10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

Commission file number:  001-04743

Standard Motor Products, Inc.

(Exact name of registrant as specified in its charter)

New York	11-1362020
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

37-18 Northern Blvd., Long Island City, New York	11101
(Address of principal executive offices)	(Zip Code)

(718) 392-0200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $2.00 per share	SMP	New York Stock Exchange LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑     No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑     No ☐

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

Large Accelerated Filer  ☑	Accelerated Filer ☐
Non-Accelerated Filer   ☐	Smaller reporting company   ☐
Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐     No ☑

As of the close of business on April 29, 2024, there were 21,814,673 outstanding shares of the registrant’s Common Stock, par value $2.00 per share.

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

INDEX

PART I - FINANCIAL INFORMATION

		Page No.
Item 1.	Consolidated Financial Statements:	3
	Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31, 2024 and 2023	3
	Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended March 31, 2024 and 2023	4
	Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023	5
	Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2024 and 2023	6
	Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) for the Three Months Ended March 31, 2024 and 2023	7
	Notes to Consolidated Financial Statements (Unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	38
Item 4.	Controls and Procedures	39

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 6.	Exhibits	41
Signatures		42

2

PART I - FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended March 31,
(In thousands, except share and per share data)	2024			2023
	(Unaudited)
Net sales	$	331,403		$	328,028
Cost of sales		241,881			236,761
Gross profit		89,522			91,267
Selling, general and administrative expenses		74,733			69,633
Restructuring and integration expenses		192			912
Other income, net		22			24
Operating income		14,619			20,746
Other non-operating income, net		819			225
Interest expense		2,067			3,862
Earnings from continuing operations before income taxes		13,371			17,109
Provision for income taxes		3,342			4,372
Earnings from continuing operations		10,029			12,737
Loss from discontinued operations, net of income taxes		(1,039	)		(780	)
Net earnings		8,990			11,957
Net earnings attributable to noncontrolling interest		166			39
Net earnings attributable to SMP (a)	$	8,824		$	11,918
Net earnings attributable to SMP
Earnings from continuing operations	$	9,863		$	12,698
Discontinued operations		(1,039	)		(780	)
Total	$	8,824		$	11,918
Per share data attributable to SMP
Net earnings per common share – Basic:
Earnings from continuing operations	$	0.45		$	0.59
Discontinued operations		(0.05	)		(0.04	)
Net earnings per common share – Basic	$	0.40		$	0.55
Net earnings per common share – Diluted:
Earnings from continuing operations	$	0.44		$	0.57
Discontinued operations		(0.05	)		(0.03	)
Net earnings per common share – Diluted	$	0.39		$	0.54
Dividend declared per share	$	0.29		$	0.29
Average number of common shares		21,923,830			21,609,618
Average number of common shares and dilutive common shares		22,372,543			22,097,750

(a) Throughout this Form 10-Q, “SMP” refers to Standard Motor Products, Inc. and subsidiaries.

See accompanying notes to consolidated financial statements (unaudited).

3

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended March 31,
(In thousands)	2024			2023
	(Unaudited)
Net earnings	$	8,990		$	11,957
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(1,224	)		2,820
Derivative instruments		1,391			(1,377	)
Pension and postretirement plans		(3	)		(3	)
Total other comprehensive income, net of tax		164			1,440
Total comprehensive income		9,154			13,397
Comprehensive income (loss) attributable to noncontrolling interest, net of tax:
Net earnings		166			39
Foreign currency translation adjustments		(4	)		(29	)
Comprehensive income attributable to noncontrolling interest, net of tax		162			10
Comprehensive income attributable to SMP	$	8,992		$	13,387

See accompanying notes to consolidated financial statements (unaudited).

4

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)	March 31, 2024			December 31, 2023
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	27,113		$	32,526
Accounts receivable, less allowances for discounts and expected credit losses of $8,284 and $8,045 in 2024 and 2023, respectively		203,940			160,282
Inventories		520,702			507,075
Unreturned customer inventories		18,007			18,240
Prepaid expenses and other current assets		26,674			26,100
Total current assets		796,436			744,223
Property, plant and equipment, net of accumulated depreciation of $264,168 and $259,656 for 2024 and 2023, respectively		124,822			121,872
Operating lease right-of-use assets		102,060			100,065
Goodwill		134,624			134,729
Other intangibles, net		90,000			92,308
Deferred income taxes		40,241			40,533
Investments in unconsolidated affiliates		24,751			24,050
Other assets		38,627			35,267
Total assets	$	1,351,561		$	1,293,047
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of term loan and other debt	$	5,030		$	5,029
Accounts payable		98,293			107,455
Sundry payables and accrued expenses		58,714			63,303
Accrued customer returns		47,220			38,238
Accrued core liability		17,438			18,399
Accrued rebates		45,191			42,278
Payroll and commissions		27,326			29,561
Total current liabilities		299,212			304,263
Long-term debt		209,872			151,182
Noncurrent operating lease liabilities		90,667			88,974
Other accrued liabilities		27,704			25,742
Accrued asbestos liabilities		68,985			72,013
Total liabilities		696,440			642,174
Commitments and contingencies
Stockholders’ equity:
Common stock – par value $2.00 per share:
Authorized – 30,000,000 shares; issued 23,936,036 shares		47,872			47,872
Capital in excess of par value		102,704			101,751
Retained earnings		575,658			573,226
Accumulated other comprehensive income		(5,806	)		(5,974	)
Treasury stock – at cost (2,022,276 shares and 2,018,892 shares in 2024 and 2023, respectively)		(81,278	)		(81,811	)
Total SMP stockholders’ equity		639,150			635,064
Noncontrolling interest		15,971			15,809
Total stockholders’ equity		655,121			650,873
Total liabilities and stockholders’ equity	$	1,351,561		$	1,293,047

See accompanying notes to consolidated financial statements (unaudited).

5

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)	Three Months Ended March 31,
	2024			2023
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	8,990		$	11,957
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization		7,301			7,082
Amortization of deferred financing cost		120			124
Increase to allowance for expected credit losses		191			388
Increase to inventory reserves		1,068			962
Equity income from joint ventures		(694	)		(154	)
Employee Stock Ownership Plan allocation		697			742
Stock-based compensation		1,270			1,532
(Increase) decrease in deferred income taxes		(180	)		213
Loss on discontinued operations, net of tax		1,039			780
Change in assets and liabilities:
Increase in accounts receivable		(43,978	)		(42,617	)
(Increase) decrease in inventories		(14,670	)		6,195
Decrease in prepaid expenses and other current assets		1,649			1,165
Increase (decrease) in accounts payable		(9,274	)		4,809
Increase (decrease) in sundry payables and accrued expenses		3,988			(10,656	)
Net changes in other assets and liabilities		(3,233	)		(2,964	)
Net cash used in operating activities		(45,716	)		(20,442	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(10,086	)		(4,363	)
Other investing activities		15			13
Net cash used in investing activities		(10,071	)		(4,350	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of term loan		(1,250	)		(1,250	)
Net borrowings under revolving credit facilities		59,950			34,750
Net repayments of other debt and lease obligations		(8	)		(22	)
Purchase of treasury stock		(2,235	)		—
Increase in overdraft balances		315			125
Dividends paid		(6,392	)		(6,261	)
Net cash provided by financing activities		50,380			27,342
Effect of exchange rate changes on cash		(6	)		496
Net increase (decrease) in cash and cash equivalents		(5,413	)		3,046
CASH AND CASH EQUIVALENTS at beginning of period		32,526			21,150
CASH AND CASH EQUIVALENTS at end of period	$	27,113		$	24,196
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	2,241		$	3,970
Income taxes	$	3,532		$	3,163

See accompanying notes to consolidated financial statements (unaudited).

6

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Three Months Ended March 31, 2024

(Unaudited)

(In thousands)	Common Stock		Capital in Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total SMP			Non- Controlling Interest			Total
Balance at December 31, 2023	$	47,872	$	101,751	$	573,226		$	(5,974	)	$	(81,811	)	$	635,064		$	15,809		$	650,873
Net earnings		—		—		8,824			—			—			8,824			166			8,990
Other comprehensive income (loss), net of tax		—		—		—			168			—			168			(4	)		164
Cash dividends paid		—		—		(6,392	)		—			—			(6,392	)		—			(6,392	)
Purchase of treasury stock		—		—		—			—			(2,571	)		(2,571	)		—			(2,571	)
Stock-based compensation		—		950		—			—			320			1,270			—			1,270
Employee Stock Ownership Plan		—		3		—			—			2,784			2,787			—			2,787
Balance at March 31, 2024	$	47,872	$	102,704	$	575,658		$	(5,806	)	$	(81,278	)	$	639,150		$	15,971		$	655,121

Three Months Ended March 31, 2023

(Unaudited)

(In thousands)	Common Stock		Capital in Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total SMP			Non- Controlling Interest			Total
Balance at December 31, 2022	$	47,872	$	105,615	$	564,242		$	(12,470	)	$	(95,239	)	$	610,020		$	11,018		$	621,038
Net earnings		—		—		11,918			—			—			11,918			39			11,957
Other comprehensive income (loss), net of tax		—		—		—			1,469			—			1,469			(29	)		1,440
Cash dividends paid		—		—		(6,261	)		—			—			(6,261	)		—			(6,261	)
Stock-based compensation		—		1,044		—			—			488			1,532			—			1,532
Employee Stock Ownership Plan		—		16		—			—			2,950			2,966			—			2,966
Balance at March 31, 2023	$	47,872	$	106,675	$	569,899		$	(11,001	)	$	(91,801	)	$	621,644		$	11,028		$	632,672

See accompanying notes to consolidated financial statements (unaudited).

7

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1.  Basis of Presentation

Standard Motor Products, Inc. and its subsidiaries (referred to hereinafter in these notes to the consolidated financial statements as “we,” “us,” “our,” “SMP,” or the “Company”) is a leading manufacturer and distributor of premium replacement parts in the automotive aftermarket, and a custom-engineered solutions provider to vehicle and equipment manufacturers in diverse non-aftermarket end markets.  Our automotive aftermarket is comprised of two segments, Vehicle Control and Temperature Control, while our Engineered Solutions segment offers a broad array of conventional and future-oriented technologies in markets for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics and lawn and garden.  We sell our products primarily to retailers, warehouse distributors, original equipment manufacturers and original equipment service part operations in the United States, Canada, Europe, Asia, Mexico and other Latin American countries.

