[a] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Nevada | 87-0448736 |
(State or other jurisdiction | (IRS Employer |
of incorporation or organization) | Identification No.) |
2425 South Yukon, Tulsa, Oklahoma 74107 | |
(Address of principal executive offices) (Zip Code) |
Large accelerated filer [ü] | Accelerated filer [ ] |
Non-accelerated filer [ ] (Do not check if a smaller reporting company) | Smaller reporting company [ ] |
Emerging growth company [ ] |
AAON, Inc. and Subsidiaries | |||||||
Consolidated Balance Sheets | |||||||
(Unaudited) | |||||||
June 30, 2018 | December 31, 2017 | ||||||
Assets | (in thousands, except share and per share data) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 15,854 | $ | 21,457 | |||
Certificates of deposit | 5,520 | 2,880 | |||||
Investments held to maturity at amortized cost | 2,955 | 6,077 | |||||
Accounts receivable, net | 53,418 | 50,338 | |||||
Income tax receivable | 4,971 | 1,643 | |||||
Note receivable | 27 | 28 | |||||
Inventories, net | 70,467 | 70,786 | |||||
Prepaid expenses and other | 1,453 | 518 | |||||
Total current assets | 154,665 | 153,727 | |||||
Property, plant and equipment: | |||||||
Land | 2,794 | 2,233 | |||||
Buildings | 96,043 | 92,075 | |||||
Machinery and equipment | 205,464 | 184,316 | |||||
Furniture and fixtures | 14,747 | 13,714 | |||||
Total property, plant and equipment | 319,048 | 292,338 | |||||
Less: Accumulated depreciation | 157,927 | 149,963 | |||||
Property, plant and equipment, net | 161,121 | 142,375 | |||||
Intangible assets, net | 622 | — | |||||
Goodwill | 3,229 | — | |||||
Note receivable | 634 | 678 | |||||
Total assets | $ | 320,271 | $ | 296,780 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Revolving credit facility | $ | — | $ | — | |||
Accounts payable | 25,127 | 10,967 | |||||
Dividends payable | 8,400 | — | |||||
Accrued liabilities | 38,146 | 39,098 | |||||
Total current liabilities | 71,673 | 50,065 | |||||
Deferred revenue | 1,546 | 1,512 | |||||
Deferred tax liabilities | 8,415 | 7,977 | |||||
Donations | 200 | — | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued | — | — | |||||
Common stock, $.004 par value, 100,000,000 shares authorized, 52,290,064 and 52,422,801 issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 209 | 210 | |||||
Additional paid-in capital | — | — | |||||
Retained earnings | 238,228 | 237,016 | |||||
Total stockholders' equity | 238,437 | 237,226 | |||||
Total liabilities and stockholders' equity | $ | 320,271 | $ | 296,780 |
AAON, Inc. and Subsidiaries | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands, except share and per share data) | |||||||||||||||
Net sales | $ | 109,588 | $ | 101,326 | $ | 208,670 | $ | 187,404 | |||||||
Cost of sales | 82,003 | 69,648 | 165,695 | 130,740 | |||||||||||
Gross profit | 27,585 | 31,678 | 42,975 | 56,664 | |||||||||||
Selling, general and administrative expenses | 13,086 | 11,971 | 23,305 | 22,501 | |||||||||||
(Gain) loss on disposal of assets | (4 | ) | 48 | (11 | ) | 47 | |||||||||
Income from operations | 14,503 | 19,659 | 19,681 | 34,116 | |||||||||||
Interest income, net | 67 | 71 | 135 | 131 | |||||||||||
Other (expense) income, net | 12 | 34 | 6 | 45 | |||||||||||
Income before taxes | 14,582 | 19,764 | 19,822 | 34,292 | |||||||||||
Income tax provision | 2,891 | 5,970 | 3,871 | 10,281 | |||||||||||
Net income | $ | 11,691 | $ | 13,794 | $ | 15,951 | $ | 24,011 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.22 | $ | 0.26 | $ | 0.30 | $ | 0.46 | |||||||
Diluted | $ | 0.22 | $ | 0.26 | $ | 0.30 | $ | 0.45 | |||||||
Cash dividends declared per common share: | $ | 0.16 | $ | 0.13 | $ | 0.16 | $ | 0.13 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 52,383,842 | 52,615,366 | 52,348,912 | 52,624,782 | |||||||||||
Diluted | 52,717,787 | 53,151,134 | 52,754,045 | 53,176,425 |
AAON, Inc. and Subsidiaries | ||||||||||||||||||
Consolidated Statements of Stockholders' Equity | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Common Stock | Paid-in | Retained | ||||||||||||||||
Shares | Amount | Capital | Earnings | Total | ||||||||||||||
(in thousands) | ||||||||||||||||||
Balances at December 31, 2017 | 52,422 | $ | 210 | $ | — | $ | 237,016 | $ | 237,226 | |||||||||
Net income | — | — | — | 15,951 | 15,951 | |||||||||||||
Stock options exercised and restricted | 226 | 1 | 2,298 | — | 2,299 | |||||||||||||
stock awards granted | ||||||||||||||||||
Share-based compensation | — | — | 3,699 | — | 3,699 | |||||||||||||
Stock repurchased and retired | (358 | ) | (2 | ) | (5,997 | ) | (6,348 | ) | (12,347 | ) | ||||||||
Dividends | — | — | — | (8,391 | ) | (8,391 | ) | |||||||||||
Balances at June 30, 2018 | 52,290 | $ | 209 | $ | — | $ | 238,228 | $ | 238,437 |
AAON, Inc. and Subsidiaries | |||||||
Consolidated Statements of Cash Flows | |||||||
(Unaudited) | |||||||
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Operating Activities | (in thousands) | ||||||
Net income | $ | 15,951 | $ | 24,011 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 8,438 | 7,281 | |||||
Amortization of bond premiums | 8 | 29 | |||||
Provision for losses on accounts receivable, net of adjustments | 89 | 141 | |||||
Provision for excess and obsolete inventories | 299 | 260 | |||||
Share-based compensation | 3,699 | 3,529 | |||||
(Gain) loss on disposition of assets | (11 | ) | 47 | ||||
Foreign currency transaction gain | 15 | (24 | ) | ||||
Interest income on note receivable | 14 | (13 | ) | ||||
Deferred income taxes | 438 | 364 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (2,087 | ) | (254 | ) | |||
Income taxes | (3,328 | ) | 5,430 | ||||
Inventories | 1,400 | (15,983 | ) | ||||
Prepaid expenses and other | (935 | ) | (272 | ) | |||
Accounts payable | 12,974 | 6,801 | |||||
Deferred revenue | (931 | ) | 118 | ||||
Accrued liabilities and donations | 213 | 2,295 | |||||
Net cash provided by operating activities | 36,246 | 33,760 | |||||
Investing Activities | |||||||
Capital expenditures | (25,925 | ) | (16,847 | ) | |||
Cash paid in business combination | (6,377 | ) | — | ||||
Proceeds from sale of property, plant and equipment | 11 | 7 | |||||
Investment in certificates of deposits | (7,200 | ) | (5,280 | ) | |||
Maturities of certificates of deposits | 4,560 | 5,272 | |||||
Purchases of investments held to maturity | (9,001 | ) | (13,241 | ) | |||
Maturities of investments | 11,620 | 14,063 | |||||
Proceeds from called investments | 495 | 500 | |||||
Principal payments from note receivable | 16 | 26 | |||||
Net cash used in investing activities | (31,801 | ) | (15,500 | ) | |||
Financing Activities | |||||||
Stock options exercised | 2,299 | 1,573 | |||||
Repurchase of stock | (11,539 | ) | (9,368 | ) | |||
Employee taxes paid by withholding shares | (808 | ) | (1,066 | ) | |||
Net cash used in financing activities | (10,048 | ) | (8,861 | ) | |||
Net (decrease) increase in cash and cash equivalents | (5,603 | ) | 9,399 | ||||
Cash and cash equivalents, beginning of period | 21,457 | 24,153 | |||||
Cash and cash equivalents, end of period | $ | 15,854 | $ | 33,552 |
• | Level 1: Quoted prices in active markets for identical assets and liabilities that we have the ability to access at the measurement date. |
• | Level 2: Inputs (other than quoted prices included within Level 1) that are either directly or indirectly observable for the asset or liability, including (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in inactive markets, (iii) inputs other than quoted prices that are observable for the asset or liability, and (iv) inputs that are derived from observable market data by correlation or other means. |
• | Level 3: Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. Items categorized in Level 3 include the estimated business combination fair values of property, plant and equipment, intangible assets and goodwill. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Rooftop Units | $ | 83,665 | $ | 80,792 | $ | 158,480 | $ | 147,664 | |||||||
Condensing Units | 4,855 | 5,217 | 9,136 | 9,432 | |||||||||||
Air Handlers | 6,553 | 6,256 | 11,793 | 11,389 | |||||||||||
Outdoor Mechanical Rooms | 894 | 538 | 1,867 | 1,742 | |||||||||||
Water Source Heat Pumps | 2,741 | 1,845 | 7,128 | 3,699 | |||||||||||
Other | 10,880 | 6,678 | 20,266 | 13,478 | |||||||||||
Net Sales | $ | 109,588 | $ | 101,326 | $ | 208,670 | $ | 187,404 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Rooftop Units | 4,175 | 4,173 | 7,643 | 7,647 | |||||||
Condensing Units | 625 | 687 | 1,036 | 1,219 | |||||||
Air Handlers | 818 | 710 | 1,354 | 1,323 | |||||||
Outdoor Mechanical Rooms | 13 | 15 | 27 | 39 | |||||||
Water Source Heat Pumps | 1,004 | 518 | 2,618 | 896 | |||||||
Total Units | 6,635 | 6,103 | 12,678 | 11,124 |
Estimated Allocation as of March 31, 2018 | Revision | Final Allocation | |||||||||
(in thousands) | |||||||||||
Accounts receivable | $ | 1,073 | $ | 9 | $ | 1,082 | |||||
Inventories | 1,442 | (62 | ) | 1,380 | |||||||
Property, plant and equipment | 133 | 207 | 340 | ||||||||
Intellectual property | — | 700 | 700 | ||||||||
Goodwill | 3,677 | (448 | ) | 3,229 | |||||||
Assumed current liabilities | (325 | ) | (29 | ) | (354 | ) | |||||
Consideration paid | $ | 6,000 | $ | 377 | $ | 6,377 |
Amortized Cost | Gross Unrealized Gain | Gross Unrealized (Loss) | Fair Value (Level 1) | ||||||||||||
June 30, 2018: | (in thousands) | ||||||||||||||
Current assets: | |||||||||||||||
Investments held to maturity | $ | 2,955 | $ | — | $ | (3 | ) | $ | 2,952 | ||||||
Non current assets: | |||||||||||||||
Investments held to maturity | — | — | — | — | |||||||||||
Total | $ | 2,955 | $ | — | $ | (3 | ) | $ | 2,952 | ||||||
