	253,457			249,326
Less accumulated depreciation and amortization	(108,943		)	(103,715		)
Property, plant and equipment, net	144,514			145,611
Deferred financing costs, net of amortization	3,635			3,802
Goodwill	286,233			271,418
Intangibles, net	99,653			89,909
Other noncurrent assets	77,568			72,040
Total assets	$	1,154,624		$	1,117,055
Liabilities and Equity:
Current liabilities:
Short-term debt	$	5,265		$	2,369
Current maturities of long-term debt	3,390			3,392
Accounts payable	194,924			168,491
Accrued interest	101			92
Accrued restructuring	284			1,026
Other current liabilities and accrued expenses	116,191			110,179
Total current liabilities	320,155			285,549
Long-term debt, net of current maturities	293,075			293,835
Postretirement benefits other than pensions	1,573			1,628
Accrued pension benefits	18,591			19,103
Deferred income taxes	1,120			1,000
Other noncurrent liabilities	26,796			24,783
Equity:
Remy International, Inc. stockholders' equity:
Common stock, Par value of $0.0001; 31,995,332 shares outstanding at March 31, 2014, and 31,981,544 shares outstanding at December 31, 2013	3			3
Treasury stock, at cost; 457,107 treasury shares at March 31, 2014, and 267,924 treasury shares at December 31, 2013	(3,981		)	(1,477		)
Additional paid-in capital	323,023			320,687
Retained earnings	219,747			213,418
Accumulated other comprehensive loss	(45,478		)	(41,474		)
Total Remy International, Inc. stockholders' equity	493,314			491,157
Total liabilities and equity	$	1,154,624		$	1,117,055

See accompanying notes to unaudited condensed consolidated financial statements.

2

Remy International, Inc.

Consolidated statements of operations

(Unaudited)

	Three months ended March 31,
(In thousands, except per share amounts)	2014		2013
Net sales	$	300,294	$	281,726
Cost of goods sold	245,827		226,747
Gross profit	54,467		54,979
Selling, general, and administrative expenses	33,339		40,150
Restructuring and other charges	314		681
Operating income	20,814		14,148
Interest expense–net	5,636		6,337
Loss on extinguishment of debt and refinancing fees	—		4,256
Income before income taxes	15,178		3,555
Income tax expense	5,711		1,712
Net income	9,467		1,843
Less net income attributable to noncontrolling interest	—		563
Net income attributable to common stockholders	$	9,467	$	1,280
Basic earnings per share:
Earnings per share	$	0.30	$	0.04
Weighted average shares outstanding	31,379		31,104
Diluted earnings per share:
Earnings per share	$	0.30	$	0.04
Weighted average shares outstanding	31,550		31,261
Dividends declared per common share	$	0.10	$	0.10

See accompanying notes to unaudited condensed consolidated financial statements.

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Remy International, Inc.

Consolidated statements of comprehensive income (loss)

(Unaudited)

	Three months ended March 31,
(In thousands)	2014			2013
Net income	$	9,467		$	1,843
Other comprehensive income (loss):
Foreign currency translation adjustments	(765		)	(3,142		)
Currency forward contracts, net of tax	(1,522		)	(568		)
Commodity contracts, net of tax	(1,522		)	(1,330		)
Interest rate swap contract, net of tax	(281		)	(270		)
Employee benefit plans, net of tax	86			448
Total other comprehensive loss, net of tax	(4,004		)	(4,862		)
Comprehensive income (loss)	5,463			(3,019		)
Less: Comprehensive income attributable to noncontrolling interest	—			563
Less: Other comprehensive income attributable to noncontrolling interest- foreign currency translation	—			30
Comprehensive income (loss) attributable to Remy International, Inc.	$	5,463		$	(3,612	)

See accompanying notes to unaudited condensed consolidated financial statements.

4

Remy International, Inc.

Consolidated statements of cash flows

(Unaudited)

	Three months ended March 31,
(In thousands)	2014			2013
Cash flows from operating activities:
Net income	$	9,467		$	1,843
Adjustments to reconcile net income to cash used in operating activities:
Depreciation and amortization	8,655			8,213
Amortization of debt issuance costs	249			360
Loss on extinguishment of debt and refinancing fees	—			4,256
Stock-based compensation	1,219			1,497
Deferred income taxes	908			(4,133		)
Accrued pension and postretirement benefits, net	(434		)	(21		)
Restructuring and other charges	314			681
Cash payments for restructuring charges	(1,056		)	(2,163		)
Other	528			38
Changes in operating assets and liabilities, net of restructuring charges:
Accounts receivable	(39,451		)	(21,247		)
Inventories	(5,449		)	(12,428		)
Accounts payable	21,237			7,086
Other current assets and liabilities, net	(3,145		)	1,528
Other noncurrent assets and liabilities, net	(2,200		)	(1,841		)
Net cash used in operating activities	(9,158		)	(16,331		)
Cash flows from investing activities:
Purchases of property, plant and equipment	(6,437		)	(5,720		)
Net proceeds on sale of assets	39			28
Acquisition of USA Industries, Inc., net of cash acquired of $109	(40,391		)	—
Net cash used in investing activities	(46,789		)	(5,692		)
Cash flows from financing activities:
Change in short-term debt and revolver	2,934			1,689
Payments made on long-term debt, including capital leases	(844		)	(287,870		)
Proceeds from issuance of long-term debt	—			299,250
Dividend payments on common stock	(3,397		)	(3,197		)
Purchase of treasury stock	(2,504		)	(1,225		)
Debt issuance costs	—			(3,443		)
Other	1,142			—
Net cash (used in) provided by financing activities	(2,669		)	5,204
Effect of exchange rate changes on cash and cash equivalents	(441		)	(1,879		)
Net decrease in cash and cash equivalents	(59,057		)	(18,698		)
Cash and cash equivalents at beginning of period	114,884			111,733
Cash and cash equivalents at end of period	$	55,827		$	93,035
Supplemental information:
Noncash investing and financing activities:
Purchases of property, plant and equipment in accounts payable	$	1,634		$	2,630

See accompanying notes to unaudited condensed consolidated financial statements.

5

Remy International, Inc.

Notes to unaudited condensed consolidated financial statements

1. Description of the business

Business

Remy International, Inc. (together with its subsidiaries, “we”, “our”, “us”, “Remy” or the “Company”) is a leading global vehicle parts designer, manufacturer, remanufacturer, marketer and distributor of aftermarket and original equipment electrical components for automobiles, light-duty trucks, heavy-duty trucks and other vehicles. We sell our products worldwide primarily under the “Delco Remy”, “Remy”, “World Wide Automotive” and "USA Industries" brand names and our customers' widely recognized private label brand names. Our products include new and remanufactured, light-duty and heavy-duty starters and alternators for both original equipment and aftermarket applications, hybrid power technology, and multi-line products, such as constant velocity ("CV") axles, disc brake calipers, and steering gears. These products are principally sold or distributed to original equipment manufacturers (“OEMs”) for both original equipment manufacture and aftermarket operations, as well as to warehouse distributors and retail automotive parts chains. We sell our products principally in North America, Europe, South America and Asia.

We are one of the largest producers in the world of remanufactured starters and alternators for the aftermarket. Our remanufacturing operations obtain failed products, commonly known as cores, from our customers as returns. These cores are an essential material needed for the remanufacturing operations. We have expanded our operations to become a low cost, global manufacturer and remanufacturer with a more balanced business mix between the aftermarket and the original equipment market since we separated from General Motors Corporation (“GM”) in 1994, when we were essentially an original equipment supplier selling predominantly to GM.

In general, our business is influenced by the underlying trends in the automobile, light truck, and heavy-duty truck, construction and industrial markets. We have been able to reduce the impact from the cyclical nature of some of our business by focusing on our remanufacturing capabilities and our aftermarket business.

The automotive parts market is highly competitive. Competition is based primarily on quality of products, service, delivery, technical support and price. Most OEMs and aftermarket distributors source parts from one or two suppliers and we compete with a number of companies who supply automobile manufacturers throughout the world.

On August 14, 2012, Fidelity National Special Opportunities, Inc. (now known as Fidelity National Financial Ventures, Inc., or "FNFV") a wholly-owned subsidiary of Fidelity National Financial, Inc., or "FNF", a leading provider of title insurance, mortgage services and restaurant and diversified services, purchased additional shares of Remy International, Inc. common stock, thereby increasing its ownership position above 50%. As a result, FNF began consolidating the financial results of Remy in the third quarter of 2012. As of March 31, 2014, FNFV held a 51% ownership interest in Remy, comprised of 16,342,508 shares of our common stock. Additionally, FNF and related subsidiaries participated in our Amended and Restated Term B Loan Credit Agreement on March 5, 2013 and held $29,625,000 principal amount of our Amended and Restated Term B loan as of March 31, 2014.

As of December 31, 2013, FNFV held a 51% ownership interest in Remy, comprised of 16,342,508 shares of our common stock. Additionally, FNF and related subsidiaries held $29,700,000 principal amount of our Term B loan as of December 31, 2013.

2. Summary of significant accounting policies

Interim condensed consolidated financial statements

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information. Accordingly, certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. These statements include all adjustments (consisting of normal recurring adjustments) that our management believes are necessary to present fairly our financial position, results of operations, and cash flows. We believe that the disclosures are adequate to make the information presented not misleading when read in conjunction with our

6

audited consolidated financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2013.

Operating results for the interim periods presented in this report are not necessarily indicative of the results that may be expected for any future interim period or for the full year.

Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the year. Actual results could differ from these estimates.

Government grants

We record government grants when there is reasonable assurance that the grant will be received and we will comply with the conditions attached to the grants received. Grants related to income are recorded as an offset to the related expense in the accompanying statements of operations. Grants related to assets are recorded as deferred revenue and recognized on a straight-line basis over the useful life of the related asset. We continue to evaluate our compliance with the conditions attached to the related grants.

We received various grants and subsidies during the three month periods ended March 31, 2014 and 2013. The amounts recognized in the accompanying consolidated statements of operations as government grants were as follows:

	Three months ended March 31,
(In thousands)	2014		2013
Reduction of cost of goods sold	$	443	$	588
Reduction of selling, general, and administrative expenses	$	193	$	159

As of March 31, 2014 and December 31, 2013, we had deferred revenue of $6,089,000 and $6,283,000, respectively, related to government grants.

Trade accounts receivable and allowance for doubtful accounts

Trade accounts receivable is stated at net realizable value, which approximates fair value. Substantially all of our trade accounts receivable are due from customers in the original equipment and aftermarket automotive industries, both domestically and internationally. Trade accounts receivable includes notes receivable of $39,906,000 and $27,154,000 as of March 31, 2014 and December 31, 2013, respectively. Trade accounts receivable is reduced by an allowance for amounts that are expected to become uncollectible in the future and for disputed items. We perform periodic credit evaluations of our customers' financial condition and generally do not require collateral. We maintain allowances for doubtful customer accounts for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is developed based on several factors including customers' credit quality, historical write-off experience and any known specific issues or disputes which exist as of the balance sheet date. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

Warranty

We provide certain warranties relating to quality and performance of our products. An allowance for the estimated future cost of product warranties and other defective product returns is based on management's estimate of product failure rates and customer eligibility. If these factors differ from management's estimates, revisions to the estimated warranty liability may be required. The specific terms and conditions of the warranties vary depending upon the customer and the product sold.

7

Earnings per share

Basic earnings per share is calculated by dividing net earnings by the weighted average shares outstanding during the period. Diluted earnings per share is based on the weighted average number of shares outstanding plus the assumed issuance of common shares and related adjustment to net income attributable to common stockholders related to all potentially dilutive securities. For the three months ended March 31, 2014 and 2013, in applying the treasury stock method, equivalent shares of unvested restricted stock of 170,989 and 156,389 shares, respectively, were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 325,788 and 111,470 were excluded from the calculation of dilutive earnings per share for the three month periods ended March 31, 2014 and 2013, respectively.

Recent accounting adoptions

In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists to provide guidance on the presentation of unrecognized tax benefits. ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain limited exceptions. ASU 2013-11 is effective for annual reporting periods beginning on or after December 15, 2013 and interim periods within those annual periods with earlier adoption permitted. We adopted this guidance on January 1, 2014. The adoption of this guidance did not have an impact on our consolidated financial position, results of operations or cash flows.

3. Fair value measurements

FASB ASC Topic 820, Fair Value Measurements and Disclosures, clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based upon assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, FASB ASC Topic 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets;

Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

An asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs.

Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in FASB ASC Topic 820:

A. Market approach:    Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

B. Cost approach:    Amount that would be required to replace the service capacity of an asset (replacement cost).

C. Income approach:    Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models).

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Assets and liabilities remeasured and disclosed at fair value on a recurring basis as of March 31, 2014 and December 31, 2013, are set forth in the table below:

	As of March 31, 2014							As of December 31, 2013
(In thousands)	Asset/ (liability)			Level 2			Valuation technique	Asset/ (liability)			Level 2			Valuation technique
Interest rate swap contracts	$	(413	)	$	(413	)	C	$	727		$	727		C
Foreign exchange contracts	1,573			1,573			C	3,417			3,417			C
Commodity contracts	(3,858		)	(3,858		)	C	(1,333		)	(1,333		)	C

We calculate the fair value of our interest rate swap contracts, commodity contracts and foreign currency contracts using quoted interest rate curves, quoted commodity forward rates and quoted currency forward rates. For contracts which, when aggregated by counterparty, are in a liability position, the discount rates are adjusted by the credit spread that market participants would apply if buying these contracts from our counterparties.

In addition to items that are measured at fair value on a recurring basis, we also have assets and liabilities that are measured at fair value on a nonrecurring basis. As these assets and liabilities are not measured at fair value on a recurring basis, they are not included in the tables above. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets (see Note 7) and certain assets acquired in business acquisitions (see Note 20). We have determined that the fair value measurements included in each of these assets and liabilities rely primarily on our assumptions as observable inputs are not available. As such, we have determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy.

4. Financial instruments

Foreign currency risk

We manufacture and sell our products primarily in North America, South America, Asia, Europe and Africa. As a result our financial results could be significantly affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets in which we manufacture and sell our products. We generally try to use natural hedges within our foreign currency activities, including the matching of revenues and costs, to minimize foreign currency risk. Where natural hedges are not in place, we consider managing certain aspects of our foreign currency activities through the use of foreign exchange contracts. We primarily utilize forward exchange contracts with maturities generally within eighteen months to hedge against currency rate fluctuations, and are designated as hedges.

As of March 31, 2014 and December 31, 2013, we had the following outstanding foreign currency contracts that were entered into to hedge forecasted purchases and revenues, respectively:

(In thousands)	Currency denomination
	March 31,		December 31,
Foreign currency contract	2014		2013
South Korean Won Forward	$	77,934	$	74,368
Mexican Peso Contracts	$	73,283	$	73,520
Brazilian Real Forward	$	20,463	$	11,427
Hungarian Forint Forward	€	13,678	€	14,416
Great Britain Pound Forward	£	2,805	£	3,735

Accumulated unrealized net gains of $998,000 and $2,520,000 were recorded in accumulated other comprehensive income (loss) (AOCI) as of March 31, 2014 and December 31, 2013, respectively. As of March 31, 2014, gains of $961,000 are expected to be reclassified to the consolidated statement of operations within the next twelve months. Any ineffectiveness during the three months ended March 31, 2014 and 2013, respectively, was immaterial.

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Interest rate risk

On March 27, 2013, we terminated our undesignated Term B Loan interest rate swap and transferred the value into a new undesignated interest rate swap agreement of $72,000,000 of the outstanding principal loan balance under which we swap a variable LIBOR rate with a floor of 1.25% to a fixed rate of 4.045% with an effective date of December 30, 2016 and expiration date of December 31, 2019. The notional value of this interest rate swap is $72,000,000, and is reduced by $187,500 quarterly from the effective date. Due to the significant value of the terminated swaps which were transferred into this new swap, this interest rate swap is an undesignated hedge and changes in the fair value are recorded as interest expense-net in the accompanying consolidated statements of operations.

On March 27, 2013, we also entered into a designated interest rate swap agreement for $72,000,000 of the outstanding principal balance of our long term debt. Under the terms of the new interest rate swap agreement, we swap a variable LIBOR rate with a floor of 1.25% to a fixed rate of 2.75% with an effective date of December 30, 2016 and expiration date of December 31, 2019. The notional value of this interest rate swap is $72,000,000, and is reduced by $187,500 quarterly from the effective date. This interest rate swap has been designated as a cash flow hedging instrument. Accumulated unrealized gains of $992,000, and $1,455,000, excluding the tax effect, were recorded in accumulated other comprehensive income (loss) (AOCI) as of March 31, 2014, and December 31, 2013, respectively. As of March 31, 2014, no gains are expected to be reclassified to the consolidated statement of operations within the next twelve months. Any ineffectiveness during the three months ended March 31, 2014 and 2013 was immaterial.

The interest rate swaps reduce our overall interest rate risk. However, due to the remaining outstanding borrowings on the Amended and Restated Term B Loan and other borrowing facilities that continue to have variable interest rates, management believes that interest rate risk to us could be material if there are significant adverse changes in interest rates.

Commodity price risk

Our production processes are dependent upon the supply of certain components whose raw materials are exposed to price fluctuations on the open market. The primary purpose of our commodity price forward contract activity is to manage the volatility associated with forecasted purchases. We monitor our commodity price risk exposures regularly to maximize the overall effectiveness of our commodity forward contracts. The principal raw material hedged is copper. Forward contracts are used to mitigate commodity price risk associated with raw materials, generally related to purchases forecast for up to twenty-four months in the future. Additionally, we purchase certain commodities during the normal course of business which result in physical delivery and are excluded from hedge accounting.

We had twenty-nine commodity price hedge contracts outstanding at March 31, 2014, and thirty-two commodity price hedge contracts outstanding at December 31, 2013, with combined notional quantities of 5,660 and 6,368 metric tons of copper, respectively. These contracts mature within the next eighteen months. These contracts were designated as cash flow hedging instruments. Accumulated unrealized losses of $3,818,000 and $1,319,000, excluding the tax effect, were recorded in AOCI as of March 31, 2014 and December 31, 2013, respectively. As of March 31, 2014, losses of $3,363,000 are expected to be reclassified to the accompanying consolidated statement of operations within the next 12 months. Hedge ineffectiveness during the three months ended March 31, 2014, and 2013, was immaterial.

Other

We present our derivative positions and any related material collateral under master netting agreements on a gross basis. We have entered into International Swaps and Derivatives Association agreements with each of its significant derivative counterparties. These agreements provide bilateral netting and offsetting of accounts that are in a liability position with those that are in an asset position. These agreements do not require us to maintain a minimum credit rating in order to be in compliance with the terms of the agreements and do not contain any margin call provisions or collateral requirements that could be triggered by derivative instruments in a net liability position. As of March 31, 2014, we have not posted any collateral to support derivatives in a liability position.

For derivatives designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness. Unrealized gains and losses associated with ineffective hedges, determined using the change in fair value method, are recognized in the accompanying consolidated statements of operations. Derivative gains and losses included in AOCI for effective hedges are reclassified into the accompanying consolidated statements of operations upon recognition of the hedged transaction.

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Any derivative instrument designated initially, but no longer effective as a hedge, or initially not effective as a hedge, is recorded at fair value and the related gains and losses are recognized in the accompanying consolidated statements of operations. Our undesignated hedges are primarily our interest rate swaps whose fair value at inception of the instrument due to the rollover of existing interest rate swaps resulted in ineffectiveness. The following table discloses the fair values and balance sheet locations of our derivative instruments:

	Asset derivatives					Liability derivatives
(In thousands)	Balance sheet location	March 31, 2014		December 31, 2013		Balance sheet location	March 31, 2014		December 31, 2013
Derivatives designated as hedging instruments:
Commodity contracts	Prepaid expenses and other current assets	$	—	$	257	Other current liabilities and accrued expenses	$	3,396	$	—
Commodity contracts	Other noncurrent assets	51		195		Other noncurrent liabilities	513		1,785
Foreign currency contracts	Prepaid expenses and other current assets	2,176		3,630		Other current liabilities and accrued expenses	481		141
Foreign currency contracts	Other noncurrent assets	96		108		Other noncurrent liabilities	218		180
Interest rate swap contracts	Other noncurrent assets	992		1,455		Other noncurrent liabilities	—		—
Total derivatives designated as hedging instruments		$	3,315	$	5,645		$	4,608	$	2,106
Derivatives not designated as hedging instruments:
Interest rate swap contracts	Other noncurrent assets	$	—	$	—	Other noncurrent liabilities	$	1,405	$	728
Total derivatives not designated as hedging instruments		$	—	$	—		$	1,405	$	728

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The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended March 31, 2014 (in thousands):

Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in OCI on derivatives (effective portion)			Location of gain (loss) reclassified from AOCI into income (effective portion)	Amount of gain (loss) reclassified from AOCI into income (effective portion)			Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Commodity contracts	$	(3,447	)	Cost of goods sold	$	(948	)	Cost of goods sold	$	(37	)
Foreign currency contracts	(1,124		)	Cost of goods sold	897			Cost of goods sold	—
Interest rate swap contracts	(463		)	Interest expense–net	—			Interest expense–net	—
	$	(5,034	)		$	(51	)		$	(37	)

Derivatives not designated as hedging instruments	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
Interest rate swap	Interest expense–net	$	(677	)

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended March 31, 2013 (in thousands):

Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in OCI on derivatives (effective portion)			Location of gain (loss) reclassified from AOCI into income (effective portion)	Amount of gain (loss) reclassified from AOCI into income (effective portion)		Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Commodity contracts	$	(2,102	)	Cost of goods sold	$	108	Cost of goods sold	$	(29	)
Foreign currency contracts	808			Cost of goods sold	1,334		Cost of goods sold	—
Interest rate swap contracts	(270		)	Interest expense–net	—		Interest expense–net	—
	$	(1,564	)		$	1,442		$	(29	)

Derivatives not designated as hedging instruments	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
Interest rate swap contracts	Interest expense–net	$	(227	)

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Concentrations of credit risk

Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of accounts receivable and cash investments. We require placement of cash in financial institutions evaluated as highly creditworthy. Our customer base includes global light and commercial vehicle manufacturers and a large number of retailers, distributors and installers of automotive aftermarket parts. Our credit evaluation process and the geographical dispersion of sales transactions help to mitigate credit risk concentration.

Accounts receivable factoring arrangements

We have entered into factoring agreements with various domestic and European financial institutions to sell our accounts receivable under nonrecourse agreements. These are treated as a sale. The transactions are accounted for as a reduction in accounts receivable as the agreements transfer effective control over and risk related to the receivables to the buyers. We do not service any domestic accounts after the factoring has occurred. We do not have any servicing assets or liabilities. We utilize factoring arrangements as an integral part of financing for us. The cost of factoring such accounts receivable is reflected in the accompanying consolidated statements of operations as interest expense-net with other financing costs. The cost of factoring such accounts receivable for the three months ended March 31, 2014 and 2013, was $1,254,000, and $1,505,000, respectively. Gross amounts factored under these facilities as of March 31, 2014 and December 31, 2013, were $237,786,000, and $244,940,000, respectively. Any change in the availability of these factoring arrangements could have a material adverse effect on our financial condition.

5.Inventories

Net inventories consisted of the following:

	March 31,		December 31,
(In thousands)	2014		2013
Raw materials	$	48,309	$	42,322
Core inventory	37,301		36,581
Work-in-process	10,028		8,398
Finished goods	83,047		72,039
	$	178,685	$	159,340

Raw materials also include materials consumed in the manufacturing and remanufacturing process, but not directly incorporated into the finished products.

6. Property, plant and equipment

Depreciation and amortization expense of property, plant, and equipment for the three months ended March 31, 2014 and 2013 was $5,394,000 and $4,632,000, respectively.

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7. Goodwill and other intangible assets

The following table represents the carrying value of other intangible assets:

	As of March 31, 2014						As of December 31, 2013
(In thousands)	Carrying value		Accumulated amortization		Net		Carrying value		Accumulated amortization		Net
Definite-life intangibles:
Intellectual property	$	17,281	$	4,788	$	12,493	$	16,810	$	4,583	$	12,227
Customer relationships	46,500		18,702		27,798		35,500		17,746		17,754
Customer contract	97,997		88,117		9,880		97,789		86,061		11,728
Lease intangible	328		46		282		—		—		—
Total	162,106		111,653		50,453		150,099		108,390		41,709
Indefinite-life intangibles:
Trade names	49,200		—		49,200		48,200		—		48,200
Intangible assets, net	$	211,306	$	111,653	$	99,653	$	198,299	$	108,390	$	89,909
Goodwill	$	286,233	$	—	$	286,233	$	271,418	$	—	$	271,418

Definite-lived intangible assets are being amortized to reflect the pattern of economic benefit consumed.

We perform impairment testing annually or more frequently when events or circumstances indicate that the carrying amount of the above intangibles may be impaired.

On January 13, 2014, we acquired substantially all of the assets of United Starters and Alternators Industries, Inc. ("USA Industries") pursuant to the terms and conditions of the Asset Purchase Agreement. See Note 20 for further information. As a result of the acquisition, we assigned preliminary values to all assets and liabilities acquired, including the customer relationships intangible of $11,000,000 with a useful life of 10 years, $1,000,000 to value the USA Industries trade name with an indefinite life, $328,000 to out-of-market lease intangibles recognized over the remaining term of the lease agreements, and $14,815,000 to goodwill in the purchase price allocation during the three months ended March 31, 2014. 

8. Other noncurrent assets

Other noncurrent assets primarily consisted of core return rights of $41,103,000 and noncurrent deferred tax assets of $20,636,000 as of March 31, 2014. Other noncurrent assets primarily consisted of core return rights of $37,250,000 and noncurrent deferred tax assets of $22,113,000 as of December 31, 2013.

9. Other current liabilities and accrued expenses

Other current liabilities and accrued expenses consisted of the following:

	March 31,		December 31,
(In thousands)	2014		2013
Accrued warranty	$	28,601	$	27,083
Accrued wages and benefits	17,448		20,016
Current portion of customer obligations	4,681		4,560
Rebates, stocklifts, discounts and returns	20,572		18,922
Current deferred revenue	2,124		2,270
Other	42,765		37,328
	$	116,191	$	110,179

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Changes to our current and noncurrent accrued warranty were as follows:

	Three months ended March 31,
(In thousands)	2014			2013
Balance at beginning of period	$	30,781		$	27,194
Provision for warranty	12,170			9,317
Payments and charges against the accrual	(11,825		)	(9,514		)
Increased warranty accruals due to business acquisitions (Note 20)	1,363			—
Balance at end of period	$	32,489		$	26,997

10. Other noncurrent liabilities

Other noncurrent liabilities consisted of the following:

	March 31,		December 31,
(In thousands)	2014		2013
Noncurrent deferred revenue	4,539		4,755
Other	22,257		20,028
	$	26,796	$	24,783

11. Restructuring and other charges

Total restructuring and other charges of $314,000 were recorded for the three months ended March 31, 2014. These charges consisted of $228,000 of employee termination benefits and $86,000 of other exit costs. The charges were primarily related to the closure of our Mezokovesd, Hungary plant and restructuring actions in our Mexico operations.

Total restructuring and other charges of $681,000 were recorded during the three months ended March 31, 2013. These charges consisted of $370,000 of employee termination benefits, and $311,000 of other exit costs. The severance charges primarily related to continued costs related to the closure of our Mezokovesd, Hungary plant and reductions in force in our Edmond, Oklahoma facility.