The accompanying unaudited financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.  The unaudited consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 50% equity ownership, except in instances where the minority shareholder maintains substantive participating rights, in which case we follow the equity method of accounting.  In instances where we have more than a 50% equity ownership and the minority shareholder does not maintain substantive participating rights, our consolidated financial statements include the accounts of the company on a consolidated basis with its net income and equity reported at amounts attributable to both our equity position and that of the noncontrolling interest.  Investments in unconsolidated affiliates are accounted for on the equity method, as we do not have a controlling financial interest but have the ability to exercise significant influence.  All significant inter-company items have been eliminated.

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.  The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year.

Reclassification

Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2024 presentation.

Note 2.  Summary of Significant Accounting Policies

The preparation of consolidated annual and quarterly financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods.  We have made a number of estimates and assumptions in the preparation of these consolidated financial statements.  We can give no assurance that actual results will not differ from those estimates.  Although we do not believe that there is a reasonable likelihood that there will be a material change in the future estimates, or in the assumptions that we use in calculating the estimates, the uncertain future effects, if any, of disruptions in the supply chain caused by geo-political risks, future increases in interest rates, inflation, macroeconomic uncertainty, and other unforeseen changes in the industry, or business, could materially impact the estimates, and may have a material adverse effect on our business, financial condition and results of operations.  Some of the more significant estimates include allowances for expected credit losses, cash discounts, valuation of inventory, valuation of long-lived assets, goodwill and other intangible assets, depreciation and amortization of long-lived assets, product liability exposures, asbestos, environmental and litigation matters, valuation of deferred tax assets, share based compensation and sales returns and other allowances.

8

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

There have been no material changes to our critical accounting policies and estimates from the information provided in Note 1 of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2023.

Recently Issued Accounting Pronouncements

Standards not yet adopted as of March 31, 2024

Standard	Description	Effective date	Effects on the financial statements or other significant matters
ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures	ASU 2023-07 will improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses on an interim and annual basis. ASU 2023-07 expands segment disclosures by requiring disclosure of (1) significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; (2) the amount and description of the composition of other segment items to reconcile to segment profit and loss; and (3) the CODM’s title and position and how the CODM uses the reported segment measures to allocate resources.  Additionally, ASU 2023-07 requires interim disclosures of all reportable segment profit or loss and assets previously required annually by Topic 280.	The ASU is effective for the fiscal years beginning after December 15, 2023, which for us is December 31, 2024, and all subsequent interim periods, with full retrospective application required to all prior periods presented. Early adoption is permitted.	The new standard will require expanding our segment disclosure to include additional segment level information. We are currently evaluating the full impact of adopting ASU 2023-07 on our consolidated financial statements, disclosures, processes and controls. On an ongoing basis, we will continue to assess the impact of the new standard through our planned date of adoption of December 31, 2024.
ASU 2023-09, Income Taxes (Topic 270): Improvements to Income Tax Disclosures	ASU 2023-09 will improve transparency and decision making usefulness of income tax disclosures. ASU 2023-09 will expand the annual required effective income tax rate reconciliation disclosures to include (1) eight specific categories of rate reconciling items; (2) additional information for reconciling items that meet or exceed a quantitative threshold; and (3) expand the required disclosures to include reconciling percentages as well as reported amounts.  Additionally, the ASU 2023-09 will expand required annual disclosures of income taxes paid to include the disaggregation by federal, state and foreign jurisdictions.	The ASU is effective for annual reporting periods beginning after December 15, 2024, which for us is December 31, 2025, with prospective application. Early adoption and retrospective application are permitted.	The new standard will require expanding our annual income tax disclosures in our financial statements. We are currently evaluating the full impact of adopting ASU 2023-09 on our consolidated financial statements, disclosures, processes and controls. On an ongoing basis, we will continue to assess the impact of the new standard through our planned date of adoption of December 31, 2025.

9

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

We have reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a material impact on the Company’s consolidated financial statements.

Note 3.  Business Acquisitions and Investments

2023 Increase in Equity Investment

Investment in Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co. Ltd.

In April 2014, we formed Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. (“Gwo Yng”), a 50/50 joint venture with Gwo Yng Enterprise Co., Ltd., a China-based manufacturer of air conditioner accumulators, filter driers, hose assemblies and switches.  We acquired our 50% interest in the joint venture for approximately $14 million.  In March 2018, we acquired an additional 15% equity interest in the joint venture for Chinese yuan renminbi 26,475,583 (approximately $4.2 million), thereby increasing our equity interest in the joint venture to 65%.  While we increased our equity interest in the joint venture to 65%, the minority shareholder maintained substantive participating rights that allowed it to participate in certain significant financial and operating decisions that occur in the ordinary course of business.  As a result, we continued to account for our investment in the joint venture under the equity method of accounting.

In July 2023, we acquired an additional 15% equity interest in the joint venture for Chinese yuan renminbi 27,378,290 (approximately $4 million), thereby increasing our equity interest in Gwo Yng to 80%.  In connection with the transaction, we amended and restated the charter documents of Gwo Yng to remove all minority shareholder substantive participating rights, giving SMP control of Gwo Yng.  As a result, as of the closing date of the transaction, Gwo Yng was accounted for as a business combination achieved in stages (“a step acquisition”).  Accordingly, commencing on the closing of the transaction, we reported the results of Gwo Yng on a consolidated basis with the minority ownership interest reported as a noncontrolling interest.

The following table summarizes the allocation of the total step acquisition purchase consideration to the identifiable assets acquired and liabilities assumed based on their fair values (in thousands):

Total purchase consideration (a)				$	21,725
Assets acquired and liabilities assumed:
Cash and cash equivalents	$	6,779
Receivables		5,912
Inventory		5,945
Other current assets		528
Property, plant and equipment, net		2,924
Operating lease right-of-use assets		4,372
Intangible assets (b)		532
Goodwill		2,208
Long term investments and other assets		7,257
Current liabilities		(6,004	)
Noncurrent operating lease liabilities		(3,455	)
Subtotal					26,998
Fair value of acquired noncontrolling interest					(5,273	)
Total purchase consideration allocated to net assets acquired				$	21,725

(a) Total purchase consideration is the sum of the fair value of the previously held equity investment interest in Gwo Yng of $17.7 million and the cash paid of $4 million for the acquisition of the additional 15% equity ownership interest.

(b) Intangible assets consists of customer relationships of $0.4 million and capitalized software of $0.1 million.

10

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Intangible assets of $0.4 million consisting of customer relationships is amortized on a straight-line basis over the estimated useful life of 10 years.  Goodwill of $2.2 million was allocated to the Temperature Control and Engineered Solutions segments in the amounts of $1.2 million and $1 million, respectively.  The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations.

Incremental revenues from Gwo Yng included in our consolidated statement of operations for the three months ended March 31, 2024 were not material.

Note 4.   Restructuring and Integration Expenses

The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of March 31, 2024 and December 31, 2023 and for the three months ended March 31, 2024, consisted of the following (in thousands):

	Workforce Reduction			Other Exit Costs			Total
Exit activity liability at December 31, 2023	$	1,729		$	—		$	1,729
Restructuring and integration costs:
Amounts provided for during 2024 (a)		17			175			192
Cash payments		(415	)		(175	)		(590	)
Foreign currency exchange rate changes		(18	)		—			(18	)
Exit activity liability at March 31, 2024	$	1,313		$	—		$	1,313

(a) Restructuring and integration expenses incurred during the three months ended March 31, 2024 consist of $101,000 in our Vehicle Control segment, $58,000 in our Temperature Control segment and $33,000 in our Engineered Solutions segment.

Restructuring Costs

Cost Reduction Initiative

During the fourth quarter of 2022, to further our ongoing efforts to improve operating efficiencies and reduce costs, we announced plans for a reduction in our sales force, and initiated plans to relocate certain product lines from our Independence, Kansas manufacturing facility and from our St. Thomas, Canada manufacturing facility to our manufacturing facilities in Reynosa, Mexico.

Restructuring expenses related to the Cost Reduction Initiative of $192,000 were incurred during the three months ended March 31, 2024 consisting of (1) expenses of $17,000 of employee severance related to our product line relocations, and (2) expenses of  $175,000 related to the relocation of machinery and equipment to our manufacturing facilities in Reynosa, Mexico.  Cash payments made of $590,000 during the three months ended March 31, 2024 consisted primarily of severance payments related to the sales force reduction. We anticipate that the Cost Reduction Initiative will be substantially completed by the end of the second quarter of 2024. Additional restructuring costs related to the initiative are expected to be immaterial.

Note 5.   Sale of Receivables

We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions.  We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt.  Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables, and do not service the receivables after the sale.  As such, these transactions are accounted for as a sale.

11

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Pursuant to these agreements, we sold $170.8 million and $170.9 million of receivables during the three months ended March 31, 2024 and 2023, respectively. Receivables presented at financial institutions and not yet collected as of March 31, 2024 and December 31, 2023 were approximately $10.9 million and $4.5 million, respectively, and remained in our accounts receivable balance as of that date. All receivables sold were reflected as a reduction of accounts receivable in the consolidated balance sheet at the time of sale. A charge in the amount of $10 million and $9 million related to the sale of receivables is included in selling, general and administrative expense in our consolidated statements of operations for the three months ended March 31, 2024 and 2023, respectively.

To the extent that these arrangements are terminated, our financial condition, results of operations, cash flows and liquidity could be adversely affected by extended payment terms, or delays or failures in collecting trade accounts receivable. The utility of the supply chain financing arrangements also depends upon a benchmark reference rate for the purpose of determining the discount rate applicable to each arrangement. If the benchmark reference rate increases significantly, we may be negatively impacted as we may not be able to pass these added costs on to our customers, which could have a material and adverse effect upon our financial condition, results of operations and cash flows.

