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 June 30, 2015
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	47-1744351
(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 July 29, 2015, there were 31,802,084 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	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	41
	PART II - Other Information
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 6.	Exhibits	44
Signatures		45

1

PART I - Financial Information

Item 1. Financial Statements

Remy International, Inc.

Consolidated balance sheets

	June 30,			December 31,
(In thousands, except share information)	2015			2014
Assets:	(unaudited)
Current assets:
Cash and cash equivalents	$	102,446		$	84,885
Trade accounts receivable (less allowances of $1,973 and $1,519)	228,821			210,356
Other receivables	13,970			16,692
Inventories	191,777			164,143
Deferred income taxes	35,715			42,308
Prepaid expenses and other current assets	12,713			11,865
Total current assets	585,442			530,249
Property, plant and equipment	231,665			226,073
Less accumulated depreciation and amortization	(75,225		)	(61,615		)
Property, plant and equipment, net	156,440			164,458
Deferred financing costs, net of amortization	1,341			1,471
Goodwill	263,491			259,586
Intangibles, net	279,877			298,023
Other noncurrent assets	47,844			65,309
Total assets	$	1,334,435		$	1,319,096
Liabilities and Equity:
Current liabilities:
Short-term debt	$	5,793		$	7,761
Current maturities of long-term debt	3,489			3,509
Accounts payable	183,797			177,333
Accrued interest	121			94
Accrued restructuring	420			331
Other current liabilities and accrued expenses	113,607			128,509
Total current liabilities	307,227			317,537
Long-term debt, net of current maturities	340,191			298,295
Postretirement benefits other than pensions	1,378			1,484
Accrued pension benefits	33,310			34,267
Deferred income taxes	49,683			54,783
Other noncurrent liabilities	26,992			26,483
Equity:
Common stock, Par value of $0.0001; 31,811,724 shares outstanding at June 30, 2015, and 32,201,086 shares outstanding at December 31, 2014	3			3
Treasury stock, at cost; 634,064 treasury shares at June 30, 2015, and no treasury shares at December 31, 2014	(11,062		)	—
Additional paid-in capital	598,115			595,627
Retained earnings	8,972			—
Accumulated other comprehensive loss	(20,374		)	(9,383		)
Total Remy International, Inc. stockholders' equity	575,654			586,247
Total liabilities and equity	$	1,334,435		$	1,319,096

See accompanying notes to unaudited condensed consolidated financial statements.

2

Remy International, Inc.

Consolidated statements of operations

(Unaudited)

	Three months ended June 30,					Six months ended June 30,
(In thousands, except per share amounts)	2015			2014		2015		2014
Net sales	$	271,997		$	302,910	$	575,408	$	608,915
Cost of goods sold	237,151			252,913		478,560		512,567
Gross profit	34,846			49,997		96,848		96,348
Selling, general, and administrative expenses	30,906			35,890		64,326		68,821
Restructuring and other charges	371			79		444		393
Operating income	3,569			14,028		32,078		27,134
Interest expense–net	4,123			5,337		9,134		10,591
Income (loss) before income taxes	(554		)	8,691		22,944		16,543
Income tax expense	396			3,661		7,324		6,569
Net income (loss)	$	(950	)	$	5,030	$	15,620	$	9,974
Basic earnings (loss) per share:
Earnings (loss) per share	$	(0.03	)	$	0.16	$	0.49	$	0.31
Weighted average shares outstanding	31,674			31,787		31,759		31,720
Diluted earnings (loss) per share:
Earnings (loss) per share	$	(0.03	)	$	0.16	$	0.49	$	0.31
Weighted average shares outstanding	31,674			31,866		31,842		31,844
Dividends declared per common share	$	0.11		$	0.10	$	0.21	$	0.20

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 June 30,						Six months ended June 30,
(In thousands)	2015			2014			2015			2014
Net income (loss)	$	(950	)	$	5,030		$	15,620		$	9,974
Other comprehensive income (loss):
Foreign currency translation adjustments	(910		)	5,644			(8,903		)	6,441
Currency forward contracts, net of tax	(1,161		)	2,136			(344		)	614
Commodity contracts, net of tax	(306		)	1,856			(1,226		)	264
Interest rate swap contract, net of tax	76			(410		)	(353		)	(691		)
Employee benefit plans, net of tax	(85		)	(139		)	(165		)	(502		)
Total other comprehensive income (loss), net of tax	(2,386		)	9,087			(10,991		)	6,126
Comprehensive income (loss)	$	(3,336	)	$	14,117		$	4,629		$	16,100

See accompanying notes to unaudited condensed consolidated financial statements.

4

Remy International, Inc.

Consolidated statements of cash flows

(Unaudited)

	Six months ended June 30,
(In thousands)	2015			2014
Cash flows from operating activities:
Net income	$	15,620		$	9,974
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization	36,031			36,664
Stock-based compensation	2,325			2,561
Deferred income taxes	1,020			(5,192		)
Accrued pension and postretirement benefits, net	(1,119		)	(2,123		)
Restructuring and other charges	444			393
Cash payments for restructuring charges	(355		)	(1,266		)
Other	1,602			263
Changes in operating assets and liabilities, net of restructuring charges:
Accounts receivable	(11,357		)	(39,230		)
Inventories	(16,936		)	(13,998		)
Accounts payable	4,865			19,939
Other current assets and liabilities, net	(19,913		)	979
Other noncurrent assets and liabilities, net	16,105			(12,908		)
Net cash provided by (used in) operating activities	28,332			(3,944		)
Cash flows from investing activities:
Purchases of property, plant and equipment	(10,412		)	(11,830		)
Net proceeds on sale of assets	29			80
Acquisition of Maval Manufacturing, Inc.	(22,000		)	—
Acquisition of USA Industries, Inc., net of cash acquired of $109	—			(40,070		)
Net cash used in investing activities	(32,383		)	(51,820		)
Cash flows from financing activities:
Change in short-term debt	(1,904		)	4,930
Proceeds from borrowings on Asset-Based Revolving Credit Facility	155,750			—
Payments made on Asset-Based Revolving Credit Facility	(112,150		)	—
Payments made on long-term debt, including capital leases	(1,756		)	(1,693		)
Dividend payments on common stock	(6,800		)	(6,548		)
Purchase of treasury stock	(11,062		)	(2,505		)
Other	1,634			1,227
Net cash provided by (used in) financing activities	23,712			(4,589		)
Effect of exchange rate changes on cash and cash equivalents	(2,100		)	1,619
Net increase (decrease) in cash and cash equivalents	17,561			(58,734		)
Cash and cash equivalents at beginning of period	84,885			114,884
Cash and cash equivalents at end of period	$	102,446		$	56,150
Supplemental disclosure information:
Cash paid for income taxes, net of refunds received	$	6,004		$	9,251
Cash paid for interest expense	8,835			9,779
Noncash investing and financing activities:
Purchases of property, plant and equipment in accounts payable	1,808			2,816

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 are collectively referred to as “we”, “our”, “us”, "Remy", or the “Company”) is a leading global vehicular parts designer, manufacturer, remanufacturer, marketer and distributor of aftermarket and original equipment electrical components for automobiles, light trucks, heavy-duty trucks and other vehicles. We sell our products worldwide primarily under the "Delco Remy", "Remy", "World Wide Automotive", "USA Industries", and "Maval" 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, especially for commercial vehicle applications.

BorgWarner Transaction

On July 12, 2015, we entered into an Agreement and Plan of Merger ("Merger Agreement") with BorgWarner Inc. ("BorgWarner") and Band Merger Sub, Inc., a wholly owned subsidiary of BorgWarner (“Merger Sub”) pursuant to which it is expected that we will merge with and into Merger Sub, with the Company surviving the merger as a wholly-owned subsidiary of BorgWarner (the "BorgWarner Transaction"). The Merger Agreement provides that at the effective time of the merger, if it occurs, each of the outstanding shares of Remy common stock (other than certain shares owned by BorgWarner, Merger Sub, Remy or any subsidiary of BorgWarner, Merger Sub or Remy, and shares that are owned by Remy stockholders who have perfected and not withdrawn a demand for appraisal rights pursuant to Delaware law) will be cancelled and converted into $29.50 in cash, without interest.

The consummation of the BorgWarner Transaction is subject to the satisfaction or waiver of specified closing conditions, including (i) the approval of the Merger Agreement by stockholders representing a majority of our outstanding shares of common stock, (ii) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, (iii) the making or obtaining of any filings, authorizations, consents or approvals regarding the Merger Agreement required pursuant to Antitrust Laws (as defined in the Merger Agreement) in Austria, Germany, China, Korea and Mexico and the termination or expiration of any applicable waiting period thereunder and (iv) other customary closing conditions, including (a) the accuracy of each party’s representations and warranties (subject to customary materiality qualifiers), (b) each party’s compliance with its agreements and covenants contained in the Merger Agreement and (c) the absence of any law, ordinance, rule, regulation, order, judgment or decree being in effect that restrains or enjoins, or otherwise prohibits or makes illegal, the consummation of the BorgWarner Transaction.

The Merger Agreement may be terminated by us or BorgWarner under certain circumstances. In some of those circumstances, we may be required to pay BorgWarner a termination fee of $28,313,000 (or in certain limited circumstances, a lower termination fee of $14,156,000) in connection with the termination of the Merger Agreement. Assuming the timely satisfaction of closing conditions, the BorgWarner Transaction is expected to close during the fourth quarter of 2015.

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Spin-off and Merger Transactions

On August 14, 2012, Fidelity National Special Opportunities, Inc., (now known as Fidelity National Financial Ventures, LLC., or "FNFV"), a wholly-owned subsidiary of Fidelity National Financial, Inc. ("FNF"), a leading provider of title insurance, mortgage services and restaurant and diversified services, increased its ownership position in Remy Holdings, Inc. ("Old Remy") (formerly known as Remy International, Inc.), above 50% (the "Acquisition"). As a result, FNF began consolidating Old Remy's financial results in the third quarter of 2012.

On September 7, 2014, we entered into agreements for a transaction (the "Spin-off Transaction") with FNF. On December 31, 2014, the Spin-off Transaction was completed pursuant to the merger agreement, which was approved by Old Remy's stockholders at a special meeting of stockholders held on the same date. The Spin-off Transaction in effect resulted in the indirect distribution of the shares of common stock of Old Remy that were held by FNF to the holders of its FNFV tracking stock.

In the Spin-off Transaction, FNFV contributed all of the 16,342,508 shares of Old Remy's common stock that FNFV owned and a small subsidiary, Fidelity National Technology Imaging ("Imaging"), into a newly-formed subsidiary ("New Remy"). New Remy was then distributed to FNFV shareholders. Immediately following the distribution of New Remy to FNFV shareholders, New Remy and Old Remy each engaged in stock-for-stock mergers with subsidiaries of a new publicly-traded holding company, New Remy Holdco Corp. ("New Holdco"). The Spin-off Transaction in effect resulted in New Holdco becoming the new public parent of Old Remy. Effective upon the closing of the Spin-off Transaction on December 31, 2014, New Holdco changed its name to "Remy International, Inc." and its shares were listed, and on January 2, 2015 began trading, on NASDAQ under the trading symbol "REMY", which was the same trading symbol used by Old Remy. Old Remy changed its name from "Remy International, Inc." to "Remy Holdings, Inc."

During the six months ended June 30, 2015, Imaging received $1,400,000 from FNF as part of a working capital adjustment in accordance with the Merger Agreement, which was previously included in other receivables at December 31, 2014.

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, 2014.

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.

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 $38,917,000 and $38,541,000 as of June 30, 2015 and December 31, 2014, 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

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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 and is recorded as a component of cost of goods sold. 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 and assumed the additional 272,851 shares issued in respect of the contribution of Imaging were outstanding for the entire period under common control, or August 2012 through December 31, 2014. 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 June 30, 2015, in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 65,390 shares were anti-dilutive and excluded from the diluted calculation. For the three months ended June 30, 2014, in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 78,525 shares were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 555,428 and 273,723 were excluded from the calculation of dilutive earnings per share for the three months ended June 30, 2015 and 2014, respectively.

For the six months ended June 30, 2015 and 2014, in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 83,670 and 124,502 shares, respectively, were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 462,371 and 299,612 were excluded from the calculation of dilutive earnings per share for the six months ended June 30, 2015 and 2014, respectively.

New accounting pronouncements

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory to simplify the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first out or the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

In April 2015, the FASB issued ASU 2015-03, Interest- Imputation of Interest (Simplifying the Presentation of Debt Issuance Costs). This update changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the debt issuance costs is reported as interest expense. This update is effective for annual and interim periods beginning after December 15, 2015, which will require us to adopt these provisions in the first quarter of 2016. Early application is permitted for financial statements that have not been previously issued. Entities would be permitted to apply this update retrospectively to all prior periods for which a balance sheet is presented. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. If a cloud computing arrangement

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includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software license. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for annual and interim periods beginning after December 15, 2015. Early application is permitted. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update was originally effective for annual and interim periods beginning after December 15, 2016, however, in July 2015 the FASB voted to defer the effective date to annual and interim periods beginning after December 15, 2017. Early application is permitted but not before the original effective date. This update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

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 June 30, 2015 and December 31, 2014, are set forth in the table below:

	As of June 30, 2015							As of December 31, 2014
(In thousands)	Asset/ (liability)			Level 2			Valuation technique	Asset/ (liability)			Level 2			Valuation technique
Interest rate swap contracts	$	(4,114	)	$	(4,114	)	C	$	(2,848	)	$	(2,848	)	C
Foreign exchange contracts	(7,877		)	(7,877		)	C	(7,339		)	(7,339		)	C
Commodity contracts	(5,317		)	(5,317		)	C	(4,088		)	(4,088		)	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 June 30, 2015 and December 31, 2014, we had the following outstanding foreign currency contracts that were entered into to hedge forecasted purchases and revenues, respectively:

(In thousands)	Currency denomination
	June 30,		December 31,
Foreign currency contract	2015		2014
South Korean Won	$	66,720	$	82,907
Mexican Peso	$	56,271	$	69,625
Brazilian Real	$	2,526	$	12,318
Hungarian Forint	€	13,785	€	12,646
Great Britain Pound	£	—	£	300

Accumulated unrealized net losses of $(5,006,000) and $(4,662,000) were recorded in accumulated other comprehensive income (loss) (AOCI) as of June 30, 2015 and December 31, 2014, respectively. As of June 30, 2015, losses of $(5,002,000) are expected to be reclassified to the consolidated statement of operations within the next twelve months. Any ineffectiveness during the six months ended June 30, 2015 and 2014, 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 losses of $(863,000) and $(282,000), excluding the tax effect, were recorded in accumulated other comprehensive income (loss) (AOCI) as of June 30, 2015, and December 31, 2014, respectively. As of June 30, 2015, no gains are expected to be reclassified to the consolidated statement of operations within the next twelve months. Any ineffectiveness during the three month periods ended June 30, 2015 and 2014, respectively, 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 thirty-four commodity price hedge contracts outstanding at June 30, 2015, and thirty-seven commodity price hedge contracts outstanding at December 31, 2014, with combined notional quantities of 8,966 and 8,196 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 $(5,259,000) and $(4,092,000), excluding the tax effect, were recorded in AOCI as of June 30, 2015 and December 31, 2014, respectively. As of June 30, 2015, pre-tax losses of $(4,875,000) are expected to be reclassified to the accompanying consolidated statement of operations within the next 12 months. Any ineffectiveness during the six months ended June 30, 2015 and 2014, respectively, 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 June 30, 2015, 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

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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	June 30, 2015		December 31, 2014		Balance sheet location	June 30, 2015		December 31, 2014
Derivatives designated as hedging instruments:
Commodity contracts	Prepaid expenses and other current assets	$	—	$	—	Other current liabilities and accrued expenses	$	4,925	$	3,515
Commodity contracts	Other noncurrent assets	56		—		Other noncurrent liabilities	448		573
Foreign currency contracts	Prepaid expenses and other current assets	424		869		Other current liabilities and accrued expenses	7,749		7,316
Foreign currency contracts	Other noncurrent assets	—		—		Other noncurrent liabilities	552		892
Interest rate swap contracts	Other noncurrent assets	—		—		Other noncurrent liabilities	863		282
Total derivatives designated as hedging instruments		$	480	$	869		$	14,537	$	12,578
Derivatives not designated as hedging instruments:
Interest rate swap contracts	Other noncurrent assets	$	—	$	—	Other noncurrent liabilities	$	3,251	$	2,566
Total derivatives not designated as hedging instruments		$	—	$	—		$	3,251	$	2,566

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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 June 30, 2015 (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	$	(1,776	)	Cost of goods sold	$	(1,273	)	Cost of goods sold	$	(23	)
Foreign currency contracts	(2,946		)	Cost of goods sold	(1,483		)	Cost of goods sold	—
Interest rate swap contracts	124			Interest expense–net	—			Interest expense–net	—
	$	(4,598	)		$	(2,756	)		$	(23	)

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	$	105

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended June 30, 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	$	1,784		Cost of goods sold	$	(1,262	)	Cost of goods sold	$	22
Foreign currency contracts	3,909			Cost of goods sold	1,512			Cost of goods sold	—
Interest rate swap contracts	(672		)	Interest expense–net	—			Interest expense–net	—
	$	5,021			$	250			$	22

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	$	(656	)

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The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the six months ended June 30, 2015 (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	$	(3,699	)	Cost of goods sold	$	(2,532	)	Cost of goods sold	$	(42	)
Foreign currency contracts	(2,913		)	Cost of goods sold	(2,684		)	Cost of goods sold	—
Interest rate swap contracts	(580		)	Interest expense–net	—			Interest expense–net	—
	$	(7,192	)		$	(5,216	)		$	(42	)

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	$	(685	)

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the six months ended June 30, 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	$	(1,777	)	Cost of goods sold	$	(2,324	)	Cost of goods sold	$	(15	)
Foreign currency contracts	2,784			Cost of goods sold	2,409			Cost of goods sold	—
Interest rate swap contracts	(1,134		)	Interest expense–net	—			Interest expense–net	—
	$	(127	)		$	85			$	(15	)

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	$	(1,333	)

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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 U.S. 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 June 30, 2015 and 2014 was $673,000 and $1,292,000, respectively. The cost of factoring such accounts receivable for the six months ended June 30, 2015 and 2014 was $1,436,000 and $2,546,000, respectively. Gross amounts factored under these facilities as of June 30, 2015 and December 31, 2014 were $175,055,000 and $229,696,000, 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:

	June 30,		December 31,
(In thousands)	2015		2014
Raw materials	$	58,041	$	46,049
Core inventory	36,845		36,034
Work-in-process	9,363		7,827
Finished goods	87,528		74,233
	$	191,777	$	164,143

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 six months ended June 30, 2015 and 2014 was $12,721,000 and $13,384,000, respectively.

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7. Goodwill and other intangible assets

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

	As of June 30, 2015						As of December 31, 2014
(In thousands)	Carrying value		Accumulated amortization		Net		Carrying value		Accumulated amortization		Net
Definite-life intangibles:
Intellectual property	$	28,628	$	3,905	$	24,723	$	27,833	$	2,980	$	24,853
Customer relationships	210,270		61,508		148,762		206,960		50,558		156,402
Customer contract	81,516		61,901		19,615		93,642		63,285		30,357
Trade names	500		33		467		—		—		—
Lease intangible	420		320		100		420		219		201
Total	321,334		127,667		193,667		328,855		117,042		211,813
Indefinite-life intangibles:
Trade names	86,210		—		86,210		86,210		—		86,210
Intangible assets, net	$	407,544	$	127,667	$	279,877	$	415,065	$	117,042	$	298,023
Goodwill	$	263,491	$	—	$	263,491	$	259,586	$	—	$	259,586

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 March 1, 2015, we completed our previously announced acquisition of substantially all assets of Maval Manufacturing, Inc. pursuant to the terms and conditions of a definitive 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 $3,310,000 with a useful life of 10 years, $500,000 to value the Maval trade name with a useful life of 5 years, and $3,905,000 to goodwill in the preliminary purchase price allocation during the six months ended June 30, 2015. 

Trade names were valued based on the relief of royalty approach. This method allocates value based on what the Company would be willing to pay as a royalty to a third-party owner of the intellectual property or trade name in order to exploit the economic benefits. Customer relationships were valued using an excess earnings approach after considering a fair return on fixed assets, working capital, trade names, intellectual property, and assembled workforce. 

During the six months ended June 30, 2015, we had intellectual property additions of $795,000 which were related to patent defense and filing costs. The weighted average useful life of these intellectual property intangibles was 15 years as of June 30, 2015.

During the six months ended June 30, 2015, we had customer contract intangible additions of approximately $726,000, with a weighted average useful life of 4.3 years based on the estimated useful life of the contracts.

8. Other noncurrent assets

Other noncurrent assets primarily consisted of core return rights of $21,453,000 and noncurrent deferred tax assets of $12,159,000 as of June 30, 2015. Other noncurrent assets primarily consisted of core return rights of $38,940,000 and noncurrent deferred tax assets of $12,028,000 as of December 31, 2014.

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9. Other current liabilities and accrued expenses

Other current liabilities and accrued expenses consisted of the following:

	June 30,		December 31,
(In thousands)	2015		2014
Accrued warranty	$	25,805	$	22,583
Accrued wages and benefits	16,486		18,784
Current portion of customer obligations	1,576		2,234
Rebates, stocklifts, discounts and returns	16,092		20,282
Current deferred revenue	796		865
Other	52,852		63,761
	$	113,607	$	128,509

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

	Three months ended June 30,						Six months ended June 30,
(In thousands)	2015			2014			2015			2014
Balance at beginning of period	$	27,711		$	32,489		$	26,012		$	30,781
Provision for warranty	11,328			9,047			21,892			21,218
Payments and charges against the accrual	(9,748		)	(11,709		)	(18,973		)	(23,535		)
Increased warranty accruals due to business acquisitions (Note 20)	—			—			360			1,363
Balance at end of period	$	29,291		$	29,827		$	29,291		$	29,827

10. Other noncurrent liabilities

Other noncurrent liabilities consisted of the following:

	June 30,		December 31,
(In thousands)	2015		2014
Noncurrent deferred revenue	$	3,590	$	3,967
Other	23,402		22,516
	$	26,992	$	26,483

11. Restructuring and other charges

Total restructuring and other charges of $444,000 were recorded for the six months ended June 30, 2015. These charges consisted of $205,000 of employee termination benefits and $239,000 of other exit costs. Total restructuring and other charges of $393,000 were recorded during the six months ended June 30, 2014. These charges consisted of $230,000 of employee termination benefits and $163,000 of other exit costs. The charges in both periods were primarily related to the closure of our Mezokovesd, Hungary plant and restructuring actions in our North American operations.