December 31, 2017: | |||||||||||||||
Current assets: | |||||||||||||||
Investments held to maturity | $ | 6,077 | $ | — | $ | (6 | ) | $ | 6,071 | ||||||
Non current assets: | |||||||||||||||
Investments held to maturity | — | — | — | — | |||||||||||
Total | $ | 6,077 | $ | — | $ | (6 | ) | $ | 6,071 |
June 30, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Accounts receivable | $ | 53,626 | $ | 50,457 | |||
Less: Allowance for doubtful accounts | (208 | ) | (119 | ) | |||
Total, net | $ | 53,418 | $ | 50,338 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
Allowance for doubtful accounts: | (in thousands) | ||||||||||||||
Balance, beginning of period | $ | 108 | $ | 274 | $ | 119 | $ | 90 | |||||||
Provisions for losses on accounts receivables, net of recoveries | 109 | (43 | ) | 98 | 141 | ||||||||||
Accounts receivable written off | (9 | ) | (150 | ) | (9 | ) | (150 | ) | |||||||
Balance, end of period | $ | 208 | $ | 81 | $ | 208 | $ | 81 |
June 30, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Raw materials | $ | 62,272 | $ | 57,784 | |||
Work in process | 3,414 | 5,957 | |||||
Finished goods | 6,188 | 8,163 | |||||
71,874 | 71,904 | ||||||
Less: Allowance for excess and obsolete inventories | (1,407 | ) | (1,118 | ) | |||
Total, net | $ | 70,467 | $ | 70,786 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
Allowance for excess and obsolete inventories: | (in thousands) | ||||||||||||||
Balance, beginning of period | $ | 1,209 | $ | 1,442 | $ | 1,118 | $ | 1,382 | |||||||
Provisions for excess and obsolete inventories | 217 | 200 | 318 | 260 | |||||||||||
Inventories written off | (19 | ) | — | (29 | ) | — | |||||||||
Balance, end of period | $ | 1,407 | $ | 1,642 | $ | 1,407 | $ | 1,642 |
June 30, 2018 | December 31, 2017 | |||||||
(in thousands) | ||||||||
Intellectual property | $ | 700 | $ | — | ||||
Less: Accumulated amortization | (78 | ) | — | |||||
Total, net | $ | 622 | $ | — |
Three months ended | Six months ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Amortization Expense | $ | 78 | $ | — | $ | 78 | $ | — |
Three months ended | Six months ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
Supplemental disclosures: | (in thousands) | ||||||||||||||
Interest paid | $ | — | $ | — | $ | 5 | $ | — | |||||||
Income taxes paid | $ | 451 | $ | 4,127 | $ | 6,683 | $ | 4,488 | |||||||
Non-cash investing and financing activities: | |||||||||||||||
Non-cash capital expenditures | $ | (1,604 | ) | $ | (874 | ) | $ | (871 | ) | $ | 224 | ||||
Dividends declared | 8,400 | 6,849 | 8,400 | 6,849 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
Warranty accrual: | (in thousands) | ||||||||||||||
Balance, beginning of period | $ | 10,788 | $ | 7,812 | $ | 10,483 | $ | 7,936 | |||||||
Payments made | (2,504 | ) | (2,312 | ) | (3,723 | ) | (3,654 | ) | |||||||
Provisions | 3,174 | 3,102 | 4,698 | 4,320 | |||||||||||
Balance, end of period | $ | 11,458 | $ | 8,602 | $ | 11,458 | $ | 8,602 | |||||||
Warranty expense: | $ | 3,174 | $ | 3,102 | $ | 4,698 | $ | 4,320 |
June 30, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Warranty | $ | 11,458 | $ | 10,483 | |||
Due to representatives | 10,494 | 13,086 | |||||
Payroll | 3,943 | 4,456 | |||||
Profit sharing | 1,607 | 2,034 | |||||
Worker's compensation | 619 | 593 | |||||
Medical self-insurance | 980 | 725 | |||||
Customer prepayments | 2,907 | 2,838 | |||||
Donations | 846 | 588 | |||||
Employee vacation time | 3,008 | 2,688 | |||||
Other | 2,284 | 1,607 | |||||
Total | $ | 38,146 | $ | 39,098 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Current | $ | 2,873 | $ | 6,326 | $ | 3,433 | $ | 9,917 | |||||||
Deferred | 18 | (356 | ) | 438 | 364 | ||||||||||
$ | 2,891 | $ | 5,970 | $ | 3,871 | $ | 10,281 |
Three months ended | Six months ended | ||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||
Federal statutory rate | 21.0 | % | 35.0 | % | 21.0 | % | 35.0 | % | |||
State income taxes, net of Federal benefit | 6.8 | 4.5 | 6.8 | 4.0 | |||||||
Domestic manufacturing deduction | — | (3.1 | ) | — | (3.0 | ) | |||||
Excess tax benefits | (2.4 | ) | (4.8 | ) | (4.1 | ) | (5.8 | ) | |||
Indian Depreciation | (4.4 | ) | — | (3.2 | ) | — | |||||
Other | (1.2 | ) | (1.4 | ) | (1.0 | ) | (0.2 | ) | |||
Effective tax rate | 19.8 | % | 30.2 | % | 19.5 | % | 30.0 | % |
• | Reducing the corporate rate to 21 percent |
• | Doubling bonus depreciation to 100 percent for five years |
• | Further limitations on executive compensation deductions |
• | Eliminating the domestic manufacturing deduction |
Six months ended | |||||||
June 30, 2018 | June 30, 2017 | ||||||
Directors and Officers: | |||||||
Expected dividend rate | $ | 0.26 | $ | 0.26 | |||
Expected volatility | 29.73 | % | 30.81 | % | |||
Risk-free interest rate | 2.20 | % | 1.90 | % | |||
Expected life (in years) | 5.0 | 5.0 | |||||
Employees: | |||||||
Expected dividend rate | $ | 0.26 | $ | 0.26 | |||
Expected volatility | 29.82 | % | 30.75 | % | |||
Risk-free interest rate | 2.48 | % | 1.89 | % | |||
Expected life (in years) | 5.0 | 5.0 |
Range of Exercise Prices | Number of Shares | Weighted Average Remaining Contractual Life (in years) | Weighted Average Exercise Price | Intrinsic Value (in thousands) | |||||||||
$4.54 - $32.80 | 425,351 | 5.59 | $ | 17.47 | $ | 6,711 | |||||||
$32.85 - $34.10 | 67,654 | 5.18 | 34.02 | 1 | |||||||||
$34.15 - $39.00 | 21,607 | 8.73 | 35.10 | — | |||||||||
Total | 514,612 | 5.67 | $ | 20.39 | $ | 6,712 |
Range of Exercise Prices | Number of Shares | Weighted Average Remaining Contractual Life (in years) | Weighted Average Exercise Price | Intrinsic Value (in thousands) | ||||||||||
$4.54 - $22.76 | 378,504 | 4.85 | $ | 10.98 | $ | 9,792 | ||||||||
$23.57 - $32.80 | 33,985 | 7.95 | 25.34 | 391 | ||||||||||
$32.85 - $36.30 | — | — | — | — | ||||||||||
Total | 412,489 | 5.10 | $ | 12.16 | $ | 10,183 |
Shares | Weighted Average Exercise Price | |||||
Outstanding at December 31, 2017 | 1,567,109 | $ | 25.27 | |||
Granted | 1,439,020 | 34.51 | ||||
Exercised | (159,143 | ) | 14.43 | |||
Forfeited or Expired | (164,424 | ) | 33.19 | |||
Outstanding at June 30, 2018 | 2,682,562 | $ | 30.40 | |||
Exercisable at June 30, 2018 | 514,612 | $ | 20.39 |
Shares | Weighted Average Grant Date Fair Value | |||||
Unvested at December 31, 2017 | 341,800 | $ | 25.52 | |||
Granted | 104,175 | 32.27 | ||||
Vested | (97,961 | ) | 25.04 | |||
Forfeited | (31,834 | ) | 28.06 | |||
Unvested at June 30, 2018 | 316,180 | $ | 27.64 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
Grant date fair value of awards during the period: | (in thousands) | ||||||||||||||
Options | $ | 53 | $ | 633 | $ | 12,580 | $ | 3,507 | |||||||
Restricted stock | 1,247 | 1,582 | 3,361 | 4,182 | |||||||||||
Total | $ | 1,300 | $ | 2,215 | $ | 15,941 | $ | 7,689 |
Share-based compensation expense: | |||||||||||||||
Options | $ | 1,368 | $ | 703 | $ | 2,126 | $ | 1,430 | |||||||
Restricted stock | 607 | 1,181 | 1,573 | 2,099 | |||||||||||
Total | $ | 1,975 | $ | 1,884 | $ | 3,699 | $ | 3,529 |
Income tax benefit/(deficiency) related to share-based compensation: | |||||||||||||||
Options | $ | 300 | $ | 494 | $ | 601 | $ | 1,285 | |||||||
Restricted stock | 57 | 432 | 219 | 705 | |||||||||||
Total | $ | 357 | $ | 926 | $ | 820 | $ | 1,990 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
(in thousands, except share and per share data) | |||||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 11,691 | $ | 13,794 | $ | 15,951 | $ | 24,011 | |||||||
Denominator: | |||||||||||||||
Basic weighted average shares | 52,383,842 | 52,615,366 | 52,348,912 | 52,624,782 | |||||||||||
Effect of dilutive stock options and restricted stock | 333,945 | 535,768 | 405,133 | 551,643 | |||||||||||
Diluted weighted average shares | 52,717,787 | 53,151,134 | 52,754,045 | 53,176,425 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.22 | $ | 0.26 | $ | 0.30 | $ | 0.46 | |||||||
Diluted | $ | 0.22 | $ | 0.26 | $ | 0.30 | $ | 0.45 | |||||||
Anti-dilutive shares: | |||||||||||||||
Shares | 2,161,244 | 760,438 | 1,919,008 | 772,202 |
Six months ended June 30, | Inception to date | ||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||
Program | Shares | Total $ | $ per share | Shares | Total $ | $ per share | Shares | Total $ | $ per share | ||||||||||||||||
Open market | 104,155 | $ | 3,427,879 | $ | 32.91 | 8,676 | $ | 283,654 | $ | 32.69 | 3,947,650 | $ | 64,659,994 | $ | 16.38 | ||||||||||
401(k) | 231,387 | 8,108,190 | 35.04 | 258,051 | 9,083,606 | 35.20 | 6,781,410 | 90,176,995 | 13.30 | ||||||||||||||||
Directors and employees | 23,140 | 810,505 | 35.03 | 30,158 | 1,066,450 | 35.36 | 1,942,650 | 18,088,538 | 9.31 | ||||||||||||||||
Total | 358,682 | $ | 12,346,574 | $ | 34.42 | 296,885 | $ | 10,433,710 | $ | 35.14 | 12,671,710 | $ | 172,925,527 | $ | 13.65 |
Declaration Date | Record Date | Payment Date | Dividend per Share | ||
May 16, 2017 | June 9, 2017 | July 7, 2017 | $ | 0.13 | |
November 7, 2017 | November 30, 2017 | December 21, 2017 | $ | 0.13 | |
May 18, 2018 | June 8, 2018 | July 6, 2018 | $ | 0.16 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Sales to affiliates | $ | 447 | $ | 466 | $ | 592 | $ | 1,150 | |||||||
Payments to affiliates | 101 | 305 | 111 | 308 |
June 30, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Due from affiliates | $ | 138 | $ | 9 | |||
Due to affiliates | 12 | — |
• | Overall units sold increased approximately 14.0% as compared to the same period last year. |
• | We saw significant improvement in our gross margin during the second quarter. |
• | We invested $25.9 million in capital expenditures in connection with the construction of our new research and development lab, water source heat pump line and other internal projects. |
