Delaware | 06-0865505 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
One Colonial Road, Manchester, Connecticut | 06042 | |
(Address of principal executive offices) | (Zip code) |
Title of each class | Name of each exchange on which registered | |
Common Stock, $.01 par value | New York Stock Exchange |
Large accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Accelerated filer ý | Smaller reporting company o |
Page Number | ||
PART I | ||
PART II | ||
Other Information | ||
PART III | ||
PART IV | ||
• | Overall economic and business conditions and the effects on the Company’s markets; |
• | Outlook for the fiscal year 2016; |
• | Expected vehicle production in the North American, European or Asian markets; |
• | Growth opportunities in markets served by the Company; |
• | Expected gross margin, operating margin and working capital improvements from the application of Lean Six Sigma; |
• | Product development and new business opportunities; |
• | Future strategic transactions, including but not limited to: acquisitions, joint ventures, alliances, licensing agreements and divestitures; |
• | Pension plan funding; |
• | Future cash flow and uses of cash; |
• | Future amounts of stock-based compensation expense; |
• | Future earnings and other measurements of financial performance; |
• | Ability to meet cash operating requirements; |
• | Future levels of indebtedness and capital spending; |
• | Ability to meet financial covenants in the Company's revolving credit facility; |
• | Future impact of the variability of interest rates and foreign currency exchange rates; |
• | Expected future impact of recently issued accounting pronouncements upon adoption; |
• | Future effective income tax rates and realization of deferred tax assets; |
• | Estimates of fair values of reporting units and long-lived assets used in assessing goodwill and long-lived assets for possible impairment; and |
• | The expected outcomes of legal proceedings and other contingencies. |
Item 1. | BUSINESS |
Item 1A. | RISK FACTORS |
• | Identify and effectively complete strategic transactions; |
• | Obtain adequate financing to fund strategic initiatives, which could be difficult to obtain; |
• | Successfully integrate and manage acquired businesses that involve numerous operational and financial risks, including difficulties in the integration of acquired operations, diversion of management's attention from other |
• | Improve operating margins through its Lean Six Sigma initiatives which are intended to improve processes and work flow, improve customer service, reduce costs and leverage synergies across the Company; and |
• | Successfully invest and deploy capital investments to support our business and commitments to our customers. |
• | Manage working capital and the level of future profitability. The consolidated cash balance is impacted by capital equipment and inventory investments that may be made in response to changing market conditions; |
• | Satisfy covenants and other obligations under its existing credit facility, which could limit or prohibit Lydall’s ability to borrow funds. Additionally, these debt covenants and other obligations could limit the Company’s ability to make acquisitions, incur additional debt, make investments, or consummate asset sales and obtain additional financing from other sources. |
Item 1B. | UNRESOLVED STAFF COMMENTS |
Item 2. | PROPERTIES |
Location | Primary Business Segment/General Description | Type of Interest | ||
Hamptonville, North Carolina | Thermal/Acoustical Metals and Fibers – Product Manufacturing | Owned | ||
Yadkinville, North Carolina | Thermal/Acoustical Fibers – Product Manufacturing | Leased | ||
Meinerzhagen, Germany | Thermal/Acoustical Metals – Product Manufacturing | Owned | ||
Saint-Nazaire, France | Thermal/Acoustical Metals – Product Manufacturing | Leased | ||
Taicang, China | Thermal/Acoustical Metals – Product Manufacturing | Leased | ||
Green Island, New York | Performance Materials – Specialty Media Manufacturing | Owned | ||
Rochester, New Hampshire | Performance Materials – Specialty Media Manufacturing | Owned | ||
Saint-Rivalain, France | Performance Materials – Specialty Media Manufacturing | Owned | ||
Geleen, the Netherlands | Performance Materials – Specialty Media Manufacturing | Leased | ||
Heerlen, the Netherlands | Performance Materials – Specialty Media Manufacturing | Leased | ||
Stoke-on-Trent, United Kingdom | Industrial Filtration - Filtration Media Manufacturing | Leased | ||
Rossendale, United Kingdom | Industrial Filtration - Filtration Media Manufacturing | Owned | ||
Bury, United Kingdom | Industrial Filtration - Filtration Media Manufacturing | Leased | ||
Wuxi, China | Industrial Filtration - Filtration Media Manufacturing | Leased | ||
Shanghai, China | Industrial Filtration - Filtration Media Manufacturing | Leased | ||
North Augusta, South Carolina | Industrial Filtration - Filtration Media Manufacturing | Owned | ||
Bethune, South Carolina | Industrial Filtration - Filtration Media Manufacturing | Leased | ||
Manchester, Connecticut | Corporate Office | Owned |
Item 3. | LEGAL PROCEEDINGS |
Item 4. | MINE SAFETY DISCLOSURES |
Name | Age | Position and Date of Appointment | Other Business Experience Since 2011 | |||
Dale G. Barnhart | 63 | President, Chief Executive Officer (August 27, 2007) | Not applicable | |||
Scott M. Deakin | 49 | Executive Vice President and Chief Financial Officer (September 8, 2015) | Executive Vice President and Chief Financial Officer, Ensign-Bickford Industries, Inc. (2009 – 2015), a diversified global manufacturer with operating segments that serve the aerospace & defense, life science, specialty chemicals and food & flavoring industries. | |||
Joseph A. Abbruzzi | 57 | President, Industrial Filtration (February 20, 2014); formerly Sr. Vice President, General Manager, Lydall Thermal/Acoustical Fibers (March 14, 2011) | Vice President & General Manager, Guardian Automotive, Glass Division (2007 − 2010), a manufacturer of glass products for commercial, residential, interiors, automotive, energy/solar, and technical glass industries. | |||
William M. Feld | 53 | Vice President, General Manager, Lydall Thermal/Acoustical Fibers (February 24, 2014); formerly Vice President of Operations, Performance Materials (December 10, 2012), formerly Director Engineering, Lydall Thermal/Acoustical Metals (July 11, 2011) | Principle, BNJS Management Group, (2009 - 2011), a consulting group providing expertise relating to start-up, business development, and operations excellence. | |||
William J. Hume | 53 | Senior Vice President, General Manager, Lydall Thermal/Acoustical Metals (August 19, 2014); formerly Senior Vice President, General Manager, Charter Medical Ltd. (January 2, 2012), formerly Director Lean Six Sigma, Lydall, Inc. (September 12, 2011), formerly General Manager, Affinity, a former subsidiary of Lydall,Inc. (March 9, 2009) | Not applicable | |||
James V. Laughlan | 43 | Vice President, Chief Accounting Officer and Treasurer (March 26, 2013); formerly Chief Accounting Officer, Controller and Treasurer (July 27, 2012); formerly Chief Accounting Officer and Controller (March 29, 2010) | Not applicable | |||
Chad A. McDaniel | 42 | Senior Vice President, Chief Administrative Officer, General Counsel and Secretary (May 13, 2015); formerly Vice President, General Counsel and Secretary (May 10, 2013) | Associate General Counsel, United Technologies Corporation (“UTC”), Sikorsky Aircraft division (2012 – 2013), Director; Executive Assistant to the President, UTC Fire & Security division (2010 – 2012); UTC is a manufacturer of high-technology products and services for the global aerospace and building systems industries. |
Item 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
High | Low | Close | ||||||||||
2015 | ||||||||||||
First Quarter | $ | 33.10 | $ | 27.19 | $ | 31.72 | ||||||
Second Quarter | 32.75 | 26.13 | 29.56 | |||||||||
Third Quarter | 30.71 | 25.28 | 28.49 | |||||||||
Fourth Quarter | 38.86 | 28.16 | 35.48 | |||||||||
2014 | ||||||||||||
First Quarter | $ | 23.24 | $ | 16.55 | $ | 22.87 | ||||||
Second Quarter | 29.66 | 21.50 | 27.37 | |||||||||
Third Quarter | 31.64 | 24.20 | 27.01 | |||||||||
Fourth Quarter | 33.57 | 25.33 | 32.82 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||
Activity October 1, 2015 - October 31, 2015 | — | — | — | — | ||||||||
Activity November 1, 2015 - November 30, 2015 | 2,027 | $ | 37.74 | — | — | |||||||
Activity December 1, 2015 - December 31, 2015 | 5,991 | $ | 36.74 | — | — | |||||||
Total | 8,018 | — | — | — |
12/31/2010 | 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | |||||||||||||
Lydall, Inc. | 100.00 | 117.89 | 178.14 | 218.88 | 407.70 | 440.75 | ||||||||||||
S&P Smallcap 600 | 100.00 | 101.02 | 117.51 | 166.05 | 175.61 | 172.14 | ||||||||||||
Russell 2000 | 100.00 | 95.82 | 111.49 | 154.78 | 162.35 | 155.18 |
* | $100 invested on 12/31/10 in stock or index, including reinvestment of dividends. Fiscal year ending December 31. |
Item 6. | SELECTED FINANCIAL DATA |
In thousands except per share amounts and ratio data | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||
Financial results from continuing operations | |||||||||||||||||||
Net sales | $ | 524,505 | $ | 535,829 | $ | 397,969 | $ | 378,924 | $ | 383,588 | |||||||||
Income from continuing operations | $ | 46,259 | $ | 21,847 | $ | 19,155 | $ | 16,806 | $ | 9,047 | |||||||||
Common stock per share data | |||||||||||||||||||
Basic income from continuing operations | $ | 2.76 | $ | 1.31 | $ | 1.16 | $ | 1.01 | $ | 0.54 | |||||||||
Basic income from discontinued operations | $ | — | $ | — | $ | — | $ | — | $ | 0.28 | |||||||||
Basic net income | $ | 2.76 | $ | 1.31 | $ | 1.16 | $ | 1.01 | $ | 0.82 | |||||||||
Diluted income from continuing operations | $ | 2.71 | $ | 1.28 | $ | 1.14 | $ | 0.99 | $ | 0.54 | |||||||||
Diluted income from discontinued operations | $ | — | $ | — | $ | — | $ | — | $ | 0.28 | |||||||||
Diluted net income | $ | 2.71 | $ | 1.28 | $ | 1.14 | $ | 0.99 | $ | 0.82 | |||||||||
Financial position | |||||||||||||||||||
Total assets | $ | 358,260 | $ | 361,770 | $ | 274,685 | $ | 251,916 | $ | 235,185 | |||||||||
Long-term debt, net of current maturities | $ | 20,156 | $ | 40,315 | $ | 1,051 | $ | 1,646 | $ | 2,261 | |||||||||
Total stockholders’ equity | $ | 245,225 | $ | 212,599 | $ | 200,087 | $ | 174,496 | $ | 160,852 | |||||||||
Property, plant and equipment, net | |||||||||||||||||||
Property, plant and equipment, net | $ | 114,433 | $ | 115,357 | $ | 78,863 | $ | 76,254 | $ | 78,939 | |||||||||
Capital expenditures | $ | 21,555 | $ | 19,001 | $ | 13,826 | $ | 11,404 | $ | 8,884 | |||||||||
Depreciation | $ | 16,386 | $ | 16,659 | $ | 12,109 | $ | 12,784 | $ | 13,625 | |||||||||
Performance and other ratios | |||||||||||||||||||
Gross margin | 23.4 | % | 21.5 | % | 21.4 | % | 20.5 | % | 17.6 | % | |||||||||
Operating margin | 10.0 | % | 6.4 | % | 7.2 | % | 5.6 | % | 4.2 | % | |||||||||
Total debt to total capitalization | 7.7 | % | 16.1 | % | 0.8 | % | 1.4 | % | 2.0 | % |
Item 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Consolidated net sales were $524.5 million in 2015, compared to $535.8 million in 2014, a decrease of $11.3 million, or 2.1%. The change in consolidated net sales is summarized in the following table. |
Components | Change in Net Sales | Percent Change | |||||
Acquisition of Industrial Filtration (February 20, 2014) | $ | 14,992 | 2.8 | % | |||
Parts, volume and pricing change | 15,903 | 3.0 | % | ||||
Change in tooling sales | 2,146 | 0.4 | % | ||||
Divestiture of Life Sciences Vital Fluids (January 30, 2015) | (18,011 | ) | (3.4 | )% | |||
Foreign currency translation | (26,354 | ) | (4.9 | )% | |||
Total | $ | (11,324 | ) | (2.1 | )% |
• | The change in consolidated net sales attributable to the acquisition of Industrial Filtration relates to the change in net sales in the first quarter of 2015 compared to the partial first quarter of 2014 as the acquisition occurred on February 20, 2014. |
• | Gross margin increased 190 basis points to 23.4% in 2015 compared to 21.5% in 2014. Gross margin improved in the T/A Fibers and Industrial Filtration segments impacting consolidated gross margin by approximately 110 and 50 basis points, respectively, primarily from lower raw material costs, favorable mix of product sales, and improved absorption of fixed costs. T/A Metals and Performance Materials segment gross margins had minimal impact on the change in consolidated gross margin. |
• | Operating income was $52.5 million, or 10.0% of net sales, compared to $34.0 million, or 6.4% of net sales; The change in consolidated operating income is summarized in the following table. |
Components | Change in Operating Income | Percent Change | ||||
Sales/operational | $ | 10,669 | 31.3% | |||
Long-lived asset impairment charge | (1,354 | ) | (4.0)% | |||
Decrease in pension settlement expense | 4,914 | 14.5% | ||||
Acquisition/Divestiture, net | 589 | 1.7% | ||||
Impact of foreign currency translation | (1,861 | ) | (5.5)% | |||
Decrease in sales commission settlement expense | 2,900 | 8.5% | ||||
Decrease in transaction-related expenses | 2,572 | 7.6% | ||||
Total | $ | 18,429 | 54.1% |
• | The sales/operational component of the change in Consolidated operating income was primarily attributed to the T/A Fibers segment where operating income increased $7.9 million in 2015 compared to 2014 due to increased net sales and improved gross margin. |
• | Net income was $46.3 million, or $2.71 per diluted share, compared to $21.8 million, or $1.28 per diluted share in 2014. Net income in 2015 included $11.8 million, or $0.69 per diluted share, from the sale of the Life Sciences Vital Fluids business. |
• | Cash generated from operations was $36.1 million in 2015 compared to $41.6 million in 2014. Increased working capital requirements were partially offset by an increase in net income and non-cash adjustments in 2015 compared to 2014. |
In thousands of dollars | 2015 | Percent Change | 2014 | Percent Change | 2013 | |||||||||||||
Net sales | $ | 524,505 | (2.1 | )% | $ | 535,829 | 34.6 | % | $ | 397,969 |
In thousands of dollars | 2015 | Percent Change | 2014 | Percent Change | 2013 | |||||||||||||
Cost of sales | $ | 402,008 | (4.5 | )% | $ | 420,851 | 34.6 | % | $ | 312,744 |
In thousands of dollars | 2015 | 2014 | 2013 | ||||||||
Gross profit | $ | 122,497 | $ | 114,978 | $ | 85,225 | |||||
Gross margin | 23.4 | % | 21.5 | % | 21.4 | % |
In thousands of dollars | 2015 | 2014 | 2013 | ||||||||
Selling, product development and administrative expenses | $ | 70,020 | $ | 80,930 | $ | 56,512 | |||||
Percentage of net sales | 13.3 | % | 15.1 | % | 14.2 | % |
In thousands of dollars | 2015 | 2014 | 2013 | ||||||||
Gain on sale of business | $ | (18,647 | ) | $ | — | $ | — |
In thousands of dollars | 2015 | 2014 | 2013 | ||||||||
Interest expense | $ | 755 | $ | 1,093 | $ | 304 | |||||
Weighted average interest rate during the year | 1.3 | % | 1.5 | % | 5.4 | % |
In thousands of dollars | 2015 | 2014 | 2013 | ||||||||
Other (income) expense, net | $ | (654 | ) | $ | (701 | ) | $ | 67 |
2015 | 2014 | 2013 | ||||||
Effective income tax rate | 34.9 | % | 35.1 | % | 32.4 | % |
Consolidated Net Sales | For the Years Ended December 31, | ||||||||||
(2) | (3) | ||||||||||
In thousands | 2015 | 2014 | 2013 | ||||||||
Performance Materials Segment: | |||||||||||
Filtration | $ | 62,716 | $ | 71,648 | $ | 64,752 | |||||
Thermal Insulation | 28,311 | 31,404 | 36,929 | ||||||||
Life Sciences Filtration | 10,451 | 12,814 | 10,320 | ||||||||
Performance Materials Segment net sales | 101,478 | 115,866 | 112,001 | ||||||||
Industrial Filtration Segment: | |||||||||||
Industrial Filtration (1) | 139,133 | 112,220 | — | ||||||||
Industrial Filtration Segment net sales | 139,133 | 112,220 | — | ||||||||
Thermal/Acoustical Metals Segment: | |||||||||||
Metal parts | 141,117 | 145,135 | 135,833 | ||||||||
Tooling | 19,815 | 19,130 | 22,573 | ||||||||
Thermal/Acoustical Metals Segment net sales | 160,932 | 164,265 | 158,406 | ||||||||
Thermal/Acoustical Fibers Segment: | |||||||||||
Fiber parts | 135,595 | 124,458 | 105,876 | ||||||||
Tooling | 3,152 | 4,133 | 8,444 | ||||||||
Thermal/Acoustical Fibers Segment net sales | 138,747 | 128,591 | 114,320 | ||||||||
Other Products and Services: | |||||||||||
Life Sciences Vital Fluids | 1,671 | 19,682 | 17,175 | ||||||||
Other Products and Services net sales | 1,671 | 19,682 | 17,175 | ||||||||
Eliminations and Other (1) | (17,456 | ) | (4,795 | ) | (3,933 | ) | |||||
Consolidated Net Sales | $ | 524,505 | $ | 535,829 | $ | 397,969 |
Operating Income | For the Years Ended December 31, | ||||||||||
(2) | (3) | ||||||||||
In thousands | 2015 | 2014 | 2013 | ||||||||
Performance Materials Segment | $ | 6,790 | $ | 9,706 | $ | 9,462 | |||||
Industrial Filtration Segment | 13,431 | 6,412 | — | ||||||||
Thermal/Acoustical Metals Segment | 15,517 | 13,823 | 14,088 | ||||||||
Thermal/Acoustical Fibers Segment | 37,086 | 29,167 | 21,486 | ||||||||
Other Products and Services: | |||||||||||
Life Sciences Vital Fluids | 118 | 1,582 | 778 | ||||||||
Corporate Office Expenses | (20,465 | ) | (26,642 | ) | (17,101 | ) | |||||
Consolidated Operating Income | $ | 52,477 | $ | 34,048 | $ | 28,713 |
(1) | Included in the Industrial Filtration segment and Eliminations and Other is $13.8 million and $1.0 million in intercompany sales to the T/A Fibers segment for the years ended 2015 and 2014, respectively. |
(2) | Other Products and Services reports results for the period preceding the date of disposition of the Life Sciences Vital Fluids business on January 30, 2015. |
(3) | Industrial Filtration segment reports results for the period following the date of acquisition of February 20, 2014 through December 31, 2014. |
For the Year Ended December 31, | ||||||||||||
In thousands except ratio data | 2015 | 2014 | 2013 | |||||||||
Cash and cash equivalents | $ | 75,909 | $ | 62,051 | $ | 75,407 | ||||||
Cash provided by operating activities | $ | 36,110 | $ | 41,628 | $ | 30,280 | ||||||
Cash provided by (used for) investing activities | $ | 7,905 | $ | (93,489 | ) | $ | (13,986 | ) | ||||
Cash (used for) provided by financing activities | $ | (26,707 | ) | $ | 42,549 | $ | (5,617 | ) | ||||
Depreciation and amortization | $ | 17,275 | $ | 17,646 | $ | 12,703 | ||||||
Capital expenditures | $ | (20,645 | ) | $ | (13,971 | ) | $ | (13,826 | ) | |||
Total debt | $ | 20,479 | $ | 40,930 | $ | 1,714 | ||||||
Total capitalization (debt plus equity) | $ | 265,704 | $ | 253,529 | $ | 201,801 | ||||||
Total debt to total capitalization | 7.7 | % | 16.1 | % | 0.8 | % |
Payments Due by Period | |||||||||||||||||||||||||||
In thousands | 2016 | 2017 | 2018 | 2019 | 2020 | After 5 years | Total | ||||||||||||||||||||
Contractual Obligations: | |||||||||||||||||||||||||||
Operating leases | 4,385 | 3,782 | 2,284 | 828 | 526 | 603 | 12,408 | ||||||||||||||||||||
Capital leases* | 326 | 42 | 42 | 42 | 35 | — | 487 | ||||||||||||||||||||
Long-term debt* | 288 | 288 | 288 | 20,024 | — | 20,888 | |||||||||||||||||||||
Total Contractual Obligations | $ | 4,999 | $ | 4,112 | $ | 2,614 | $ | 20,894 | $ | 561 | $ | 603 | $ | 33,783 |
* | Includes estimated interest payments |
2015 | 2014 | 2013 | ||||||
Risk-free interest rate | 1.8 | % | 1.6 | % | 1.7 | % | ||
Expected life | 5.5 years | 5.1 years | 5.2 years | |||||
Expected volatility | 43 | % | 46 | % | 65 | % | ||
Expected dividend yield | — | % | — | % | — | % |
Item 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Item 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
Item 9A. | CONTROLS AND PROCEDURES |
Item 9B. | OTHER INFORMATION |
Item 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
Item 11. | EXECUTIVE COMPENSATION |
Item 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | ||||||
Equity compensation plans approved by security holders | 806,260 | $ | 11.57 | 949,731 | |||||
Equity compensation plans not approved by security holders | — | — | — | ||||||
Total | 806,260 | $ | 11.57 | 949,731 |
Item 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
Item 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
Page | |
1. Financial Statements: | |
Consolidated Statements of Operations for the years ended December 31, 2015, 2014, and 2013 | |
Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014, and 2013 | |
Consolidated Balance Sheets at December 31, 2015 and 2014 | |
Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014, and 2013 | |
Consolidated Statements of Changes in Stockholders’ Equity for each of the three years in the period ended December 31, 2015 | |
2. Financial Statement Schedule: | |
Schedule II — Valuation and Qualifying Accounts for the years ended December 31, 2015, 2014, and 2013 |
2.1 | Sale and Purchase Agreement dated February 20, 2014, by and among the Andrew Industries Limited, Lydall Inc. and Lydall UK Ltd., filed as Exhibit 10.1 to the Registrant’s Form 8-K dated February 24, 2014 and incorporated herein by reference. The Registrant will supplementally furnish any omitted schedules to the Commission upon request. | |