The following table summarizes the activity in our accrual for restructuring and other charges for the three month period ended March 31, (in thousands):

2014	Termination benefits			Exit costs			Total
Accrual at December 31, 2013	$	981		$	45		$	1,026
Provision	228			86			314
Payments	(950		)	(106		)	(1,056		)
Accrued at March 31, 2014	$	259		$	25		$	284

2013	Termination benefits			Exit costs			Total
Accrual at December 31, 2012	$	3,573		$	106		$	3,679
Provision	370			311			681
Payments	(1,832		)	(331		)	(2,163		)
Accrued at March 31, 2013	$	2,111		$	86		$	2,197

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Significant components of restructuring and other charges were as follows (in thousands):

	Total expected costs		Expense incurred in						Estimated future expense
			Three months ended March 31, 2014		Twelve months ended December 31, 2013		Twelve months ended December 31, 2012
2014 Activities
Severance	$	217	$	217	$	—	$	—	$	—
Exit costs	2		2		—		—		—
	$	219	$	219	$	—	$	—	$	—
2013 Activities
Severance	$	1,756	$	—	$	1,756	$	—	$	—
Exit costs	692		—		692		—		—
	$	2,448	$	—	$	2,448	$	—	$	—
2012 Activities
Severance	$	4,544	$	11	$	795	$	3,738	$	—
Exit costs	1,496		84		823		410		179
Other charges	1,687		—		—		1,687		—
	$	7,727	$	95	$	1,618	$	5,835	$	179

12. Debt

Borrowings under long-term debt arrangements, net of discounts, consisted of the following:

	March 31,			December 31,
(In thousands)	2014			2013
Asset-Based Revolving Credit Facility, First-Amendment-Maturity date of September 5, 2018	$	—		$	—
Amended and Restated Term B Loan-Maturity date of March 5, 2020	294,333			295,001
Total Senior Credit Facility and Notes	294,333			295,001
Capital leases	2,132			2,226
Less current maturities	(3,390		)	(3,392		)
Long-term debt less current maturities	$	293,075		$	293,835

On March 5, 2013, we entered into a First Amendment to our existing ABL Revolver Credit Agreement ("ABL First Amendment") to extend the maturity date of the Asset-Based Revolving Credit Facility ("ABL") from December 17, 2015 to September 5, 2018 and reduce the borrowing rate. The ABL First Amendment bears an interest rate to a defined Base Rate plus 0.50%-1.00% per year or, at our election, at an applicable LIBOR Rate plus 1.50%-2.00% per year and is paid monthly. The ABL First Amendment maintains the current availability at $95,000,000, but may be increased, under certain circumstances, by $20,000,000. The ABL First Amendment is secured by substantially all domestic accounts receivable and inventory. At March 31, 2014, the ABL First Amendment balance was zero. Based upon the collateral supporting the ABL First Amendment, the amount borrowed, and the outstanding letters of credit of $14,035,000, there was additional availability for borrowing of $73,460,000 on March 31, 2014. We will incur an unused commitment fee of 0.375% on the unused amount of commitments under the ABL First Amendment.

On March 5, 2013, we entered into a $300,000,000 Amended and Restated Term B Loan Credit Agreement ("Amended and Restated Term B Loan") to refinance the existing $286,978,000 Term B Loan, extend the maturity from December 17, 2016 to March 5, 2020, and reduce the borrowing rate. The Amended and Restated Term B Loan bears an interest rate consisting of LIBOR (subject to a floor of 1.25%) plus 3.00% per year with an original issue discount of $750,000. The Amended and Restated Term B Loan also contains an option to increase the borrowing provided certain conditions are satisfied, including maintaining a maximum leverage ratio. The Amended and Restated Term B Loan is secured by a first priority lien on the stock of our subsidiaries and substantially all domestic assets other than accounts receivable and inventory pledged to the ABL First Amendment. Principal payments in the amount of $750,000 are due at the end

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of each calendar quarter with termination and final payment no later than March 5, 2020. As a result of the refinancing of our Term B Loan syndication, we recorded a loss on extinguishment of debt and refinancing fees of $4,256,000 during the quarter ended March 31, 2013. The Amended and Restated Term B Loan is subject to an excess cash calculation which may require the payment of additional principal on an annual basis. At March 31, 2014, the average borrowing rate, including the impact of the interest rate swaps, was 4.25%.

As of March 31, 2014, the estimated fair value of our Amended and Restated Term B Loan was $298,102,000. The estimated fair value was $3,769,000 more than the carrying value. As of December 31, 2013, the estimated fair values of our Term B Loan was $300,157,000. The estimated fair value was $5,156,000 more than the carrying value. The Level 2 fair market values are based on established market prices as of March 31, 2014 and December 31, 2013. The fair value estimates do not necessarily reflect the values we could realize in the current markets. Because of their short-term nature or variable interest rate, we believe the carrying value for short-term debt and the revolving credit agreement closely approximates their fair value.

All of our credit agreements contain various covenants and representations that are customary for transactions of this nature. We were in compliance with all covenants as of March 31, 2014. The credit agreements contain various restrictive covenants, which include, among other things: (i) a maximum leverage ratio; (ii) a minimum interest coverage ratio; (iii) mandatory prepayments upon certain asset sales and debt issuances; and (iv) limitations on the payment of dividends in excess of a specified amount. The term loan also includes events of default customary for a facility of this type, including a cross-default provision under which the lenders may declare the loan in default if we (i) fail to make a payment when due under any debt having a principal amount greater than $5.0 million or (ii) breach any other covenant in any such debt as a result of which the holders of such debt are permitted to accelerate its maturity.

Short-term debt

We have revolving credit facilities with three Korean banks with a total facility amount of approximately $12,163,000 of which $2,339,000 was borrowed at average interest rates of 3.46% at March 31, 2014. In Hungary, there are two revolving credit facilities with two separate banks for a total credit facility of $4,312,000 of which nothing is borrowed at March 31, 2014. During the quarter ended March 31, 2014, we entered into a revolving credit facility in China with one bank for a total credit facility of $10,000,000 of which $2,926,000 was borrowed at an average interest rate of 5.6% at March 31, 2014.

Capital leases

Capital leases have been capitalized using nominal interest rates ranging from 4.0% to 15.1% as determined by the dates we entered into the leases. We had assets under capital leases of approximately $2,954,000 at March 31, 2014 and approximately $3,050,000 at December 31, 2013, net of accumulated amortization.

13. Stockholders' equity

Common stock

On December 12, 2012, we amended our Amended and Restated Certificate of Incorporation. The amendment authorizes the Company to issue 280,000,000 shares, consisting of 240,000,000 shares of common stock, par value $0.0001 per share, and 40,000,000 shares of preferred stock, par value $0.0001 per share. As of March 31, 2014, there were 31,995,332 common stock shares outstanding and no preferred stock shares outstanding.

The holders of common stock are entitled to one vote on all matters properly submitted on which the common stockholders are entitled to vote.

Treasury stock

During the first quarter of 2014, we withheld 114,291 shares at cost, or $2,504,000, to satisfy tax obligations for vesting of restricted stock shares granted to our employees under the Remy International, Inc. Omnibus Incentive Plan, or "Omnibus Incentive Plan". In addition,74,892 shares were forfeited and returned to treasury stock during the first quarter of 2014 for no value pursuant to the Omnibus Incentive Plan.

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During the first quarter of 2013, we withheld 65,781 shares at cost, or $1,225,000, to satisfy tax obligations for vesting of restricted stock shares granted to our employees under the Omnibus Incentive Plan. In addition, 35,104 shares were forfeited and returned to treasury stock during the first quarter of 2013 for no value pursuant to the Omnibus Incentive Plan.

Dividend payments

On January 30, 2014, our Board of Directors declared a quarterly cash dividend of ten cents ($0.10) per share payable on February 28, 2014 to stockholders of record as of the close of business on February 14, 2014. Cash dividends paid during the first quarter of 2014 were $3,397,000, which also included accrued cash dividends paid on restricted stock vestings.  As of March 31, 2014, a dividend payable of $166,000 was recorded for unvested restricted stock and is payable upon vesting. 

On April 30, 2014, our Board of Directors declared a quarterly cash dividend of ten cents ($0.10) per share, payable on May 30, 2014, to stockholders of record as of May 16, 2014.

14. Reclassifications out of accumulated other comprehensive income (loss)

The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three months ended March 31, 2014 (in thousands):

	Foreign currency translation adjustment			Unrealized gains (losses) on currency hedges			Unrealized gains (losses) on commodity hedges			Interest rate swaps			Employee benefit plan adjustment			Accumulated other comprehensive income (loss)
Balances at December 31, 2013	$	(18,105	)	$	2,520		$	(6,332	)	$	(688	)	$	(18,869	)	$	(41,474	)
Other comprehensive income (loss) before reclassifications	(765		)	(886		)	(2,122		)	(281		)	(11		)	(4,065		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			(636		)	600			—			97			61
Balances at March 31, 2014	$	(18,870	)	$	998		$	(7,854	)	$	(969	)	$	(18,783	)	$	(45,478	)

The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three months ended March 31, 2013 (in thousands):

	Foreign currency translation adjustment			Unrealized gains (losses) on currency hedges			Unrealized gains (losses) on commodity hedges			Interest rate swaps			Employee benefit plan adjustment			Accumulated other comprehensive income (loss)
Balances at December 31, 2012	$	(19,860	)	$	3,426		$	(6,316	)	$	(1,574	)	$	(25,983	)	$	(50,307	)
Other comprehensive income (loss) before reclassifications	(3,172		)	513			(1,282		)	(270		)	102			(4,109		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			(1,081		)	(48		)	—			346			(783		)
Balances at March 31, 2013	$	(23,032	)	$	2,858		$	(7,646	)	$	(1,844	)	$	(25,535	)	$	(55,199	)

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The following table discloses the effect of reclassifications of accumulated other comprehensive income on the accompanying consolidated statement of operations (in thousands):

Details about Accumulated Other Comprehensive Income (Loss) Components	Three months ended March 31,						Affected Line Item in the Statement Where Net Income is Presented
	2014			2013
Gains (losses) on cash flow hedges:
Foreign currency contracts	$	897		$	1,334		Cost of goods sold
Commodity contracts	(985		)	79			Cost of goods sold
	(88		)	1,413			Total before tax
	124			(284		)	Tax benefit (expense)
	$	36		$	1,129		Net of tax
Amortization of employee benefit plan costs:
Prior service costs	$	454		$	454		Selling, general and administrative expenses
Net actuarial loss	(614		)	(800		)	Selling, general and administrative expenses
	(160		)	(346		)	Total before tax
	63			—			Tax benefit (expense)
	$	(97	)	$	(346	)	Net of tax
Total reclassifications for the period	$	(61	)	$	783		Net of tax

15. Income taxes

We compute on a quarterly basis an estimated annual effective tax rate considering ordinary income and related income tax expense. Ordinary income refers to income (loss) before income tax expense excluding significant, unusual, or infrequently occurring items. The tax effect of an unusual or infrequently occurring item is recorded in the interim period in which it occurs. To the extent we cannot reliably estimate annual projected taxes for a taxing jurisdiction, taxes on ordinary income for such a jurisdiction are reported in the period in which they are incurred. Other items included in income tax expense in the periods in which they occur include the cumulative effect of changes in tax laws or rates, foreign exchange gains and losses, adjustments to uncertain tax positions, and adjustments to our valuation allowance due to changes in judgment regarding the realizability of deferred tax assets in future years.

Income tax expense of $5,711,000 for the three months ended March 31, 2014, consisted of U.S. federal income tax expense of $3,587,000, domestic state and local income tax expense of $14,000, and tax expense in various foreign jurisdictions of $2,110,000. Income tax expense of $1,712,000 for the three months ended March 31, 2013, consisted of U.S. federal tax expense of $147,000, domestic state and local tax expense of $8,000, and tax expense in various foreign jurisdictions of $1,557,000.

We have total unrecognized tax benefits of $12,147,000 and $11,456,000 that have been recorded as liabilities as of March 31, 2014 and December 31, 2013, respectively, and we are uncertain as to if or when such amounts may be settled. During the three months ended March 31, 2014 and 2013, we recorded uncertain tax positions of $691,000 and $315,000, respectively.

The effective income tax rate for the three months ended March 31, 2014, differs from the U.S. federal income tax rate primarily due to effect of foreign taxable income. The effective income tax rate for the three months ended March 31, 2013, differs from the U.S. federal income tax rate primarily due to the effect of foreign taxable income, valuation allowance utilization in certain foreign jurisdictions, and tax credits against the U.S. net income reported in the financial statements.

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16. Employee benefit plans

The components of expense for the plans were as follows (in thousands):

Pension benefits:
	Three months ended March 31,
Components of expense	2014			2013
Service costs	$	275		$	—
Interest costs	754			642
Expected return on plan assets	(765		)	(612		)
Recognized net actuarial loss	164			344
Net periodic pension cost	$	428		$	374
Postretirement health care and life insurance plans:
	Three months ended March 31,
Components of expense	2014			2013
Interest costs	$	20		$	19
Amortization of prior service cost	(454		)	(454		)
Recognized net actuarial loss	450			456
Net periodic cost	$	16		$	21

Cash flows - employee benefit plans

We contributed $828,000 and $348,000 to our pension plans during the three months ended March 31, 2014 and 2013, respectively. We expect to contribute a total of $3,297,000 to our U.S. pension plans and $1,486,000 to our International pension plans in 2014. The postretirement health care plan is funded as benefits are paid.

17. Stock-based compensation

On February 14, 2013, we filed a Form S-8 to register 5,500,000 shares which may be issued pursuant to the Omnibus Incentive Plan. The Omnibus Incentive Plan became effective on October 27, 2010, was amended on March 24, 2011, and permits our Compensation Committee to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other cash or share based awards to our employees and non-employee directors. As of March 31, 2014, there were 3,077,909shares available to be issued under the Omnibus Incentive Plan.

During the three months ended March 31, 2014, executive officers and other key employees received restricted stock awards of 178,279 common shares with a weighted average grant date value of $21.99, based on the closing price of our common stock on the respective grant date as reported on the NASDAQ Stock Market. These awards are 50% time-based and 50% performance-based. The time-based restricted shares vest equally over a three-year period and one-third of the performance-based restricted shares will be available to vest for each of the calendar years 2014, 2015 and 2016 based on a target operating income for each of the years. Additionally, executive officers and other key employees were granted 237,640 stock option awards which vest equally over a three-year period with a term of seven years and a weighted average exercise price of $21.99.

Also during the three months ended March 31, 2014, our Board of Directors received restricted stock awards of 27,072 common shares and stock option awards of 36,083 common shares. One-half of the restricted stock shares and stock options granted to the Board of Directors vest at each anniversary of the grant date. Restricted stock granted to the Board of Directors were valued at $21.98, which was the closing price of our common stock on the grant date as reported on the NASDAQ Stock Market. Stock options granted to the Board of Directors have a term of seven years and an exercise price of $21.98.

We estimated the grant date fair value of all stock options granted during the three months ended March 31, 2014 using the Black-Scholes valuation model. The weighted average valuation per share was $7.07 based on the following

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assumptions: Risk-free interest rate: 1.53%, Dividend Yield: 1.82%, Expected Volatility: 43.20% and Expected Term: 4.5 years.

Shares issued upon exercise of stock options were 2,397 during the three months ended March 31, 2014. There were no stock option exercises during the three months ended March 31, 2013.

Noncash compensation expense related to all types of awards was recognized for the three months endedMarch 31, as follows:

	Three months ended March 31,
(In thousands)	2014		2013
Stock-based compensation expense	$	1,219	$	1,497

If factors change and we employ different assumptions, stock-based compensation expense may differ significantly from what we have recorded in the past. If there are any modifications or cancellations of the underlying unvested securities, we may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that we grant additional equity awards to employees or we assume unvested equity awards in connection with acquisitions.

18. Business segment and geographical information

We manage our business and operate in a single reportable business segment.

We are a multi-national corporation with operations in many countries, including the United States, Canada, Mexico, Brazil, China, Hungary, South Korea, United Kingdom, Belgium and Tunisia. As a result, our financial results could be significantly affected by factors such as changes in foreign currency exchange rates or weak economic conditions in the foreign markets where we distribute our products. Our operating results are exposed to changes in exchange rates between the U.S. dollar and non-U.S. currencies. Exposure to variability in foreign currency exchange rates is managed primarily through the use of natural hedges, whereby funding obligations and assets are both denominated in the local currency, and through selective currency hedges. From time to time, we enter into exchange agreements to manage our exposure arising from fluctuating exchange rates related to specific transactions. Refer to Note 4. Sales are attributed to geographic locations based on the point of sale.

Information about our net sales by region was as follows:

	Three months ended March 31,
(In thousands)	2014		2013
Net sales to external customers:
United States	$	198,907	$	190,022
Europe	23,075		24,460
Other Americas	10,880		14,159
Asia	67,432		53,085
Total net sales	$	300,294	$	281,726

19. Other commitments and contingencies

We are party to various legal actions and administrative proceedings and subject to various claims arising in the ordinary course of business, including those relating to commercial transactions, product liability, safety, health, taxes, environmental and other matters. We review these matters on an ongoing basis and follow the provisions of FASB ASC Topic 450, Contingencies, when making accrual and disclosure decisions. For legal proceedings where it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and which represents our best estimate has been recorded in our accompanying consolidated financial statements. We believe

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that the ultimate liability, if any, in excess of amounts already provided for in our accompanying consolidated financial statements on the disposition of these matters and the matters discussed below would not have a material adverse effect on our financial position.

Remy Componentes S. de R.L. de C.V. vs. Corporativo Industrial y Empresarial Lorva, S.A. de C.V. ("Lorva")

In December 2012, Lorva, a former vendor, filed a judicial claim against Remy in the federal court in San Luis Potosi, Mexico requesting the rescission of two alleged operational service contracts. Remy filed a timely response in January 2013. The collection of evidence and witness testimony concluded in the civil case, and the parties filed their written closing argument briefs in the fourth quarter of 2013. In March 2014, the first instance sentence was issued by the court determining Lorva has the right to rescind both contracts and collect the benefit sought in the amount of approximately $17,380,000 for liquidated damages and outstanding invoices. In April 2014, we filed an appeal to this ruling in the Fourth District Court in San Luis Potosi, Mexico. We believe it is probable that we should prevail on final appeal based on legal arguments and the facts of this case. This appeal and any necessary final appeal is expected to take approximately twelve to eighteen months to complete. As of March 31, 2014, we have not accrued for the amount of this judgment, but we continue to maintain an immaterial accrual related to this matter.

Remy, Inc. vs. Tecnomatic S.p.A.

In September 2008, Remy International, Inc. filed suit against Tecnomatic in the U.S. District Court, Southern District of Indiana, Indianapolis Division (Civil Action No.: 1:08-CV-1227-SEB-JMS), titled Remy, Inc. vs. Tecnomatic S.p.A., for breach of contract, among other claims, with respect to a machine Tecnomatic sold to us to build stators. On December 9, 2008, Tecnomatic filed a counterclaim in the amount of $111,000.

In March 2011, Tecnomatic filed a lawsuit in U.S. District Court, N. D. of Illinois, against Remy International, Inc., its Mexican subsidiaries and two other entities alleging breach of contract and the misappropriation of trade secrets, and requested damages of $110,000,000. In June 2011, the Illinois Court granted our motion to transfer the case to U.S. District Court, Southern District of Indiana, Indianapolis Division, and the two pending actions were consolidated.

After multiple motions by the respective parties and rulings by the Court on the pleadings, certain original claims by Tecnomatic have been dismissed or narrowed. The Court has permitted Tecnomatic to amend its Complaint to add other new claims. Most recently, Tecnomatic was granted leave by the Court to file a Third Amended Complaint which was filed by Tecnomatic in January 2014. We moved to dismiss that complaint in part in February 2014, and the motion is currently pending with the Court. Tecnomatic filed an opposition to our pending motion to dismiss the Third Amended Complaint in February 2014. No trial date has been set, but it is anticipated to commence during the second quarter of 2015. Due to the current stage of this case, it is not possible to make a meaningful estimate of the amount or range of loss to the Company, if any, that could result from this case at this time. As such, we have no amounts accrued as of March 31, 2014 for this case. We intend to vigorously defend this case.

20. Acquisition

Acquisition of United Starters and Alternators Industries, Inc.

On January 13, 2014, we acquired substantially all of the assets of USA Industries pursuant to the terms and conditions of the Asset Purchase Agreement. USA Industries is a leading North American distributor of premium quality remanufactured and new alternators, starters, constant velocity (CV) axles and disc brake calipers for the light-duty aftermarket. We believe the USA Industries acquisition provides us with a strong platform to leverage our distribution channels with an enhanced portfolio and expand beyond our core rotating electric products. In connection with the closing of the transaction, the assets were placed in Remy USA Industries, L.L.C., a wholly-owned subsidiary of the Company. The results of operations of USA Industries have been included in our consolidated results of operations since the acquisition date.

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Preliminary purchase price was $40,609,000, consisting of $38,500,000 in cash, $2,000,000 cash held in escrow, and payables to the former owner of $109,000. The initial purchase price allocation based on their fair values as of the acquisition date was as follows (in thousands):

Cash	$	109
Trade accounts receivable	7,811
Inventories	13,834
Prepaid expenses and other current assets	43
Property, plant and equipment	462
Goodwill	14,815
Intangible assets	12,328
Other noncurrent assets	5,779
Total assets acquired	$	55,181
Accounts payable	$	8,083
Other current liabilities and accrued expenses	6,097
Other noncurrent liabilities	392
Total liabilities acquired	$	14,572
Net assets acquired	$	40,609

Goodwill of $14,815,000, which is deductible for tax purposes, has been recorded based on the initial amount of the preliminary purchase price that exceeds the fair value of the net assets acquired.

For the three months ended March 31, 2014, we recognized a finished goods inventory step-up of $2,509,000, customer relationships amortization of $237,000 and lease intangible amortization of $46,000, all included in cost of goods sold in the accompanying consolidated statement of operations.

21. Executive officer separation

On January 31, 2013, we entered into a Transition, Noncompetition and Release Agreement (the "Agreement") with John H. Weber, our former President and Chief Executive Officer, effective February 28, 2013. Pursuant to the terms of the Agreement, Mr. Weber received a lump sum cash payment of $7,000,000 (a decrease to diluted earnings per share of $0.14, net of tax), which is included in selling, general and administrative expenses in the accompanying unaudited consolidated statement of operations for the three months ended March 31, 2013.

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

The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding our expectations, hopes, intentions or strategies regarding the future. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements. It is important to note that our actual results could vary materially from those forward-looking statements contained herein due to many factors, including, but not limited to: future financial results and liquidity, development of new products and services, the effect of competitive products or pricing, the effect of commodity and raw material prices, the impact of supply chain cost management initiatives, restructuring risks, customs duty claims, litigation uncertainties and warranty claims, conditions in the automotive industry, foreign currency fluctuations, costs related to re-sourcing and outsourcing products, the effect of economic conditions, and other risks identified in the “Special note regarding forward-looking statements”, “Risk Factors” and other sections of the Company's previously filed most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.

The following discussion should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013.

Executive Overview

Our Business

We are a global market leader in the design, manufacture, remanufacture, marketing and distribution of non-discretionary, rotating electrical components for light and commercial vehicles for original equipment manufacturers, or OEMs, and the aftermarket. We sell our products worldwide primarily under our well-recognized “Delco Remy,” “Remy,” “World Wide Automotive” and "USA Industries" brand names, as well as our customers' well-recognized private label brand names.

Our principal products for both light and commercial vehicles include:

• new starters and alternators;

• remanufactured starters and alternators;

• hybrid electric motors; and

• multi-line products (primarily remanufactured), including steering gears, constant velocity (CV) axles, and brake calipers.

We sell our new starters, alternators and hybrid electric motors to U.S. and non-U.S. OEMs for factory installation on new vehicles. We sell remanufactured and new products to aftermarket customers, mainly retailers in North America, warehouse distributors in North America and Europe, and OEMs globally for the original equipment service ("OES"), market. We sell a small volume of remanufactured locomotive power assemblies, CV axles and brake calipers in North America, and steering gear and brake calipers for light vehicles in Europe.

Financial Results

Net sales of $300.3 million for the first quarter of 2014 increased 6.6% from $281.7 million for the same period in 2013 driven primarily by increased volume and mix of $21.3 million, including $8.0 million in first quarter sales from the acquisition of USA Industries, and favorable foreign currency translation of $0.7 million. These increases in net sales were partially offset by negative pricing impact of $3.4 million. Net income was $9.5 million during the first quarter of 2014, an increase of $7.6 million over the same period in 2013. This increase was primarily driven by one-time charges in 2013 consisting of $7.0 million in additional selling, general and administrative expenses related to executive separation costs and a $4.3 million loss on extinguishment of debt and refinancing fees due to the March 2013 refinancing of our Term B Loan, partially offset by the $2.5 million of finished goods inventory step-up and $0.3 million in amortization due to purchase accounting related to the USA Industries acquisition for the three months ended March 31, 2014.

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Acquisition of United Starters and Alternators Industries, Inc.

On January 13, 2014, we acquired substantially all of the assets of USA Industries pursuant to the terms and conditions of the Asset Purchase Agreement, effective as of January 13, 2014. USA Industries is a leading North American distributor of premium quality remanufactured and new alternators, starters, CV axles and disc brake calipers for the light-duty aftermarket. In connection with the closing of the transaction, the assets were placed in Remy USA Industries, L.L.C., a wholly-owned subsidiary of the Company. USA Industries' operating results are consolidated beginning January 13, 2014. The preliminary purchase price was $40,609,000, consisting of $38,500,000 in cash, $2,000,000 cash held in escrow, and payables to the former owner of $109,000.

Recent Trends and Conditions

General economic conditions

According to IHS Global Insight, global light duty vehicle production was up 5% and global medium and heavy duty vehicle production increased 2% during the first quarter of 2014 as compared to the same period in 2013. The increase in light duty vehicle production was driven primarily by a 9% increase in China production, a 6% increase in North America production and a 5% increase in Europe production. These increases were offset by a 3% decline in South America production and a 2% decline in Korea production. The increase in global medium and heavy duty production was primarily a result of a 27% increase in South America production, a 16% increase in North America production, offset by a 6% decline in China production and 1% declines in Korea and Europe, respectively, due to the commercial vehicle market softening. The global automotive industry remains susceptible to uncertain economic conditions that could adversely impact consumer demand for vehicles.

Weather can affect aftermarket sales of starters and alternators. Extreme cold can damage starters and extreme heat can increase alternator failures. In both cases, this extreme weather can stimulate sales of aftermarket starters and alternators. In early 2014, the Midwest and Northeast United States experienced severe cold weather which we believe had a positive impact on our results of operations.

Pricing pressures from customers

Pressure from our customers to reduce prices is characteristic of the automotive supply industry. We anticipate the impact of our pricing to be in the range of 1% to 3% consistent with prior years. Due to the competitive nature of the business, the revised terms with customers are expected to impact our ongoing profitability. We have taken and expect to continue to take steps to improve operating efficiencies and minimize or resist price reductions.

Material and commodity price fluctuations

Overall commodity price fluctuation is an ongoing concern for our business and has been an operational and financial focus. We have pass-through pricing agreements with a number of our customers that reduce our exposure to metals price volatility. Where metals price volatility is not covered by customer agreements, we utilize hedging instruments where appropriate, particularly related to copper, and consider their cost and their effectiveness. Average copper prices were lower for the quarter ended March 31, 2014 than for the same period in 2013.