• | Our order intake increased resulting in a record high backlog. |
• | Completed the strategic acquisition of Wattmaster Controls, Inc. |
6/30/2018 | 12/31/2017 | 6/30/2017 | ||||||||
(in thousands) | ||||||||||
$ | 156,565 | $ | 81,226 | $ | 83,528 |
Three Months Ended June 30, | |||||
2018 | 2017 | ||||
Rooftop Units | 4,175 | 4,173 | |||
Condensing Units | 625 | 687 | |||
Air Handlers | 818 | 710 | |||
Outdoor Mechanical Rooms | 13 | 15 | |||
Water Source Heat Pumps | 1,004 | 518 | |||
Total Units | 6,635 | 6,103 |
Three Months Ended June 30, | ||||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
(in thousands, except unit data) | ||||||||||||||
Net sales | $ | 109,588 | $ | 101,326 | $ | 8,262 | 8.2 | % | ||||||
Total units | 6,635 | 6,103 | 532 | 8.7 | % |
Three Months Ended June 30, | Percent of Sales | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
(in thousands) | ||||||||||||||
Cost of sales | $ | 82,003 | $ | 69,648 | 74.8 | % | 68.7 | % | ||||||
Gross profit | 27,585 | 31,678 | 25.2 | % | 31.3 | % |
2018 | 2017 | % Change | |||||||||
Copper | $ | 3.82 | $ | 3.37 | 13.4 | % | |||||
Galvanized Steel | $ | 0.47 | $ | 0.41 | 14.6 | % | |||||
Stainless Steel | $ | 1.26 | $ | 1.18 | 6.8 | % | |||||
Aluminum | $ | 1.79 | $ | 1.68 | 6.5 | % |
Three Months Ended June 30, | Percent of Sales | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
(in thousands) | ||||||||||||||
Warranty | $ | 3,174 | $ | 3,102 | 2.9 | % | 3.1 | % | ||||||
Profit Sharing | 1,607 | 2,154 | 1.5 | % | 2.1 | % | ||||||||
Salaries & Benefits | 3,166 | 2,427 | 2.9 | % | 2.4 | % | ||||||||
Stock Compensation | 1,071 | 1,367 | 1.0 | % | 1.3 | % | ||||||||
Advertising | 212 | 171 | 0.2 | % | 0.2 | % | ||||||||
Depreciation | 216 | 154 | 0.2 | % | 0.2 | % | ||||||||
Insurance | 247 | 205 | 0.2 | % | 0.2 | % | ||||||||
Professional Fees | 591 | 262 | 0.5 | % | 0.3 | % | ||||||||
Donations | 205 | 189 | 0.2 | % | 0.2 | % | ||||||||
Bad Debt Expense | 110 | (43 | ) | 0.1 | % | — | % | |||||||
Other | 2,487 | 1,983 | 2.3 | % | 2.0 | % | ||||||||
Total SG&A | $ | 13,086 | $ | 11,971 | 11.9 | % | 11.8 | % |
Three Months Ended June 30, | Effective Tax Rate | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
(in thousands) | ||||||||||||||
Income tax provision | $ | 2,891 | $ | 5,970 | 19.8 | % | 30.2 | % |
Six Months Ended June 30, | |||||
2018 | 2017 | ||||
Rooftop Units | 7,643 | 7,647 | |||
Condensing Units | 1,036 | 1,219 | |||
Air Handlers | 1,354 | 1,323 | |||
Outdoor Mechanical Rooms | 27 | 39 | |||
Water Source Heat Pumps | 2,618 | 896 | |||
Total Units | 12,678 | 11,124 |
Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
(in thousands, except unit data) | ||||||||||||||
Net sales | $ | 208,670 | $ | 187,404 | $ | 21,266 | 11.3 | % | ||||||
Total units | 12,678 | 11,124 | 1,554 | 14.0 | % |
Six Months Ended June 30, | Percent of Sales | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
(in thousands) | ||||||||||||||
Cost of sales | $ | 165,695 | $ | 130,740 | 79.4 | % | 69.8 | % | ||||||
Gross profit | 42,975 | 56,664 | 20.6 | % | 30.2 | % |
2018 | 2017 | % Change | |||||||||
Copper | $ | 3.82 | $ | 3.37 | 13.4 | % | |||||
Galvanized Steel | $ | 0.47 | $ | 0.41 | 14.6 | % | |||||
Stainless Steel | $ | 1.26 | $ | 1.18 | 6.8 | % | |||||
Aluminum | $ | 1.79 | $ | 1.68 | 6.5 | % |
Six Months Ended June 30, | Percent of Sales | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
(in thousands) | ||||||||||||||
Warranty | $ | 4,698 | $ | 4,320 | 2.3 | % | 2.3 | % | ||||||
Profit Sharing | 2,229 | 3,810 | 1.1 | % | 2.0 | % | ||||||||
Salaries & Benefits | 6,442 | 5,428 | 3.1 | % | 2.9 | % | ||||||||
Stock Compensation | 2,068 | 2,445 | 1.0 | % | 1.3 | % | ||||||||
Advertising | 434 | 1,137 | 0.2 | % | 0.6 | % | ||||||||
Depreciation | 434 | 312 | 0.2 | % | 0.2 | % | ||||||||
Insurance | 605 | 449 | 0.3 | % | 0.2 | % | ||||||||
Professional Fees | 1,373 | 839 | 0.7 | % | 0.4 | % | ||||||||
Donations | 703 | 403 | 0.3 | % | 0.2 | % | ||||||||
Bad Debt Expense | 99 | 141 | — | % | 0.1 | % | ||||||||
Other | 4,220 | 3,217 | 2.0 | % | 1.7 | % | ||||||||
Total SG&A | $ | 23,305 | $ | 22,501 | 11.2 | % | 12.0 | % |
Six Months Ended June 30, | Effective Tax Rate | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
(in thousands) | ||||||||||||||
Income tax provision | $ | 3,871 | $ | 10,281 | 19.5 | % | 30.0 | % |
Six Months Ended June 30, | Inception to date | ||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||
Program | Shares | Total $ | $ per share | Shares | Total $ | $ per share | Shares | Total $ | $ per share | ||||||||||||||||
Open market | 104,155 | $ | 3,427,879 | $ | 32.91 | 8,676 | $ | 283,654 | $ | 32.69 | 3,947,650 | $ | 64,659,994 | $ | 16.38 | ||||||||||
401(k) | 231,387 | 8,108,190 | 35.04 | 258,051 | 9,083,606 | 35.20 | 6,781,410 | 90,176,995 | 13.30 | ||||||||||||||||
Directors and employees | 23,140 | 810,505 | 35.03 | 30,158 | 1,066,450 | 35.36 | 1,942,650 | 18,088,538 | 9.31 | ||||||||||||||||
Total | 358,682 | $ | 12,346,574 | $ | 34.42 | 296,885 | $ | 10,433,710 | $ | 35.14 | 12,671,710 | $ | 172,925,527 | $ | 13.65 |
Declaration Date | Record Date | Payment Date | Dividend per Share | ||
May 16, 2017 | June 9, 2017 | July 7, 2017 | $ | 0.13 | |
November 7, 2017 | November 30, 2017 | December 21, 2017 | $ | 0.13 | |
May 18, 2018 | June 8, 2018 | July 6, 2018 | $ | 0.16 |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Operating Activities | |||||||
Net Income | $ | 15,951 | $ | 24,011 | |||
Income statement adjustments, net | 12,989 | 11,614 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (2,087 | ) | (254 | ) | |||
Income taxes | (3,328 | ) | 5,430 | ||||
Inventories | 1,400 | (15,983 | ) | ||||
Prepaid expenses and other | (935 | ) | (272 | ) | |||
Accounts payable | 12,974 | 6,801 | |||||
Deferred revenue | (931 | ) | 118 | ||||
Accrued liabilities & donations | 213 | 2,295 | |||||
Net cash provided by operating activities | 36,246 | 33,760 | |||||
Investing Activities | |||||||
Capital expenditures | (25,925 | ) | (16,847 | ) | |||
Cash paid in business combination | (6,377 | ) | — | ||||
Purchases of investments | (16,201 | ) | (18,521 | ) | |||
Maturities of investments and proceeds from called investments | 16,675 | 19,835 | |||||
Other | 27 | 33 | |||||
Net cash used in investing activities | (31,801 | ) | (15,500 | ) | |||
Financing Activities | |||||||
Stock options exercised | 2,299 | 1,573 | |||||
Repurchase of stock | (11,539 | ) | (9,368 | ) | |||
Employee taxes paid by withholding shares | (808 | ) | (1,066 | ) | |||
Net cash used in financing activities | $ | (10,048 | ) | $ | (8,861 | ) |
ISSUER PURCHASES OF EQUITY SECURITIES | |||||||||||||
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid Per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that may yet be Purchased under the Plans or Programs | |||||||||
April 2018 | 35,938 | $ | 35.48 | 35,938 | — | ||||||||
May 2018 | 41,882 | 30.32 | 41,882 | — | |||||||||
June 2018 | 147,167 | 32.99 | 147,167 | — | |||||||||
Total | 224,987 | $ | 32.89 | 224,987 | — |
(a) Exhibits | |||
(i) | Section 302 Certification of CEO | ||
(ii) | Section 302 Certification of CFO | ||
(iii) | Section 1350 Certification of CEO | ||
(iv) | Section 1350 Certification of CFO |
AAON, INC. | ||
Dated: 8/2/2018 | By: | /s/ Norman H. Asbjornson |
Norman H. Asbjornson Chief Executive Officer | ||
Dated: 8/2/2018 | By: | /s/ Scott M. Asbjornson |
Scott M. Asbjornson Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of AAON, 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; and |
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; and |
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 controls 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 registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 2, 2018 | |
/s/ Norman H. Asbjornson | ||
Norman H. Asbjornson | ||
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of AAON, 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; and |
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; and |
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 controls 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 registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 2, 2018 | |
/s/ Scott M. Asbjornson | ||
Scott M. Asbjornson | ||
Chief Financial Officer |
August 2, 2018 | |
/s/ Norman H. Asbjornson | |
Norman H. Asbjornson | |
Chief Executive Officer |
August 2, 2018 | |
/s/ Scott M. Asbjornson | |
Scott M. Asbjornson | |
Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jul. 31, 2018 |
|
Document And Entity Information | ||
Entity Registrant Name | AAON INC | |
Entity Central Index Key | 0000824142 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 52,264,765 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2018 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Stockholders' equity: | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.004 | $ 0.004 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 52,290,064 | 52,422,801 |
Common stock, shares outstanding | 52,290,064 | 52,422,801 |
Consolidated Statements of Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Net Sales | $ 109,588 | $ 101,326 | $ 208,670 | $ 187,404 |
Gross profit | 27,585 | 31,678 | 42,975 | 56,664 |
Selling, general and administrative expenses | 13,086 | 11,971 | 23,305 | 22,501 |
(Gain) loss on disposal of assets | (4) | 48 | (11) | 47 |
Income from operations | 14,503 | 19,659 | 19,681 | 34,116 |
Interest income, net | 67 | 71 | 135 | 131 |
Other (expense) income, net | 12 | 34 | 6 | 45 |