3.1 | Restated Certificate of Incorporation of the Registrant, as amended through the date of filing of this Annual Report on Form 10-K, filed as Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q dated April 30, 2015 and incorporated herein by this reference. | |
3.2 | Bylaws of the Registrant, as amended and restated as of August 1,2015, filed as Exhibit 3.1 to the Registrant’s Form 8-K dated August 5, 2015 and incorporated herein by this reference. | |
4.1 | Certain long-term debt instruments, each representing indebtedness in an amount equal to or less than 10 percent of the Registrant’s total consolidated assets, have not been filed as exhibits to this Annual Report on Form 10-K. The Registrant will file these instruments with the Commission upon request. | |
10.1 | Capital lease agreement between Lydall Thermique Acoustique S.A.S., CMCIC Lease and Natiocredimurs Societe en Nom Collectif, filed as Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q dated November 9, 2004 and incorporated herein by reference. | |
10.2* | Employment Agreement with Dale G. Barnhart dated July 31, 2007, filed as Exhibit 10.1 to the Registrant’s Form 8-K dated August 3, 2007 and incorporated herein by this reference. | |
10.3* | Employment Agreement with Robert K. Julian dated October 3, 2012, filed as Exhibit 10.1 to the Registrant’s Form 8-K dated October 4, 2012 and incorporated herein by this reference. | |
10.4* | Employment Agreement with David H. Williams dated June 27, 2012, filed as Exhibit 10.3 to the Registrant’s Form 10-Q dated August 1, 2012 and incorporated herein by this reference. | |
10.5* | Employment Agreement with Chad A. McDaniel dated May 8, 2013, filed as Exhibit 10.5 to the Registrant's Annual Report on Form 10-K dated March 5, 2014 and incorporated herein by reference. | |
10.6* | Employment Agreement with Joseph A. Abbruzzi dated March 31, 2014, filed as Exhibit 10.6 to the Registrant's Annual Report on Form 10-K dated March 3, 2015 and incorporated herein by reference. | |
10.7* | Employment Agreement with James V. Laughlan dated August 3, 2015, filed as Exhibit 10.1 to the Registrant's Form 8-K dated August 5, 2015 and incorporated herein by reference. | |
10.8* | Employment Agreement with Scott M. Deakin dated August 21, 2015, filed as Exhibit 10.1 to the Registrant's Form 8-K dated August 21, 2015 and incorporated herein by reference. | |
10.9* | Indemnification Agreement with Dale G. Barnhart dated July 31, 2007, filed as Exhibit 10.2 to the Registrant’s Form 8-K dated August 3, 2007 and incorporated herein by this reference. | |
10.10* | Lydall, Inc. Annual Incentive Performance Program effective January 1, 2015, filed as Exhibit 10.35 to the Registrant's Annual Report on Form 10-K dated March 3, 2015 and incorporated herein by reference. | |
10.11 | Form of Indemnification Agreement between Lydall, Inc. and non-employee directors, filed as Exhibit 10.1 to the Registrant’s Form 8-K dated June 19, 2009 and incorporated herein by this reference. | |
10.12* | Amended and Restated Lydall 2003 Stock Incentive Compensation Plan, filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q dated May 2, 2011 and incorporated herein by this reference. | |
10.13* | Lydall 2012 Stock Incentive Plan, filed as Exhibit A to the Registrant’s Definitive Proxy Statement dated March 16, 2012 and incorporated herein by this reference. | |
10.14* | Form of Restricted Share Award Agreement to Non-Employee Directors (Under the Lydall 2012 Stock Incentive Plan), filed as Exhibit 10.9 to the Registrant’s Form 10-Q dated August 1, 2012 and incorporated herein by this reference. | |
10.15* | Form of Non-Qualified/Incentive Stock Option Agreement (Under the Lydall 2012 Stock Incentive Plan) for U.S. employees, filed as Exhibit 10.4 to the Registrant’s Form 10-Q dated August 1, 2012 and incorporated herein by this reference. | |
10.16* | Form of Restricted Stock Award Agreement (Under the Lydall 2012 Stock Incentive Plan) for U.S. Employees, filed as Exhibit 10.8 to the Registrant’s to the Registrant’s Form 10-Q dated August 1, 2012 and incorporated herein by this reference. | |
10.17* | Form of Non-Qualified Stock Option Agreement (Under the Lydall 2012 Stock Incentive Plan) for Netherland employees, filed as Exhibit 10.10 to the Registrant’s Form 10-Q dated August 1, 2012 and incorporated herein by this reference. |
10.18* | Form of Non-Qualified Stock Option Agreement (Under the Lydall 2012 Stock Incentive Plan) for French employees, filed as Exhibit 10.11 to the Registrant’s Form 10-Q dated August 1, 2012 and incorporated herein by this reference. | |
10.19* | Form of Non-Qualified Stock Option Agreement (Under the Lydall 2012 Stock Incentive Plan) for German employees, filed as Exhibit 10.12 to the Registrant’s Form 10-Q dated August 1, 2012 and incorporated herein by this reference. | |
10.20* | Form of Lydall, Inc. Performance Share Award Agreement (Three-Year Period) for U.S. employees, filed as Exhibit 10.18 to the Registrant's Annual Report on Form 10-K dated March 3, 2015 and incorporated herein by reference. | |
10.21* | Form of Lydall, Inc. Performance Share Award Agreement (Three-Year Period) for French employees, filed as Exhibit 10.6 to the Registrant’s Form 10-Q dated August 1, 2012 and incorporated herein by this reference. | |
10.22* | Form of Lydall, Inc. Performance Share Award Agreement (Three-Year Period) for German employees, filed as Exhibit 10.7 to the Registrant’s Form 10-Q dated August 1, 2012 and incorporated herein by this reference. | |
10.23* | Form of Lydall, Inc. Performance Share Award Agreement (One-Year Period), filed as Exhibit 10.3 to the Registrant’s Annual Report on Form 10-K dated February 26, 2010 and incorporated herein by this reference. | |
10.24 | Amended and Restated Credit Agreement, dated February 18, 2014, by and between Lydall, Inc., as borrower, and Bank of America, N.A., as Agent for the Lenders, filed as Exhibit 10.2 to the Registrant’s Form 8-K dated February 24, 2014 and incorporated herein by this reference, as further amended by Amendment No. 1 to the Amended and Restated Credit Agreement, dated May 5, 2015, filed as Exhibit 99.1 to the Registrant's Form 8-K dated May 6, 2015 and incorporated herein by reference. | |
10.25 | Amended and Restated Guaranty Agreement, dated February 18, 2014, by and among Lydall Thermal/Acoustical, Inc., Lydall Filtration/Separation, Inc., Lydall International, Inc., and Bank of America, N.A., filed as Exhibit 10.3 to the Registrant’s Form 8-K dated February 24, 2014 and incorporated herein by reference. | |
10.26 | Amended and Restated Security Agreement, dated February 18, 2014, by and between Lydall, Inc., and Bank of America, N.A., filed as Exhibit 10.4 to the Registrant’s Form 8-K dated February 24, 2014 and incorporated herein by reference, as further amended by that certain Amendment to the Amended and Restated Security Agreements, the Amended and Restated Domain Name Collateral Assignment and Security Agreement and Partial Release dated January 30, 2015, filed as Exhibit 10.34 to the Registrant's Annual Report on From 10-K dated March 3, 2015 and incorporated herein by reference. | |
10.27 | Amended and Restated Security Agreement, dated February 18, 2014, by and between Lydall Thermal/Acoustical, Inc., and Bank of America, N.A., filed as Exhibit 10.5 to the Registrant’s Form 8-K dated February 24, 2014 and incorporated herein by reference, as further amended by that certain Amendment to the Amended and Restated Security Agreements, the Amended and Restated Domain Name Collateral Assignment and Security Agreement and Partial Release dated January 30, 2015, filed as Exhibit 10.34 to the Registrant's Annual Report on From 10-K dated March 3, 2015 and incorporated herein by reference. | |
10.28 | Amended and Restated Security Agreement, dated February 18, 2014, by and between Lydall Filtration/Separation, Inc., and Bank of America, N.A. filed as Exhibit 10.6 to the Registrant’s Form 8-K dated February 24, 2014 and incorporated herein by reference. | |
10.29 | Amended and Restated Security Agreement, dated February 18, 2014, by and between Lydall International, Inc., and Bank of America, N.A., filed as Exhibit 10.7 to the Registrant’s Form 8-K dated February 24, 2014 and incorporated herein by reference. | |
10.30 | Amendment to the Amended and Restated Security Agreements, the Amended and Restated Domain Name Collateral Assignment and Security Agreement and Partial Release dated January 30, 2015 by and among Lydall, Inc., Lydall Thermal/Acoustical, Inc. and Bank of America, filed as Exhibit 10.34 to the Registrant's Annual Report on Form 10-K dated March 3, 2015 and incorporated herein by reference. | |
10.31* | Amendment No. 1 to the Agreement, dated February 24, 2016, between the Company and Chad A. McDaniel, amending that certain Employment Agreement dated May 8, 2013 (see Exhibit 10.5 of this Annual Report on Form 10-K), filed herewith. | |
10.32* | Amendment No. 1 to the Agreement, dated February 24, 2016, between the Company and Joseph A. Abbruzzi, amending that certain Employment Agreement dated March 31, 2014 (see Exhibit 10.6 of this Annual Report on Form 10-K), filed herewith. | |
10.33* | Amendment No. 1 to the Agreement, dated February 24, 2016, between the Company and James V. Laughlan, amending that certain Employment Agreement dated August 3, 2015 (see Exhibit 10.7 of this Annual Report on Form 10-K), filed herewith. |
10.34* | Amendment No. 1 to the Agreement, dated February 24, 2016, between the Company and Scott M. Deakin, amending that certain Employment Agreement dated August 21, 2015 (see Exhibit 10.8 of this Annual Report on Form 10-K), filed herewith. | |
14.1 | Lydall’s Code of Ethics and Business Conduct, as amended, and the supplemental Code of Ethics for the Chief Executive Officer, Senior Financial Officers and All Accounting and Financial Personnel, as amended, each can be accessed on Lydall’s website at www.lydall.com under the Corporate Governance section. | |
21.1 | List of subsidiaries of the Registrant, filed herewith. | |
23.1 | Consent of PricewaterhouseCoopers LLP, filed herewith. | |
24.1 | Power of Attorney, dated February 19, 2016 authorizing Scott M. Deakin to sign this Annual Report on Form 10-K on behalf of each member of the Board of Directors indicated therein, filed herewith. | |
31.1 | Certification Pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934 as principal executive officer, filed herewith. | |
31.2 | Certification Pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934 as principal executive officer, filed herewith. | |
32.1 | Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished herewith. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Management contract or compensatory plan. |
LYDALL, INC. | |||
February 24, 2016 | By: | /s/ Scott M. Deakin | |
Scott M. Deakin Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Signature | Title | Date | ||
/s/ Dale G. Barnhart | President, Chief Executive Officer and Director (Principal Executive Officer) | February 24, 2016 | ||
Dale G. Barnhart | ||||
/s/ Scott M. Deakin | Executive Vice President, Chief Financial Officer (Principal Financial Officer) | February 24, 2016 | ||
Scott M. Deakin | ||||
/s/ James V. Laughlan | Vice President, Chief Accounting Officer, and Treasurer (Principal Accounting Officer) | February 24, 2016 | ||
James V. Laughlan | ||||
/s/ Scott M. Deakin | February 24, 2016 | |||
Scott M. Deakin | ||||
Attorney-in-fact for: | ||||
Kathleen Burdett | Director | |||
W. Leslie Duffy | Chairman of the Board of Directors | |||
Matthew T. Farrell | Director | |||
Marc T. Giles | Director | |||
William D. Gurley | Director | |||
Suzanne Hammett | Director | |||
S. Carl Soderstrom, Jr. | Director |
/s/ PricewaterhouseCoopers LLP |
PricewaterhouseCoopers LLP |
Hartford, Connecticut |
February 24, 2016 |
For the years ended December 31, | |||||||||||
In thousands except per share data | 2015 | 2014 | 2013 | ||||||||
Net sales | $ | 524,505 | $ | 535,829 | $ | 397,969 | |||||
Cost of sales | 402,008 | 420,851 | 312,744 | ||||||||
Gross profit | 122,497 | 114,978 | 85,225 | ||||||||
Selling, product development and administrative expenses | 70,020 | 80,930 | 56,512 | ||||||||
Operating income | 52,477 | 34,048 | 28,713 | ||||||||
Gain on sale of business | (18,647 | ) | — | — | |||||||
Interest expense | 755 | 1,093 | 304 | ||||||||
Other (income) expense, net | (654 | ) | (701 | ) | 67 | ||||||
Income before income taxes | 71,023 | 33,656 | 28,342 | ||||||||
Income tax expense | 24,764 | 11,809 | 9,187 | ||||||||
Net income | $ | 46,259 | $ | 21,847 | $ | 19,155 | |||||
Earnings per common share: | |||||||||||
Basic | $ | 2.76 | $ | 1.31 | $ | 1.16 | |||||
Diluted | $ | 2.71 | $ | 1.28 | $ | 1.14 | |||||
Weighted average common shares outstanding | 16,746 | 16,662 | 16,570 | ||||||||
Weighted average common shares and equivalents outstanding | 17,084 | 17,003 | 16,866 |
For the years ended December 31, | |||||||||||
In thousands | 2015 | 2014 | 2013 | ||||||||
Net income | $ | 46,259 | $ | 21,847 | $ | 19,155 | |||||
Other comprehensive (loss) income: | |||||||||||
Change in pension plans, net of income taxes of $55, $1,595, and $4,028, respectively | (90 | ) | (2,603 | ) | 6,572 | ||||||
Foreign currency translation adjustments | (10,334 | ) | (12,714 | ) | 2,950 | ||||||
Total other comprehensive (loss) income, net of tax | (10,424 | ) | (15,317 | ) | 9,522 | ||||||
Comprehensive income | $ | 35,835 | $ | 6,530 | $ | 28,677 |
December 31, | |||||||
In thousands of dollars and shares | 2015 | 2014 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 75,909 | $ | 62,051 | |||
Accounts receivable, (net of allowance for doubtful receivables of $1,251 and $709, respectively) | 82,149 | 84,366 | |||||
Inventories | 46,530 | 51,241 | |||||
Taxes receivable | 4,194 | 4,539 | |||||
Prepaid expenses and other current assets | 10,521 | 11,109 | |||||
Total current assets | 219,303 | 213,306 | |||||
Property, plant and equipment, net | 114,433 | 115,357 | |||||
Goodwill | 16,841 | 21,943 | |||||
Other intangible assets, net | 5,399 | 7,841 | |||||
Deferred tax assets | 134 | 1,408 | |||||
Other assets, net | 2,150 | 1,915 | |||||
Total assets | $ | 358,260 | $ | 361,770 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 323 | $ | 615 | |||
Accounts payable | 42,470 | 49,325 | |||||
Accrued payroll and other compensation | 10,210 | 14,550 | |||||
Accrued taxes | 1,200 | 1,447 | |||||
Other accrued liabilities | 6,797 | 7,140 | |||||
Total current liabilities | 61,000 | 73,077 | |||||
Long-term debt | 20,156 | 40,315 | |||||
Deferred tax liabilities | 14,997 | 13,867 | |||||
Benefit plan liabilities | 14,222 | 19,142 | |||||
Other long-term liabilities | 2,660 | 2,770 | |||||
Commitments and Contingencies (Note 12) | |||||||
Stockholders’ equity: | |||||||
Preferred stock (par value $0.01 per share; authorized 500,000 shares; none issued or outstanding) (Note 7) | — | — | |||||
Common stock (par value $0.01 per share; authorized 30,000 shares; issued 24,733 and 24,631 shares, respectively) (Note 7) | 247 | 2,463 | |||||
Capital in excess of par value | 76,746 | 68,961 | |||||
Retained earnings | 288,358 | 242,099 | |||||
Accumulated other comprehensive loss | (34,585 | ) | (24,161 | ) | |||
Treasury stock, 7,592 and 7,312 shares of common stock, respectively, at cost | (85,541 | ) | (76,763 | ) | |||
Total stockholders’ equity | 245,225 | 212,599 | |||||
Total liabilities and stockholders’ equity | $ | 358,260 | $ | 361,770 |
For the years ended December 31, | |||||||||||
In thousands | 2015 | 2014 | 2013 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 46,259 | $ | 21,847 | $ | 19,155 | |||||
Adjustments to reconcile net income to net cash provided | |||||||||||
by operating activities: | |||||||||||
Gain on sale of business | (18,647 | ) | — | — | |||||||
Depreciation and amortization | 17,275 | 17,646 | 12,703 | ||||||||
Inventory step-up amortization | — | 2,053 | — | ||||||||
Long-lived asset impairment charge | 1,354 | — | — | ||||||||
Deferred income taxes | 3,585 | (1,477 | ) | 969 | |||||||
Stock based compensation | 2,827 | 2,787 | 1,763 | ||||||||
Pension settlement charge | — | 4,914 | — | ||||||||
Loss on disposition of property, plant and equipment | 288 | 241 | 359 | ||||||||
Accounts receivable | (2,749 | ) | (7,189 | ) | (4,101 | ) | |||||
Inventories | 479 | 4,539 | (3,046 | ) | |||||||
Taxes receivable | 276 | (4,129 | ) | (640 | ) | ||||||
Prepaid expenses and other assets | (1,337 | ) | (2,318 | ) | 161 | ||||||
Accounts payable | (4,886 | ) | 1,167 | (59 | ) | ||||||
Accrued payroll and other compensation | (3,416 | ) | 3,299 | (121 | ) | ||||||
Benefit plan liabilities | (4,778 | ) | (3,563 | ) | (684 | ) | |||||
Other, net | (420 | ) | 1,811 | 3,821 | |||||||
Net cash provided by operating activities | 36,110 | 41,628 | 30,280 | ||||||||
Cash flows from investing activities: | |||||||||||
Business acquisitions, net of cash acquired | — | (79,407 | ) | — | |||||||
Capital expenditures | (20,645 | ) | (13,971 | ) | (13,826 | ) | |||||
Proceeds from sale of business, net | 28,550 | — | — | ||||||||
Acquisition earn out payments | — | (111 | ) | (160 | ) | ||||||
Net cash provided by (used for) investing activities | 7,905 | (93,489 | ) | (13,986 | ) | ||||||
Cash flows from financing activities: | |||||||||||
Proceeds from borrowings | — | 60,000 | — | ||||||||
Debt repayments | (20,571 | ) | (20,646 | ) | (768 | ) | |||||
Common stock issued | 1,521 | 2,457 | 1,497 | ||||||||
Common stock repurchased | (8,701 | ) | (748 | ) | (6,617 | ) | |||||
Excess tax benefit on stock awards | 1,044 | 1,486 | 271 | ||||||||
Net cash (used for) provided by financing activities | (26,707 | ) | 42,549 | (5,617 | ) | ||||||
Effect of exchange rate changes on cash | (3,450 | ) | (4,044 | ) | 1,107 | ||||||
Increase (Decrease) in cash and cash equivalents | 13,858 | (13,356 | ) | 11,784 | |||||||
Cash and cash equivalents at beginning of period | 62,051 | 75,407 | 63,623 | ||||||||
Cash and cash equivalents at end of period | $ | 75,909 | $ | 62,051 | $ | 75,407 | |||||
Supplemental Schedule for Cash Flow Information | |||||||||||
Cash paid during the year for: | |||||||||||
Interest | $ | 632 | $ | 875 | $ | 214 | |||||
Income taxes | $ | 20,180 | $ | 14,679 | $ | 7,227 |
In thousands of dollars and shares | Common Stock Shares | Common Stock Amount | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Total Stockholders' Equity | |||||||||||||||||||
Balance at December 31, 2012 | 23,785 | $ | 2,379 | $ | 58,784 | $ | 201,097 | $ | (18,366 | ) | $ | (69,398 | ) | $ | 174,496 | |||||||||||
Net income | 19,155 | 19,155 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | 9,522 | 9,522 | ||||||||||||||||||||||||
Stock repurchased | (6,617 | ) | (6,617 | ) | ||||||||||||||||||||||
Stock issued under employee plans | 297 | 30 | 1,467 | 1,497 | ||||||||||||||||||||||
Excess tax benefit on stock awards | 271 | 271 | ||||||||||||||||||||||||
Stock based compensation expense | 1,511 | 1,511 | ||||||||||||||||||||||||
Stock issued to directors | 16 | 1 | 251 | 252 | ||||||||||||||||||||||
Balance at December 31, 2013 | 24,098 | 2,410 | 62,284 | 220,252 | (8,844 | ) | (76,015 | ) | 200,087 | |||||||||||||||||
Net income | 21,847 | 21,847 | ||||||||||||||||||||||||
Other comprehensive loss, net of tax | (15,317 | ) | (15,317 | ) | ||||||||||||||||||||||
Stock repurchased | (748 | ) | (748 | ) | ||||||||||||||||||||||
Stock issued under employee plans | 524 | 52 | 2,405 | 2,457 | ||||||||||||||||||||||
Excess tax benefit on stock awards | 1,486 | 1,486 | ||||||||||||||||||||||||
Stock based compensation expense | 2,535 | 2,535 | ||||||||||||||||||||||||
Stock issued to directors | 9 | 1 | 251 | 252 | ||||||||||||||||||||||
Balance at December 31, 2014 | 24,631 | 2,463 | 68,961 | 242,099 | (24,161 | ) | (76,763 | ) | 212,599 | |||||||||||||||||
Net Income | 46,259 | 46,259 | ||||||||||||||||||||||||
Other comprehensive loss, net of tax | (10,424 | ) | (10,424 | ) | ||||||||||||||||||||||
Stock repurchased | (8,778 | ) | (8,778 | ) | ||||||||||||||||||||||
Stock issued under employee plans | 91 | (2 | ) | 1,700 | 1,698 | |||||||||||||||||||||
Excess tax benefit on stock awards | 1,044 | 1,044 | ||||||||||||||||||||||||
Stock based compensation expense | 2,477 | 2,477 | ||||||||||||||||||||||||
Stock issued to directors | 10 | 350 | 350 | |||||||||||||||||||||||
Change in par value | (2,214 | ) | 2,214 | — | ||||||||||||||||||||||
Balance at December 31, 2015 | 24,732 | $ | 247 | $ | 76,746 | $ | 288,358 | $ | (34,585 | ) | $ | (85,541 | ) | $ | 245,225 |
December, 31 | |||||||
In thousands | 2015 | 2014 | |||||
Inventories, net of progress billings and reserves | $ | 9,220 | $ | 8,832 | |||
Prepaid expenses and other current assets, net | 266 | 30 | |||||
Total tooling related assets | $ | 9,486 | $ | 8,862 |
In thousands | ||||
Cash | $ | 7,493 | ||
Accounts Receivable | 26,779 | |||
Inventory | 25,046 | |||
Other current assets | 2,894 | |||
Property, plant and equipment | 38,780 | |||
Deferred Taxes | 2,501 | |||
Intangible assets (Note 5) | 5,596 | |||
Goodwill (Note 5) | 3,943 | |||
Total assets acquired | 113,032 | |||