Note 6.   Inventories

Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) and net realizable value, consist of the following:

	March 31, 2024		December 31, 2023
	(In thousands)
Finished goods	$	314,809	$	302,557
Work in process		17,344		18,503
Raw materials		188,549		186,015
Subtotal		520,702		507,075
Unreturned customer inventories		18,007		18,240
Total inventories	$	538,709	$	525,315

Note 7.   Acquired Intangible Assets

Acquired identifiable intangible assets consist of the following:

	March 31, 2024			December 31, 2023
	(In thousands)
Customer relationships	$	159,843		$	159,641
Patents, developed technology and intellectual property		14,123			14,123
Trademarks and trade names		8,880			8,880
Non-compete agreements		3,308			3,295
Supply agreements		800			800
Leaseholds		160			160
Total acquired intangible assets		187,114			186,899
Less: Accumulated amortization (a)		(98,163	)		(95,681	)
Net acquired intangible assets	$	88,951		$	91,218

(a) Applies to all intangible assets, except for trademarks and trade names totaling $2.6 million, which has an indefinite useful life and, as such, is not being amortized.

12

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Total amortization expense for acquired intangible assets was $2.1 million and $2.2 million for the three months ended March 31, 2024 and 2023, respectively. Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be $6.4 million for the remainder of 2024, $8.5 million in 2025, $8.5 million in 2026, $8.5 million in 2027 and $54.5 million in the aggregate for the years 2028 through 2041.

Note 8.  Leases

We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to ten years, some of which may include one or more five-year renewal options. We have not included any of the renewal options in our operating lease payments as we concluded that it is not reasonably certain that we will exercise any of these renewal options. Leases with an initial term of twelve months or less are not recorded on the balance sheet.  Operating lease expense is recognized on a straight-line basis over the lease term.  Finance leases are not material.

The following tables provide quantitative disclosures related to our operating leases and includes all operating leases acquired from the date of acquisition (in thousands):

Balance Sheet Information	March 31, 2024		December 31, 2023
Assets
Operating lease right-of-use assets	$	102,060	$	100,065
Liabilities
Sundry payables and accrued expenses	$	17,973	$	17,139
Noncurrent operating lease liabilities		90,667		88,974
Total operating lease liabilities	$	108,640	$	106,113
Weighted Average Remaining Lease Term
Operating leases	8.3 Years		8.3 Years
Weighted Average Discount Rate
Operating leases		4.9%		4.8%
	Three Months Ended
Expense and Cash Flow Information	March 31,
Lease Expense	2024		2023
Operating lease expense (a)	$	4,820	$	3,109
Supplemental Cash Flow Information
Cash paid for the amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,131	$	2,834
Right-of-use assets obtained in exchange for new operating lease obligations (b)	$	5,628	$	29,092

(a) Excludes expenses of approximately $0.8 million for each of the three months ended March 31, 2024 and 2023, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material.

(b) Includes $4.7 million of right-of-use assets related to the lease modification and extension for our manufacturing facility in Bialystok, Poland during the three months ended March 31, 2024, and $27.8 million of right-of-use assets related to the lease modification and extension for our distribution center and office in Lewisville, Texas during the three months ended March 31, 2023.

13

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Minimum Lease Payments

At March 31, 2024, we are obligated to make minimum lease payments through 2034, under operating leases, which are as follows (in thousands):

2024	$	13,904
2025		16,624
2026		15,190
2027		14,245
2028		12,616
Thereafter		62,092
Total lease payments	$	134,671
Less: Interest		(26,031	)
Present value of lease liabilities	$	108,640

Note 9.   Credit Facilities and Long-Term Debt

Total debt outstanding is summarized as follows:

	March 31, 2024		December 31, 2023
	(In thousands)
Credit facility – term loan due 2027	$	91,250	$	92,500
Credit facility – revolver due 2027		123,450		63,500
Other		202		211
Total debt	$	214,902	$	156,211
Current maturities of debt	$	5,030	$	5,029
Long-term debt		209,872		151,182
Total debt	$	214,902	$	156,211

Term Loan and Revolving Credit Facility

In June 2022, the Company entered into a new Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders (the “Credit Agreement”).  The Credit Agreement provides for a $500 million credit facility comprised of a $100 million term loan facility (the “term loan”) and a $400 million multi-currency revolving credit facility available in U.S. dollars, euros, British pound sterling, Swiss francs, Canadian dollars and other currencies as agreed to by the administrative agent and the lenders (the “revolving facility”). The Credit Agreement replaces and refinances the 2015 Credit Agreement.

Borrowings under the Credit Agreement were used to repay all outstanding borrowings under the 2015 Credit Agreement, and pay certain fees and expenses incurred in connection with the Credit Agreement, with future borrowings used for other general corporate purposes of the Company and its subsidiaries.  The term loan amortizes in quarterly installments of 1.25% in each of the first four years, and quarterly installments of 2.5% in the fifth year of the Credit Agreement.  The revolving facility has a $25 million sub-limit for the issuance of letters of credit and a $25 million sub-limit for the borrowing of swingline loans.  The maturity date is June 1, 2027.  The Company may request up to two one-year extensions of the maturity date.

The Company may, upon the agreement of one or more then existing lenders or of additional financial institutions not currently party to the Credit Agreement, increase the revolving facility commitments or obtain incremental term loans by an aggregate amount not to exceed (x) the greater of (i) $168 million or (ii) 100% of consolidated EBITDA (as defined in the Credit Agreement) for the four fiscal quarters ended most recently before such date, plus (y) the amount of any voluntary prepayment of term loans, plus (z) an unlimited amount so long as, immediately after giving effect thereto, the pro forma First Lien Net Leverage Ratio (as defined in the Credit Agreement) does not exceed 2.5 to 1.0.

14

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Term loan and revolver facility borrowings in U.S. dollars bear interest, at the Company’s election, at a rate per annum equal to Term SOFR plus 0.10% plus an applicable margin, or an alternate base rate plus an applicable margin, where the alternate base rate is the greater of the prime rate, the federal funds effective rate plus 0.50%, and one-month Term SOFR plus 0.10% plus 1.00%. Term loan borrowings are being made at one-month Term SOFR. The applicable margin for the term benchmark borrowings ranges from 1.0% to 2.0%, and the applicable margin for alternate base rate borrowings ranges from 0% to 1.0%, in each case, based on the total net leverage ratio of the Company and its restricted subsidiaries.  The Company may select interest periods of one, three or six months for Term SOFR borrowings.  Interest is payable at the end of the selected interest period, but no less frequently than quarterly.

The Company’s obligations under the Credit Agreement are guaranteed by its material domestic subsidiaries (each, a “Guarantor”), and secured by a first priority perfected security interest in substantially all of the existing and future personal property of the Company and each Guarantor, subject to certain exceptions.  The collateral security described above also secures certain banking services obligations and interest rate swaps and currency or other hedging obligations of the Company owing to any of the then existing lenders or any affiliates thereof.  Concurrently with the Company’s entry into the Credit Agreement, the Company also entered into a seven year interest rate swap agreement with Wells Fargo Bank, N.A., Co-Syndication Agent and lender under the Credit Agreement, on $100 million of borrowings under the Credit Agreement. The interest rate swap agreement matures in May 2029.

Outstanding borrowings at March 31, 2024 under the Credit Agreement were $214.7 million, consisting of current borrowings of $5 million and long-term debt of $209.7 million; while outstanding borrowings at December 31, 2023 were $156 million, consisting of current borrowings of $5 million and long-term debt of $151 million.  Letters of credit outstanding under the Credit Agreement were $2.3 million at both March 31, 2024 and December 31, 2023.

At March 31, 2024, the weighted average interest rate under our Credit Agreement was 5.5%, which consisted of $211 million in borrowings under Term SOFR, adjusted for the impact of the interest rate swap agreement on $100 million of borrowings, and an alternative base rate borrowing of $3.7 million at 8.8%.  At December 31, 2023, the weighted average interest rate under our Credit Agreement was 5%, which consisted of $156 million in borrowings at 5% under Term SOFR, adjusted for the impact of the interest rate swap agreement on $100 million of borrowings.  During the three months ended March 31, 2024, our average daily alternative base rate loan balance was $1.7 million, compared to a balance of $0.3 million for the three months ended March 31, 2023 and a balance of $0.1 million for the year ended December 31, 2023.

The Credit Agreement contains customary covenants limiting, among other things, the incurrence of additional indebtedness, the creation of liens, mergers, consolidations, liquidations and dissolutions, sales of assets, dividends and other payments in respect of equity interests, acquisitions, investments, loans and guarantees, subject, in each case, to customary exceptions, thresholds and baskets.  The Credit Agreement also contains customary events of default.

Polish Overdraft Facility

In November 2023, our Polish subsidiary, SMP Poland sp. z.o.o., further amended its overdraft facility with HSBC Continental Europe (Spolka Akcyjna) Oddzial w Polsce. The overdraft facility, as amended, provides for borrowings under the facility in euros and U.S. dollars. Under the amended terms, the overdraft facility provides for borrowings of up to Polish zloty 30 million (approximately $7.5 million) if borrowings are solely in Polish zloty, or up to 85% of the Polish zloty 30 million limit (approximately $6.4 million) if borrowings are in euros and/or U.S. dollars. The overdraft facility had an original maturity date in March 2024, with automatic three-month renewals until June 2027, subject to cancellation by either party, at its sole discretion, at least 30 days prior to the commencement of the three-month renewal period. The facility automatically renewed in March 2024 to a June 2024 maturity date. Borrowings under the amended overdraft facility will bear interest at a rate equal to (1) the one month Warsaw Interbank Offered Rate (“WIBOR”) + 1.0% for borrowings in Polish zloty, (2) the one month Euro Interbank Offered Rate (“EURIBOR”) + 1.0% for borrowings in euros, and (3) the Mid-Point of the Fed Target Range + 1.25% for borrowings in U.S. dollars.  Borrowings under the overdraft facility are guaranteed by Standard Motor Products, Inc., the ultimate parent company.  There were no borrowings outstanding under the overdraft facility at both March 31, 2024 and December 31, 2023.

15

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Maturities of Debt

As of March 31, 2024, maturities of debt through 2027, assuming no prepayments, are as follows (in thousands):

	Revolving Credit Facility		Term Loan Facility			Polish Overdraft Facility and Other Debt			Total
Remainder of 2024	$	—	$	3,750		$	22		$	3,772
2025		—		5,000			31			5,031
2026		—		7,500			48			7,548
2027		123,450		75,000			101			198,551
Total	$	123,450	$	91,250		$	202		$	214,902
Less: Current maturities		—		(5,000	)		(30	)		(5,030	)
Long-term debt	$	123,450	$	86,250		$	172		$	209,872

Deferred Financing Costs

We have deferred financing costs of approximately $1.5 million and $1.6 million as of March 31, 2024 and December 31, 2023, respectively.  Deferred financing costs are related to our term loan and revolving credit facilities. Deferred financing costs as of March 31, 2024, assuming no prepayments, are being amortized in the amounts of $0.4 million for the remainder of 2024, $0.5 million in 2025, $0.5 million in 2026 and $0.1 million in 2027.