In our remanufacturing operations, our principal inputs are cores, approximately 90% of which we receive in exchange for remanufactured units. Cores are used starters or alternators that customers exchange when they purchase new products. If usable, we refurbish these cores into a remanufactured product that we sell to our aftermarket customers. When we are required to purchase cores rather than receiving them in exchange for remanufactured units, we are affected by market pricing of cores. The cost of cores fluctuates based on a number of factors, including supply and demand and the underlying value of the commodities that the cores contain.

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Foreign currencies

During the first three months of 2014, approximately 34% of our net sales were transacted outside the United States. The functional currency of our foreign operations is generally the local currency, while our financial statements are presented in U.S. dollars. Foreign exchange has an unfavorable impact on net sales when the U.S. dollar is relatively strong as compared with foreign currencies and a favorable impact on net sales when the U.S. dollar is relatively weak as compared with foreign currencies. While we employ financial instruments to hedge certain exposures related to transactions from fluctuations in foreign currency exchange rates, these hedging actions do not entirely insulate us from currency effects and such programs may not always be available to us at economically reasonable costs. During the first three months of 2014, we experienced a negative impact from foreign currency effects on our reported earnings in U.S. dollars compared to the first three months of 2013, primarily resulting from the results denominated in other currencies, mainly the Mexican Peso, Brazilian Real and the Euro.

Operation efficiency efforts

In general, our long-term objectives are geared toward profitably growing our business, expanding our innovative technologies, winning new contracts, generating cash and strengthening our market position. On an ongoing basis, we evaluate our competitive position and determine what actions may be required to maintain and improve that position.

We continue to focus on investing appropriate levels of capital to support anticipated expansion in significant growth markets, such as China. We continued to incur start-up costs associated with our manufacturing and engineering facility in Wuhan, China which began production in the second quarter of 2013. These investments are critical as they position us to benefit from expected long-term growth opportunities.

We believe that a continued focus on research, development and engineering activities is critical to maintaining our leadership position in the industry and meeting our long-term objectives. As a result, we continue our commitment to invest in facilities and infrastructure in order to support new business awards and achieve our long-term growth plans.

Although we believe that we have established a firm foundation for profitability, we continue to evaluate our global manufacturing and supply chain to further streamline our operations. We have completed the transfer of production from our Mezokovesd, Hungary plant to our other facilities in Hungary, Mexico and Korea and substantially completed the closure of our Mezokovesd, Hungary plant. In addition, during 2014, we consolidated our Mexico operations to better manage our cost structure.

Non-U.S. GAAP measurements - Adjusted EBITDA

Adjusted EBITDA is not a measure of performance defined in accordance with accounting principles generally accepted in the United States (U.S. GAAP). We use adjusted EBITDA as a supplement to our U.S. GAAP results in evaluating our business. Other companies in our industry define adjusted EBITDA differently from us and, as a result, our measure is not comparable to similarly titled measures used by other companies in our industry.

We define adjusted EBITDA as net income attributable to common stockholders before interest expense–net, income tax expense, depreciation and amortization, stock-based compensation expense, net income attributable to noncontrolling interest, restructuring, other charges and other impairment charges, loss on extinguishment of debt and refinancing fees, executive officer separation cost, certain purchase accounting finished goods inventory step-up costs and other adjustments as set forth in the reconciliations provided below.

Adjusted EBITDA is one of the key factors upon which we assess performance. As an analytical tool, adjusted EBITDA assists us in comparing our performance over various reporting periods on a consistent basis because it excludes items that we do not believe reflect our ongoing operating performance.

Adjusted EBITDA should not be considered as an alternative to net income as an indicator of our performance, as an alternative to net cash provided by operating activities as a measure of liquidity, or as an alternative to any other measure prescribed by U.S. GAAP. There are limitations to using non-U.S. GAAP measures such as adjusted EBITDA. Although we believe that adjusted EBITDA may make an evaluation of our operating performance more consistent because it removes items that do not reflect our ongoing operations, adjusted EBITDA excludes certain financial information that some may consider important in evaluating our performance.

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The following table sets forth a reconciliation of adjusted EBITDA to its most directly comparable U.S. GAAP measure, net income attributable to common stockholders:

	Three months ended March 31,
(In thousands)	2014		2013
Net income attributable to common stockholders	$	9,467	$	1,280
Adjustments:
Interest expense–net	5,636		6,337
Income tax expense	5,711		1,712
Depreciation and amortization	8,655		8,213
Stock-based compensation expense	1,219		1,497
Net income attributable to noncontrolling interest	—		563
Restructuring and other charges	314		681
Loss on extinguishment of debt and refinancing fees	—		4,256
Executive officer separation	—		7,000
Purchase accounting finished goods inventory step-up	2,509		—
Other	—		(264		)
Total adjustments	24,044		29,995
Adjusted EBITDA	$	33,511	$	31,275

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Results of operations

The following table presents our consolidated results of operations for the three months ended March 31, 2014 compared to the three months ended March 31, 2013:

Three months ended March 31,					Increase/ (Decrease)			% Increase/ (Decrease)
(In thousands)	2014		2013
Net sales	$	300,294	$	281,726	$	18,568		6.6	%
Cost of goods sold	245,827		226,747		19,080			8.4	%
Gross profit	54,467		54,979		(512		)	(0.9	)%
Selling, general, and administrative expenses	33,339		40,150		(6,811		)	(17.0	)%
Restructuring and other charges	314		681		(367		)	(53.9	)%
Operating income	20,814		14,148		6,666			47.1	%
Interest expense–net	5,636		6,337		(701		)	(11.1	)%
Loss on extinguishment of debt and refinancing fees	—		4,256		(4,256		)	(100.0	)%
Income before income taxes	15,178		3,555		11,623			326.9	%
Income tax expense	5,711		1,712		3,999			233.6	%
Net income	9,467		1,843		7,624			413.7	%
Less net income attributable to noncontrolling interest	—		563		(563		)	(100.0	)%
Net income attributable to common stockholders	$	9,467	$	1,280	$	8,187		639.6	%

Net sales

Net sales increased by $18.6 million, or 6.6%, to $300.3 million for the three months ended March 31, 2014, from $281.7 million for the same period in 2013. The increase in net sales was driven by increased volume and mix of $21.3 million, including $8.0 million in first quarter sales from the acquisition of USA Industries, and favorable foreign currency translation of $0.7 million. These increases in net sales were partially offset by negative pricing impact of $3.4 million.

Net sales of new starters and alternators to OEMs in the three months ended March 31, 2014 decreased in light vehicle products which was offset by an increase in commercial vehicle products. Net sales of light vehicle starters and alternators to OEMs were $89.3 million in the three months ended March 31, 2014, a $9.4 million, or 9.5%, decrease compared to $98.7 million in the same period in 2013. These reductions are mainly driven by the end of certain North American programs offset by new programs and growth in China. Net sales of commercial vehicle starters and alternators were $72.8 million in the three months ended March 31, 2014, a $8.4 million, or 13.0%, increase compared to $64.4 million in the same period in 2013 driven primarily by higher volumes due to the severe cold weather in early 2014. We also sold $3.9 million of hybrid electric motors to OEMs in the three months ended March 31, 2014, as compared to $6.0 million in the same period in 2013.

Net sales of light vehicle products to aftermarket customers were $101.1 million in the three months ended March 31, 2014, a $17.1 million, or 20.4% increase from $84.0 million in the same period in 2013. The increase is primarily a result of sales from the USA Industries acquisition and higher volumes as we experienced strong orders from our retail customers during the quarter. Net sales of starters and alternators for commercial vehicles to aftermarket customers were $17.7 million in the first quarter of 2014, a decrease of $1.0 million, or 5.3% from $18.7 million in the first quarter of 2013.

Net sales of remanufactured locomotive power trains and multi-line products, which consist of a small volume of remanufactured steering gears and brake calipers that we sell in the United States and Europe, to aftermarket customers, were $15.5 million in the three months ended March 31, 2014, a $5.6 million, or 56.6% increase from the same period in 2013.

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Cost of goods sold

Cost of goods sold primarily represents materials, labor and overhead production costs associated with our products and production facilities. Cost of goods sold was $245.8 million in the three months ended March 31, 2014 and $226.7 million in the three months ended March 31, 2013, an increase of $19.1 million, or 8.4%. The increase was mainly due to higher sales volumes. During the three months ended March 31, 2014, we recognized approximately $2.5 million related to the step-up of finished goods inventory and $0.3 million in amortization expense associated with the USA Industries acquisition. As a result, cost of goods sold as a percentage of net sales slightly increased during the three months ended March 31, 2014 to 81.9%, from 80.5% in 2013.

Gross profit

As a result of the above changes in net sales and cost of goods sold, gross profit as a percentage of net sales decreased slightly to 18.1% for the three months ended March 31, 2014 as compared to 19.5% for the three months ended March 31, 2013.

Selling, general and administrative expenses

For the three months ended March 31, 2014, selling, general and administrative expenses, or SG&A, was $33.3 million, which represents a decrease of $6.8 million, or 17.0%, from SG&A of $40.2 million for the three months ended March 31, 2013. The decrease was primarily related to a one-time charge representing a $7.0 million lump sum cash payment made to our former President and Chief Executive Officer pursuant to the terms of a Transition, Noncompetition and Release Agreement effective February 28, 2013.

Restructuring and other charges

Restructuring and other charges decreased by $0.4 million, to $0.3 million for the three months ended March 31, 2014 compared to $0.7 million for the same period in 2013. The decrease in restructuring expense for the three months ended March 31, 2014 primarily related to the closure of our Mezokovesd, Hungary in 2013 resulting in limited restructuring costs in the quarter ended March 31, 2014.

Interest expense–net

Interest expense–net decreased by $0.7 million to $5.6 million for the three months ended March 31, 2014 from $6.3 million in the same period in 2013. The decrease was primarily driven by a decrease in interest rate from 6.25% to 4.25% due to the refinancing of the Term B loan on March 5, 2013 and lower amounts borrowed on short-term debt in 2014 versus 2013. The decrease was partially offset by the additional interest expense-net related to our undesignated interest rate swap contracts of $0.5 million.

Loss on extinguishment of debt and refinancing fees

During the three months ended March 31, 2014, no amounts were recorded for loss on extinguishment of debt and refinancing fees. During the three months ended March 31, 2013, loss on extinguishment of debt and refinancing fees of $4.3 million was related to the refinancing of our Term B Loan syndication.

Income tax expense

Income tax expense increased by $4.0 million to $5.7 million for the three months ended March 31, 2014 from $1.7 million for the same period in 2013. The increase is primarily driven by the increase in income before income taxes in 2014 compared to the same period in 2013.

Net income attributable to common stockholders

Our net income attributable to common stockholders for the three months ended March 31, 2014 was $9.5 million as compared to $1.3 million for the three months ended March 31, 2013, for the reasons described above. In addition, there was no income attributable to the noncontrolling interest during the three months ended March 31, 2014 due to our June 2013 acquisition of the remaining 49% noncontrolling ownership interest of our Chinese joint venture, Remy Hubei Electric Co. Ltd.

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Liquidity and capital resources

Our cash requirements generally consist of working capital, capital expenditures, research and development programs, debt service and dividends. Our primary sources of liquidity are cash flows generated from operations and the various borrowing and factoring arrangements described below, including our revolving credit facility. We actively manage our working capital and associated cash requirements and continually seek more effective use of cash.

We believe that cash generated from operations, together with the amounts available under financing arrangements discussed below, as well as cash on hand, will be adequate to meet our liquidity requirements for at least the next twelve months. If we make a large acquisition or engage in certain other strategic transactions, we may need to enter into additional borrowing arrangements or obtain additional equity capital. No assurance can be given that such funds would be available to us at such time.

As of March 31, 2014, we had cash and cash equivalents on hand of $55.8 million representing a $59.1 million decrease compared to the $114.9 million cash and cash equivalents on hand as of December 31, 2013. Total liquidity as of March 31, 2014, including cash on hand, availability under the ABL First Amendment, and availability under short-term debt credit facilities, was $150.5 million.

Cash flows

The following table shows the components of our cash flows for the periods presented:

Three months ended March 31,
(In thousands)	2014			2013
Net cash provided by (used in):
Operating activities before changes in operating assets and liabilities	$	19,850		$	10,571
Changes in operating assets and liabilities	(29,008		)	(26,902		)
Operating activities	(9,158		)	(16,331		)
Investing activities	(46,789		)	(5,692		)
Financing activities	(2,669		)	5,204

Cash flows-Operating activities

Cash used in operating activities was $9.2 million versus $16.3 million for the three months ended March 31, 2014 and 2013, respectively. The increase in operating cash flows from 2013 was primarily a result of the increase in net income as discussed above.

Operating cash flows were negatively impacted due to a $35.9 million decrease in cash flows from accounts receivable driven primarily by the mix of sales in geographic regions with longer payment terms and timing of amounts factored in 2014. Partially offsetting the impact of longer payment terms on operating cash flows were higher cash collection from customers during the three months ended March 31, 2014 as compared to the three months ended March 31, 2013, due to higher net sales of $18.6 million in 2014 as discussed above. Higher expenditures for inventory replenishment of approximately $3.0 million in 2014 as a result of increased sales levels in addition to a $2.4 million decrease in 2014 in cash outflows period over period as we made investments in our North American aftermarket customers and additional start-up of our new Wuhan, China facility in 2013. Our mix of accounts payable increased our days payable outstanding during the three months ended March 31, 2014 resulting in an increase in payables of $20.3 million.

Cash payments related to our incentive compensation plans were lower by $7.2 million during the three months ended March 31, 2014 as compared to the three months ended March 31, 2013. The decrease was primarily related to a one-time $7.0 million lump sum cash payment for executive separation costs incurred in 2013. Cash payments for restructuring charges were $1.1 million lower due to the nature and timing of restructuring actions.

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Cash paid for interest for the three months ended March 31, 2014 was $4.9 million as compared to $6.2 million for the three months ended March 31, 2013, a decrease of $1.3 million. Cash payments were lower primarily due to the refinancing of our Amended and Restated Term B Loan Credit Agreement on March 5, 2013.

Cash paid for taxes for the three months ended March 31, 2014 was $4.9 million, compared to $2.6 million for the three months ended March 31, 2013, an increase of $2.3 million. The reason for the increase was primarily due to higher foreign cash payments as a result of higher foreign income before taxes in 2014.

Cash flows-Investing activities

Cash used in investing activities for the three months ended March 31, 2014 was $46.8 million representing a $41.1 million increase over the $5.7 million cash used in investing activities for the three months ended March 31, 2013. The increase was primarily due to $40.4 million in net cash disbursements related to the USA Industries acquisition.

Cash flows-Financing activities

Cash used in financing activities for the three months ended March 31, 2014 was $2.7 million, compared to cash provided by financing activities of $5.2 million for the three months ended March 31, 2013. During the three months ended March 31, 2014, we paid $3.4 million in quarterly cash dividends to our common stockholders, as declared by our Board of Directors, which was consistent with quarterly cash dividends paid in the prior year period. We also repurchased $2.5 million of our common stock to satisfy tax withholding obligations of participants under our stock-based compensation programs during the three months ended March 31, 2014, as compared to $1.2 million during the three months ended March 31, 2013. In connection with the vesting of restricted stock grants during the first quarter of 2014, we also recognized an excess tax benefit of $1.1 million, compared to no excess tax benefit recorded in the first quarter of 2013.

The increase in short-term debt was related to borrowings on our revolving credit facilities. In March 2014, we entered into a revolving credit facility in China with one bank for $10.0 million of which $2.9 million was borrowed and remained outstanding at March 31, 2014. We also borrowed and repaid $4.2 million on the Asset-Based Revolving Credit Facility during the quarter ended March 31, 2014. These borrowings were for funding our China operations and for general corporate working capital purposes.

In 2013, we refinanced our $287.0 million Term B Loan with an Amended and Restated Term B Loan Credit Agreement and received $299.3 million in proceeds, which was offset by deferred financing fees of $3.4 million.

Debt and Capital Structure

First Amendment to ABL Revolver Credit Agreement

On March 5, 2013, we entered into a First Amendment to our existing ABL Revolver Credit Agreement ("ABL First Amendment") to extend the maturity date of the Asset-Based Revolving Credit Facility ("ABL") from December 17, 2015 to September 5, 2018 and reduce the borrowing rate. The ABL First Amendment bears an interest rate to a defined Base Rate plus 0.50%-1.00% per year or, at our election, at an applicable LIBOR Rate plus 1.50%-2.00% per year and is paid monthly. The ABL First Amendment maintains the current availability at $95,000,000, but may be increased, under certain circumstances, by $20,000,000. The ABL First Amendment is secured by substantially all domestic accounts receivable and inventory. At March 31, 2014, the ABL First Amendment balance was zero. Based upon the collateral supporting the ABL First Amendment, the amount borrowed, and the outstanding letters of credit of $14,035,000, there was additional availability for borrowing of $73,460,000 on March 31, 2014. We will incur an unused commitment fee of 0.375% on the unused amount of commitments under the ABL First Amendment.

Amended and Restated Term B Loan Credit Agreement

On March 5, 2013, we entered into a $300,000,000 Amended and Restated Term B Loan Credit Agreement ("Amended and Restated Term B Loan") to refinance the existing $286,978,000 Term B Loan, extend the maturity from December 17, 2016 to March 5, 2020, and reduce the borrowing rate. The Amended and Restated Term B Loan bears an interest rate consisting of LIBOR (subject to a floor of 1.25%) plus 3.00% per year with an original issue discount of $750,000. The Amended and Restated Term B Loan also contains an option to increase the borrowing provided certain conditions are satisfied, including maintaining a maximum leverage ratio. The Amended and Restated Term B Loan is secured by a first priority lien on the stock of our subsidiaries and substantially all domestic assets other than accounts receivable

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and inventory pledged to the ABL First Amendment. Principal payments in the amount of $750,000 are due at the end of each calendar quarter with termination and final payment no later than March 5, 2020. The Amended and Restated Term B Loan is subject to an excess cash calculation which may require the payment of additional principal on an annual basis. At March 31, 2014, the average borrowing rate, including the impact of the interest rate swaps, was 4.25%.

See Note 12 to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report for a description of our revolving credit facility and for more details on the ABL First Amendment and Amended and Restated Term B Loan.

Under normal working capital utilization of liquidity, portions of the amounts drawn under our credit facilities typically are paid back throughout the month as cash from customers is received. We could then draw upon such facilities again for working capital purposes in the same or succeeding months.

The agreement that governs our senior secured revolving credit facility contains a number of covenants, including financial covenants, that would impact our ability to borrow on the facility if not met. These covenants include restrictive covenants that restrict, among other things, the ability to incur additional indebtedness and pay cash dividends on our common stock. The facility also includes customary events of default, including breach of covenant and cross-defaults to certain other debt. As of March 31, 2014, we were in compliance with all of our covenants.

Non-U.S. borrowing arrangements

At March 31, 2014, our subsidiaries outside the U.S. also had various uncommitted credit facilities, of which $21.2 million was not utilized. We expect that these additional facilities will be drawn on from time to time for normal working capital purposes and to fund capital expenditures in support of operations and planned expansions in certain regions. See Note 12 to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report for a description of our short term debt.

For further description of our outstanding debt, see Note 12 to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report.

Factoring agreements

We have also entered into factoring agreements with various domestic and European financial institutions to sell our accounts receivable under nonrecourse agreements. These transactions are accounted for as a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. We do not service any factored accounts after the factoring has occurred. See Note 4 to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report for a description of our factoring arrangements.

Contractual obligations

There were no material changes in our contractual obligations during the three months ended March 31, 2014 from what was previously described in our Annual Report on Form 10-K for the year ended December 31, 2013, other than related to the leases discussed below.

As a result of facility lease renewals in Mexico and facility leases we acquired in connection with the January 2014 USA Industries acquisition, cash payments under our operating lease arrangements have changed from what was previously described in our Annual Report on Form 10-K for the year ended December 31, 2013. In Mexico, we amended our existing operating lease at our Piedras Negras facility, which requires total minimum lease payments of $1.0 million through 2015. We also entered into a new operating lease for our Mexico OE facility, which requires total minimum lease payments of $3.7 million through 2017. In connection with the USA Industries acquisition, we acquired operating leases for facilities in Texas, California, New York and Wisconsin, which require future cash payments of $2.5 million over the remaining lease terms through 2018.

Contingencies

Information concerning contingencies are contained in Note 19 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report is incorporated herein by reference.

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Off-Balance sheet arrangements

We do not have any material off-balance sheet arrangements.

Accounting pronouncements

For a discussion of certain adopted or pending accounting pronouncements, see Note 2 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report, which is incorporated herein by reference.

Critical accounting policies and estimates

Our accounting policies require management to make significant estimates and assumptions using information available at the time the estimates are made. Actual amounts could differ significantly from these estimates. See Note 2 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report for a summary of the significant accounting policies and methods used in the preparation of our unaudited condensed consolidated financial statements. A detailed description of our significant accounting policies is included in Note 2 to our audited consolidated financial statements included in our Annual Report for Form 10-K for the year ended December 31, 2013. There have been no significant changes in our critical accounting policies and estimates during the three months ended March 31, 2014.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to the quantitative and qualitative information about our market risks from those previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the U.S. Securities and Exchange Commission on February 27, 2014.

Item 4.    Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the supervision and participation of our President and Chief Executive Officer (principal executive officer) and our Senior Vice President, Chief Financial Officer and Treasurer (principal financial officer), has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) as of March 31, 2014. Based on that evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective, at the reasonable assurance level, as of March 31, 2014.

Changes in Internal Controls

There have not been any changes in our internal control over financial reporting as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) during the quarter ended March 31, 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - Other Information

Item 1.Legal Proceedings

The information concerning the legal proceedings involving the Company contained in Note 19 to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report is incorporated herein by reference.

Item 1A.     Risk Factors

We face a number of significant risks and uncertainties in connection with our operations. Our business, results of operations and financial condition could be materially adversely affected by these risk factors. There have been no material changes to Risk Factors previously reported in our Annual Report on Form 10-K for the year ended December 31, 2013.

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

We withheld the following shares of common stock to satisfy tax withholding obligations during the quarter ended March 31, 2014 from the distributions described below. These shares may be deemed to be “issuer purchases” of shares that are required to be disclosed pursuant to this Item.

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 of shares that may yet by purchased under the plans or programs (2)
1/1/2014 - 1/31/2014	28,937	$	20.99	—	—
2/1/2014 - 2/28/2014	85,354	22.22		—	—
3/1/2014 - 3/31/2014	—	—		—	—
Total	114,291	$	21.91

(1) Shares purchased during the three months ended March 31, 2014 were in connection with employee payroll tax withholding for restricted stock distributions.

(2) We have not announced a general plan or program to purchase shares.

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Item 6.    Exhibits

Exhibit Index

		Incorporated by reference
Exhibit Number	Description	Form	Exhibit	Filing Date	Filed herewith
3.1	Amended and Restated Certificate of Incorporation, as currently in effect	S-8	EX-3.1	2/14/2013
3.2	Amended and Restated Bylaws, as currently in effect	S-8	EX-3.2	2/14/2013
*10.1	2014 Form of Notice of Restricted Stock Grant for Directors and Restricted Stock Award Agreement under the Remy International, Inc. Omnibus Incentive Plan				X
*10.2	2014 Form of Notice of Stock Option Grant for Directors and Stock Option Agreement under the Remy International, Inc. Omnibus Incentive Plan				X
*10.3	2014 Form of Notice of Restricted Stock Grant for Employees and Restricted Stock Award Agreement under the Remy International, Inc. Omnibus Incentive Plan				X
*10.4	2014 Form of Notice of Stock Option Grant for Employees and Stock Option Agreement under the Remy International, Inc. Omnibus Incentive Plan				X
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				X
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				X
32.1	Certification by Chief Executive Officer of Periodic Financial Reports pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350				X
32.2	Certification by Chief Financial Officer of Periodic Financial Reports pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350				X
101.INS**	XBRL Instance Document				X
101.SCH**	XBRL Taxonomy Extension Schema Document				X
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document				X
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document				X
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document				X
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document				X

Management contracts and compensatory plans or arrangements are designated with “*”.

** Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Remy International, Inc.
	(Registrant)
Date: April 30, 2014	By: /s/ Fred Knechtel
	Fred Knechtel
	Senior Vice President, Chief Financial Officer and Treasurer
	(Principal Financial Officer)

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EX-10.1

Exhibit 10.1

Remy International, Inc.

Omnibus Incentive Plan

Notice of Restricted Stock Grant for Directors

You (the “Grantee”) have been granted the following award of restricted Common Stock (the “Restricted Stock”) of Remy International, Inc. (the “Company”), pursuant to the Remy International, Inc. Omnibus Incentive Plan (the “Plan”):

Name of Grantee:
Number of Shares of Restricted Stock Granted:
Effective Date of Grant:	February [__], 2014
Vesting and Period of Restriction:	Subject to the terms of the Plan and the Restricted Stock Award Agreement attached hereto (the “Agreement”), the Period of Restriction shall lapse, and the shares of Restricted Stock granted hereunder shall vest and become free of the forfeiture and transfer restrictions contained in the Agreement with respect to one-half of the total number of Shares of Restricted Stock granted under this Agreement on each anniversary of the Effective Date of Grant, until fully vested.

By your signature and the signature of the Company’s representative below, you and the Company agree and acknowledge that this grant of Restricted Stock is granted under and governed by the terms and conditions of the Plan and the attached Restricted Stock Award Agreement, which are incorporated herein by reference, and that you have been provided with a copy of the Plan and Restricted Stock Agreement.

Grantee:	Remy International, Inc.
By:	By:
Name:	Name:
Date:	Title:
Address:	Date:

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Remy International, Inc.

OMNIBUS INCENTIVE PLAN

Restricted Stock Award Agreement for Directors

SECTION 1. GRANT OF RESTRICTED STOCK

(a)     Restricted Stock. On the terms and conditions set forth in the Notice of Restricted Stock Grant and this Restricted Stock Award Agreement (the “Agreement”), the Company grants to the Grantee on the Effective Date of Grant the Shares of Restricted Stock (the “Restricted Stock”) set forth in the Notice of Restricted Stock Grant.

(b)     Plan and Defined Terms. The Restricted Stock is granted pursuant to the Plan. All terms, provisions, and conditions applicable to the Restricted Stock set forth in the Plan and not set forth herein are hereby incorporated by reference herein. To the extent any provision hereof is inconsistent with a provision of the Plan, the provisions of the Plan will govern. All capitalized terms that are used in the Notice of Restricted Stock Grant or this Agreement and not otherwise defined therein or herein shall have the meanings ascribed to them in the Plan.

SECTION 2. FORFEITURE AND TRANSFER RESTRICTIONS

a)     Forfeitures.

(i)Except as described in Section 2(a)(ii) and (iii) below, if the Grantee resigns as a Director or if the Grantee’s service as a Director is terminated or discontinued prior to the second year anniversary of the Effective Date of Grant, the Grantee shall, for no consideration, forfeit to the Company the Shares of Restricted Stock to the extent such Shares remain subject to a Period of Restriction at the time of such termination of the Grantee’s service.

(ii)If the Grantee’s service as a Director is terminated due to the Grantee’s death or Disability, as such term is defined below, a portion of the Shares which on the date of termination of service remain subject to a Period of Restrictions shall vest and become free of the forfeiture and transfer restrictions contained in the Agreement. The portion which shall vest shall be determined by the following formula (rounded to the nearest whole Share):

(A x B) - C, where

A = the total number of Shares granted under this Agreement,

B = the number of completed months to the date of termination of service as a Director since the Effective Date of Grant divided by 24, and

C = the number of Shares granted under this Agreement which vested on or prior to the date of service termination.