Other liabilities | (18,002 | ) | ||
Deferred taxes | (8,130 | ) | ||
Total liabilities assumed | (26,132 | ) | ||
Net assets acquired | $ | 86,900 |
(Unaudited Pro Forma) | ||||||||
For The Years Ended December 31, | ||||||||
In thousands | 2014 | 2013 | ||||||
Net Sales | $ | 553,345 | $ | 525,134 | ||||
Net Income | $ | 26,302 | $ | 21,500 | ||||
Earnings per share: | ||||||||
Basic | $ | 1.58 | $ | 1.30 | ||||
Diluted | $ | 1.55 | $ | 1.27 |
December 31, | |||||||
In thousands | 2015 | 2014 | |||||
Raw materials | $ | 17,128 | $ | 21,248 | |||
Work in process | 14,670 | 15,753 | |||||
Finished goods | 15,048 | 15,348 | |||||
46,846 | 52,349 | ||||||
Less: Progress billings | (316 | ) | (1,108 | ) | |||
Total inventories | $ | 46,530 | $ | 51,241 |
Estimated Useful Lives | December 31, | ||||||||
In thousands | 2015 | 2014 | |||||||
Land | – | $ | 2,636 | $ | 2,773 | ||||
Buildings and improvements | 10-35 years | 55,887 | 56,562 | ||||||
Machinery and equipment | 5-25 years | 195,125 | 197,804 | ||||||
Office equipment | 2-8 years | 30,622 | 31,139 | ||||||
Vehicles | 3-6 years | 864 | 930 | ||||||
Assets under capital leases: | |||||||||
Land | – | 546 | 609 | ||||||
Buildings and improvements | 10-35 years | 4,798 | 5,345 | ||||||
290,478 | 295,162 | ||||||||
Accumulated depreciation | (185,356 | ) | (186,510 | ) | |||||
Accumulated amortization of capital leases | (2,829 | ) | (2,944 | ) | |||||
102,293 | 105,708 | ||||||||
Construction in progress | 12,140 | 9,649 | |||||||
Total property, plant and equipment, net | $ | 114,433 | $ | 115,357 |
In thousands | Performance Materials | Industrial Filtration | Thermal/ Acoustical Metals | Other Products and Services | Totals | ||||||||||||||
Goodwill | $ | 13,340 | $ | 3,943 | $ | 12,160 | $ | 5,787 | $ | 35,230 | |||||||||
Accumulated amortization/impairment | — | — | (12,160 | ) | (1,127 | ) | (13,287 | ) | |||||||||||
Balance at December 31, 2014 | 13,340 | 3,943 | — | 4,660 | 21,943 | ||||||||||||||
Goodwill | 12,898 | 3,943 | 12,160 | — | 29,001 | ||||||||||||||
Accumulated amortization/impairment | — | — | (12,160 | ) | — | (12,160 | ) | ||||||||||||
Balance at December 31, 2015 | $ | 12,898 | $ | 3,943 | $ | — | $ | — | $ | 16,841 |
In thousands | Performance Materials | Industrial Filtration | Other Products and Services | Totals | |||||||||||
Balance at January 1, 2014 | $ | 13,929 | $ | — | $ | 4,660 | $ | 18,589 | |||||||
Goodwill adjustment | — | 3,943 | — | 3,943 | |||||||||||
Currency translation adjustment | (589 | ) | — | — | (589 | ) | |||||||||
Balance at December 31, 2014 | 13,340 | 3,943 | 4,660 | 21,943 | |||||||||||
Goodwill adjustment | — | — | (4,660 | ) | (4,660 | ) | |||||||||
Currency translation adjustment | (442 | ) | — | — | (442 | ) | |||||||||
Balance at December 31, 2015 | $ | 12,898 | $ | 3,943 | $ | — | $ | 16,841 |
December 31, 2015 | December 31, 2014 | |||||||||||||||
In thousands | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Amortized intangible assets | ||||||||||||||||
License agreements | $ | 771 | $ | (771 | ) | $ | 818 | $ | (818 | ) | ||||||
Technology | 2,500 | (310 | ) | 2,500 | (143 | ) | ||||||||||
Customer Relationships | 2,412 | (411 | ) | 2,477 | (195 | ) | ||||||||||
Patents | 4,137 | (3,272 | ) | 6,037 | (3,274 | ) | ||||||||||
Other | 612 | (269 | ) | 691 | (252 | ) | ||||||||||
Total amortized intangible assets | $ | 10,432 | $ | (5,033 | ) | $ | 12,523 | $ | (4,682 | ) |
December 31, | |||||||||||
In thousands | Effective Rate | Maturity | 2015 | 2014 | |||||||
Revolver Loan, due January 31, 2019 | 1.42% | 2019 | $ | 20,000 | $ | 40,000 | |||||
Capital Lease, land and building, St. Nazaire, France | 5.44% | 2016 | 277 | 893 | |||||||
Capital Lease, manufacturing equipment, Hamptonville, North Carolina | 5.00% | 2017 | 9 | 37 | |||||||
Capital Lease, manufacturing equipment, Hamptonville, North Carolina | 1.65% | 2020 | 193 | — | |||||||
20,479 | 40,930 | ||||||||||
Less portion due within one year | (323 | ) | (615 | ) | |||||||
Total long-term debt | $ | 20,156 | $ | 40,315 |
December 31, | |||||||
In thousands | 2015 | 2014 | |||||
Change in benefit obligation: | |||||||
Net benefit obligation at beginning of year | $ | 50,827 | $ | 53,427 | |||
Interest cost | 2,066 | 2,348 | |||||
Actuarial loss (gain) | (2,430 | ) | 7,654 | ||||
Gross benefits paid | (2,382 | ) | (12,602 | ) | |||
Net benefit obligation at end of year | $ | 48,081 | $ | 50,827 | |||
Change in plan assets: | |||||||
Fair value of plan assets at beginning of year | $ | 33,275 | $ | 40,680 | |||
Actual return on plan assets | (1,106 | ) | 945 | ||||
Contributions | 5,626 | 4,252 | |||||
Gross benefits paid | (2,382 | ) | (12,602 | ) | |||
Fair value of plan assets at end of year | $ | 35,413 | $ | 33,275 | |||
Net benefit obligation in excess of plan assets | $ | (12,668 | ) | $ | (17,552 | ) | |
Balance sheet amounts: | |||||||
Noncurrent liabilities | $ | (12,668 | ) | $ | (17,552 | ) | |
Total liabilities | $ | (12,668 | ) | $ | (17,552 | ) | |
Amounts recognized in accumulated other comprehensive income, net of tax consist of: | |||||||
Net actuarial loss | $ | 17,313 | $ | 17,228 | |||
Net amount recognized | $ | 17,313 | $ | 17,228 |
December 31, | |||||||
In thousands | 2015 | 2014 | |||||
Projected benefit obligation | $ | 48,081 | $ | 50,827 | |||
Accumulated benefit obligation | $ | 48,081 | $ | 50,827 | |||
Fair value of plan assets | $ | 35,413 | $ | 33,275 |
December 31, | |||||||||||
In thousands | 2015 | 2014 | 2013 | ||||||||
Interest cost | $ | 2,066 | $ | 2,348 | $ | 2,453 | |||||
Expected return on plan assets | (2,360 | ) | (2,798 | ) | (2,691 | ) | |||||
Amortization of actuarial net loss | 897 | 725 | 1,069 | ||||||||
Pension settlement cost | — | 4,914 | — | ||||||||
Total net periodic benefit cost | $ | 603 | $ | 5,189 | $ | 831 |
Benefit Obligation | Net Cost | |||||||||||||
For the years ended December 31, | 2015 | 2014 | 2015 | 2014 | 2013 | |||||||||
Discount rate | 4.56 | % | 4.16 | % | 4.16 | % | 5.09 | % | 4.16 | % | ||||
Expected return on plan assets | 7.00 | % | 7.25 | % | 7.25 | % | 7.25 | % | 7.50 | % |
Target Allocation | Actual Allocation of Plan Assets December 31, | ||||||
Asset Category | 2016 | 2015 | 2014 | ||||
Equity securities: | |||||||
U.S. Equity | 22% - 60% | 42 | % | 43 | % | ||
Non-U.S. | 15% - 25% | 21 | % | 19 | % | ||
Emerging Markets | 3% - 9% | 6 | % | 6 | % | ||
Fixed income securities: | |||||||
U.S. Bond funds | 12% - 38% | 25 | % | 26 | % | ||
Non-U.S. Bond funds | 2% - 8% | 3 | % | 3 | % | ||
Real estate investment trusts | 0% - 8% | — | % | — | % | ||
Cash and cash equivalents | 0% - 5% | 3 | % | 3 | % |
December 31, 2015 | |||||||||||||||
In thousands | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Equity securities: | |||||||||||||||
U.S. Equity | $ | 14,789 | $ | — | $ | — | $ | 14,789 | |||||||
Non-U.S. | 7,356 | — | — | 7,356 | |||||||||||
Emerging Markets | 2,027 | — | — | 2,027 | |||||||||||
Fixed income securities: | |||||||||||||||
U.S. Bond funds | 8,915 | — | — | 8,915 | |||||||||||
Non-U.S. Bond funds | 1,034 | — | — | 1,034 | |||||||||||
Real estate investment trusts | 195 | — | — | 195 | |||||||||||
Cash and cash equivalents | 1,097 | — | — | 1,097 | |||||||||||
Total Assets at Fair Value | $ | 35,413 | $ | — | $ | — | $ | 35,413 |
December 31, 2014 | |||||||||||||||
In thousands | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Equity securities: | |||||||||||||||
U.S. Equity | $ | 14,272 | $ | — | $ | — | $ | 14,272 | |||||||
Non-U.S. | 6,432 | — | — | 6,432 | |||||||||||
Emerging Markets | 1,896 | — | — | 1,896 | |||||||||||
Fixed income securities: | |||||||||||||||
U.S. Bond funds | 8,528 | — | — | 8,528 | |||||||||||
Non-U.S. Bond funds | 917 | — | — | 917 | |||||||||||
Real estate investment trusts | 170 | — | — | 170 | |||||||||||
Cash and cash equivalents | 1,060 | — | — | 1,060 | |||||||||||
Total Assets at Fair Value | $ | 33,275 | $ | — | $ | — | $ | 33,275 |
In thousands | 2016 | 2017 | 2018 | 2019 | 2020 | 2020-2024 | |||||||||||||||||
Benefit payments | $ | 2,385 | $ | 2,443 | $ | 2,519 | $ | 2,655 | $ | 2,802 | $ | 14,704 |
2015 | 2014 | 2013 | ||||||
Risk-free interest rate | 1.8 | % | 1.6 | % | 1.7 | % | ||
Expected life | 5.5 years | 5.1 years | 5.2 years | |||||
Expected volatility | 43 | % | 46 | % | 65 | % | ||
Expected dividend yield | — | % | — | % | — | % |
Shares | Weighted-Average Exercise Price | Weighted- Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | ||||||||
Outstanding at December 31, 2014 | 609 | $ | 14.81 | ||||||||
Granted | 92 | $ | 36.74 | ||||||||
Exercised | (166) | $ | 10.21 | ||||||||
Forfeited/Cancelled | (72) | $ | 19.08 | ||||||||
Outstanding at December 31, 2015 | 463 | $ | 20.15 | 7.2 | $ | 7,213 | |||||
Options exercisable at December 31, 2015 | 241 | $ | 12.37 | 5.6 | $ | 5,569 | |||||
Expected to vest at December 31, 2015 | 209 | $ | 28.55 | 9.0 | $ | 1,556 |
In thousands except per share amounts | |||||
Outstanding Restricted Shares | Shares | Weighted-Average Grant-Date Fair Value | |||
Outstanding at December 31, 2014 | 459 | $ | 19.17 | ||
Granted | 72 | $ | 34.09 | ||
Vested | (41) | $ | 14.69 | ||
Forfeited/Cancelled | (147) | $ | 16.43 | ||
Outstanding at December 31, 2015 | 343 | $ | 24.01 | ||
Expected to vest at December 31, 2015 | 307 | $ | 25.88 |
Consolidated Net Sales | For the Years Ended December 31, | ||||||||||
(2) | (3) | ||||||||||
In thousands | 2015 | 2014 | 2013 | ||||||||
Performance Materials Segment: | |||||||||||
Filtration | $ | 62,716 | $ | 71,648 | $ | 64,752 | |||||
Thermal Insulation | 28,311 | 31,404 | 36,929 | ||||||||
Life Sciences Filtration | 10,451 | 12,814 | 10,320 | ||||||||
Performance Materials Segment net sales | 101,478 | 115,866 | 112,001 | ||||||||
Industrial Filtration Segment: | |||||||||||
Industrial Filtration (1) | 139,133 | 112,220 | — | ||||||||
Industrial Filtration net sales | 139,133 | 112,220 | — | ||||||||
Thermal/Acoustical Metals Segment: | |||||||||||
Metal parts | 141,117 | 145,135 | 135,833 | ||||||||
Tooling | 19,815 | 19,130 | 22,573 | ||||||||
Thermal/Acoustical Metals Segment net sales | 160,932 | 164,265 | 158,406 | ||||||||
Thermal/Acoustical Fibers Segment: | |||||||||||
Fiber parts | 135,595 | 124,458 | 105,876 | ||||||||
Tooling | 3,152 | 4,133 | 8,444 | ||||||||
Thermal/Acoustical Fibers Segment net sales | 138,747 | 128,591 | 114,320 | ||||||||
Other Products and Services: | |||||||||||
Life Sciences Vital Fluids | 1,671 | 19,682 | 17,175 | ||||||||
Other Products and Services net sales | 1,671 | 19,682 | 17,175 | ||||||||
Eliminations and Other (1) | (17,456 | ) | (4,795 | ) | (3,933 | ) | |||||
Consolidated Net Sales | $ | 524,505 | $ | 535,829 | $ | 397,969 |
(1) | Included in the Industrial Filtration segment and Eliminations and Other is $13.8 million and $1.0 million in intercompany sales to the T/A Fibers segment for the years ended December 31, 2015 and 2014, respectively. |
Operating Income | For the Years Ended December 31, | ||||||||||
(2) | (3) | ||||||||||
In thousands | 2015 | 2014 | 2013 | ||||||||
Performance Materials Segment | $ | 6,790 | $ | 9,706 | $ | 9,462 | |||||
Industrial Filtration Segment | 13,431 | 6,412 | — | ||||||||
Thermal/Acoustical Metals Segment | 15,517 | 13,823 | 14,088 | ||||||||
Thermal/Acoustical Fibers Segment | 37,086 | 29,167 | 21,486 | ||||||||
Other Products and Services: | |||||||||||
Life Sciences Vital Fluids | 118 | 1,582 | 778 | ||||||||
Corporate Office Expenses | (20,465 | ) | (26,642 | ) | (17,101 | ) | |||||
Consolidated Operating Income | $ | 52,477 | $ | 34,048 | $ | 28,713 |
Total Assets | December 31, | ||||||||||
(2) | (3) | ||||||||||
In thousands | 2015 | 2014 | 2013 | ||||||||
Performance Materials Segment | $ | 66,706 | $ | 71,325 | $ | 74,838 | |||||
Industrial Filtration Segment | 89,566 | 100,201 | — | ||||||||
Thermal/Acoustical Metals Segment | 111,195 | 106,210 | 104,908 | ||||||||
Thermal/Acoustical Fibers Segment | 38,881 | 33,109 | 30,176 | ||||||||
Other Products and Services | — | 11,580 | 11,866 | ||||||||
Corporate Office | 51,912 | 39,345 | 52,897 | ||||||||
Total Assets | $ | 358,260 | $ | 361,770 | $ | 274,685 |
Capital Expenditures | Depreciation and Amortization | ||||||||||||||||||||||
(2) | (3) | (2) | (3) | ||||||||||||||||||||
In thousands | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||
Performance Materials Segment | $ | 3,519 | $ | 4,124 | $ | 4,604 | $ | 4,499 | $ | 4,654 | $ | 4,667 | |||||||||||
Industrial Filtration Segment | 968 | 1,804 | — | 4,996 | 4,536 | — | |||||||||||||||||
Thermal/Acoustical Metals Segment | 11,494 | 8,544 | 6,027 | 4,233 | 4,578 | 4,777 | |||||||||||||||||
Thermal/Acoustical Fibers Segment | 4,807 | 3,296 | 1,887 | 2,400 | 2,166 | 2,217 | |||||||||||||||||
Other Products and Services | 22 | 574 | 243 | 45 | 804 | 588 | |||||||||||||||||
Corporate Office | 745 | 659 | 1,065 | 1,102 | 908 | 454 | |||||||||||||||||
Total | $ | 21,555 | $ | 19,001 | $ | 13,826 | $ | 17,275 | $ | 17,646 | $ | 12,703 |
(2) | Other Products and Services reports results for the period preceding the date of disposition of the Vital Fluids Life Sciences business on January 30, 2015. |
(3) | Industrial Filtration segment reports results for the period following the date of acquisition of February 20, 2014 through December 31, 2014. |
Net Sales | Long-Lived Assets | ||||||||||||||||||||||
In thousands | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||
United States (4),(5) | $ | 344,950 | $ | 345,864 | $ | 269,989 | $ | 76,502 | $ | 72,832 | $ | 48,787 | |||||||||||
France | 47,495 | 52,534 | 47,831 | 12,899 | 13,861 | 16,436 | |||||||||||||||||
Germany | 68,861 | 77,896 | 77,229 | 10,149 | 12,366 | 13,287 | |||||||||||||||||
United Kingdom (5) | 26,598 | 26,387 | — | 6,399 | 7,601 | — | |||||||||||||||||
China (5) | 33,885 | 29,401 | — | 9,953 | 11,225 | — | |||||||||||||||||
Other | 2,716 | 3,747 | 2,920 | 815 | 795 | 1,815 | |||||||||||||||||
Total | $ | 524,505 | $ | 535,829 | $ | 397,969 | $ | 116,717 | $ | 118,680 | $ | 80,325 |
(4) | Other Products and Services reports results for the period preceding the date of disposition of the Vital Fluids Life Sciences business on January 30, 2015. |
(5) | Industrial Filtration segment reports results for the period following the date of acquisition of February 20, 2014 through December 31, 2014. |
For the years ended December 31, | |||||||||||
In thousands | 2015 | 2014 | 2013 | ||||||||
Current: | |||||||||||
Federal | $ | 18,291 | $ | 8,069 | $ | 5,477 | |||||
State | 1,204 | 1,334 | 709 | ||||||||
Foreign | 1,684 | 3,883 | 2,032 | ||||||||
Total Current | 21,179 | 13,286 | 8,218 | ||||||||
Deferred: | |||||||||||
Federal | $ | 1,583 | $ | (42 | ) | $ | 1,609 | ||||
State | 1,696 | (1,626 | ) | (1,144 | ) | ||||||
Foreign | 306 | 191 | 504 | ||||||||
Total Deferred | 3,585 | (1,477 | ) | 969 | |||||||
Provision for income taxes | $ | 24,764 | $ | 11,809 | $ | 9,187 |
For the years ended December 31, | ||||||||
2015 | 2014 | 2013 | ||||||
Statutory federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes | 2.9 | 0.8 | 2.9 | |||||
Valuation allowances for deferred tax assets, including state | 1.3 | 1.3 | (1.8 | ) | ||||
Research and development credits | (1.5 | ) | (0.5 | ) | (1.1 | ) | ||
Capitalized transaction costs | — | 2.0 | — | |||||
Domestic production activities deduction | (1.6 | ) | (2.6 | ) | (2.7 | ) | ||
Foreign income taxed at lower rates | (1.3 | ) | (3.5 | ) | — | |||
Other | 0.1 | 2.6 | 0.1 | |||||
Effective income tax rate | 34.9 | % | 35.1 | % | 32.4 | % |
2015 | 2014 | ||||||||||||||
Deferred Tax Assets | Deferred Tax Assets | ||||||||||||||
In thousands | Current | Long-term | Current | Long-term | |||||||||||
Federal | $ | 3,684 | $ | — | $ | 3,399 | $ | — | |||||||
State | 147 | 134 | 711 | 1,408 | |||||||||||
Foreign | 782 | — | 1,504 | — | |||||||||||
Totals | $ | 4,613 | $ | 134 | $ | 5,614 | $ | 1,408 |
2015 | 2014 | ||||||||||||||
Deferred Tax Liabilities | Deferred Tax Liabilities | ||||||||||||||
In thousands | Current | Long-term | Current | Long-term | |||||||||||
Federal | $ | — | $ | 12,504 | $ | — | $ | 10,562 | |||||||
State | — | — | — | — | |||||||||||
Foreign | — | 2,493 | — | 3,305 | |||||||||||
Totals | $ | — | $ | 14,997 | $ | — | $ | 13,867 |
December 31, | |||||||
In thousands | 2015 | 2014 | |||||
Deferred tax assets: | |||||||
Accounts receivable | $ | 218 | $ | 211 | |||
Inventories | 741 | 884 | |||||
Net operating loss carryforwards | 4,213 | 4,992 | |||||
Other accrued liabilities | 2,745 | 3,341 | |||||
Pension | 3,684 | 7,295 | |||||
Tax Credits | 1,634 | 1,879 | |||||
Total deferred tax assets | 13,235 | 18,602 | |||||
Deferred tax liabilities: | |||||||
Intangible assets | 4,077 | 6,525 | |||||
Property, plant and equipment | 15,101 | 15,195 | |||||
Total deferred tax liabilities | 19,178 | 21,720 | |||||
Valuation allowance | 4,307 | 3,727 | |||||
Net deferred tax liabilities | $ | (10,250 | ) | $ | (6,845 | ) |
For the years ended December 31, | |||||||||||
In thousands | 2015 | 2014 | 2013 | ||||||||
United States | $ | 64,923 | $ | 27,463 | $ | 23,433 | |||||
Foreign | 6,100 | 6,193 | 4,909 | ||||||||
Total income before income taxes | $ | 71,023 | $ | 33,656 | $ | 28,342 |
In thousands | 2015 | 2014 | |||||
Unrecognized tax benefits at beginning of year | $ | 2,272 | $ | 1,864 | |||
Increases relating to positions taken in prior periods | — | 20 | |||||
Increases relating to current period | 49 | 388 | |||||
Decreases due to settlements with tax authorities | (336 | ) | — | ||||
Decreases due to lapse of statute of limitations | (328 | ) | — | ||||
Unrecognized tax benefits at end of year | $ | 1,657 | $ | 2,272 |
Payments due by period | |||||||||||
In thousands | Operating Lease Payments | Capital Lease Payments | Total | ||||||||
2016 | $ | 4,385 | $ | 326 | $ | 4,711 | |||||
2017 | 3,782 | 42 | 3,824 | ||||||||
2018 | 2,284 | 42 | 2,326 | ||||||||
2019 | 828 | 42 | 870 | ||||||||
2020 | 526 | 35 | 561 | ||||||||
Thereafter | 603 | — | 603 | ||||||||
Total | 12,408 | 487 | 12,895 | ||||||||
Interest on capital leases | — | (11 | ) | (11 | ) | ||||||
Total | $ | 12,408 | $ | 476 | $ | 12,884 |
For the years ended December 31, | ||||||||
In thousands | 2015 | 2014 | 2013 | |||||
Basic average common shares outstanding | 16,746 | 16,662 | 16,570 | |||||
Effect of dilutive options and restricted stock awards | 338 | 341 | 296 | |||||
Diluted average common shares outstanding | 17,084 | 17,003 | 16,866 |
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||||||||||||||||
In thousands except per share data | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Net sales | $ | 127,306 | $ | 125,226 | $ | 134,561 | $ | 148,793 | $ | 131,240 | $ | 134,227 | $ | 131,398 | $ | 127,583 | |||||||||||||||
Gross profit | $ | 27,700 | $ | 26,199 | $ | 33,889 | $ | 34,653 | $ | 31,691 | $ | 28,564 | $ | 29,217 | $ | 25,562 | |||||||||||||||
Net income | $ | 18,937 | $ | 3,716 | $ | 10,817 | $ | 8,240 | $ | 11,186 | $ | 4,158 | $ | 5,319 | $ | 5,733 | |||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||||
Basic | $ | 1.12 | $ | 0.22 | $ | 0.65 | $ | 0.50 | $ | 0.67 | $ | 0.25 | $ | 0.32 | $ | 0.34 | |||||||||||||||
Diluted | $ | 1.11 | $ | 0.22 | $ | 0.64 | $ | 0.49 | $ | 0.66 | $ | 0.24 | $ | 0.31 | $ | 0.34 |
In thousands | Foreign Currency Translation Adjustment | Defined Benefit Pension Adjustment | Total Accumulated Other Comprehensive (Loss) Income | ||||||||
Balance at December 31, 2012 | $ | 3,178 | $ | (21,544 | ) | $ | (18,366 | ) | |||
Other Comprehensive income | 2,950 | 5,909 | (a) | 8,859 | |||||||
Amounts reclassified from accumulated other comprehensive loss | — | 663 | (b) | 663 | |||||||
Balance at December 31, 2013 | $ | 6,128 | $ | (14,972 | ) | $ | (8,844 | ) | |||
Other Comprehensive loss | (12,714 | ) | (6,099 | ) | (a) | (18,813 | ) | ||||
Amounts reclassified from accumulated other comprehensive loss | — | 3,496 | (b) | 3,496 | |||||||
Balance at December 31, 2014 | $ | (6,586 | ) | $ | (17,575 | ) | $ | (24,161 | ) | ||
Other Comprehensive loss | (10,334 | ) | (637 | ) | (a) | (10,971 | ) | ||||
Amounts reclassified from accumulated other comprehensive loss | 547 | (b) | 547 | ||||||||
Balance at December 31, 2015 | $ | (16,920 | ) | $ | (17,665 | ) | $ | (34,585 | ) |
In thousands | Balance at January 1, | Charges to Costs and Expenses | Charges (Deductions) to Other Accounts | Deductions | Balance at December 31, | ||||||||||||||||
2015 | |||||||||||||||||||||
Allowance for doubtful receivables | $ | 709 | $ | 855 | $ | (53 | ) | 2 | $ | (260 | ) | 1 | $ | 1,251 | |||||||
Tax valuation allowances | 3,727 | 1,615 | (272 | ) | 2 | (763 | ) | 3 | 4,307 | ||||||||||||
2014 | |||||||||||||||||||||
Allowance for doubtful receivables | $ | 480 | $ | 384 | $ | (39 | ) | 2 | $ | (116 | ) | 1 | $ | 709 | |||||||
Tax valuation allowances | 3,315 | 1,120 | 193 | 2,4 | (901 | ) | 3 | 3,727 | |||||||||||||
2013 | |||||||||||||||||||||
Allowance for doubtful receivables | $ | 469 | $ | 60 | $ | 15 | 2 | $ | (64 | ) | 1 | $ | 480 | ||||||||
Tax valuation allowances | 3,587 | 855 | — | (1,127 | ) | 3 | 3,315 |
1. | Uncollected receivables written off and recoveries. |