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The following table summarizes the activity in our accrual for restructuring and other charges for the three and six month periods ended June 30, (in thousands):

2015	Termination benefits			Exit costs			Total
Accrual at December 31, 2014	$	259		$	72		$	331
Provision	15			58			73
Payments	(54		)	(73		)	(127		)
Accrued at March 31, 2015	$	220		$	57		$	277
Provision	190			181			371
Payments	(33		)	(195		)	(228		)
Accrual at June 30, 2015	$	377		$	43		$	420

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
Provision	2			77			79
Payments	(113		)	(97		)	(210		)
Accrual at June 30, 2014	$	148		$	5		$	153

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

	Total expected costs		Expense incurred in						Estimated future expense
			Six months ended June 30, 2015		Twelve months ended December 31, 2014		Twelve months ended December 31, 2013
2014 Activities
Severance	$	1,347	$	205	$	1,066	$	—	$	76
Exit costs	1,111		161		950		—		—
	$	2,458	$	366	$	2,016	$	—	$	76
2013 Activities
Severance	$	1,976	$	—	$	220	$	1,756	$	—
Exit costs	696		—		4		692		—
	$	2,672	$	—	$	224	$	2,448	$	—
2012 Activities
Severance	$	4,533	$	—	$	—	$	795	$	—
Exit costs	1,633		78		267		823		54
Other charges	1,687		—		—		—		—
	$	7,853	$	78	$	267	$	1,618	$	54

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12. Debt

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

	June 30,			December 31,
(In thousands)	2015			2014
Asset-Based Revolving Credit Facility- Maturity date of September 5, 2018	$	43,600		$	—
Term B Loan, as Amended and Restated - Maturity date of March 5, 2020	292,173			293,637
Total Senior Credit Facility and Notes	335,773			293,637
Capital leases and other obligations	7,907			8,167
Less current maturities	(3,489		)	(3,509		)
Long-term debt less current maturities	$	340,191		$	298,295

On December 31, 2014, in connection with the completion of the Spin-off Transaction, Remy International, Inc. and certain subsidiaries entered into a Second Amendment to the Asset-Based Revolving Credit Facility (“ABL Facility”) and a Second Amendment and Restatement of the Term B Loan Credit Agreement (“Term B Loan”) (collectively, the “Amendments”).

The Amendments permitted the Spin-off Transaction to occur, added New Remy Holdco Corp. and New Remy Corp. as guarantors of the obligations under the foregoing credit facilities, and made conforming changes to reflect the effects of the Spin-off Transaction. There are no other changes that materially modify the foregoing credit facilities.

The ABL Facility 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 Facility maintains the current availability at $95,000,000, but may be increased, under certain circumstances, by $20,000,000. The ABL Facility is secured by substantially all domestic accounts receivable and inventory. At June 30, 2015, the ABL Facility balance was $43,600,000. Based upon the collateral supporting the ABL Facility, the amount borrowed, and the outstanding letters of credit of $2,310,000, there was additional availability for borrowing of $46,146,000 on June 30, 2015. We will incur an unused commitment fee of 0.375% on the unused amount of commitments under the ABL Facility.

The 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 Term B Loan also contains an option to increase the borrowing provided certain conditions are satisfied, including maintaining a maximum leverage ratio. The 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 Facility. 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 Term B Loan is subject to an excess cash calculation which may require the payment of additional principal on an annual basis. At June 30, 2015, the average borrowing rate, including the impact of the interest rate swaps, was 4.25%.

On March 5, 2013, we entered into a First Amendment to our existing Asset-Based Revolving Credit Facility ("ABL First Amendment") to extend the maturity date of the Asset-Based Revolving Credit Facility from December 17, 2015 to September 5, 2018 and reduce the borrowing rate. 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.

As of June 30, 2015, the estimated fair value of our Term B Loan was $294,512,000, which was $2,339,000 more than the carrying value. As of December 31, 2014, the estimated fair value of our Term B Loan was $290,693,000, which was $2,944,000 less than the carrying value. The Level 2 fair market values are based on established market prices as of June 30, 2015 and December 31, 2014. 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 June 30, 2015. 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

19

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 $11,565,000 of which $1,779,000 was borrowed at an average interest rate of 2.61% at June 30, 2015. In Hungary, there is one revolving credit facility with one bank for a total credit facility of $1,038,000 of which $1,014,000 was borrowed at an average interest rate of 2.1% at June 30, 2015. In China there is a revolving credit facility with one bank for a total credit facility of $10,000,000 of which $3,000,000 was borrowed at an average interest rate of 2.04% at June 30, 2015.

Capital leases and other obligations

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 $2,593,000 at June 30, 2015 and approximately $2,810,000 at December 31, 2014, net of accumulated amortization.

On December 29, 2014, we entered into a leaseback financing arrangement with an independent third party involving the sale of a distribution facility with a net book value of approximately $11,207,000 at June 30, 2015 and $11,855,000 at December 31, 2014. We continue to maintain the facility on our books and have included the proceeds from the sale of the facility as a financing obligation totaling $5,800,000 bearing an implied interest rate of 6.5%.

13. Stockholders' equity

Common stock and preferred stock

In connection with the Spin-off Transaction closing on December 31, 2014, we amended our Amended and Restated Certificate of Incorporation, which is substantially identical to Old Remy's Amended and Restated Certificate of Incorporation in effect immediately prior to the closing of the Spin-off Transaction. The rights of stockholders after the closing of the Spin-off Transaction, as a matter of state law and under the relevant organizational documents, are fundamentally the same as the rights of stockholders that were in effect immediately prior to the consummation of the Spin-off Transaction.

Under the Amended and Restated Certificate of Incorporation, the Company is authorized 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 June 30, 2015, there were 31,811,724 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.

Share Repurchase Program

On February 18, 2015, the Board of Directors approved a share repurchase program, effective February 23, 2015, under which we may repurchase up to $100,000,000 of our outstanding common stock shares. Purchases may be made from time to time in the open market at prevailing prices or in privately negotiated transactions through February 28, 2018. During the three months ended June 30, 2015, we paid approximately $9,932,000 in repurchases of our common stock (447,725 shares at an average purchase price of $22.18 per share, excluding commission costs). As of June 30, 2015, the amount remaining under the Board's share repurchase authorization was $90,068,000. The Merger Agreement entered into in connection with the BorgWarner Transaction generally prohibits us from making further repurchases of our common stock.

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Treasury stock

During the six months ended June 30, 2015, we withheld 47,772 shares at cost, or $1,130,000, to satisfy tax obligations for vesting of restricted stock shares and exercises of stock options granted to our employees under the Remy International, Inc. Omnibus Incentive Plan, or "Omnibus Incentive Plan". In addition, 117,457 shares were forfeited and returned to treasury stock during the six months ended June 30, 2015 for no value pursuant to the Omnibus Incentive Plan.

During the six months ended June 30, 2014, we withheld 114,291 shares at cost, or $2,505,000, to satisfy tax obligations for vesting of restricted stock shares and exercises of stock options granted to our employees under the Omnibus Incentive Plan. In addition, 74,892 shares were forfeited and returned to treasury stock during the six months ended June 30, 2014 for no value pursuant to the Omnibus Incentive Plan.

Dividend payments

Our Board of Directors declared quarterly cash dividends of ten cents ($0.10) per share in February 2015 and eleven cents ($0.11) per share in April 2015. Cash dividends paid during the six months ended June 30, 2015 were $6,800,000, which also included accrued cash dividends paid on restricted stock vestings.  As of June 30, 2015, a dividend payable of $114,000was recorded for unvested restricted stock and is payable upon vesting. 

On July 30, 2015, our Board of Directors declared a quarterly cash dividend of eleven cents ($0.11) per share, payable on August 28, 2015, to stockholders of record as of August 14, 2015.

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 andsix months ended June 30, 2015 (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, 2014	$	1,590		$	(4,662	)	$	(1,955	)	$	(172	)	$	(4,184	)	$	(9,383	)
Other comprehensive income (loss) before reclassifications	(7,993		)	(82		)	(1,698		)	(429		)	(105		)	(10,307		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			899			778			—			25			1,702
Balances at March 31, 2015	$	(6,403	)	$	(3,845	)	$	(2,875	)	$	(601	)	$	(4,264	)	$	(17,988	)
Other comprehensive income (loss) before reclassifications	(910		)	(2,295		)	(1,096		)	76			(110		)	(4,335		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			1,134			790			—			25			1,949
Balances at June 30, 2015	$	(7,313	)	$	(5,006	)	$	(3,181	)	$	(525	)	$	(4,349	)	$	(20,374	)

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The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three and six months ended June 30, 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	$	9,441	$	2,753		$	(1,776	)	$	886		$	7,866		$	19,170
Other comprehensive income (loss) before reclassifications	797		(886		)	(2,264		)	(281		)	(463		)	(3,097		)
Amounts reclassified from accumulated other comprehensive income (loss)	—		(636		)	672			—			100			136
Balances at March 31, 2014	$	10,238	$	1,231		$	(3,368	)	$	605		$	7,503		$	16,209
Other comprehensive income (loss) before reclassifications	5,644		3,298			1,101			(410		)	(241		)	9,392
Amounts reclassified from accumulated other comprehensive income (loss)	—		(1,162		)	755			—			102			(305		)
Balances at June 30, 2014	$	15,882	$	3,367		$	(1,512	)	$	195		$	7,364		$	25,296

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 June 30,						Affected Line Item in the Statement Where Net Income is Presented
	2015			2014
Gains (losses) on cash flow hedges:
Foreign currency contracts	$	(1,483	)	$	1,512		Cost of goods sold
Commodity contracts	(1,296		)	(1,240		)	Cost of goods sold
	(2,779		)	272			Total before tax
	855			135			Tax benefit (expense)
	$	(1,924	)	$	407		Net of tax
Amortization of employee benefit plan costs:
Prior service costs	$	—		$	—		Selling, general and administrative expenses
Net actuarial loss	(29		)	(167		)	Selling, general and administrative expenses
	(29		)	(167		)	Total before tax
	4			65			Tax benefit (expense)
	$	(25	)	$	(102	)	Net of tax
Total reclassifications for the period	$	(1,949	)	$	305		Net of tax

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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	Six months ended June 30,						Affected Line Item in the Statement Where Net Income is Presented
	2015			2014
Gains (losses) on cash flow hedges:
Foreign currency contracts	$	(2,684	)	$	2,409		Cost of goods sold
Commodity contracts	(2,574		)	(2,339		)	Cost of goods sold
	(5,258		)	70			Total before tax
	1,657			301			Tax benefit (expense)
	$	(3,601	)	$	371		Net of tax
Amortization of employee benefit plan costs:
Prior service costs	$	—		$	—		Selling, general and administrative expenses
Net actuarial loss	(58		)	(331		)	Selling, general and administrative expenses
	(58		)	(331		)	Total before tax
	8			129			Tax benefit (expense)
	$	(50	)	$	(202	)	Net of tax
Total reclassifications for the period	$	(3,651	)	$	169		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. 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.

The effective income tax rate for the three and six months ended June 30, 2015 and 2014, differs from the U.S. federal income tax rate primarily due to the effect of foreign taxable income, tax credits, and permanent items.

Income Taxes - Bilateral Advance Pricing Agreement

As previously disclosed, the Company has applied for a bilateral Advance Pricing Agreement ("APA") between  the U.S. and South Korea, covering the tax years 2007 through 2014.  The Korean and U.S. tax authorities met in July 2015, and have tentatively agreedon the terms of the APA, subject to additional review and approvals by the respective tax authorities and the Company.  The terms of the agreement are not disclosed to the Company until agreements are finalized. However some limited information has been provided which the Company is currently reviewing and analyzing the impacts.  While final adjustments have not been determined by either the U.S. or South Korea tax authorities, a final agreement may result in income tax expense of up to $20,000,000 and cash outflow of up to $44,000,000.

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16. Employee benefit plans

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

	Three months ended June 30,						Six months ended June 30,
Components of expense	2015			2014			2015			2014
Service costs	$	325		$	289		$	650		$	565
Interest costs	762			755			1,524			1,507
Expected return on plan assets	(761		)	(768		)	(1,522		)	(1,534		)
Recognized net actuarial loss (gain)	53			(147		)	106			(291		)
Net periodic pension cost	$	379		$	129		$	758		$	247

Cash flows

We contributed $1,695,000 and $1,809,000 to our pension plans during the six months ended June 30, 2015 and 2014, respectively. We expect to contribute a total of $2,041,000 to our U.S. pension plans and $2,004,000 to our international pension plans in 2015.

17. Stock-based compensation

Omnibus Incentive Plan

The Omnibus Incentive Plan, which is stockholder-approved, became effective on October 27, 2010, was amended on March 24, 2011 and permits our Compensation Committee of the Board of Directors 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. Actual participation, as well as the terms of the awards to those participants, is determined by the Compensation Committee. The maximum number of shares authorized that may be delivered pursuant to awards under the Omnibus Incentive Plan was 5,500,000. As of June 30, 2015, there were 2,790,000shares available to be issued under the Omnibus Incentive Plan.

On February 23, 2015, executive officers and other key employees received restricted stock awards of 150,280 common shares with a weighted average grant date value of $23.01, 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 2015, 2016 and 2017 based on a target operating income for each of the years. Also on February 23, 2015, we granted an additional time-based restricted stock award of 22,816 common shares which will vest 100% on the first anniversary of the grant date. Additionally, executive officers and other key employees were granted 305,753 stock option awards which vest equally over a three-year period with a term of seven years and a weighted average exercise price of $23.01.

On March 6, 2015, an additional time-based restricted stock award of 15,000 common shares was granted with a grant date value of $22.62 based on the closing price of our common stock on the grant date as reported on the NASDAQ Stock Market. This award will vest 100% on the third anniversary of the grant date.

In May 2015, additional new hire restricted stock awards of 30,558 common shares (including performance shares) were granted with a weighted average grant date value of $21.76 based on the closing price of our common stock on the respective grant dates as reported on the NASDAQ Stock Market. These awards have the same terms and conditions as the awards granted on February 23, 2015 as discussed above. Also in May 2015, we granted new hires 64,980 stock option awards which vest equally over a three-year period with a term of seven years and a weighted average exercise price of $21.76.

Also on February 23, 2015, our Board of Directors received restricted stock awards of 22,815 common shares and stock option awards of 46,418 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 $23.01, which was the closing price of our common stock on the grant date as reported on the NASDAQ

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Stock Market. Stock options granted to the Board of Directors have a term of seven years and an exercise price of $23.01.

We estimated the grant date fair value of all stock options granted during the six months ended June 30, 2015 using the Black-Scholes valuation model. The weighted average valuation per share was $4.78 based on the following assumptions: Risk-free interest rate: 1.41%, Dividend Yield: 1.78%, Expected Volatility: 27.94% and Expected Term: 4.5 years.

Shares issued upon exercise of stock options were 7,036 and 2,397 during the six months ended June 30, 2015 and 2014, respectively.

Noncash compensation expense related to all types of awards was recognized for the three and six months ended June 30, 2015 and 2014 as follows:

	Three months ended June 30,				Six months ended June 30,
(In thousands)	2015		2014		2015		2014
Stock-based compensation expense	$	1,009	$	1,342	$	2,325	$	2,561

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 eligible participants 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 June 30,				Six months ended June 30,
(In thousands)	2015		2014		2015		2014
Net sales to external customers:
United States	$	171,422	$	196,509	$	375,930	$	401,127
Europe	18,107		22,788		37,870		45,863
Other Americas	9,300		11,857		18,109		22,737
Asia	73,168		71,756		143,499		139,188
Total net sales	$	271,997	$	302,910	$	575,408	$	608,915

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19. Other commitments and contingencies

We are party to various legal actions and administrative proceedings and subject to various claims, including those relating to commercial transactions, product liability, safety, health, taxes, environmental and other matters. We believe that none of such actions, other than those discussed below, depart from customary litigation arising in the ordinary course of business. 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 has been recorded in our accompanying consolidated financial statements. For legal proceedings where it has been determined that a loss is either probable but the amount or range of loss is not reasonably estimable, or reasonably possible, we provide disclosure with respect to the matter.

Actual losses may materially differ from the amounts recorded and the ultimate outcomes of our pending cases are generally not yet determinable. At present we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition. However, litigation matters are inherently uncertain, and we cannot currently quantify our ultimate liability for unresolved litigation matters. As a result, it is possible that such liability could materially affect our consolidated financial position or our results of operations or cash flows for an individual reporting period.

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 Old Remy in the Fourth District federal court in San Luis Potosi, Mexico requesting the rescission of two alleged operational service contracts. We filed a timely response in the Fourth District Court 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 Fourth District 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 of this ruling in the Unitary Tribunal in San Luis Potosi, Mexico. On October 2, 2014, the Unitary Tribunal in San Luis Potosi, Mexico ruled on the appeal, reducing the March 2014 lower Fourth District Court award from $17,380,000 to payment of invoices and amounts due of $121,000 plus Lorva's costs and attorney fees. Both Lorva and Old Remy filed a timely appeal of this ruling in the 4th Collegiate Tribunal in San Luis Potosi, Mexico in October 2014. In February 2015, the 4th Collegiate Tribunal sent instructions to the Unitary Tribunal to consider the evidence presented that supports Remy's allegation that the contract is fraudulent and rule on that evidence. In March 2015, the Unitary Tribunal reissued the same judgment as in their prior October 2014 ruling, as a result, Remy filed an appeal with the 4th Collegiate Tribunal in April 2015. We believe it is probable that we should prevail on final appeal based on legal arguments and the facts of this case. As of June 30, 2015, we continue to maintain an immaterial accrual related to this matter.

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

In March 2011, Tecnomatic filed a lawsuit 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. On September 11, 2014, we announced entry into a Settlement Agreement and Mutual General Release (the "Agreement") to settle all disputes that existed among us and Tecnomatic. In addition, we entered into a cross licensing arrangement of certain patents with Tecnomatic. The value of the patents received from Tecnomatic was approximately $13,930,000. Pursuant to the Agreement and the cross licensing arrangement, we paid to Tecnomatic a $16,000,000 cash payment in September 2014 and paid a $16,000,000 cash payment during the six months ended June 30, 2015.

20. Acquisition

Acquisition of Maval Manufacturing, Inc.

On February 19, 2015, we announced that we entered into a definitive agreement to acquire substantially all of the assets of Maval Manufacturing, Inc., a manufacturer, remanufacturer, and distributor of steering systems, components, and specialty products to the automotive service, original equipment power sports, and off-road specialty vehicle markets. The transaction closed effective March 1, 2015. In connection with the closing of the transaction, the assets were placed in Maval Industries, L.L.C. ("Maval"), a wholly-owned subsidiary of the Company. The results of operations of Maval have been included in our consolidated results of operations since the acquisition date.

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Preliminary purchase price was $22,000,000, consisting of $18,700,000 in cash and $3,300,000 cash held in escrow. The initial purchase price allocation based on their fair values as of the acquisition date was as follows:

Trade accounts receivable	$	8,011
Inventories	14,065
Prepaid expenses and other current assets	25
Property, plant and equipment	1,764
Goodwill	3,905
Intangible assets	3,810
Other noncurrent assets	22
Total assets acquired	$	31,602
Accounts payable	$	6,674
Other current liabilities and accrued expenses	2,928
Total liabilities acquired	$	9,602
Net assets acquired	$	22,000

Goodwill of $3,905,000, which is deductible for tax purposes, has been recorded based on the amount of the purchase price that exceeds the fair value of the net assets acquired. The purchase price allocation is preliminary as of June 30, 2015 as we finalize our valuation of long lived assets and any contingent liabilities.

For the three months ended June 30, 2015, we recognized customer relationships and trade name amortization of $108,000, which was included in cost of goods sold in the accompanying consolidated statement of operations.

For the six months ended June 30, 2015, we recognized a finished goods inventory step-up of $587,000 and customer relationships and trade name amortization of $144,000, which was included in cost of goods sold in the accompanying consolidated statement of operations.

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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. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company.  We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law.

The following discussion should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014.

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”, “USA Industries” and “Maval” 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 in North America.

BorgWarner Transaction

On July 12, 2015, we entered into an Agreement and Plan of Merger ("Merger Agreement") with BorgWarner Inc. ("BorgWarner") and Band Merger Sub, Inc., a wholly owned subsidiary of BorgWarner (“Merger Sub”) pursuant to which it is expected that we will merge with and into Merger Sub, with the Company surviving the merger as a wholly-owned subsidiary of BorgWarner (the "BorgWarner Transaction"). The Merger Agreement provides that at the effective time of the merger, if it occurs, each of the outstanding shares of Remy common stock (other than certain shares owned by BorgWarner, Merger Sub, Remy or any subsidiary of BorgWarner, Merger Sub or Remy, and shares that are owned by Remy stockholders who have perfected and not withdrawn a demand for appraisal rights pursuant to Delaware law) will be cancelled and converted into $29.50 in cash, without interest.

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The consummation of the BorgWarner Transaction is subject to the satisfaction or waiver of certain customary closing conditions, including, among others, the approval of the Merger Agreement by stockholders representing a majority of our outstanding shares of common stock and the receipt of antitrust and other regulatory clearances in the U.S., Austria, Germany, China, Korea and Mexico. The Merger Agreement also contains certain termination rights by us and BorgWarner. The Merger Agreement may be terminated by us or BorgWarner under certain circumstances. In some of those circumstances, we may be required to pay BorgWarner a termination fee of $28,313,000 (or in certain limited circumstances, a lower termination fee of $14,156,000) in connection with the termination of the Merger Agreement. Assuming the timely satisfaction of closing conditions, the BorgWarner Transaction is expected to close during the fourth quarter of 2015.