16

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Note 10.  Accumulated Other Comprehensive Income Attributable to SMP

Changes in Accumulated Other Comprehensive Income by Component (in thousands)

	Three Months Ended March 31, 2024
	Foreign Currency Translation			Unrealized derivative gains (losses)			Unrecognized Postretirement Benefit Costs (Credit)			Total
Balance at December 31, 2023	$	(8,897	)	$	2,899		$	24		$	(5,974	)
Other comprehensive income (loss) before reclassifications		(1,220	)		1,888	(a)		–			668
Amounts reclassified from accumulated other comprehensive income		—			(497	)		(3	)		(500	)
Other comprehensive income (loss), net		(1,220	)		1,391			(3	)		168
Balance at March 31, 2024	$	(10,117	)	$	4,290		$	21		$	(5,806	)

(a) Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $1.9 million ($1.4 million, net of tax), plus cash settlement receipts of $0.7 million ($0.5 million, net of tax) in the three months ended March 31, 2024.

Reclassifications Out of Accumulated Other Comprehensive Income (in thousands)

	Three Months Ended
	March 31, 2024
Derivative cash flow hedge:
Unrecognized (gain) loss (a)	$	(671	)
Postretirement benefit plans:
Unrecognized (gain) loss (b)		(5	)
Total before income tax		(676	)
Income tax (expense) benefit		(176	)
Total reclassifications	$	(500	)

(a) Unrecognized accumulated other comprehensive income (loss) related to the cash flow interest rate hedge is reclassified to earnings and reported as part of interest expense in our consolidated statements of operations when the interest payments on the underlying borrowings are recognized.

(b) Unrecognized accumulated other comprehensive income (loss) related to our post retirement plans is reclassified to earnings and included in the computation of net periodic postretirement benefit costs, which are included in other non-operating income (expense), net in our consolidated statements of operations (see Note 12, “Employee Benefits,” for additional information).

Note 11.  Stock-Based Compensation Plans

We account for our stock-based compensation plans in accordance with the provisions of FASB ASC 718, Stock Compensation, which requires that a company measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award.  The cost is recognized in the consolidated statement of operations over the period during which an employee is required to provide service in exchange for the award.

17

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Restricted and Performance Stock Grants

We are authorized to issue, among other things, shares of restricted and performance-based stock to eligible employees and restricted stock to directors of up to 2,050,000 shares under the Amended and Restated 2016 Omnibus Incentive Plan (“Plan”).  Shares issued under the Plan that are cancelled, forfeited or expire by their terms are eligible to be granted again under the Plan.

As part of the Plan, we currently grant shares of restricted stock to eligible employees and our independent directors and performance-based shares to eligible employees.  We grant eligible employees two types of restricted stock (standard restricted shares and long-term retention restricted shares).  Standard restricted shares granted to employees become fully vested no earlier than three years after the date of grant.  Long-term retention restricted shares granted to selected executives vest at a 25% rate on or within approximately two months of an executive reaching the ages 60 and 63, and become fully vested on or within approximately two months of an executive reaching the age 65.  Restricted shares granted to directors become fully vested upon the first anniversary of the date of grant.

Performance-based shares issued to eligible employees are subject to a three-year measuring period and the achievement of performance targets and, depending upon the achievement of such performance targets, they may become vested no earlier than three years after the date of grant.  Each period we evaluate the probability of achieving the applicable targets, and we adjust our accrual accordingly. Restricted shares (other than long-term retention restricted shares) and performance shares issued to certain key executives and directors are subject to a one or two year holding period upon the lapse of the vesting period.  Forfeitures on stock grants are estimated at 5% for employees and 0% for executives and directors based on our evaluation of historical and expected future turnover.

Our restricted and performance-based share activity was as follows for the three months ended March 31, 2024:

	Shares			Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2023		880,976		$	29.48
Granted		—			—
Vested		(7,928	)		27.70
Forfeited		(7,150	)		32.47
Balance at March 31, 2024		865,898		$	29.47

We recorded compensation expense related to restricted shares and performance-based shares of $1.3 million ($1 million, net of tax) and $1.5 million ($1.1 million, net of tax) for the three months ended March 31, 2024 and 2023, respectively. The unamortized compensation expense related to our restricted and performance-based shares was $11.4 million at March 31, 2024, and is expected to be recognized as they vest over a weighted average period of 3.94 years and 0.08 years for employees and directors, respectively.

Note 12.  Employee Benefits

We provide certain medical and dental care benefits to 13 former U.S. union employees.  The postretirement medical and dental benefit obligation to the former union employees as of March 31, 2024, and the related net periodic benefit cost for the plan for the three months ended March 31, 2024 and 2023 were not material.

We maintain a defined contribution Supplemental Executive Retirement Plan for key employees.  Under the plan, these employees may elect to defer a portion of their compensation and, in addition, we may at our discretion make contributions to the plan on behalf of the employees.  In March 2024, we made company contributions to the plan of $0.5 million related to calendar year 2023.

18

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

We also have an Employee Stock Ownership Plan and Trust for employees who are not covered by a collective bargaining agreement.  In connection therewith, we maintain an employee benefits trust to which we contribute shares of treasury stock.  We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under the plan. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released.  The trustees will vote the shares in accordance with their fiduciary duties.  During the three months ended March 31, 2024, we contributed to the trust an additional 68,700 shares from our treasury and released 68,700 shares from the trust leaving 200 shares remaining in the trust as of March 31, 2024.

Note 13.  Derivative Financial Instruments

Interest Rate Swap Agreements

We occasionally use derivative financial instruments to reduce our market risk for changes in interest rates on our variable rate borrowings. The principal financial instruments used for cash flow hedging purposes are interest rate swap agreements. The interest rate swaps effectively convert a portion of our variable rate borrowings under our existing facilities to a fixed rate based upon determined notional amount. We do not enter into interest rate swap agreements, or other financial instruments, for trading or speculative purposes.

In June 2022, we entered into a seven year interest rate swap agreement with a notional amount of $100 million that is to mature in May 2029.  The interest rate swap agreement has been designated as a cash flow hedge of interest payments on $100 million of borrowings under our Credit Agreement. Under the terms of the swap agreement, we will receive monthly variable interest payments based on one month Term SOFR and will pay interest based upon a fixed rate of 2.683% per annum, adjusted upward for the credit spread adjustment in the Credit Agreement of 0.10% and the loan margin in the Credit Agreement of 1.25% at March 31, 2024.

The fair value of the interest rate swap agreement as of March 31, 2024 and December 31, 2023 was an asset of $5.8 million and $3.9 million, respectively, which has been deferred and recorded in accumulated other comprehensive income, net of income taxes, in our consolidated balance sheet. When the interest expense on the underlying borrowing is recognized, the deferred gain/loss in accumulated other comprehensive income is recorded in earnings as interest expense in the consolidated statements of operations. We perform quarterly hedge effectiveness assessments and anticipate that the interest rate swap will be highly effective throughout its term.

Note 14.  Fair Value Measurements

We follow a three-level fair value hierarchy that prioritizes the inputs to measure fair value.  This hierarchy requires entities to maximize the use of “observable inputs” and minimize the use of “unobservable inputs.”  The three levels of inputs used to measure fair value are as follows:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect assumptions that market participants would use in pricing an asset or liability.

19

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

The following is a summary of the estimated fair values, carrying amounts, and classification under the fair value hierarchy of our financial instruments at March 31, 2024 and December 31, 2023 (in thousands):

		March 31, 2024				December 31, 2023
	Fair Value Hierarchy	Fair Value		Carrying Amount		Fair Value		Carrying Amount
Cash and cash equivalents (a)	LEVEL1/2	$	27,113	$	27,113	$	32,526	$	32,526
Deferred compensation	LEVEL 1		25,674		25,674		23,893		23,893
Short term borrowings	LEVEL 2		5,030		5,030		5,029		5,029
Long-term debt	LEVEL 2		209,872		209,872		151,182		151,182
Cash flow interest rate swap	LEVEL 2		5,820		5,820		3,939		3,939
Long-term investments	LEVEL 2		7,522		7,522		7,468		7,468

(a) As of March 31, 2024 cash and cash equivalents consist of cash of $24.1 million and cash equivalents of $3 million, which are classified as Level 1 and Level 2, respectively, under the fair value hierarchy.  As of December 31, 2023 cash and cash equivalents consist of cash of $29.5 million and cash equivalents of $3 million, which are classified as Level 1 and Level 2, respectively, under the fair value hierarchy.

Cash equivalents consist of certificates of deposit with original maturities of three months, or less. These securities are accounted for as held-to-maturity and recorded at amortized cost, which approximates their fair values at March 31, 2024.  The fair value of the underlying assets held by the deferred compensation plan are based on the quoted market prices of the underlying funds which are held by registered investment companies. The carrying value of our variable rate short-term borrowings and long-term debt under our credit facilities approximates fair value as the variable interest rates in the facilities reflect current market rates. The fair value of our cash flow interest rate swap agreement is obtained from an independent third party, is based upon market quotes, and represents the net amount required to terminate the interest rate swap, taking into consideration market rates and counterparty credit risk.  Long-term investments consist of certificates of deposit with original maturities in excess of twelve months. These securities are accounted for as held-to-maturity and recorded at amortized cost, which approximates their fair values at March 31, 2024.