2. | Foreign currency translation and other adjustments. |
3. | Reduction to income tax expense. |
4. | Adjustments relating to the acquisition of Industrial Filtration. |
By: | /S/ DALE G. BARNHART February 24, 2016 |
Dale G. Barnhart | Date |
By: | /S/ DALE G. BARNHART February 24, 2016 |
Dale G. Barnhart | Date |
By: | /S/ DALE G. BARNHART February 24, 2016 |
Dale G. Barnhart | Date |
By: | /S/ DALE G. BARNHART February 24, 2016 |
Dale G. Barnhart | Date |
1. | I have reviewed this annual report on Form 10-K of Lydall, 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. |
February 24, 2016 | /s/ Dale G. Barnhart | |
Dale G. Barnhart President and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Lydall, 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. |
February 24, 2016 | /s/ Scott M. Deakin | |
Scott M. Deakin Executive Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
February 24, 2016 | /s/ Dale G. Barnhart | |
Dale G. Barnhart President and Chief Executive Officer | ||
February 24, 2016 | /s/ Scott M. Deakin | |
Scott M. Deakin Executive Vice President and Chief Financial Officer |
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Document And Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Feb. 17, 2016 |
Jun. 30, 2015 |
|
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | LDL | ||
Entity Registrant Name | LYDALL INC /DE/ | ||
Entity Central Index Key | 0000060977 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 17,115,378 | ||
Entity Public Float | $ 482,323,396 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
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Income Statement [Abstract] | |||
Net sales | $ 524,505 | $ 535,829 | $ 397,969 |
Cost of sales | 402,008 | 420,851 | 312,744 |
Gross profit | 122,497 | 114,978 | 85,225 |
Selling, product development and administrative expenses | 70,020 | 80,930 | 56,512 |
Operating income | 52,477 | 34,048 | 28,713 |
Gain on sale of business | (18,647) | 0 | 0 |
Interest expense | 755 | 1,093 | 304 |
Other (income) expense, net | (654) | (701) | 67 |
Income before income taxes | 71,023 | 33,656 | 28,342 |
Income tax expense | 24,764 | 11,809 | 9,187 |
Net income | $ 46,259 | $ 21,847 | $ 19,155 |
Earnings per common share: | |||
Basic (in USD per share) | $ 2.76 | $ 1.31 | $ 1.16 |
Diluted (in USD per share) | $ 2.71 | $ 1.28 | $ 1.14 |
Weighted average common shares outstanding (in shares) | 16,746 | 16,662 | 16,570 |
Weighted average common shares and equivalents outstanding (in shares) | 17,084 | 17,003 | 16,866 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
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Statement of Comprehensive Income [Abstract] | |||
Net income | $ 46,259 | $ 21,847 | $ 19,155 |
Other comprehensive (loss) income: | |||
Change in pension plans, net of income taxes of $55, $1,595, and $4,028, respectively | (90) | (2,603) | 6,572 |
Foreign currency translation adjustments | (10,334) | (12,714) | 2,950 |
Total other comprehensive (loss) income, net of tax | (10,424) | (15,317) | 9,522 |
Comprehensive income | $ 35,835 | $ 6,530 | $ 28,677 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
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Statement of Comprehensive Income [Abstract] | |||
Change in pension plans, tax | $ 55 | $ 1,595 | $ 4,028 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful receivables | $ 1,251 | $ 709 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, issued (in shares) | 24,733,000 | 24,631,000 |
Treasury stock, shares (in shares) | 7,592,000 | 7,312,000 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | |
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Dec. 31, 2015 |
Dec. 31, 2014 |
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Statement of Cash Flows [Abstract] | ||
Non-cash capital expenditures | $ 5.9 | $ 5.0 |
Significant Accounting Policies |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies | Significant Accounting Policies Business — Lydall, Inc. and its subsidiaries (collectively, the “Company” or “Lydall”) design and manufacture specialty engineered filtration media, industrial thermal insulating solutions, automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications. On February 20, 2014, the Company acquired certain industrial filtration businesses ("Industrial Filtration") of Andrew Industries Limited, an Altham, United Kingdom based corporation. The Industrial Filtration business serves a global customer base in the manufacture of non-woven felt filtration media and filter bags used primarily in industrial air filtration applications including power, cement, asphalt, incineration, food and pharmaceutical. This business, which strengthened the Company’s position as an industry leading, global provider of filtration and engineered materials products, added complementary and new technologies and diversified the Company’s end markets and geographic base. Principles of consolidation — The Consolidated Financial Statements include the accounts of Lydall, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. Estimates and assumptions — The preparation of the Company’s Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Risks and uncertainties — Worldwide economic cycles and political changes affect the markets that the Company’s businesses serve and affect demand for Lydall’s products and impact profitability. Among other factors, disruptions in the global credit and financial markets, including diminished liquidity and credit availability, swings in consumer confidence and spending, unstable economic growth and fluctuations in unemployment rates has caused economic instability and can have a negative impact on the Company’s results of operations, financial condition and liquidity. Cash and cash equivalents — Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less at the date of purchase. Concentrations of credit risk — Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable. The Company places its cash and cash equivalents in high-quality financial institutions. Concentrations of credit risk with respect to trade accounts receivable are limited by the large number of customers comprising the Company’s customer base and their dispersion across many different industries and geographies. At December 31, 2015, Ford Motor Company ("Ford") represented 13.2% of total accounts receivable. No other customers accounted for more than 10.0% of total accounts receivable at December 31, 2015 and 2014. Foreign and export sales were 44.2% of the Company’s net sales in 2015, 46.2% in 2014, and 45.2% in 2013. Export sales primarily to Canada, Mexico, Asia and Europe were $52.5 million, $57.6 million, and $52.1 million in 2015, 2014, and 2013, respectively. The Company performs ongoing credit evaluations of its customers’ financial condition and generally does not require collateral. Sales to the automotive market, included in the Thermal/Acoustical Metals and Thermal/Acoustical Fibers segments, were 56.6% of the Company’s net sales in 2015, 54.1% in 2014, and 68.5% in 2013. Sales to Ford were 18.2%, 16.5%, and 20.0% of Lydall’s 2015, 2014, and 2013 net sales, respectively. Sales to Chrysler Group LLC ("Chrysler") accounted for 10.9% of Lydall's 2013 net sales. No other customers accounted for more than 10% of total net sales in 2015, 2014, and 2013. Inventories — Inventories are valued at lower of cost or market, cost being determined using the first-in, first-out (FIFO) cost method. Inventories in excess of requirements for current or anticipated orders have been written down to net realizable value. Pre-production design and development costs — The Company enters into contractual agreements with certain customers to design and develop molds, dies and tools (collectively, “tooling”). All such tooling contracts relate to parts that the Company will supply to customers under long-term supply agreements. Tooling costs are accumulated in work-in process inventory and are charged to operations as the related revenue from the tooling is recognized. Revenue is recognized as tooling is delivered and accepted by the customer. The Company also may progress bill on certain tooling being constructed. These billings are recorded as progress billings (a reduction of the associated work-in-process inventory) until the appropriate revenue recognition criteria have been met. Periodically, the Company enters into contractually guaranteed reimbursement arrangements as a mechanism to collect amounts due from customers from tooling sales. Under these arrangements, amounts due from tooling sales are collected as parts are delivered over the part supply arrangement, in accordance with the specific terms of the arrangement. The amounts due from the customer in such transactions are recorded in “Prepaid expenses and other current assets, net” or “Other assets, net” based upon the expected term of the reimbursement arrangement. The following tooling related assets were included in the Consolidated Balance Sheets as of December 31, 2015 and 2014:
Amounts included in “Prepaid expenses and other current assets, net” include the short-term portion of receivables due under contractually guaranteed reimbursement arrangements. Included in the inventory balance was an offset for progress billings of $0.3 million and $1.1 million at December 31, 2015 and 2014, respectively. Company owned tooling is recorded in “Property, plant and equipment, net” at December 31, 2015 and December 31, 2014. Property, plant and equipment — Property, plant, and equipment are stated at cost. Assets held under capital leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Property, plant and equipment, including property, plant and equipment under capital leases, are depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are depreciated on a straight-line basis over the term of the lease or the life of the asset, whichever is shorter. The cost and accumulated depreciation amounts applicable to assets sold or otherwise disposed of are removed from the asset and accumulated depreciation accounts and any net gain or loss is included in the Consolidated Statements of Operations. Expenses for maintenance and repairs are charged to expense as incurred. Goodwill and other intangible assets — Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired companies. Goodwill and other intangible assets with indefinite lives are not amortized but are subject to annual impairment tests. All other intangible assets are amortized over their estimated useful lives, which range from 4 to 14 years. In performing impairment tests, the Company considers discounted cash flows and other market factors as best evidence of fair value. There are inherent uncertainties and management judgment required in these analyses. Valuation of long-lived assets — The Company evaluates the recoverability of long-lived assets, or asset groups, whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Should such evaluations indicate that the related future undiscounted cash flows are not sufficient to recover the carrying values of the assets, such carrying values would be reduced to fair value and this adjusted carrying value would become the assets’ new cost basis. Fair value is determined primarily using future anticipated cash flows that are directly associated with, and that are expected to arise as a direct result of the use and eventual disposition of the asset, or asset group, as well as market conditions and other factors. There are inherent uncertainties and management judgment required in these analyses. Employer sponsored benefit plans — The Company recognizes the funded status of its domestic defined benefit pension plan. Net benefit obligations are calculated based on actuarial valuations using key assumptions related to discount rates, mortality rates and expected return on plan assets. Derivative instruments — Derivative instruments are measured at fair value and recognized as either assets or liabilities on the Consolidated Balance Sheet in either current or non-current other assets or other accrued liabilities or other long-term liabilities depending upon maturity and commitment. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in the Consolidated Statement of Operations. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the hedge transaction affects earnings. In general, the types of risks being hedged by the Company are related to the variability of future cash flows caused by changes in foreign currency exchange rates and hedging the impact of variability of foreign exchange rates on recorded intercompany assets or liabilities. Lydall’s objective for entering into derivative instruments has always been for risk management purposes. The Company does not engage in derivative instruments for speculative purposes. Lydall has historically not been a party to a significant number of derivative instruments. Revenue recognition — The Company recognizes revenue (1) once evidence of an arrangement exists; (2) product delivery has occurred; (3) pricing is fixed or determinable; and (4) collection is reasonably assured. The four criteria required to recognize revenue are considered to be met, and the passage of title to the customer occurs, at the respective FOB point and, therefore, revenue is recognized at that time. The Company’s standard sales and shipping terms are FOB shipping point, therefore, substantially all revenue is recognized upon shipment. However, the Company conducts business with certain customers on FOB destination terms and in these instances revenue is recognized upon receipt by the customer. The Company generally does not provide specific customer inspection or acceptance provisions in its sales terms, with the exception of tooling sales discussed in “Pre-production design and development costs” above. Sales returns and allowances are recorded as identified or communicated by the customer and internally approved. The Company does not provide customers with general rights of return for products sold; however, in limited circumstances, the Company will allow sales returns and allowances from customers if the products sold do not conform to specifications. Shipping and handling costs consist primarily of costs incurred to deliver products to customers and internal costs related to preparing products for shipment and are recorded in cost of sales. Amounts billed to customers as shipping and handling are classified as revenue. Research and development — Research and development costs are charged to expense as incurred and amounted to $8.5 million in 2015, $9.0 million in 2014, and $7.6 million in 2013. Research and development costs were primarily comprised of development personnel salaries, prototype material costs and testing and trials of new products. Earnings per share — Basic earnings per common share are equal to net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are equal to net income divided by the weighted average number of common shares outstanding during the period, including the effect of stock options and stock awards, if such effect is dilutive. Income taxes — The provision for income taxes is based upon income reported in the accompanying Consolidated Financial Statements. Deferred income taxes reflect the impact of temporary differences between the amounts of income and expense recognized for financial reporting purposes and such amounts recognized for tax purposes. In the event the Company was to determine that it would not be able to realize all or a portion of its deferred tax assets in the future, the Company would record a valuation allowance through a charge to income in the period that such determination was made. Conversely, if the Company was to determine that it would be able to realize its deferred tax assets in the future in excess of the net carrying amounts, the Company would decrease the recorded valuation allowance and record an increase to income in the period that such determination was made. Translation of foreign currencies — Assets and liabilities of foreign subsidiaries are translated at exchange rates prevailing on the balance sheet date. Revenues and expenses are translated at average exchange rates prevailing during the period. Any resulting translation gains or losses are reported in other comprehensive income (loss). Stock options and share grants — The Company accounts for awards of equity instruments under the fair value method of accounting and recognizes such amounts in the Consolidated Statements of Operations. The Company recognizes expense on a straight-line basis over the vesting period of the entire award. Stock-based compensation expense includes the estimated effects of forfeitures, and such estimates of forfeitures are adjusted over the requisite service period to the extent actual forfeitures differ, or are expected to differ, from such estimates. The effect of changes in estimated forfeitures is recognized in the period of change and also impacts the amount of expense to be recognized in future periods. The Company estimates the fair value of option grants based on the Black Scholes option-pricing model. Expected volatility and expected term are based on historical information. The Company believes that its future volatility and expected term are not likely to materially differ from the Company’s historical stock price volatility and historical exercise data, respectively. Compensation expense for all restricted stock awards is recorded based on the market value of the stock on the grant date and recognized as expense over the vesting period of the award. Compensation expense for performance-based restricted stock is also impacted by the probability of achieving the performance targets. Recently Adopted Accounting Standards Effective January 1, 2015, the Company adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The Company evaluated the impact the adoption of ASU 2014-08 had on the Company's consolidated financial statements and disclosures related to the January 2015 sale of its Life Sciences Vital Fluids business and determined that the sale of this business did not qualify as a discontinued operation. |
Acquisition and Divestiture |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition and Divestiture | Acquisition and Divestiture Divestiture On January 30, 2015, the Company sold all of the outstanding shares of common stock of its Life Sciences Vital Fluids business, reported as Other Products and Services, for a cash purchase price of $30.1 million. The disposition was completed pursuant to a Stock Purchase and Sale Agreement, dated January 30, 2015, by and among the Company, and the buyer. The Company recognized a pre-tax gain on the sale of $18.6 million, reported as non-operating income in the first quarter of 2015. Net of income taxes, the Company reported a gain on sale of $11.8 million. In accordance with the revised accounting guidance for reporting discontinued operations, the Company did not report Life Sciences Vital Fluids as a discontinued operation as it would not be considered a strategic shift in Lydall's business. Accordingly, the operating results of Life Sciences Vital Fluids are included in the operating results of the Company through the sale date and in all periods presented in 2014. Acquisition On February 20, 2014, the Company completed the acquisition of certain industrial filtration businesses of Andrew Industries Limited, an Altham, United Kingdom based corporation. The Industrial Filtration business serves a global customer base in the manufacture of non-woven felt filtration media and filter bags used primarily in industrial air filtration applications including power, cement, asphalt, incineration, food and pharmaceutical. This business, which strengthened the Company’s position as an industry leading, global provider of filtration and engineered materials products, added complementary and new technologies and diversified the Company’s end markets and geographic base. The Company acquired the Industrial Filtration business for $86.9 million in cash (including cash acquired of $7.5 million and a post-closing adjustment payment of $0.2 million to Andrew Industries Limited) and with no debt being acquired. The purchase price was financed with a combination of cash on hand and $60.0 million of borrowings through the Company’s amended $100 million credit facility. The following table summarizes the fair values of identifiable assets acquired and liabilities assumed at the date of the acquisition:
The following table reflects the unaudited pro forma operating results of the Company for years ended December 31, 2014 and December 31, 2013, which give effect to the acquisition of Industrial Filtration as if it had occurred on January 1, 2013. The pro forma information includes the historical financial results of the Company and Industrial Filtration. The pro forma results are not necessarily indicative of the operating results that would have occurred had the acquisition been effective January 1, 2013, nor are they intended to be indicative of results that may occur in the future. The pro forma information does not include the effects of any synergies related to the acquisition.