Financial Results

Net sales of $272.0 million for the second quarter of 2015 decreased 10.2% from $302.9 million for the same period in 2014 driven primarily by decreased volume and mix of $28.4 million, a negative pricing impact of $2.9 million, and unfavorable foreign currency translation of $9.2 million. The net sales decrease was partially offset by $9.7 million in second quarter sales of Maval Industries, L.L.C. ("Maval"), which we acquired in March of 2015. We had operating income of $3.6 million during the second quarter of 2015, a decrease of $10.5 million compared to operating income of $14.0 million during the same period in 2014 primarily due a decrease in volume and mix of $8.5 million, negative pricing impact of $2.9 million and negative foreign currency impacts of $1.2 million. These decreases in operating income were partially offset by reductions in selling, general and administrative costs of $5.0 million, which was primarily due to reduced SG&A headcount and lower incentive compensation expense as well as lower legal and professional fees expense.

Acquisition of Maval Manufacturing, Inc.

On February 19, 2015, we announced that we entered into a definitive agreement to acquire substantially all assets of Maval Manufacturing, Inc., a manufacturer, remanufacturer, and distributor of steering systems, components, and specialty products to the automotive service, original equipment power sports, and off-road specialty vehicle markets. Maval adds a new product line that is complimentary to our existing portfolio of products. The transaction closed effective March 1, 2015. In connection with the closing of the transaction, the assets were placed in Maval Industries, L.L.C., a wholly-owned subsidiary of the Company. The results of operations of Maval have been included in our consolidated results of operations since the acquisition date. As of June 30, 2015, the preliminary purchase price was $22.0 million, consisting of $18.7 million in cash and $3.3 million cash held in escrow.

Recent Trends and Conditions

General economic conditions

According to IHS Global Insight, global light duty vehicle production was down by 1% and global medium and heavy duty vehicle production was up 0.5% during the second quarter of 2015 as compared to the same period in 2014. The decrease in light duty vehicle production was driven primarily by a 16% decrease in South America production and a 2% decrease in Europe production. These decreases were partially offset by a 5% increase in China production and a 2% increase in North America production. The increase in global medium and heavy duty production was driven primarily by a 10% increase in North America production and a 1% increase in Korea production offset by an 11% decrease in South America production, a 3% decline in China production and a 3% decline in Europe production. 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 Northeast United States experienced severe cold weather which we believe had a positive impact on our results of operations.

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Pricing pressures from customers

Pressure from our customers to reduce prices is characteristic of the automotive supply industry. Due to the competitive nature of the business, revised terms with customers may impact our ongoing profitability. We anticipate the impact of our pricing to be in the range of 1% to 3% consistent with prior years. We have taken and expect to continue to take steps to improve operating efficiencies and minimize or resist price reductions. We intend to maintain a disciplined approach to customer program pricing and may choose to exit programs with certain customers to protect our margins and cash flow. As a result, we may choose to no longer continue programs with certain customers due to unacceptable competitive pricing or terms. To this end, we have chosen not to meet the demands of a major aftermarket customer due to the negative pricing and working capital impact. While these decisions impact net sales and operating income in the short term, we believe this operating discipline will help to maximize the long-term profitability of the Company. Sales to this customer were $87.7 million for the year ended December 31, 2014. Upon expiration of the contract in January 2015, we invoiced the customer $41.5 million for the sale of cores that were reflected in core right of return in other noncurrent assets as of December 31, 2014, partially offsetting the expected reduction in sales in 2015. We collected a majority of this amount during the first quarter of 2015. Despite this likely reduction, this action will have a positive impact on our net income and cash position in 2015.

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 and six month periods ended June 30, 2015 than for the same periods in 2014.

In our remanufacturing operations, our principal inputs are cores, approximately 90% of which we receive in exchange for remanufactured units. Cores are used starters, alternators, or other multi-line products 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.

Foreign currencies

During the first six months of 2015, approximately 35%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 six months of 2015, we experienced a $3.4 million negative impact from foreign currency effects on our reported earnings in U.S. dollars compared to the first six months of 2014, primarily resulting from the results denominated in other currencies, mainly the Mexican Peso and Brazilian Real, offset by benefits to our reported earnings for results denominated in the the Euro and South Korean Won.

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 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

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the closure of our Mezokovesd, Hungary plant. In addition, during 2014, we consolidated our Mexico operations and announced the planned closure of our operations in New York, obtained from the USA Industries acquisition, to better manage our cost structure.

Income Taxes - Bilateral Advance Pricing Agreement

As previously disclosed, the Company has applied for a bilateral Advance Pricing Agreement ("APA") between the U.S. and South Korea, covering the tax years 2007 through 2014.  The Korean and U.S. tax authorities met in July 2015, and have tentatively agreed on the terms of the APA, subject to additional review and approvals by the respective tax authorities and the Company.  The terms of the agreement are not disclosed to the Company until agreements are finalized. However some limited information has been provided which the Company is currently reviewing and analyzing the impacts.  While final adjustments have not been determined by either the U.S. or South Korea tax authorities, a final agreement may result in income tax expense of up to $20 million and cash outflow of up to $44 million.

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 (loss) attributable to common stockholders before interest expense–net, income tax expense, depreciation and amortization, stock-based compensation expense, restructuring, other charges and other impairment charges, certain purchase accounting finished goods inventory step-up costs, litigation settlements and related legal fees, acquisition related costs, and other adjustments as set forth in the reconciliations provided below. All periods presented conform to this definition.

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 (loss) 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 (loss):

	Three months ended June 30,					Six months ended June 30,
(In thousands)	2015			2014		2015			2014
Net income (loss)	$	(950	)	$	5,030	$	15,620		$	9,974
Adjustments:
Interest expense–net	4,123			5,337		9,134			10,591
Income tax expense	396			3,661		7,324			6,569
Depreciation and amortization	18,994			18,607		36,031			36,664
Stock-based compensation expense	1,009			1,342		2,325			2,561
Restructuring and other charges	371			79		444			393
Litigation settlements and related legal fees	—			1,587		—			2,324
Acquisition related costs	1,175			—		1,271			—
Purchase accounting finished goods inventory step-up	—			965		587			3,474
Other nonrecurring adjustments (a)	411			57		(21,492		)	54
Total adjustments	26,479			31,635		35,624			62,630
Adjusted EBITDA	$	25,529		$	36,665	$	51,244		$	72,604

(a) Represents the elimination of the $22.0 million net impact of one-time core settlements with customers in Q1 2015 and (gain)/loss on sale of fixed assets in both periods.

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Results of operations

The following table presents our consolidated results of operations for the three months ended June 30, 2015 compared to the three months ended June 30, 2014:

Three months ended June 30,						Increase/ (Decrease)			% Increase/ (Decrease)
(In thousands)	2015			2014
Net sales	$	271,997		$	302,910	$	(30,913	)	(10.2	)%
Cost of goods sold	237,151			252,913		(15,762		)	(6.2	)%
Gross profit	34,846			49,997		(15,151		)	(30.3	)%
Selling, general, and administrative expenses	30,906			35,890		(4,984		)	(13.9	)%
Restructuring and other charges	371			79		292			369.6	%
Operating income	3,569			14,028		(10,459		)	(74.6	)%
Interest expense–net	4,123			5,337		(1,214		)	(22.7	)%
Income (loss) before income taxes	(554		)	8,691		(9,245		)	(106.4	)%
Income tax expense	396			3,661		(3,265		)	(89.2	)%
Net income (loss)	$	(950	)	$	5,030	$	(5,980	)	(118.9	)%

Net sales

Net sales decreased by $30.9 million, or 10.2%, to $272.0 million for the three months ended June 30, 2015, from $302.9 million for the same period in 2014. The decrease in net sales was driven by decreased volume and mix of $28.4 million, a negative pricing impact of $2.9 million, and unfavorable foreign currency translation of $9.2 million. The net sales decrease was partially offset by $9.7 million in second quarter sales of Maval, which we acquired in March 2015.

Net sales of new starters and alternators to OEMs in the three months ended June 30, 2015 decreased in light vehicle and commercial vehicle products. Net sales of light vehicle starters and alternators to OEMs were $91.1 million in the three months ended June 30, 2015, a $1.0 million, or 1.1%, decrease compared to $92.1 million in the same period in 2014. These reductions are mainly driven by the end of certain North American programs and softening demand in North America and China, offset by new programs and growth in Hyundai. Net sales of commercial vehicle starters and alternators were $47.2 million in the three months ended June 30, 2015, a $3.6 million, or 7.1%, decrease compared to $50.8 million in the same period in 2014. We also sold $3.0 million of hybrid electric motors to OEMs in the three months ended June 30, 2015, as compared to $3.5 million in the same period in 2014.

Net sales of light vehicle rotating electrical products to aftermarket customers were $62.3 million in the three months ended June 30, 2015, a $36.4 million, or 36.9% decrease from $98.7 million in the same period in 2014. The decrease is primarily a result of loss of business with an aftermarket customer, a program with an aftermarket retailer and lower European sales. Net sales of starters and alternators for commercial vehicles to aftermarket customers were $49.3 million in the three months ended June 30, 2015, a increase of $3.6 million, or 7.9% from $45.7 million in the same period in 2014.

Net sales of remanufactured locomotive power trains and multi-line products, which consist of a small volume of remanufactured steering gears, axles, and brake calipers that we sell in the United States and Europe to aftermarket customers, were $17.7 million in the three months ended June 30, 2015, a $8.1 million, or 84.4% increase from the same period in 2014 as sales from the Maval acquisition of $9.7 million and increased locomotive sales of $0.7 million offset reductions in European sales of multi-line products primarily due to foreign exchange.

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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 $237.2 million in the three months ended June 30, 2015 and $252.9 million in the three months ended June 30, 2014, a decrease of $15.8 million, or 6.2%. The decrease was mainly due to lower volumes with customers. In addition, we did not record any purchase accounting adjustments related to the step-up of finished goods inventory associated with the Maval acquisition during the three months ended June 30, 2015, as compared to $1.0 million related to the USA Industries acquisition in the three months ended June 30, 2014. Cost of goods sold as a percentage of net sales increased during the three months ended June 30, 2015 to 87.2%, from 83.5% in 2014.

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 to 12.8% for the three months ended June 30, 2015 as compared to 16.5% for the three months ended June 30, 2014.

Selling, general and administrative expenses

For the three months ended June 30, 2015, selling, general and administrative expenses, or SG&A, was $30.9 million, which represents a decrease of $5.0 million, or 13.9%, from selling, general and administrative expenses of $35.9 million for the three months ended June 30, 2014. The decrease was primarily related to reduced SG&A headcount and lower incentive compensation expense as well as lower legal and professional fees expense despite $1.2 million of expenses for outside legal and financial advisory fees associated with the Maval acquisition and BorgWarner Transaction recorded in the three months ended June 30, 2015.

Restructuring and other charges

Restructuring and other charges increased by $0.3 million, to $0.4 million for the three months ended June 30, 2015 compared to $0.1 million for the same period in 2014. The restructuring charges in both periods related to ongoing restructuring actions in our Mezokovesd, Hungary facility and other operational restructuring efforts in our North American operations.

Interest expense–net

Interest expense–net decreased by $1.2 million to $4.1 million for the three months ended June 30, 2015 from $5.3 million in the same period in 2014. The decrease was primarily driven by favorable changes in the valuation of our undesignated interest rate swap contracts of $0.7 million and a $0.6 million decrease in interest expense associated with lower factored receivables. These decreases were offset by higher interest expense of $0.2 due to borrowings on our Asset-Based Revolving Credit Facility.

Income tax expense

Income tax expense decreased by $3.3 million to $0.4 million for the three months ended June 30, 2015 from $3.7 million for the same period in 2014. The decrease is primarily driven by lower income before income taxes.

Net income (loss)

Our net loss for the three months ended June 30, 2015 was approximately $1.0 million as compared to net income of $5.0 million for the three months ended June 30, 2014, for the reasons described above.

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The following table presents our consolidated results of operations for the six months ended June 30, 2015 compared to the six months ended June 30, 2014:

Six months ended June 30,					Increase/ (Decrease)			% Increase/ (Decrease)
(In thousands)	2015		2014
Net sales	$	575,408	$	608,915	$	(33,507	)	(5.5	)%
Cost of goods sold	478,560		512,567		(34,007		)	(6.6	)%
Gross profit	96,848		96,348		500			0.5	%
Selling, general, and administrative expenses	64,326		68,821		(4,495		)	(6.5	)%
Restructuring and other charges	444		393		51			13.0	%
Operating income	32,078		27,134		4,944			18.2	%
Interest expense–net	9,134		10,591		(1,457		)	(13.8	)%
Income before income taxes	22,944		16,543		6,401			38.7	%
Income tax expense	7,324		6,569		755			11.5	%
Net income	$	15,620	$	9,974	$	5,646		56.6	%

Net sales

Net sales decreased by $33.5 million, or 5.5%, to $575.4 million for the six months ended June 30, 2015, from $608.9 million for the same period in 2014. The decrease in net sales was driven by decreased volume and mix of $18.0 million, excluding the impact of an expiration of customer contract, a negative pricing impact of $4.2 million, and unfavorable foreign currency translation of $15.8 million. The net sales decrease was partially offset by a one time settlement of cores with a customer whose contract expired in January 2015. The net impact for this customer was a decrease of $9.1 million in sales period over period. In addition, we had $13.7 million in sales from Maval, which we acquired in March of 2015.

Net sales of new starters and alternators to OEMs in the six months ended June 30, 2015 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 $176.5 million in the six months ended June 30, 2015, a $5.3 million, or 2.9%, decrease compared to $181.8 million in the same period in 2014. These reductions are mainly driven by the end of certain North American programs and softening demand in North America and China, offset by new programs and growth in Hyundai. Net sales of commercial vehicle starters and alternators were $94.4 million in the six months ended June 30, 2015, a $2.5 million, or 2.6%, decrease compared to $96.9 million in the same period in 2014. We also sold $5.6 million of hybrid electric motors to OEMs in the six months ended June 30, 2015, as compared to $7.4 million in the same period in 2014.

Net sales of light vehicle rotating electrical products to aftermarket customers were $169.5 million in the six months ended June 30, 2015, a $31.9 million, or 15.8% decrease from $201.4 million in the same period in 2014. The decrease is primarily a result of the loss of business with an aftermarket customer, a program with an aftermarket retailer and lower European sales. Net sales of starters and alternators for commercial vehicles to aftermarket customers were $95.5 million in the six months ended June 30, 2015, an increase of $4.8 million, or 5.3% from $90.7 million in the same period in 2014.

Net sales of remanufactured locomotive power trains and multi-line products, which consist of a small volume of remanufactured steering gears, axles, and brake calipers that we sell in the United States and Europe to aftermarket customers, were $31.7 million in the six months ended June 30, 2015, a $7.1 million, or 28.9% increase from the same period in 2014 as sales of the Maval acquisition of $13.7 million and increased locomotive sales of $1.9 million offset reductions in European sales of multi-line products primarily due to foreign exchange.

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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 $478.6 million in the six months ended June 30, 2015 and $512.6 million in the six months ended June 30, 2014, a decrease of $34.0 million, or 6.6%. The decrease was mainly due to lower sales volumes, excluding one time settlements of cores with customers. The core settlements in the six months ended June 30, 2015 resulted in a 2.7% increase in margins during the six months ended June 30, 2015. In addition, we also recorded $0.6 million related to the step-up of finished goods inventory associated with the Maval acquisition during the six months ended June 30, 2015, as compared to $3.5 million related to the USA Industries acquisition in the six months ended June 30, 2014. As a result, cost of goods sold as a percentage of net sales decreased during the six months ended June 30, 2015 to 83.2%, from 84.2% in 2014.

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 increased to 16.8% for the six months ended June 30, 2015 as compared to 15.8% for the six months ended June 30, 2014.

Selling, general and administrative expenses

For the six months ended June 30, 2015, selling, general and administrative expenses, or SG&A, was $64.3 million, which represents an decrease of $4.5 million, or 6.5%, from selling, general and administrative expenses of $68.8 million for the six months ended June 30, 2014. The decrease was primarily related to reduced SG&A headcount and lower incentive compensation expense as well as lower legal and professional fees expense offset by additional SG&A expenses associated with the Maval acquisition and BorgWarner Transaction.

Restructuring and other charges

Restructuring and other charges decreased by $0.1 million, to $0.4 million for the six months ended June 30, 2015 compared to $0.4 million for the same period in 2014. The restructuring charges in both periods related to ongoing restructuring actions in our Mezokovesd, Hungary facility and other operational restructuring efforts in our North American operations.

Interest expense–net

Interest expense–net decreased by $1.5 million to $9.1 million for the six months ended June 30, 2015 from $10.6 million in the same period in 2014. The decrease was primarily driven by a $1.1 million decrease in interest expense associated with lower factored receivables and favorable changes in the valuation of our undesignated interest rate swap contracts of $0.6 million. These decreases were partially offset by $0.3 million in interest expense on our Asset-Based Revolving Credit Facility.

Income tax expense

Income tax expense increased by $0.8 million to $7.3 million for the six months ended June 30, 2015 from $6.6 million for the same period in 2014. The increase is primarily driven by the increase in income before taxes of $6.4 million.

Net income

Our net income for the six months ended June 30, 2015 was $15.6 million as compared to $10.0 million for the six months ended June 30, 2014, for the reasons described above.

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Liquidity and capital resources

Our primary sources of liquidity are cash flows generated from operations and the various borrowing and factoring arrangements described below, including our revolving credit facilities. 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. These requirements generally consist of working capital, capital expenditures, research and development programs, debt service, cash taxes and pension contributions. 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 June 30, 2015, we had cash and cash equivalents on hand of $102.4 million of which $97.1 million was held by our subsidiaries outside of the U.S. Cash held by these subsidiaries is used to fund foreign operational activities and future investments. If these funds were repatriated to the U.S., we would be required to provide for U.S. federal and state income tax, foreign income tax, and foreign withholding taxes. We have not provided for such taxes as it is our intention that those funds are permanently reinvested outside the U.S. and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations.

Total liquidity as of June 30, 2015, including cash on hand, availability under the ABL Facility, and availability under short-term debt credit facilities, was $165.4 million.

Cash flows

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

Six months ended June 30,
(In thousands)	2015			2014
Net cash provided by (used in):
Operating activities before changes in operating assets and liabilities	$	55,568		$	41,274
Changes in operating assets and liabilities	(27,236		)	(45,218		)
Operating activities	28,332			(3,944		)
Investing activities	(32,383		)	(51,820		)
Financing activities	23,712			(4,589		)

Cash flows-Operating activities

Cash provided by operating activities was $28.3 million versus cash used in operations of $3.9 million for the six months ended June 30, 2015 and 2014, respectively. The increase in operating cash flows from 2014 was primarily a result of the higher net income as discussed above.

Operating cash flows were increased primarily due to the collection of $40.5 million related to a core settlement in connection with a contract expiration in the three months ended March 31, 2015. We experienced a decrease in operating cash outflows for expenditures on inventory replenishment of approximately $26.2 million in 2015 to due to the decreased sales levels.  Operating cash flows decreased by approximately $13.8 million as a result of extended vendor payment terms in 2014, as compared to our mix of purchases slightly increasing our days payable outstanding during the  six months ended June 30, 2015.  The reduction in sales and collection of payments from customers resulted in a decrease in cash flows from operations of $13.0 million during the  six months ended June 30, 2015 as compared to the six month ended June 30, 2014. Cash payments for restructuring charges were $0.9 million lower in the six months ended June 30, 2015 due to the nature and timing of restructuring actions. Additionally, we paid $4.6 million less in payments on warranty claims in the six months ended June 30, 2015 as compared to the payments made in the same period in 2014. We also made a final $16.0 million payment in March 2015 related to the previously announced litigation settlement.

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Cash paid for interest for the six months ended June 30, 2015 was $8.8 million as compared to $9.8 million for the six months ended June 30, 2014, a decrease of $0.9 million. Cash payments were lower primarily due to lower accounts receivable factoring during 2015, partially offset by higher interest payments on our Asset-Based Revolving Credit Facility.

Cash paid for taxes for the six months ended June 30, 2015 was $6.0 million, compared to $9.3 million for the six months ended June 30, 2014, a decrease of $3.2 million. The reason for the decrease was primarily due to lower foreign cash payments as a result of lower foreign taxable income and tax credits in 2015.

Cash flows-Investing activities

Cash used in investing activities for the six months ended June 30, 2015 was $32.4 million representing a $19.4 million decrease compared to the $51.8 million cash used in investing activities for the six months ended June 30, 2014. During first quarter of 2015, we completed our acquisition of Maval for $22.0 million in cash. During the first quarter of 2014, we completed our acquisition of USA Industries for approximately $40.1 million, net of cash acquired.

Cash flows-Financing activities

Cash provided by financing activities for the six months ended June 30, 2015 was $23.7 million, compared to cash used in financing activities of $4.6 million for the six months ended June 30, 2014. During the six months ended June 30, 2015, we paid $6.8 million in quarterly cash dividends to our common stockholders as compared to $6.5 million during the same period in 2014. During the second quarter of 2015, our Board of Directors increased the quarterly cash dividend per share by 10% to $0.11 per share. In addition, we repurchased $11.1 million of our common stock during the first half of 2015, as compared to $2.5 million during the six months ended June 30, 2014. Repurchases in both periods included shares to satisfy tax withholding obligations of participants under our stock-based compensation programs. Also during the six months ended June 30, 2015, we paid $9.9 million in repurchases of our common stock under our Board approved share repurchase program. In connection with the vesting of restricted stock grants during the first half of 2015, we also recognized an excess tax benefit of $0.1 million, compared to a $1.1 million excess tax benefit recorded in the same period in 2014. During the six months ended June 30, 2015, we received $1.4 million from FNF as part of a working capital adjustment in accordance with the Merger Agreement.

During the six months ended June 30, 2015, we borrowed $155.8 million and also repaid $112.2 million on our Asset-Based Revolving Credit Facility. The proceeds on the borrowings were used for general corporate working capital purposes including a $16.0 million payment related to a previously announced litigation settlement. In addition, we funded the acquisition of Maval through borrowings under the Asset-Based Revolving Credit Facility. The change in short-term debt during the six months ended June 30, 2015 was due to borrowings and repayments on our revolving credit facilities. During the six months ended June 30, 2015, we borrowed $1.0 million on our revolving credit facility in Hungary to fund general corporate purposes. We also repaid $2.9 million on our revolving credit facility in China during the six months ended June 30, 2015.