Any Shares which were subject to a Period of Restrictions on the date of the service termination and which will not be vested pursuant to the first two sentences of this Section 2(a)(ii) shall be forfeited to the Company, for no consideration.

(iii) Unless otherwise specifically prohibited under applicable laws, or by the rules and regulations of any governing governmental agencies or national securities exchanges, if there occurs a Change in Control, as such term is defined in the Plan, the Award shall immediately vest if the Grantee’s service as a director is

2

terminated or discontinued prior to the second year anniversary of the Effective Date of Grant. This paragraph shall supersede the provisions set forth in Article 17 of the Plan, and to the extent any provision in this paragraph is inconsistent with Article 17 of the Plan, the provisions of this paragraph will govern.

(iv)    The term “Disability” shall mean the inability to perform the Grantee’s duties as a Director due to a physical or mental illness for a period of at least six (6) months as determined in the sole discretion of the majority of the members (excluding Grantee) of the Board.

(b)     Transfer Restrictions. During the Period of Restriction, the Restricted Stock may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of to the extent such Shares are subject to a Period of Restriction.

(c)     Lapse of Restrictions. The Period of Restriction shall lapse as to the Restricted Stock in accordance with the Notice of Restricted Stock Grant and the terms of this Agreement. Subject to the terms of the Plan, upon lapse of the Period of Restriction, the Grantee shall own the Shares that are subject to this Agreement free of all restrictions otherwise imposed by this Agreement.

SECTION 3. STOCK CERTIFICATES

As soon as practicable following the grant of Restricted Stock, the Shares of Restricted Stock shall be registered in the Grantee’s name in certificate or book-entry form. If a certificate is issued, it shall bear an appropriate legend referring to the restrictions and it shall be held by the Company, or its agent, on behalf of the Grantee until the Period of Restriction has lapsed. If the Shares are registered in book-entry form, the restrictions shall be placed on the book-entry registration. The Grantee may be required to execute and return to the Company a blank stock power for each Restricted Stock certificate (or instruction letter, with respect to Shares registered in book-entry form), which will permit transfer to the Company, without further action, of all or any portion of the Restricted Stock that is forfeited in accordance with this Agreement.

SECTION 4. SHAREHOLDER RIGHTS

Except for the transfer and dividend restrictions, and subject to such other restrictions, if any, as determined by the Committee, the Grantee shall have all other rights of a holder of Shares, including the right to vote (or to execute proxies for voting) such Shares. Unless otherwise determined by the Committee, if all or part of a dividend in respect of the Restricted Stock is paid in Shares or any other security issued by the Company, such Shares or other securities shall be held by the Company subject to the same restrictions as the Restricted Stock in respect of which the dividend was paid.

SECTION 5. DIVIDENDS

(a)     Any dividends paid with respect to Shares which remain subject to a Period of Restriction shall not be paid to the Grantee but shall be held by the Company.

(b)     Such held dividends shall be subject to the same Period of Restriction as the Shares to which they relate.

(c)     Any dividends held pursuant to this Section 5 which are attributable to Shares which vest pursuant to this Agreement shall be paid to the Grantee within 30 days of the applicable vesting date.

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(d)     Dividends attributable to Shares forfeited pursuant to Section 2 of this Agreement shall be forfeited to the Company on the date such Shares are forfeited.

SECTION 6. MISCELLANEOUS PROVISIONS

(a)     Tax Withholding. Pursuant to Article 20 of the Plan, the Committee shall have the power and right to deduct or withhold, or require the Grantee to remit to the Company, an amount sufficient to satisfy any federal, state and local taxes (including the Grantee’s FICA obligations) required by law to be withheld with respect to this Award. The Committee may condition the delivery of Shares upon the Grantee’s satisfaction of such withholding obligations. The Grantee may elect to satisfy all or part of such withholding requirement by tendering previously-owned Shares or by having the Company withhold Shares having a Fair Market Value equal to the minimum statutory withholding (based on minimum statutory withholding rates for federal, state and local tax purposes, as applicable, including payroll taxes) that could be imposed on the transaction, and, to the extent the Committee so permits, amounts in excess of the minimum statutory withholding to the extent it would not result in additional accounting expense. Such election shall be irrevocable, made in writing, signed by the Grantee, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

(b)     Ratification of Actions. By accepting this Agreement, the Grantee and each person claiming under or through the Grantee shall be conclusively deemed to have indicated the Grantee’s acceptance and ratification of, and consent to, any action taken under the Plan or this Agreement and Notice of Restricted Stock Grant by the Company, the Board or the Committee.

(c)     Notice. Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. Notice shall be addressed to the Company at its principal executive office and to the Grantee at the address that he or she most recently provided in writing to the Company.

(d)     Choice of Law. This Agreement and the Notice of Restricted Stock Grant shall be governed by, and construed in accordance with, the laws of Indiana, without regard to any conflicts of law or choice of law rule or principle that might otherwise cause the Plan, this Agreement or the Notice of Restricted Stock Grant to be governed by or construed in accordance with the substantive law of another jurisdiction.

(e)     Arbitration. Subject to, and in accordance with the provisions of Article 3 of the Plan, any dispute or claim arising out of or relating to the Plan, this Agreement or the Notice of Restricted Stock Grant shall be settled by binding arbitration before a single arbitrator in Indianapolis, Indiana and in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The arbitrator shall decide any issues submitted in accordance with the provisions and commercial purposes of the Plan, this Agreement and the Notice of Restricted Stock Grant, provided that all substantive questions of law shall be determined in accordance with the state and federal laws applicable in Indiana, without regard to internal principles relating to conflict of laws.

(f)     Modification or Amendment. This Agreement may only be modified or amended by written agreement executed by the parties hereto; provided, however, that the adjustments permitted pursuant to Section 4.3 of the Plan may be made without such written agreement.

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(g)     Severability. In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of this Agreement, and this Agreement shall be construed and enforced as if such illegal or invalid provision had not been included.

(h)     References to Plan. All references to the Plan shall be deemed references to the Plan as may be amended from time to time.

(i)     Section 409A Compliance. To the extent applicable, it is intended that the Plan and this Agreement comply with the requirements of Code Section 409A and any related regulations or other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service and the Plan and the Award Agreement shall be interpreted accordingly.

5

EX-10.2

Exhibit 10.2

Remy International, Inc.

Omnibus Incentive Plan

Notice of Stock Option Grant for Directors

You (the “Optionee”) have been granted the following option to purchase Class A Common Stock of Remy International, Inc. (the “Company”), par value $0.0001 per share (“Share”), pursuant to the Remy International, Inc. Omnibus Incentive Plan (the “Plan”):

Name of Optionee:	Participant Name
Total Number of Shares Subject to Option:	Shares granted
Type of Option:	Nonqualified.
Exercise Price Per Share:	$
Effective Date of Grant:	February [__], 2014
Vesting Schedule:	Subject to the terms of the Plan and the Stock Option Agreement attached hereto, the right to exercise this Option shall vest with respect to one-half of the total number of Shares subject to this Option on each anniversary of the Effective Date of the grant.
Expiration Date:	7th Anniversary of Effective Date of Grant The Option is subject to earlier expiration, as provided in Section 3(b) of the attached Stock Option Agreement.

By your acceptance/signature, you agree and acknowledge that this Option is granted under and governed by the terms and conditions of the Plan and the attached Stock Option Agreement, which are incorporated herein by reference, and that you have been provided with a copy of the Plan and Stock Option Agreement.

Grantee:	Remy International, Inc.
By:	By:
Name:	Name:
Address:	Title:
	Date:

1

REMY INTERNATIONAL, Inc.

Omnibus Incentive Plan

Stock Option Agreement for Directors

SECTION 1. GRANT OF OPTION.

(a)     Option. On the terms and conditions set forth in the Notice of Stock Option Grant, which is incorporated by reference, and this Stock Option Agreement (the “Agreement”), the Company grants to the Optionee on the Effective Date of Grant the Option to purchase at the Exercise Price the number of Shares set forth in the Notice of Stock Option Grant.

(b)    Plan and Defined Terms. The Option is granted pursuant to the Plan. All terms, provisions, and conditions applicable to the Option set forth in the Plan and not set forth herein are hereby incorporated by reference herein. To the extent any provision hereof is inconsistent with a provision of the Plan, the provisions of the Plan will govern. All capitalized terms that are used in the Notice of Stock Option Grant or this Agreement and not otherwise defined therein or herein shall have the meanings ascribed to them in the Plan.

SECTION 2. RIGHT TO EXERCISE.

The Option hereby granted shall be exercised by written notice to the Committee, specifying the number of Shares the Optionee desires to purchase together with provision for payment of the Exercise Price. Subject to such limitations as the Committee may impose (including prohibition of one more of the following payment methods), payment of the Exercise Price may be made by (a) check payable to the order of the Company, for an amount in United States dollars equal to the aggregate Exercise Price of such Shares, (b) by tendering to the Company Shares having an aggregate Fair Market Value (as of the trading date immediately preceding the date of exercise) equal to such Exercise Price, (c) by broker-assisted exercise, or (d) by a combination of such methods. The Company may require the Optionee to furnish or execute such other documents as the Company shall reasonably deem necessary (i) to evidence such exercise and (ii) to comply with or satisfy the requirements of the Securities Act of 1933, as amended, the Exchange Act, applicable state or non-U.S. securities laws or any other law.

SECTION 3. TERM AND EXPIRATION.

(a)     Basic Term. Subject to earlier termination pursuant to the terms hereof, the Option shall expire on the expiration date set forth in the Notice of Stock Option Grant.

(b)    Termination of Service. If the Optionee’s service as a Director is terminated or discontinued, the Option shall expire on the earliest of the following occasions:

(i) The expiration date set forth in the Notice of Stock Option Grant;

(ii)    The date three months following the termination of the Optionee’s employment or service for any reason other than death or Disability;

(iii)    The date one year following the termination of the Optionee’s employment or service due to death or Disability; or

(iv)    The date of termination of the Optionee’s service for Cause.

2

The Optionee may exercise all or part of this Option at any time before its expiration under the preceding sentence, but, subject to the following sentence, only to the extent that the Option had become vested in accordance with the terms of the Notice of Stock Option Grant or this Agreement before the Optionee’s service terminated or discontinued. When the Optionee’s service terminates or is discontinued, unless such termination or discontinuance occurs following a Change in Control, this Option shall expire immediately with respect to the number of Shares for which the Option is not yet vested. If the Optionee dies after termination of discontinuation of service, but before the expiration of the Option, all or part of this Option may be exercised (prior to expiration) by the personal representative of the Optionee or by any person who has acquired this Option directly from the Optionee by will, bequest or inheritance, but only to the extent that the Option was vested and exercisable upon termination or discontinuation of the Optionee’s service.

Unless otherwise specifically prohibited under applicable laws, or by the rules and regulations of any governing governmental agencies or national securities exchanges, if there occurs a Change in Control, as such term is defined in the Plan, the Award shall immediately vest if the Grantee’s service as a director is terminated or discontinued, prior to the second year anniversary of the Effective Date of Grant. This paragraph shall supersede the provisions set forth in Article 17 of the Plan, and to the extent any provision in this paragraph is inconsistent with Article 17 of the Plan, the provisions of this paragraph will govern.

(c)    Definition of “Cause.” The term “Cause” shall mean (i) the willful engaging by the Optionee in misconduct that is demonstrably injurious to the Company or Subsidiary (monetarily or otherwise), (ii) the Optionee’s conviction of, or pleading guilty or nolo contendere to, a felony involving moral turpitude, or (iii) the Optionee’s violation of any confidentiality, non-solicitation, or non-competition covenant to which the Optionee is subject.

(d)    Definition of “Disability.” The term “Disability” shall mean the inability to perform the Grantee’s duties as a Director due to a physical or mental illness for a period of at least six (6) months as determined in the sole discretion of the majority of the members (excluding Grantee) of the Board.

SECTION 4. TRANSFERABILITY OF OPTION.

(a)    Generally. Except as provided in Section 4(b) herein, the Option shall not be transferable by the Optionee other than by will or the laws of descent and distribution, and the Option shall be exercisable during the Optionee’s lifetime only by the Optionee or on his or her behalf by the Optionee's guardian or legal representative.

(b)    Transfers to Family Members. Notwithstanding Section 4(a) herein, if the Option is a Nonqualified Stock Option, the Optionee may transfer the Option for no consideration to or for the benefit of a Family Member, subject to such limits as the Committee may establish, and the transferee shall remain subject to all the terms and conditions applicable to the Option.

(c)    Definition of “Family Member.” For purposes of this Agreement, the term “Family Member” shall mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the Optionee (including adoptive relationships), any person sharing the same household as the Optionee (other than a tenant or employee), a trust in which the above persons have more than fifty percent of the beneficial interests, a foundation in which the Optionee or the above persons control the management of assets, and any other entity in which the Optionee or the above persons own more than fifty percent of the voting interests.

3

SECTION 5. MISCELLANEOUS PROVISIONS.

(a)    Acknowledgements. The Optionee hereby acknowledges that he or she has read and understands the terms of the Plan and this Agreement, and agrees to be bound by their respective terms and conditions. The Optionee acknowledges that there may be tax consequences upon the exercise or transfer of the Option and that the Optionee should consult an independent tax advisor prior to any exercise or transfer of the Option.

(b)    Tax Withholding. Pursuant to the Plan, the Committee shall have the power and the right to deduct or withhold, or require the Optionee to remit to the Company, an amount sufficient to satisfy any federal, state and local taxes (including the Optionee’s FICA obligations) required by law to be withheld with respect to this Option. The Committee may condition the delivery of Shares upon the Optionee’s satisfaction of such withholding obligations. The Optionee may elect to satisfy all or part of such withholding requirement by tendering previously-owned Shares or by having the Company withhold Shares having a Fair Market Value equal to the minimum statutory withholding (based on minimum statutory withholding rates for federal, state and local tax purposes, as applicable, including the Optionee’s FICA taxes) that could be imposed on the transaction, and, to the extent the Committee so permits, amounts in excess of the minimum statutory withholding to the extent it would not result in additional accounting expense. Such election shall be irrevocable, made in writing and signed by the Optionee, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

(c)    Notice Concerning Disqualifying Dispositions. If the Option is an Incentive Stock Option, the Optionee shall notify the Committee of any disposition of Shares issued pursuant to the exercise of the Option if the disposition constitutes a “disqualifying disposition” within the meaning of Sections 421 and 422 of the Code (or any successor provision of the Code then in effect relating to disqualifying dispositions). Such notice shall be provided by the Optionee to the Committee in writing within 10 days of any such disqualifying disposition.

(d)    Rights as a Stockholder. Neither the Optionee nor the Optionee’s transferee or representative shall have any rights as a stockholder with respect to any Shares subject to this Option until the Option has been exercised and Share certificates have been issued to the Optionee, transferee or representative, as the case may be.

(e)    Ratification of Actions. By accepting this Agreement, the Optionee and each person claiming under or through the Optionee shall be conclusively deemed to have indicated the Optionee’s acceptance and ratification of, and consent to, any action taken under the Plan or this Agreement and Notice of Stock Option Grant by the Company, the Board, or the Committee.

(f)    Notice. Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. Notice shall be addressed to the Company at its principal executive office and to the Optionee at the address that he or she most recently provided in writing to the Company.

(g)    Choice of Law. This Agreement and the Notice of Stock Option Grant shall be governed by, and construed in accordance with, the laws of Indiana, without regard to any conflicts of law or choice of law rule or principle that might otherwise cause the Plan, this Agreement or the Notice of Stock Option Grant to be governed by or construed in accordance with the substantive law of another jurisdiction.

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(h)    Arbitration. Subject to the Plan, any dispute or claim arising out of or relating to the Plan, this Agreement or the Notice of Stock Option Grant shall be settled by binding arbitration before a single arbitrator in Indianapolis, Indiana and in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The arbitrator shall decide any issues submitted in accordance with the provisions and commercial purposes of the Plan, this Agreement and the Notice of Stock Option Grant, provided that all substantive questions of law shall be determined in accordance with the state and Federal laws applicable in Indiana, without regard to internal principles relating to conflict of laws.

(i)    Modification or Amendment. This Agreement may only be modified or amended by written agreement executed by the parties hereto; provided, however, that the adjustments permitted pursuant to the Plan may be made without such written agreement.

(j)    Severability. In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of this Agreement, and this Agreement shall be construed and enforced as if such illegal or invalid provision had not been included.

(k)    References to Plan. All references to the Plan (or to a Section or Article of the Plan) shall be deemed references to the Plan (or the Section or Article) as may be amended from time to time.

(l)    Section 409A Compliance. To the extent applicable, it is intended that the Plan and this Agreement comply with the requirements of Code Section 409A and any related regulations or other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service and the Plan and the Award Agreement shall be interpreted accordingly.

5

EX-10.3

Exhibit 10.3

REMY INTERNATIONAL, INC.

OMNIBUS INCENTIVE PLAN

Notice of Restricted Stock Grant for Employees

You (the “Grantee”) have been granted the following award of restricted Common Stock (the “Restricted Stock”) of Remy International, Inc. (the “Company”), pursuant to the Remy International, Inc. Omnibus Incentive Plan (the “Plan”):

Name of Grantee:	Participant Name
Number of Shares of Restricted Stock Granted:	XXX, 50% of which will be “Time Vested Shares” and 50% of which will be “Performance Vested Shares.”
Effective Date of Grant:	February [__], 2014
Vesting and Period of Restriction:	Subject to the terms of the Plan and the Restricted Stock Award Agreement attached hereto (the “Agreement”), the Period of Restriction shall lapse, and the shares of Restricted Stock granted hereunder shall vest and become free of the forfeiture and transfer restrictions contained in the Agreement (except as otherwise provided in Section 2(b) of the Agreement), (i) with respect to the “Time Vested Shares,” one-third of the total number of Time Vested Shares on each anniversary of the Effective Date of Grant, until fully vested, and (ii) with respect to the “Performance Vested Shares” as set forth on Exhibit A to this Agreement.

By your signature and the signature of the Company’s representative below, you and the Company agree and acknowledge that this grant of Restricted Stock is granted under and governed by the terms and conditions of the Plan and the attached Restricted Stock Award Agreement, which are incorporated herein by reference, and that you have been provided with a copy of the Plan and Restricted Stock Agreement.

Grantee:	Remy International, Inc.
By:	By:
Name:	Name:
Date:	Title:
Address:	Date:

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REMY INTERNATIONAL, INC.

OMNIBUS INCENTIVE PLAN

Restricted Stock Award Agreement for Employees

SECTION 1. GRANT OF RESTRICTED STOCK

(a) Restricted Stock. On the terms and conditions set forth in the Notice of Restricted Stock Grant and this Restricted Stock Award Agreement (the “Agreement”), the Company grants to the Grantee on the Effective Date of Grant, the Shares of Restricted Stock (the “Restricted Stock”) set forth in the Notice of Restricted Stock Grant.

(b) Plan and Defined Terms. The Restricted Stock is granted pursuant to the Plan. All terms, provisions, and conditions applicable to the Restricted Stock set forth in the Plan and not set forth herein are hereby incorporated by reference herein. To the extent any provision hereof is inconsistent with a provision of the Plan, the provisions of the Plan will govern. All capitalized terms that are used in the Notice of Restricted Stock Grant or this Agreement and not otherwise defined therein or herein shall have the meanings ascribed to them in the Plan.

SECTION 2. FORFEITURE AND TRANSFER RESTRICTIONS

(a)Forfeiture.

(i)Except as described in Section 2(a)(ii) and (iii) below, if the Grantee’s employment is terminated prior to the third anniversary date of the Effective Date of Grant, the Grantee shall, for no consideration, forfeit to the Company the Shares of Restricted Stock to the extent such Shares are subject to a Period of Restriction at the time of such termination.

(ii)If the Grantee’s employment is terminated due to the Employee’s death or Disability, as such term is defined below, a portion of the Time Vested Shares which on the date of termination of employment remain subject to a Period of Restriction shall vest and become free of the forfeiture and transfer restrictions contained in the Agreement (except as otherwise provided in Section 2(b) of this Agreement). The portion which shall vest shall be determined by the following formula (rounded to the nearest whole Share):

(A x B) – C, where

A = the total number of Time Vested Shares granted under this Agreement,

B = the number of completed months to the date of termination of employment since the Effective Date of Grant divided by 36, and

C = the number of Time Vested Shares granted under this Agreement which vested on or prior to the date of termination of employment.

All Performance Vested Shares and all Time Vested Shares which were subject to a Period of Restrictions on the date of employment termination and which will not be vested pursuant to the first two sentences of this Section 2(a)(ii), shall be forfeited to the Company, for no consideration.

(iii)Unless otherwise specifically prohibited under applicable laws, or by the rules and regulations of any governing governmental agencies or national securities exchanges, if there occurs a Change in Control, as such term is defined in the Plan, the Award shall immediately vest if the Grantee’s employment is terminated without Cause, as such term is defined in Grantee’s employment agreement with the Company or if none, then as such term is defined below, or for Good Reason, as such term is defined below, prior to the third year anniversary of the Effective Date of Grant. This paragraph shall

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supersede the provisions set forth in Article 17 of the Plan, and to the extent any provision in this paragraph is inconsistent with Article 17 of the Plan, the provisions of this paragraph will govern.

(iv) The term “Cause” shall have the meaning ascribed to such term in the Grantee’s employment agreement with the Company or any Subsidiary. If the Grantee’s employment agreement does not define the term “Cause,” or if the Grantee has not entered into an employment agreement with the Company or any Subsidiary, the term “Cause” shall mean (A) the willful engaging by the Grantee in misconduct that is demonstrably injurious to the Company or any Parent or Subsidiary (monetarily or otherwise), (B) the Grantee’s conviction of, or pleading guilty or nolo contendere to, a felony, or (C) the Grantee’s violation of any confidentiality, non-solicitation, or non-competition covenant to which the Grantee is subject.

(v)The term “Disability” shall have the meaning ascribed to such term in the Grantee’s employment agreement with the Company or any Subsidiary. If the Grantee’s employment agreement does not define the term “Disability,” or if the Grantee has not entered into an employment agreement with the Company or any Subsidiary, the term “Disability” shall mean the Grantee’s entitlement to long-term disability benefits pursuant to the long-term disability plan maintained by the Company or in which the Company’s employees participate.

(vi)    The term “Good Reason” shall have the meaning ascribed to such term in the Optionee’s employment agreement with the Company or any Subsidiary. If the Optionee’s employment agreement does not define “Good Reason”, or if the Optionee has not entered into an employment agreement with the Company or any subsidiary, then this term shall not apply.

(vii)    Any Performance Vested Shares which have not previously been forfeited and which do not satisfy the performance criteria for the applicable Performance Period, shall on the last day of the applicable Performance Period be forfeited to the Company, for no consideration.

(viii)     Except as otherwise provided herein, this grant is being make outside of Grantee’s employment agreement, if any. This grant shall not be subject to any employment agreement provision accelerating the vesting of any unvested equity upon Grantee’s termination of employment.

(b)Transfer Restrictions. During the Period of Restriction, the Restricted Stock may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of, to the extent such Shares are subject to a Period of Restriction. If the Grantee is an Officer (as defined in Rule 16a-1(f) of the Exchange Act), then during the six (6) month period which begins the first day following the date a Period of Restriction lapses, (50%) of the Shares to which the Period of Restrictions has lapsed on such date may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of; provided, however, this sentence shall not prohibit the Grantee from exchanging or otherwise disposing of the Restricted Stock in connection with a Change in Control or other transaction in which Shares held by other company shareholders are required to be exchanged or otherwise disposed of.

(c)Lapse of Restrictions. The Period of Restriction shall lapse as to the Restricted Stock in accordance with the Notice of Restricted Stock Grant and the terms of this Agreement. Subject to the terms of the Plan and Section 6(a) hereof, upon lapse of the Period of Restriction, the Grantee shall own the Shares that are subject to this Agreement free of all restrictions other than the six (6) month holding

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period following the Period of Restriction as provided in Section 2(b) of this Agreement otherwise imposed by this Agreement.

SECTION 3. STOCK CERTIFICATES

As soon as practicable following the grant of Restricted Stock, the Shares of Restricted Stock shall be registered in the Grantee’s name in certificate or book-entry form. If a certificate is issued, it shall bear an appropriate legend referring to the restrictions and it shall be held by the Company, or its agent, on behalf of the Grantee until the Period of Restriction has lapsed. If the Shares are registered in book-entry form, the restrictions shall be placed on the book-entry registration. The Grantee may be required to execute and return to the Company a blank stock power for each Restricted Stock certificate (or instruction letter, with respect to Shares registered in book-entry form), which will permit transfer to the Company, without further action, of all or any portion of the Restricted Stock that is forfeited in accordance with this Agreement.

SECTION 4. SHAREHOLDER RIGHTS

Except for the transfer and dividend restrictions, and subject to such other restrictions, if any, as determined by the Committee, the Grantee shall have all other rights of a holder of Shares, including the right to vote (or to execute proxies for voting) such Shares. Unless otherwise determined by the Committee, if all or part of a dividend in respect of the Restricted Stock is paid in Shares or any other security issued by the Company, such Shares or other securities shall be held by the Company subject to the same restrictions as the Restricted Stock in respect of which the dividend was paid.

SECTION 5. DIVIDENDS

(a)Any dividends paid with respect to Shares which remain subject to a Period of Restriction shall not be paid to the Grantee but shall be held by the Company.

(b)Such held dividends shall be subject to the same Period of Restriction as the Shares to which they relate.

(c)Any dividends held pursuant to this Section 5 which are attributable to Shares which vest pursuant to this Agreement shall be paid to the Grantee within 30 days of the applicable vesting date.

(d)Dividends attributable to Shares forfeited pursuant to Section 2 of this Agreement shall be forfeited to the Company on the date such Shares are forfeited.

SECTION 6. MISCELLANEOUS PROVISIONS

(a)Tax Withholding. Pursuant to Article 20 of the Plan, the Committee shall have the power and right to deduct or withhold, or require the Grantee to remit to the Company, an amount sufficient to satisfy any federal, state and local taxes (including the Grantee’s FICA obligations) required by law to be withheld with respect to this Award. The Committee may condition the delivery of Shares upon the Grantee’s satisfaction of such withholding obligations. The Grantee may elect to satisfy all or part of such withholding requirement by tendering previously-owned Shares or by having the Company withhold Shares having a Fair Market Value equal to the minimum statutory withholding (based on minimum statutory withholding rates for federal, state and local tax purposes, as applicable, including payroll taxes) that could be imposed on the transaction, and, to the extent the Committee so permits, amounts in excess of the minimum statutory withholding to the extent it would not result in additional accounting expense. Such election shall be irrevocable, made in writing, signed by the Grantee, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

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(b)Ratification of Actions. By accepting this Agreement, the Grantee and each person claiming under or through the Grantee shall be conclusively deemed to have indicated the Grantee’s acceptance and ratification of, and consent to, any action taken under the Plan or this Agreement and Notice of Restricted Stock Grant by the Company, the Board or the Committee.

(c)Notice. Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. Notice shall be addressed to the Company at its principal executive office and to the Grantee at the address that he or she most recently provided in writing to the Company.

(d)Choice of Law. This Agreement and the Notice of Restricted Stock Grant shall be governed by, and construed in accordance with, the laws of Indiana, without regard to any conflicts of law or choice of law rule or principle that might otherwise cause the Plan, this Agreement or the Notice of Restricted Stock Grant to be governed by or construed in accordance with the substantive law of another jurisdiction.