Pro forma earnings during the year ended December 31, 2014 were adjusted to exclude non-recurring items such as acquisition-related costs of $2.6 million and expense related to the fair value adjustment to inventory of $2.1 million, and to include additional amortization of the acquired Industrial Filtration intangible assets recognized at fair value in purchase accounting as well as additional interest expense associated with borrowings under the Company’s Amended Credit Facility. No amount is included in the pro forma earnings during the year ended December 31, 2014 related to inventory fair value adjustments which would have been recognized in cost of sales as the corresponding inventory would have been completely sold during 2013. Pro forma earnings during the year ended December 31, 2013 were adjusted to include acquisition-related costs of $2.6 million and expense of $2.6 million related to the amortization of the fair value adjustments to inventory and additional amortization of the acquired Industrial Filtration intangible assets recognized at fair value in purchase accounting as well as $0.9 million of interest expense associated with borrowings under the Company’s Amended Credit Facility. Pro forma earnings during the year ended December 31, 2013 were adjusted to exclude acquisition-related costs of $1.2 million from 2013 which would have been included in the year ended December 31, 2012 if the acquisition had been effective January 1, 2013. |
Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories as of December 31, 2015 and 2014 were as follows:
Included in work in process is gross tooling inventory of $9.5 million and $9.9 million at December 31, 2015 and 2014, respectively. Tooling inventory, net of progress billings, was $9.2 million and $8.8 million at December 31, 2015 and 2014, respectively. |
Property, Plant and Equipment, Net |
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Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment as of December 31, 2015 and 2014 were as follows:
Depreciation expense was $16.4 million in 2015, $16.7 million in 2014, and $12.1 million in 2013. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Gross and net carrying amounts of goodwill at December 31, 2015 and 2014 were as follows:
The changes in the carrying amounts of goodwill in 2014 and 2015 were as follows:
Goodwill Associated with Acquisitions and Divestitures The goodwill adjustment in 2015 associated with Other Products and Services of $4.7 million was the result of the sale of the Company's Life Sciences Vital Fluids business on January 30, 2015. The goodwill associated with the Industrial Filtration segment results from the acquisition of the Industrial Filtration business on February 20, 2014. The amount allocated to goodwill is reflective of the benefits the Company expects to realize from the entrance into new global markets and Industrial Filtration's assembled workforce. None of the recognized goodwill is deductible for income tax purposes. Goodwill Impairment Testing During the fourth quarter of 2015, the Company performed its annual impairment analysis of the $12.9 million of goodwill in the Performance Materials reporting unit (PM reporting unit) and $3.9 million in the Industrial Filtration reporting unit (IF reporting unit). After considering changes in assumptions used in the Company's most recent quantitative annual testing, including the capital markets environment, economic conditions, industry trends, changes in results of operations, and other factors, the Company concluded it was necessary to perform the two-step impairment test for the PM reporting unit. As a result of testing, the Company concluded that the PM reporting unit, with $12.9 million of goodwill, had an estimated fair value which exceeded its carrying value by greater than 50%, and as a result, step two of the impairment test was not required. The Company used both the income approach and market approach in performing step one of the impairment analysis to estimate the fair value of the reporting unit. The income approach involved determining the present value of future cash flows from the reporting unit’s projected financial results from 2016 - 2018 and the projected cash flows beyond that three year period computed as the terminal value. The Company believes the income approach was appropriate because it provided a fair value estimate based upon the reporting unit’s expected long-term operations and cash flow performance. In applying the market approach, valuation multiples were derived from historic operating data of selected guideline companies, which were evaluated and adjusted, if necessary. The valuation multiples were then applied to the appropriate operating data of the reporting unit to arrive at an indication of fair value. The Company believes the market approach was appropriate because it provided a fair value using multiples from companies with operations and economic characteristics similar to its reporting unit. The Company used the qualitative method to analyze the goodwill for the IF reporting unit, which was acquired in February 2014. When considering capital markets environment, economic conditions, industry trends, results of operations, and other factors the Company determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount. Other Intangible Assets The table below presents the gross carrying amount and, as applicable, the accumulated amortization of the Company’s acquired intangible assets other than goodwill included in “Other intangible assets, net” in the Consolidated Balance Sheets as of December 31, 2015 and 2014:
During 2014, the Company recognized $5.6 million of intangible assets as a result of the Industrial Filtration acquisition, including $2.5 million in both technology and customer relationships and $0.6 million in other. As of December 31, 2015, the weighted average useful life of the Industrial Filtration intangible assets was approximately 11 years. Amortization of all intangible assets for the years ended December 31, 2015, 2014, and 2013 was $0.8 million, $0.9 million, and $0.4 million, respectively. Estimated amortization expense for intangible assets is expected to be $0.6 million for each of the years ending December 31, 2016 through 2018, and $0.5 million for the years ended December 31, 2019 and 2020. As of December 31, 2015, the weighted average useful life of intangible assets was approximately 10 years. Impairment of Long-Lived Assets During the fourth quarter of 2015, the Company performed an impairment analysis for long-lived assets at the Company’s DSM Solutech B.V. (“Solutech”) operation, included in the Performance Materials segment, as a result of indicators of possible impairment. During 2015, Solutech reported a cash flow loss which was caused by the delay in commercialization of certain Solutech products to the market place by Solutech’s customers. As a result of these negative cash flows, combined with historical operating losses, and a reduction in the expected amount of future cash flows of Solutech, the Company determined that it was appropriate to test the Solutech asset group for recoverability in the fourth quarter of 2015. Patents, with a remaining useful life of 8 years, and machinery and equipment primarily comprise the carrying value of the asset group of $3.2 million. To determine the recoverability of the Solutech asset group the Company completed an undiscounted cash flow analysis and compared it to the asset group carrying value. This analysis was primarily dependent on the increase in net sales over the period when the business has technological exclusivity provided by its patents. Future cash flows are dependent on the success of commercialization efforts of Solutech products by OEMs, the quality of Solutech products and technology advancements and management’s ability to manage costs. The impairment test concluded that the Solutech asset group was not recoverable as the resulting undiscounted cash flows were less than their carrying amount. Accordingly, the Company estimated the fair value of the Solutech long-lived assets to determine the impairment amount. Determining fair value is judgmental in nature and requires the use of significant estimates and assumptions considered to be Level 3 inputs including royalty rates, long-term growth rates and discount rates. To determine the fair value of its patents, the Company used the relief from royalty method, which is a form of the income approach, which focused on the level of royalty payments that the user of an intangible asset would have to pay a third party for the use of the asset if it were not owned by the user. Under this approach, revenue associated with the associated technology was projected over the expected remaining useful life of the asset, with a royalty rate applied to the expected revenue. The estimated fair value of the patents was below its carrying value. To determine the estimated fair value of its machinery and equipment, the Company used the cost approach. Under the cost approach, the determination of fair value considered the replacement cost of the assets with adjustments in value for physical deterioration, functional obsolescence, and economic obsolescence, all Level 3 inputs. The estimated fair value of the machinery and equipment exceeded its carrying value, resulting in no adjustment to the machinery and equipment. As a result of the Company’s fair value estimates, the Company adjusted the carrying value of the patents to $0.7 million and recorded an impairment charge of $1.4 million during the quarter ended December 31, 2015. This charge was recorded in the Company’s Performance Materials segment as part of selling, product development and administrative expenses. |
Long-term Debt and Financing Arrangements |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt and Financing Arrangements | Long-term Debt and Financing Arrangements On February 18, 2014, the Company amended and restated its $35.0 million senior secured domestic revolving credit facility (as further amended May 5, 2015, “Amended Credit Facility”) with a financial institution and two additional lenders, increasing the available borrowing from $35 million to $100 million. The Amended Credit Facility is secured by substantially all of the assets of the Company. The maturity date for the Amended Credit Facility is January 31, 2019, at which time amounts outstanding under the Amended Credit Facility are due and payable. The Company entered into this Amended Credit Facility in part to fund a majority of the purchase price of the Industrial Filtration acquisition. Under the terms of the Amended Credit Facility, the lenders are providing a $100 million revolving credit facility to the Company, under which the lenders may make revolving loans and issue letters of credit to or for the benefit of the Company and its subsidiaries. The Amended Credit Facility may be increased by an aggregate amount not to exceed $50 million through an accordion feature, subject to specified conditions. The Amended Credit Facility contains a number of affirmative and negative covenants, including financial and operational covenants. The Company is required to meet a minimum interest coverage ratio. The interest coverage ratio requires that, at the end of each fiscal quarter, the ratio of consolidated EBIT to Consolidated Interest Charges, both as defined in the Amended Credit Facility, may not be less than 2.0 to 1.0 for the immediately preceding 12 month period. In addition, the Company must maintain a Consolidated Leverage Ratio, as defined in the Amended Credit Facility, as of the end of each fiscal quarter of no greater than 3.0 to 1.0. The Company must also meet minimum consolidated EBITDA as of the end of each fiscal quarter for the preceding 12 month period of $30.0 million. The Company was in compliance with all covenants during 2015 and at December 31, 2015. Interest is charged on borrowings at the Company’s option of either: (i) Base Rate plus the Applicable Rate, or (ii) the Eurodollar Rate plus the Applicable Rate. The Base Rate is a fluctuating rate equal to the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate as set by Bank of America, and (c) the Eurocurrency Rate plus 1.00%. The Eurocurrency Rate means (i) if denominated in LIBOR quoted currency, a fluctuating LIBOR per annum rate equal to the London Interbank Offered Rate; (ii) if denominated in Canadian Dollars, the rate per annum equal to the Canadian Dealer Offered Rate; or (iii) the rate per annum as designated with respect to such alternative currency at the time such alternative currency is approved by the Lenders. The Applicable Rate is determined based on the Company’s Consolidated Leverage Ratio (as defined in the Amended Credit Agreement). The Applicable Rate added to the Base Rate Committed Loans ranges from 15 basis points to 100 basis points, and the Applicable Rate added to Eurocurrency Rate Committed Loans and Letters of Credit ranges from 75 basis points to 175 basis points. The Company pays a quarterly fee ranging from 20 basis points to 30 basis points on the unused portion of the $100 million available under the Amended Credit Agreement. At December 31, 2015, the Company had borrowing availability of $78.1 million under the Amended Credit Facility net of $20.0 million of borrowings outstanding and standby letters of credit outstanding of $1.9 million. The Company has a capital lease agreement for the land and building at the St. Nazaire, France operating facility, included in the Thermal/Acoustical Metals segment, requiring monthly principal and interest payments through 2016. The capital lease provides an option for the Company to purchase the land and building at the end of the lease for a nominal amount. Total outstanding debt consists of:
As of December 31, 2015, total debt maturing in 2016 was $0.3 million and debt maturing in 2019 was $20.0 million. There was minimal debt maturing in 2017, 2018 and 2020. The weighted average interest rate on long-term debt was 1.3% for the year ended December 31, 2015, compared with 1.5% and 5.4% for the years ended December 31, 2014 and 2013, respectively. The fair values of the Company’s long-term debt are determined using discounted cash flows based upon the Company’s estimated current interest cost for similar type borrowings or current market value, which falls under Level 2 of the fair value hierarchy. The carrying values of the long-term debt approximate fair market value. |
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Equity [Abstract] | |
Capital Stock | Capital Stock At the 2015 Annual Meeting of Stockholders in April 2015, the Company's stockholders approved an amendment to the Company's Restated Articles of Incorporation as detailed below: Preferred Stock — The Company decreased the par value of its preferred stock from $1.00 to $0.01. None of the 500,000 authorized shares have been issued. Common Stock — The Company decreased the per share par value of its common stock from $0.10 to $0.01. During the second quarter of 2015, the Company reclassified approximately $2.2 million from common stock to capital in excess of par value as a result of the change in par value. As of December 31, 2015, 6,289 Lydall stockholders of record held 17,140,426 shares of Common Stock. Dividend policy — The Company does not pay a cash dividend on its common stock. The Company’s Amended Credit Facility does not place any restrictions on cash dividend payments, so long as the payments do not place the Company in default. |
Employer Sponsored Benefit Plan |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employer Sponsored Benefit Plan | Employer Sponsored Benefit Plan The Company maintains a domestic defined benefit pension plan, which covers certain domestic Lydall employees, is noncontributory and benefits are based on either years of service or eligible compensation paid while a participant is in a plan. The plan has been closed to new employees for several years and benefits under the pension plan are no longer accruing. The Company’s funding policy for its domestic defined benefit pension plan is to fund not less than the ERISA minimum funding standard and not more than the maximum amount that can be deducted for federal income tax purposes. Plan assets and benefit obligations of the domestic defined benefit pension plan are as follows:
At December 31, 2015, in addition to the accrued benefit liability of $12.7 million recognized for the Company’s domestic defined benefit pension plan, the Company also had foreign regulatory labor agreements with an accrued benefit liability of $1.4 million and accumulated other comprehensive loss, net of tax, of $0.4 million. At December 31, 2014, in addition to the accrued benefit liability of $17.6 million recognized for the Company’s domestic defined benefit pension plan, the Company also had an accrued benefit liability of $1.4 million and accumulated other comprehensive loss, net of tax, related to foreign regulatory labor agreements of $0.4 million. The domestic defined benefit pension plan liability, net of tax, included in other comprehensive income increased by $0.1 million for the year ended December 31, 2015 and increased by $2.4 million for the year ended December 31, 2014. These changes are mainly due to changes in pension assumptions, primarily the discount and mortality rates. Aggregated information for the domestic defined benefit pension plan with an accumulated benefit obligation in excess of plan assets is provided in the tables below:
Components of net periodic benefit cost for the domestic pension plan:
On April 1, 2014, the Company offered a voluntary one-time lump sum payment option to certain former U.S. employees who were vested defined benefit plan participants and not currently receiving monthly payments from the Company's domestic pension plan. The election period for this voluntary offer ended in the second quarter of 2014. Approximately 62% of eligible participants elected to receive a one-time lump sum payout resulting in $10.3 million being paid out of domestic pension plan assets in July 2014. This payout required a re-measurement of the domestic pension plan and a partial plan settlement charge, which resulted in a non-cash pre-tax loss of $4.9 million in net periodic pension benefit expense, which was recorded in selling, product development and administrative expenses in the third quarter of 2014, with an offset to accumulated other comprehensive loss in shareholder’s equity, net of $1.9 million tax benefit. The non-cash charge was required to accelerate the recognition of a portion of the previously unrecognized actuarial losses in the domestic pension plan. It is estimated that $0.9 million of actuarial net loss will be amortized from accumulated other comprehensive loss into net periodic benefit costs for the domestic pension plan in 2016. The major assumptions used in determining the year-end benefit obligation and annual net cost for the domestic pension plan are presented in the following table:
The year-end benefit obligation decreased primarily due to an increase in the assumed discount rate from 4.16% as of December 31, 2014 to 4.56% as of December 31, 2015. In 2014, the Society of Actuaries issued an updated set of mortality tables and improvement scale collectively known as RP-2014 and MP-2014, respectively. The Company reviewed the findings and recommendations of these reports with their actuary. Based on that review, the Company elected to utilize the Society of Actuaries' base mortality scale RP-2014 with the BB-2D mortality improvement scale, as the Company believes the BB-2D mortality improvement table more accurately reflects recent rates of mortality improvement since 2006 for the general population compared to the MP-2014 table. Actuarial losses, related to the change in mortality tables at December 31, 2014, increased the pension plan liability $2.4 million and decreased other comprehensive income net-of-tax by $1.5 million. Plan Assets The domestic defined benefit pension plan is administered by an Administrative Committee and an Investment Committee, which are appointed by the Board of Directors. The Investment Committee’s responsibilities are to establish a funding policy for the Lydall Pooled Pension Investment Trust (“the Trust”) and to appoint and oversee the investment advisors responsible for the Trust’s investments. The Investment Committee is a named fiduciary under the plan with respect to management of the Trust’s investments. The assets of the domestic defined benefit pension plan are invested in the Trust for the purpose of investment diversification. In determining the expected return on plan assets, the Investment Committee considers the relative weighting of plan assets, the historical performance of marketable debt and equity securities and economic and other indicators of future performance. Investment management objectives include maintaining an adequate level of diversification to balance market risk and to provide sufficient liquidity for near-term payments of benefits accrued under the domestic pension plan and to pay the expenses of administration. The long-term investment objective of the Trust is to achieve a total return equal to or greater than the Trust’s actuarially assumed rate of return, currently 7.00%. Though it is the intent of the Investment Committee to achieve income and growth, that intent does not include taking extraordinary risks or engaging in investment activities not commonly considered prudent under the standards imposed by ERISA. The Investment Committee defines risk as the probability of not meeting the Trust’s objectives and the probability of not meeting the Trust’s liability requirements. The allowable investments include: exchange-traded stocks, over-the-counter common and preferred stocks, warrants, rights, convertible securities, depository receipts and shares, trust certificates, limited partnership interests, shares of other investment companies, real estate investment trusts and equity participation, obligations of foreign governments, obligations of international agencies, obligations issued by the U.S. government, mortgage related and other asset-backed securities, corporate debt securities, inflation-index bonds issued by corporations, structured notes, delayed funding loans and revolving credit facilities, bank certificates of deposit, debt securities issued by state of local governments, and money market funds. Prohibited investments include: venture capital investments, direct investment in real estate properties, CMO derivatives, hedge funds, Lydall, Inc. securities, and commodities. The Investment Committee’s target asset allocation seeks to control risk through portfolio diversification and takes into account, among other factors, objectives discussed above, current funding levels, cash flow conditions and economic and industry trends. Equity securities include investments in large-cap and mid/small-cap companies primarily located in the United States, non-U.S. equities, and emerging market equities. Fixed income securities include fixed income mutual bond funds and common and collective funds. The following table presents the target allocation of pension plan assets for 2016 and the actual allocation of plan assets as of December 31, 2015 and 2014 by major asset category:
The investments of the Trust are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The asset’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 need to maximize the use of observable inputs and minimize the use of unobservable inputs. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Equity securities, which consist primarily of common stocks, are valued at the closing price reported in the active market in which individual securities are traded. Short-term cash funds, mutual funds, bond funds and real estate investment trusts are valued at the net asset value of shares held by the plan at year end as reported in the active market in which the funds are traded. The Trust’s purchases and sales of securities are recorded on a trade date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. The following table sets forth by level, within the fair value hierarchy, the Trust’s assets at fair value as of December 31, 2015 and December 31, 2014:
Estimated Future Contributions and Benefit Payments The Company expects to contribute approximately $3.0 million to $4.0 million in cash to its domestic defined benefit pension plan in 2016. Estimated future benefit payments for the next 10 years are as follows:
Employee Savings Plan The Company also sponsors a 401(k) Plan. Employer contributions to this plan amounted to $2.3 million in 2015, $2.1 million in 2014, and $1.7 million in 2013. Matching contributions by the Company are made on employee pretax contributions up to five percent of compensation, with the first three percent matched at 100% and the next two percent matched at 50%. |