Financing arrangements

Our primary financing facilities are an Asset-Based Revolving Credit Facility (the "ABL Facility") and a Term B Loan (the "Term B Loan").

Asset-Based Revolving Credit Facility

The ABL Facility 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 Facility maintains the current availability at $95,000,000, but may be increased, with the consent of lenders, by $20,000,000. The ABL Facility is secured by substantially all domestic accounts receivable and inventory. At June 30, 2015, the ABL Facility balance was $43,600,000. Based upon the collateral supporting the ABL Facility, the amount borrowed, and the outstanding letters of credit of $2,310,000, there was additional availability for borrowing of $46,146,000. We will incur an unused commitment fee of 0.375% on the unused amount of commitments under the ABL Facility. The ABL Facility expires September 5, 2018.

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Term B Loan

The 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 Term B Loan also contains an option to increase the borrowing provided certain conditions are satisfied, including maintaining a maximum leverage ratio. The 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 Facility. The outstanding principal balance of the Term B Loan was $292,500,000 as of June 30, 2015. 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 Term B Loan is subject to an excess cash calculation which may require the payment of additional principal on an annual basis. At June 30, 2015, the average borrowing rate, including the impact of the interest rate swaps, was 4.25%.

Both the ABL Facility and the Term B Loan contain various covenants and representations that are customary for transactions of this nature. We are in compliance with all covenants as of June 30, 2015. 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 credit agreements also includes events of default customary for a facilities of these types, 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 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.

See Note 12 to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Report for a description of and for more details on the ABL Facility and the 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.

Non-U.S. borrowing arrangements

At June 30, 2015, our subsidiaries outside the U.S. also had various uncommitted credit facilities, of which $16.8 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.

Factoring agreements

We have also entered into factoring agreements with various U.S., Korean 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. We utilize factoring arrangements as an integral part of our financing. 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.

Share Repurchase Program

On February 18, 2015, our Board of Directors approved a share repurchase program, effective February 23, 2015, under which we may repurchase up to $100.0 million of our outstanding common stock shares. Purchases may be made from time to time in the open market at prevailing prices or in privately negotiated transactions through February 28, 2018. During the three months ended June 30, 2015, we paid $9.9 million in repurchases of our common stock (447,725 shares at an average purchase price of $22.18 per share, excluding commission costs). As of June 30, 2015, the amount remaining under the Board's share repurchase authorization was $90.1 million. The Merger Agreement entered into in connection with the BorgWarner Transaction generally prohibits us from making further repurchases of our common stock.

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Contractual obligations

There were no material changes in our contractual obligations during the six months ended June 30, 2015 from what was previously described in our Annual Report on Form 10-K for the year ended December 31, 2014 other than related to the borrowings against our ABL Facility discussed above and leases described below.

In connection with the Maval acquisition, we acquired operating leases for two facilities in Twinsburg, Ohio, which require future cash payments of $1.3 million over the remaining lease terms through 2018. In addition, we entered into a lease for our Peru, Indiana facility which requires future cash payments of $1.2 million over the remaining lease terms through 2022.

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.

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, 2014. There have been no significant changes in our critical accounting policies and estimates during the six months ended June 30, 2015.

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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, 2014, filed with the U.S. Securities and Exchange Commission on March 2, 2015.

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 and Chief Financial Officer (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 June 30, 2015. 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 June 30, 2015.

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 June 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. On March 1, 2015, the Company completed its acquisition of Maval and is currently integrating Maval into its operations, compliance programs, and internal control processes. As permitted by SEC rules and regulations, the Company has excluded Maval from management's evaluation of internal control over financial reporting as of June 30, 2015.

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, 2014, filed with the U.S. Securities and Exchange Commission on March 2, 2015, other than the risk factors related to the Transaction with Borg Warner as noted below:

The BorgWarner Transaction is subject to a number of conditions precedent, including stockholder approval and the expiration of applicable waiting periods and the receipt of approvals, consents or clearances from domestic and foreign regulatory authorities, that, if not obtained or not obtained in a timely manner, could delay or prevent completion of the BorgWarner Transaction.

The BorgWarner Transaction is subject to a number of conditions precedent.

Among other things, the Merger Agreement for the BorgWarner Transaction must be adopted by the affirmative vote of a majority of our stockholders. While the Company intends to call a special meeting of stockholders to consider and vote on the BorgWarner Transaction, stockholders could seek to enjoin the meeting. Even if such stockholders meeting is ultimately held, there is no guarantee that the Company’s stockholders will approve the BorgWarner Transaction by the requisite vote at such meeting, or at all.

In addition, before the BorgWarner Transaction may be completed, any waiting period (or extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) muat have been expired or terminated, and any filings, authorizations, consents or approvals regarding the BorgWarner Transaction required pursuant to antitrust laws (as defined in the Merger Agreement) in Austria, China, Germany, South Korea and Mexico must be made or

41

obtained and any applicable waiting periods under such laws must have expired or been terminated. There can be no assurance that all of the regulatory approvals described above, or any other regulatory approvals that might be required to consummate the BorgWarner Transaction, will be obtained and, if obtained, there can be no assurance as to the timing of any approvals, ability to obtain the approvals on satisfactory terms or the absence of any litigation challenging such approvals. At any time before or after the completion of the BorgWarner Transaction (and notwithstanding the termination of the waiting period under the HSR Act), the U.S. Department of Justice, Federal Trade Commission or any state or non-U.S. governmental entity could take such action, under antitrust laws or otherwise, as it deems necessary or desirable in the public interest. Such action could include seeking to enjoin the completion of the BorgWarner Transaction and seeking the divestiture of substantial assets of the Company or BorgWarner. Private parties may also seek to take legal action under antitrust laws under certain circumstances.

The termination of the BorgWarner Transaction could negatively impact Remy.

If the BorgWarner Transaction is not completed for any reason, Remy may be adversely affected and would be subject to a number of risks, including the following:

• Remy may experience negative reactions from the financial markets, including negative impacts on its stock price;

• Remy may experience negative reactions from its stockholders, customers, suppliers, and employees; and

• Remy will be required to pay certain costs relating to the BorgWarner Transaction, whether or not the BorgWarner Transaction is completed, including, in some cases, a termination fee.

The merger agreement for the BorgWarner Transaction restricts the operation of Remy’s business

Under the merger agreement for the BorgWarner Transaction, Remy is subject to restrictions on its business activities and must generally operate its business in the ordinary course consistent with past practice (subject to certain exceptions). These restrictions could restrict Remy’s ability to, or prevent Remy from, pursuing attractive business opportunities (if any) that arise prior to the completion of the BorgWarner Transaction.

The BorgWarner Transaction may impair our ability to attract and retain qualified employees

Uncertainty over the effects of the BorgWarner Transaction may make it more difficult to attract and retain qualified employees.

The BorgWarner Transaction may divert management attention from our business

Matters relating to the BorgWarner Transaction (including integration planning) will require substantial commitments of time and resources by Remy management, which would otherwise have been devoted to day-to-day operations and may negatively impact our business, and could otherwise disrupt out business.

The BorgWarner Transaction may interfere with our relationships with customers, suppliers and other business partners

Uncertainty over the effects of the BorgWarner Transaction may make it more difficult to maintain relationships with existing, and enter into relationships with new, customers, suppliers, vendors, licensors, licensees and other business partners.

42

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

A summary of our share repurchases during the quarter ended June 30, 2015 is shown below:

Period	Total number of shares purchased(1)	Average price paid per share(2)		Total number of shares purchased as part of publicly announced plans or programs(3)	Maximum number (or approximate dollar value) of shares that may yet by purchased under the plans or programs(3)
4/1/2015 - 4/30/2015	—	$	—	—	$	100,000,000
5/1/2015 - 5/31/2015	447,725	22.18		447,725	90,068,000
6/1/2015 - 6/30/2015	—	—		—	90,068,000
Total	447,725	$	22.18	447,725	$	90,068,000

(1) Shares purchased during the quarter ended June 30, 2015 were in connection with our share repurchase program as discussed below. There were no shares of common stock withheld to satisfy employee payroll tax withholding for restricted stock vesting distributions.

(2) Average price paid per share excludes broker commission costs.

(3) On February 18, 2015, our Board of Directors approved a share repurchase program, effective February 23, 2015, under which we may repurchase up to $100,000,000 of our outstanding common stock shares. Purchases may be made from time to time in the open market at prevailing prices or in privately negotiated transactions through February 28, 2018. The Merger Agreement entered into in connection with the BorgWarner Transaction generally prohibits us from making further repurchases of our common stock.

43

Item 6.    Exhibits

Exhibit Index

		Incorporated by reference
Exhibit Number	Description	Form	Exhibit	Filing Date	Filed herewith
2.1	Agreement and Plan of Merger, dated as of July 12, 2015, among Remy International, Inc., BorgWarner Inc. and Band Merger Sub, Inc. The registrant agrees to furnish supplementally to the U.S. Securities and Exchange Commission a copy of any omitted schedule or exhibit upon the request of the SEC in accordance with Item 601(b)(2) of Regulation S-K.	8-K	2.1	7/13/2015
3.1	Certificate of Correction of Amended and Restated Certificate of Incorporation	10-Q	EX-3.1	5/6/2015
3.2	Restated Certificate of Incorporation	10-Q	EX-3.2	5/6/2015
3.3	Second Amended and Restated Bylaws, as currently in effect	8-K	EX-3.3	2/4/2015
*10.1	Employment Agreement, effective as of May 1, 2015, by and between Remy International, Inc. and Victor A. Polen	8-K	EX-10.1	5/1/2015
*10.1(b)	Amendment No. 1 to the Employment Agreement dated as of May 1, 2015 by and between Remy International, Inc. and Victor A. Polen effective as of July 12, 2015				X
*10.2	Employment Agreement, effective as of April 1, 2015, by and between Remy International, Inc. and David G. Krall	10-Q	EX-10.4	5/6/2015
*10.2(b)	Amendment No. 1 to the Employment Agreement dated as of April 1, 2015 by and between Remy International, Inc. and David G. Krall effective as of July 12, 2015				X
*10.3	Amendment No. 1 to the Employment Agreement dated as of February 20, 2015 by and between Remy International, Inc. and Albert E. VanDenBergh effective as of July 12, 2015				X
*10.4	Form of Transaction Continuity Award Letter				X
*10.5	Form of Indemnification Agreement	8-K	10.2	7/13/2015
*10.6	Remy International, Inc. Employee Stock Purchase Plan, as approved by stockholders on June 10, 2015	DEF 14A	Annex A	4/30/2015
*10.7	Remy International, Inc. Annual Incentive Bonus Plan, as approved by stockholders on June 10, 2015	DEF 14A	Annex B	4/30/2015
*10.8	Voting and Support Agreement, dated as of July 12, 2015, among H Partners Management, LLC, H Partners, LP, H Partners Capital, LLC, P H Partners Ltd., H Offshore Fund Ltd., Rehan Jaffer, BorgWarner Inc. and Remy International, Inc.	8-K	10.1	7/13/2015
31.1	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				X
31.2	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				X
32.1	Certification of the Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350				X
32.2	Certification of the Principal Financial Officer 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

* Indicates a management contract or compensatory plan or arrangement.

44

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: August 3, 2015	By: /s/ Albert E. VanDenBergh
	Albert E. VanDenBergh
	Senior Vice President and Chief Financial Officer
	(Principal Financial Officer)

45

EX-10.1

EXHIBIT 10.1(b)

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

This Amendment No. 1 (the “Amendment”) to the Employment Agreement dated as of May 1, 2015 by and between Remy International, Inc. and Victor A. Polen (the “Agreement”) is effective as of July 12, 2015 (the “Effective Date”). In consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:

1. Section 9(a)(iii) of the Agreement is deleted and the following is inserted in lieu thereof:

the Company shall pay the Employee, no later than the sixtieth (60^th) calendar day after the Date of Termination, a lump-sum payment equal to 200% of the sum of: (A) the Employee’s Annual Base Salary in effect immediately prior to the Date of Termination (disregarding any reduction in Annual Base Salary to which the Employee did not expressly consent in writing); and (B) the target Annual Bonus for the year of termination; and

2. A new Section 9(a)(vi) of the Agreement is added as follows:

the Employee shall be entitled to reimbursement of all reasonable expenses that are incurred by the Employee in relocating himself and his family and their possessions from the Indianapolis, Indiana area (including, without limitation, (i) moving expenses and broker’s commissions, closing and other transaction costs related to the sale of the Employee’s residence in the Indianapolis, Indiana area (but excluding any reimbursement for loss realized on the sale thereof) and (ii) broker’s commissions, closing and other transaction costs related to the purchase of a new residence (but excluding any reimbursement for the purchase of the residence itself)) at any time during the nine (9) month period following the Date of Termination, provided that the Employee must submit his reimbursement request, together with supporting documentation of expenses incurred, not later than twelve (12) months after the Date of Termination to receive the reimbursement.

IN WITNESS WHEREOF, the parties have executed this Amendment to be effective as of the Effective Date.

REMY INTERNATIONAL INC.
By:	/s/ John J. Pittas
Name:	John J. Pittas
Title:	President and Chief Executive Officer

EMPLOYEE
By:	/s/ Victor A. Polen
Name:	Victor A. Polen
Title:	Senior Vice President and Chief Operating Officer

EX-10.2

EXHIBIT 10.2(b)

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

This Amendment No. 1 (the “Amendment”) to the Employment Agreement dated as of April 1, 2015 by and between Remy International, Inc. and David G. Krall (the “Agreement”) is effective as of July 12, 2015 (the “Effective Date”). In consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:

1. Section 10(a)(iii) of the Agreement is deleted and the following is inserted in lieu thereof:

the Company shall pay the Employee, no later than the sixtieth (60^th) calendar day after the Date of Termination, a lump-sum payment equal to 200% of the sum of: (A) the Employee’s Annual Base Salary in effect immediately prior to the Date of Termination (disregarding any reduction in Annual Base Salary to which the Employee did not expressly consent in writing); and (B) the target Annual Bonus for the year of termination; and

2. A new Section 10 (a)(vi) of the Agreement is added as follows:

the Employee shall be entitled to reimbursement of all reasonable expenses that are incurred by the Employee in relocating himself and his family and their possessions from the Indianapolis, Indiana area (including, without limitation, (i) moving expenses and broker’s commissions, closing and other transaction costs related to the sale of the Employee’s residence in the Indianapolis, Indiana area (but excluding any reimbursement for loss realized on the sale thereof) and (ii) broker’s commissions, closing and other transaction costs related to the purchase of a new residence (but excluding any reimbursement for the purchase of the residence itself)) at any time during the nine (9) month period following the Date of Termination, provided that the Employee must submit his reimbursement request, together with supporting documentation of expenses incurred, not later than twelve (12) months after the Date of Termination to receive the reimbursement.

IN WITNESS WHEREOF, the parties have executed this Amendment to be effective as of the Effective Date.

REMY INTERNATIONAL INC.
By:	/s/ John J. Pittas
Name:	John J. Pittas
Title:	President and Chief Executive Officer

EMPLOYEE
By:	/s/ David G. Krall
Name:	David G. Krall
Title:	Senior Vice President and General Counsel

EX-10.3

EXHIBIT 10.3

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

This Amendment No. 1 (the “Amendment”) to the Employment Agreement dated as of February 20, 2015 by and between Remy International, Inc. and Albert E. VanDenBergh (the “Agreement”) is effective as of July 12, 2015 (the “Effective Date”). In consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:

1. Section 9(a)(iii) of the Agreement is deleted and the following is inserted in lieu thereof:

the Company shall pay the Employee, no later than the sixtieth (60^th) calendar day after the Date of Termination, a lump-sum payment equal to 200% of the sum of: (A) the Employee’s Annual Base Salary in effect immediately prior to the Date of Termination (disregarding any reduction in Annual Base Salary to which the Employee did not expressly consent in writing); and (B) the target Annual Bonus for the year of termination; and

2. A new Section 9(a)(vi) of the Agreement is added as follows:

the Employee shall be entitled to reimbursement of all reasonable expenses that are incurred by the Employee in relocating himself and his family and their possessions from the Indianapolis, Indiana area (including, without limitation, (i) moving expenses and broker’s commissions, closing and other transaction costs related to the sale of the Employee’s residence in the Indianapolis, Indiana area (but excluding any reimbursement for loss realized on the sale thereof) and (ii) broker’s commissions, closing and other transaction costs related to the purchase of a new residence (but excluding any reimbursement for the purchase of the residence itself)) at any time during the nine (9) month period following the Date of Termination, provided that the Employee must submit his reimbursement request, together with supporting documentation of expenses incurred, not later than twelve (12) months after the Date of Termination to receive the reimbursement.

IN WITNESS WHEREOF, the parties have executed this Amendment to be effective as of the Effective Date.

REMY INTERNATIONAL INC.
By:	/s/ John J. Pittas
Name:	John J. Pittas
Title:	President and Chief Executive Officer

EMPLOYEE
By:	/s/ Albert E. VanDenBergh
Name:	Albert E. VanDenBergh
Title:	Senior Vice President and Chief Financial Officer

EX-10.4

EXHIBIT 10.4

[Form of Transaction Continuity Award Letter]

This Attachment A is communicated exclusively to [Employee] for the express purpose of outlining the Transaction Continuity Award offered to key staff members of Remy International, Inc. (“Remy” or the “Company”).

The following is intended as review of employment terms and specific financial rewards, the terms and conditions for payment, your rights in the program and Remy’s expectations of you in recognition of your past accomplishments and anticipated contributions in the future.

1. Employment. The Company expects that your employment either with Remy or, in the event of the sale of the Company to a new owner, will continue through the Retention Period. You understand that your employment with the Company is “at-will,” meaning that is may be terminated by either you or the Company at any time, for any reason. Nothing contained in this Attachment A shall change your status as an at-will employee of the Company.

2. Transaction Continuity Award (the “Award”) and Retention Period. The Retention Period runs through June 30, 2016 at which time you shall be entitled to a cash payment of the Award in the amount of $[ ], less applicable tax withholding. The Award will be paid on the first payroll cycle in July, 2016.

a. You shall not be entitled to any portion of the Award should you voluntarily leave employment with Remy on or before June 30, 2016 without Good Reason (as defined below) or be Terminated for Cause (as defined below) on or before June 30, 2016.

b. Upon your death, or disability which prevents you from working, on or beforeJune 30, 2016, you or your estate shall be entitled to a pro-rata share of your Award based on the number of days elapsed from the date of this letter through the date of death or disability.

c. The Award shall not be treated as wages or salary for purposes of calculating 401 (k) matching benefits, and shall specifically be excluded from such calculations.

d. This Attachment A and the Award discussed herein is an exclusive benefit and, as such, is offered separately and distinctly from any and all other bonus plans.

3. Resignation. If, during the Retention Period, any of the following occur (“Good Reason”) you may voluntarily leave the employment of Remy. Your departure under these conditions shall be treated as an involuntary termination without cause, which will entitle you to immediate payment in full of the     Award as described above. As used herein, “Good Reason” shall mean Remy fails to make any payment due to you or required to be made on your behalf (under this Attachment A or otherwise) within two pay periods of when due.

4. Termination for Cause. Remy reserves the right to terminate your employment for cause at any time during the Retention Period. “Termination for Cause” means (A) commission by you of any crime involving an act or acts of dishonesty that constitute a felony and result or were intended to result directly or indirectly in gain to or personal enrichment of you or your engaging in misconduct that constitutes a serious felony, or (B) material willful neglect of job duties in the course or your employment (and for purposes of this Attachment A “neglect” shall be defined as not using efforts and devoting time to job duties consistent with your past practices in all material respects), which is not cured with ten (10) days of receipt of written notice from Remy. Termination for Cause will result in your ineligibility for any payments outlined herein.

5. Termination Without Cause. Remy reserves the right to terminate your employment without Cause at any time. You understand that our employment with the Company is “at-will,” meaning that it may be terminated by either party at any time for any reason. Nothing contained in this Attachment A shall change your status as an at-will employee of the Company. If you are terminated without Cause, in accordance with this paragraph, you will receive all retention monies outlined below payable in cash immediately upon termination.

6. Benefits. You will retain all rights under any employee benefit plan or program, including but not limited to (A) the Remy Salaried Plan; (B) the Remy Salaried 401 (k) Plan; (C) the Remy Medical Plan and the Remy Dental Plan; (D) any Company provided insurance policies; (E) the Remy Salaried Employee Severance Pay Plan; (F) rights under this Attachment A.

REMY INTERNATIONAL INC.
By:
Name:	John J. Pittas
Title:	President and Chief Executive Officer

EMPLOYEE

By:

Name:

Title:

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 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: August 3, 2015

/s/ John J. Pittas

John J. Pittas

President and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Albert E. VanDenBergh, 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: August 3, 2015

/s/ Albert E. VanDenBergh

Albert E. VanDenBergh

Senior Vice President and Chief Financial Officer

(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF THE PRINCIPAL 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 June 30, 2015 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: August 3, 2015

/s/ John J. Pittas

John J. Pittas

President and Chief Executive Officer

(Principal Executive Officer)

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF THE PRINCIPAL 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 June 30, 2015 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 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 her signature below.