(e)Arbitration. Subject to, and in accordance with the provisions of Article 3 of the Plan, any dispute or claim arising out of or relating to the Plan, this Agreement or the Notice of Restricted Stock Grant shall be settled by binding arbitration before a single arbitrator in Indianapolis, Indiana and in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The arbitrator shall decide any issues submitted in accordance with the provisions and commercial purposes of the Plan, this Agreement and the Notice of Restricted Stock Grant, provided that all substantive questions of law shall be determined in accordance with the state and federal laws applicable in Indiana, without regard to internal principles relating to conflict of laws.

(f)Modification or Amendment. This Agreement may only be modified or amended by written agreement executed by the parties hereto; provided, however, that the adjustments permitted pursuant to Section 4.3 of the Plan may be made without such written agreement.

(g)Severability. In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of this Agreement, and this Agreement shall be construed and enforced as if such illegal or invalid provision had not been included.

(h)References to Plan. All references to the Plan shall be deemed references to the Plan as may be amended from time to time.

(i)Section 409A Compliance. To the extent applicable, it is intended that the Plan and this Agreement comply with the requirements of Code Section 409A and any related regulations or other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service and the Plan and the Award Agreement shall be interpreted accordingly.

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EX-10.4

REMY INTERNATIONAL, INC.

OMNIBUS INCENTIVE PLAN

Notice of Stock Option Grant for Employees

You (the “Optionee”) have been granted the following option to purchase Class A Common Stock of Remy International, Inc. (the “Company”), par value $0.0001 per share (“Share”), pursuant to the Remy International, Inc. Omnibus Incentive Plan (the “Plan”):

Name of Optionee:	Participant Name
Total Number of Shares Subject to Option:
Type of Option:	Nonqualified.
Exercise Price Per Share:	$
Effective Date of Grant:	February [__], 2014
Vesting Schedule:	Subject to the terms of the Plan and the Stock Option Agreement attached hereto, the right to exercise this Option shall vest with respect to one-third of the total number of Shares subject to this Option on each anniversary of the Effective Date of the grant.
Expiration Date:	7th Anniversary of Effective Date of Grant The Option is subject to earlier expiration, as provided in Section 3(b) of the attached Stock Option Agreement.

By your acceptance/signature, you agree and acknowledge that this Option is granted under and governed by the terms and conditions of the Plan and the attached Stock Option Agreement, which are incorporated herein by reference, and that you have been provided with a copy of the Plan and Stock Option Agreement.

Grantee:	Remy International, Inc.
By:	By:
Name:	Name:
Date:	Title:
Address:	Date:

1

REMY INTERNATIONAL, INC.

OMNIBUS INCENTIVE PLAN

Stock Option Agreement for Employees

SECTION 1.GRANT OF OPTION.

(a)Option. On the terms and conditions set forth in the Notice of Stock Option Grant, which is incorporated by reference, and this Stock Option Agreement (the “Agreement”), the Company grants to the Optionee on the Effective Date of Grant the Option to purchase at the Exercise Price the number of Shares set forth in the Notice of Stock Option Grant.

(b)Plan and Defined Terms. The Option is granted pursuant to the Plan. All terms, provisions, and conditions applicable to the Option set forth in the Plan and not set forth herein are hereby incorporated by reference herein. To the extent any provision hereof is inconsistent with a provision of the Plan, the provisions of the Plan will govern. All capitalized terms that are used in the Notice of Stock Option Grant or this Agreement and not otherwise defined therein or herein shall have the meanings ascribed to them in the Plan.

SECTION 2.RIGHT TO EXERCISE.

The Option hereby granted shall be exercised by written notice to the Committee, specifying the number of Shares the Optionee desires to purchase together with provision for payment of the Exercise Price. Subject to such limitations as the Committee may impose (including prohibition of one more of the following payment methods), payment of the Exercise Price may be made by (a) check payable to the order of the Company, for an amount in United States dollars equal to the aggregate Exercise Price of such Shares, (b) by tendering to the Company Shares having an aggregate Fair Market Value (as of the trading date immediately preceding the date of exercise) equal to such Exercise Price, (c) by broker-assisted exercise, or (d) by a combination of such methods. The Company may require the Optionee to furnish or execute such other documents as the Company shall reasonably deem necessary (i) to evidence such exercise and (ii) to comply with or satisfy the requirements of the Securities Act of 1933, as amended, the Exchange Act, applicable state or non-U.S. securities laws or any other law.

SECTION 3.TERM AND EXPIRATION.

(a)Basic Term. Subject to earlier termination pursuant to the terms hereof, the Option shall expire on the expiration date set forth in the Notice of Stock Option Grant.

(b)Termination of Employment. If the Optionee’s employment is terminated, the Option shall expire on the earliest of the following occasions:

(i)The expiration date set forth in the Notice of Stock Option Grant;

(ii)The date three months following the termination of the Optionee’s employment or service for any reason other than death or Disability;

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(iii)The date one year following the termination of the Optionee’s employment or service due to death or Disability; or

(iv)The date of termination of the Optionee’s employment or service for Cause.

The Optionee may exercise all or part of this Option at any time before its expiration under the preceding sentence, but, subject to the following sentence, only to the extent that the Option had become vested in accordance with the terms of the Notice of Stock Option or this Agreement before the Optionee’s employment or service terminated. When the Optionee’s employment or service terminates, unless such termination occurs following a Change in Control, this Option shall expire immediately with respect to the number of Shares for which the Option is not yet vested. If the Optionee dies after termination of employment or service, but before the expiration of the Option, all or part of this Option may be exercised (prior to expiration) by the personal representative of the Optionee or by any person who has acquired this Option directly from the Optionee by will, bequest or inheritance, but only to the extent that the Option was vested and exercisable upon termination of the Optionee’s employment or service.

Unless otherwise specifically prohibited under applicable laws, or by the rules and regulations of any governing governmental agencies or national securities exchanges, if there occurs a Change in Control, as such term is defined in the Plan, the Award shall immediately vest if the Optionee’s employment is terminated without Cause, as such term is defined in Grantee’s employment agreement with the Company or if none, then as such term is defined below, or for Good Reason, as such term is defined below, prior to the third year anniversary of the Effective Date of Grant. This paragraph shall supersede the provisions set forth in Article 17 of the Plan, and to the extent any provision in this paragraph is inconsistent with Article 17 of the Plan, the provisions of this paragraph will govern.

Except as otherwise provided herein, this grant is being make outside of Optionee’s employment agreement, if any. This grant shall not be subject to any employment agreement provision accelerating the vesting of any unvested equity upon Grantee’s termination of employment.

(c)Definition of “Cause.” The term “Cause” shall have the meaning ascribed to such term in the Optionee’s employment agreement with the Company or any Subsidiary. If the Optionee’s employment agreement does not define the term “Cause,” or if the Optionee has not entered into an employment agreement with the Company or any Subsidiary, the term “Cause” shall mean (i) the willful engaging by the Optionee in misconduct that is demonstrably injurious to the Company or any Parent or Subsidiary (monetarily or otherwise), (ii) the Optionee’s conviction of, or pleading guilty or nolo contendere to, a felony involving moral turpitude, or (iii) the Optionee’s violation of any confidentiality, non-solicitation, or non-competition covenant to which the Optionee is subject.

(d)     Definition of “Good Reason.” The term “Good Reason” shall have the meaning ascribed to such term in the Optionee’s employment agreement with the Company or any Subsidiary. If the Optionee’s employment agreement does not define “Good Reason”, or if the Optionee has not entered into an employment agreement with the Company or any subsidiary, then this term shall not apply.

(e)    Definition of “Disability.” The term “Disability” shall have the meaning ascribed to such term in the Optionee’s employment agreement with the Company or any Subsidiary. If the Optionee’s employment agreement does not define the term “Disability,” or if the Optionee has not entered into an employment agreement with the Company or any Subsidiary, the term “Disability” shall mean the

3

Optionee’s entitlement to long-term disability benefits pursuant to the long-term disability plan maintained by the Company or in which the Company’s employees participate.

SECTION 4.TRANSFERABILITY OF OPTION.

(a)Generally. Except as provided in Section 4(b) herein, the Option shall not be transferable by the Optionee other than by will or the laws of descent and distribution, and the Option shall be exercisable during the Optionee’s lifetime only by the Optionee or on his or her behalf by the Optionee's guardian or legal representative.

(b)Transfers to Family Members. Notwithstanding Section 4(a) herein, if the Option is a Nonqualified Stock Option, the Optionee may transfer the Option for no consideration to or for the benefit of a Family Member, subject to such limits as the Committee may establish, and the transferee shall remain subject to all the terms and conditions applicable to the Option.

(c)Definition of “Family Member.” For purposes of this Agreement, the term “Family Member” shall mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the Optionee (including adoptive relationships), any person sharing the same household as the Optionee (other than a tenant or employee), a trust in which the above persons have more than fifty percent of the beneficial interests, a foundation in which the Optionee or the above persons control the management of assets, and any other entity in which the Optionee or the above persons own more than fifty percent of the voting interests.

SECTION 5.MISCELLANEOUS PROVISIONS.

(a)Acknowledgements. The Optionee hereby acknowledges that he or she has read and understands the terms of the Plan and this Agreement, and agrees to be bound by their respective terms and conditions. The Optionee acknowledges that there may be tax consequences upon the exercise or transfer of the Option and that the Optionee should consult an independent tax advisor prior to any exercise or transfer of the Option.

(b)Tax Withholding. Pursuant to the Plan, the Committee shall have the power and the right to deduct or withhold, or require the Optionee to remit to the Company, an amount sufficient to satisfy any federal, state and local taxes (including the Optionee’s FICA obligations) required by law to be withheld with respect to this Option. The Committee may condition the delivery of Shares upon the Optionee’s satisfaction of such withholding obligations. The Optionee may elect to satisfy all or part of such withholding requirement by tendering previously-owned Shares or by having the Company withhold Shares having a Fair Market Value equal to the minimum statutory withholding (based on minimum statutory withholding rates for federal, state and local tax purposes, as applicable, including the Optionee’s FICA taxes) that could be imposed on the transaction, and, to the extent the Committee so permits, amounts in excess of the minimum statutory withholding to the extent it would not result in additional accounting expense. Such election shall be irrevocable, made in writing and signed by the Optionee, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

(c)Notice Concerning Disqualifying Dispositions. If the Option is an Incentive Stock Option, the Optionee shall notify the Committee of any disposition of Shares issued pursuant to the exercise of the Option if the disposition constitutes a “disqualifying disposition” within the meaning of Sections 421

4

and 422 of the Code (or any successor provision of the Code then in effect relating to disqualifying dispositions). Such notice shall be provided by the Optionee to the Committee in writing within 10 days of any such disqualifying disposition.

(d)Rights as a Stockholder. Neither the Optionee nor the Optionee’s transferee or representative shall have any rights as a stockholder with respect to any Shares subject to this Option until the Option has been exercised and Share certificates have been issued to the Optionee, transferee or representative, as the case may be.

(e)Ratification of Actions. By accepting this Agreement, the Optionee and each person claiming under or through the Optionee shall be conclusively deemed to have indicated the Optionee’s acceptance and ratification of, and consent to, any action taken under the Plan or this Agreement and Notice of Stock Option Grant by the Company, the Board, or the Committee.

(f)Notice. Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. Notice shall be addressed to the Company at its principal executive office and to the Optionee at the address that he or she most recently provided in writing to the Company.

(g)Choice of Law. This Agreement and the Notice of Stock Option Grant shall be governed by, and construed in accordance with, the laws of Indiana, without regard to any conflicts of law or choice of law rule or principle that might otherwise cause the Plan, this Agreement or the Notice of Stock Option Grant to be governed by or construed in accordance with the substantive law of another jurisdiction.

(h)Arbitration. Subject to the Plan, any dispute or claim arising out of or relating to the Plan, this Agreement or the Notice of Stock Option Grant shall be settled by binding arbitration before a single arbitrator in Indianapolis, Indiana and in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The arbitrator shall decide any issues submitted in accordance with the provisions and commercial purposes of the Plan, this Agreement and the Notice of Stock Option Grant, provided that all substantive questions of law shall be determined in accordance with the state and Federal laws applicable in Indiana, without regard to internal principles relating to conflict of laws.

(i)Modification or Amendment. This Agreement may only be modified or amended by written agreement executed by the parties hereto; provided, however, that the adjustments permitted pursuant to the Plan may be made without such written agreement.

(j)Severability. In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of this Agreement, and this Agreement shall be construed and enforced as if such illegal or invalid provision had not been included.

(k)References to Plan. All references to the Plan (or to a Section or Article of the Plan) shall be deemed references to the Plan (or the Section or Article) as may be amended from time to time.

(l)Section 409A Compliance. To the extent applicable, it is intended that the Plan and this Agreement comply with the requirements of Code Section 409A and any related regulations or other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service and the Plan and the Award Agreement shall be interpreted accordingly.

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EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, John J. Pittas, certify that:

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

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

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

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

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

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

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

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of 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 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: April 30, 2014
	/s/ John J. Pittas
	John J. Pittas
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Fred Knechtel, certify that:

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

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

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

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

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

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

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

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of 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 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: April 30, 2014
	/s/ Fred Knechtel
	Fred Knechtel
	Senior Vice President, Chief Financial Officer and Treasurer
	(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002     

In connection with the filing of this quarterly report on Form 10-Q of Remy International, Inc. (the "Company") for the period ended March 31, 2014 with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certifies that he is the duly appointed and acting Chief Executive Officer of the Company, and hereby further certifies, to the best of his knowledge and belief, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

In witness whereof, the undersigned has executed and delivered this certificate as of the date set forth opposite his signature below.

Date: April 30, 2014
By:	/s/ John J. Pittas
	John J. Pittas
	President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS

ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002     

In connection with the filing of this quarterly report on Form 10-Q of Remy International, Inc. (the "Company") for the period ended March 31, 2014 with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certifies that he is the duly appointed and acting Chief Financial Officer of the Company, and hereby further certifies to the best of such his knowledge and belief, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

In witness whereof, the undersigned has executed and delivered this certificate as of the date set forth opposite his signature below.

Date: April 30, 2014
By:	/s/ Fred Knechtel
	Fred Knechtel
	Senior Vice President, Chief Financial Officer and Treasurer
	(Principal Financial Officer)

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Employee benefit plans (Tables)

3 Months Ended

Mar. 31, 2014

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Schedule of Defined Benefit Plans Disclosures

The components of expense for the plans were as follows (in thousands):

Pension benefits:
	Three months ended March 31,
Components of expense	2014			2013
Service costs	$	275		$	—
Interest costs	754			642
Expected return on plan assets	(765		)	(612		)
Recognized net actuarial loss	164			344
Net periodic pension cost	$	428		$	374
Postretirement health care and life insurance plans:
	Three months ended March 31,
Components of expense	2014			2013
Interest costs	$	20		$	19
Amortization of prior service cost	(454		)	(454		)
Recognized net actuarial loss	450			456
Net periodic cost	$	16		$	21

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Goodwill and other intangible assets (Details) (USD $) In Thousands, unless otherwise specified																3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014 Definite-Life Intangible	Dec. 31, 2013 Definite-Life Intangible	Mar. 31, 2014 Definite-Life Intangible Intellectual Property	Dec. 31, 2013 Definite-Life Intangible Intellectual Property	Mar. 31, 2014 Definite-Life Intangible Customer Relationships	Dec. 31, 2013 Definite-Life Intangible Customer Relationships	Mar. 31, 2014 Definite-Life Intangible Customer Contracts	Dec. 31, 2013 Definite-Life Intangible Customer Contracts	Mar. 31, 2014 Definite-Life Intangible Lease Agreements	Dec. 31, 2013 Definite-Life Intangible Lease Agreements	Mar. 31, 2014 Indefinite-Life Intagible Trade Names	Dec. 31, 2013 Indefinite-Life Intagible Trade Names	Mar. 31, 2014 USA Industries Acquisition	Mar. 31, 2014 USA Industries Acquisition Customer Relationships	Mar. 31, 2014 USA Industries Acquisition Lease Agreements	Mar. 31, 2014 USA Industries Acquisition Trade Names
Intangible Assets and Goodwill
Finite-Lived Intangible Assets, Gross			$ 162,106	$ 150,099	$ 17,281	$ 16,810	$ 46,500	$ 35,500	$ 97,997	$ 97,789	$ 328	$ 0
Finite-Lived Intangible Assets, Accumulated Amortization			111,653	108,390	4,788	4,583	18,702	17,746	88,117	86,061	46	0
Finite-Lived Intangible Assets, Net			50,453	41,709	12,493	12,227	27,798	17,754	9,880	11,728	282	0
Indefinite-Lived Intangible Assets, Gross													49,200	48,200
Indefinite-Lived Intangible Assets, Accumulated Amortization													0	0
Indefinite-Lived Intangible Assets, Net													49,200	48,200
Intangible Assets, Gross (Excluding Goodwill)	211,306	198,299
Intangible Assets, Accumulated Amortization	111,653	108,390
Intangible Assets, Net (Excluding Goodwill)	99,653	89,909
Goodwill, Gross	286,233	271,418
Goodwill, Amortization	0	0
Goodwill, Net	286,233	271,418
Finite-lived Intangible Assets Acquired																11,000	328
Indefinite-lived Intangible Assets Acquired																		1,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life																10 years
Business Acquisition, Goodwill, Expected Tax Deductible Amount															$ 14,815

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Financial instruments Commodity Price Risk (Details) (Commodity Contract, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Commodity Contract
Derivative, number of instruments held	29	32
Investment contract weight	5,660	6,368
Maximum Term of Credit Risk Derivatives	18 months
Accumulated unrealized gains/losses recorded in accumulated other comprehensive income, before tax	$ (3,818)	$ (1,319)
Cash flow hedge gain/loss to be reclassified within twelve months	$ (3,363)

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Income taxes income taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income tax expense	$ 5,711	$ 1,712
Federal Income Tax Expense (Benefit), Continuing Operations	3,587	147
State and Local Income Tax Expense (Benefit), Continuing Operations	14	8
Foreign Income Tax Expense (Benefit), Continuing Operations	2,110	1,557
Unrecognized tax benefits	12,147		11,456
Unrecognized tax benefits, period increase (decrease)	$ 691	$ 315

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Other noncurrent assets (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Other noncurrent assets [Abstract]
Noncurrent deferred tax assets	$ 20,636	$ 22,113
Noncurrent core return rights	$ 41,103	$ 37,250

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Financial instruments (Details) (Foreign Exchange Contract) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Mar. 31, 2014 South Korean Won Forward USD ($)	Dec. 31, 2013 South Korean Won Forward USD ($)	Mar. 31, 2014 Mexican Peso Contracts USD ($)	Dec. 31, 2013 Mexican Peso Contracts USD ($)	Mar. 31, 2014 Brazilian Real Forward USD ($)	Dec. 31, 2013 Brazilian Real Forward USD ($)	Mar. 31, 2014 Hungary Forint Forward EUR (€)	Dec. 31, 2013 Hungary Forint Forward EUR (€)	Mar. 31, 2014 Great Britain Pound Forward GBP (£)	Dec. 31, 2013 Great Britain Pound Forward GBP (£)
Derivative
Maximum Term of Credit Risk Derivatives	18 months
Accumulated unrealized gains/losses recorded in accumulated other comprehensive income, net of tax	$ 998	$ 2,520
Cash flow hedge gain/loss to be reclassified within twelve months	961
Notional amount of foreign currency derivatives			$ 77,934	$ 74,368	$ 73,283	$ 73,520	$ 20,463	$ 11,427	€ 13,678	€ 14,416	£ 2,805	£ 3,735

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Goodwill and other intangible assets (Tables)

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The following table represents the carrying value of other intangible assets:

	As of March 31, 2014						As of December 31, 2013
(In thousands)	Carrying value		Accumulated amortization		Net		Carrying value		Accumulated amortization		Net
Definite-life intangibles:
Intellectual property	$	17,281	$	4,788	$	12,493	$	16,810	$	4,583	$	12,227
Customer relationships	46,500		18,702		27,798		35,500		17,746		17,754
Customer contract	97,997		88,117		9,880		97,789		86,061		11,728
Lease intangible	328		46		282		—		—		—
Total	162,106		111,653		50,453		150,099		108,390		41,709
Indefinite-life intangibles:
Trade names	49,200		—		49,200		48,200		—		48,200
Intangible assets, net	$	211,306	$	111,653	$	99,653	$	198,299	$	108,390	$	89,909
Goodwill	$	286,233	$	—	$	286,233	$	271,418	$	—	$	271,418

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Business segment and geographical information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information
Net sales	$ 300,294	$ 281,726
United States
Segment Reporting Information
Net sales	198,907	190,022
Europe
Segment Reporting Information
Net sales	23,075	24,460
Other Americas
Segment Reporting Information
Net sales	10,880	14,159
Asia Pacific
Segment Reporting Information
Net sales	$ 67,432	$ 53,085

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Other current liabilities and accrued expenses Warranty (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Other current liabilities and accrued expenses [Abstract]
Balance at beginning of period	$ 30,781	$ 27,194
Provision for warranty	12,170	9,317
Payments and charges against the accrual	(11,825)	(9,514)
Increased warranty accruals due to business acquisitions (Note 20)	1,363	0
Balance at end of period	$ 32,489	$ 26,997

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Executive officer separation (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Executive officer separation [Abstract]
Executive Officer Separation, Payment	$ 7,000
Executive Officer Separation, Diluted Earnings Per Share Impact	$ 0.14

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Employee benefit plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Defined Benefit Plan Disclosure
Current year contributions	$ 828	$ 348
Pension benefits:
Defined Benefit Plan Disclosure
Service costs	275	0
Interest costs	754	642
Expected return on plan assets	(765)	(612)
Recognized net actuarial loss	164	344
Net periodic cost (benefit)	428	374
Postretirement health care and life insurance plans:
Defined Benefit Plan Disclosure
Interest costs	20	19
Amortization of prior service cost	(454)	(454)
Recognized net actuarial loss	450	456
Net periodic cost (benefit)	16	21
United States
Defined Benefit Plan Disclosure
Total expected current year contributions	3,297
International
Defined Benefit Plan Disclosure
Total expected current year contributions	$ 1,486

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Other commitments and contingencies

3 Months Ended

Mar. 31, 2014

Other commitments and contingencies [Abstract]

Commitments and Contingencies Disclosure

19. Other commitments and contingencies

We are party to various legal actions and administrative proceedings and subject to various claims arising in the ordinary course of business, including those relating to commercial transactions, product liability, safety, health, taxes, environmental and other matters. We review these matters on an ongoing basis and follow the provisions of FASB ASC Topic 450, Contingencies, when making accrual and disclosure decisions. For legal proceedings where it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and which represents our best estimate has been recorded in our accompanying consolidated financial statements. We believe that the ultimate liability, if any, in excess of amounts already provided for in our accompanying consolidated financial statements on the disposition of these matters and the matters discussed below would not have a material adverse effect on our financial position.

Remy Componentes S. de R.L. de C.V. vs. Corporativo Industrial y Empresarial Lorva, S.A. de C.V. ("Lorva")

In December 2012, Lorva, a former vendor, filed a judicial claim against Remy in the federal court in San Luis Potosi, Mexico requesting the rescission of two alleged operational service contracts. Remy filed a timely response in January 2013. The collection of evidence and witness testimony concluded in the civil case, and the parties filed their written closing argument briefs in the fourth quarter of 2013. In March 2014, the first instance sentence was issued by the court determining Lorva has the right to rescind both contracts and collect the benefit sought in the amount of approximately $17,380,000 for liquidated damages and outstanding invoices. In April 2014, we filed an appeal to this ruling in the Fourth District Court in San Luis Potosi, Mexico. We believe it is probable that we should prevail on final appeal based on legal arguments and the facts of this case. This appeal and any necessary final appeal is expected to take approximately twelve to eighteen months to complete. As of March 31, 2014, we have not accrued for the amount of this judgment, but we continue to maintain an immaterial accrual related to this matter.

Remy, Inc. vs. Tecnomatic S.p.A.

In September 2008, Remy International, Inc. filed suit against Tecnomatic in the U.S. District Court, Southern District of Indiana, Indianapolis Division (Civil Action No.: 1:08-CV-1227-SEB-JMS), titled Remy, Inc. vs. Tecnomatic S.p.A., for breach of contract, among other claims, with respect to a machine Tecnomatic sold to us to build stators. On December 9, 2008, Tecnomatic filed a counterclaim in the amount of $111,000.

In March 2011, Tecnomatic filed a lawsuit in U.S. District Court, N. D. of Illinois, against Remy International, Inc., its Mexican subsidiaries and two other entities alleging breach of contract and the misappropriation of trade secrets, and requested damages of $110,000,000. In June 2011, the Illinois Court granted our motion to transfer the case to U.S. District Court, Southern District of Indiana, Indianapolis Division, and the two pending actions were consolidated.

After multiple motions by the respective parties and rulings by the Court on the pleadings, certain original claims by Tecnomatic have been dismissed or narrowed. The Court has permitted Tecnomatic to amend its Complaint to add other new claims. Most recently, Tecnomatic was granted leave by the Court to file a Third Amended Complaint which was filed by Tecnomatic in January 2014. We moved to dismiss that complaint in part in February 2014, and the motion is currently pending with the Court. Tecnomatic filed an opposition to our pending motion to dismiss the Third Amended Complaint in February 2014. No trial date has been set, but it is anticipated to commence during the second quarter of 2015. Due to the current stage of this case, it is not possible to make a meaningful estimate of the amount or range of loss to the Company, if any, that could result from this case at this time. As such, we have no amounts accrued as of March 31, 2014 for this case. We intend to vigorously defend this case.