Equity Compensation Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Compensation Plans | Equity Compensation Plans As of December 31, 2015, the Company’s equity compensation plans consisted of the 2003 Stock Incentive Compensation Plan (the “2003 Plan”) and the 2012 Stock Incentive Plan (the “2012 Plan” and together with the 2003 Plan, the “Plans”) under which incentive and non-qualified stock options and time and performance based restricted shares have been granted to employees and directors from authorized but unissued shares of common stock or treasury shares. The 2003 Plan is not active, but continues to govern all outstanding awards granted under the plan until the awards themselves are exercised or terminate in accordance with their terms. The 2012 Plan, approved by stockholders on April 27, 2012, authorized 1,750,000 shares of common stock for awards. The 2012 Plan also authorizes an additional 1,200,000 shares of common stock to the extent awards granted under prior stock plans that were outstanding as of April 27, 2012 are forfeited. The 2012 Plan provides for the following type of awards: options, restricted stock, restricted stock units and other stock-based awards. The Company accounts for the expense of all share-based compensation by measuring the awards at fair value on the date of grant. The Company recognizes expense on a straight-line basis over the vesting period of the entire award. Options issued by the Company under its stock option plans have a term of ten years and generally vest ratably over a period of three to four years. Time-based restricted stock grants are expensed over the vesting period of the award, which is typically two to four years. The number of performance based restricted shares that vest or forfeit depend upon achievement of certain targets during the performance period. Stock-based compensation expense includes the estimated effects of forfeitures. Compensation expense for performance based awards is recorded based upon management’s assessment of the probability of achieving the performance goals and service period and will be adjusted based upon actual achievement. Stock options issued under the current plan must have an exercise price that may not be less than the fair market value of the Company’s Common Stock on the date of grant. The Plans provide for automatic acceleration of vesting in the event of a change in control of the Company. Upon the exercise of a stock option under the Plans, shares are issued from authorized shares or treasury shares held by the Company. The Company incurred compensation expense of $2.8 million, $2.8 million, and $1.8 million for the years ended December 31, 2015, 2014, and 2013, respectively, for all stock-based compensation plans, including restricted stock awards. No compensation costs were capitalized as part of inventory. The associated tax benefit realized was $1.5 million, $2.5 million, and $1.0 million for the years ended December 31, 2015, 2014, and 2013, respectively. Stock Options The fair value of each option granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the years ended December 31:
The following is a summary of the option activity as of December 31, 2015 and changes during the year then ended: In thousands except per share amounts and years
The Company granted 91,900, 131,800, and 75,279 stock options during 2015, 2014, and 2013, respectively. The weighted-average grant-date fair value of options granted during the years 2015, 2014, and 2013 was $15.28, $11.85, and $9.41, respectively. There were 166,175 options exercised in 2015, 277,006 options exercised in 2014, and 158,322 options exercised in 2013. The intrinsic value for options exercised during 2015 was $3.5 million and the associated tax benefit realized from stock options exercised was $1.1 million. The total intrinsic value for options exercised during 2014 was $5.0 million and the associated tax benefit realized from stock options exercised was $1.8 million. The total intrinsic value for options exercised during 2013 was $1.0 million and the associated tax benefit realized from stock options exercised was $0.3 million. The amount of cash received from the exercise of stock options was $1.5 million in 2015, $2.5 million in 2014, and $1.5 million in 2013. At December 31, 2015, the total unrecognized compensation cost related to non-vested stock option awards was approximately $2.0 million, with a weighted average expected amortization period of 3.2 years. Restricted Stock The following is a summary of the Company’s unvested restricted shares for the year ended and as of December 31, 2015:
Restricted stock includes both performance-based and time-based awards. Compensation for restricted stock is recorded based on the market value of the stock on the grant date and amortized to expense over the vesting period of the award. The Company granted 38,170, 204,800, and 95,090 shares of performance-based restricted stock during 2015, 2014, and 2013, respectively. The Company granted 33,755 shares of time-based restricted stock in 2015, 48,649 shares in 2014, and 29,480 in 2013. The weighted average fair value per share of restricted stock granted was $34.09, $22.93, and $16.01 during 2015, 2014, and 2013, respectively. During 2015, 2014, and 2013, respectively, there were 147,187, 6,212 and 10,565 shares of restricted stock forfeited. The fair value of awards for which restrictions lapsed during the years ended December 31, 2015, 2014, and 2013 was $1.4 million, $2.2 million, and $1.6 million, respectively. At December 31, 2015, the total unrecognized compensation cost related to non-vested restricted stock awards was approximately $4.0 million, with a weighted average expected amortization period of 2.2 years. Stock Repurchase Program In April 2012, the Company’s Board of Directors approved a stock repurchase program (the “2012 Stock Repurchase Program”) which authorized the Company to repurchase up to 1.0 million shares of its common stock. The Company repurchased 267,089 shares of its common stock during the year ended December 31, 2015 under the 2012 Stock Repurchase Program. As of December 31, 2015, there were no shares remaining and authorized for repurchase under the 2012 Stock Repurchase Program. During the year ended December 31, 2015, the Company purchased 12,935 shares of common stock valued at $0.4 million, through withholding, pursuant to provisions in agreements with recipients of restricted stock granted under the Company's equity compensation plans, which allow the Company to withhold the number of shares having fair value equal to each recipient's tax withholding due. |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information On February 20, 2014, the Company acquired the Industrial Filtration business from Andrew Industries Limited, which is being reported as a separate reportable segment since the acquisition date. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. The Company’s reportable segments are Performance Materials, Industrial Filtration, Thermal/Acoustical Metals, and Thermal/Acoustical Fibers. Other Products and Services (“OPS”) included Life Sciences Vital Fluids, which was sold on January 30, 2015. Performance Materials Segment The Performance Materials segment includes filtration media solutions primarily for air, fluid power, and industrial applications (“Filtration”), thermal insulation solutions for building products, appliances, and energy and industrial markets (“Thermal Insulation”), and air and liquid life science applications (“Life Sciences Filtration”). Filtration products include LydAir® MG (Micro-Glass) Air Filtration Media, LydAir® MB (Melt Blown) Air Filtration Media, LydAir® SC (Synthetic Composite) Air Filtration Media, and Arioso™ Membrane Composite Media. These products constitute the critical media component of clean-air systems for applications in clean-space, commercial, industrial and residential HVAC, power generation, and industrial processes. Lydall has leveraged its extensive technical expertise and applications knowledge into a suite of media products covering the vast liquid filtration landscape across the engine and industrial fields. The LyPore® Liquid Filtration Media series address a variety of application needs in fluid power including hydraulic filters, air-water and air-oil coalescing, industrial fluid processes and diesel fuel filtration. Thermal Insulation products are high performance non-woven veils, papers, mats and specialty composites for the building products, appliance, and energy and industrial markets. The Manniglas® Thermal Insulation brand is diverse in its product application ranging from high temperature seals and gaskets in ovens and ranges to specialty veils for HVAC and cavity wall insulation. The appLY® Mat Needled Glass Mats have been developed to expand Lydall’s high temperature technology portfolio for broad application into the appliance market and supplements the Lytherm® Insulation Media product brand, traditionally utilized in the industrial market for kilns and furnaces used in metal processing. Lydall’s Cryotherm® Super-Insulating Media, CRS-Wrap® Super-Insulating Media and Cryo-Lite™ Cryogenic Insulation products are industry standards for state-of-the-art cryogenic insulation designs used by manufacturers of cryogenic equipment for liquid gas storage, piping, and transportation. Life Sciences Filtration products have been developed to meet the requirements of life science applications including biopharmaceutical pre-filtration and clarification, diagnostic and analytical testing, respiratory protection, life protection, medical air filtration, drinking water filtration and high purity process filtration such as that found in food and beverage and medical applications. Lydall also offers Solupor® Membrane specialty microporous membranes that are utilized in various markets and applications including air and liquid filtration and transdermal drug delivery. Solupor® membranes incorporate a unique combination of mechanical strength, chemical inertness, and high porosity in a unique open structure. Industrial Filtration Segment The Industrial Filtration segment includes non-woven felt media and filter bags used primarily in industrial air and liquid filtration applications. Non-woven filter media is the most commonly used filter technology to satisfy increasing emission control regulations in a wide range of industries, including power, cement, steel, asphalt, incineration, mining, food, and pharmaceutical. The business also produces non-woven rolled-good media that is used in other commercial applications and media for automotive applications is supplied to the Company's Thermal/Acoustical Fibers segment. Industrial Filtration segment products include air and liquid filtration media sold under the brand names Fiberlox® high performance filtration felts, Checkstatic™ conductive filtration felts, Microfelt® high efficiency filtration felts, Pleatlox® pleatable filtration felts, Ultratech™ PTFE filtration felts, Powertech® and Powerlox® power generation filtration felts, Microcap® high efficiency liquid filtration felts, Duotech membrane composite filtration felts, along with traditional scrim supported filtration felts. Industrial Filtration also offers extensive finishing and coating capabilities which provide custom engineered properties tailored to meet the most demanding filtration applications. The business leverages a wide range of fiber types and extensive technical capabilities to provide products that meet our customers’ needs across a variety of applications providing both high performance and durability. Thermal/Acoustical Metals Segment The Thermal/Acoustical Metals segment offers a full range of innovative engineered products for the transportation sector to assist primarily in the reduction of powertrain and road noise as well as thermally shield sensitive components from high heat. Lydall products are found in the underbody (tunnel, fuel tank, exhaust, rear muffler and spare tire) and under hood (engine compartment, turbo charger, and manifolds) of cars, trucks, SUVs, heavy duty trucks and recreational vehicles. Thermal/Acoustical Metals segment products are formed on production lines capable of combining multiple layers of metal and thermal or acoustical media to provide an engineered thermal and acoustical shielding solution for an array of application areas in the global automotive and truck markets. The flux® product family in Thermal/Acoustical Metals includes several patented or IP-rich products that address applications which include: Direct Exhaust Mount heat shields, which are mounted to high temperature surfaces like exhaust down-pipes, turbochargers or engine manifolds using aluminized and stainless steel with high performance heat insulating materials; Powertrain heat shields that absorb noise at the source or are acoustically transparent and do not contribute to the engine’s noise budget; and Durable and thermally robust solutions for sensitive plastic components such as fuel tanks that are in proximity to high temperature heat sources. Thermal/Acoustical Fibers Segment The Thermal/Acoustical Fibers segment offers innovative engineered products to assist primarily in noise vibration and harshness (NVH) abatement within the transportation sector. Lydall products are found in the interior (dash insulators, cabin flooring), underbody (wheel well, aerodynamic belly pan, fuel tank, exhaust) and under hood (engine compartment) of cars, trucks, SUVs, heavy duty trucks and recreational vehicles. Thermal/Acoustical Fibers segment products offer thermal and acoustical insulating solutions comprised of organic and inorganic fiber composites for the automotive and truck markets primarily in North America. Lydall’s dBCore® is a lightweight acoustical composite that emphasizes absorption principles over heavy-mass type systems. Lydall’s dBLyte® is a high-performance acoustical barrier with sound absorption and blocking properties and can be used throughout a vehicle’s interior to minimize intrusive noise from an engine compartment and road. Lydall’s ZeroClearance® is an innovative thermal solution that utilizes an adhesive backing for attachment and is used to protect vehicle components from excessive heat. Lydall’s specially engineered products provide a solution that provides weight reduction, superior noise suppression, and increased durability over conventional designs. Thermal/Acoustical Metals segment and Thermal/Acoustical Fibers segment operating results include allocations of certain costs shared between the segments. Other Products and Services The Life Sciences Vital Fluids business offered specialty products for blood filtration devices, blood transfusion single-use containers and the design and manufacture of single-use solutions for cell growth, frozen storage and fluid handling, as well as equipment for bioprocessing applications. On January 30, 2015, the Company sold all of the outstanding shares of common stock of its Life Sciences Vital Fluids business for a cash purchase price of $30.1 million. The disposition was completed pursuant to a Stock Purchase and Sale Agreement, dated January 30, 2015, by and among the Company, and the buyer. The Company recognized an after-tax gain on the sale of this business of approximately $11.8 million in the first quarter of 2015. Net sales by segment and for OPS, as well as reconciling items, to equal consolidated net sales for the years ended December 31, 2015, 2014, and 2013 were as follows:
Operating income by segment and for OPS and Corporate Office Expenses for the years ended December 31, 2015, 2014, and 2013 were as follows:
Operating results in 2015 were negatively impacted by a $1.4 million long-lived asset impairment charge within the Performance Materials segment and unfavorable foreign currency translation of $2.0 million impacting the Performance Materials, T/A Metals and Industrial Filtration segments. Operating results in 2014 were negatively impacted by $2.1 million of purchase accounting adjustments relating to inventory step-up for the Industrial Filtration segment and a $2.9 million sales commission settlement within the T/A Metals segment. Corporate Office Expenses in 2014 were negatively impacted by a $4.9 million non-cash pension plan settlement charge and $2.6 million of transaction related costs. Corporate Office Expenses in 2013 were impacted by $1.2 million of transaction related costs. Total assets by segment and for OPS and the Corporate Office were as follows at December 31, 2015, 2014, and 2013:
Total capital expenditures and depreciation and amortization by segment and for OPS and the Corporate Office for the years ended December 31, 2015, 2014, and 2013 were as follows:
Net sales by geographic area for the years ended December 31, 2015, 2014 and 2013 and long-lived asset information by geographic area as of December 31, 2015, 2014, and 2013 were as follows:
Foreign sales are based on the country in which the sales originated (i.e., where the Company’s legal entity is domiciled). Sales to Ford Motor Company in 2015, 2014, and 2013 were $95.4 million, $88.4 million, and $79.7 million, respectively, and accounted for 18.2%, 16.5%, and 20.0% of Lydall’s net sales in the years ended December 31, 2015, 2014, and 2013, respectively. Sales to Chrysler Group LLC in 2013 were $43.5 million and accounted for 10.9% of Lydall's net sales in the year ended 2013. These sales were reported in the Thermal/Acoustical Metal and Thermal/Acoustical Fiber segments. No other customers accounted for more than 10.0% of total net sales in 2015, 2014, and 2013. |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The provision for income taxes consists of the following:
The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory tax rate on earnings:
In 2015, the effective tax rate of 34.9% was positively impacted by a favorable mix of taxable income generated from countries with lower tax rates compared to that of the United States, resulting in a tax benefit of $1.0 million. The Company also recorded a tax benefit of $1.2 million attributable to the Domestic Production Activities Deduction and a tax benefit of $1.1 million related to research and development credits. These favorable adjustments were partially offset by tax expense of $0.9 million related to a net increase in valuation allowance against certain deferred tax assets and by a $0.6 million reduction to state deferred tax assets as a result of state tax law changes that led the Company to deem the asset unrealizable in future periods. The net increase in valuation allowance against certain deferred tax assets of $0.9 million in 2015 was primarily related to tax valuation allowances of $0.8 million recorded against certain net deferred tax assets in the Netherlands and China, as future realization of the assets is not reasonably assured. In 2014, the effective tax rate of 35.1% was positively impacted by a favorable mix of taxable income generated from countries with lower tax rates compared to that of the United States resulting in a tax benefit of $1.2 million and a tax benefit of $0.9 million attributable to the Domestic Production Activities Deduction. These favorable adjustments were partially offset by tax expense of $0.8 million related to nondeductible transaction costs from the Industrial Filtration acquisition, and a net increase in tax valuation allowances of $0.2 million. The other line item above is net of nondeductible expenses and other income and expense items. In 2013, the effective tax rate of 32.4% was positively impacted by the release of valuation allowances against state tax credit carryovers of $1.1 million, $0.8 million of benefit relating to Domestic Production Activities Deduction, and a tax benefit of $0.5 million related to the conclusion of certain U.S. federal income tax matters through the year ended December 31, 2009. These favorable tax adjustments were partially offset by an increase in valuation allowance established against a foreign net deferred tax asset. The $1.1 million reversal of valuation allowances against state tax credit carryovers included $0.3 million of state tax credits which offset 2013 state income taxes and $0.8 million expected to benefit future periods. The Company maintains valuation allowances against certain deferred tax assets where realization is not reasonably assured. The Company evaluates the likelihood of the realization of deferred tax assets and reduces the carrying amount to the extent it believes a portion will not be realized. The Company’s effective tax rates in future periods could be affected by earnings being lower or higher than anticipated in countries where tax rates differ from the United States federal rate, the relative impact of permanent tax adjustments on higher or lower earnings from domestic operations, changes in net deferred tax asset valuation allowances, completion of acquisitions or divestitures, changes in tax rates or tax laws and the outcome of tax audits. The following schedule presents net current and net long-term deferred tax assets and liabilities by tax jurisdiction as of December 31, 2015 and 2014:
Net deferred tax assets (liabilities) consist of the following as of December 31, 2015 and 2014:
For the years ended December 31, 2015, 2014 and 2013, income before income taxes was derived from the following sources:
At December 31, 2015, the Company had approximately $4.3 million of state net operating loss carryforward which expires in 2035 and 2036. The Company has not recorded a deferred tax asset for this carryforward as the Company anticipates paying a non-income based franchise tax for the foreseeable future in the applicable jurisdiction. In addition, at December 31, 2015, the Company had $2.6 million of state tax credit carry forwards that expire between 2016 and 2031. As of December 31, 2015, the Company has provided a valuation reserve against $2.0 million of its state tax credit carryforwards. The Company also has $7.1 million of foreign net operating loss carryovers in China, $0.1 million of foreign net operating loss carryovers in France, $0.4 million of net operating loss carryovers in the United Kingdom and $9.2 million of net operating loss carryovers in the Netherlands. The Netherlands’ net operating losses expire between the years 2017 and 2024 and the China net operating losses expire between the years 2016 and 2020. The Company has recorded a valuation allowance against $9.2 million of its net operating losses in the Netherlands and $3.6 million of its net operating losses in China as future realization is not reasonably assured. The Company evaluates and weighs the positive and negative evidence present at each period. The Company will continue to monitor the realization criteria based on future operating results. As of December 31, 2015 the Company has not paid U.S. income taxes on approximately $24.5 million of undistributed earnings of foreign subsidiaries. The Company’s intention is to reinvest these earnings indefinitely or to repatriate the earnings only when it is tax effective to do so. The Company estimates that the amount of tax that would be payable on the undistributed earnings if repatriated to the United States would fall in the range of $1.0 million to $6.0 million, based on current facts, but depending on the timing and extent of the repatriation. This amount may vary in the future due to a variety of factors including future tax law changes, future earnings and statutory taxes paid by foreign subsidiaries, and ongoing tax planning strategies by the Company. The Company and its subsidiaries file a consolidated federal income tax return, as well as returns required by various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities, including such major jurisdictions as the United States, China, France, Germany, Hong Kong, the Netherlands and the United Kingdom. Within the next fiscal year, the Company expects to conclude certain federal income tax matters through the year ended December 31, 2012 and it is reasonably expected that net unrecognized benefits of $0.1 million may be recognized. The total amount of net unrecognized tax benefits that would affect the effective tax rate if recognized is $1.1 million as of December 31, 2015. The Company is no longer subject to U.S. federal examinations for years before 2012, state and local examinations for years before 2011, and non-U.S. income tax examinations for years before 2003. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
The Company recognizes the interest accrued and the penalties related to unrecognized tax benefits as a component of tax expense. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Leases The Company has operating leases that resulted in expense of $5.1 million in 2015, $6.4 million in 2014, and $4.0 million in 2013. These contracts include building, office equipment, vehicle and machinery leases that require payment of property taxes, insurance, repairs and other operating costs. The Company has a capital lease agreement for the land and building at the St. Nazaire, France operating facility requiring monthly principal and interest payments until 2016. (See Note 6) Approximate future minimum lease payments under noncancelable leases are:
Commitments and Contingencies The Company is subject to legal proceedings, claims, investigations and inquiries that arise in the ordinary course of business such as, but not limited to, actions with respect to commercial, intellectual property, employment, personal injury and environmental matters. While the outcome of any matter is inherently uncertain and the Company cannot be sure that it will prevail in any of the cases, subject to the matter referenced below, the Company is not aware of any matters pending that are expected to be material with respect to the Company’s business, financial position, results of operations or cash flows. Lydall Gerhardi GmbH & Co. KG ("Lydall Gerhardi"), which is an indirect wholly-owned subsidiary of the Company and part of the Thermal/Acoustical Metals segment, is cooperating with the German Federal Cartel Office (Bundeskartellamt) in connection with an investigation, initiated in the second quarter of 2014, relating to possible violations of German anti-trust laws by and among certain European automotive heat shield manufacturers, including Lydall Gerhardi. The Company has been conducting an internal investigation utilizing outside counsel. In the course of this internal investigation, the Company has discovered instances of inappropriate conduct by certain German employees of Lydall Gerhardi. The Company has disclosed its findings in an application for leniency submitted to the German Federal Cartel Office on July 22, 2014. The Company is continuing its internal investigation and has taken, and will continue to take, remedial actions. The German Federal Cartel Office has wide discretion in fixing the amount of a fine, up to a maximum fine of ten percent (10%) of the Company’s annual revenue of the year preceding the year in which the fine is imposed. The Company believes a loss is probable. However, in light of the uncertainties and variables involved, the Company is unable to estimate either the timing or the amount of the loss associated with this matter. There can be no assurance that this matter will not have a material adverse effect on the Company. |
Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table provides a reconciliation of weighted-average shares used to determine basic and diluted earnings per share.