Date: August 3, 2015

/s/ Albert E. VanDenBergh

Albert E. VanDenBergh

Senior Vice President and Chief Financial Officer

(Principal Financial Officer)

XML

Stock-based compensation (Tables)

6 Months Ended

Jun. 30, 2015

Share-based Compensation [Abstract]

Allocated Share-based Compensation Expense

Noncash compensation expense related to all types of awards was recognized for the three and six months ended June 30, 2015 and 2014 as follows:

	Three months ended June 30,				Six months ended June 30,
(In thousands)	2015		2014		2015		2014
Stock-based compensation expense	$	1,009	$	1,342	$	2,325	$	2,561

XML

Other noncurrent assets (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Other noncurrent assets [Abstract]
Noncurrent deferred tax assets	$ 12,159,000	$ 12,028,000
Noncurrent core return rights	$ 21,453,000	$ 38,940,000

XML

Financial instruments Balance Sheet Locations (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Designated as Hedging Instrument
Derivatives, Fair Value
Total derivative assets	$ 480	$ 869
Total derivative liabilities	14,537	12,578
Designated as Hedging Instrument | Commodity Contract
Derivatives, Fair Value
Prepaid expenses and other current assets	0	0
Other noncurrent assets	56	0
Other current liabilities and accrued expenses	4,925	3,515
Other noncurrent liabilities	448	573
Designated as Hedging Instrument | Foreign Exchange Contract
Derivatives, Fair Value
Prepaid expenses and other current assets	424	869
Other noncurrent assets	0	0
Other current liabilities and accrued expenses	7,749	7,316
Other noncurrent liabilities	552	892
Designated as Hedging Instrument | Interest Rate Swap
Derivatives, Fair Value
Other noncurrent assets	0	0
Other noncurrent liabilities	863	282
Not Designated as Hedging Instrument
Derivatives, Fair Value
Total derivative assets	0	0
Total derivative liabilities	3,251	2,566
Not Designated as Hedging Instrument | Interest Rate Swap
Derivatives, Fair Value
Other noncurrent assets	0	0
Other noncurrent liabilities	$ 3,251	$ 2,566

XML

Income taxes (Details) - Korea Advance Pricing Agreement [Member]	6 Months Ended
	Jun. 30, 2015 USD ($)
Income Tax Examination [Line Items]
Advance Pricing Agreement Potential Tax Expense Upon Final Agreement Between Tax Authorities	$ 20,000,000
Advance Pricing Agreement Potential Cash Outflow Upon FInal Agreement Between Tax Authorities	$ 44,000,000

XML

Other current liabilities and accrued expenses Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Other current liabilities and accrued expenses [Abstract]
Accrued warranty	$ 25,805	$ 22,583
Accrued wages and benefits	16,486	18,784
Current portion of customer obligations	1,576	2,234
Rebates, stocklifts, discounts and returns	16,092	20,282
Current deferred revenue	796	865
Other	52,852	63,761
Other current liabilities and accrued expenses	$ 113,607	$ 128,509

XML

Financial instruments Interest Rate Risk (Details) - Interest Rate Swap - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
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	(863,000)	$ (282,000)
Cash flow hedge gain/loss to be reclassified within twelve months	$ 0

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Other current liabilities and accrued expenses (Tables)

6 Months Ended

Jun. 30, 2015

Other current liabilities and accrued expenses [Abstract]

Schedule of Accrued Liabilities

Other current liabilities and accrued expenses consisted of the following:

	June 30,		December 31,
(In thousands)	2015		2014
Accrued warranty	$	25,805	$	22,583
Accrued wages and benefits	16,486		18,784
Current portion of customer obligations	1,576		2,234
Rebates, stocklifts, discounts and returns	16,092		20,282
Current deferred revenue	796		865
Other	52,852		63,761
	$	113,607	$	128,509

Schedule of Product Warranty Liability

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

	Three months ended June 30,						Six months ended June 30,
(In thousands)	2015			2014			2015			2014
Balance at beginning of period	$	27,711		$	32,489		$	26,012		$	30,781
Provision for warranty	11,328			9,047			21,892			21,218
Payments and charges against the accrual	(9,748		)	(11,709		)	(18,973		)	(23,535		)
Increased warranty accruals due to business acquisitions (Note 20)	—			—			360			1,363
Balance at end of period	$	29,291		$	29,827		$	29,291		$	29,827

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Business segment and geographical information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information
Net sales	$ 271,997	$ 302,910	$ 575,408	$ 608,915
United States
Segment Reporting Information
Net sales	171,422	196,509	375,930	401,127
Europe
Segment Reporting Information
Net sales	18,107	22,788	37,870	45,863
Other Americas
Segment Reporting Information
Net sales	9,300	11,857	18,109	22,737
Asia Pacific
Segment Reporting Information
Net sales	$ 73,168	$ 71,756	$ 143,499	$ 139,188

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Other noncurrent liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Other Liabilities, Noncurrent [Abstract]
Noncurrent deferred revenue	$ 3,590	$ 3,967
Other	23,402	22,516
Other noncurrent liabilities	$ 26,992	$ 26,483

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Employee benefit plans (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Defined Benefit Plan Disclosure
Current year contributions			$ 1,695,000	$ 1,809,000
Pension benefits:
Defined Benefit Plan Disclosure
Service costs	$ 325,000	$ 289,000	650,000	565,000
Interest costs	762,000	755,000	1,524,000	1,507,000
Expected return on plan assets	(761,000)	(768,000)	(1,522,000)	(1,534,000)
Recognized net actuarial loss	53,000	(147,000)	106,000	(291,000)
Net periodic cost (benefit)	$ 379,000	$ 129,000	758,000	$ 247,000
United States
Defined Benefit Plan Disclosure
Total expected current year contributions			2,041,000
International
Defined Benefit Plan Disclosure
Total expected current year contributions			$ 2,004,000

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Business segment and geographical information

6 Months Ended

Jun. 30, 2015

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 June 30,				Six months ended June 30,
(In thousands)	2015		2014		2015		2014
Net sales to external customers:
United States	$	171,422	$	196,509	$	375,930	$	401,127
Europe	18,107		22,788		37,870		45,863
Other Americas	9,300		11,857		18,109		22,737
Asia	73,168		71,756		143,499		139,188
Total net sales	$	271,997	$	302,910	$	575,408	$	608,915

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Financial instruments Factoring Accounts Receivable (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Financial Instruments [Abstract]
Gain (Loss) on Sale of Accounts Receivable	$ (673)	$ (1,292)	$ (1,436)	$ (2,546)
Accounts receivable factored, gross	$ 175,055		$ 175,055		$ 229,696

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Description of the business (Details) - USD ($)	3 Months Ended
	Jun. 30, 2015	Jul. 12, 2015	Dec. 31, 2014
Statement
Shares held by majority stakeholder			16,342,508
Related Party Transaction, Amounts of Transaction	$ 1,400,000
BorgWarnerAcquisition [Member] | Subsequent Event
Statement
Business Acquisition, Share Price		$ 29.50
BorgWarnerAcquisition [Member] | Maximum | Subsequent Event
Statement
Merger Termination Fee		$ 28,313,000
BorgWarnerAcquisition [Member] | Minimum | Subsequent Event
Statement
Merger Termination Fee		$ 14,156,000

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Acquisition (Details) - Jun. 30, 2015 - Maval Acquisition [Member] - USD ($)	Total	Total
Business Acquisition
Business Combination, Consideration Transferred		$ 22,000,000
Payments to Acquire Businesses, Gross		18,700,000
Escrow Deposit	$ 3,300,000	3,300,000
Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	8,011,000	8,011,000
Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	14,065,000	14,065,000
Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	25,000	25,000
Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	1,764,000	1,764,000
Recognized Identifiable Assets Acquired and Liabilities Assumed, Goodwill	3,905,000	3,905,000
Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	3,810,000	3,810,000
Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	22,000	22,000
Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	31,602,000	31,602,000
Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	6,674,000	6,674,000
Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	2,928,000	2,928,000
Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	9,602,000	9,602,000
Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	22,000,000	22,000,000
Finished Goods Inventory Step-Up		587,000
Amortization of Intangible Assets	$ 108,000	$ 144,000

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

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

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 andsix months ended June 30, 2015 (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, 2014	$	1,590		$	(4,662	)	$	(1,955	)	$	(172	)	$	(4,184	)	$	(9,383	)
Other comprehensive income (loss) before reclassifications	(7,993		)	(82		)	(1,698		)	(429		)	(105		)	(10,307		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			899			778			—			25			1,702
Balances at March 31, 2015	$	(6,403	)	$	(3,845	)	$	(2,875	)	$	(601	)	$	(4,264	)	$	(17,988	)
Other comprehensive income (loss) before reclassifications	(910		)	(2,295		)	(1,096		)	76			(110		)	(4,335		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			1,134			790			—			25			1,949
Balances at June 30, 2015	$	(7,313	)	$	(5,006	)	$	(3,181	)	$	(525	)	$	(4,349	)	$	(20,374	)

The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three and six months ended June 30, 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	$	9,441	$	2,753		$	(1,776	)	$	886		$	7,866		$	19,170
Other comprehensive income (loss) before reclassifications	797		(886		)	(2,264		)	(281		)	(463		)	(3,097		)
Amounts reclassified from accumulated other comprehensive income (loss)	—		(636		)	672			—			100			136
Balances at March 31, 2014	$	10,238	$	1,231		$	(3,368	)	$	605		$	7,503		$	16,209
Other comprehensive income (loss) before reclassifications	5,644		3,298			1,101			(410		)	(241		)	9,392
Amounts reclassified from accumulated other comprehensive income (loss)	—		(1,162		)	755			—			102			(305		)
Balances at June 30, 2014	$	15,882	$	3,367		$	(1,512	)	$	195		$	7,364		$	25,296

Disclosure of Reclassification Amount

Details about Accumulated Other Comprehensive Income (Loss) Components	Three months ended June 30,						Affected Line Item in the Statement Where Net Income is Presented
	2015			2014
Gains (losses) on cash flow hedges:
Foreign currency contracts	$	(1,483	)	$	1,512		Cost of goods sold
Commodity contracts	(1,296		)	(1,240		)	Cost of goods sold
	(2,779		)	272			Total before tax
	855			135			Tax benefit (expense)
	$	(1,924	)	$	407		Net of tax
Amortization of employee benefit plan costs:
Prior service costs	$	—		$	—		Selling, general and administrative expenses
Net actuarial loss	(29		)	(167		)	Selling, general and administrative expenses
	(29		)	(167		)	Total before tax
	4			65			Tax benefit (expense)
	$	(25	)	$	(102	)	Net of tax
Total reclassifications for the period	$	(1,949	)	$	305		Net of tax

Details about Accumulated Other Comprehensive Income (Loss) Components	Six months ended June 30,						Affected Line Item in the Statement Where Net Income is Presented
	2015			2014
Gains (losses) on cash flow hedges:
Foreign currency contracts	$	(2,684	)	$	2,409		Cost of goods sold
Commodity contracts	(2,574		)	(2,339		)	Cost of goods sold
	(5,258		)	70			Total before tax
	1,657			301			Tax benefit (expense)
	$	(3,601	)	$	371		Net of tax
Amortization of employee benefit plan costs:
Prior service costs	$	—		$	—		Selling, general and administrative expenses
Net actuarial loss	(58		)	(331		)	Selling, general and administrative expenses
	(58		)	(331		)	Total before tax
	8			129			Tax benefit (expense)
	$	(50	)	$	(202	)	Net of tax
Total reclassifications for the period	$	(3,651	)	$	169		Net of tax

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Property, plant and equipment (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense of property, plant, and equipment	$ 12,721,000	$ 13,384,000

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Stockholders' equity (Details) - USD ($)	3 Months Ended				6 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
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		31,811,724			31,811,724		32,201,086
Preferred Stock, shares outstanding		0			0
Common Stock, Voting Rights					1
Shares Paid for Tax Withholding for Share Based Compensation					47,772	114,291
Payments Related to Tax Withholding for Share-based Compensation					$ 1,130,000	$ 2,505,000
Payments for Repurchase of Common Stock					$ 11,062,000	$ 2,505,000
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited					117,457	74,892
Dividends declared per common share		$ 0.11	$ 0.10	$ 0.10	$ 0.21	$ 0.20
Payments of Ordinary Dividends, Common Stock					$ 6,800,000	$ 6,548,000
Dividends Payable		$ 114,000			114,000
Subsequent Event
Dividends declared per common share	$ 0.11
Feb. 2015 Share Repurchase Program [Member]
Payments for Repurchase of Common Stock		9,932,000
Stock Repurchase Program, Authorized Amount		$ 100,000,000			$ 100,000,000
Stock Repurchase Program Expiration Date					Feb. 28, 2018
Treasury Stock, shares acquired		447,725
Treasury Stock Acquired, Average Cost Per Share		$ 22.18
Stock Repurchase Program, Remaining Authorized Repurchase Amount		$ 90,068,000			$ 90,068,000

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Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Long-term Debt	$ 335,773	$ 293,637
Capital leases	7,907	8,167
Less current maturities	(3,489)	(3,509)
Long-term Debt, Excluding Current Maturities	340,191	298,295
Asset-Based Revolving Credit Facility, First Amendment
Long-term Line of Credit	43,600	0
Amended and Restated Term B Loan Facility
Term B Loan, as Amended and Restated - Maturity date of March 5, 2020	$ 292,173	$ 293,637

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Financial instruments Commodity Price Risk (Details) - Commodity Contract $ in Thousands	6 Months Ended
	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Derivative, number of instruments held	34	37
Investment contract weight	8,966	8,196
Maximum Term of Credit Risk Derivatives	18 months
Accumulated unrealized gains/losses recorded in accumulated other comprehensive income, before tax	$ (5,259)	$ (4,092)
Cash flow hedge gain/loss to be reclassified within twelve months	$ (4,875)

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Summary of significant accounting policies

6 Months Ended

Jun. 30, 2015

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, 2014.

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.

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 $38,917,000 and $38,541,000 as of June 30, 2015 and December 31, 2014, 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 and is recorded as a component of cost of goods sold. 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 and assumed the additional 272,851 shares issued in respect of the contribution of Imaging were outstanding for the entire period under common control, or August 2012 through December 31, 2014. 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 June 30, 2015, in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 65,390 shares were anti-dilutive and excluded from the diluted calculation. For the three months ended June 30, 2014, in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 78,525 shares were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 555,428 and 273,723 were excluded from the calculation of dilutive earnings per share for the three months ended June 30, 2015 and 2014, respectively.

For the six months ended June 30, 2015 and 2014, in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 83,670 and 124,502 shares, respectively, were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 462,371 and 299,612 were excluded from the calculation of dilutive earnings per share for the six months ended June 30, 2015 and 2014, respectively.

New accounting pronouncements

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory to simplify the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first out or the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

In April 2015, the FASB issued ASU 2015-03, Interest- Imputation of Interest (Simplifying the Presentation of Debt Issuance Costs). This update changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the debt issuance costs is reported as interest expense. This update is effective for annual and interim periods beginning after December 15, 2015, which will require us to adopt these provisions in the first quarter of 2016. Early application is permitted for financial statements that have not been previously issued. Entities would be permitted to apply this update retrospectively to all prior periods for which a balance sheet is presented. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software license. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for annual and interim periods beginning after December 15, 2015. Early application is permitted. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update was originally effective for annual and interim periods beginning after December 15, 2016, however, in July 2015 the FASB voted to defer the effective date to annual and interim periods beginning after December 15, 2017. Early application is permitted but not before the original effective date. This update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

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Debt First Amendment Asset-Based Revolving Credit Facility (Details) - Jun. 30, 2015 - Asset-Based Revolving Credit Facility, First Amendment - USD ($)	Total
Debt Instrument
Line of credit facility, maximum borrowing capacity	$ 95,000,000
Line of credit facility, additional borrowing capacity	20,000,000
Line of credit facility, fair value of amount outstanding	43,600,000
Letters of credit outstanding, amount	2,310,000
Line of credit facility, current borrowing capacity	$ 46,146,000
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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Summary of significant accounting policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Notes, Loans and Financing Receivable, Net, Current	$ 38,917		$ 38,917		$ 38,541
Weighted Average Number Diluted Shares Outstanding Adjustment		78,525	83,670	124,502
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	555,428	273,723	462,371	299,612
Imaging [Member]
Weighted Average Number of Shares Outstanding, Basic and Diluted			272,851
Antidilutive Securities, Name [Domain]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	65,390

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Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2015

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 June 30, 2015 and December 31, 2014, are set forth in the table below:

	As of June 30, 2015							As of December 31, 2014
(In thousands)	Asset/ (liability)			Level 2			Valuation technique	Asset/ (liability)			Level 2			Valuation technique
Interest rate swap contracts	$	(4,114	)	$	(4,114	)	C	$	(2,848	)	$	(2,848	)	C
Foreign exchange contracts	(7,877		)	(7,877		)	C	(7,339		)	(7,339		)	C
Commodity contracts	(5,317		)	(5,317		)	C	(4,088		)	(4,088		)	C

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Summary of significant accounting policies (Policies)

6 Months Ended

Jun. 30, 2015

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.

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 $38,917,000 and $38,541,000 as of June 30, 2015 and December 31, 2014, 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 and is recorded as a component of cost of goods sold. 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 and assumed the additional 272,851 shares issued in respect of the contribution of Imaging were outstanding for the entire period under common control, or August 2012 through December 31, 2014. 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 June 30, 2015, in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 65,390 shares were anti-dilutive and excluded from the diluted calculation. For the three months ended June 30, 2014, in applying the treasury stock method, equivalent shares of unvested restricted stock and stock options of 78,525 shares were included in the weighted average shares outstanding in the diluted calculation. Anti-dilutive stock options of 555,428 and 273,723 were excluded from the calculation of dilutive earnings per share for the three months ended June 30, 2015 and 2014, respectively.

Recently Adopted Accounting Standards, Policy

New accounting pronouncements

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory to simplify the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first out or the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

In April 2015, the FASB issued ASU 2015-03, Interest- Imputation of Interest (Simplifying the Presentation of Debt Issuance Costs). This update changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the debt issuance costs is reported as interest expense. This update is effective for annual and interim periods beginning after December 15, 2015, which will require us to adopt these provisions in the first quarter of 2016. Early application is permitted for financial statements that have not been previously issued. Entities would be permitted to apply this update retrospectively to all prior periods for which a balance sheet is presented. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software license. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for annual and interim periods beginning after December 15, 2015. Early application is permitted. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update was originally effective for annual and interim periods beginning after December 15, 2016, however, in July 2015 the FASB voted to defer the effective date to annual and interim periods beginning after December 15, 2017. Early application is permitted but not before the original effective date. This update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

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 June 30, 2015, 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 U.S. 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. 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, including those relating to commercial transactions, product liability, safety, health, taxes, environmental and other matters. We believe that none of such actions, other than those discussed below, depart from customary litigation arising in the ordinary course of business. 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 has been recorded in our accompanying consolidated financial statements. For legal proceedings where it has been determined that a loss is either probable but the amount or range of loss is not reasonably estimable, or reasonably possible, we provide disclosure with respect to the matter.

Actual losses may materially differ from the amounts recorded and the ultimate outcomes of our pending cases are generally not yet determinable. At present we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition. However, litigation matters are inherently uncertain, and we cannot currently quantify our ultimate liability for unresolved litigation matters. As a result, it is possible that such liability could materially affect our consolidated financial position or our results of operations or cash flows for an individual reporting period.

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Other current liabilities and accrued expenses Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Other current liabilities and accrued expenses [Abstract]
Balance at beginning of period	$ 27,711	$ 32,489	$ 26,012	$ 30,781
Provision for warranty	11,328	9,047	21,892	21,218
Payments and charges against the accrual	(9,748)	(11,709)	(18,973)	(23,535)
Increased warranty accruals due to business acquisitions (Note 20)	0	0	360	1,363
Balance at end of period	$ 29,291	$ 29,827	$ 29,291	$ 29,827

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Fair value measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Interest Rate Swap
Assets/(Liabilities)
Derivative Assets (Liabilities), at Fair Value, Net	$ (4,114)	$ (2,848)
Interest Rate Swap | Fair Value, Inputs, Level 2
Assets/(Liabilities)
Derivative Assets (Liabilities), at Fair Value, Net	(4,114)	(2,848)
Foreign Exchange Contract
Assets/(Liabilities)
Derivative Assets (Liabilities), at Fair Value, Net	(7,877)	(7,339)
Foreign Exchange Contract | Fair Value, Inputs, Level 2
Assets/(Liabilities)
Derivative Assets (Liabilities), at Fair Value, Net	(7,877)	(7,339)
Commodity Contract
Assets/(Liabilities)
Derivative Assets (Liabilities), at Fair Value, Net	(5,317)	(4,088)
Commodity Contract | Fair Value, Inputs, Level 2
Assets/(Liabilities)
Derivative Assets (Liabilities), at Fair Value, Net	$ (5,317)	$ (4,088)

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Financial instruments (Tables)

6 Months Ended

Jun. 30, 2015

Financial Instruments [Abstract]

Schedule of Derivative Instruments

As of June 30, 2015 and December 31, 2014, we had the following outstanding foreign currency contracts that were entered into to hedge forecasted purchases and revenues, respectively:

(In thousands)	Currency denomination
	June 30,		December 31,
Foreign currency contract	2015		2014
South Korean Won	$	66,720	$	82,907
Mexican Peso	$	56,271	$	69,625
Brazilian Real	$	2,526	$	12,318
Hungarian Forint	€	13,785	€	12,646
Great Britain Pound	£	—	£	300

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	June 30, 2015		December 31, 2014		Balance sheet location	June 30, 2015		December 31, 2014
Derivatives designated as hedging instruments:
Commodity contracts	Prepaid expenses and other current assets	$	—	$	—	Other current liabilities and accrued expenses	$	4,925	$	3,515
Commodity contracts	Other noncurrent assets	56		—		Other noncurrent liabilities	448		573
Foreign currency contracts	Prepaid expenses and other current assets	424		869		Other current liabilities and accrued expenses	7,749		7,316
Foreign currency contracts	Other noncurrent assets	—		—		Other noncurrent liabilities	552		892
Interest rate swap contracts	Other noncurrent assets	—		—		Other noncurrent liabilities	863		282
Total derivatives designated as hedging instruments		$	480	$	869		$	14,537	$	12,578
Derivatives not designated as hedging instruments:
Interest rate swap contracts	Other noncurrent assets	$	—	$	—	Other noncurrent liabilities	$	3,251	$	2,566
Total derivatives not designated as hedging instruments		$	—	$	—		$	3,251	$	2,566

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 six months ended June 30, 2015 (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	$	(3,699	)	Cost of goods sold	$	(2,532	)	Cost of goods sold	$	(42	)
Foreign currency contracts	(2,913		)	Cost of goods sold	(2,684		)	Cost of goods sold	—
Interest rate swap contracts	(580		)	Interest expense–net	—			Interest expense–net	—
	$	(7,192	)		$	(5,216	)		$	(42	)

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	$	(685	)

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the six months ended June 30, 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	$	(1,777	)	Cost of goods sold	$	(2,324	)	Cost of goods sold	$	(15	)
Foreign currency contracts	2,784			Cost of goods sold	2,409			Cost of goods sold	—
Interest rate swap contracts	(1,134		)	Interest expense–net	—			Interest expense–net	—
	$	(127	)		$	85			$	(15	)

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	$	(1,333	)

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended June 30, 2015 (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	$	(1,776	)	Cost of goods sold	$	(1,273	)	Cost of goods sold	$	(23	)
Foreign currency contracts	(2,946		)	Cost of goods sold	(1,483		)	Cost of goods sold	—
Interest rate swap contracts	124			Interest expense–net	—			Interest expense–net	—
	$	(4,598	)		$	(2,756	)		$	(23	)

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	$	105

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended June 30, 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	$	1,784		Cost of goods sold	$	(1,262	)	Cost of goods sold	$	22
Foreign currency contracts	3,909			Cost of goods sold	1,512			Cost of goods sold	—
Interest rate swap contracts	(672		)	Interest expense–net	—			Interest expense–net	—
	$	5,021			$	250			$	22

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	$	(656	)

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Inventories (Tables)

6 Months Ended

Jun. 30, 2015

Inventory [Abstract]

Schedule of Inventory, Current

Net inventories consisted of the following:

	June 30,		December 31,
(In thousands)	2015		2014
Raw materials	$	58,041	$	46,049
Core inventory	36,845		36,034
Work-in-process	9,363		7,827
Finished goods	87,528		74,233
	$	191,777	$	164,143

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Description of the business

6 Months Ended

Jun. 30, 2015

Description of the business [Abstract]

Description of the business

1. Description of the business

Business

Remy International, Inc. (together with its subsidiaries are collectively referred to as “we”, “our”, “us”, "Remy", or the “Company”) is a leading global vehicular parts designer, manufacturer, remanufacturer, marketer and distributor of aftermarket and original equipment electrical components for automobiles, light trucks, heavy-duty trucks and other vehicles. We sell our products worldwide primarily under the "Delco Remy", "Remy", "World Wide Automotive", "USA Industries", and "Maval" 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, especially for commercial vehicle applications.