Income before taxes | 14,582 | 19,764 | 19,822 | 34,292 |
Income tax provision | 2,891 | 5,970 | 3,871 | 10,281 |
Net income | $ 11,691 | $ 13,794 | $ 15,951 | $ 24,011 |
Earnings per share: | ||||
Basic (usd per share) | $ 0.22 | $ 0.26 | $ 0.30 | $ 0.46 |
Diluted (usd per share) | 0.22 | 0.26 | 0.30 | 0.45 |
Cash dividends declared per common share: | $ 0.16 | $ 0.13 | $ 0.16 | $ 0.13 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 52,383,842 | 52,615,366 | 52,348,912 | 52,624,782 |
Diluted (in shares) | 52,717,787 | 53,151,134 | 52,754,045 | 53,176,425 |
Product | ||||
Net Sales | $ 109,588 | $ 101,326 | $ 208,670 | $ 187,404 |
Cost of sales | $ 82,003 | $ 69,648 | $ 165,695 | $ 130,740 |
Consolidated Statements of Stockholders' Equity - 6 months ended Jun. 30, 2018 - USD ($) shares in Thousands, $ in Thousands |
Total |
Common Stock |
Paid-in Capital |
Retained Earnings |
---|---|---|---|---|
Balance at Dec. 31, 2017 | $ 237,226 | $ 210 | $ 0 | $ 237,016 |
Balance (in shares) at Dec. 31, 2017 | 52,422 | |||
Net income | 15,951 | |||
Stock options exercised and restricted stock awards granted | 2,299 | 2,298 | ||
Stock options exercised and restricted stock awards granted (in shares) | 226 | |||
Share-based compensation | 3,699 | 3,699 | ||
Stock repurchased and retired | (12,347) | $ (2) | (5,997) | (6,348) |
Stock repurchased and retired (in shares) | (358) | |||
Dividends | (8,391) | (8,391) | ||
Balance at Jun. 30, 2018 | $ 238,437 | $ 209 | $ 0 | $ 238,228 |
Balance (in shares) at Jun. 30, 2018 | 52,290 |
General |
6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||
Basis of Presentation and Significant Accounting Policies [Abstract] | |||||||||||||
General | General Basis of Presentation The accompanying unaudited consolidated financial statements of AAON, Inc., a Nevada corporation, and our operating subsidiaries, all of which are wholly-owned, (collectively, the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (“SEC”). These financial statements have not been audited by the Company's independent registered public accounting firm, except that the consolidated balance sheet at December 31, 2017 is derived from audited consolidated financial statements. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The financial statements reflect all adjustments (all of which are of a normal recurring nature) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for a full year. Certain disclosures have been condensed in or omitted from these consolidated financial statements. The accompanying unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. All intercompany balances and transactions have been eliminated in consolidation. We are engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because these estimates and assumptions require significant judgment, actual results could differ from those estimates and could have a significant impact on our results of operations, financial position and cash flows. We reevaluate our estimates and assumptions as needed, but at a minimum on a quarterly basis. The most significant estimates include, but are not limited to, the fair-value of acquisitions, inventory reserves, warranty accrual, worker's compensation accrual, medical insurance accrual, income taxes and share-based compensation. Actual results could differ materially from those estimates. Accounting Policies A comprehensive discussion of our critical accounting policies and management estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2017. Business Combinations We record the assets acquired and liabilities assumed in a business combination at their acquisition date fair values. Pursuant to U. S. GAAP, an entity is allowed a reasonable period of time (not to exceed one year) to obtain the information necessary to identify and measure the fair value of the assets acquired and liabilities assumed in a business combination. As discussed in Note 3, we have finalized the acquisition date fair values as of June 30, 2018. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair value is based upon assumptions that market participants would use when pricing an asset or liability. We use the following fair value hierarchy, which prioritizes valuation technique inputs used to measure fair value into three broad levels:
The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to a fair value measurement requires judgment, considering factors specific to the asset or liability. Intangible Assets Our intangible assets include various trademarks, service marks and technical knowledge acquired in our February 2018 business combination (see Note 3). We amortize our intangible assets on a straight-line basis over the estimated useful lives of the assets. We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review. Goodwill Goodwill represents the excess of the consideration paid for the acquired businesses over the fair value of the individual assets acquired, net of liabilities assumed. We expect that all of our goodwill at June 30, 2018 is deductible for income tax purposes. Goodwill is not amortized, but instead is evaluated for impairment at least annually. We perform our annual assessment of impairment during the fourth quarter of our fiscal year, and more frequently if circumstances warrant. To perform this assessment, we first consider qualitative factors to determine whether it is more likely than not that the fair value of each reporting unit exceeds its carrying amount. If we conclude that it is more likely than not that the fair value of a reporting unit does not exceed its carrying amount, we calculate the fair value for the reporting unit and compare the amount to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. If the carrying amount of a reporting unit exceeds its fair value, goodwill is considered to be impaired and the goodwill balance is reduced by the difference between the fair value and carrying amount of the reporting unit. Estimates and assumptions used to perform the impairment evaluation are inherently uncertain and can significantly affect the outcome of the analysis. The estimates and assumptions we use in the annual goodwill impairment assessment included market participant considerations and future forecasted operating results. Changes in operating results and other assumptions could materially affect these estimates. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB's Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements and notes thereto. In February 2016, the FASB issued ASU 2016-02, Leases. The ASU will replace previous lease accounting guidance in U.S. GAAP. The ASU requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. The ASU retains a distinction between finance leases and operating leases. The ASU is effective for the Company beginning January 1, 2019, and requires a modified retrospective method of adoption. We are currently in the process of assessing the impact under this ASU on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other. The ASU simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. We will be required to perform our annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. In the event the carrying amount exceeds the reporting unit’s fair value, a goodwill impairment charge for the excess will be recorded (not exceeding the recorded amount of the reporting unit’s goodwill). The ASU is effective for the Company beginning April 1, 2020, and requires a prospective method of adoption, although early adoption is permitted for annual goodwill impairment tests performed on testing dates on or after January 1, 2017. We adopted this ASU effective January 1, 2018. |
Revenue Recognition |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted the new accounting standard FASB ASC 606, Revenue from Contracts with Customers, and all the related amendments to all contracts using the retrospective method. The impact at adoption was not material to the consolidated financial statements. The new accounting policy provides results substantially consistent with prior revenue recognition policies. Disaggregated net sales by major source:
Disaggregated units sold by major source:
The Company recognizes revenue when it satisfies the performance obligation in its contracts. Most of the Company's products are highly customized, cannot be resold to other customers and the cost of rework to be resold is not economical. The Company has a formal cancellation policy and generally does not accept returns on these units. As a result, many of the Company's products do not have an alternative use and therefore, for these products we recognize revenue over the time it takes to produce the unit. For all other products that are part sales or standardized units, we satisfy the performance obligation when the title and risk of ownership pass to the customer, generally at time of shipment. Final sales prices are fixed based on purchase orders. Sales allowances and customer incentives are treated as reductions to sales and are provided for based on historical experiences and current estimates. Sales of our products are moderately seasonal with the peak period being July - November of each year. In addition, the Company presents revenues net of sales tax and net of certain payments to our independent manufacturer representatives (“Representatives”). Representatives are national companies that are in the business of providing HVAC units and other related products and services to customers. The end user customer orders a bundled group of products and services from the Representative and expects the Representative to fulfill the order. Only after the specifications are agreed to by the Representative and the