20

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Note 15. Earnings Per Share

The following are reconciliations of the net earnings attributable to SMP and the shares used in calculating basic and dilutive net earnings per common share (in thousands, except per share data):

	Three Months Ended March 31,
	2024			2023
Net Earnings Attributable to SMP -
Earnings from continuing operations	$	9,863		$	12,698
Loss from discontinued operations		(1,039	)		(780	)
Net earnings attributable to SMP	$	8,824		$	11,918
Basic Net Earnings Per Common Share Attributable to SMP -
Earnings from continuing operations per common share	$	0.45		$	0.59
Loss from discontinued operations per common share		(0.05	)		(0.04	)
Net earnings per common share attributable to SMP	$	0.40		$	0.55
Weighted average common shares outstanding		21,924			21,610
Diluted Net Earnings Per Common Share Attributable to SMP -
Earnings from continuing operations per common share	$	0.44		$	0.57
Loss from discontinued operations per common share		(0.05	)		(0.03	)
Net earnings per common share attributable to SMP	$	0.39		$	0.54
Weighted average common shares outstanding		21,924			21,610
Plus incremental shares from assumed conversions:
Dilutive effect of restricted stock and performance-based stock		449			488
Weighted average common shares outstanding – Diluted		22,373			22,098

The shares listed below were not included in the computation of diluted net earnings per common share attributable to SMP because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands):

	Three Months Ended March 31,
	2024		2023
Restricted and performance-based shares		281		298

21

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Note 16. Industry Segments

Our business is organized into three operating segments, Vehicle Control, Temperature Control and Engineered Solutions, each of which focuses on a specific line of business. Our automotive aftermarket business is comprised of two operating segments, Vehicle Control and Temperature Control, while our Engineered Solutions operating segment offers a broad array of conventional and future-oriented technologies.

The following tables show our net sales and operating income for each reportable operating segment (in thousands):

	Three Months Ended March 31,
	2024			2023
Net Sales (a)
Vehicle Control	$	185,524		$	184,577
Temperature Control		71,608			72,406
Engineered Solutions		74,271			71,045
Other		—			—
Consolidated	$	331,403		$	328,028
Operating Income (Loss)
Vehicle Control	$	15,540		$	17,375
Temperature Control		2,031			2,084
Engineered Solutions		2,232			5,647
Other		(5,184	)		(4,360	)
Consolidated	$	14,619		$	20,746

(a) There are no intersegment sales among our Vehicle Control, Temperature Control and Engineered Solutions operating segments.

For the disaggregation of our net sales from contracts with customers by major product group and geographic area within each of our operating segments, see Note 17, “Net Sales.”

Note 17. Net Sales

Disaggregation of Net Sales

We disaggregate our net sales from contracts with customers by major product group and geographic area within each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our net sales are affected by economic factors.

Major Product Group

The Vehicle Control operating segment generates its revenues from core aftermarket sales of ignition, emissions, and fuel delivery, electrical and safety, and wire sets and other product categories.  The Temperature Control operating segment generates its revenue from aftermarket sales of air conditioning system components and other thermal products.  The Engineered Solutions operating segment generates revenues from custom-engineered products to vehicle and equipment manufacturers in highly diversified global end-markets such as commercial and light vehicles, construction, agriculture, power sports and marine.

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STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

The following table summarizes consolidated net sales by major product group within each operating segment for the three months ended March 31, 2024 and 2023 (in thousands):

Three Months Ended March 31,
	2024		2023
Vehicle Control
Engine Management (Ignition, Emissions and Fuel Delivery)	$	116,085	$	116,083
Electrical and Safety		52,407		51,804
Wire Sets and Other		17,032		16,690
Total Vehicle Control		185,524		184,577
Temperature Control
AC System Components		49,960		50,798
Other Thermal Components		21,648		21,608
Total Temperature Control		71,608		72,406
Engineered Solutions
Commercial Vehicle		22,908		20,232
Construction/Agriculture		10,076		11,692
Light Vehicle		21,803		23,019
All Other		19,484		16,102
Total Engineered Solutions		74,271		71,045
Other		—		—
Total	$	331,403	$	328,028

Geographic Area

We sell our line of products primarily in the United States, with additional sales in Canada, Mexico, Europe, Asia and Latin America.  Sales are attributed to countries based upon the location of the customer.  Our sales are substantially denominated in U.S. dollars.

The following tables provide disaggregation of net sales information by geographic area within each operating segment for the three months ended March 31, 2024 and 2023 (in thousands):

Three months ended March 31, 2024	Vehicle Control		Temperature Control		Engineered Solutions		Other		Total
Geographic Area:
United States	$	164,821	$	64,665	$	40,454	$	—	$	269,940
Canada		9,158		6,632		8,182		—		23,972
Europe		283		16		14,206		—		14,505
Mexico		10,020		5		2,207		—		12,232
Asia		101		141		8,561		—		8,803
Other foreign		1,141		149		661		—		1,951
Total	$	185,524	$	71,608	$	74,271	$	—	$	331,403

23

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Three months ended March 31, 2023	Vehicle Control		Temperature Control		Engineered Solutions		Other		Total
Geographic Area:
United States	$	166,412	$	69,571	$	44,206	$	—	$	280,189
Canada		8,330		2,755		5,238		—		16,323
Europe		198		—		15,084		—		15,282
Mexico		8,587		—		1,768		—		10,355
Asia		62		20		4,054		—		4,136
Other foreign		988		60		695		—		1,743
Total	$	184,577	$	72,406	$	71,045	$	—	$	328,028

Note 18. Commitments and Contingencies

Asbestos

In 1986, we acquired a brake business, which we subsequently sold in March 1998 and which is accounted for as a discontinued operation in the accompanying statement of operations.  When we originally acquired this brake business, we assumed future liabilities relating to any alleged exposure to asbestos-containing products manufactured by the seller of the acquired brake business. In accordance with the related purchase agreement, we agreed to assume the liabilities for all new claims filed on or after September 2001. Our ultimate exposure will depend upon the number of claims filed against us on or after September 2001, and the amounts paid for settlements, awards of asbestos-related damages, and defense of such claims.  At March 31, 2024, approximately 1,460 cases were outstanding for which we may be responsible for any related liabilities.  Since inception in September 2001 through March 31, 2024, the amounts paid for settled claims and awards of asbestos-related damages, including interest, were approximately $77.7 million.  We do not have insurance coverage for the indemnity and defense costs associated with the claims we face.

In evaluating our potential asbestos-related liability, we have considered various factors including, among other things, an actuarial study of the asbestos related liabilities performed by an independent actuarial firm, our settlement amounts and whether there are any co-defendants, the jurisdiction in which lawsuits are filed, and the status and results of such claims.  As is our accounting policy, we consider the advice of actuarial consultants with experience in assessing asbestos-related liabilities to estimate our potential claim liability; and perform an actuarial evaluation in the third quarter of each year and whenever events or changes in circumstances indicate that additional provisions may be necessary.  The methodology used to project asbestos-related liabilities and costs in our actuarial study considered: (1) historical data available from publicly available studies; (2) an analysis of our recent claims history to estimate likely filing rates into the future; (3) an analysis of our currently pending claims; (4) an analysis of our settlements and awards of asbestos-related damages to date; and (5) an analysis of closed claims with pay ratios and lag patterns in order to develop average future settlement values.  Based on the information contained in the actuarial study and all other available information considered by us, we have concluded that no amount within the range of settlement payments and awards of asbestos-related damages was more likely than any other and, therefore, in assessing our asbestos liability we compare the low end of the range to our recorded liability to determine if an adjustment is required.

In accordance with our policy to perform an annual actuarial evaluation in the third quarter of each year, an actuarial study was performed as of August 31, 2023.  The results of the August 31, 2023 study included an estimate of our undiscounted liability for settlement payments and awards of asbestos-related damages, excluding legal costs, ranging from $84 million to $135.3 million for the period through 2065.  The change from the prior year study, which was as of August 31, 2022, was a $15.2 million increase for the low end of the range and a $23.7 million increase for the high end of the range.  The increase in the estimated undiscounted liability from the prior year study at both the low end and high end of the range reflects our actual experience, our historical data and certain assumptions with respect to events that may occur in the future.

24

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Based upon the results of the August 31, 2023 actuarial study, in September 2023 we increased our asbestos liability to $84 million, the low end of the range, and recorded an incremental pre-tax provision of $23.8 million in earnings (loss) from discontinued operations in the accompanying statement of operations.  Future legal costs, which are expensed as incurred and reported in earnings (loss) from discontinued operations in the accompanying statement of operations, are estimated, according to the August 31, 2023 study, to range from $53.1 million to $105.2 million for the period through 2065.  Total operating cash outflows related to discontinued operations, which include settlements, awards of asbestos-related damages and legal costs, net of taxes, were $3 million and $2.6 million for the three months ended March 31, 2024 and 2023, respectively.

We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future and whenever events or changes in circumstances indicate that additional provisions may be necessary. Given the uncertainties associated with projecting such matters into the future and other factors outside our control, we can give no assurance that additional provisions will not be required. We will continue to monitor events and changes in circumstances surrounding these potential liabilities in determining whether to perform additional actuarial evaluations and whether additional provisions may be necessary.  At the present time, however, we do not believe that any additional provisions would be reasonably likely to have a material adverse effect on our liquidity or consolidated financial position.

Other Litigation

We are currently involved in various other legal claims and legal proceedings (some of which may involve substantial amounts), including claims related to commercial disputes, product liability, employment, and environmental.  Although these legal claims and legal proceedings are subject to inherent uncertainties, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the ultimate outcome of these matters will not, either individually or in the aggregate, have a material adverse effect on our business, financial condition or results of operations.  We may at any time determine that settling any of these matters is in our best interests, which settlement may include substantial payments.  Although we cannot currently predict the specific amount of any liability that may ultimately arise with respect to any of these matters, we will record provisions when the liability is considered probable and reasonably estimable.  Significant judgment is required in both the determination of probability and the determination as to whether an exposure can be reasonably estimated.  As additional information becomes available, we reassess our potential liability related to these matters. Such revisions of the potential liabilities could have a material adverse effect on our business, financial condition or results of operations.

25

STANDARD MOTOR PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

Warranties

We generally warrant our products against certain manufacturing and other defects. These product warranties are provided for specific periods of time of the product depending on the nature of the product.  As of March 31, 2024 and 2023, we have accrued $23.1 million and $20.6 million, respectively, for estimated product warranty claims included in accrued customer returns. The accrued product warranty costs are based primarily on historical experience of actual warranty claims.