BorgWarner Transaction

On July 12, 2015, we entered into an Agreement and Plan of Merger ("Merger Agreement") with BorgWarner Inc. ("BorgWarner") and Band Merger Sub, Inc., a wholly owned subsidiary of BorgWarner (“Merger Sub”) pursuant to which it is expected that we will merge with and into Merger Sub, with the Company surviving the merger as a wholly-owned subsidiary of BorgWarner (the "BorgWarner Transaction"). The Merger Agreement provides that at the effective time of the merger, if it occurs, each of the outstanding shares of Remy common stock (other than certain shares owned by BorgWarner, Merger Sub, Remy or any subsidiary of BorgWarner, Merger Sub or Remy, and shares that are owned by Remy stockholders who have perfected and not withdrawn a demand for appraisal rights pursuant to Delaware law) will be cancelled and converted into $29.50 in cash, without interest.

The consummation of the BorgWarner Transaction is subject to the satisfaction or waiver of specified closing conditions, including (i) the approval of the Merger Agreement by stockholders representing a majority of our outstanding shares of common stock, (ii) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, (iii) the making or obtaining of any filings, authorizations, consents or approvals regarding the Merger Agreement required pursuant to Antitrust Laws (as defined in the Merger Agreement) in Austria, Germany, China, Korea and Mexico and the termination or expiration of any applicable waiting period thereunder and (iv) other customary closing conditions, including (a) the accuracy of each party’s representations and warranties (subject to customary materiality qualifiers), (b) each party’s compliance with its agreements and covenants contained in the Merger Agreement and (c) the absence of any law, ordinance, rule, regulation, order, judgment or decree being in effect that restrains or enjoins, or otherwise prohibits or makes illegal, the consummation of the BorgWarner Transaction.

The Merger Agreement may be terminated by us or BorgWarner under certain circumstances. In some of those circumstances, we may be required to pay BorgWarner a termination fee of $28,313,000 (or in certain limited circumstances, a lower termination fee of $14,156,000) in connection with the termination of the Merger Agreement. Assuming the timely satisfaction of closing conditions, the BorgWarner Transaction is expected to close during the fourth quarter of 2015.

Spin-off and Merger Transactions

On August 14, 2012, Fidelity National Special Opportunities, Inc., (now known as Fidelity National Financial Ventures, LLC., or "FNFV"), a wholly-owned subsidiary of Fidelity National Financial, Inc. ("FNF"), a leading provider of title insurance, mortgage services and restaurant and diversified services, increased its ownership position in Remy Holdings, Inc. ("Old Remy") (formerly known as Remy International, Inc.), above 50% (the "Acquisition"). As a result, FNF began consolidating Old Remy's financial results in the third quarter of 2012.

On September 7, 2014, we entered into agreements for a transaction (the "Spin-off Transaction") with FNF. On December 31, 2014, the Spin-off Transaction was completed pursuant to the merger agreement, which was approved by Old Remy's stockholders at a special meeting of stockholders held on the same date. The Spin-off Transaction in effect resulted in the indirect distribution of the shares of common stock of Old Remy that were held by FNF to the holders of its FNFV tracking stock.

In the Spin-off Transaction, FNFV contributed all of the 16,342,508 shares of Old Remy's common stock that FNFV owned and a small subsidiary, Fidelity National Technology Imaging ("Imaging"), into a newly-formed subsidiary ("New Remy"). New Remy was then distributed to FNFV shareholders. Immediately following the distribution of New Remy to FNFV shareholders, New Remy and Old Remy each engaged in stock-for-stock mergers with subsidiaries of a new publicly-traded holding company, New Remy Holdco Corp. ("New Holdco"). The Spin-off Transaction in effect resulted in New Holdco becoming the new public parent of Old Remy. Effective upon the closing of the Spin-off Transaction on December 31, 2014, New Holdco changed its name to "Remy International, Inc." and its shares were listed, and on January 2, 2015 began trading, on NASDAQ under the trading symbol "REMY", which was the same trading symbol used by Old Remy. Old Remy changed its name from "Remy International, Inc." to "Remy Holdings, Inc."

During the six months ended June 30, 2015, Imaging received $1,400,000 from FNF as part of a working capital adjustment in accordance with the Merger Agreement, which was previously included in other receivables at December 31, 2014.

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Goodwill and other intangible assets (Tables)

6 Months Ended

Jun. 30, 2015

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 June 30, 2015						As of December 31, 2014
(In thousands)	Carrying value		Accumulated amortization		Net		Carrying value		Accumulated amortization		Net
Definite-life intangibles:
Intellectual property	$	28,628	$	3,905	$	24,723	$	27,833	$	2,980	$	24,853
Customer relationships	210,270		61,508		148,762		206,960		50,558		156,402
Customer contract	81,516		61,901		19,615		93,642		63,285		30,357
Trade names	500		33		467		—		—		—
Lease intangible	420		320		100		420		219		201
Total	321,334		127,667		193,667		328,855		117,042		211,813
Indefinite-life intangibles:
Trade names	86,210		—		86,210		86,210		—		86,210
Intangible assets, net	$	407,544	$	127,667	$	279,877	$	415,065	$	117,042	$	298,023
Goodwill	$	263,491	$	—	$	263,491	$	259,586	$	—	$	259,586

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Business segment and geographical information (Tables)

6 Months Ended

Jun. 30, 2015

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 June 30,				Six months ended June 30,
(In thousands)	2015		2014		2015		2014
Net sales to external customers:
United States	$	171,422	$	196,509	$	375,930	$	401,127
Europe	18,107		22,788		37,870		45,863
Other Americas	9,300		11,857		18,109		22,737
Asia	73,168		71,756		143,499		139,188
Total net sales	$	271,997	$	302,910	$	575,408	$	608,915

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Goodwill and other intangible assets (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Dec. 31, 2014
Intangible Assets and Goodwill
Intangible Assets, Gross (Excluding Goodwill)	$ 407,544,000		$ 407,544,000	$ 415,065,000
Intangible Assets, Accumulated Amortization	127,667,000		127,667,000	117,042,000
Intangible Assets, Net (Excluding Goodwill)	279,877,000		279,877,000	298,023,000
Goodwill, Gross	263,491,000		263,491,000	259,586,000
Goodwill, Amortization	0		0	0
Goodwill, Net	263,491,000		$ 263,491,000	259,586,000
Intellectual Property
Intangible Assets and Goodwill
Finite-lived Intangible Assets Acquired		$ 13,930,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			15 years
Finite-Lived Intangible Assets, Period Increase (Decrease)	795,000
Customer Contracts
Intangible Assets and Goodwill
Finite-lived Intangible Assets Acquired			$ 726,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			4 years 3 months
Maval Acquisition [Member]
Intangible Assets and Goodwill
Business Acquisition, Goodwill, Expected Tax Deductible Amount	3,905,000		$ 3,905,000
Maval Acquisition [Member] | Customer Relationships
Intangible Assets and Goodwill
Finite-lived Intangible Assets Acquired	$ 3,310,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years
Maval Acquisition [Member] | Trade Names
Intangible Assets and Goodwill
Finite-lived Intangible Assets Acquired	$ 500,000
Finite-Lived Intangible Asset, Useful Life	5 years
Definite-Life Intangible
Intangible Assets and Goodwill
Finite-Lived Intangible Assets, Gross	$ 321,334,000		321,334,000	328,855,000
Finite-Lived Intangible Assets, Accumulated Amortization	127,667,000		127,667,000	117,042,000
Finite-Lived Intangible Assets, Net	193,667,000		193,667,000	211,813,000
Definite-Life Intangible | Intellectual Property
Intangible Assets and Goodwill
Finite-Lived Intangible Assets, Gross	28,628,000		28,628,000	27,833,000
Finite-Lived Intangible Assets, Accumulated Amortization	3,905,000		3,905,000	2,980,000
Finite-Lived Intangible Assets, Net	24,723,000		24,723,000	24,853,000
Definite-Life Intangible | Customer Relationships
Intangible Assets and Goodwill
Finite-Lived Intangible Assets, Gross	210,270,000		210,270,000	206,960,000
Finite-Lived Intangible Assets, Accumulated Amortization	61,508,000		61,508,000	50,558,000
Finite-Lived Intangible Assets, Net	148,762,000		148,762,000	156,402,000
Definite-Life Intangible | Customer Contracts
Intangible Assets and Goodwill
Finite-Lived Intangible Assets, Gross	81,516,000		81,516,000	93,642,000
Finite-Lived Intangible Assets, Accumulated Amortization	61,901,000		61,901,000	63,285,000
Finite-Lived Intangible Assets, Net	19,615,000		19,615,000	30,357,000
Definite-Life Intangible | Trade Names
Intangible Assets and Goodwill
Finite-Lived Intangible Assets, Gross	500,000		500,000	0
Finite-Lived Intangible Assets, Accumulated Amortization	33,000		33,000	0
Finite-Lived Intangible Assets, Net	467,000		467,000	0
Definite-Life Intangible | Lease Agreements
Intangible Assets and Goodwill
Finite-Lived Intangible Assets, Gross	420,000		420,000	420,000
Finite-Lived Intangible Assets, Accumulated Amortization	320,000		320,000	219,000
Finite-Lived Intangible Assets, Net	100,000		100,000	201,000
Indefinite-Life Intagible [Member] | Trade Names
Intangible Assets and Goodwill
Indefinite-Lived Intangible Assets, Gross	86,210,000		86,210,000	86,210,000
Indefinite-Lived Intangible Assets, Accumulated Amortization	0		0	0
Indefinite-Lived Intangible Assets, Net	$ 86,210,000		$ 86,210,000	$ 86,210,000

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Stock-based compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Feb. 14, 2013
Share-based Compensation Arrangement by Share-based Payment Award
Allocated share-based compensation expense	$ 1,009		$ 1,342	$ 2,325	$ 2,561
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	2,790,000			2,790,000
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value				$ 4.78
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate				1.41%
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected dividend rate				1.78%
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate				27.94%
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term				4 years 6 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period				7,036	2,397
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	30,558	150,280
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value	$ 21.76	$ 23.01
Share-based compensation arrangement by share-based payment award, options, grants in period, gross	64,980	305,753
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average exercise price	$ 21.76	$ 23.01		$ 21.76
Award allocation percentage, time based, shares	50.00%			50.00%
Award allocation percentage, performance based, shares	50.00%			50.00%
Annual vesting percentage, time based, shares	33.00%			33.00%
Annual vesting percentage, performance based, shares	33.00%			33.00%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	7 years			7 years
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				22,815
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value				$ 23.01
Share-based compensation arrangement by share-based payment award, options, grants in period, gross				46,418
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average exercise price	$ 23.01			$ 23.01
Annual vesting percentage, years one and two, shares				50.00%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period				7 years
Retention Restricted Stock Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value		$ 22.62
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted		15,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Annual vesting percentage, time based, shares		100.00%
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value		$ 23.01
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted		22,816
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		1 year
Annual vesting percentage, time based, shares		100.00%

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Consolidated balance sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 102,446	$ 84,885
Trade accounts receivable (less allowances of $1,973 and $1,519)	228,821	210,356
Other receivables	13,970	16,692
Inventories	191,777	164,143
Deferred income taxes	35,715	42,308
Prepaid expenses and other current assets	12,713	11,865
Total current assets	585,442	530,249
Property, plant and equipment	231,665	226,073
Less accumulated depreciation and amortization	(75,225)	(61,615)
Property, plant and equipment, net	156,440	164,458
Deferred financing costs, net of amortization	1,341	1,471
Goodwill	263,491	259,586
Intangibles, net	279,877	298,023
Other noncurrent assets	47,844	65,309
Total assets	1,334,435	1,319,096
Current liabilities:
Short-term debt	5,793	7,761
Current maturities of long-term debt	3,489	3,509
Accounts payable	183,797	177,333
Accrued interest	121	94
Accrued restructuring	420	331
Other current liabilities and accrued expenses	113,607	128,509
Total current liabilities	307,227	317,537
Long-term debt, net of current maturities	340,191	298,295
Postretirement benefits other than pensions	1,378	1,484
Accrued pension benefits	33,310	34,267
Deferred income taxes	49,683	54,783
Other noncurrent liabilities	26,992	26,483
Remy International, Inc. stockholders' equity:
Common stock, Par value of $0.0001; 31,811,724 shares outstanding at June 30, 2015, and 32,201,086 shares outstanding at December 31, 2014	3	3
Treasury stock, at cost; 634,064 treasury shares at June 30, 2015, and no treasury shares at December 31, 2014	(11,062)	0
Additional paid-in capital	598,115	595,627
Retained earnings	8,972	0
Accumulated other comprehensive loss	(20,374)	(9,383)
Total Remy International, Inc. stockholders' equity	575,654	586,247
Total liabilities and equity	$ 1,334,435	$ 1,319,096

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Financial instruments (Details) - Foreign Exchange Contract € in Thousands, £ in Thousands	6 Months Ended
	Jun. 30, 2015 USD ($)	Jun. 30, 2015 EUR (€)	Jun. 30, 2015 GBP (£)	Dec. 31, 2014 USD ($)	Dec. 31, 2014 EUR (€)	Dec. 31, 2014 GBP (£)
Derivative
Maximum Term of Credit Risk Derivatives	18 months
Accumulated unrealized gains/losses recorded in accumulated other comprehensive income, net of tax	$ (5,006,000)			$ (4,662,000)
Cash flow hedge gain/loss to be reclassified within twelve months	(5,002,000)
Korea (South), Won
Derivative
Notional amount of foreign currency derivatives	66,720,000			82,907,000
Mexico, Pesos
Derivative
Notional amount of foreign currency derivatives	56,271,000			69,625,000
Brazil, Brazil Real
Derivative
Notional amount of foreign currency derivatives	$ 2,526,000			$ 12,318,000
Hungary, Forint
Derivative
Notional amount of foreign currency derivatives | €		€ 13,785			€ 12,646
United Kingdom, Pounds
Derivative
Notional amount of foreign currency derivatives | £			£ 0			£ 300

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Consolidated statements of cash flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ 15,620	$ 9,974
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization	36,031	36,664
Stock-based compensation	2,325	2,561
Deferred income taxes	1,020	(5,192)
Accrued pension and postretirement benefits, net	(1,119)	(2,123)
Restructuring and other charges	444	393
Cash payments for restructuring charges	(355)	(1,266)
Other	1,602	263
Changes in operating assets and liabilities, net of restructuring charges:
Accounts receivable	(11,357)	(39,230)
Inventories	(16,936)	(13,998)
Accounts payable	4,865	19,939
Other current assets and liabilities, net	(19,913)	979
Other noncurrent assets and liabilities, net	16,105	(12,908)
Net cash provided by (used in) operating activities	28,332	(3,944)
Cash flows from investing activities:
Purchases of property, plant and equipment	(10,412)	(11,830)
Net proceeds on sale of assets	29	80
Net cash used in investing activities	(32,383)	(51,820)
Cash flows from financing activities:
Change in short-term debt	(1,904)	4,930
Proceeds from borrowings on Asset-Based Revolving Credit Facility	155,750	0
Payments made on Asset-Based Revolving Credit Facility	(112,150)	0
Payments made on long-term debt, including capital leases	(1,756)	(1,693)
Dividend payments on common stock	(6,800)	(6,548)
Purchase of treasury stock	(11,062)	(2,505)
Other	1,634	1,227
Net cash provided by (used in) financing activities	23,712	(4,589)
Effect of exchange rate changes on cash and cash equivalents	(2,100)	1,619
Net increase (decrease) in cash and cash equivalents	17,561	(58,734)
Cash and cash equivalents at beginning of period	84,885	114,884
Cash and cash equivalents at end of period	102,446	56,150
Supplemental disclosure information:
Income Taxes Paid, Net	6,004	9,251
Interest Paid	8,835	9,779
Accounts Payable
Noncash investing and financing activities:
Purchases of property, plant and equipment	1,808	2,816
Maval Acquisition [Member]
Cash flows from investing activities:
Acquisition of USA Industries, Inc., net of cash acquired of $109	(22,000)	0
USA Industries Acquisition [Member]
Cash flows from investing activities:
Acquisition of USA Industries, Inc., net of cash acquired of $109	$ 0	$ (40,070)

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Restructuring and other charges Restructuring Rollforward Table (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Restructuring Cost and Reserve
Restructuring and other charges	$ 371		$ 79		$ 444	$ 393
Payments for restructuring					(355)	(1,266)
Employee Severance
Restructuring Cost and Reserve
Restructuring reserve, beginning of period	220	$ 259	259	$ 981	259	981	$ 981
Restructuring and other charges	190	15	2	228
Payments for restructuring	(33)	(54)	(113)	(950)
Restructuring reserve, end of period	377	220	148	259	377	148	259
Business Exit Costs
Restructuring Cost and Reserve
Restructuring reserve, beginning of period	57	72	25	45	72	45	45
Restructuring and other charges	181	58	77	86
Payments for restructuring	(195)	(73)	(97)	(106)
Restructuring reserve, end of period	43	57	5	25	43	5	72
Total Restructuring
Restructuring Cost and Reserve
Restructuring reserve, beginning of period	277	331	284	1,026	331	1,026	1,026
Restructuring and other charges	371	73	79	314
Payments for restructuring	(228)	(127)	(210)	(1,056)
Restructuring reserve, end of period	$ 420	$ 277	$ 153	$ 284	$ 420	$ 153	$ 331

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Restructuring and other charges (Tables)

6 Months Ended

Jun. 30, 2015

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 and six month periods ended June 30, (in thousands):

2015	Termination benefits			Exit costs			Total
Accrual at December 31, 2014	$	259		$	72		$	331
Provision	15			58			73
Payments	(54		)	(73		)	(127		)
Accrued at March 31, 2015	$	220		$	57		$	277
Provision	190			181			371
Payments	(33		)	(195		)	(228		)
Accrual at June 30, 2015	$	377		$	43		$	420

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
Provision	2			77			79
Payments	(113		)	(97		)	(210		)
Accrual at June 30, 2014	$	148		$	5		$	153

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
			Six months ended June 30, 2015		Twelve months ended December 31, 2014		Twelve months ended December 31, 2013
2014 Activities
Severance	$	1,347	$	205	$	1,066	$	—	$	76
Exit costs	1,111		161		950		—		—
	$	2,458	$	366	$	2,016	$	—	$	76
2013 Activities
Severance	$	1,976	$	—	$	220	$	1,756	$	—
Exit costs	696		—		4		692		—
	$	2,672	$	—	$	224	$	2,448	$	—
2012 Activities
Severance	$	4,533	$	—	$	—	$	795	$	—
Exit costs	1,633		78		267		823		54
Other charges	1,687		—		—		—		—
	$	7,853	$	78	$	267	$	1,618	$	54

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Debt Capital Lease (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
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	$ 2,593	$ 2,810

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Income taxes

6 Months Ended

Jun. 30, 2015

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. 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.

The effective income tax rate for the three and six months ended June 30, 2015 and 2014, differs from the U.S. federal income tax rate primarily due to the effect of foreign taxable income, tax credits, and permanent items.

Income Taxes - Bilateral Advance Pricing Agreement

As previously disclosed, the Company has applied for a bilateral Advance Pricing Agreement ("APA") between  the U.S. and South Korea, covering the tax years 2007 through 2014.  The Korean and U.S. tax authorities met in July 2015, and have tentatively agreedon the terms of the APA, subject to additional review and approvals by the respective tax authorities and the Company.  The terms of the agreement are not disclosed to the Company until agreements are finalized. However some limited information has been provided which the Company is currently reviewing and analyzing the impacts.  While final adjustments have not been determined by either the U.S. or South Korea tax authorities, a final agreement may result in income tax expense of up to $20,000,000 and cash outflow of up to $44,000,000.