For the years ended December 31, 2015, 2014 and 2013, stock options for 0.1 million, less than 0.1 million, and 0.2 million shares of Common Stock, respectively, were not considered in computing diluted earnings per common share as the stock options were considered anti-dilutive. |
Quarterly Financial Information (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The following table summarizes quarterly financial results for 2015 and 2014. In management’s opinion, all material adjustments necessary for a fair statement of the information for such quarters have been reflected.
The table above includes the quarterly results of Industrial Filtration since the acquisition date of February 20, 2014 and Other Products and Services preceding the disposition date of January 30, 2015. Net income during the quarter ended March 31, 2015 was positively impacted by an after-tax gain of $11.8 million due to the sale of Life Sciences Vital Fluids. Net income during the quarter ended September 30, 2015 was positively impacted by discrete tax benefits of $1.2 million, related to the completion of a tax credit project and the release of reserves for previously uncertain tax positions. Net income during the quarter ended December 31, 2015 was negatively impacted by a $1.4 million long-lived asset impairment charge related to Solutech and $1.2 million of a discrete income tax charges related to changes in state tax legislation. During the quarter ended December 31, 2015, the Company identified an error in its income tax expense related to a state tax credit carryforward that resulted in the overstatement of net income by $0.4 million for the quarter ended September 30, 2015. The correction of this error was recorded during the quarter ended December 31, 2015 and reduced net income by $0.4 million, or $0.02 per share. The Company evaluated the impact of the error and determined it to be immaterial to both the third and fourth quarters of 2015. Gross profit during the quarters ended March 31, 2014, June 30, 2014, and September 30, 2014 were negatively impacted by purchase accounting adjustments of $1.3 million, $0.5 million, and $0.2 million, respectively, related to the acquisition of Industrial Filtration. These purchase accounting adjustments reduced net income by $0.9 million, $0.4 million and $0.2 million during the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014, respectively. (See Note 2) Net income during the quarter ended March 31, 2014 was negatively impacted by $2.2 million of transaction related costs due to the acquisition of Industrial Filtration. Net income during the quarter ended June 30, 2014 was negatively impacted by a $2.0 million sales commission settlement within the T/A Metals segment. Net income during the quarter ended September 30, 2014, was negatively impacted by $3.0 million, related to a non-cash pension plan settlement charge associated with the Company's domestic defined benefit pension plan. (See Note 8) |
Recently Issued Accounting Standards |
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Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-11, “Inventory" (Topic 330): Simplifying the Measurement of Inventory." This ASU requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory method. This ASU is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. This ASU is not expected to have an impact on the Company’s consolidated financial statements and disclosures. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606). This ASU provides guidance for revenue recognition and affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry specific guidance. The standard’s core principle is the recognition of revenue when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date", which deferred the effective date of ASU 2014-09 to fiscal years beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted for fiscal years beginning after December 15, 2016. The Company is currently evaluating the method and impact the adoption of ASU 2014-09 will have on the Company’s consolidated financial statements and disclosures. In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes" (Topic 740): Balance Sheet Classification of Deferred Taxes". This ASU requires an entity to classify all deferred tax assets and liabilities, along with any related valuation allowance, as noncurrent on the balance sheet. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this ASU. This ASU is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the method and impact the adoption of ASU 2015-17 will have on the Company’s consolidated financial statements and disclosures. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall" (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". This ASU revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017. This ASU is not expected to have a material impact on the Company’s consolidated financial statements and disclosures. |
Changes in Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) The following table discloses the changes by classification within accumulated other comprehensive income (loss) for the period ended December 31, 2015, 2014 and 2013:
(a) Amount represents actuarial (losses) gains arising from the Company’s postretirement benefit obligation. This amount was $(0.6) million, net of $0.4 million tax benefit, for 2015, $(6.1) million, net of a $3.7 million tax benefit, for 2014 and $5.9 million, net of $3.6 million tax expense in 2013. (See Note 8) (b) Amount represents the amortization of actuarial losses to pension expense arising from the Company’s postretirement benefit obligation. This amount was $0.5 million, net of $0.3 million tax benefit in 2015, $3.5 million, net of $2.1 million tax benefit, which included $3.0 million, net of $1.9 million tax benefit for pension settlement costs in 2014, and $0.7 million, net of $0.4 million tax benefit in 2013. (See Note 8) |
Schedule II - Valuation and Qualifying Accounts |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II LYDALL, INC. VALUATION AND QUALIFYING ACCOUNTS | Schedule II LYDALL, INC. VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED December 31, 2015, 2014 AND 2013
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Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of consolidation | Principles of consolidation — The Consolidated Financial Statements include the accounts of Lydall, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
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Estimates and assumptions | Estimates and assumptions — The preparation of the Company’s Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
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Risks and uncertainties | Risks and uncertainties — Worldwide economic cycles and political changes affect the markets that the Company’s businesses serve and affect demand for Lydall’s products and impact profitability. Among other factors, disruptions in the global credit and financial markets, including diminished liquidity and credit availability, swings in consumer confidence and spending, unstable economic growth and fluctuations in unemployment rates has caused economic instability and can have a negative impact on the Company’s results of operations, financial condition and liquidity. |
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Cash and cash equivalents | Cash and cash equivalents — Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less at the date of purchase. |
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Concentration of credit risk | Concentrations of credit risk — Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable. The Company places its cash and cash equivalents in high-quality financial institutions. Concentrations of credit risk with respect to trade accounts receivable are limited by the large number of customers comprising the Company’s customer base and their dispersion across many different industries and geographies. |
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Inventories | Inventories — Inventories are valued at lower of cost or market, cost being determined using the first-in, first-out (FIFO) cost method. Inventories in excess of requirements for current or anticipated orders have been written down to net realizable value. |
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Pre-production design and development costs | Pre-production design and development costs — The Company enters into contractual agreements with certain customers to design and develop molds, dies and tools (collectively, “tooling”). All such tooling contracts relate to parts that the Company will supply to customers under long-term supply agreements. Tooling costs are accumulated in work-in process inventory and are charged to operations as the related revenue from the tooling is recognized. Revenue is recognized as tooling is delivered and accepted by the customer. The Company also may progress bill on certain tooling being constructed. These billings are recorded as progress billings (a reduction of the associated work-in-process inventory) until the appropriate revenue recognition criteria have been met. Periodically, the Company enters into contractually guaranteed reimbursement arrangements as a mechanism to collect amounts due from customers from tooling sales. Under these arrangements, amounts due from tooling sales are collected as parts are delivered over the part supply arrangement, in accordance with the specific terms of the arrangement. The amounts due from the customer in such transactions are recorded in “Prepaid expenses and other current assets, net” or “Other assets, net” based upon the expected term of the reimbursement arrangement. The following tooling related assets were included in the Consolidated Balance Sheets as of December 31, 2015 and 2014:
Amounts included in “Prepaid expenses and other current assets, net” include the short-term portion of receivables due under contractually guaranteed reimbursement arrangements. |
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Property, plant and equipment | Property, plant and equipment — Property, plant, and equipment are stated at cost. Assets held under capital leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Property, plant and equipment, including property, plant and equipment under capital leases, are depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are depreciated on a straight-line basis over the term of the lease or the life of the asset, whichever is shorter. The cost and accumulated depreciation amounts applicable to assets sold or otherwise disposed of are removed from the asset and accumulated depreciation accounts and any net gain or loss is included in the Consolidated Statements of Operations. Expenses for maintenance and repairs are charged to expense as incurred. |
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Goodwill and other intangible assets | Goodwill and other intangible assets — Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired companies. Goodwill and other intangible assets with indefinite lives are not amortized but are subject to annual impairment tests. All other intangible assets are amortized over their estimated useful lives, which range from 4 to 14 years. In performing impairment tests, the Company considers discounted cash flows and other market factors as best evidence of fair value. There are inherent uncertainties and management judgment required in these analyses. |
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Valuation of long-lived assets | Valuation of long-lived assets — The Company evaluates the recoverability of long-lived assets, or asset groups, whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Should such evaluations indicate that the related future undiscounted cash flows are not sufficient to recover the carrying values of the assets, such carrying values would be reduced to fair value and this adjusted carrying value would become the assets’ new cost basis. Fair value is determined primarily using future anticipated cash flows that are directly associated with, and that are expected to arise as a direct result of the use and eventual disposition of the asset, or asset group, as well as market conditions and other factors. There are inherent uncertainties and management judgment required in these analyses. |
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Employer sponsored benefit plans | Employer sponsored benefit plans — The Company recognizes the funded status of its domestic defined benefit pension plan. Net benefit obligations are calculated based on actuarial valuations using key assumptions related to discount rates, mortality rates and expected return on plan assets. |
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Derivative instruments | Derivative instruments — Derivative instruments are measured at fair value and recognized as either assets or liabilities on the Consolidated Balance Sheet in either current or non-current other assets or other accrued liabilities or other long-term liabilities depending upon maturity and commitment. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in the Consolidated Statement of Operations. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the hedge transaction affects earnings. In general, the types of risks being hedged by the Company are related to the variability of future cash flows caused by changes in foreign currency exchange rates and hedging the impact of variability of foreign exchange rates on recorded intercompany assets or liabilities. Lydall’s objective for entering into derivative instruments has always been for risk management purposes. The Company does not engage in derivative instruments for speculative purposes. Lydall has historically not been a party to a significant number of derivative instruments. |
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Revenue recognition | Revenue recognition — The Company recognizes revenue (1) once evidence of an arrangement exists; (2) product delivery has occurred; (3) pricing is fixed or determinable; and (4) collection is reasonably assured. The four criteria required to recognize revenue are considered to be met, and the passage of title to the customer occurs, at the respective FOB point and, therefore, revenue is recognized at that time. The Company’s standard sales and shipping terms are FOB shipping point, therefore, substantially all revenue is recognized upon shipment. However, the Company conducts business with certain customers on FOB destination terms and in these instances revenue is recognized upon receipt by the customer. The Company generally does not provide specific customer inspection or acceptance provisions in its sales terms, with the exception of tooling sales discussed in “Pre-production design and development costs” above. Sales returns and allowances are recorded as identified or communicated by the customer and internally approved. The Company does not provide customers with general rights of return for products sold; however, in limited circumstances, the Company will allow sales returns and allowances from customers if the products sold do not conform to specifications. Shipping and handling costs consist primarily of costs incurred to deliver products to customers and internal costs related to preparing products for shipment and are recorded in cost of sales. Amounts billed to customers as shipping and handling are classified as revenue. |
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Research and development | Research and development — Research and development costs are charged to expense as incurred and amounted to $8.5 million in 2015, $9.0 million in 2014, and $7.6 million in 2013. Research and development costs were primarily comprised of development personnel salaries, prototype material costs and testing and trials of new products. |
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Earnings per share | Earnings per share — Basic earnings per common share are equal to net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are equal to net income divided by the weighted average number of common shares outstanding during the period, including the effect of stock options and stock awards, if such effect is dilutive. |
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Income taxes | Income taxes — The provision for income taxes is based upon income reported in the accompanying Consolidated Financial Statements. Deferred income taxes reflect the impact of temporary differences between the amounts of income and expense recognized for financial reporting purposes and such amounts recognized for tax purposes. In the event the Company was to determine that it would not be able to realize all or a portion of its deferred tax assets in the future, the Company would record a valuation allowance through a charge to income in the period that such determination was made. Conversely, if the Company was to determine that it would be able to realize its deferred tax assets in the future in excess of the net carrying amounts, the Company would decrease the recorded valuation allowance and record an increase to income in the period that such determination was made. |
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Translation of foreign currencies | Translation of foreign currencies — Assets and liabilities of foreign subsidiaries are translated at exchange rates prevailing on the balance sheet date. Revenues and expenses are translated at average exchange rates prevailing during the period. Any resulting translation gains or losses are reported in other comprehensive income (loss). |
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Stock options and share grants | Stock options and share grants — The Company accounts for awards of equity instruments under the fair value method of accounting and recognizes such amounts in the Consolidated Statements of Operations. The Company recognizes expense on a straight-line basis over the vesting period of the entire award. Stock-based compensation expense includes the estimated effects of forfeitures, and such estimates of forfeitures are adjusted over the requisite service period to the extent actual forfeitures differ, or are expected to differ, from such estimates. The effect of changes in estimated forfeitures is recognized in the period of change and also impacts the amount of expense to be recognized in future periods. The Company estimates the fair value of option grants based on the Black Scholes option-pricing model. Expected volatility and expected term are based on historical information. The Company believes that its future volatility and expected term are not likely to materially differ from the Company’s historical stock price volatility and historical exercise data, respectively. Compensation expense for all restricted stock awards is recorded based on the market value of the stock on the grant date and recognized as expense over the vesting period of the award. Compensation expense for performance-based restricted stock is also impacted by the probability of achieving the performance targets. |
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Recently adopted accounting standards | Recently Adopted Accounting Standards Effective January 1, 2015, the Company adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The Company evaluated the impact the adoption of ASU 2014-08 had on the Company's consolidated financial statements and disclosures related to the January 2015 sale of its Life Sciences Vital Fluids business and determined that the sale of this business did not qualify as a discontinued operation. |
Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Balance Sheet | The following tooling related assets were included in the Consolidated Balance Sheets as of December 31, 2015 and 2014:
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Acquisition and Divestiture (Tables) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Values of Identifiable Assets Acquired and Liabilities Assumed at Date of Acquisition | The following table summarizes the fair values of identifiable assets acquired and liabilities assumed at the date of the acquisition:
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Unaudited Pro Forma Operating Results | The following table reflects the unaudited pro forma operating results of the Company for years ended December 31, 2014 and December 31, 2013, which give effect to the acquisition of Industrial Filtration as if it had occurred on January 1, 2013. The pro forma information includes the historical financial results of the Company and Industrial Filtration. The pro forma results are not necessarily indicative of the operating results that would have occurred had the acquisition been effective January 1, 2013, nor are they intended to be indicative of results that may occur in the future. The pro forma information does not include the effects of any synergies related to the acquisition.
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories as of December 31, 2015 and 2014 were as follows:
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Property, Plant and Equipment, Net (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, plant and equipment as of December 31, 2015 and 2014 were as follows:
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Goodwill and Intangible Assets (Tables) |
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Gross and net Carrying Amounts of Goodwill | Gross and net carrying amounts of goodwill at December 31, 2015 and 2014 were as follows:
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Changes in the Carrying Amounts of Goodwill | The changes in the carrying amounts of goodwill in 2014 and 2015 were as follows:
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Amortization of the Companys Acquired Intangible Assets other than Goodwill | The table below presents the gross carrying amount and, as applicable, the accumulated amortization of the Company’s acquired intangible assets other than goodwill included in “Other intangible assets, net” in the Consolidated Balance Sheets as of December 31, 2015 and 2014:
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Long-term Debt and Financing Arrangements (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | Total outstanding debt consists of:
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Employer Sponsored Benefit Plans (Tables) |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Funded Status | Plan assets and benefit obligations of the domestic defined benefit pension plan are as follows:
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Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Aggregated information for the domestic defined benefit pension plan with an accumulated benefit obligation in excess of plan assets is provided in the tables below:
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Summary of Components of Net Periodic Benefit Cost for Domestic Pension Plan | Components of net periodic benefit cost for the domestic pension plan:
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Schedule of Net Periodic Benefit Cost Not yet Recognized | The major assumptions used in determining the year-end benefit obligation and annual net cost for the domestic pension plan are presented in the following table:
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Schedule of Allocation of Plan Assets | The following table presents the target allocation of pension plan assets for 2016 and the actual allocation of plan assets as of December 31, 2015 and 2014 by major asset category:
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Schedule of Changes in Fair Value of Plan Assets | The following table sets forth by level, within the fair value hierarchy, the Trust’s assets at fair value as of December 31, 2015 and December 31, 2014:
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Schedule of Expected Benefit Payments | The Company expects to contribute approximately $3.0 million to $4.0 million in cash to its domestic defined benefit pension plan in 2016. Estimated future benefit payments for the next 10 years are as follows:
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Equity Compensation Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the years ended December 31:
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Schedule of Nonvested Share Activity | The following is a summary of the option activity as of December 31, 2015 and changes during the year then ended: In thousands except per share amounts and years
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Schedule of Nonvested Restricted Stock Units Activity | The following is a summary of the Company’s unvested restricted shares for the year ended and as of December 31, 2015:
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Segment and for OPS, Reconciling Items to Equal to Consolidated Net Sales | Net sales by segment and for OPS, as well as reconciling items, to equal consolidated net sales for the years ended December 31, 2015, 2014, and 2013 were as follows:
Operating income by segment and for OPS and Corporate Office Expenses for the years ended December 31, 2015, 2014, and 2013 were as follows:
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Total Assets By Segment | Total assets by segment and for OPS and the Corporate Office were as follows at December 31, 2015, 2014, and 2013:
Total capital expenditures and depreciation and amortization by segment and for OPS and the Corporate Office for the years ended December 31, 2015, 2014, and 2013 were as follows:
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Net Sales by Geographic Area | Net sales by geographic area for the years ended December 31, 2015, 2014 and 2013 and long-lived asset information by geographic area as of December 31, 2015, 2014, and 2013 were as follows:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Provision for Income Taxes | The provision for income taxes consists of the following:
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Reconciliation of the Difference between the Actual Provisions for Income Taxes | The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory tax rate on earnings:
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Schedule Presents Net Current and Net Long-Term Deferred Tax Assets and Liabilities by Tax Jurisdiction | The following schedule presents net current and net long-term deferred tax assets and liabilities by tax jurisdiction as of December 31, 2015 and 2014:
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Components of Deferred Tax Asset and Liability | Net deferred tax assets (liabilities) consist of the following as of December 31, 2015 and 2014:
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Schedule of Income from Continuing Operations before Income Taxes | For the years ended December 31, 2015, 2014 and 2013, income before income taxes was derived from the following sources:
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Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Lease Payments | Approximate future minimum lease payments under noncancelable leases are:
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Earnings Per Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Weighted Average Shares Used to Determine Basic and Diluted Earnings Per Share | The following table provides a reconciliation of weighted-average shares used to determine basic and diluted earnings per share.