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Financial instruments Income Statement Locations (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Designated as Hedging Instrument
Derivative Instruments, Gain (Loss)
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	$ (5,034)	$ (1,564)
Amount of gain (loss) reclassified from AOCI into income (effective portion)	(51)	1,442
Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	(37)	(29)
Designated as Hedging Instrument | Commodity Contract
Derivative Instruments, Gain (Loss)
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	(3,447)	(2,102)
Amount of gain (loss) reclassified from AOCI into income (effective portion)	(948)	108
Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	(37)	(29)
Designated as Hedging Instrument | Foreign Exchange Contract
Derivative Instruments, Gain (Loss)
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	(1,124)	808
Amount of gain (loss) reclassified from AOCI into income (effective portion)	897	1,334
Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	0	0
Designated as Hedging Instrument | Interest Rate Swap
Derivative Instruments, Gain (Loss)
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	(463)	(270)
Amount of gain (loss) reclassified from AOCI into income (effective portion)	0	0
Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	0	0
Not Designated as Hedging Instrument | Interest Rate Swap
Derivative Instruments, Gain (Loss)
Amount of gain (loss) recognized in income on derivatives	$ (677)	$ (227)

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Acquisition (Tables)

3 Months Ended

Mar. 31, 2014

Acquisitions [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The initial purchase price allocation based on their fair values as of the acquisition date was as follows (in thousands):

Cash	$	109
Trade accounts receivable	7,811
Inventories	13,834
Prepaid expenses and other current assets	43
Property, plant and equipment	462
Goodwill	14,815
Intangible assets	12,328
Other noncurrent assets	5,779
Total assets acquired	$	55,181
Accounts payable	$	8,083
Other current liabilities and accrued expenses	6,097
Other noncurrent liabilities	392
Total liabilities acquired	$	14,572
Net assets acquired	$	40,609

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Acquisition (Details) (USA Industries Acquisition, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Business Acquisition
Business Combination, Consideration Transferred	$ 40,609
Payments to Acquire Businesses, Gross	38,500
Escrow Deposit	2,000
Consideration Transferred, Liabilities Incurred	109
Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	109
Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	7,811
Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	13,834
Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	43
Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	462
Recognized Identifiable Assets Acquired and Liabilities Assumed, Goodwill	14,815
Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	12,328
Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	5,779
Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	55,181
Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	8,083
Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	6,097
Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	392
Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	14,572
Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	40,609
Finished Goods Inventory Step-Up	2,509
Customer Relationships
Business Acquisition
Amortization of Intangible Assets	237
Lease Agreements
Business Acquisition
Amortization of Intangible Assets	$ 46

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Debt (Tables)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Schedule of Debt

Borrowings under long-term debt arrangements, net of discounts, consisted of the following:

	March 31,			December 31,
(In thousands)	2014			2013
Asset-Based Revolving Credit Facility, First-Amendment-Maturity date of September 5, 2018	$	—		$	—
Amended and Restated Term B Loan-Maturity date of March 5, 2020	294,333			295,001
Total Senior Credit Facility and Notes	294,333			295,001
Capital leases	2,132			2,226
Less current maturities	(3,390		)	(3,392		)
Long-term debt less current maturities	$	293,075		$	293,835

Schedule of Maturities of Long-term Debt

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Inventories (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Inventory [Abstract]
Raw materials	$ 48,309	$ 42,322
Core inventory	37,301	36,581
Work-in-process	10,028	8,398
Finished goods	83,047	72,039
Inventories	$ 178,685	$ 159,340

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Stockholders' equity (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended				3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2014 Subsequent Event
Total shares authorized				280,000,000
Common Stock, shares authorized				240,000,000
Common Stock, par value	$ 0.0001		$ 0.0001	$ 0.0001
Preferred Stock, shares authorized				40,000,000
Preferred Stock, par or stated value per share				$ 0.0001
Common Stock, shares outstanding	31,995,332		31,981,544
Preferred Stock, shares outstanding	0
Treasury Stock, shares acquired	114,291	65,781
Purchase of treasury stock	$ 2,504	$ 1,225
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited	74,892	35,104
Dividends declared per common share	$ 0.10	$ 0.10			$ 0.10
Payments of ordinary dividends, common stock	(3,397)	(3,197)
Dividends payable	$ (166)

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Restructuring and other charges Significant Components (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended						12 Months Ended		3 Months Ended	12 Months Ended		3 Months Ended	12 Months Ended		3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014 Total Expected Costs 2014	Mar. 31, 2014 Total Expected Costs 2013	Mar. 31, 2014 Total Expected Costs 2012	Mar. 31, 2014 Restructuring Charges 2014	Dec. 31, 2013 Restructuring Charges 2014	Dec. 31, 2012 Restructuring Charges 2014	Mar. 31, 2014 Restructuring Charges 2013	Dec. 31, 2013 Restructuring Charges 2013	Dec. 31, 2012 Restructuring Charges 2013	Mar. 31, 2014 Restructuring Charges 2012	Dec. 31, 2013 Restructuring Charges 2012	Dec. 31, 2012 Restructuring Charges 2012	Mar. 31, 2014 Estimated Future Expense 2014	Mar. 31, 2014 Estimated Future Expense 2013	Mar. 31, 2014 Estimated Future Expense 2012
Restructuring Cost and Reserve
Severance costs	$ 228	$ 370	$ 217	$ 1,756	$ 4,544	$ 217	$ 0	$ 0	$ 0	$ 1,756	$ 0	$ 11	$ 795	$ 3,738	$ 0	$ 0	$ 0
Business exit costs	86	311	2	692	1,496	2	0	0	0	692	0	84	823	410	0	0	179
Other restructuring costs					1,687							0	0	1,687			0
Restructuring and other charges	$ 314	$ 681	$ 219	$ 2,448	$ 7,727	$ 219	$ 0	$ 0	$ 0	$ 2,448	$ 0	$ 95	$ 1,618	$ 5,835	$ 0	$ 0	$ 179

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Financial instruments Interest Rate Risk (Details) (Interest Rate Swap, USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Not Designated as Hedging Instrument
Derivative
Derivative, Amount of Hedged Item	$ 72,000,000
Derivative, lower variable interest rate range	1.25%
Derivative, fixed interest rate	4.045%
Notional Amount of Interest Rate Cash Flow Hedge Derivatives	72,000,000
Quarterly Notional Reduction, Derivatives	187,500
Designated as Hedging Instrument
Derivative
Derivative, Amount of Hedged Item	72,000,000
Derivative, lower variable interest rate range	1.25%
Derivative, fixed interest rate	2.75%
Notional Amount of Interest Rate Cash Flow Hedge Derivatives	72,000,000
Quarterly Notional Reduction, Derivatives	187,500
Accumulated unrealized gains/losses recorded in accumulated other comprehensive income, before tax	992,000	1,455,000
Cash flow hedge gain/loss to be reclassified within twelve months	$ 0

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Fair value measurements

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures

3. Fair value measurements

FASB ASC Topic 820, Fair Value Measurements and Disclosures, clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based upon assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, FASB ASC Topic 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets;

Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

An asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs.

Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in FASB ASC Topic 820:

A. Market approach:    Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

B. Cost approach:    Amount that would be required to replace the service capacity of an asset (replacement cost).

C. Income approach:    Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models).

Assets and liabilities remeasured and disclosed at fair value on a recurring basis as of March 31, 2014 and December 31, 2013, are set forth in the table below:

	As of March 31, 2014							As of December 31, 2013
(In thousands)	Asset/ (liability)			Level 2			Valuation technique	Asset/ (liability)			Level 2			Valuation technique
Interest rate swap contracts	$	(413	)	$	(413	)	C	$	727		$	727		C
Foreign exchange contracts	1,573			1,573			C	3,417			3,417			C
Commodity contracts	(3,858		)	(3,858		)	C	(1,333		)	(1,333		)	C

We calculate the fair value of our interest rate swap contracts, commodity contracts and foreign currency contracts using quoted interest rate curves, quoted commodity forward rates and quoted currency forward rates. For contracts which, when aggregated by counterparty, are in a liability position, the discount rates are adjusted by the credit spread that market participants would apply if buying these contracts from our counterparties.

In addition to items that are measured at fair value on a recurring basis, we also have assets and liabilities that are measured at fair value on a nonrecurring basis. As these assets and liabilities are not measured at fair value on a recurring basis, they are not included in the tables above. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets (see Note 7) and certain assets acquired in business acquisitions (see Note 20). We have determined that the fair value measurements included in each of these assets and liabilities rely primarily on our assumptions as observable inputs are not available. As such, we have determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy.

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Debt (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Long-term Debt	$ 294,333	$ 295,001
Capital leases	2,132	2,226
Less current maturities	(3,390)	(3,392)
Long-term debt less current maturities	293,075	293,835
Asset-Based Revolving Credit Facility, First Amendment
Long-term Debt	0	0
Amended and Restated Term B Loan Facility
Long-term Debt	$ 294,333	$ 295,001

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Description of the business (Details) (Majority Shareholder, USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Majority Shareholder
Statement
Shares held by majority stakeholder	16,342,508	16,342,508
Debt held by majority stakeholder	$ 29,625	$ 29,700
Significant investor's ownership percentage	51.00%	51.00%

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Summary of significant accounting policies (Tables)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Schedule of Government Grants

The amounts recognized in the accompanying consolidated statements of operations as government grants were as follows:

	Three months ended March 31,
(In thousands)	2014		2013
Reduction of cost of goods sold	$	443	$	588
Reduction of selling, general, and administrative expenses	$	193	$	159

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Summary of significant accounting policies (Policies)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Use of Estimates, Policy

Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the year. Actual results could differ from these estimates.

Government Grants, Policy

Government grants

We record government grants when there is reasonable assurance that the grant will be received and we will comply with the conditions attached to the grants received. Grants related to income are recorded as an offset to the related expense in the accompanying statements of operations. Grants related to assets are recorded as deferred revenue and recognized on a straight-line basis over the useful life of the related asset. We continue to evaluate our compliance with the conditions attached to the related grants.

Trade and Other Accounts Receivable, Policy

Trade accounts receivable and allowance for doubtful accounts

Trade accounts receivable is stated at net realizable value, which approximates fair value. Substantially all of our trade accounts receivable are due from customers in the original equipment and aftermarket automotive industries, both domestically and internationally. Trade accounts receivable includes notes receivable of $39,906,000 and $27,154,000 as of March 31, 2014 and December 31, 2013, respectively. Trade accounts receivable is reduced by an allowance for amounts that are expected to become uncollectible in the future and for disputed items. We perform periodic credit evaluations of our customers' financial condition and generally do not require collateral. We maintain allowances for doubtful customer accounts for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is developed based on several factors including customers' credit quality, historical write-off experience and any known specific issues or disputes which exist as of the balance sheet date. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

Standard Product Warranty, Policy

Warranty

We provide certain warranties relating to quality and performance of our products. An allowance for the estimated future cost of product warranties and other defective product returns is based on management's estimate of product failure rates and customer eligibility. If these factors differ from management's estimates, revisions to the estimated warranty liability may be required. The specific terms and conditions of the warranties vary depending upon the customer and the product sold.

Earnings Per Share, Policy

Earnings per share

Basic earnings per share is calculated by dividing net earnings by the weighted average shares outstanding during the period. Diluted earnings per share is based on the weighted average number of shares outstanding plus the assumed issuance of common shares and related adjustment to net income attributable to common stockholders related to all potentially dilutive securities. For the three months ended March 31, 2014 and 2013, in applying the treasury stock method, equivalent shares of unvested restricted stock of 170,989 and 156,389 shares, respectively, were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 325,788 and 111,470 were excluded from the calculation of dilutive earnings per share for the three month periods ended March 31, 2014 and 2013, respectively.

Recently Adopted Accounting Standards, Policy

Recent accounting adoptions

In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists to provide guidance on the presentation of unrecognized tax benefits. ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain limited exceptions. ASU 2013-11 is effective for annual reporting periods beginning on or after December 15, 2013 and interim periods within those annual periods with earlier adoption permitted. We adopted this guidance on January 1, 2014. The adoption of this guidance did not have an impact on our consolidated financial position, results of operations or cash flows.

Fair Value of Financial Instruments, Policy

We calculate the fair value of our interest rate swap contracts, commodity contracts and foreign currency contracts using quoted interest rate curves, quoted commodity forward rates and quoted currency forward rates. For contracts which, when aggregated by counterparty, are in a liability position, the discount rates are adjusted by the credit spread that market participants would apply if buying these contracts from our counterparties.

In addition to items that are measured at fair value on a recurring basis, we also have assets and liabilities that are measured at fair value on a nonrecurring basis. As these assets and liabilities are not measured at fair value on a recurring basis, they are not included in the tables above. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets (see Note 7) and certain assets acquired in business acquisitions (see Note 20). We have determined that the fair value measurements included in each of these assets and liabilities rely primarily on our assumptions as observable inputs are not available. As such, we have determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy.

Derivatives, Policy

Other

We present our derivative positions and any related material collateral under master netting agreements on a gross basis. We have entered into International Swaps and Derivatives Association agreements with each of its significant derivative counterparties. These agreements provide bilateral netting and offsetting of accounts that are in a liability position with those that are in an asset position. These agreements do not require us to maintain a minimum credit rating in order to be in compliance with the terms of the agreements and do not contain any margin call provisions or collateral requirements that could be triggered by derivative instruments in a net liability position. As of March 31, 2014, we have not posted any collateral to support derivatives in a liability position.

For derivatives designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness. Unrealized gains and losses associated with ineffective hedges, determined using the change in fair value method, are recognized in the accompanying consolidated statements of operations. Derivative gains and losses included in AOCI for effective hedges are reclassified into the accompanying consolidated statements of operations upon recognition of the hedged transaction.

Any derivative instrument designated initially, but no longer effective as a hedge, or initially not effective as a hedge, is recorded at fair value and the related gains and losses are recognized in the accompanying consolidated statements of operations. Our undesignated hedges are primarily our interest rate swaps whose fair value at inception of the instrument due to the rollover of existing interest rate swaps resulted in ineffectiveness.

Accounts Receivable Factoring Arrangements

Accounts receivable factoring arrangements

We have entered into factoring agreements with various domestic and European financial institutions to sell our accounts receivable under nonrecourse agreements. These are treated as a sale. The transactions are accounted for as a reduction in accounts receivable as the agreements transfer effective control over and risk related to the receivables to the buyers. We do not service any domestic accounts after the factoring has occurred. We do not have any servicing assets or liabilities. We utilize factoring arrangements as an integral part of financing for us. The cost of factoring such accounts receivable is reflected in the accompanying consolidated statements of operations as interest expense-net with other financing costs.

Income Tax, Policy

We compute on a quarterly basis an estimated annual effective tax rate considering ordinary income and related income tax expense. Ordinary income refers to income (loss) before income tax expense excluding significant, unusual, or infrequently occurring items. The tax effect of an unusual or infrequently occurring item is recorded in the interim period in which it occurs. To the extent we cannot reliably estimate annual projected taxes for a taxing jurisdiction, taxes on ordinary income for such a jurisdiction are reported in the period in which they are incurred. Other items included in income tax expense in the periods in which they occur include the cumulative effect of changes in tax laws or rates, foreign exchange gains and losses, adjustments to uncertain tax positions, and adjustments to our valuation allowance due to changes in judgment regarding the realizability of deferred tax assets in future years.

Commitments and Contingencies, Policy

We are party to various legal actions and administrative proceedings and subject to various claims arising in the ordinary course of business, including those relating to commercial transactions, product liability, safety, health, taxes, environmental and other matters. We review these matters on an ongoing basis and follow the provisions of FASB ASC Topic 450, Contingencies, when making accrual and disclosure decisions. For legal proceedings where it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and which represents our best estimate has been recorded in our accompanying consolidated financial statements. We believe that the ultimate liability, if any, in excess of amounts already provided for in our accompanying consolidated financial statements on the disposition of these matters and the matters discussed below would not have a material adverse effect on our financial position.

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Other current liabilities and accrued expenses Other Current Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Other current liabilities and accrued expenses [Abstract]
Accrued warranty	$ 28,601	$ 27,083
Accrued wages and benefits	17,448	20,016
Current portion of customer obligations	4,681	4,560
Rebates, stocklifts, discounts and returns	20,572	18,922
Current deferred revenue	2,124	2,270
Other	42,765	37,328
Other current liabilities and accrued expenses	$ 116,191	$ 110,179

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Summary of significant accounting policies (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Notes, Loans and Financing Receivable, Net, Current	$ 39,906		$ 27,154
Weighted Average Number Diluted Shares Outstanding Adjustment	170,989	156,389
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	325,788	111,470
Government Grant
Deferred Revenue	6,089		6,283
Reduction of cost of goods sold	443	588
Reduction of selling, general, and administrative expenses	$ 193	$ 159

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Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

Assets and liabilities remeasured and disclosed at fair value on a recurring basis as of March 31, 2014 and December 31, 2013, are set forth in the table below:

	As of March 31, 2014							As of December 31, 2013
(In thousands)	Asset/ (liability)			Level 2			Valuation technique	Asset/ (liability)			Level 2			Valuation technique
Interest rate swap contracts	$	(413	)	$	(413	)	C	$	727		$	727		C
Foreign exchange contracts	1,573			1,573			C	3,417			3,417			C
Commodity contracts	(3,858		)	(3,858		)	C	(1,333		)	(1,333		)	C

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Financial instruments (Tables)

3 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Financial Instruments [Abstract]

Schedule of Derivative Instruments

As of March 31, 2014 and December 31, 2013, we had the following outstanding foreign currency contracts that were entered into to hedge forecasted purchases and revenues, respectively:

(In thousands)	Currency denomination
	March 31,		December 31,
Foreign currency contract	2014		2013
South Korean Won Forward	$	77,934	$	74,368
Mexican Peso Contracts	$	73,283	$	73,520
Brazilian Real Forward	$	20,463	$	11,427
Hungarian Forint Forward	€	13,678	€	14,416
Great Britain Pound Forward	£	2,805	£	3,735

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table discloses the fair values and balance sheet locations of our derivative instruments:

	Asset derivatives					Liability derivatives
(In thousands)	Balance sheet location	March 31, 2014		December 31, 2013		Balance sheet location	March 31, 2014		December 31, 2013
Derivatives designated as hedging instruments:
Commodity contracts	Prepaid expenses and other current assets	$	—	$	257	Other current liabilities and accrued expenses	$	3,396	$	—
Commodity contracts	Other noncurrent assets	51		195		Other noncurrent liabilities	513		1,785
Foreign currency contracts	Prepaid expenses and other current assets	2,176		3,630		Other current liabilities and accrued expenses	481		141
Foreign currency contracts	Other noncurrent assets	96		108		Other noncurrent liabilities	218		180
Interest rate swap contracts	Other noncurrent assets	992		1,455		Other noncurrent liabilities	—		—
Total derivatives designated as hedging instruments		$	3,315	$	5,645		$	4,608	$	2,106
Derivatives not designated as hedging instruments:
Interest rate swap contracts	Other noncurrent assets	$	—	$	—	Other noncurrent liabilities	$	1,405	$	728
Total derivatives not designated as hedging instruments		$	—	$	—		$	1,405	$	728

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended March 31, 2014 (in thousands):

Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in OCI on derivatives (effective portion)			Location of gain (loss) reclassified from AOCI into income (effective portion)	Amount of gain (loss) reclassified from AOCI into income (effective portion)			Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Commodity contracts	$	(3,447	)	Cost of goods sold	$	(948	)	Cost of goods sold	$	(37	)
Foreign currency contracts	(1,124		)	Cost of goods sold	897			Cost of goods sold	—
Interest rate swap contracts	(463		)	Interest expense–net	—			Interest expense–net	—
	$	(5,034	)		$	(51	)		$	(37	)

Derivatives not designated as hedging instruments	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
Interest rate swap	Interest expense–net	$	(677	)

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended March 31, 2013 (in thousands):

Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in OCI on derivatives (effective portion)			Location of gain (loss) reclassified from AOCI into income (effective portion)	Amount of gain (loss) reclassified from AOCI into income (effective portion)		Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Commodity contracts	$	(2,102	)	Cost of goods sold	$	108	Cost of goods sold	$	(29	)
Foreign currency contracts	808			Cost of goods sold	1,334		Cost of goods sold	—
Interest rate swap contracts	(270		)	Interest expense–net	—		Interest expense–net	—
	$	(1,564	)		$	1,442		$	(29	)

Derivatives not designated as hedging instruments	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
Interest rate swap contracts	Interest expense–net	$	(227	)

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Summary of significant accounting policies

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Significant Accounting Policies

2. Summary of significant accounting policies

Interim condensed consolidated financial statements

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information. Accordingly, certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. These statements include all adjustments (consisting of normal recurring adjustments) that our management believes are necessary to present fairly our financial position, results of operations, and cash flows. We believe that the disclosures are adequate to make the information presented not misleading when read in conjunction with our audited consolidated financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2013.

Operating results for the interim periods presented in this report are not necessarily indicative of the results that may be expected for any future interim period or for the full year.

Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the year. Actual results could differ from these estimates.

Government grants

We record government grants when there is reasonable assurance that the grant will be received and we will comply with the conditions attached to the grants received. Grants related to income are recorded as an offset to the related expense in the accompanying statements of operations. Grants related to assets are recorded as deferred revenue and recognized on a straight-line basis over the useful life of the related asset. We continue to evaluate our compliance with the conditions attached to the related grants.

We received various grants and subsidies during the three month periods ended March 31, 2014 and 2013. The amounts recognized in the accompanying consolidated statements of operations as government grants were as follows:

	Three months ended March 31,
(In thousands)	2014		2013
Reduction of cost of goods sold	$	443	$	588
Reduction of selling, general, and administrative expenses	$	193	$	159

As of March 31, 2014 and December 31, 2013, we had deferred revenue of $6,089,000 and $6,283,000, respectively, related to government grants.

Trade accounts receivable and allowance for doubtful accounts

Trade accounts receivable is stated at net realizable value, which approximates fair value. Substantially all of our trade accounts receivable are due from customers in the original equipment and aftermarket automotive industries, both domestically and internationally. Trade accounts receivable includes notes receivable of $39,906,000 and $27,154,000 as of March 31, 2014 and December 31, 2013, respectively. Trade accounts receivable is reduced by an allowance for amounts that are expected to become uncollectible in the future and for disputed items. We perform periodic credit evaluations of our customers' financial condition and generally do not require collateral. We maintain allowances for doubtful customer accounts for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is developed based on several factors including customers' credit quality, historical write-off experience and any known specific issues or disputes which exist as of the balance sheet date. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

Warranty

We provide certain warranties relating to quality and performance of our products. An allowance for the estimated future cost of product warranties and other defective product returns is based on management's estimate of product failure rates and customer eligibility. If these factors differ from management's estimates, revisions to the estimated warranty liability may be required. The specific terms and conditions of the warranties vary depending upon the customer and the product sold.

Earnings per share

Basic earnings per share is calculated by dividing net earnings by the weighted average shares outstanding during the period. Diluted earnings per share is based on the weighted average number of shares outstanding plus the assumed issuance of common shares and related adjustment to net income attributable to common stockholders related to all potentially dilutive securities. For the three months ended March 31, 2014 and 2013, in applying the treasury stock method, equivalent shares of unvested restricted stock of 170,989 and 156,389 shares, respectively, were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 325,788 and 111,470 were excluded from the calculation of dilutive earnings per share for the three month periods ended March 31, 2014 and 2013, respectively.

Recent accounting adoptions

In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists to provide guidance on the presentation of unrecognized tax benefits. ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain limited exceptions. ASU 2013-11 is effective for annual reporting periods beginning on or after December 15, 2013 and interim periods within those annual periods with earlier adoption permitted. We adopted this guidance on January 1, 2014. The adoption of this guidance did not have an impact on our consolidated financial position, results of operations or cash flows.

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Inventories (Tables)

3 Months Ended

Mar. 31, 2014

Inventory [Abstract]

Schedule of Inventory, Current

Net inventories consisted of the following:

	March 31,		December 31,
(In thousands)	2014		2013
Raw materials	$	48,309	$	42,322
Core inventory	37,301		36,581
Work-in-process	10,028		8,398
Finished goods	83,047		72,039
	$	178,685	$	159,340

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Stock-based compensation (Tables)

3 Months Ended

Mar. 31, 2014

Share-based Compensation [Abstract]

Allocated Share-based Compensation Expense

Noncash compensation expense related to all types of awards was recognized for the three months endedMarch 31, as follows:

	Three months ended March 31,
(In thousands)	2014		2013
Stock-based compensation expense	$	1,219	$	1,497

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Property, plant and equipment (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense of property, plant, and equipment	$ 5,394	$ 4,632

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Stock-based compensation (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award
Allocated share-based compensation expense	$ 1,219	$ 1,497
Share-based compensation arrangement by share-based payment award, number of shares authorized		5,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	3,077,909
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	2,397	0
Executive Officers and Key Employees
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation arrangement by share-based payment award, shares issued in period	178,279
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value	$ 21.99
Share-based compensation arrangement by share-based payment award, options, grants in period, gross	237,640
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average exercise price	$ 21.99
Award allocation percentage, time based, shares	50.00%
Award allocation percentage, performance based, shares	50.00%
Annual vesting percentage, time based, shares	33.00%
Annual vesting percentage, performance based, shares	33.00%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	7 years
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value	$ 7.07
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate	1.53%
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected dividend rate	1.82%
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate	43.20%
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term	4 years 6 months
Board of Directors
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation arrangement by share-based payment award, shares issued in period	27,072
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value	$ 21.98
Share-based compensation arrangement by share-based payment award, options, grants in period, gross	36,083
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average exercise price	$ 21.98
Annual vesting percentage, years one and two, shares	50.00%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	7 years
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value	$ 7.07
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate	1.53%
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected dividend rate	1.82%
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate	43.20%
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term	4 years 6 months

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Consolidated balance sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 55,827	$ 114,884
Trade accounts receivable (less allowances of $1,635 and $1,583)	237,991	191,548
Other receivables	21,338	21,023
Inventories	178,685	159,340
Deferred income taxes	38,491	36,329
Prepaid expenses and other current assets	10,689	11,151
Total current assets	543,021	534,275
Property, plant and equipment	253,457	249,326
Less accumulated depreciation and amortization	(108,943)	(103,715)
Property, plant and equipment, net	144,514	145,611
Deferred financing costs, net of amortization	3,635	3,802
Goodwill	286,233	271,418
Intangibles, net	99,653	89,909
Other noncurrent assets	77,568	72,040
Total assets	1,154,624	1,117,055
Current liabilities:
Short-term debt	5,265	2,369
Current maturities of long-term debt	3,390	3,392
Accounts payable	194,924	168,491
Accrued interest	101	92
Accrued restructuring	284	1,026
Other current liabilities and accrued expenses	116,191	110,179
Total current liabilities	320,155	285,549
Long-term debt, net of current maturities	293,075	293,835
Postretirement benefits other than pensions	1,573	1,628
Accrued pension benefits	18,591	19,103
Deferred income taxes	1,120	1,000
Other noncurrent liabilities	26,796	24,783
Remy International, Inc. stockholders' equity:
Common stock, Par value of $0.0001; 31,995,332 shares outstanding at March 31, 2014, and 31,981,544 shares outstanding at December 31, 2013	3	3
Treasury stock, at cost; 457,107 treasury shares at March 31, 2014, and 267,924 treasury shares at December 31, 2013	(3,981)	(1,477)
Additional paid-in capital	323,023	320,687
Retained earnings	219,747	213,418
Accumulated other comprehensive loss	(45,478)	(41,474)
Total Remy International, Inc. stockholders' equity	493,314	491,157
Total liabilities and equity	$ 1,154,624	$ 1,117,055

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Fair value measurements (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Interest Rate Swap
Assets/(Liabilities)
Derivative Assets (Liabilities), at Fair Value, Net	$ (413)	$ 727
Interest Rate Swap | Fair Value, Inputs, Level 2
Assets/(Liabilities)
Derivative Assets (Liabilities), at Fair Value, Net	(413)	727
Foreign Exchange Contract
Assets/(Liabilities)
Derivative Assets (Liabilities), at Fair Value, Net	1,573	3,417
Foreign Exchange Contract | Fair Value, Inputs, Level 2
Assets/(Liabilities)
Derivative Assets (Liabilities), at Fair Value, Net	1,573	3,417
Commodity Contract
Assets/(Liabilities)
Derivative Assets (Liabilities), at Fair Value, Net	(3,858)	(1,333)
Commodity Contract | Fair Value, Inputs, Level 2
Assets/(Liabilities)
Derivative Assets (Liabilities), at Fair Value, Net	$ (3,858)	$ (1,333)

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Consolidated statements of cash flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:
Net income	$ 9,467	$ 1,843
Adjustments to reconcile net income to cash used in operating activities:
Depreciation and amortization	8,655	8,213
Amortization of debt issuance costs	249	360
Loss on extinguishment of debt and refinancing fees	0	4,256
Stock-based compensation	1,219	1,497
Deferred income taxes	908	(4,133)
Accrued pension and postretirement benefits, net	(434)	(21)
Restructuring and other charges	314	681
Cash payments for restructuring charges	(1,056)	(2,163)
Other	528	38
Changes in operating assets and liabilities, net of restructuring charges:
Accounts receivable	(39,451)	(21,247)
Inventories	(5,449)	(12,428)
Accounts payable	21,237	7,086
Other current assets and liabilities, net	(3,145)	1,528
Other noncurrent assets and liabilities, net	(2,200)	(1,841)
Net cash used in operating activities	(9,158)	(16,331)
Cash flows from investing activities:
Purchases of property, plant and equipment	(6,437)	(5,720)
Net proceeds on sale of assets	39	28
Acquisition of USA Industries, Inc., net of cash acquired of $109	40,391	0
Net cash used in investing activities	(46,789)	(5,692)
Cash flows from financing activities:
Change in short-term debt and revolver	2,934	1,689
Payments made on long-term debt, including capital leases	(844)	(287,870)
Proceeds from issuance of long-term debt	0	299,250
Dividend payments on common stock	(3,397)	(3,197)
Purchase of treasury stock	(2,504)	(1,225)
Debt issuance costs	0	(3,443)
Other	1,142	0
Net cash (used in) provided by financing activities	(2,669)	5,204
Effect of exchange rate changes on cash and cash equivalents	(441)	(1,879)
Net decrease in cash and cash equivalents	(59,057)	(18,698)
Cash and cash equivalents at beginning of period	114,884	111,733
Cash and cash equivalents at end of period	55,827	93,035
Noncash investing and financing activities:
Cash Acquired from Acquisition	109
Accounts Payable
Noncash investing and financing activities:
Purchases of property, plant and equipment	$ 1,634	$ 2,630

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Restructuring and other charges Restructing Detail (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Restructuring and Related Activities [Abstract]
Restructuring and other charges	$ 314	$ 681
Severance costs	228	370
Business exit costs	$ 86	$ 311

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Other noncurrent liabilities (Tables)

3 Months Ended

Mar. 31, 2014

Other Liabilities, Noncurrent [Abstract]

Other Noncurrent Liabilities

Other noncurrent liabilities consisted of the following:

	March 31,		December 31,
(In thousands)	2014		2013
Noncurrent deferred revenue	4,539		4,755
Other	22,257		20,028
	$	26,796	$	24,783

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Debt Short Term Debt (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014
South Korea
Short-term Debt
Short-term debt, number of lenders	3
Line of credit facility, maximum borrowing capacity	$ 12,163
Line of credit facility, amount outstanding	2,339
Short-term debt, weighted average interest rate	3.46%
Hungary
Short-term Debt
Short-term debt, number of lenders	2
Line of credit facility, maximum borrowing capacity	4,312
Line of credit facility, amount outstanding	0
CHINA
Short-term Debt
Short-term debt, number of lenders	1
Line of credit facility, maximum borrowing capacity	10,000
Line of credit facility, amount outstanding	$ 2,926
Short-term debt, weighted average interest rate	5.60%

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Employee benefit plans

3 Months Ended

Mar. 31, 2014

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure

16. Employee benefit plans

The components of expense for the plans were as follows (in thousands):

Pension benefits:
	Three months ended March 31,
Components of expense	2014			2013
Service costs	$	275		$	—
Interest costs	754			642
Expected return on plan assets	(765		)	(612		)
Recognized net actuarial loss	164			344
Net periodic pension cost	$	428		$	374
Postretirement health care and life insurance plans:
	Three months ended March 31,
Components of expense	2014			2013
Interest costs	$	20		$	19
Amortization of prior service cost	(454		)	(454		)
Recognized net actuarial loss	450			456
Net periodic cost	$	16		$	21

Cash flows - employee benefit plans

We contributed $828,000 and $348,000 to our pension plans during the three months ended March 31, 2014 and 2013, respectively. We expect to contribute a total of $3,297,000 to our U.S. pension plans and $1,486,000 to our International pension plans in 2014. The postretirement health care plan is funded as benefits are paid.