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Debt (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Schedule of Debt

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

	June 30,			December 31,
(In thousands)	2015			2014
Asset-Based Revolving Credit Facility- Maturity date of September 5, 2018	$	43,600		$	—
Term B Loan, as Amended and Restated - Maturity date of March 5, 2020	292,173			293,637
Total Senior Credit Facility and Notes	335,773			293,637
Capital leases and other obligations	7,907			8,167
Less current maturities	(3,489		)	(3,509		)
Long-term debt less current maturities	$	340,191		$	298,295

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Stock-based compensation

6 Months Ended

Jun. 30, 2015

Share-based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments

17. Stock-based compensation

Omnibus Incentive Plan

The Omnibus Incentive Plan, which is stockholder-approved, became effective on October 27, 2010, was amended on March 24, 2011 and permits our Compensation Committee of the Board of Directors 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. Actual participation, as well as the terms of the awards to those participants, is determined by the Compensation Committee. The maximum number of shares authorized that may be delivered pursuant to awards under the Omnibus Incentive Plan was 5,500,000. As of June 30, 2015, there were 2,790,000shares available to be issued under the Omnibus Incentive Plan.

On February 23, 2015, executive officers and other key employees received restricted stock awards of 150,280 common shares with a weighted average grant date value of $23.01, 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 2015, 2016 and 2017 based on a target operating income for each of the years. Also on February 23, 2015, we granted an additional time-based restricted stock award of 22,816 common shares which will vest 100% on the first anniversary of the grant date. Additionally, executive officers and other key employees were granted 305,753 stock option awards which vest equally over a three-year period with a term of seven years and a weighted average exercise price of $23.01.

On March 6, 2015, an additional time-based restricted stock award of 15,000 common shares was granted with a grant date value of $22.62 based on the closing price of our common stock on the grant date as reported on the NASDAQ Stock Market. This award will vest 100% on the third anniversary of the grant date.

In May 2015, additional new hire restricted stock awards of 30,558 common shares (including performance shares) were granted with a weighted average grant date value of $21.76 based on the closing price of our common stock on the respective grant dates as reported on the NASDAQ Stock Market. These awards have the same terms and conditions as the awards granted on February 23, 2015 as discussed above. Also in May 2015, we granted new hires 64,980 stock option awards which vest equally over a three-year period with a term of seven years and a weighted average exercise price of $21.76.

Also on February 23, 2015, our Board of Directors received restricted stock awards of 22,815 common shares and stock option awards of 46,418 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 $23.01, 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 $23.01.

We estimated the grant date fair value of all stock options granted during the six months ended June 30, 2015 using the Black-Scholes valuation model. The weighted average valuation per share was $4.78 based on the following assumptions: Risk-free interest rate: 1.41%, Dividend Yield: 1.78%, Expected Volatility: 27.94% and Expected Term: 4.5 years.

Shares issued upon exercise of stock options were 7,036 and 2,397 during the six months ended June 30, 2015 and 2014, respectively.

Noncash compensation expense related to all types of awards was recognized for the three and six months ended June 30, 2015 and 2014 as follows:

	Three months ended June 30,				Six months ended June 30,
(In thousands)	2015		2014		2015		2014
Stock-based compensation expense	$	1,009	$	1,342	$	2,325	$	2,561

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 eligible participants or we assume unvested equity awards in connection with acquisitions.

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Reclassifications out of accumulated other comprehensive income (loss) Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014
Beginning Balance	$ (17,988)	$ (9,383)	$ 16,209	$ 19,170
Other comprehensive income (loss) before reclassifications	(4,335)	(10,307)	9,392	(3,097)
Amounts reclassified from accumulated other comprehensive income (loss)	1,949	1,702	(305)	136
Ending Balance	(20,374)	(17,988)	25,296	16,209
Accumulated Translation Adjustment
Beginning Balance	(6,403)	1,590	10,238	9,441
Other comprehensive income (loss) before reclassifications	(910)	(7,993)	5,644	797
Amounts reclassified from accumulated other comprehensive income (loss)	0	0	0	0
Ending Balance	(7,313)	(6,403)	15,882	10,238
Accumulated Defined Benefit Plans Adjustment
Beginning Balance	(4,264)	(4,184)	7,503	7,866
Other comprehensive income (loss) before reclassifications	(110)	(105)	(241)	(463)
Amounts reclassified from accumulated other comprehensive income (loss)	25	25	102	100
Ending Balance	(4,349)	(4,264)	7,364	7,503
Foreign Exchange Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Beginning Balance	(3,845)	(4,662)	1,231	2,753
Other comprehensive income (loss) before reclassifications	(2,295)	(82)	3,298	(886)
Amounts reclassified from accumulated other comprehensive income (loss)	1,134	899	(1,162)	(636)
Ending Balance	(5,006)	(3,845)	3,367	1,231
Commodity Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Beginning Balance	(2,875)	(1,955)	(3,368)	(1,776)
Other comprehensive income (loss) before reclassifications	(1,096)	(1,698)	1,101	(2,264)
Amounts reclassified from accumulated other comprehensive income (loss)	790	778	755	672
Ending Balance	(3,181)	(2,875)	(1,512)	(3,368)
Interest Rate Swap | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Beginning Balance	(601)	(172)	605	886
Other comprehensive income (loss) before reclassifications	76	(429)	(410)	(281)
Amounts reclassified from accumulated other comprehensive income (loss)	0	0	0	0
Ending Balance	$ (525)	$ (601)	$ 195	$ 605

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Consolidated statements of cash flows (Parentheticals) $ in Thousands	6 Months Ended
	Jun. 30, 2014 USD ($)
USA Industries Acquisition [Member]
Cash Acquired from Acquisition	$ 109

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Consolidated balance sheets Parentheticals - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Allowance for doubtful accounts	$ 1,973	$ 1,583
Stockholders' Equity:
Common Stock, par value	$ 0.0001	$ 0.0001
Common Stock, shares outstanding	31,811,724	32,201,086
Treasury Stock, shares outstanding	634,064	0

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Other noncurrent liabilities

6 Months Ended

Jun. 30, 2015

Other Liabilities, Noncurrent [Abstract]

Other noncurrent liabilities

10. Other noncurrent liabilities

Other noncurrent liabilities consisted of the following:

	June 30,		December 31,
(In thousands)	2015		2014
Noncurrent deferred revenue	$	3,590	$	3,967
Other	23,402		22,516
	$	26,992	$	26,483

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Document and entity information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 29, 2015
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	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		31,802,084
Ticker Symbol	REMY
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

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Restructuring and other charges

6 Months Ended

Jun. 30, 2015

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

11. Restructuring and other charges

Total restructuring and other charges of $444,000 were recorded for the six months ended June 30, 2015. These charges consisted of $205,000 of employee termination benefits and $239,000 of other exit costs. Total restructuring and other charges of $393,000 were recorded during the six months ended June 30, 2014. These charges consisted of $230,000 of employee termination benefits and $163,000 of other exit costs. The charges in both periods were primarily related to the closure of our Mezokovesd, Hungary plant and restructuring actions in our North American operations.

The following table summarizes the activity in our accrual for restructuring and other charges for the three and six month periods ended June 30, (in thousands):

2015	Termination benefits			Exit costs			Total
Accrual at December 31, 2014	$	259		$	72		$	331
Provision	15			58			73
Payments	(54		)	(73		)	(127		)
Accrued at March 31, 2015	$	220		$	57		$	277
Provision	190			181			371
Payments	(33		)	(195		)	(228		)
Accrual at June 30, 2015	$	377		$	43		$	420

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
Provision	2			77			79
Payments	(113		)	(97		)	(210		)
Accrual at June 30, 2014	$	148		$	5		$	153

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

	Total expected costs		Expense incurred in						Estimated future expense
			Six months ended June 30, 2015		Twelve months ended December 31, 2014		Twelve months ended December 31, 2013
2014 Activities
Severance	$	1,347	$	205	$	1,066	$	—	$	76
Exit costs	1,111		161		950		—		—
	$	2,458	$	366	$	2,016	$	—	$	76
2013 Activities
Severance	$	1,976	$	—	$	220	$	1,756	$	—
Exit costs	696		—		4		692		—
	$	2,672	$	—	$	224	$	2,448	$	—
2012 Activities
Severance	$	4,533	$	—	$	—	$	795	$	—
Exit costs	1,633		78		267		823		54
Other charges	1,687		—		—		—		—
	$	7,853	$	78	$	267	$	1,618	$	54

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Consolidated statements of operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Net sales	$ 271,997	$ 302,910	$ 575,408	$ 608,915
Cost of goods sold	237,151	252,913	478,560	512,567
Gross profit	34,846	49,997	96,848	96,348
Selling, general, and administrative expenses	30,906	35,890	64,326	68,821
Restructuring and other charges	371	79	444	393
Operating income	3,569	14,028	32,078	27,134
Interest expense–net	4,123	5,337	9,134	10,591
Income (loss) before income taxes	(554)	8,691	22,944	16,543
Income tax expense	396	3,661	7,324	6,569
Net income (loss)	$ (950)	$ 5,030	$ 15,620	$ 9,974
Basic earnings (loss) per share:
Earnings (loss) per share	$ (0.03)	$ 0.16	$ 0.49	$ 0.31
Weighted average shares outstanding	31,674	31,787	31,759	31,720
Diluted earnings (loss) per share:
Earnings (loss) per share	$ (0.03)	$ 0.16	$ 0.49	$ 0.3
Weighted average shares outstanding	31,674	31,866	31,842	31,844
Dividends declared per common share	$ 0.11	$ 0.10	$ 0.21	$ 0.20

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Inventories

6 Months Ended

Jun. 30, 2015

Inventory [Abstract]

Inventory Disclosure

5.Inventories

Net inventories consisted of the following:

	June 30,		December 31,
(In thousands)	2015		2014
Raw materials	$	58,041	$	46,049
Core inventory	36,845		36,034
Work-in-process	9,363		7,827
Finished goods	87,528		74,233
	$	191,777	$	164,143

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

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Financial instruments

6 Months Ended

Jun. 30, 2015

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 June 30, 2015 and December 31, 2014, we had the following outstanding foreign currency contracts that were entered into to hedge forecasted purchases and revenues, respectively:

(In thousands)	Currency denomination
	June 30,		December 31,
Foreign currency contract	2015		2014
South Korean Won	$	66,720	$	82,907
Mexican Peso	$	56,271	$	69,625
Brazilian Real	$	2,526	$	12,318
Hungarian Forint	€	13,785	€	12,646
Great Britain Pound	£	—	£	300

Accumulated unrealized net losses of $(5,006,000) and $(4,662,000) were recorded in accumulated other comprehensive income (loss) (AOCI) as of June 30, 2015 and December 31, 2014, respectively. As of June 30, 2015, losses of $(5,002,000) are expected to be reclassified to the consolidated statement of operations within the next twelve months. Any ineffectiveness during the six months ended June 30, 2015 and 2014, 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 losses of $(863,000) and $(282,000), excluding the tax effect, were recorded in accumulated other comprehensive income (loss) (AOCI) as of June 30, 2015, and December 31, 2014, respectively. As of June 30, 2015, no gains are expected to be reclassified to the consolidated statement of operations within the next twelve months. Any ineffectiveness during the three month periods ended June 30, 2015 and 2014, respectively, 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 thirty-four commodity price hedge contracts outstanding at June 30, 2015, and thirty-seven commodity price hedge contracts outstanding at December 31, 2014, with combined notional quantities of 8,966 and 8,196 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 $(5,259,000) and $(4,092,000), excluding the tax effect, were recorded in AOCI as of June 30, 2015 and December 31, 2014, respectively. As of June 30, 2015, pre-tax losses of $(4,875,000) are expected to be reclassified to the accompanying consolidated statement of operations within the next 12 months. Any ineffectiveness during the six months ended June 30, 2015 and 2014, respectively, 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 June 30, 2015, 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	June 30, 2015		December 31, 2014		Balance sheet location	June 30, 2015		December 31, 2014
Derivatives designated as hedging instruments:
Commodity contracts	Prepaid expenses and other current assets	$	—	$	—	Other current liabilities and accrued expenses	$	4,925	$	3,515
Commodity contracts	Other noncurrent assets	56		—		Other noncurrent liabilities	448		573
Foreign currency contracts	Prepaid expenses and other current assets	424		869		Other current liabilities and accrued expenses	7,749		7,316
Foreign currency contracts	Other noncurrent assets	—		—		Other noncurrent liabilities	552		892
Interest rate swap contracts	Other noncurrent assets	—		—		Other noncurrent liabilities	863		282
Total derivatives designated as hedging instruments		$	480	$	869		$	14,537	$	12,578
Derivatives not designated as hedging instruments:
Interest rate swap contracts	Other noncurrent assets	$	—	$	—	Other noncurrent liabilities	$	3,251	$	2,566
Total derivatives not designated as hedging instruments		$	—	$	—		$	3,251	$	2,566

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended June 30, 2015 (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	$	(1,776	)	Cost of goods sold	$	(1,273	)	Cost of goods sold	$	(23	)
Foreign currency contracts	(2,946		)	Cost of goods sold	(1,483		)	Cost of goods sold	—
Interest rate swap contracts	124			Interest expense–net	—			Interest expense–net	—
	$	(4,598	)		$	(2,756	)		$	(23	)

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	$	105

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the three months ended June 30, 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	$	1,784		Cost of goods sold	$	(1,262	)	Cost of goods sold	$	22
Foreign currency contracts	3,909			Cost of goods sold	1,512			Cost of goods sold	—
Interest rate swap contracts	(672		)	Interest expense–net	—			Interest expense–net	—
	$	5,021			$	250			$	22

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	$	(656	)

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the six months ended June 30, 2015 (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	$	(3,699	)	Cost of goods sold	$	(2,532	)	Cost of goods sold	$	(42	)
Foreign currency contracts	(2,913		)	Cost of goods sold	(2,684		)	Cost of goods sold	—
Interest rate swap contracts	(580		)	Interest expense–net	—			Interest expense–net	—
	$	(7,192	)		$	(5,216	)		$	(42	)

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	$	(685	)

The following tables disclose the effect of our derivative instruments on the accompanying consolidated statement of operations for the six months ended June 30, 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	$	(1,777	)	Cost of goods sold	$	(2,324	)	Cost of goods sold	$	(15	)
Foreign currency contracts	2,784			Cost of goods sold	2,409			Cost of goods sold	—
Interest rate swap contracts	(1,134		)	Interest expense–net	—			Interest expense–net	—
	$	(127	)		$	85			$	(15	)

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	$	(1,333	)

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 U.S. 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 June 30, 2015 and 2014 was $673,000 and $1,292,000, respectively. The cost of factoring such accounts receivable for the six months ended June 30, 2015 and 2014 was $1,436,000 and $2,546,000, respectively. Gross amounts factored under these facilities as of June 30, 2015 and December 31, 2014 were $175,055,000 and $229,696,000, respectively. Any change in the availability of these factoring arrangements could have a material adverse effect on our financial condition.

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Employee benefit plans

6 Months Ended

Jun. 30, 2015

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 our pension plans were as follows (in thousands):

	Three months ended June 30,						Six months ended June 30,
Components of expense	2015			2014			2015			2014
Service costs	$	325		$	289		$	650		$	565
Interest costs	762			755			1,524			1,507
Expected return on plan assets	(761		)	(768		)	(1,522		)	(1,534		)
Recognized net actuarial loss (gain)	53			(147		)	106			(291		)
Net periodic pension cost	$	379		$	129		$	758		$	247

Cash flows

We contributed $1,695,000 and $1,809,000 to our pension plans during the six months ended June 30, 2015 and 2014, respectively. We expect to contribute a total of $2,041,000 to our U.S. pension plans and $2,004,000 to our international pension plans in 2015.

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Debt

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Debt Disclosure

12. Debt

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

	June 30,			December 31,
(In thousands)	2015			2014
Asset-Based Revolving Credit Facility- Maturity date of September 5, 2018	$	43,600		$	—
Term B Loan, as Amended and Restated - Maturity date of March 5, 2020	292,173			293,637
Total Senior Credit Facility and Notes	335,773			293,637
Capital leases and other obligations	7,907			8,167
Less current maturities	(3,489		)	(3,509		)
Long-term debt less current maturities	$	340,191		$	298,295

On December 31, 2014, in connection with the completion of the Spin-off Transaction, Remy International, Inc. and certain subsidiaries entered into a Second Amendment to the Asset-Based Revolving Credit Facility (“ABL Facility”) and a Second Amendment and Restatement of the Term B Loan Credit Agreement (“Term B Loan”) (collectively, the “Amendments”).

The Amendments permitted the Spin-off Transaction to occur, added New Remy Holdco Corp. and New Remy Corp. as guarantors of the obligations under the foregoing credit facilities, and made conforming changes to reflect the effects of the Spin-off Transaction. There are no other changes that materially modify the foregoing credit facilities.

The ABL Facility 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 Facility maintains the current availability at $95,000,000, but may be increased, under certain circumstances, by $20,000,000. The ABL Facility is secured by substantially all domestic accounts receivable and inventory. At June 30, 2015, the ABL Facility balance was $43,600,000. Based upon the collateral supporting the ABL Facility, the amount borrowed, and the outstanding letters of credit of $2,310,000, there was additional availability for borrowing of $46,146,000 on June 30, 2015. We will incur an unused commitment fee of 0.375% on the unused amount of commitments under the ABL Facility.

The 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 Term B Loan also contains an option to increase the borrowing provided certain conditions are satisfied, including maintaining a maximum leverage ratio. The 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 Facility. 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 Term B Loan is subject to an excess cash calculation which may require the payment of additional principal on an annual basis. At June 30, 2015, the average borrowing rate, including the impact of the interest rate swaps, was 4.25%.

On March 5, 2013, we entered into a First Amendment to our existing Asset-Based Revolving Credit Facility ("ABL First Amendment") to extend the maturity date of the Asset-Based Revolving Credit Facility from December 17, 2015 to September 5, 2018 and reduce the borrowing rate. 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.

As of June 30, 2015, the estimated fair value of our Term B Loan was $294,512,000, which was $2,339,000 more than the carrying value. As of December 31, 2014, the estimated fair value of our Term B Loan was $290,693,000, which was $2,944,000 less than the carrying value. The Level 2 fair market values are based on established market prices as of June 30, 2015 and December 31, 2014. 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 June 30, 2015. 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 $11,565,000 of which $1,779,000 was borrowed at an average interest rate of 2.61% at June 30, 2015. In Hungary, there is one revolving credit facility with one bank for a total credit facility of $1,038,000 of which $1,014,000 was borrowed at an average interest rate of 2.1% at June 30, 2015. In China there is a revolving credit facility with one bank for a total credit facility of $10,000,000 of which $3,000,000 was borrowed at an average interest rate of 2.04% at June 30, 2015.

Capital leases and other obligations

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 $2,593,000 at June 30, 2015 and approximately $2,810,000 at December 31, 2014, net of accumulated amortization.

On December 29, 2014, we entered into a leaseback financing arrangement with an independent third party involving the sale of a distribution facility with a net book value of approximately $11,207,000 at June 30, 2015 and $11,855,000 at December 31, 2014. We continue to maintain the facility on our books and have included the proceeds from the sale of the facility as a financing obligation totaling $5,800,000 bearing an implied interest rate of 6.5%.

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Other noncurrent assets

6 Months Ended

Jun. 30, 2015

Other noncurrent assets [Abstract]

Other Assets Disclosure

8. Other noncurrent assets

Other noncurrent assets primarily consisted of core return rights of $21,453,000 and noncurrent deferred tax assets of $12,159,000 as of June 30, 2015. Other noncurrent assets primarily consisted of core return rights of $38,940,000 and noncurrent deferred tax assets of $12,028,000 as of December 31, 2014.

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Restructuring and other charges Significant Components (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Restructuring Cost and Reserve
Severance costs			$ 205	$ 230
Business exit costs			239	163
Restructuring and other charges	$ 371	$ 79	444	$ 393
Total Expected Costs | 2014
Restructuring Cost and Reserve
Severance costs			1,347
Business exit costs			1,111
Restructuring and other charges			2,458
Total Expected Costs | 2013
Restructuring Cost and Reserve
Severance costs			1,976
Business exit costs			696
Restructuring and other charges			2,672
Total Expected Costs | 2012
Restructuring Cost and Reserve
Severance costs			4,533
Business exit costs			1,633
Other restructuring costs			1,687
Restructuring and other charges			7,853
Restructuring Charges | 2014
Restructuring Cost and Reserve
Severance costs			205		$ 1,066	$ 0
Business exit costs			161		950	0
Restructuring and other charges			366		2,016	0
Restructuring Charges | 2013
Restructuring Cost and Reserve
Severance costs			0		220	1,756
Business exit costs			0		4	692
Restructuring and other charges			0		224	2,448
Restructuring Charges | 2012
Restructuring Cost and Reserve
Severance costs			0		0	795
Business exit costs			78		267	823
Other restructuring costs			0		0	0
Restructuring and other charges			78		$ 267	$ 1,618
Estimated Future Expense | 2014
Restructuring Cost and Reserve
Severance costs			76
Business exit costs			0
Restructuring and other charges			76
Estimated Future Expense | 2013
Restructuring Cost and Reserve
Severance costs			0
Business exit costs			0
Restructuring and other charges			0
Estimated Future Expense | 2012
Restructuring Cost and Reserve
Severance costs			0
Business exit costs			54
Other restructuring costs			0
Restructuring and other charges			$ 54

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Property, plant and equipment

6 Months Ended

Jun. 30, 2015

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 six months ended June 30, 2015 and 2014 was $12,721,000 and $13,384,000, respectively.

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Goodwill and other intangible assets

6 Months Ended

Jun. 30, 2015

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 June 30, 2015						As of December 31, 2014
(In thousands)	Carrying value		Accumulated amortization		Net		Carrying value		Accumulated amortization		Net
Definite-life intangibles:
Intellectual property	$	28,628	$	3,905	$	24,723	$	27,833	$	2,980	$	24,853
Customer relationships	210,270		61,508		148,762		206,960		50,558		156,402
Customer contract	81,516		61,901		19,615		93,642		63,285		30,357
Trade names	500		33		467		—		—		—
Lease intangible	420		320		100		420		219		201
Total	321,334		127,667		193,667		328,855		117,042		211,813
Indefinite-life intangibles:
Trade names	86,210		—		86,210		86,210		—		86,210
Intangible assets, net	$	407,544	$	127,667	$	279,877	$	415,065	$	117,042	$	298,023
Goodwill	$	263,491	$	—	$	263,491	$	259,586	$	—	$	259,586

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 March 1, 2015, we completed our previously announced acquisition of substantially all assets of Maval Manufacturing, Inc. pursuant to the terms and conditions of a definitive 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 $3,310,000 with a useful life of 10 years, $500,000 to value the Maval trade name with a useful life of 5 years, and $3,905,000 to goodwill in the preliminary purchase price allocation during the six months ended June 30, 2015. 