The following table provides the changes in our product warranties (in thousands):

	Three Months Ended March 31,
	2024			2023
Balance, beginning of period	$	21,134		$	19,667
Liabilities accrued for current year sales		28,677			25,793
Settlements of warranty claims		(26,719	)		(24,860	)
Balance, end of period	$	23,092		$	20,600

26

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements in this Report are indicated by words such as “anticipates,” “expects,” “believes,” “intends,” “plans,” “estimates,” “projects,” “strategies” and similar expressions. These statements represent our expectations based on current information and assumptions and are inherently subject to risks and uncertainties.  Our actual results could differ materially from those which are anticipated or projected as a result of certain risks and uncertainties, including, but not limited to, changes or loss in business relationships with our major customers and in the timing, size and continuation of our customers’ programs; changes in our supply chain financing arrangements, such as changes in terms, termination of contracts and/or the impact of rising interest rates; the ability of our customers to achieve their projected sales; competitive product and pricing pressures; increases in production or material costs, including procurement costs resulting from higher tariffs, and inflationary cost increases in raw materials, labor and transportation, that cannot be recouped in product pricing; the performance of the automotive aftermarket and/or other end-markets that we supply; changes in the product mix and distribution channel mix; economic and market conditions; successful integration of acquired businesses; our ability to achieve benefits from our cost savings initiatives; product liability matters (including, without limitation, those related to asbestos-related contingent liabilities); the effects of disruptions in the supply chain caused by geopolitical risks; as well as other risks and uncertainties, such as those described under Risk Factors, Quantitative and Qualitative Disclosures About Market Risk and those detailed herein and from time to time in the filings of the Company with the SEC. Forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. In addition, historical information should not be considered as an indicator of future performance.  The following discussion should be read in conjunction with the unaudited consolidated financial statements, including the notes thereto, included elsewhere in this Report.

Overview

We are a leading manufacturer and distributor of premium replacement parts in the automotive aftermarket and a custom-engineered solutions provider to vehicle and equipment manufacturers in diverse non-aftermarket end markets.  Our business is organized into three operating segments.  Our automotive aftermarket business is comprised of two segments, Vehicle Control and Temperature Control, while our Engineered Solutions Segment offers a broad array of conventional and future-oriented technologies.  We sell our products primarily to retailers, warehouse distributors, original equipment manufacturers and original equipment service part operations in the United States, Canada, Europe, Asia, Mexico and other Latin America countries.

Vehicle Control is our core aftermarket business deriving its sales from three major product groups  (1) Ignition, Emissions & Fuel Delivery, which includes the traditional internal combustion engine (ICE) dependent categories; (2) Electrical & Safety, which includes powertrain neutral vehicle technologies such as electrical switches/relays, safety related products such as anti-lock brake and vehicle speed sensors, tire pressure monitoring, park assist sensors, and advanced driver assistance components; and (3) Wire Sets & Other, which includes spark plug wire sets and other related products, and are product categories we have noted to be in secular decline based upon product life cycle.

Our Temperature Control operating segment is our thermal aftermarket business segment poised to benefit from the broader adoption of air conditioning and other thermal systems.  These systems will provide passenger comfort regardless of the vehicles’ powertrain, and are being developed to cool batteries and other products used on electric vehicles.  Segment offerings include sales from thermal products in the aftermarket business under two major product groups – (1) AC System Components, which includes compressors, connecting lines, heat exchangers, and expansion devices; and (2) Other Thermal Components, which includes parts that provide engine, transmission, electric drive motor, and battery temperature management.

Our Engineered Solutions segment supplies custom-engineered solutions to vehicle and equipment manufacturers in highly diversified global end-markets such as commercial and light vehicles, construction, agriculture, power sports and marine.  Segment offerings include product categories that offer a broad array of conventional and future-oriented technologies, including those that are specific to vehicle electrification as well as those that are powertrain-neutral.

27

Overview of Financial Performance

The following discussion should be read in conjunction with our consolidated financial statements and the notes thereto. This discussion summarizes the significant factors affecting our results of operations and the financial condition of our business during the three months ended March 31, 2024 and 2023.

	Three Months Ended
	March 31,
(In thousands, except per share data)	2024			2023
Net sales	$	331,403		$	328,028
Gross profit		89,522			91,267
Gross profit %		27	%		27.8	%
Operating income		14,619			20,746
Operating income %		4.4	%		6.3	%
Earnings from continuing operations before income taxes		13,371			17,109
Provision for income taxes		3,342			4,372
Earnings from continuing operations		10,029			12,737
Loss from discontinued operations, net of income taxes		(1,039	)		(780	)
Net earnings		8,990			11,957
Net earnings attributable to noncontrolling interest		166			39
Net earnings attributable to SMP		8,824			11,918
Per share data attributable to SMP – Diluted:
Earnings from continuing operations	$	0.44		$	0.57
Discontinued operations		(0.05	)		(0.03	)
Net earnings per common share	$	0.39		$	0.54

Consolidated net sales for the three months ended March 31, 2024 were $331.4 million, an increase of $3.4 million, or 1%, compared to $328 million in the same period in 2023.  Consolidated net sales increased in our Vehicle Control and Engineered Solutions operating segments, while consolidated net sales in our Temperature Control operating segment decreased when compared to the comparable period in the prior year.

The increase in net sales in the three months ended March 31, 2024 when compared to the comparable period in the prior year reflects the impact of multiple factors including:

• the stable demand in the automotive aftermarket business with expected flat to low single digit annual sales growth,

• the timing of pre-season customer orders in our Temperature Control operating segment in 2024, which were slightly lower than the strong customer orders in the first quarter of 2023.  Overall, full year results at Temperature Control will be dependent upon summer weather conditions and customer inventory levels, and

• strong customer demand and new business wins in our Engineered Solutions operating segment with continued optimism about the long-term growth potential of the complementary markets served in this segment.

28

Gross margins as a percentage of net sales decreased to 27% in the first quarter of 2024 when compared to 27.8% in the comparable quarter in 2023.  The gross margin percentage at Vehicle Control remained flat year-over-year, while the gross margins at Temperature Control increased and gross margins at Engineered Solutions decreased.  Automotive aftermarket gross margins in the first three months of 2024 reflect the positive impact of pricing and improved operating performance, along with the favorable customer sales mix in Vehicle Control and Temperature Control, all of which was offset by lingering inflationary cost increases in certain raw materials, labor and transportation expenses. The gross margin decrease in Engineered Solutions was driven by an unfavorable customer sales mix and inflationary cost increases.  While we anticipate continued margin pressure resulting from inflationary headwinds, we believe that our annual cost savings initiatives coupled with customer pricing should help to offset this impact to our gross margins.

Operating margin as a percentage of net sales for the three months ended March 31, 2024 was 4.4% as compared to 6.3% for the same period in 2023.  Included in our operating margin were selling, general and administrative expenses (“SG&A”) of $74.7 million, or 22.6% of net sales for the three months ended March 31, 2024 compared to $69.6 million, or 21.2% of net sales, for the same period in 2023. The $5.1 million increase in SG&A expenses in the first quarter of 2024 as compared to the first quarter of 2023 is principally due to (1) increased rent and redundancy expenses of approximately $1.1 million as we transition away from our Edwardsville, Kansas distribution center to our new facility in Shawnee, Kansas, (2) higher interest related costs of $1 million incurred in our supply chain financing arrangements, and (3) higher distribution and freight costs related to higher sales.  Excluding the impact of the incremental distribution expansion costs and supply chain interest costs, SG&A expenses in the first quarter of 2024 were 21.9% of consolidated net sales, just slightly higher than the percentage in the comparable prior year period.

Overall, our core automotive aftermarket business remains stable, and we continue to be optimistic about the long-term growth potential of the complementary markets served in our Engineered Solutions operating segment.

New Distribution Facility in Shawnee, Kansas

In May 2023, we signed a lease for a new distribution facility in Shawnee, Kansas with a lease commencement date of July 1, 2023.  The new facility will expand our total distribution network square footage to meet our growing demands in the automotive aftermarket industry.  The new 575,000 square foot facility will replace our current 363,000 square foot facility in Edwardsville, Kansas, and integrate state-of-the-art technologies to deliver improved logistics capabilities, operational efficiencies, as well as enhanced employee, customer and supplier experiences.  The new facility is located just five miles away from our Edwardsville facility, enabling us to retain our existing workforce avoiding the additional costs of hiring and training.  The facility will have a phased opening beginning in 2024 and be fully operational in early 2025.  We will incur additional costs in 2024 and 2025 during the phase-in period while we operate the two facilities.

Impact of Global Supply Chain Disruption and Inflation

Disruptions in global supply chains continue to persist, resulting in longer lead times, delays in procuring component parts and raw materials, and in inflationary cost increases in certain raw materials, labor and transportation.  In response to the global supply chain volatility and lingering inflationary cost increases, we have taken, and continue to take, several actions to mitigate the impact by working closely with our suppliers and customers to minimize any potential adverse impacts on our business, including implementing cost savings initiatives and maintaining inventory at levels to minimize potential disruptions from out-of-stock raw materials and components to ensure higher fill rates with our customers.  We believe that we have also benefited from our geographically diversified manufacturing footprint and our strategy to bring more product manufacturing in-house, especially with respect to product availability and fill rates.  We expect these inflationary trends to continue for some time, and while we believe that we will be able to somewhat offset the impact, there can be no assurances that unforeseen future events in the global supply chain affecting the availability of materials and components, and/or increasing commodity pricing, will not have an adverse effect on our business, financial condition and results of operations.

29

Sustainability

Our Company was founded in 1919 on the values of integrity, common decency and respect for others.  These values are embodied in our Code of Ethics, which has been adopted by the Board of Directors of the Company to serve as a statement of principles to guide our decision-making and reinforce our commitment to these values in all aspects of our business.  These values also serve as the foundation for our continued focus on many important sustainability issues.

We have made significant strides with respect to our sustainability initiatives, building awareness of the environmental impact of our operations, and challenging ourselves to reduce our impact by reducing our usage of energy and water, reducing our generation of waste, increasing our recycling efforts and reducing our Scope 1 and Scope 2 greenhouse gas emissions. Additionally, we believe our product offering contributes to a greener car parc through several key product categories that are critical components in automotive systems designed to improve fuel economy and reduce harmful emissions, such as fuel injectors, exhaust gas recirculation valves, sensors and tubes, and evaporative emission control system components. We also bring to market alternative energy products, which utilize cleaner burning fuels or are designed for electric or hybrid electric vehicles, and we remanufacture key categories within our product portfolio, such as air conditioning compressors, diesel injectors and diesel pumps, through processes that save energy and reduce waste.