customer, and the decision is made to use an AAON HVAC unit, will we receive notice of the order. We establish the amount we must receive for our HVAC unit (“minimum sales price”), but do not control the total order price that is negotiated by the Representative with the end user customer. We are responsible for billings and collections resulting from all sales transactions, including those initiated by our Representatives. The Representatives submit the total order price to us for invoicing and collection. The total order price includes our minimum sales price and an additional amount which may include both the Representatives’ fee and amounts due for additional products and services required by the customer. These additional products and services may include controls purchased from another manufacturer to operate the unit, start-up services, and curbs for supporting the unit (“Third Party Products”). All are associated with the purchase of a HVAC unit but may be provided by the Representative or another third party. The Company is under no obligation related to Third Party Products. The Representatives’ fee and Third Party Products amounts (“Due to Representatives”) are paid only after all amounts associated with the order are collected from the customer. The amount of payments to our Representatives were $13.3 million and $12.6 million for the three months ended June 30, 2018 and 2017, respectively. The amount of payments to our Representatives were $24.9 million and $24.5 million for the six months ended June 30, 2018 and 2017, respectively. The Company also sells extended warranties on parts for various lengths of time ranging from 6 months to 10 years. Revenue for these separately priced warranties is deferred and recognized on a straight-line basis over the separately priced warranty period. |
Acquisition |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition | Acquisition On February 28, 2018, we closed on the purchase of substantially all of the assets of WattMaster Controls, Inc., (collectively, “WattMaster”). The assets acquired consisted primarily of intellectual property, receivables, inventory and fixed assets. The Company also hired substantially all of the WattMaster employees. These assets and workforce will allow us to accelerate the development of our own electronic controllers for air distribution systems. We funded the business combination with available cash of $6.0 million. We paid the final working capital settlement of $0.4 million with available cash in May 2018. We have included the results of WattMaster's operations in our consolidated financial statements beginning March 1, 2018. The following table presents the final allocation of the acquisition cost to the assets acquired and liabilities assumed, based on their fair values, in the acquisition of WattMaster described above:
Goodwill represents the excess of the consideration paid for the acquired businesses over the fair value of the individual assets acquired, net of liabilities assumed. Goodwill represents a premium paid to acquire the skilled workforce of the business acquired. We expect that all of the goodwill will be deductible for federal income tax purposes. |
Investments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Certificates of Deposit – We held approximately $5.5 million and $2.9 million in certificates of deposit at June 30, 2018 and December 31, 2017, respectively. At June 30, 2018, the certificates of deposit bear interest ranging from 1.50% to 1.95% per annum and have various maturities ranging from less than one month to approximately 5 months. Investments Held to Maturity – Our investments held to maturity are comprised of $3.0 million of corporate notes and bonds with original maturities ranging from less than one month to approximately 5 months. The investments have moderate risk with S&P ratings ranging from AAA to BBB-. We record the amortized cost basis and accrued interest of the corporate notes and bonds in the Consolidated Balance Sheets. We record the interest and amortization of bond premium to interest income in the Consolidated Statements of Income. The following summarizes the amortized cost and estimated fair value of our investments held to maturity as of June 30, 2018 and December 31, 2017:
|
Accounts Receivable |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | Accounts Receivable Accounts receivable and the related allowance for doubtful accounts are as follows:
|
Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined by the first-in, first-out (“FIFO”) method. We establish an allowance for excess and obsolete inventories based on product line changes, the feasibility of substituting parts and the need for supply and replacement parts.
The related changes in the allowance for excess and obsolete inventories account are as follows:
|
Intangible Assets |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Our intangible assets consist of the following:
Amortization expense recorded in cost of sales is as follows:
|
Supplemental Cash Flow Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information
|
Warranties |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranties | Warranties The Company has warranties with various terms ranging from 18 months for parts to 25 years for certain heat exchangers. The Company has an obligation to replace parts or service its products if conditions under the warranty are met. A provision is made for estimated warranty costs at the time the related products are sold based upon the warranty period, historical trends, new products and any known identifiable warranty issues. Changes in the warranty accrual are as follows:
|
Accrued Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued Liabilities Accrued liabilities are as follows:
|
Revolving Credit Facility |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility Our revolving credit facility, which is provided by BOKF, NA dba Bank of Oklahoma, formerly known as Bank of Oklahoma, N.A. ("Bank of Oklahoma"), provides for maximum borrowings of $30.0 million. Under the line of credit, there is one standby letter of credit totaling $0.8 million. Borrowings available under the revolving credit facility at June 30, 2018 were $29.2 million. Interest on borrowings is payable monthly at LIBOR plus 2.5%. No fees are associated with the unused portion of the committed amount. We had no outstanding balance under the revolving credit facility at June 30, 2018 and December 31, 2017. The termination date of the revolving credit facility is July 27, 2018. As of June 30, 2018, we were in compliance with our financial covenants. These covenants require that we meet certain parameters related to our tangible net worth and total liabilities to tangible net worth ratio. At June 30, 2018, our tangible net worth was $238.4 million and met the requirement of being at or above $125.0 million. Our total liabilities to tangible net worth ratio was 0.34 to 1, and met the requirement of not being above 2 to 1. On July 26, 2018, the Company amended the revolving credit facility with Bank of Oklahoma, extending the termination date to July 26, 2021. In addition, interest on borrowings was amended to LIBOR plus 2.0% (previously 2.5%) and our tangible net worth financial covenant requirement was amended to at or above $175.0 million (previously $125.0 million). |
Income Taxes |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The provision (benefit) for income taxes consists of the following:
The reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows:
The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. Major changes under the Act include the following:
As a result of these changes, the Company adjusted its deferred tax assets and liabilities in the forth quarter of 2017 using the newly enacted rates for the periods when they are expected to be realized. In February 2018, the Bipartisan Budget Act of 2018 extended accelerated depreciation for business property on an Indian reservation. As a result, the Company has approximately $5.0 million in additional depreciation it can take as a tax deduction in 2017. Because the Company had remeasured its deferred tax liability related to property, plant and equipment to the new lower tax rate at December 31, 2017 and because this additional depreciation became a current tax expense with the passing of this bill in 2018, the Company received a benefit of approximately $0.6 million as the deduction will be taken in 2017 at the higher federal tax rate of 35.0%. The Company's estimated annual 2018 effective tax rate, excluding discrete events, is approximately 27%. We file income tax returns in the U.S., state and foreign income tax returns jurisdictions. We are subject to U.S. examinations for tax years 2014 to present, and to non-U.S. income tax examinations for the tax years of 2013 to present. In addition, we are subject to state and local income tax examinations for the tax years 2013 to present. The Company continues to evaluate its need to file returns in various state jurisdictions. Any interest or penalties would be recognized as a component of income tax expense. |