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Restructuring and other charges (Tables)

3 Months Ended

Mar. 31, 2014

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

The following table summarizes the activity in our accrual for restructuring and other charges for the three month period ended March 31, (in thousands):

2014	Termination benefits			Exit costs			Total
Accrual at December 31, 2013	$	981		$	45		$	1,026
Provision	228			86			314
Payments	(950		)	(106		)	(1,056		)
Accrued at March 31, 2014	$	259		$	25		$	284

2013	Termination benefits			Exit costs			Total
Accrual at December 31, 2012	$	3,573		$	106		$	3,679
Provision	370			311			681
Payments	(1,832		)	(331		)	(2,163		)
Accrued at March 31, 2013	$	2,111		$	86		$	2,197

Schedule of Restructuring and Related Costs

Significant components of restructuring and other charges were as follows (in thousands):

	Total expected costs		Expense incurred in						Estimated future expense
			Three months ended March 31, 2014		Twelve months ended December 31, 2013		Twelve months ended December 31, 2012
2014 Activities
Severance	$	217	$	217	$	—	$	—	$	—
Exit costs	2		2		—		—		—
	$	219	$	219	$	—	$	—	$	—
2013 Activities
Severance	$	1,756	$	—	$	1,756	$	—	$	—
Exit costs	692		—		692		—		—
	$	2,448	$	—	$	2,448	$	—	$	—
2012 Activities
Severance	$	4,544	$	11	$	795	$	3,738	$	—
Exit costs	1,496		84		823		410		179
Other charges	1,687		—		—		1,687		—
	$	7,727	$	95	$	1,618	$	5,835	$	179

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Business segment and geographical information

3 Months Ended

Mar. 31, 2014

Segments, Geographical Areas [Abstract]

Segment Reporting Disclosure

18. Business segment and geographical information

We manage our business and operate in a single reportable business segment.

We are a multi-national corporation with operations in many countries, including the United States, Canada, Mexico, Brazil, China, Hungary, South Korea, United Kingdom, Belgium and Tunisia. As a result, our financial results could be significantly affected by factors such as changes in foreign currency exchange rates or weak economic conditions in the foreign markets where we distribute our products. Our operating results are exposed to changes in exchange rates between the U.S. dollar and non-U.S. currencies. Exposure to variability in foreign currency exchange rates is managed primarily through the use of natural hedges, whereby funding obligations and assets are both denominated in the local currency, and through selective currency hedges. From time to time, we enter into exchange agreements to manage our exposure arising from fluctuating exchange rates related to specific transactions. Refer to Note 4. Sales are attributed to geographic locations based on the point of sale.

Information about our net sales by region was as follows:

	Three months ended March 31,
(In thousands)	2014		2013
Net sales to external customers:
United States	$	198,907	$	190,022
Europe	23,075		24,460
Other Americas	10,880		14,159
Asia	67,432		53,085
Total net sales	$	300,294	$	281,726

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Reclassifications out of accumulated other comprehensive income (loss) Changes in Accumulated Other Comprehensive Income (Loss) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Beginning Balance	$ (41,474)	$ (50,307)
Other comprehensive income (loss) before reclassifications	(4,065)	(4,109)
Amounts reclassified from accumulated other comprehensive income (loss)	61	(783)
Ending Balance	(45,478)	(55,199)
Accumulated Translation Adjustment
Beginning Balance	(18,105)	(19,860)
Other comprehensive income (loss) before reclassifications	(765)	(3,172)
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Ending Balance	(18,870)	(23,032)
Accumulated Defined Benefit Plans Adjustment
Beginning Balance	(18,869)	(25,983)
Other comprehensive income (loss) before reclassifications	(11)	102
Amounts reclassified from accumulated other comprehensive income (loss)	97	346
Ending Balance	(18,783)	(25,535)
Foreign Exchange Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Beginning Balance	2,520	3,426
Other comprehensive income (loss) before reclassifications	(886)	513
Amounts reclassified from accumulated other comprehensive income (loss)	(636)	(1,081)
Ending Balance	998	2,858
Commodity Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Beginning Balance	(6,332)	(6,316)
Other comprehensive income (loss) before reclassifications	(2,122)	(1,282)
Amounts reclassified from accumulated other comprehensive income (loss)	600	(48)
Ending Balance	(7,854)	(7,646)
Interest Rate Swap | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Beginning Balance	(688)	(1,574)
Other comprehensive income (loss) before reclassifications	(281)	(270)
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Ending Balance	$ (969)	$ (1,844)

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Description of the business

3 Months Ended

Mar. 31, 2014

Description of the business [Abstract]

Description of the business

1. Description of the business

Business

Remy International, Inc. (together with its subsidiaries, “we”, “our”, “us”, “Remy” or the “Company”) is a leading global vehicle parts designer, manufacturer, remanufacturer, marketer and distributor of aftermarket and original equipment electrical components for automobiles, light-duty trucks, heavy-duty trucks and other vehicles. We sell our products worldwide primarily under the “Delco Remy”, “Remy”, “World Wide Automotive” and "USA Industries" brand names and our customers' widely recognized private label brand names. Our products include new and remanufactured, light-duty and heavy-duty starters and alternators for both original equipment and aftermarket applications, hybrid power technology, and multi-line products, such as constant velocity ("CV") axles, disc brake calipers, and steering gears. These products are principally sold or distributed to original equipment manufacturers (“OEMs”) for both original equipment manufacture and aftermarket operations, as well as to warehouse distributors and retail automotive parts chains. We sell our products principally in North America, Europe, South America and Asia.

We are one of the largest producers in the world of remanufactured starters and alternators for the aftermarket. Our remanufacturing operations obtain failed products, commonly known as cores, from our customers as returns. These cores are an essential material needed for the remanufacturing operations. We have expanded our operations to become a low cost, global manufacturer and remanufacturer with a more balanced business mix between the aftermarket and the original equipment market since we separated from General Motors Corporation (“GM”) in 1994, when we were essentially an original equipment supplier selling predominantly to GM.

In general, our business is influenced by the underlying trends in the automobile, light truck, and heavy-duty truck, construction and industrial markets. We have been able to reduce the impact from the cyclical nature of some of our business by focusing on our remanufacturing capabilities and our aftermarket business.

The automotive parts market is highly competitive. Competition is based primarily on quality of products, service, delivery, technical support and price. Most OEMs and aftermarket distributors source parts from one or two suppliers and we compete with a number of companies who supply automobile manufacturers throughout the world.

On August 14, 2012, Fidelity National Special Opportunities, Inc. (now known as Fidelity National Financial Ventures, Inc., or "FNFV") a wholly-owned subsidiary of Fidelity National Financial, Inc., or "FNF", a leading provider of title insurance, mortgage services and restaurant and diversified services, purchased additional shares of Remy International, Inc. common stock, thereby increasing its ownership position above 50%. As a result, FNF began consolidating the financial results of Remy in the third quarter of 2012. As of March 31, 2014, FNFV held a 51% ownership interest in Remy, comprised of 16,342,508 shares of our common stock. Additionally, FNF and related subsidiaries participated in our Amended and Restated Term B Loan Credit Agreement on March 5, 2013 and held $29,625,000 principal amount of our Amended and Restated Term B loan as of March 31, 2014.

As of December 31, 2013, FNFV held a 51% ownership interest in Remy, comprised of 16,342,508 shares of our common stock. Additionally, FNF and related subsidiaries held $29,700,000 principal amount of our Term B loan as of December 31, 2013.

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Consolidated balance sheets Balance Sheet Parenthtical (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current assets:
Allowance for doubtful accounts	$ 1,635	$ 1,583
Stockholders' Equity:
Common Stock, par value	$ 0.0001	$ 0.0001
Common Stock, shares outstanding	31,995,332	31,981,544
Treasury Stock, shares outstanding	457,107	267,924

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Restructuring and other charges

3 Months Ended

Mar. 31, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

11. Restructuring and other charges

Total restructuring and other charges of $314,000 were recorded for the three months ended March 31, 2014. These charges consisted of $228,000 of employee termination benefits and $86,000 of other exit costs. The charges were primarily related to the closure of our Mezokovesd, Hungary plant and restructuring actions in our Mexico operations.

Total restructuring and other charges of $681,000 were recorded during the three months ended March 31, 2013. These charges consisted of $370,000 of employee termination benefits, and $311,000 of other exit costs. The severance charges primarily related to continued costs related to the closure of our Mezokovesd, Hungary plant and reductions in force in our Edmond, Oklahoma facility.

The following table summarizes the activity in our accrual for restructuring and other charges for the three month period ended March 31, (in thousands):

2014	Termination benefits			Exit costs			Total
Accrual at December 31, 2013	$	981		$	45		$	1,026
Provision	228			86			314
Payments	(950		)	(106		)	(1,056		)
Accrued at March 31, 2014	$	259		$	25		$	284

2013	Termination benefits			Exit costs			Total
Accrual at December 31, 2012	$	3,573		$	106		$	3,679
Provision	370			311			681
Payments	(1,832		)	(331		)	(2,163		)
Accrued at March 31, 2013	$	2,111		$	86		$	2,197

Significant components of restructuring and other charges were as follows (in thousands):

	Total expected costs		Expense incurred in						Estimated future expense
			Three months ended March 31, 2014		Twelve months ended December 31, 2013		Twelve months ended December 31, 2012
2014 Activities
Severance	$	217	$	217	$	—	$	—	$	—
Exit costs	2		2		—		—		—
	$	219	$	219	$	—	$	—	$	—
2013 Activities
Severance	$	1,756	$	—	$	1,756	$	—	$	—
Exit costs	692		—		692		—		—
	$	2,448	$	—	$	2,448	$	—	$	—
2012 Activities
Severance	$	4,544	$	11	$	795	$	3,738	$	—
Exit costs	1,496		84		823		410		179
Other charges	1,687		—		—		1,687		—
	$	7,727	$	95	$	1,618	$	5,835	$	179

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Document and entity information	3 Months Ended
	Mar. 31, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	Remy International, Inc.
Entity Central Index Key	0001046859
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	31,995,332
Ticker Symbol	REMY
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

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Debt

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Debt Disclosure

12. Debt

Borrowings under long-term debt arrangements, net of discounts, consisted of the following:

	March 31,			December 31,
(In thousands)	2014			2013
Asset-Based Revolving Credit Facility, First-Amendment-Maturity date of September 5, 2018	$	—		$	—
Amended and Restated Term B Loan-Maturity date of March 5, 2020	294,333			295,001
Total Senior Credit Facility and Notes	294,333			295,001
Capital leases	2,132			2,226
Less current maturities	(3,390		)	(3,392		)
Long-term debt less current maturities	$	293,075		$	293,835

On March 5, 2013, we entered into a First Amendment to our existing ABL Revolver Credit Agreement ("ABL First Amendment") to extend the maturity date of the Asset-Based Revolving Credit Facility ("ABL") from December 17, 2015 to September 5, 2018 and reduce the borrowing rate. The ABL First Amendment bears an interest rate to a defined Base Rate plus 0.50%-1.00% per year or, at our election, at an applicable LIBOR Rate plus 1.50%-2.00% per year and is paid monthly. The ABL First Amendment maintains the current availability at $95,000,000, but may be increased, under certain circumstances, by $20,000,000. The ABL First Amendment is secured by substantially all domestic accounts receivable and inventory. At March 31, 2014, the ABL First Amendment balance was zero. Based upon the collateral supporting the ABL First Amendment, the amount borrowed, and the outstanding letters of credit of $14,035,000, there was additional availability for borrowing of $73,460,000 on March 31, 2014. We will incur an unused commitment fee of 0.375% on the unused amount of commitments under the ABL First Amendment.

On March 5, 2013, we entered into a $300,000,000 Amended and Restated Term B Loan Credit Agreement ("Amended and Restated Term B Loan") to refinance the existing $286,978,000 Term B Loan, extend the maturity from December 17, 2016 to March 5, 2020, and reduce the borrowing rate. The Amended and Restated Term B Loan bears an interest rate consisting of LIBOR (subject to a floor of 1.25%) plus 3.00% per year with an original issue discount of $750,000. The Amended and Restated Term B Loan also contains an option to increase the borrowing provided certain conditions are satisfied, including maintaining a maximum leverage ratio. The Amended and Restated Term B Loan is secured by a first priority lien on the stock of our subsidiaries and substantially all domestic assets other than accounts receivable and inventory pledged to the ABL First Amendment. Principal payments in the amount of $750,000 are due at the end of each calendar quarter with termination and final payment no later than March 5, 2020. As a result of the refinancing of our Term B Loan syndication, we recorded a loss on extinguishment of debt and refinancing fees of $4,256,000 during the quarter ended March 31, 2013. The Amended and Restated Term B Loan is subject to an excess cash calculation which may require the payment of additional principal on an annual basis. At March 31, 2014, the average borrowing rate, including the impact of the interest rate swaps, was 4.25%.

As of March 31, 2014, the estimated fair value of our Amended and Restated Term B Loan was $298,102,000. The estimated fair value was $3,769,000 more than the carrying value. As of December 31, 2013, the estimated fair values of our Term B Loan was $300,157,000. The estimated fair value was $5,156,000 more than the carrying value. The Level 2 fair market values are based on established market prices as of March 31, 2014 and December 31, 2013. The fair value estimates do not necessarily reflect the values we could realize in the current markets. Because of their short-term nature or variable interest rate, we believe the carrying value for short-term debt and the revolving credit agreement closely approximates their fair value.

All of our credit agreements contain various covenants and representations that are customary for transactions of this nature. We were in compliance with all covenants as of March 31, 2014. The credit agreements contain various restrictive covenants, which include, among other things: (i) a maximum leverage ratio; (ii) a minimum interest coverage ratio; (iii) mandatory prepayments upon certain asset sales and debt issuances; and (iv) limitations on the payment of dividends in excess of a specified amount. The term loan also includes events of default customary for a facility of this type, including a cross-default provision under which the lenders may declare the loan in default if we (i) fail to make a payment when due under any debt having a principal amount greater than $5.0 million or (ii) breach any other covenant in any such debt as a result of which the holders of such debt are permitted to accelerate its maturity.

Short-term debt

We have revolving credit facilities with three Korean banks with a total facility amount of approximately $12,163,000 of which $2,339,000 was borrowed at average interest rates of 3.46% at March 31, 2014. In Hungary, there are two revolving credit facilities with two separate banks for a total credit facility of $4,312,000 of which nothing is borrowed at March 31, 2014. During the quarter ended March 31, 2014, we entered into a revolving credit facility in China with one bank for a total credit facility of $10,000,000 of which $2,926,000 was borrowed at an average interest rate of 5.6% at March 31, 2014.

Capital leases

Capital leases have been capitalized using nominal interest rates ranging from 4.0% to 15.1% as determined by the dates we entered into the leases. We had assets under capital leases of approximately $2,954,000 at March 31, 2014 and approximately $3,050,000 at December 31, 2013, net of accumulated amortization.

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Consolidated statements of operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
Net sales	$ 300,294	$ 281,726
Cost of goods sold	245,827	226,747
Gross profit	54,467	54,979
Selling, general, and administrative expenses	33,339	40,150
Restructuring and other charges	314	681
Operating income	20,814	14,148
Interest expense–net	5,636	6,337
Loss on extinguishment of debt and refinancing fees	0	4,256
Income before income taxes	15,178	3,555
Income tax expense	5,711	1,712
Net income	9,467	1,843
Less net income attributable to noncontrolling interest	0	563
Net income attributable to common stockholders	$ 9,467	$ 1,280
Basic earnings per share:
Earnings per share	$ 0.30	$ 0.04
Weighted average shares outstanding	31,379	31,104
Diluted earnings per share:
Earnings per share	$ 0.30	$ 0.04
Weighted average shares outstanding	31,550	31,261
Dividends declared per common share	$ 0.10	$ 0.10

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Property, plant and equipment

3 Months Ended

Mar. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure

6. Property, plant and equipment

Depreciation and amortization expense of property, plant, and equipment for the three months ended March 31, 2014 and 2013 was $5,394,000 and $4,632,000, respectively.

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Inventories

3 Months Ended

Mar. 31, 2014

Inventory [Abstract]

Inventory Disclosure

5.Inventories

Net inventories consisted of the following:

	March 31,		December 31,
(In thousands)	2014		2013
Raw materials	$	48,309	$	42,322
Core inventory	37,301		36,581
Work-in-process	10,028		8,398
Finished goods	83,047		72,039
	$	178,685	$	159,340

Raw materials also include materials consumed in the manufacturing and remanufacturing process, but not directly incorporated into the finished products.

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Stock-based compensation

3 Months Ended

Mar. 31, 2014

Share-based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments

17. Stock-based compensation

On February 14, 2013, we filed a Form S-8 to register 5,500,000 shares which may be issued pursuant to the Omnibus Incentive Plan. The Omnibus Incentive Plan became effective on October 27, 2010, was amended on March 24, 2011, and permits our Compensation Committee to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other cash or share based awards to our employees and non-employee directors. As of March 31, 2014, there were 3,077,909shares available to be issued under the Omnibus Incentive Plan.

During the three months ended March 31, 2014, executive officers and other key employees received restricted stock awards of 178,279 common shares with a weighted average grant date value of $21.99, based on the closing price of our common stock on the respective grant date as reported on the NASDAQ Stock Market. These awards are 50% time-based and 50% performance-based. The time-based restricted shares vest equally over a three-year period and one-third of the performance-based restricted shares will be available to vest for each of the calendar years 2014, 2015 and 2016 based on a target operating income for each of the years. Additionally, executive officers and other key employees were granted 237,640 stock option awards which vest equally over a three-year period with a term of seven years and a weighted average exercise price of $21.99.

Also during the three months ended March 31, 2014, our Board of Directors received restricted stock awards of 27,072 common shares and stock option awards of 36,083 common shares. One-half of the restricted stock shares and stock options granted to the Board of Directors vest at each anniversary of the grant date. Restricted stock granted to the Board of Directors were valued at $21.98, which was the closing price of our common stock on the grant date as reported on the NASDAQ Stock Market. Stock options granted to the Board of Directors have a term of seven years and an exercise price of $21.98.

We estimated the grant date fair value of all stock options granted during the three months ended March 31, 2014 using the Black-Scholes valuation model. The weighted average valuation per share was $7.07 based on the following assumptions: Risk-free interest rate: 1.53%, Dividend Yield: 1.82%, Expected Volatility: 43.20% and Expected Term: 4.5 years.

Shares issued upon exercise of stock options were 2,397 during the three months ended March 31, 2014. There were no stock option exercises during the three months ended March 31, 2013.

Noncash compensation expense related to all types of awards was recognized for the three months endedMarch 31, as follows:

	Three months ended March 31,
(In thousands)	2014		2013
Stock-based compensation expense	$	1,219	$	1,497

If factors change and we employ different assumptions, stock-based compensation expense may differ significantly from what we have recorded in the past. If there are any modifications or cancellations of the underlying unvested securities, we may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that we grant additional equity awards to employees or we assume unvested equity awards in connection with acquisitions.

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Stockholders' equity

3 Months Ended

Mar. 31, 2014

Stockholders' Equity Attributable to Parent [Abstract]

Stockholders' Equity Note Disclosure

13. Stockholders' equity

Common stock

On December 12, 2012, we amended our Amended and Restated Certificate of Incorporation. The amendment authorizes the Company to issue 280,000,000 shares, consisting of 240,000,000 shares of common stock, par value $0.0001 per share, and 40,000,000 shares of preferred stock, par value $0.0001 per share. As of March 31, 2014, there were 31,995,332 common stock shares outstanding and no preferred stock shares outstanding.

The holders of common stock are entitled to one vote on all matters properly submitted on which the common stockholders are entitled to vote.

Treasury stock

During the first quarter of 2014, we withheld 114,291 shares at cost, or $2,504,000, to satisfy tax obligations for vesting of restricted stock shares granted to our employees under the Remy International, Inc. Omnibus Incentive Plan, or "Omnibus Incentive Plan". In addition,74,892 shares were forfeited and returned to treasury stock during the first quarter of 2014 for no value pursuant to the Omnibus Incentive Plan.

During the first quarter of 2013, we withheld 65,781 shares at cost, or $1,225,000, to satisfy tax obligations for vesting of restricted stock shares granted to our employees under the Omnibus Incentive Plan. In addition, 35,104 shares were forfeited and returned to treasury stock during the first quarter of 2013 for no value pursuant to the Omnibus Incentive Plan.

Dividend payments

On January 30, 2014, our Board of Directors declared a quarterly cash dividend of ten cents ($0.10) per share payable on February 28, 2014 to stockholders of record as of the close of business on February 14, 2014. Cash dividends paid during the first quarter of 2014 were $3,397,000, which also included accrued cash dividends paid on restricted stock vestings.  As of March 31, 2014, a dividend payable of $166,000 was recorded for unvested restricted stock and is payable upon vesting. 

On April 30, 2014, our Board of Directors declared a quarterly cash dividend of ten cents ($0.10) per share, payable on May 30, 2014, to stockholders of record as of May 16, 2014.

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Other current liabilities and accrued expenses

3 Months Ended

Mar. 31, 2014

Other current liabilities and accrued expenses [Abstract]

Other current liabilities and accrued expenses

9. Other current liabilities and accrued expenses

Other current liabilities and accrued expenses consisted of the following:

	March 31,		December 31,
(In thousands)	2014		2013
Accrued warranty	$	28,601	$	27,083
Accrued wages and benefits	17,448		20,016
Current portion of customer obligations	4,681		4,560
Rebates, stocklifts, discounts and returns	20,572		18,922
Current deferred revenue	2,124		2,270
Other	42,765		37,328
	$	116,191	$	110,179

Changes to our current and noncurrent accrued warranty were as follows:

	Three months ended March 31,
(In thousands)	2014			2013
Balance at beginning of period	$	30,781		$	27,194
Provision for warranty	12,170			9,317
Payments and charges against the accrual	(11,825		)	(9,514		)
Increased warranty accruals due to business acquisitions (Note 20)	1,363			—
Balance at end of period	$	32,489		$	26,997

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Restructuring and other charges Restructuring Rollforward Table (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Restructuring Cost and Reserve
Restructuring and other charges	$ 314	$ 681
Payments for restructuring	(1,056)	(2,163)
Employee Severance
Restructuring Cost and Reserve
Restructuring reserve, beginning of period	981	3,573
Restructuring and other charges	228	370
Payments for restructuring	(950)	(1,832)
Restructuring reserve, end of period	259	2,111
Business Exit Costs
Restructuring Cost and Reserve
Restructuring reserve, beginning of period	45	106
Restructuring and other charges	86	311
Payments for restructuring	(106)	(331)
Restructuring reserve, end of period	25	86
Total Restructuring
Restructuring Cost and Reserve
Restructuring reserve, beginning of period	1,026	3,679
Restructuring and other charges	314	681
Payments for restructuring	(1,056)	(2,163)
Restructuring reserve, end of period	$ 284	$ 2,197

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Goodwill and other intangible assets

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

7. Goodwill and other intangible assets

The following table represents the carrying value of other intangible assets:

	As of March 31, 2014						As of December 31, 2013
(In thousands)	Carrying value		Accumulated amortization		Net		Carrying value		Accumulated amortization		Net
Definite-life intangibles:
Intellectual property	$	17,281	$	4,788	$	12,493	$	16,810	$	4,583	$	12,227
Customer relationships	46,500		18,702		27,798		35,500		17,746		17,754
Customer contract	97,997		88,117		9,880		97,789		86,061		11,728
Lease intangible	328		46		282		—		—		—
Total	162,106		111,653		50,453		150,099		108,390		41,709
Indefinite-life intangibles:
Trade names	49,200		—		49,200		48,200		—		48,200
Intangible assets, net	$	211,306	$	111,653	$	99,653	$	198,299	$	108,390	$	89,909
Goodwill	$	286,233	$	—	$	286,233	$	271,418	$	—	$	271,418

Definite-lived intangible assets are being amortized to reflect the pattern of economic benefit consumed.

We perform impairment testing annually or more frequently when events or circumstances indicate that the carrying amount of the above intangibles may be impaired.