With each year, we intend to further our commitment to sustainability initiatives, improving our environmental stewardship, finding ways to give back to our communities, and enhancing the diversity and inclusion of our workforce while offering opportunities for development.  Information on our sustainability initiatives can be found in our most current sustainability report and on our corporate website at ir.smpcorp.com under “Environmental & Social Responsibility” and at smpcares.smpcorp.com.  Information in our sustainability report and on our corporate websites regarding our sustainability initiatives are referenced for general information only and are not incorporated by reference in this Report.

30

Interim Results of Operations

Comparison of the Three Months Ended March 31, 2024 to the Three Months Ended March 31, 2023

Sales.  Consolidated net sales for the three months ended March 31, 2024 were $331.4 million, an increase of $3.4 million, or 1%, compared to $328 million in the same period of 2023, with the majority of our net sales to customers located in the United States.  Consolidated net sales increased in our Vehicle Control and Engineered Solutions operating segments, while consolidated net sales in our Temperature Control operating segment decreased when compared to the comparable period in the prior year.

The following table summarizes consolidated net sales by segment and by major product group within each segment for the three months ended March 31, 2024 and 2023 (in thousands):

	Three Months Ended
	March 31,
	2024		2023
Vehicle Control
Engine Management (Ignition, Emissions and Fuel Delivery)	$	116,085	$	116,083
Electrical and Safety		52,407		51,804
Wire Sets and Other		17,032		16,690
Total Vehicle Control		185,524		184,577
Temperature Control
AC System Components		49,960		50,798
Other Thermal Components		21,648		21,608
Total Temperature Control		71,608		72,406
Engineered Solutions
Commercial Vehicle		22,908		20,232
Construction/Agriculture		10,076		11,692
Light Vehicle		21,803		23,019
All Other		19,484		16,102
Total Engineered Solutions		74,271		71,045
Other		—		—
Total	$	331,403	$	328,028

Vehicle Control’s net sales for the three months ended March 31, 2024 increased $0.9 million, or 0.5%, to $185.5 million compared to compared to $184.6 million in the same period of 2023.  Demand in the Vehicle Control aftermarket segment remains relatively stable and our net sales performance in the first quarter of 2024 is in line with our expected flat to low single digit annual sales growth in the automotive aftermarket.

Temperature Control’s net sales for the three months ended March 31, 2024 decreased $0.8 million, or 1.1%, to $71.6 million compared to $72.4 million in the same period of 2023.  Temperature Control’s net sales for the first quarter of 2024 reflects the impact of the timing of pre-season customer orders in 2024, which were slightly lower than the strong customer orders in the first quarter of 2023.  Overall, full year results at Temperature Control will be dependent upon summer weather conditions and customer inventory levels.

Engineered Solutions’ net sales for the three months ended March 31, 2024 increased $3.3 million, or 4.5%, to $74.3 million compared to $71 million in the same period of 2023.  Overall, net sales in our Engineered Solutions operating segment showed year-over-year improvement driven by strong demand and new business wins, and we continue to be optimistic about the long-term growth potential of the complementary markets served in our Engineered Solutions operating segment.

31

Gross Margins.  Gross margins, as a percentage of consolidated net sales, decreased to 27% in the first quarter of 2024, compared to 27.8% in the first quarter of 2023.  The following table summarizes gross margins by segment for the three months ended March 31, 2024 and 2023, respectively (in thousands):

Three Months Ended March 31,	Vehicle Control			Temperature Control			Engineered Solutions			Other		Total
2024
Net sales	$	185,524		$	71,608		$	74,271		$	—	$	331,403
Gross margins		58,899			19,689			10,934			—		89,522
Gross margin percentage		31.7	%		27.5	%		14.7	%		—		27	%
2023
Net sales	$	184,577		$	72,406		$	71,045		$	—	$	328,028
Gross margins		58,472			19,155			13,640			—		91,267
Gross margin percentage		31.7	%		26.5	%		19.2	%		—		27.8	%

Compared to the first three months of 2023, gross margins at Vehicle Control remained flat at 31.7%, while gross margins at Temperature Control increased 1 percentage point from 26.5 % to 27.5%, and gross margins at Engineered Solutions decreased 4.5 percentage points from 19.2% to 14.7%.

The gross margin percentage in our Vehicle Control operating segment remained flat year-over-year reflecting the positive impact of pricing, operating performance and customer sales mix, offset by the lingering inflationary increases in material and labor costs; while the gross margin percentage increase in our Temperature Control operating segment reflects the impact of pricing and operating performance, as well as favorable customer sales mix.  Gross margins as a percentage of net sales in our Engineered Solutions operating segment decreased in the first quarter of 2024 when compared to the comparable period in 2023 driven primarily by unfavorable customer sales mix and inflationary cost increases.  All of our operating segments were negatively impacted by the lingering inflationary cost increases in certain raw materials, labor and transportation expenses.  While we anticipate continued margin pressure resulting from inflationary headwinds, we believe that our annual cost savings initiatives coupled with customer pricing should help to offset this impact to our gross margins.

Selling, General and Administrative Expenses.  Selling, general and administrative expenses (“SG&A”) increased to $74.7 million, or 22.6% of consolidated net sales, in the first quarter of 2024, as compared to $69.6 million, or 21.2% of consolidated net sales in the first quarter of 2023. The $5.1 million increase in SG&A expenses in the first quarter of 2024 as compared to the first quarter of 2023 is principally due to (1) increased rent and redundancy expenses of approximately $1.1 million as we transition away from our Edwardsville, Kansas distribution center to our new distribution facility in Shawnee, Kansas, (2) higher interest related costs of $1 million incurred in our supply chain financing arrangements, and (3) higher distribution and freight costs related to higher sales.  Excluding the impact of the incremental distribution expansion costs and supply chain interest costs, SG&A expenses in the first quarter of 2024 were 21.9% of consolidated net sales, just slightly higher than the percentage in the comparable prior year period.

Restructuring and Integration Expenses.  Restructuring and integration expenses were $0.2 million in first three months of 2024 compared to $0.9 million in the same period of 2023.  Restructuring and integration expenses incurred in the first three months of 2024 and 2023 relate to the Cost Reduction Initiative announced in the fourth quarter of 2022.

Restructuring and integration expenses incurred during the three months ended March 31, 2024 of $0.2 million consisted primarily of expenses in connection with the relocation of machinery and equipment to our manufacturing facilities in Reynosa, Mexico; while restructuring and integration expenses incurred during the three months ended March 31, 2023 consisted of (1) employee severance expenses of approximately $0.8 million related to our product line relocations, and (2) expenses of approximately $0.1 million related to the relocation of machinery and equipment to our manufacturing facilities in Reynosa, Mexico.  We anticipate that the Cost Reduction Initiative will be substantially completed by the end of the second quarter of 2024.  Additional restructuring costs related to the initiative are expected to be immaterial.

32

Operating Income.  Operating income was $14.6 million, or 4.4% of consolidated net sales, in the first quarter of 2024 compared to $20.7 million, or 6.3% of consolidated net sales, in the first quarter of 2023.  The year-over-year decrease in operating income of $6.1 million is primarily the result of lower gross margins as a percentage of net sales, and higher SG&A expenses, including the incremental distribution expansion costs, offset, in part, by higher net sales and lower restructuring and integration expenses.

Other Non-Operating Income, Net.  Other non-operating income, net was $0.8 million in the first quarter of 2024, compared to other non-operating income, net of $0.2 million in the first quarter of 2023.  The year-over-year increase in other non-operating income, net results from the increase in year-over-year equity income from our joint ventures.  Equity income from our joint ventures increased in spite of the year-over-year decline in the equity income of Gwo Yng, reflecting the impact of our acquisition of an additional 15% equity interest in Gwo Yng in July 2023.  Commencing on the date of our equity interest increase, the financial results of Gwo Yng were no longer accounted for under the equity method of accounting.  Instead, Gwo Yng’s financial results are reported on a consolidated basis, resulting in lower joint venture equity income.  As such, other non-operating income, net includes incremental equity income of Gwo Yng of $0.2 million in the first quarter of 2023.

Interest Expense.  Interest expense decreased to $2.1 million in the first quarter of 2024 compared to $3.9 million in the same period of 2023.  The year-over-year decrease in interest expense reflects the impact of lower average outstanding borrowings in the first quarter of 2024 when compared to the first quarter of 2023, and slightly lower year-over-year average interest rates on our credit facilities.

Income Tax Provision.  The income tax provision in the first quarter of 2024 was $3.3 million at an effective tax rate of 25% compared to $4.4 million at an effective tax rate of 25.6% for the same period in 2023.  The effective tax rate was essentially flat year-over-year.

Loss from Discontinued Operations.  During the first quarter of 2024 and 2023, the loss from discontinued operations, net of tax was $1 million and $0.8 million, respectively.  The loss from discontinued operations, net of tax, reflects legal and other administrative expenses associated with our asbestos-related liability.  As discussed more fully in Note 18, “Commitments and Contingencies” in the notes to our consolidated financial statements (unaudited), we are responsible for certain future liabilities relating to alleged exposure to asbestos containing products.

Net Earnings Attributable to Noncontrolling Interest.  Net earnings attributable to noncontrolling interest relates to the minority shareholders’ interest in our 70% owned joint venture in Hong Kong, with operations in Shanghai and Wuxi, China (“Trombetta Asia, Ltd.”) and, in our 80% ownership in Gwo Yng, commencing in July 2023 upon the completion of our step acquisition.  Net earnings attributable to the noncontrolling interest were $166,000 and $39,000 during the three months ended March 31, 2024 and March 31, 2023, respectively.

Restructuring and Integration Programs

For a detailed discussion on the restructuring and integration costs, see Note 4, “Restructuring and Integration Expenses,” of the notes to our consolidated financial statements (unaudited).

33

Liquidity and Capital Resources

Our primary cash requirements include working capital, capital expenditures, regular quarterly dividends, stock repurchases, principal and interest payments on indebtedness and acquisitions. The following table summarizes our primary sources of funds including ongoing net cash flows from operating activities and availability under our Credit Agreement.