Share-Based Compensation |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation On May 22, 2007, our stockholders adopted a Long-Term Incentive Plan (“LTIP”) which provided an additional 3.3 million shares that could be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance units and performance awards. Since inception of the LTIP, non-qualified stock options and restricted stock awards were granted with the same vesting schedule as the previous plan. Under the LTIP, the exercise price of shares granted could not be less than 100% of the fair market value at the date of the grant. On May 24, 2016, our stockholders adopted the 2016 Long-Term Incentive Plan ("2016 Plan") which provides for approximately 6.4 million shares, comprised of 3.4 million new shares provided for under the 2016 Plan, approximately 0.4 million shares that were available for issuance under the previous LTIP that are now authorized for issuance under the 2016 Plan, and an additional 2.6 million shares that were approved by the stockholders on May 15, 2018. Under the 2016 Plan, shares can be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance awards, dividend equivalent rights, and other awards. Under the 2016 Plan, the exercise price of shares granted may not be less than 100% of the fair market value at the date of the grant. The 2016 Plan will be administered by the Compensation Committee of the Board of Directors or such other committee of the Board of Directors as is designated by the Board of Directors (the “Committee”). Membership on the Committee shall be limited to independent directors. The Committee may delegate certain duties to one or more officers of the Company as provided in the 2016 Plan. The Committee will determine the persons to whom awards are to be made, determine the type, size and terms of awards, interpret the 2016 Plan, establish and revise rules and regulations relating to the 2016 Plan and make any other determinations that it believes necessary for the administration of the 2016 Plan. Options - The compensation cost related to unvested stock options not yet recognized as of June 30, 2018 is $17.3 million and is expected to be recognized over a weighted average period of 2.50 years. The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during the six months ended June 30, 2018 and 2017 using a Black Scholes Model:
The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based on historical volatility of our stock over time periods equal to the expected life at grant date. The following is a summary of stock options vested and exercisable as of June 30, 2018:
The following is a summary of stock options vested and exercisable as of June 30, 2017:
A summary of option activity under the plans is as follows:
The total intrinsic value of options exercised during the six months ended June 30, 2018 and 2017 was $3.2 million and $4.0 million, respectively. The cash received from options exercised during the six months ended June 30, 2018 and 2017 was $2.3 million and $1.6 million, respectively. The impact of these cash receipts is included in financing activities in the accompanying Consolidated Statements of Cash Flows. Restricted Stock - Since 2007, as part of the LTIP and since May 2016 as part of the 2016 Plan, the Compensation Committee of the Board of Directors has authorized and issued restricted stock awards to directors and key employees. Restricted stock awards granted to directors vest one-third each year. All other restricted stock awards vest at a rate of 20% per year. The fair value of restricted stock awards is based on the fair market value of AAON, Inc. common stock on the respective grant dates, reduced for the present value of dividends. These awards are recorded at their fair value on the date of grant and compensation cost is recorded using straight-line vesting over the service period. At June 30, 2018, unrecognized compensation cost related to unvested restricted stock awards was approximately $7.6 million, which is expected to be recognized over a weighted average period of 2.0 years. A summary of the unvested restricted stock awards is as follows:
A summary of share-based compensation is as follows:
|
Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share assumes the conversion of all potentially dilutive securities and is calculated by dividing net income by the sum of the weighted average number of shares of common stock outstanding plus all potentially dilutive securities. Dilutive common shares consist primarily of stock options and restricted stock awards.
|
Stockholders' Equity |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Stock Repurchase - The Board has authorized three stock repurchase programs for the Company. The Company may purchase shares on the open market from time to time, up to a total of 5.7 million shares. The Board must authorize the timing and amount of these purchases. Effective May 24, 2016, the Board authorized up to $25.0 million in open market repurchases and on June 2, 2016, the Company executed a repurchase agreement in accordance with the rules and regulations of the SEC allowing the Company to repurchase an aggregate amount of $25.0 million or a total of approximately 2.0 million shares from the open market. The agreement expired on April 15, 2017. In May 2018, the Board authorized up to $15.0 million in open market repurchases and on May 18, 2018, the Company executed a repurchase agreement in accordance with the rules and regulations of the SEC allowing the Company to repurchase shares from the open market. The agreement expires on March 1, 2019. The Company also has a stock repurchase arrangement by which employee-participants in our 401(k) savings and investment plan are entitled to have shares in AAON, Inc. stock in their accounts sold to the Company. The maximum number of shares to be repurchased is contingent upon the number of shares sold by employee-participants. Lastly, the Company repurchases shares of AAON, Inc. stock from certain of its directors and employees for payment of statutory tax withholdings on stock transactions. Al1 other repurchases from directors or employees are contingent upon Board approval. All repurchases are done at current market prices. Our repurchase activity is as follows:
Dividends - At the discretion of the Board, we pay semi-annual cash dividends. Board approval is required to determine the date of declaration and amount for each semi-annual dividend payment. Our recent dividends are as follows:
|
Commitments and Contingencies |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to various claims and legal actions that arise in the ordinary course of business. We closely monitor these claims and legal actions and frequently consult with our legal counsel to determine whether they may, when resolved, have a material adverse effect on our financial position, results of operations or cash flows and we accrue and/or disclose loss contingencies as appropriate. We have concluded that the likelihood is remote that the ultimate resolution of any pending litigation or claims will be material or have a material adverse effect on the Company's business, financial position, results of operations and/or cash flows. |
Related Parties |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Parties | Related Parties The Company purchases some supplies from an entity controlled by the Company's CEO. The Company sometimes makes sales to the CEO for parts. Additionally, the Company sells units to an entity owned by a member of the President's immediate family. This entity is also one of the Company's Representatives and as such, the Company makes payments to the entity for third party products. All related party transactions are made on standard Company terms. The following is a summary of transactions and balance with affiliates:
|
General (Policies) |
6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||
Basis of Presentation and Significant Accounting Policies [Abstract] | |||||||||||||
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because these estimates and assumptions require significant judgment, actual results could differ from those estimates and could have a significant impact on our results of operations, financial position and cash flows. We reevaluate our estimates and assumptions as needed, but at a minimum on a quarterly basis. The most significant estimates include, but are not limited to, the fair-value of acquisitions, inventory reserves, warranty accrual, worker's compensation accrual, medical insurance accrual, income taxes and share-based compensation. Actual results could differ materially from those estimates. |
||||||||||||
Business Combination Measurement Period | Business Combinations We record the assets acquired and liabilities assumed in a business combination at their acquisition date fair values. Pursuant to U. S. GAAP, an entity is allowed a reasonable period of time (not to exceed one year) to obtain the information necessary to identify and measure the fair value of the assets acquired and liabilities assumed in a business combination. As discussed in Note 3, we have finalized the acquisition date fair values as of June 30, 2018. |
||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair value is based upon assumptions that market participants would use when pricing an asset or liability. We use the following fair value hierarchy, which prioritizes valuation technique inputs used to measure fair value into three broad levels:
The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to a fair value measurement requires judgment, considering factors specific to the asset or liability. |
||||||||||||
Intangible Assets | Intangible Assets Our intangible assets include various trademarks, service marks and technical knowledge acquired in our February 2018 business combination (see Note 3). We amortize our intangible assets on a straight-line basis over the estimated useful lives of the assets. We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review. |
||||||||||||