Trade names were valued based on the relief of royalty approach. This method allocates value based on what the Company would be willing to pay as a royalty to a third-party owner of the intellectual property or trade name in order to exploit the economic benefits. Customer relationships were valued using an excess earnings approach after considering a fair return on fixed assets, working capital, trade names, intellectual property, and assembled workforce. 

During the six months ended June 30, 2015, we had intellectual property additions of $795,000 which were related to patent defense and filing costs. The weighted average useful life of these intellectual property intangibles was 15 years as of June 30, 2015.

During the six months ended June 30, 2015, we had customer contract intangible additions of approximately $726,000, with a weighted average useful life of 4.3 years based on the estimated useful life of the contracts.

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Other current liabilities and accrued expenses

6 Months Ended

Jun. 30, 2015

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:

	June 30,		December 31,
(In thousands)	2015		2014
Accrued warranty	$	25,805	$	22,583
Accrued wages and benefits	16,486		18,784
Current portion of customer obligations	1,576		2,234
Rebates, stocklifts, discounts and returns	16,092		20,282
Current deferred revenue	796		865
Other	52,852		63,761
	$	113,607	$	128,509

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

	Three months ended June 30,						Six months ended June 30,
(In thousands)	2015			2014			2015			2014
Balance at beginning of period	$	27,711		$	32,489		$	26,012		$	30,781
Provision for warranty	11,328			9,047			21,892			21,218
Payments and charges against the accrual	(9,748		)	(11,709		)	(18,973		)	(23,535		)
Increased warranty accruals due to business acquisitions (Note 20)	—			—			360			1,363
Balance at end of period	$	29,291		$	29,827		$	29,291		$	29,827

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Debt Short Term Debt (Details) - Jun. 30, 2015 $ in Thousands	USD ($)
South Korea
Short-term Debt
Short-term debt, number of lenders	3
Line of credit facility, maximum borrowing capacity	$ 11,565
Line of credit facility, amount outstanding	$ 1,779
Short-term debt, weighted average interest rate	2.61%
Hungary
Short-term Debt
Short-term debt, number of lenders	1
Line of credit facility, maximum borrowing capacity	$ 1,038
Line of credit facility, amount outstanding	$ 1,014
Short-term debt, weighted average interest rate	2.086%
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	$ 3,000
Short-term debt, weighted average interest rate	2.04%

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Debt Other Debt Obligations (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
FailedSalesLeasebackAssetNetBookValue	$ 11,207,000	$ 11,855,000
FailedSalesLeasebackFinancingObligation	$ 5,800,000
Other Debt Obligations [Member]
Debt Instrument [Line Items]
Debt, Weighted Average Interest Rate	6.50%

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Debt Amended and Restated Term B Loan Facility (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Amended and Restated Term B Loan Facility
Debt Instrument
Debt instrument, face amount	$ 300,000
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
Debt, weighted average interest rate	4.25%
Long-term debt, fair value	$ 294,512	$ 290,693
Fair value, option, aggregate differences, long-term debt instruments	2,339	$ (2,944)
Covenant agreement, minimum payment missed to fall into default	5,000
Term B Loan Facility
Debt Instrument
Debt instrument, face amount	$ 286,978

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Other noncurrent liabilities (Tables)

6 Months Ended

Jun. 30, 2015

Other Liabilities, Noncurrent [Abstract]

Other Noncurrent Liabilities

Other noncurrent liabilities consisted of the following:

	June 30,		December 31,
(In thousands)	2015		2014
Noncurrent deferred revenue	$	3,590	$	3,967
Other	23,402		22,516
	$	26,992	$	26,483

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Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Inventory [Abstract]
Raw materials	$ 58,041	$ 46,049
Core inventory	36,845	36,034
Work-in-process	9,363	7,827
Finished goods	87,528	74,233
Inventories	$ 191,777	$ 164,143

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

6 Months Ended

Jun. 30, 2015

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

Comprehensive Income (Loss) Note [Text Block]

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 andsix months ended June 30, 2015 (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, 2014	$	1,590		$	(4,662	)	$	(1,955	)	$	(172	)	$	(4,184	)	$	(9,383	)
Other comprehensive income (loss) before reclassifications	(7,993		)	(82		)	(1,698		)	(429		)	(105		)	(10,307		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			899			778			—			25			1,702
Balances at March 31, 2015	$	(6,403	)	$	(3,845	)	$	(2,875	)	$	(601	)	$	(4,264	)	$	(17,988	)
Other comprehensive income (loss) before reclassifications	(910		)	(2,295		)	(1,096		)	76			(110		)	(4,335		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			1,134			790			—			25			1,949
Balances at June 30, 2015	$	(7,313	)	$	(5,006	)	$	(3,181	)	$	(525	)	$	(4,349	)	$	(20,374	)

The following table discloses the changes in each component of accumulated other comprehensive income, net of tax for the three and six months ended June 30, 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	$	9,441	$	2,753		$	(1,776	)	$	886		$	7,866		$	19,170
Other comprehensive income (loss) before reclassifications	797		(886		)	(2,264		)	(281		)	(463		)	(3,097		)
Amounts reclassified from accumulated other comprehensive income (loss)	—		(636		)	672			—			100			136
Balances at March 31, 2014	$	10,238	$	1,231		$	(3,368	)	$	605		$	7,503		$	16,209
Other comprehensive income (loss) before reclassifications	5,644		3,298			1,101			(410		)	(241		)	9,392
Amounts reclassified from accumulated other comprehensive income (loss)	—		(1,162		)	755			—			102			(305		)
Balances at June 30, 2014	$	15,882	$	3,367		$	(1,512	)	$	195		$	7,364		$	25,296

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 June 30,						Affected Line Item in the Statement Where Net Income is Presented
	2015			2014
Gains (losses) on cash flow hedges:
Foreign currency contracts	$	(1,483	)	$	1,512		Cost of goods sold
Commodity contracts	(1,296		)	(1,240		)	Cost of goods sold
	(2,779		)	272			Total before tax
	855			135			Tax benefit (expense)
	$	(1,924	)	$	407		Net of tax
Amortization of employee benefit plan costs:
Prior service costs	$	—		$	—		Selling, general and administrative expenses
Net actuarial loss	(29		)	(167		)	Selling, general and administrative expenses
	(29		)	(167		)	Total before tax
	4			65			Tax benefit (expense)
	$	(25	)	$	(102	)	Net of tax
Total reclassifications for the period	$	(1,949	)	$	305		Net of tax

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	Six months ended June 30,						Affected Line Item in the Statement Where Net Income is Presented
	2015			2014
Gains (losses) on cash flow hedges:
Foreign currency contracts	$	(2,684	)	$	2,409		Cost of goods sold
Commodity contracts	(2,574		)	(2,339		)	Cost of goods sold
	(5,258		)	70			Total before tax
	1,657			301			Tax benefit (expense)
	$	(3,601	)	$	371		Net of tax
Amortization of employee benefit plan costs:
Prior service costs	$	—		$	—		Selling, general and administrative expenses
Net actuarial loss	(58		)	(331		)	Selling, general and administrative expenses
	(58		)	(331		)	Total before tax
	8			129			Tax benefit (expense)
	$	(50	)	$	(202	)	Net of tax
Total reclassifications for the period	$	(3,651	)	$	169		Net of tax

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Other commitments and contingencies

6 Months Ended

Jun. 30, 2015

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, including those relating to commercial transactions, product liability, safety, health, taxes, environmental and other matters. We believe that none of such actions, other than those discussed below, depart from customary litigation arising in the ordinary course of business. 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 has been recorded in our accompanying consolidated financial statements. For legal proceedings where it has been determined that a loss is either probable but the amount or range of loss is not reasonably estimable, or reasonably possible, we provide disclosure with respect to the matter.

Actual losses may materially differ from the amounts recorded and the ultimate outcomes of our pending cases are generally not yet determinable. At present we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition. However, litigation matters are inherently uncertain, and we cannot currently quantify our ultimate liability for unresolved litigation matters. As a result, it is possible that such liability could materially affect our consolidated financial position or our results of operations or cash flows for an individual reporting period.

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 Old Remy in the Fourth District federal court in San Luis Potosi, Mexico requesting the rescission of two alleged operational service contracts. We filed a timely response in the Fourth District Court 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 Fourth District 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 of this ruling in the Unitary Tribunal in San Luis Potosi, Mexico. On October 2, 2014, the Unitary Tribunal in San Luis Potosi, Mexico ruled on the appeal, reducing the March 2014 lower Fourth District Court award from $17,380,000 to payment of invoices and amounts due of $121,000 plus Lorva's costs and attorney fees. Both Lorva and Old Remy filed a timely appeal of this ruling in the 4th Collegiate Tribunal in San Luis Potosi, Mexico in October 2014. In February 2015, the 4th Collegiate Tribunal sent instructions to the Unitary Tribunal to consider the evidence presented that supports Remy's allegation that the contract is fraudulent and rule on that evidence. In March 2015, the Unitary Tribunal reissued the same judgment as in their prior October 2014 ruling, as a result, Remy filed an appeal with the 4th Collegiate Tribunal in April 2015. We believe it is probable that we should prevail on final appeal based on legal arguments and the facts of this case. As of June 30, 2015, we continue to maintain an immaterial accrual related to this matter.

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

In March 2011, Tecnomatic filed a lawsuit 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. On September 11, 2014, we announced entry into a Settlement Agreement and Mutual General Release (the "Agreement") to settle all disputes that existed among us and Tecnomatic. In addition, we entered into a cross licensing arrangement of certain patents with Tecnomatic. The value of the patents received from Tecnomatic was approximately $13,930,000. Pursuant to the Agreement and the cross licensing arrangement, we paid to Tecnomatic a $16,000,000 cash payment in September 2014 and paid a $16,000,000 cash payment during the six months ended June 30, 2015.

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Financial instruments Income Statement Locations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Designated as Hedging Instrument
Derivative Instruments, Gain (Loss)
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	$ (4,598)	$ 5,021	$ (7,192)	$ (127)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	(23)	22	(42)	(15)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(2,756)	250	(5,216)	85
Designated as Hedging Instrument | Commodity Contract
Derivative Instruments, Gain (Loss)
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	(1,776)	1,784	(3,699)	(1,777)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	(23)	22	(42)	(15)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(1,273)	(1,262)	(2,532)	(2,324)
Designated as Hedging Instrument | Foreign Exchange Contract
Derivative Instruments, Gain (Loss)
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	(2,946)	3,909	(2,913)	2,784
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	0	0	0	0
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(1,483)	1,512	(2,684)	2,409
Designated as Hedging Instrument | Interest Rate Swap
Derivative Instruments, Gain (Loss)
Amount of gain (loss) recognized in OCI on derivatives (effective portion)	124	(672)	(580)	(1,134)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	0	0	0	0
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	0	0	0	0
Not Designated as Hedging Instrument | Interest Rate Swap
Derivative Instruments, Gain (Loss)
Amount of gain (loss) recognized in income on derivatives	$ 105	$ (656)	$ (685)	$ (1,333)

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Acquisition (Tables)

6 Months Ended

Jun. 30, 2015

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:

Trade accounts receivable	$	8,011
Inventories	14,065
Prepaid expenses and other current assets	25
Property, plant and equipment	1,764
Goodwill	3,905
Intangible assets	3,810
Other noncurrent assets	22
Total assets acquired	$	31,602
Accounts payable	$	6,674
Other current liabilities and accrued expenses	2,928
Total liabilities acquired	$	9,602
Net assets acquired	$	22,000

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Consolidated statements of comprehensive income (loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income (loss)	$ (950)	$ 5,030	$ 15,620	$ 9,974
Other comprehensive income (loss):
Foreign currency translation adjustments	(910)	5,644	(8,903)	6,441
Employee benefit plans, net of tax	(85)	(139)	165	502
Total other comprehensive income (loss), net of tax	(2,386)	9,087	(10,991)	6,126
Comprehensive income (loss)	(3,336)	14,117	4,629	16,100
Foreign Exchange Contract
Other comprehensive income (loss):
Derivative contracts, net of tax	(1,161)	2,136	(344)	614
Commodity Contract
Other comprehensive income (loss):
Derivative contracts, net of tax	(306)	1,856	(1,226)	264
Interest Rate Swap
Other comprehensive income (loss):
Derivative contracts, net of tax	$ 76	$ (410)	$ (353)	$ (691)

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Fair value measurements

6 Months Ended

Jun. 30, 2015

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 June 30, 2015 and December 31, 2014, are set forth in the table below:

	As of June 30, 2015							As of December 31, 2014
(In thousands)	Asset/ (liability)			Level 2			Valuation technique	Asset/ (liability)			Level 2			Valuation technique
Interest rate swap contracts	$	(4,114	)	$	(4,114	)	C	$	(2,848	)	$	(2,848	)	C
Foreign exchange contracts	(7,877		)	(7,877		)	C	(7,339		)	(7,339		)	C
Commodity contracts	(5,317		)	(5,317		)	C	(4,088		)	(4,088		)	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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Restructuring and other charges Restructing Detail (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Restructuring and Related Activities [Abstract]
Restructuring and other charges	$ 371	$ 79	$ 444	$ 393
Severance costs			205	230
Business exit costs			$ 239	$ 163

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Reclassifications out of accumulated other comprehensive income (loss) Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Accumulated other comprehensive loss	$ (20,374)	$ (17,988)	$ 25,296	$ 16,209	$ (20,374)	$ 25,296	$ (9,383)	$ 19,170
Other comprehensive income (loss) before reclassifications	(4,335)	(10,307)	9,392	(3,097)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(1,949)	(1,702)	305	(136)
Cost of goods sold	(237,151)		(252,913)		(478,560)	(512,567)
Total before tax	(554)		8,691		22,944	16,543
Tax (expense) or benefit	(396)		(3,661)		(7,324)	(6,569)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Foreign Exchange Contract
Accumulated other comprehensive loss	(5,006)	(3,845)	3,367	1,231	(5,006)	3,367	(4,662)	2,753
Other comprehensive income (loss) before reclassifications	(2,295)	(82)	3,298	(886)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(1,134)	(899)	1,162	636
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Commodity Contract
Accumulated other comprehensive loss	(3,181)	(2,875)	(1,512)	(3,368)	(3,181)	(1,512)	(1,955)	(1,776)
Other comprehensive income (loss) before reclassifications	(1,096)	(1,698)	1,101	(2,264)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(790)	(778)	(755)	(672)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ERROR in label resolution.
Accumulated other comprehensive loss	(525)	(601)	195	605	(525)	195	(172)	886
Other comprehensive income (loss) before reclassifications	76	(429)	(410)	(281)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0	0
Accumulated Defined Benefit Plans Adjustment
Accumulated other comprehensive loss	(4,349)	(4,264)	7,364	7,503	(4,349)	7,364	(4,184)	7,866
Other comprehensive income (loss) before reclassifications	(110)	(105)	(241)	(463)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(25)	(25)	(102)	(100)
Accumulated Translation Adjustment
Accumulated other comprehensive loss	(7,313)	(6,403)	15,882	10,238	(7,313)	15,882	$ 1,590	$ 9,441
Other comprehensive income (loss) before reclassifications	(910)	(7,993)	5,644	797
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	$ 0	0	$ 0
Reclassification out of Accumulated Other Comprehensive Income
Net Income (Loss) Available to Common Stockholders, Basic	(1,949)		305		(3,651)	169
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Total before tax	(2,779)		272		(5,258)	70
Tax (expense) or benefit	855		135		1,657	301
Net Income (Loss) Available to Common Stockholders, Basic	(1,924)		407		(3,601)	371
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	(1,483)		1,512		(2,684)	2,409
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Commodity Contract
Cost of goods sold	(1,296)		(1,240)		(2,574)	(2,339)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment
Prior-service costs	0		0		0	0
Actuarial losses	(29)		(167)		(58)	(331)
Total before tax	(29)		(167)		(58)	(331)
Tax (expense) or benefit	4		65		8	129
Net Income (Loss) Available to Common Stockholders, Basic	$ (25)		$ (102)		$ (50)	$ (202)

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Acquisition (Notes)

6 Months Ended

Jun. 30, 2015

Acquisitions [Abstract]

Mergers, Acquisitions and Dispositions Disclosures

20. Acquisition

Acquisition of Maval Manufacturing, Inc.

On February 19, 2015, we announced that we entered into a definitive agreement to acquire substantially all of the assets of Maval Manufacturing, Inc., a manufacturer, remanufacturer, and distributor of steering systems, components, and specialty products to the automotive service, original equipment power sports, and off-road specialty vehicle markets. The transaction closed effective March 1, 2015. In connection with the closing of the transaction, the assets were placed in Maval Industries, L.L.C. ("Maval"), a wholly-owned subsidiary of the Company. The results of operations of Maval have been included in our consolidated results of operations since the acquisition date.

Preliminary purchase price was $22,000,000, consisting of $18,700,000 in cash and $3,300,000 cash held in escrow. The initial purchase price allocation based on their fair values as of the acquisition date was as follows:

Trade accounts receivable	$	8,011
Inventories	14,065
Prepaid expenses and other current assets	25
Property, plant and equipment	1,764
Goodwill	3,905
Intangible assets	3,810
Other noncurrent assets	22
Total assets acquired	$	31,602
Accounts payable	$	6,674
Other current liabilities and accrued expenses	2,928
Total liabilities acquired	$	9,602
Net assets acquired	$	22,000

Goodwill of $3,905,000, which is deductible for tax purposes, has been recorded based on the amount of the purchase price that exceeds the fair value of the net assets acquired. The purchase price allocation is preliminary as of June 30, 2015 as we finalize our valuation of long lived assets and any contingent liabilities.

For the three months ended June 30, 2015, we recognized customer relationships and trade name amortization of $108,000, which was included in cost of goods sold in the accompanying consolidated statement of operations.

For the six months ended June 30, 2015, we recognized a finished goods inventory step-up of $587,000 and customer relationships and trade name amortization of $144,000, which was included in cost of goods sold in the accompanying consolidated statement of operations.

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Other commitments and contingencies (Details) - USD ($)	3 Months Ended	6 Months Ended
	Sep. 30, 2014	Jun. 30, 2015
Lorva
Loss Contingencies
Loss Contingency, Damages Sought		$ 17,380,000
Loss Contingency, Estimate of Possible Loss		121,000
Tecnomatic
Loss Contingencies
Loss Contingency, Damages Sought		110,000,000
Remy, Inc. vs. Tecnomatic S.p.A. [Member]
Loss Contingencies
Payments for Legal Settlements	$ 16,000,000	$ 16,000,000
Intellectual Property
Loss Contingencies
Finite-lived Intangible Assets Acquired	$ 13,930,000

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Employee benefit plans (Tables)

6 Months Ended

Jun. 30, 2015

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

Schedule of Defined Benefit Plans Disclosures

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

	Three months ended June 30,						Six months ended June 30,
Components of expense	2015			2014			2015			2014
Service costs	$	325		$	289		$	650		$	565
Interest costs	762			755			1,524			1,507
Expected return on plan assets	(761		)	(768		)	(1,522		)	(1,534		)
Recognized net actuarial loss (gain)	53			(147		)	106			(291		)
Net periodic pension cost	$	379		$	129		$	758		$	247

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Stockholders' equity

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Attributable to Parent [Abstract]

Stockholders' Equity Note Disclosure

13. Stockholders' equity

Common stock and preferred stock

In connection with the Spin-off Transaction closing on December 31, 2014, we amended our Amended and Restated Certificate of Incorporation, which is substantially identical to Old Remy's Amended and Restated Certificate of Incorporation in effect immediately prior to the closing of the Spin-off Transaction. The rights of stockholders after the closing of the Spin-off Transaction, as a matter of state law and under the relevant organizational documents, are fundamentally the same as the rights of stockholders that were in effect immediately prior to the consummation of the Spin-off Transaction.

Under the Amended and Restated Certificate of Incorporation, the Company is authorized 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 June 30, 2015, there were 31,811,724 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.

Share Repurchase Program

On February 18, 2015, the Board of Directors approved a share repurchase program, effective February 23, 2015, under which we may repurchase up to $100,000,000 of our outstanding common stock shares. Purchases may be made from time to time in the open market at prevailing prices or in privately negotiated transactions through February 28, 2018. During the three months ended June 30, 2015, we paid approximately $9,932,000 in repurchases of our common stock (447,725 shares at an average purchase price of $22.18 per share, excluding commission costs). As of June 30, 2015, the amount remaining under the Board's share repurchase authorization was $90,068,000. The Merger Agreement entered into in connection with the BorgWarner Transaction generally prohibits us from making further repurchases of our common stock.

Treasury stock

During the six months ended June 30, 2015, we withheld 47,772 shares at cost, or $1,130,000, to satisfy tax obligations for vesting of restricted stock shares and exercises of stock options granted to our employees under the Remy International, Inc. Omnibus Incentive Plan, or "Omnibus Incentive Plan". In addition, 117,457 shares were forfeited and returned to treasury stock during the six months ended June 30, 2015 for no value pursuant to the Omnibus Incentive Plan.

During the six months ended June 30, 2014, we withheld 114,291 shares at cost, or $2,505,000, to satisfy tax obligations for vesting of restricted stock shares and exercises of stock options granted to our employees under the Omnibus Incentive Plan. In addition, 74,892 shares were forfeited and returned to treasury stock during the six months ended June 30, 2014 for no value pursuant to the Omnibus Incentive Plan.

Dividend payments

Our Board of Directors declared quarterly cash dividends of ten cents ($0.10) per share in February 2015 and eleven cents ($0.11) per share in April 2015. Cash dividends paid during the six months ended June 30, 2015 were $6,800,000, which also included accrued cash dividends paid on restricted stock vestings.  As of June 30, 2015, a dividend payable of $114,000was recorded for unvested restricted stock and is payable upon vesting. 

On July 30, 2015, our Board of Directors declared a quarterly cash dividend of eleven cents ($0.11) per share, payable on August 28, 2015, to stockholders of record as of August 14, 2015.