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Quarterly Financial Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarizes Quarterly Financial Results | The following table summarizes quarterly financial results for 2015 and 2014. In management’s opinion, all material adjustments necessary for a fair statement of the information for such quarters have been reflected.
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Changes in Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes By Classification Within Accumulated Other Comprehensive Income (Loss) | The following table discloses the changes by classification within accumulated other comprehensive income (loss) for the period ended December 31, 2015, 2014 and 2013:
(a) Amount represents actuarial (losses) gains arising from the Company’s postretirement benefit obligation. This amount was $(0.6) million, net of $0.4 million tax benefit, for 2015, $(6.1) million, net of a $3.7 million tax benefit, for 2014 and $5.9 million, net of $3.6 million tax expense in 2013. (See Note 8) (b) Amount represents the amortization of actuarial losses to pension expense arising from the Company’s postretirement benefit obligation. This amount was $0.5 million, net of $0.3 million tax benefit in 2015, $3.5 million, net of $2.1 million tax benefit, which included $3.0 million, net of $1.9 million tax benefit for pension settlement costs in 2014, and $0.7 million, net of $0.4 million tax benefit in 2013. (See Note 8) |
Significant Accounting Policies (Detail) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Accounting Policies [Line Items] | ||
Total tooling related assets | $ 9,486 | $ 8,862 |
Inventories, net of progress billings and reserves | ||
Accounting Policies [Line Items] | ||
Total tooling related assets | 9,220 | 8,832 |
Prepaid expenses and other current assets, net | ||
Accounting Policies [Line Items] | ||
Total tooling related assets | $ 266 | $ 30 |
Significant Accounting Policies (Additional Information) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Accounting Policies [Line Items] | |||
Percentage of foreign and export sales | 44.20% | 46.20% | 45.20% |
Export sales | $ 52,500 | $ 57,600 | $ 52,100 |
Percentage of sales to automotive market | 56.60% | 54.10% | 68.50% |
Progress billings adjustment | $ (316) | $ (1,108) | |
Finite-lived intangible asset useful life | 10 years | ||
Research and development expense | $ 8,500 | $ 9,000 | $ 7,600 |
Minimum | |||
Accounting Policies [Line Items] | |||
Finite-lived intangible asset useful life | 4 years | ||
Maximum | |||
Accounting Policies [Line Items] | |||
Finite-lived intangible asset useful life | 14 years | ||
Ford Motor Company | |||
Accounting Policies [Line Items] | |||
Percentage of accounts receivable from significant customer | 13.20% | ||
Percentage of foreign and export sales | 18.20% | 16.50% | 20.00% |
Chrysler Group Llc | |||
Accounting Policies [Line Items] | |||
Percentage of foreign and export sales | 10.90% |
Acquisition and Divestiture (Acquisition, Fair Values of Identifiable Assets Acquired and Liabilities Assumed) (Details) $ in Thousands |
Feb. 20, 2014
USD ($)
|
---|---|
Business Combinations [Abstract] | |
Cash | $ 7,493 |
Accounts Receivable | 26,779 |
Inventory | 25,046 |
Other current assets | 2,894 |
Property, plant and equipment | 38,780 |
Deferred Taxes | 2,501 |
Intangible assets | 5,596 |
Goodwill | 3,943 |
Total assets acquired | 113,032 |
Other liabilities | (18,002) |
Deferred taxes | (8,130) |
Total liabilities assumed | (26,132) |
Net assets acquired | $ 86,900 |
Acquisition and Divestiture (Unaudited Pro Forma Operating Results) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Business Combinations [Abstract] | ||
Net Sales | $ 553,345 | $ 525,134 |
Net Income | $ 26,302 | $ 21,500 |
Earnings Per Share [Abstract] | ||
Earnings per share, basic (in dollars per share) | $ 1.58 | $ 1.30 |
Earnings per share, diluted (in dollars per share) | $ 1.55 | $ 1.27 |
Inventories (Summary of Inventories) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 17,128 | $ 21,248 |
Work in process | 14,670 | 15,753 |
Finished goods | 15,048 | 15,348 |
Inventory, Gross, Total | 46,846 | 52,349 |
Less: Progress billings | (316) | (1,108) |
Total inventories | $ 46,530 | $ 51,241 |
Inventories (Additional Information) (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Gross tooling inventory | $ 9.5 | $ 9.9 |
Tooling inventory, net of progress billings | $ 9.2 | $ 8.8 |
Property, Plant and Equipment, Net (Additional Information) (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 16.4 | $ 16.7 | $ 12.1 |
Goodwill and Intangible Assets (Gross and Net Carrying Amounts of Goodwill) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|
Goodwill [Line Items] | |||
Goodwill | $ 29,001 | $ 35,230 | |
Accumulated amortization/impairment | (12,160) | (13,287) | |
Goodwill | 16,841 | 21,943 | $ 18,589 |
Performance Materials | |||
Goodwill [Line Items] | |||
Goodwill | 12,898 | 13,340 | |
Accumulated amortization/impairment | 0 | 0 | |
Goodwill | 12,898 | 13,340 | |
Industrial Filtration | |||
Goodwill [Line Items] | |||
Goodwill | 3,943 | 3,943 | |
Accumulated amortization/impairment | 0 | 0 | |
Goodwill | 3,943 | 3,943 | $ 0 |
Thermal/ Acoustical Metals | |||
Goodwill [Line Items] | |||
Goodwill | 12,160 | 12,160 | |
Accumulated amortization/impairment | (12,160) | (12,160) | |
Goodwill | 0 | 0 | |
Other Products and Services | |||
Goodwill [Line Items] | |||
Goodwill | 0 | 5,787 | |
Accumulated amortization/impairment | 0 | (1,127) | |
Goodwill | $ 0 | $ 4,660 |
Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill by Reporting Unit) (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Goodwill [Roll Forward] | ||
Beginning Balance | $ 21,943 | $ 18,589 |
Goodwill adjustment | (4,660) | 3,943 |
Currency translation adjustment | (442) | (589) |
Ending Balance | 16,841 | 21,943 |
Performance Materials | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 13,340 | 13,929 |
Goodwill adjustment | 0 | 0 |
Currency translation adjustment | (442) | (589) |
Ending Balance | 12,898 | 13,340 |
Industrial Filtration | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 3,943 | 0 |
Goodwill adjustment | 0 | 3,943 |
Currency translation adjustment | 0 | 0 |
Ending Balance | 3,943 | 3,943 |
Other Products and Services | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 4,660 | 4,660 |
Goodwill adjustment | (4,660) | 0 |
Currency translation adjustment | 0 | 0 |
Ending Balance | $ 0 | $ 4,660 |
Long-term Debt and Financing Arrangements (Total Outstanding Debt) (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 20,479 | $ 40,930 |
Less portion due within one year | (323) | (615) |
Total long-term debt | $ 20,156 | 40,315 |
Revolver Loan, due January 31, 2019 | ||
Debt Instrument [Line Items] | ||
Effective Rate | 1.42% | |
Maturity | 2019 | |
Long-term Debt, Gross | $ 20,000 | 40,000 |
Capital Lease, land and building, St. Nazaire, France | ||
Debt Instrument [Line Items] | ||
Effective Rate | 5.44% | |
Maturity | 2016 | |
Long-term Debt, Gross | $ 277 | 893 |
Capital Lease, manufacturing equipment, Hamptonville, North Carolina | ||
Debt Instrument [Line Items] | ||
Effective Rate | 5.00% | |
Maturity | 2017 | |
Long-term Debt, Gross | $ 9 | 37 |
Capital Lease, manufacturing equipment, Hamptonville, North Carolina | ||
Debt Instrument [Line Items] | ||
Effective Rate | 1.65% | |
Maturity | 2020 | |
Long-term Debt, Gross | $ 193 | $ 0 |
Capital Stock (Additional Information) (Detail) $ / shares in Units, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015
USD ($)
stockholder
$ / shares
shares
|
Apr. 30, 2015
USD ($)
$ / shares
|
Mar. 31, 2015
$ / shares
|
Dec. 31, 2014
USD ($)
$ / shares
shares
|
|
Class of Stock [Line Items] | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 1.00 | $ 0.01 |
Preferred stock, issued (in shares) | shares | 0 | 0 | ||
Preferred stock, authorized | shares | 500,000 | 500,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.10 | $ 0.01 |
Common stock reclassified to capital in excess of par | $ 247 | $ 2,463 | ||
Capital in excess of par value | $ 76,746 | $ 68,961 | ||
Number of Stockholders | stockholder | 6,289 | |||
Common stock, shares, outstanding (in shares) | shares | 17,140,426 | |||
Scenario, Adjustment | ||||
Class of Stock [Line Items] | ||||
Common stock reclassified to capital in excess of par | $ 2,200 | |||
Capital in excess of par value | $ 2,200 |
Employer Sponsored Benefit Plan (Defined Benefit Pension Plan with an Accumulated Benefit Obligation In Excess of Plan Assets) (Detail) - Domestic Pension Plan - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 48,081 | $ 50,827 |
Accumulated benefit obligation | 48,081 | 50,827 |
Fair value of plan assets | $ 35,413 | $ 33,275 |
Employer Sponsored Benefit Plan (Components of Net Periodic Benefit Cost) (Detail) - Domestic Pension Plan - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Interest cost | $ 2,066 | $ 2,348 | $ 2,453 | |
Expected return on plan assets | (2,360) | (2,798) | (2,691) | |
Amortization of actuarial net loss | 897 | 725 | 1,069 | |
Pension settlement cost | $ 4,900 | 0 | 4,914 | 0 |
Total net periodic benefit cost | $ 603 | $ 5,189 | $ 831 |
Employer Sponsored Benefit Plan (Assumptions Used in Determining the Year-End Benefit Obligation and Annual Net Cost) (Detail) - Domestic Pension Plan |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, Benefit Obligation | 4.56% | 4.16% | |
Expected return on plan assets, Benefit Obligation | 7.00% | 7.25% | |
Discount rate, Net Cost | 4.16% | 5.09% | 4.16% |
Expected return on plan assets, Net Cost | 7.25% | 7.25% | 7.50% |
Employer Sponsored Benefit Plan (Estimated Future Benefit Payments) (Detail) - Domestic Pension Plan $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Defined Benefit Plan, Estimated Future Employer Contributions [Abstract] | |
2016 | $ 2,385 |
2017 | 2,443 |
2018 | 2,519 |
2019 | 2,655 |
2020 | 2,802 |
2020-2024 | $ 14,704 |
Equity Compensation Plans (Weighted - Average Assumptions) (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Compensation and Retirement Disclosure [Abstract] | |||
Risk-free interest rate | 1.80% | 1.60% | 1.70% |
Expected life | 5 years 5 months 19 days | 5 years 1 month 6 days | 5 years 2 months 12 days |
Expected volatility | 43.00% | 46.00% | 65.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Segment Information (Net Sales by Geographic Area) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Segment Reporting Information [Line Items] | |||
Net sales | $ 524,505 | $ 535,829 | $ 397,969 |
Long-Lived Assets | 116,717 | 118,680 | 80,325 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 344,950 | 345,864 | 269,989 |
Long-Lived Assets | 76,502 | 72,832 | 48,787 |
France | |||
Segment Reporting Information [Line Items] | |||
Net sales | 47,495 | 52,534 | 47,831 |
Long-Lived Assets | 12,899 | 13,861 | 16,436 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Net sales | 68,861 | 77,896 | 77,229 |
Long-Lived Assets | 10,149 | 12,366 | 13,287 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Net sales | 26,598 | 26,387 | 0 |
Long-Lived Assets | 6,399 | 7,601 | 0 |
China | |||
Segment Reporting Information [Line Items] | |||
Net sales | 33,885 | 29,401 | 0 |
Long-Lived Assets | 9,953 | 11,225 | 0 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,716 | 3,747 | 2,920 |
Long-Lived Assets | $ 815 | $ 795 | $ 1,815 |
Income Taxes (Components of Provision for Income Taxes) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Current: | |||
Federal | $ 18,291 | $ 8,069 | $ 5,477 |
State | 1,204 | 1,334 | 709 |
Foreign | 1,684 | 3,883 | 2,032 |
Total Current | 21,179 | 13,286 | 8,218 |
Deferred: | |||
Federal | 1,583 | (42) | 1,609 |
State | 1,696 | (1,626) | (1,144) |
Foreign | 306 | 191 | 504 |
Total Deferred | 3,585 | (1,477) | 969 |
Provision for income taxes | $ 24,764 | $ 11,809 | $ 9,187 |
Income Taxes (Reconciliation of the Difference between the Actual Provisions for Income Taxes) (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes | 2.90% | 0.80% | 2.90% |
Valuation allowances for deferred tax assets, including state | 1.30% | 1.30% | (1.80%) |
Research and development credits | (1.50%) | (0.50%) | (1.10%) |
Capitalized transaction costs | 0.00% | 2.00% | 0.00% |
Domestic production activities deduction | (1.60%) | (2.60%) | (2.70%) |
Foreign income taxed at lower rates | (1.30%) | (3.50%) | 0.00% |
Other | 0.10% | 2.60% | 0.10% |
Effective income tax rate | 34.90% | 35.10% | 32.40% |
Income Taxes (Components of Deferred Tax Asset and Liability) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred tax assets: | ||
Accounts receivable | $ 218 | $ 211 |
Inventories | 741 | 884 |
Net operating loss carryforwards | 4,213 | 4,992 |
Other accrued liabilities | 2,745 | 3,341 |
Pension | 3,684 | 7,295 |
Tax Credits | 1,634 | 1,879 |
Total deferred tax assets | 13,235 | 18,602 |
Deferred tax liabilities: | ||
Intangible assets | 4,077 | 6,525 |
Property, plant and equipment | 15,101 | 15,195 |
Total deferred tax liabilities | 19,178 | 21,720 |
Valuation allowance | 4,307 | 3,727 |
Net deferred tax liabilities | $ (10,250) | $ (6,845) |
Income Taxes (Schedule of Income from Continuing Operations before Income Taxes) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax Disclosure [Abstract] | |||
United States | $ 64,923 | $ 27,463 | $ 23,433 |
Foreign | 6,100 | 6,193 | 4,909 |
Total income before income taxes | $ 71,023 | $ 33,656 | $ 28,342 |
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits at beginning of year | $ 2,272 | $ 1,864 |
Increases relating to positions taken in prior periods | 0 | 20 |
Increases relating to current period | 49 | 388 |
Decreases due to settlements with tax authorities | (336) | 0 |
Decreases due to lapse of statute of limitations | (328) | 0 |
Unrecognized tax benefits at end of year | $ 1,657 | $ 2,272 |
Commitments and Contingencies (Future Minimum Lease Payments) (Detail) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Operating Lease Payments, 2016 | $ 4,385 |
Operating Lease Payments, 2017 | 3,782 |
Operating Lease Payments, 2018 | 2,284 |
Operating Lease Payments, 2019 | 828 |
Operating Lease Payments, 2020 | 526 |
Operating Lease Payments, Thereafter | 603 |
Operating Lease Payments, Total | 12,408 |
Capital Lease Payments, 2016 | 326 |
Capital Lease Payments, 2017 | 42 |
Capital Lease Payments, 2018 | 42 |
Capital Lease Payments, 2019 | 42 |
Capital Lease Payments, 2020 | 35 |
Capital Lease Payments, Thereafter | 0 |
Capital Lease Payments, Total | 487 |
Interest on capital leases | (11) |
Capital Lease Payments, Total | 476 |
2016 | 4,711 |
2017 | 3,824 |
2018 | 2,326 |
2019 | 870 |
2020 | 561 |
Thereafter | 603 |
Total Operating and Capital Lease Payments | 12,895 |
Interest on capital leases | (11) |
Total | $ 12,884 |
Commitments and Contingencies (Additional Information) (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Loss Contingencies [Line Items] | |||
Operating leases rent expense | $ 5.1 | $ 6.4 | $ 4.0 |
Lydall Gerhardi | Unfavorable Regulatory Action | |||
Loss Contingencies [Line Items] | |||
Maximum Fine Percentage of Revenue | 10.00% |
Earnings Per Share (Reconciliation of Weighted Average Shares Used to Determine Basic and Diluted Earnings Per Share) (Detail) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Earnings Per Share [Abstract] | |||
Basic average common shares outstanding (in shares) | 16,746 | 16,662 | 16,570 |
Effect of dilutive options and restricted stock awards (in shares) | 338 | 341 | 296 |
Diluted average common shares outstanding (in shares) | 17,084 | 17,003 | 16,866 |
Earnings Per Share (Additional Information) (Detail) - shares shares in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Earnings Per Share [Abstract] | |||
Shares excluded from computation of diluted earnings per share (less than in 0.1 million in 2014) | 0.1 | 0.1 | 0.2 |
Quarterly Financial Information (Unaudited) (Summary of Quarterly Financial Results) (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 131,398 | $ 131,240 | $ 134,561 | $ 127,306 | $ 127,583 | $ 134,227 | $ 148,793 | $ 125,226 | $ 524,505 | $ 535,829 | $ 397,969 |
Gross profit | 29,217 | 31,691 | 33,889 | 27,700 | 25,562 | 28,564 | 34,653 | 26,199 | 122,497 | 114,978 | 85,225 |
Net income | $ 5,319 | $ 11,186 | $ 10,817 | $ 18,937 | $ 5,733 | $ 4,158 | $ 8,240 | $ 3,716 | $ 46,259 | $ 21,847 | $ 19,155 |
Earnings per common share: | |||||||||||
Basic (in USD per share) | $ 0.32 | $ 0.67 | $ 0.65 | $ 1.12 | $ 0.34 | $ 0.25 | $ 0.50 | $ 0.22 | $ 2.76 | $ 1.31 | $ 1.16 |
Diluted (in USD per share) | $ 0.31 | $ 0.66 | $ 0.64 | $ 1.11 | $ 0.34 | $ 0.24 | $ 0.49 | $ 0.22 | $ 2.71 | $ 1.28 | $ 1.14 |
Changes In Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning Balance | $ 212,599 | $ 200,087 | $ 174,496 | ||||
Ending Balance | 245,225 | 212,599 | 200,087 | ||||
Foreign Currency Translation Adjustment | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (6,586) | 6,128 | 3,178 | ||||
Other comprehensive income (loss) | $ (10,334) | (12,714) | 2,950 | ||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |||||
Ending Balance | $ (16,920) | (6,586) | 6,128 | ||||
Defined Benefit Pension Adjustment | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (17,575) | (14,972) | [1] | (21,544) | |||
Other comprehensive income (loss) | (637) | (6,099) | 5,909 | ||||
Amounts reclassified from accumulated other comprehensive loss | [1] | 547 | 3,496 | 663 | |||
Ending Balance | (17,665) | (17,575) | (14,972) | [1] | |||
Total Accumulated Other Comprehensive (Loss) Income | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (24,161) | (8,844) | (18,366) | ||||
Other comprehensive income (loss) | (10,971) | (18,813) | 8,859 | ||||
Amounts reclassified from accumulated other comprehensive loss | 547 | 3,496 | 663 | ||||
Ending Balance | $ (34,585) | $ (24,161) | $ (8,844) | ||||
|
Changes in Accumulated Other Comprehensive Income (Loss) (Additional Information) (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Actuarial gains (losses), net of tax | $ (0.6) | $ (6.1) | $ 5.9 |
Actuarial (losses) gains, tax expense (benefit) | (0.4) | (3.7) | 3.6 |
Amortization of actuarial losses, net of tax | 0.5 | 3.5 | 0.7 |
Amortization of actuarial losses, tax expense (benefit) | $ (0.3) | (2.1) | $ (0.4) |
Pension settlement costs, net of tax | 3.0 | ||
Pension settlement costs, tax expense (benefit) | $ (1.9) |
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||||||||||||
Allowance for doubtful receivables | |||||||||||||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||||||||||||
Beginning of Period | $ 709 | [1] | $ 480 | [1] | $ 469 | ||||||||||||
Charges to Costs and Expenses | 855 | 384 | 60 | ||||||||||||||
Charges (Deductions) to Other Accounts | [2] | (53) | (39) | 15 | |||||||||||||
Deductions | (260) | [2] | (116) | [1] | (64) | [2] | |||||||||||
End of Period | [1] | 1,251 | 709 | 480 | |||||||||||||
Tax valuation allowances | |||||||||||||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||||||||||||
Beginning of Period | 3,727 | [3] | 3,315 | [3] | 3,587 | ||||||||||||
Charges to Costs and Expenses | 1,615 | 1,120 | 855 | ||||||||||||||
Charges (Deductions) to Other Accounts | (272) | [2],[4] | 193 | 0 | |||||||||||||
Deductions | (763) | [2],[5] | (901) | (1,127) | [3] | ||||||||||||
End of Period | [3] | $ 4,307 | $ 3,727 | $ 3,315 | |||||||||||||
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