Goodwill | Goodwill Goodwill represents the excess of the consideration paid for the acquired businesses over the fair value of the individual assets acquired, net of liabilities assumed. We expect that all of our goodwill at June 30, 2018 is deductible for income tax purposes. Goodwill is not amortized, but instead is evaluated for impairment at least annually. We perform our annual assessment of impairment during the fourth quarter of our fiscal year, and more frequently if circumstances warrant. To perform this assessment, we first consider qualitative factors to determine whether it is more likely than not that the fair value of each reporting unit exceeds its carrying amount. If we conclude that it is more likely than not that the fair value of a reporting unit does not exceed its carrying amount, we calculate the fair value for the reporting unit and compare the amount to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. If the carrying amount of a reporting unit exceeds its fair value, goodwill is considered to be impaired and the goodwill balance is reduced by the difference between the fair value and carrying amount of the reporting unit. Estimates and assumptions used to perform the impairment evaluation are inherently uncertain and can significantly affect the outcome of the analysis. The estimates and assumptions we use in the annual goodwill impairment assessment included market participant considerations and future forecasted operating results. Changes in operating results and other assumptions could materially affect these estimates. |
||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB's Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements and notes thereto. In February 2016, the FASB issued ASU 2016-02, Leases. The ASU will replace previous lease accounting guidance in U.S. GAAP. The ASU requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. The ASU retains a distinction between finance leases and operating leases. The ASU is effective for the Company beginning January 1, 2019, and requires a modified retrospective method of adoption. We are currently in the process of assessing the impact under this ASU on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other. The ASU simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. We will be required to perform our annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. In the event the carrying amount exceeds the reporting unit’s fair value, a goodwill impairment charge for the excess will be recorded (not exceeding the recorded amount of the reporting unit’s goodwill). The ASU is effective for the Company beginning April 1, 2020, and requires a prospective method of adoption, although early adoption is permitted for annual goodwill impairment tests performed on testing dates on or after January 1, 2017. We adopted this ASU effective January 1, 2018. |
Revenue Recognition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | Disaggregated net sales by major source:
Disaggregated units sold by major source:
|
Acquisition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Acquisition |
|
Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Investments Held to Maturity | The following summarizes the amortized cost and estimated fair value of our investments held to maturity as of June 30, 2018 and December 31, 2017:
|
Accounts Receivable (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Doubtful Accounts |
|
Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories (Allowance) | The related changes in the allowance for excess and obsolete inventories account are as follows:
|
Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | Our intangible assets consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortization Expense | Amortization expense recorded in cost of sales is as follows:
|
Supplemental Cash Flow Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information |
|
Warranties (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty | Changes in the warranty accrual are as follows:
|
Accrued Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued liabilities are as follows:
|
Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes consists of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows:
|
Share-Based Compensation (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Assumptions | The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during the six months ended June 30, 2018 and 2017 using a Black Scholes Model:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Options Outstanding | The following is a summary of stock options vested and exercisable as of June 30, 2018:
The following is a summary of stock options vested and exercisable as of June 30, 2017:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | A summary of option activity under the plans is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Unvested Restricted Stock Awards | A summary of the unvested restricted stock awards is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Grant Date Fair Value of Awards During Period | A summary of share-based compensation is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Share-Based Compensation Expense |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Income Tax Benefit Related to Share-Based Compensation |
|
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
|
Stockholders' Equity Stockholders' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share Repurchases | Our repurchase activity is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends Payable | Our recent dividends are as follows:
|
Related Parties (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following is a summary of transactions and balance with affiliates:
|
Revenue Recognition (Disaggregated Net Sales) (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018
USD ($)
unit
|
Jun. 30, 2017
USD ($)
unit
|
Jun. 30, 2018
USD ($)
unit
|
Jun. 30, 2017
USD ($)
unit
|
|
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 109,588 | $ 101,326 | $ 208,670 | $ 187,404 |
Rooftop Units | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 83,665 | $ 80,792 | $ 158,480 | $ 147,664 |
Total Units | unit | 4,175,000 | 4,173,000 | 7,643,000 | 7,647,000 |
Condensing Units | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 4,855 | $ 5,217 | $ 9,136 | $ 9,432 |
Total Units | unit | 625,000 | 687,000 | 1,036,000 | 1,219,000 |
Air Handlers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 6,553 | $ 6,256 | $ 11,793 | $ 11,389 |
Total Units | unit | 818,000 | 710,000 | 1,354,000 | 1,323,000 |
Outdoor Mechanical Rooms | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 894 | $ 538 | $ 1,867 | $ 1,742 |
Total Units | unit | 13,000 | 15,000 | 27,000 | 39,000 |
Water Source Heat Pumps | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 2,741 | $ 1,845 | $ 7,128 | $ 3,699 |
Total Units | unit | 1,004,000 | 518,000 | 2,618,000 | 896,000 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 10,880 | $ 6,678 | $ 20,266 | $ 13,478 |
Total Units | unit | 6,635,000 | 6,103,000 | 12,678,000 | 11,124,000 |
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Revenue from Contract with Customer [Abstract] | ||||
Payments to representatives | $ 13.3 | $ 12.6 | $ 24.9 | $ 24.5 |
Extended product warranties, minimum length | 6 months | |||
Extended product warranties, maximum length | 10 years |
Investments (Narrative) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Schedule of Investments [Line Items] | ||
Certificates of deposit | $ 5,520 | $ 2,880 |
Certificates of deposit interest rate, lower range | 1.50% | |
Certificates of deposit interest rate, upper range | 1.95% | |
Investments held to maturity | $ 2,955 | $ 6,077 |
Minimum | ||
Schedule of Investments [Line Items] | ||
Certificates of deposit maturity dates | 1 month | |
Investments maturity dates | 1 month | |
Maximum | ||
Schedule of Investments [Line Items] | ||
Certificates of deposit maturity dates | 5 months | |
Investments maturity dates | 5 months |
Investments (Investments Held to Maturity) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Gain (Loss) on Securities [Line Items] | ||
Amortized Cost | $ 2,955 | $ 6,077 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized (Loss) | (3) | (6) |
Fair Value | 2,952 | 6,071 |
Current assets | ||
Gain (Loss) on Securities [Line Items] | ||
Amortized Cost | 2,955 | 6,077 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized (Loss) | (3) | (6) |
Fair Value | 2,952 | 6,071 |
Non current assets | ||
Gain (Loss) on Securities [Line Items] | ||
Amortized Cost | 0 | 0 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized (Loss) | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Accounts Receivable (Receivables) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Receivables [Abstract] | ||
Accounts receivable | $ 53,626 | $ 50,457 |
Less: Allowance for doubtful accounts | (208) | (119) |
Total, net | $ 53,418 | $ 50,338 |
Accounts Receivable (Allowance) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance, beginning of period | $ 108 | $ 274 | $ 119 | $ 90 |
Provisions for losses on accounts receivables, net of recoveries | 109 | (43) | 98 | 141 |
Accounts receivable written off | 9 | 150 | 9 | 150 |
Balance, end of period | $ 208 | $ 81 | $ 208 | $ 81 |
Inventories (Components) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|---|---|
Inventory Disclosure [Abstract] | ||||||
Raw materials | $ 62,272 | $ 57,784 | ||||
Work in process | 3,414 | 5,957 | ||||
Finished goods | 6,188 | 8,163 | ||||
Inventory, gross | 71,874 | 71,904 | ||||
Less: Allowance for excess and obsolete inventories | (1,407) | $ (1,209) | (1,118) | $ (1,642) | $ (1,442) | $ (1,382) |
Total, net | $ 70,467 | $ 70,786 |