On January 13, 2014, we acquired substantially all of the assets of United Starters and Alternators Industries, Inc. ("USA Industries") pursuant to the terms and conditions of the Asset Purchase Agreement. See Note 20 for further information. As a result of the acquisition, we assigned preliminary values to all assets and liabilities acquired, including the customer relationships intangible of $11,000,000 with a useful life of 10 years, $1,000,000 to value the USA Industries trade name with an indefinite life, $328,000 to out-of-market lease intangibles recognized over the remaining term of the lease agreements, and $14,815,000 to goodwill in the purchase price allocation during the three months ended March 31, 2014.

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Other noncurrent assets

3 Months Ended

Mar. 31, 2014

Other noncurrent assets [Abstract]

Other Assets Disclosure

8. Other noncurrent assets

Other noncurrent assets primarily consisted of core return rights of $41,103,000 and noncurrent deferred tax assets of $20,636,000 as of March 31, 2014. Other noncurrent assets primarily consisted of core return rights of $37,250,000 and noncurrent deferred tax assets of $22,113,000 as of December 31, 2013.

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Other noncurrent liabilities

3 Months Ended

Mar. 31, 2014

Other Liabilities, Noncurrent [Abstract]

Other noncurrent liabilities

10. Other noncurrent liabilities

Other noncurrent liabilities consisted of the following:

	March 31,		December 31,
(In thousands)	2014		2013
Noncurrent deferred revenue	4,539		4,755
Other	22,257		20,028
	$	26,796	$	24,783

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Debt Amended and Restated Term B Loan Facility (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014 Amended and Restated Term B Loan Facility	Dec. 31, 2013 Amended and Restated Term B Loan Facility	Mar. 31, 2013 Term B Loan Facility
Debt Instrument
Debt instrument, face amount			$ 300,000		$ 286,978
Debt instrument, unamortized discount			750
Debt instrument, interest rate, stated percentage rate range, minimum			1.25%
Debt instrument, basis spread on variable rate			3.00%
Debt instrument, periodic payment, principal			750
Loss on extinguishment of debt and refinancing fees	0	4,256
Debt, weighted average interest rate			4.25%
Long-term debt, fair value			298,102	300,157
Fair value, option, aggregate differences, long-term debt instruments			3,769	5,156
Covenant agreement, minimum payment missed to fall into default			$ 5,000

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Debt Capital Lease (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
Capital lease, capitalization rate lower bound	4.00%
Capital lease, capitalization rate higher bound	15.10%
Capital leases, balance sheet, assets by major class, net	$ 2,954	$ 3,050

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Debt First Amendment Asset-Based Revolving Credit Facility (Details) (Asset-Based Revolving Credit Facility, First Amendment, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Debt Instrument
Line of credit facility, maximum borrowing capacity	$ 95,000
Line of credit facility, additional borrowing capacity	20,000
Line of credit facility, fair value of amount outstanding	0
Letters of credit outstanding, amount	14,035
Line of credit facility, current borrowing capacity	$ 73,460
Line of credit facility, commitment fee percentage	0.375%
Minimum
Debt Instrument
Debt instrument, basis spread on fixed rate	0.50%
Debt instrument, basis spread on variable rate	1.50%
Maximum
Debt Instrument
Debt instrument, basis spread on fixed rate	1.00%
Debt instrument, basis spread on variable rate	2.00%

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Other current liabilities and accrued expenses (Tables)

3 Months Ended

Mar. 31, 2014

Other current liabilities and accrued expenses [Abstract]

Schedule of Accrued Liabilities

Other current liabilities and accrued expenses consisted of the following:

	March 31,		December 31,
(In thousands)	2014		2013
Accrued warranty	$	28,601	$	27,083
Accrued wages and benefits	17,448		20,016
Current portion of customer obligations	4,681		4,560
Rebates, stocklifts, discounts and returns	20,572		18,922
Current deferred revenue	2,124		2,270
Other	42,765		37,328
	$	116,191	$	110,179

Schedule of Product Warranty Liability

Changes to our current and noncurrent accrued warranty were as follows:

	Three months ended March 31,
(In thousands)	2014			2013
Balance at beginning of period	$	30,781		$	27,194
Provision for warranty	12,170			9,317
Payments and charges against the accrual	(11,825		)	(9,514		)
Increased warranty accruals due to business acquisitions (Note 20)	1,363			—
Balance at end of period	$	32,489		$	26,997

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Financial instruments Factoring Accounts Receivable (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Financial Instruments [Abstract]
Gain (loss) on sale of accounts receivable	$ 1,254	$ 1,505
Accounts receivable factored, gross	$ 237,786		$ 244,940

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Income taxes

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure

15. Income taxes

We compute on a quarterly basis an estimated annual effective tax rate considering ordinary income and related income tax expense. Ordinary income refers to income (loss) before income tax expense excluding significant, unusual, or infrequently occurring items. The tax effect of an unusual or infrequently occurring item is recorded in the interim period in which it occurs. To the extent we cannot reliably estimate annual projected taxes for a taxing jurisdiction, taxes on ordinary income for such a jurisdiction are reported in the period in which they are incurred. Other items included in income tax expense in the periods in which they occur include the cumulative effect of changes in tax laws or rates, foreign exchange gains and losses, adjustments to uncertain tax positions, and adjustments to our valuation allowance due to changes in judgment regarding the realizability of deferred tax assets in future years.

Income tax expense of $5,711,000 for the three months ended March 31, 2014, consisted of U.S. federal income tax expense of $3,587,000, domestic state and local income tax expense of $14,000, and tax expense in various foreign jurisdictions of $2,110,000. Income tax expense of $1,712,000 for the three months ended March 31, 2013, consisted of U.S. federal tax expense of $147,000, domestic state and local tax expense of $8,000, and tax expense in various foreign jurisdictions of $1,557,000.

We have total unrecognized tax benefits of $12,147,000 and $11,456,000 that have been recorded as liabilities as of March 31, 2014 and December 31, 2013, respectively, and we are uncertain as to if or when such amounts may be settled. During the three months ended March 31, 2014 and 2013, we recorded uncertain tax positions of $691,000 and $315,000, respectively.

The effective income tax rate for the three months ended March 31, 2014, differs from the U.S. federal income tax rate primarily due to effect of foreign taxable income. The effective income tax rate for the three months ended March 31, 2013, differs from the U.S. federal income tax rate primarily due to the effect of foreign taxable income, valuation allowance utilization in certain foreign jurisdictions, and tax credits against the U.S. net income reported in the financial statements.

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Acquisition (Notes)

3 Months Ended

Mar. 31, 2014

Acquisitions [Abstract]

Mergers, Acquisitions and Dispositions Disclosures

20. Acquisition

Acquisition of United Starters and Alternators Industries, Inc.

On January 13, 2014, we acquired substantially all of the assets of USA Industries pursuant to the terms and conditions of the Asset Purchase Agreement. USA Industries is a leading North American distributor of premium quality remanufactured and new alternators, starters, constant velocity (CV) axles and disc brake calipers for the light-duty aftermarket. We believe the USA Industries acquisition provides us with a strong platform to leverage our distribution channels with an enhanced portfolio and expand beyond our core rotating electric products. In connection with the closing of the transaction, the assets were placed in Remy USA Industries, L.L.C., a wholly-owned subsidiary of the Company. The results of operations of USA Industries have been included in our consolidated results of operations since the acquisition date.

Preliminary purchase price was $40,609,000, consisting of $38,500,000 in cash, $2,000,000 cash held in escrow, and payables to the former owner of $109,000. The initial purchase price allocation based on their fair values as of the acquisition date was as follows (in thousands):

Cash	$	109
Trade accounts receivable	7,811
Inventories	13,834
Prepaid expenses and other current assets	43
Property, plant and equipment	462
Goodwill	14,815
Intangible assets	12,328
Other noncurrent assets	5,779
Total assets acquired	$	55,181
Accounts payable	$	8,083
Other current liabilities and accrued expenses	6,097
Other noncurrent liabilities	392
Total liabilities acquired	$	14,572
Net assets acquired	$	40,609

Goodwill of $14,815,000, which is deductible for tax purposes, has been recorded based on the initial amount of the preliminary purchase price that exceeds the fair value of the net assets acquired.

For the three months ended March 31, 2014, we recognized a finished goods inventory step-up of $2,509,000, customer relationships amortization of $237,000 and lease intangible amortization of $46,000, all included in cost of goods sold in the accompanying consolidated statement of operations.

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Financial instruments Balance Sheet Locations (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Designated as Hedging Instrument
Derivatives, Fair Value
Total derivative assets	$ 3,315	$ 5,645
Total derivative liabilities	4,608	2,106
Designated as Hedging Instrument | Commodity Contract
Derivatives, Fair Value
Prepaid expenses and other current assets	0	257
Other noncurrent assets	51	195
Other current liabilities and accrued expenses	3,396	0
Other noncurrent liabilities	513	1,785
Designated as Hedging Instrument | Foreign Exchange Contract
Derivatives, Fair Value
Prepaid expenses and other current assets	2,176	3,630
Other noncurrent assets	96	108
Other current liabilities and accrued expenses	481	141
Other noncurrent liabilities	218	180
Designated as Hedging Instrument | Interest Rate Swap
Derivatives, Fair Value
Other noncurrent assets	992	1,455
Other noncurrent liabilities	0	0
Not Designated as Hedging Instrument
Derivatives, Fair Value
Total derivative assets	0	0
Total derivative liabilities	1,405	728
Not Designated as Hedging Instrument | Interest Rate Swap
Derivatives, Fair Value
Other noncurrent assets	0	0
Other noncurrent liabilities	$ 1,405	$ 728

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Business segment and geographical information (Tables)

3 Months Ended

Mar. 31, 2014

Segments, Geographical Areas [Abstract]

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

Information about our net sales by region was as follows:

	Three months ended March 31,
(In thousands)	2014		2013
Net sales to external customers:
United States	$	198,907	$	190,022
Europe	23,075		24,460
Other Americas	10,880		14,159
Asia	67,432		53,085
Total net sales	$	300,294	$	281,726

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Consolidated statements of comprehensive income (loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net income	$ 9,467	$ 1,843
Other comprehensive income (loss):
Foreign currency translation adjustments	(765)	(3,142)
Employee benefit plans, net of tax	86	448
Total other comprehensive loss, net of tax	(4,004)	(4,862)
Comprehensive income (loss)	5,463	(3,019)
Less: Comprehensive income attributable to noncontrolling interest	0	563
Less: Other comprehensive income attributable to noncontrolling interest- foreign currency translation	0	30
Comprehensive income (loss) attributable to Remy International, Inc.	5,463	(3,612)
Foreign Exchange Contract
Other comprehensive income (loss):
Derivative contracts, net of tax	(1,522)	(568)
Commodity Contract
Other comprehensive income (loss):
Derivative contracts, net of tax	(1,522)	(1,330)
Interest Rate Swap
Other comprehensive income (loss):
Derivative contracts, net of tax	$ (281)	$ (270)

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Financial instruments

3 Months Ended

Mar. 31, 2014

Financial Instruments [Abstract]

Financial Instruments Disclosure

4. Financial instruments

Foreign currency risk

We manufacture and sell our products primarily in North America, South America, Asia, Europe and Africa. As a result our financial results could be significantly affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets in which we manufacture and sell our products. We generally try to use natural hedges within our foreign currency activities, including the matching of revenues and costs, to minimize foreign currency risk. Where natural hedges are not in place, we consider managing certain aspects of our foreign currency activities through the use of foreign exchange contracts. We primarily utilize forward exchange contracts with maturities generally within eighteen months to hedge against currency rate fluctuations, and are designated as hedges.

As of March 31, 2014 and December 31, 2013, we had the following outstanding foreign currency contracts that were entered into to hedge forecasted purchases and revenues, respectively:

(In thousands)	Currency denomination
	March 31,		December 31,
Foreign currency contract	2014		2013
South Korean Won Forward	$	77,934	$	74,368
Mexican Peso Contracts	$	73,283	$	73,520
Brazilian Real Forward	$	20,463	$	11,427
Hungarian Forint Forward	€	13,678	€	14,416
Great Britain Pound Forward	£	2,805	£	3,735

Accumulated unrealized net gains of $998,000 and $2,520,000 were recorded in accumulated other comprehensive income (loss) (AOCI) as of March 31, 2014 and December 31, 2013, respectively. As of March 31, 2014, gains of $961,000 are expected to be reclassified to the consolidated statement of operations within the next twelve months. Any ineffectiveness during the three months ended March 31, 2014 and 2013, respectively, was immaterial.

Interest rate risk

On March 27, 2013, we terminated our undesignated Term B Loan interest rate swap and transferred the value into a new undesignated interest rate swap agreement of $72,000,000 of the outstanding principal loan balance under which we swap a variable LIBOR rate with a floor of 1.25% to a fixed rate of 4.045% with an effective date of December 30, 2016 and expiration date of December 31, 2019. The notional value of this interest rate swap is $72,000,000, and is reduced by $187,500 quarterly from the effective date. Due to the significant value of the terminated swaps which were transferred into this new swap, this interest rate swap is an undesignated hedge and changes in the fair value are recorded as interest expense-net in the accompanying consolidated statements of operations.

On March 27, 2013, we also entered into a designated interest rate swap agreement for $72,000,000 of the outstanding principal balance of our long term debt. Under the terms of the new interest rate swap agreement, we swap a variable LIBOR rate with a floor of 1.25% to a fixed rate of 2.75% with an effective date of December 30, 2016 and expiration date of December 31, 2019. The notional value of this interest rate swap is $72,000,000, and is reduced by $187,500 quarterly from the effective date. This interest rate swap has been designated as a cash flow hedging instrument. Accumulated unrealized gains of $992,000, and $1,455,000, excluding the tax effect, were recorded in accumulated other comprehensive income (loss) (AOCI) as of March 31, 2014, and December 31, 2013, respectively. As of March 31, 2014, no gains are expected to be reclassified to the consolidated statement of operations within the next twelve months. Any ineffectiveness during the three months ended March 31, 2014 and 2013 was immaterial.

The interest rate swaps reduce our overall interest rate risk. However, due to the remaining outstanding borrowings on the Amended and Restated Term B Loan and other borrowing facilities that continue to have variable interest rates, management believes that interest rate risk to us could be material if there are significant adverse changes in interest rates.

Commodity price risk

Our production processes are dependent upon the supply of certain components whose raw materials are exposed to price fluctuations on the open market. The primary purpose of our commodity price forward contract activity is to manage the volatility associated with forecasted purchases. We monitor our commodity price risk exposures regularly to maximize the overall effectiveness of our commodity forward contracts. The principal raw material hedged is copper. Forward contracts are used to mitigate commodity price risk associated with raw materials, generally related to purchases forecast for up to twenty-four months in the future. Additionally, we purchase certain commodities during the normal course of business which result in physical delivery and are excluded from hedge accounting.

We had twenty-nine commodity price hedge contracts outstanding at March 31, 2014, and thirty-two commodity price hedge contracts outstanding at December 31, 2013, with combined notional quantities of 5,660 and 6,368 metric tons of copper, respectively. These contracts mature within the next eighteen months. These contracts were designated as cash flow hedging instruments. Accumulated unrealized losses of $3,818,000 and $1,319,000, excluding the tax effect, were recorded in AOCI as of March 31, 2014 and December 31, 2013, respectively. As of March 31, 2014, losses of $3,363,000 are expected to be reclassified to the accompanying consolidated statement of operations within the next 12 months. Hedge ineffectiveness during the three months ended March 31, 2014, and 2013, was immaterial.

Other

We present our derivative positions and any related material collateral under master netting agreements on a gross basis. We have entered into International Swaps and Derivatives Association agreements with each of its significant derivative counterparties. These agreements provide bilateral netting and offsetting of accounts that are in a liability position with those that are in an asset position. These agreements do not require us to maintain a minimum credit rating in order to be in compliance with the terms of the agreements and do not contain any margin call provisions or collateral requirements that could be triggered by derivative instruments in a net liability position. As of March 31, 2014, we have not posted any collateral to support derivatives in a liability position.

For derivatives designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness. Unrealized gains and losses associated with ineffective hedges, determined using the change in fair value method, are recognized in the accompanying consolidated statements of operations. Derivative gains and losses included in AOCI for effective hedges are reclassified into the accompanying consolidated statements of operations upon recognition of the hedged transaction.

Any derivative instrument designated initially, but no longer effective as a hedge, or initially not effective as a hedge, is recorded at fair value and the related gains and losses are recognized in the accompanying consolidated statements of operations. Our undesignated hedges are primarily our interest rate swaps whose fair value at inception of the instrument due to the rollover of existing interest rate swaps resulted in ineffectiveness. The following table discloses the fair values and balance sheet locations of our derivative instruments:

	Asset derivatives					Liability derivatives
(In thousands)	Balance sheet location	March 31, 2014		December 31, 2013		Balance sheet location	March 31, 2014		December 31, 2013
Derivatives designated as hedging instruments:
Commodity contracts	Prepaid expenses and other current assets	$	—	$	257	Other current liabilities and accrued expenses	$	3,396	$	—
Commodity contracts	Other noncurrent assets	51		195		Other noncurrent liabilities	513		1,785
Foreign currency contracts	Prepaid expenses and other current assets	2,176		3,630		Other current liabilities and accrued expenses	481		141
Foreign currency contracts	Other noncurrent assets	96		108		Other noncurrent liabilities	218		180
Interest rate swap contracts	Other noncurrent assets	992		1,455		Other noncurrent liabilities	—		—
Total derivatives designated as hedging instruments		$	3,315	$	5,645		$	4,608	$	2,106
Derivatives not designated as hedging instruments:
Interest rate swap contracts	Other noncurrent assets	$	—	$	—	Other noncurrent liabilities	$	1,405	$	728
Total derivatives not designated as hedging instruments		$	—	$	—		$	1,405	$	728

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended March 31, 2014 (in thousands):

Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in OCI on derivatives (effective portion)			Location of gain (loss) reclassified from AOCI into income (effective portion)	Amount of gain (loss) reclassified from AOCI into income (effective portion)			Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Commodity contracts	$	(3,447	)	Cost of goods sold	$	(948	)	Cost of goods sold	$	(37	)
Foreign currency contracts	(1,124		)	Cost of goods sold	897			Cost of goods sold	—
Interest rate swap contracts	(463		)	Interest expense–net	—			Interest expense–net	—
	$	(5,034	)		$	(51	)		$	(37	)

Derivatives not designated as hedging instruments	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
Interest rate swap	Interest expense–net	$	(677	)

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended March 31, 2013 (in thousands):

Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in OCI on derivatives (effective portion)			Location of gain (loss) reclassified from AOCI into income (effective portion)	Amount of gain (loss) reclassified from AOCI into income (effective portion)		Location of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	Amount of gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Commodity contracts	$	(2,102	)	Cost of goods sold	$	108	Cost of goods sold	$	(29	)
Foreign currency contracts	808			Cost of goods sold	1,334		Cost of goods sold	—
Interest rate swap contracts	(270		)	Interest expense–net	—		Interest expense–net	—
	$	(1,564	)		$	1,442		$	(29	)

Derivatives not designated as hedging instruments	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
Interest rate swap contracts	Interest expense–net	$	(227	)

Concentrations of credit risk

Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of accounts receivable and cash investments. We require placement of cash in financial institutions evaluated as highly creditworthy. Our customer base includes global light and commercial vehicle manufacturers and a large number of retailers, distributors and installers of automotive aftermarket parts. Our credit evaluation process and the geographical dispersion of sales transactions help to mitigate credit risk concentration.

Accounts receivable factoring arrangements

We have entered into factoring agreements with various domestic and European financial institutions to sell our accounts receivable under nonrecourse agreements. These are treated as a sale. The transactions are accounted for as a reduction in accounts receivable as the agreements transfer effective control over and risk related to the receivables to the buyers. We do not service any domestic accounts after the factoring has occurred. We do not have any servicing assets or liabilities. We utilize factoring arrangements as an integral part of financing for us. The cost of factoring such accounts receivable is reflected in the accompanying consolidated statements of operations as interest expense-net with other financing costs. The cost of factoring such accounts receivable for the three months ended March 31, 2014 and 2013, was $1,254,000, and $1,505,000, respectively. Gross amounts factored under these facilities as of March 31, 2014 and December 31, 2013, were $237,786,000, and $244,940,000, respectively. Any change in the availability of these factoring arrangements could have a material adverse effect on our financial condition.

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Other noncurrent liabilities (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Other Liabilities, Noncurrent [Abstract]
Noncurrent deferred revenue	$ 4,539	$ 4,755
Other	22,257	20,028
Other noncurrent liabilities	$ 26,796	$ 24,783

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Reclassifications out of accumulated other comprehensive income (loss) Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cost of goods sold	$ 245,827	$ 226,747
Total before tax	15,178	3,555
Tax (expense) or benefit	5,711	1,712
Net of tax	9,467	1,280
Reclassification out of Accumulated Other Comprehensive Income
Net of tax	(61)	783
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Total before tax	(88)	1,413
Tax (expense) or benefit	124	(284)
Net of tax	36	1,129
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Foreign Exchange Contract
Cost of goods sold	897	1,334
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Commodity Contract
Cost of goods sold	(985)	79
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment
Prior-service costs	454	454
Actuarial losses	(614)	(800)
Total before tax	(160)	(346)
Tax (expense) or benefit	63	0
Net of tax	$ (97)	$ (346)

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Executive officer separation (Notes)

3 Months Ended

Mar. 31, 2013

Executive officer separation [Abstract]

Other Income and Other Expense Disclosure

21. Executive officer separation

On January 31, 2013, we entered into a Transition, Noncompetition and Release Agreement (the "Agreement") with John H. Weber, our former President and Chief Executive Officer, effective February 28, 2013. Pursuant to the terms of the Agreement, Mr. Weber received a lump sum cash payment of $7,000,000 (a decrease to diluted earnings per share of $0.14, net of tax), which is included in selling, general and administrative expenses in the accompanying unaudited consolidated statement of operations for the three months ended March 31, 2013.

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Other commitments and contingencies (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Lorva
Loss Contingencies
Loss Contingency, Damages Sought	$ 17,380
Tecnomatic
Loss Contingencies
Counterclaim Damages Sought, Value	111
Loss Contingency, Damages Sought	110,000
Loss Contingency Accrual	$ 0

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Reclassifications out of accumulated other comprehensive income (loss) (Tables)

3 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Reclassifications Out of Accumulated Other Comprehensive Income (Loss) [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three months ended March 31, 2014 (in thousands):

	Foreign currency translation adjustment			Unrealized gains (losses) on currency hedges			Unrealized gains (losses) on commodity hedges			Interest rate swaps			Employee benefit plan adjustment			Accumulated other comprehensive income (loss)
Balances at December 31, 2013	$	(18,105	)	$	2,520		$	(6,332	)	$	(688	)	$	(18,869	)	$	(41,474	)
Other comprehensive income (loss) before reclassifications	(765		)	(886		)	(2,122		)	(281		)	(11		)	(4,065		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			(636		)	600			—			97			61
Balances at March 31, 2014	$	(18,870	)	$	998		$	(7,854	)	$	(969	)	$	(18,783	)	$	(45,478	)

The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three months ended March 31, 2013 (in thousands):

	Foreign currency translation adjustment			Unrealized gains (losses) on currency hedges			Unrealized gains (losses) on commodity hedges			Interest rate swaps			Employee benefit plan adjustment			Accumulated other comprehensive income (loss)
Balances at December 31, 2012	$	(19,860	)	$	3,426		$	(6,316	)	$	(1,574	)	$	(25,983	)	$	(50,307	)
Other comprehensive income (loss) before reclassifications	(3,172		)	513			(1,282		)	(270		)	102			(4,109		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			(1,081		)	(48		)	—			346			(783		)
Balances at March 31, 2013	$	(23,032	)	$	2,858		$	(7,646	)	$	(1,844	)	$	(25,535	)	$	(55,199	)

Disclosure of Reclassification Amount

The following table discloses the effect of reclassifications of accumulated other comprehensive income on the accompanying consolidated statement of operations (in thousands):

Details about Accumulated Other Comprehensive Income (Loss) Components	Three months ended March 31,						Affected Line Item in the Statement Where Net Income is Presented
	2014			2013
Gains (losses) on cash flow hedges:
Foreign currency contracts	$	897		$	1,334		Cost of goods sold
Commodity contracts	(985		)	79			Cost of goods sold
	(88		)	1,413			Total before tax
	124			(284		)	Tax benefit (expense)
	$	36		$	1,129		Net of tax
Amortization of employee benefit plan costs:
Prior service costs	$	454		$	454		Selling, general and administrative expenses
Net actuarial loss	(614		)	(800		)	Selling, general and administrative expenses
	(160		)	(346		)	Total before tax
	63			—			Tax benefit (expense)
	$	(97	)	$	(346	)	Net of tax
Total reclassifications for the period	$	(61	)	$	783		Net of tax

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Reclassifications out of accumulated other comprehensive income (loss) (Notes)

3 Months Ended

Mar. 31, 2014

Reclassifications Out of Accumulated Other Comprehensive Income (Loss) [Abstract]

Comprehensive Income (Loss) Note

14. Reclassifications out of accumulated other comprehensive income (loss)

The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three months ended March 31, 2014 (in thousands):

	Foreign currency translation adjustment			Unrealized gains (losses) on currency hedges			Unrealized gains (losses) on commodity hedges			Interest rate swaps			Employee benefit plan adjustment			Accumulated other comprehensive income (loss)
Balances at December 31, 2013	$	(18,105	)	$	2,520		$	(6,332	)	$	(688	)	$	(18,869	)	$	(41,474	)
Other comprehensive income (loss) before reclassifications	(765		)	(886		)	(2,122		)	(281		)	(11		)	(4,065		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			(636		)	600			—			97			61
Balances at March 31, 2014	$	(18,870	)	$	998		$	(7,854	)	$	(969	)	$	(18,783	)	$	(45,478	)

The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three months ended March 31, 2013 (in thousands):

	Foreign currency translation adjustment			Unrealized gains (losses) on currency hedges			Unrealized gains (losses) on commodity hedges			Interest rate swaps			Employee benefit plan adjustment			Accumulated other comprehensive income (loss)
Balances at December 31, 2012	$	(19,860	)	$	3,426		$	(6,316	)	$	(1,574	)	$	(25,983	)	$	(50,307	)
Other comprehensive income (loss) before reclassifications	(3,172		)	513			(1,282		)	(270		)	102			(4,109		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			(1,081		)	(48		)	—			346			(783		)
Balances at March 31, 2013	$	(23,032	)	$	2,858		$	(7,646	)	$	(1,844	)	$	(25,535	)	$	(55,199	)

The following table discloses the effect of reclassifications of accumulated other comprehensive income on the accompanying consolidated statement of operations (in thousands):

Details about Accumulated Other Comprehensive Income (Loss) Components	Three months ended March 31,						Affected Line Item in the Statement Where Net Income is Presented
	2014			2013
Gains (losses) on cash flow hedges:
Foreign currency contracts	$	897		$	1,334		Cost of goods sold
Commodity contracts	(985		)	79			Cost of goods sold
	(88		)	1,413			Total before tax
	124			(284		)	Tax benefit (expense)
	$	36		$	1,129		Net of tax
Amortization of employee benefit plan costs:
Prior service costs	$	454		$	454		Selling, general and administrative expenses
Net actuarial loss	(614		)	(800		)	Selling, general and administrative expenses
	(160		)	(346		)	Total before tax
	63			—			Tax benefit (expense)
	$	(97	)	$	(346	)	Net of tax
Total reclassifications for the period	$	(61	)	$	783		Net of tax