Inventories (Allowance) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Inventory Valuation Reserves [Roll Forward] | ||||
Balance, beginning of period | $ 1,209 | $ 1,442 | $ 1,118 | $ 1,382 |
Provisions for excess and obsolete inventories | 217 | 200 | 318 | 260 |
Inventories written off | (19) | 0 | (29) | 0 |
Balance, end of period | $ 1,407 | $ 1,642 | $ 1,407 | $ 1,642 |
Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Intellectual property | |||||
Intellectual property | $ 700 | $ 700 | $ 0 | ||
Less: Accumulated amortization | (78) | (78) | 0 | ||
Total, net | 622 | 622 | $ 0 | ||
Amortization Expense | $ 78 | $ 0 | $ 78 | $ 0 |
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Supplemental disclosure: | ||||
Interest paid | $ 0 | $ 0 | $ 5 | $ 0 |
Income taxes paid | 451 | 4,127 | 6,683 | 4,488 |
Non-cash investing and financing activities: | ||||
Non-cash capital expenditures | (1,604) | (874) | (871) | 224 |
Dividends declared | $ 8,400 | $ 6,849 | $ 8,400 | $ 6,849 |
Warranties (Narrative) (Details) |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Guarantees [Abstract] | |
Product warranty accrual, minimum length | 18 months |
Product warranty accrual, maximum length | 25 years |
Warranties (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance, beginning of period | $ 10,788 | $ 7,812 | $ 10,483 | $ 7,936 |
Payments made | (2,504) | (2,312) | (3,723) | (3,654) |
Provisions | 3,174 | 3,102 | 4,698 | 4,320 |
Balance, end of period | 11,458 | 8,602 | 11,458 | 8,602 |
Warranty expense | $ 3,174 | $ 3,102 | $ 4,698 | $ 4,320 |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Payables and Accruals [Abstract] | ||
Warranty | $ 11,458 | $ 10,483 |
Due to representatives | 10,494 | 13,086 |
Payroll | 3,943 | 4,456 |
Profit sharing | 1,607 | 2,034 |
Worker's compensation | 619 | 593 |
Medical self-insurance | 980 | 725 |
Customer prepayments | 2,907 | 2,838 |
Donations | 846 | 588 |
Employee vacation time | 3,008 | 2,688 |
Other | 2,284 | 1,607 |
Total | $ 38,146 | $ 39,098 |
Income Taxes (Provision (Benefit) for Income Taxes) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Current | $ 2,873 | $ 6,326 | $ 3,433 | $ 9,917 |
Deferred | 18 | (356) | 438 | 364 |
Provision (benefit) for income taxes | $ 2,891 | $ 5,970 | $ 3,871 | $ 10,281 |
Income Taxes (Reconciliation of Federal Statutory Income Tax Rate) (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Federal statutory rate | 21.00% | 35.00% | 21.00% | 35.00% |
State income taxes, net of Federal benefit | 6.80% | 4.50% | 6.80% | 4.00% |
Domestic manufacturing deduction | (0.00%) | (3.10%) | (0.00%) | (3.00%) |
Excess tax benefits | (2.40%) | (4.80%) | (4.10%) | (5.80%) |
Indian Depreciation | (4.40%) | 0.00% | (3.20%) | 0.00% |
Other | (1.20%) | (1.40%) | (1.00%) | (0.20%) |
Effective tax rate | 19.80% | 30.20% | 19.50% | 30.00% |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 22, 2017 |
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | |||
Doubling Bonus Depreciation | 100.00% | ||
Doubling bonus depreciation, period | 5 years | ||
Additional depreciation | $ 5.0 | ||
Income tax benefit | $ 0.6 | ||
Expected effective income tax rate for the year | 27.00% |
Share-Based Compensation (Summary of Assumptions) (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Directors and Officers | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend rate | $ 0.26 | $ 0.26 |
Expected volatility | 29.73% | 30.81% |
Risk-free interest rate | 2.20% | 1.90% |
Expected life | 5 years | 5 years |
Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend rate | $ 0.26 | $ 0.26 |
Expected volatility | 29.82% | 30.75% |
Risk-free interest rate | 2.48% | 1.89% |
Expected life | 5 years | 5 years |
Share-Based Compensation (Summary of Stock Option Activity) (Details) - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Shares [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 1,567,109 | |
Granted (in shares) | 1,439,020 | |
Exercised (in shares) | (159,143) | |
Forfeited or Expired (in shares) | (164,424) | |
Outstanding, end of period (in shares) | 2,682,562 | |
Exercisable, end of period (in shares) | 514,612 | 412,489 |
Weighted Average Exercise Price [Roll Forward] | ||
Outstanding, beginning of period (weighted average exercise price) | $ 25.27 | |
Granted (weighted average exercise price) | 34.51 | |
Exercised (weighted average exercise price) | 14.43 | |
Forfeited or Expired (weighted average exercise price) | 33.19 | |
Outstanding, end of period (weighted average exercise price) | 30.40 | |
Exercisable, end of period (weighted average exercise price) | $ 20.39 | $ 12.16 |
Share-Based Compensation (Summary of Unvested Restricted Stock Awards) (Details) |
6 Months Ended |
---|---|
Jun. 30, 2018
$ / shares
shares
| |
Shares [Roll Forward] | |
Unvested, beginning of period (in shares) | shares | 341,800 |
Granted (in shares) | shares | 104,175 |
Vested (in shares) | shares | (97,961) |
Forfeited (in shares) | shares | (31,834) |
Unvested, end of period (in shares) | shares | 316,180 |
Weighted Average Grant Date Fair Value [Roll Forward] | |
Unvested, beginning of period (weighted average grant date fair value) | $ / shares | $ 25.52 |
Granted (weighted average grant date fair value) | $ / shares | 32.27 |
Vested (weighted average grant date fair value) | $ / shares | 25.04 |
Forfeited (weighted average grant date fair value) | $ / shares | 28.06 |
Unvested, end of period (weighted average grant date fair value) | $ / shares | $ 27.64 |
Share-Based Compensation (Summary of Grant Date Fair Value of Awards) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Options | $ 53 | $ 633 | $ 12,580 | $ 3,507 |
Restricted stock | 1,247 | 1,582 | 3,361 | 4,182 |
Total | $ 1,300 | $ 2,215 | $ 15,941 | $ 7,689 |
Share-Based Compensation (Summary of Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Options | $ 1,368 | $ 703 | $ 2,126 | $ 1,430 |
Restricted stock | 607 | 1,181 | 1,573 | 2,099 |
Total | $ 1,975 | $ 1,884 | $ 3,699 | $ 3,529 |
Share-Based Compensation (Summary of Income Tax Benefit Related to Share-Based Compensation) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Options | $ 300 | $ 494 | $ 601 | $ 1,285 |
Restricted stock | 57 | 432 | 219 | 705 |
Total | $ 357 | $ 926 | $ 820 | $ 1,990 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 11,691 | $ 13,794 | $ 15,951 | $ 24,011 |
Basic weighted average shares (in shares) | 52,383,842 | 52,615,366 | 52,348,912 | 52,624,782 |
Effect of dilutive stock options and restricted stock (in shares) | 333,945 | 535,768 | 405,133 | 551,643 |
Diluted weighted average shares (in shares) | 52,717,787 | 53,151,134 | 52,754,045 | 53,176,425 |
Basic (usd per share) | $ 0.22 | $ 0.26 | $ 0.30 | $ 0.46 |
Diluted (usd per share) | $ 0.22 | $ 0.26 | $ 0.30 | $ 0.45 |
Anti-dilutive shares (in shares) | 2,161,244 | 760,438 | 1,919,008 | 772,202 |
Related Parties (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Related Party Transactions [Abstract] | |||||
Sales to affiliates | $ 447 | $ 466 | $ 592 | $ 1,150 | |
Payments to affiliates | 101 | $ 305 | 111 | $ 308 | |
Due from affiliates | 138 | 138 | $ 9 | ||
Due to affiliates | $ 12 | $ 12 | $ 0 |
@A2-C=AA-KPP69#0>WC\2Z<[3AFH^&QFWX0F[]Q\0=02P,$
M% @ !E("3 &PO=V]R:W-H965T <1OL4WZW0C'F<,&2%(7\B"@^"+A!L#"PNB-<%<7RZXD?)
MWB] O0+4"<1K 1)N8DR8O];"=W _^K/Q%EE8:BY!6:X5,M 4^#$]GK* CX"?'$:[
MVJ-0R47KEV!\J0NNZ[ !XQJ:-@@W+,>/\-<3X;17/Q7N(+P\)")UZBTL/&+JL$Z+6<6
MGXIDK]/*55S'Z61'Y[#M #H'T"7@$'7()!0S_\@<*W.C1V2FWO
TPH,8W$V$HM'B(V2X2OE.(>QTR(KQ7B:X0H_4A[C#\)X?G*U &PO=V]R:W-H965T %5VL:BU1_K*@M6:NBWIZ/#,#5919.II4+"_1J399DL4RD%TF+0
MWQ:V7MH_[."S&BM9<*%E]/VB!"MX2^(#(/^^C8UV?-F2Z@K77:WHN!@[ZF)E
M F%&TW,T4QA0"
M0.&%Q[*,'O2!+=-0L6=X0)?C(Y 3.=#_#&<4:K]LH2MO&PO=V]R:W-H965T$CTGQNMV5H^>\JO*L>5&PSO/*
MV(QD8D=C8Y+5Z28UZZJ^5/:Z:-_,M3=5ON_>.D:G5Y_S7U!+ P04 " &
M4@)-[3M?9&L" &" &0 'AL+W=O
'R5-^PO#_D0_=KTD=S-F]8F],[(;HN
M+ ON&.(B*5QF >L<;FFU6(/BPYH"C%PDN*E*D( WP&HW]3/6K2>_"W[ OX/X6?#G0XD4GJ#,
M9E?2Q67;K&0PDVBN*'D&.@OM[HPD,1RZ
M &;67*203!2<8,6REW.1@5#0S>G=)=ROQ1[0A71Y\]<-\B>B HKFN<<6RC1X
M5F?Y>6L)^%X-S'$#I%)@8KV<^R 9PC#><0QT3QD4;K8[;'ZN<*(3:!HV)^X>
MC_@LO],#Z_<;"KXUF-P3.-04-7#@!56V$3&XDG7!Z1=U^\B'SX*/A3603-B]
M..MD@*H=A /=HW[&6AI>:7APCZZ2'.24XD$I-,H"^= S/&C-(+P"Q>4 5"*C
M&LN&VAY!&I1P\J6?B=ET]IA9'?&M%>Y]Q*>)N8*3Q4([B%\V 2O,YOU^B&
M$0)"]Z]]=]H7_$Q?'R6J([=L#7+P')"\.#Q',T-0HW"V0-M\*)SR&(W:HA\?
M/F!MMQ0!C0+8B%AIM<*S9X:&+)0>YPD93>'X;2$7B5!C8IL&92 .;O'H&!MV
M.Y#9:)=JU)XU7**3KE;*BIER(08AYAD'O,^RNIZ5:+7/J"FD1R])0,26\/E0>_%"K?I7#4AQJYZC)#O*A15Z_ND)_3GXP:
MQ'^03GTJROM-MKS-C! CXN6K[ :D=1")*%[!>RG.:F!*++"
[_E!8$=@G "R4&4""18K=#7C&J^E;S-YKBW:<.]>$%%
MUD)];/1RN/7-U<'W$N>DM7Z;#P(T.ZHJNOE 2<$9=HOY;<%@SX))A/HZH!22
M/&D^
AK&JCJS[\BE(-%YC8RFW JPPC"J#:^H-%>ZX0"'\F=$J2.UHX^.2!ZM1BQX
M)8!PE-?4TIR"X&<-?$6?C-%U=[ZC "GO&'*2,FJ42OFLM>^()/&>ES8%)D(^
M&1/LKGQ'SS$8KL0%930A 4>UW)G)V@_:EC*,/ V'Z""2':,?%7-6!IZ2H,'7
M]E1Q%>M-25(>C2P)!;[CDS$E[L9WC"#S0P0)1C&6+L5\:5WSEHF,$5+ZCD3<
MB4_4'%UKTAWKARJ%)-@O-T/>]KZDG^HFCF8\7O1&_U'-YO"9M]4T=77N[2;(
M/MF6GBT9O2FAUQO!E. B"B^%7B OR
M*8/EGF$1HF4\>NR\U;EBAB;:% <7!.DC(%LVBOU]HU'L.G/DY\FX?U*=VB2V
MC!..81"^"MS)G-G.N12RC'/@>.<0[S"HSH)(IS?/87_%*"0)/-6( E6>2UQ1
M@7QYM\QW"JN>A,AL_N8RG28G3SHW\_YU,FJUVML[$6?/9?5PS\$YV"886!^L
M1JE3_Q4N<;:_#+5E[QZA!5,[Z+;!?@L,.WLM'X *#(N\A%L$E]JGS!(P@CO#@6
M.AM<>TME4A,0> * V'=$*C3G"N%:>!8!-#RL?.$BW(LF$QPT0V@[F&X00(
M.SG4 &@1^)12QKR4P'[YSEO H\*B84RI,T.XARVU3+EM..6"4X53I]F8V1+K
MAF1PQEM6^C8 =G9Q ^T0N#;Q@(&N-_OX=CKY-!Q4 _OE'[-4Y3D.QS 2]J4YJDGP3@1 ]21-XXN2NB]T7=U+EGZEH:T>$_#G$,YFFFX=4GPTQNFBHLM?;?
M1)5K?75KK3?6FC+7X ]7T/NB_LE /O@0CS!]?YIE
M#06^Z^"A9W%3];D%L_ LTU=MRZD//H!7833.R.G6>4/6[?>Z9A$/DPG>CZ+%XKTZ^_8AS>AEDR :O<@N;M"P(UI(@(_DA"Z0[QS]+H
MCK+X& @RI)/OO1S)01
MA7+7A+\=_&^GD\$B'6!7)V9_
A.