	March 31,						December 31,
(In thousands)	2024			2023			2023
Operating cash flows	$	(45,716	)	$	(20,442	)	$	144,260
Total debt	$	214,902		$	273,101		$	156,211
Cash and cash equivalents		27,113			24,196			32,526
Net debt	$	187,789		$	248,905		$	123,685
Remaining borrowing capacity	$	274,230		$	220,881		$	334,180
Total liquidity		301,343			245,077			366,706

Operating Activities. During the first three months of 2024, cash used in operating activities was $45.7 million compared to $20.4 million in the same period of 2023.  The increase in cash used in operating activities resulted primarily from the decrease in net earnings, the larger year-over-year increase in accounts receivable, the increase in inventories compared to a decrease in inventories in the prior year, and the decrease in accounts payable compared to an increase in accounts payable in the prior year, partially offset by the larger year-over-year decrease in prepaid expenses and other current assets, and the increase in sundry payables and accrued expenses compared to a decrease in sundry payables and accrued expenses in the prior year.

Net earnings during the first quarter of 2024 were $9 million compared to $12 million in the first quarter of 2023.  During the first three months of 2024, (1) the increase in accounts receivable was $44 million compared to the year-over-year increase in accounts receivable of $42.6 million in 2023; (2) the increase in inventories was $14.7 million compared to the year-over-year decrease in inventories of $6.2 million in 2023; (3) the decrease in accounts payable was $9.3 million compared to the year-over-year increase in accounts payable of $4.8 million in 2023; (4) the decrease in prepaid expenses and other current assets was $1.6 million compared to the year-over-year decrease in prepaid expenses and other current assets of $1.2 million in 2023; and (5) the increase in sundry payables and accrued expenses was $4 million compared to the year-over-year decrease in sundry payables and accrued expenses of $10.7 million in 2023.  During the year ended December 31, 2023, we generated significant operating cash flow by reducing our inventory to more normalized levels while actively managing our accounts receivable and accounts payable. We will continue to actively manage our working capital to maximize our operating cash flow, and now that global supply chains have stabilized, expect cash flows from operations to return to historical levels.

Investing Activities.  Cash used in investing activities was $10.1 million in the first three months of 2024 compared to $4.4 million in the same period of 2023.  Investing activities during the first three months of 2024 and 2023 consisted of capital expenditures of $10.1 million and $4.4 million, respectively.  The year-over-year increase in capital expenditures relates to the implementation of upgraded automation equipment, racking and other equipment, as we invest in the start-up of our new distribution facility in Shawnee, Kansas.

Financing Activities.  Cash provided by financing activities was $50.4 million in the first three months of 2024 as compared to $27.3 million in the same period of 2023.  During the first three months of 2024, (1) we increased borrowings under our Credit Agreement by $58.7 million; (2) paid dividends of $6.4 million; and (3) made cash payments for the repurchase of shares of our common stock of $2.2 million.  Cash provided by borrowings under our Credit Agreement in the three months ended March 31, 2024 was used to fund our operating activities, investing activities, pay dividends, and repurchase shares of our common stock.

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During the first three months of 2023, (1) we increased borrowings under our Credit Agreement by $33.5 million; and (2) we paid dividends of $6.3 million.  Cash provided by borrowings under our Credit Agreement in the three months ended March 31, 2023 was used to fund our operating activities, investing activities, and pay dividends.

Dividends of $6.4 million and $6.3 million were paid in the three months ended March 31, 2024 and 2023, respectively.  Quarterly dividends were paid at a rate of $0.29 in both 2024 and 2023.

Liquidity.

Our primary cash requirements include working capital, capital expenditures, regular quarterly dividends, stock repurchases, principal and interest payments on indebtedness and acquisitions.  Our primary sources of funds are ongoing net cash flows from operating activities and availability under our Credit Agreement (as detailed below).

In June 2022, the Company entered into a new Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders (the “Credit Agreement”).  The Credit Agreement provides for a $500 million credit facility comprised of a $100 million term loan facility (the “term loan”) and a $400 million multi-currency revolving credit facility available in U.S. dollars, euros, British pound sterling, Swiss francs, Canadian dollars and other currencies as agreed to by the administrative agent and the lenders (the “revolving facility”).  The Credit Agreement replaces and refinances the 2015 Credit Agreement.

Borrowings under the Credit Agreement were used to repay all outstanding borrowings under the 2015 Credit Agreement, and pay certain fees and expenses incurred in connection with the Credit Agreement, with future borrowings used for other general corporate purposes of the Company and its subsidiaries.  The term loan amortizes in quarterly installments of 1.25% in each of the first four years, and quarterly installments of 2.5% in the fifth year of the Credit Agreement.  The revolving facility has a $25 million sub-limit for the issuance of letters of credit and a $25 million sub-limit for the borrowing of swingline loans.  The maturity date is June 1, 2027.  The Company may request up to two one-year extensions of the maturity date.

The Company may, upon the agreement of one or more then existing lenders or of additional financial institutions not currently party to the Credit Agreement, increase the revolving facility commitments or obtain incremental term loans by an aggregate amount not to exceed (x) the greater of (i) $168 million or (ii) 100% of consolidated EBITDA (as defined in the Credit Agreement) for the four fiscal quarters ended most recently before such date, plus (y) the amount of any voluntary prepayment of term loans, plus (z) an unlimited amount so long as, immediately after giving effect thereto, the pro forma First Lien Net Leverage Ratio (as defined in the Credit Agreement) does not exceed 2.5 to 1.0.

Term loan and revolver facility borrowings in U.S. dollars bear interest, at the Company’s election, at a rate per annum equal to Term SOFR plus 0.10% plus an applicable margin, or an alternate base rate plus an applicable margin, where the alternate base rate is the greater of the prime rate, the federal funds effective rate plus 0.50%, and one-month Term SOFR plus 0.10% plus 1.00%. Term loan borrowings are being made at one-month Term SOFR.  The applicable margin for the term benchmark borrowings ranges from 1.0% to 2.0%, and the applicable margin for alternate base rate borrowings ranges from 0% to 1.0%, in each case, based on the total net leverage ratio of the Company and its restricted subsidiaries.  The Company may select interest periods of one, three or six months for Term SOFR borrowings.  Interest is payable at the end of the selected interest period, but no less frequently than quarterly.

The Company’s obligations under the Credit Agreement are guaranteed by its material domestic subsidiaries (each, a “Guarantor”), and secured by a first priority perfected security interest in substantially all of the existing and future personal property of the Company and each Guarantor, subject to certain exceptions.  The collateral security described above also secures certain banking services obligations and interest rate swaps and currency or other hedging obligations of the Company owing to any of the then existing lenders or any affiliates thereof.  Concurrently with the Company’s entry into the Credit Agreement, the Company also entered into a seven year interest rate swap agreement with Wells Fargo Bank, N.A., Co-Syndication Agent and lender under the Credit Agreement, on $100 million of borrowings under the Credit Agreement. The interest rate swap agreement matures in May 2029.

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Outstanding borrowings at March 31, 2024 under the Credit Agreement were $214.7 million, consisting of current borrowings of $5 million and long-term debt of $209.7 million; while outstanding borrowings at December 31, 2023 were $156 million, consisting of current borrowings of $5 million and long-term debt of $151 million.  Letters of credit outstanding under the Credit Agreement were $2.3 million at both March 31, 2024 and December 31, 2023.

At March 31, 2024, the weighted average interest rate under our Credit Agreement was 5.5%, which consisted of $211 million in borrowings under Term SOFR, adjusted for the impact of the interest rate swap agreement on $100 million of borrowings, and an alternative base rate borrowing of $3.7 million at 8.8%.  At December 31, 2023, the weighted average interest rate under our Credit Agreement was 5%, which consisted of $156 million in borrowings at 5% under Term SOFR, adjusted for the impact of the interest rate swap agreement on $100 million of borrowings.  During the three months ended March 31, 2024, our average daily alternative base rate loan balance was $1.7 million, compared to a balance of $0.3 million for the three months ended March 31, 2023 and a balance of $0.1 million for the year ended December 31, 2023.

The Credit Agreement contains customary covenants limiting, among other things, the incurrence of additional indebtedness, the creation of liens, mergers, consolidations, liquidations and dissolutions, sales of assets, dividends and other payments in respect of equity interests, acquisitions, investments, loans and guarantees, subject, in each case, to customary exceptions, thresholds and baskets.  The Credit Agreement also contains customary events of default.

In November 2023, our Polish subsidiary, SMP Poland sp. z.o.o., further amended its overdraft facility with HSBC Continental Europe (Spolka Akcyjna) Oddzial w Polsce. The overdraft facility, as amended, provides for borrowings under the facility in euros and U.S. dollars.  Under the amended terms, the overdraft facility provides for borrowings of up to Polish zloty 30 million (approximately $7.5 million) if borrowings are solely in Polish zloty, or up to 85% of the Polish zloty 30 million limit (approximately $6.4 million) if borrowings are in euros and/or U.S. dollars.  The overdraft facility had an original maturity date in March 2024, with automatic three-month renewals until June 2027, subject to cancellation by either party, at its sole discretion, at least 30 days prior to the commencement of the three-month renewal period. The facility automatically renewed in March 2024 to a June 2024 maturity date.  Borrowings under the amended overdraft facility will bear interest at a rate equal to (1) the one month Warsaw Interbank Offered Rate (“WIBOR”) + 1.0% for borrowings in Polish zloty, (2) the one month Euro Interbank Offered Rate (“EURIBOR”) + 1.0% for borrowings in euros, and (3) the Mid-Point of the Fed Target Range + 1.25% for borrowings in U.S. dollars.  Borrowings under the overdraft facility are guaranteed by Standard Motor Products, Inc., the ultimate parent company.  There were no borrowings outstanding under the overdraft facility at both March 31, 2024 and December 31, 2023.

In order to reduce our accounts receivable balances and improve our cash flow, we are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions.  We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt.  Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables, and do not service the receivables after the sale.  As such, these transactions are accounted for as a sale.

Pursuant to these agreements, we sold $170.8 million and $170.9 million of receivables during the three months ended March 31, 2024 and 2023, respectively.  Receivables presented at financial institutions and not yet collected as of March 31, 2024 and December 31, 2023 were approximately $10.9 million and $4.5 million, respectively, and remained in our accounts receivable balance as of that date. All receivables sold were reflected as a reduction of accounts receivable in the consolidated balance sheet at the time of sale.  A charge in the amount of $10 million and $9 million related to the sale of receivables is included in selling, general and administrative expense in our consolidated statements of operations for the three months ended March 31, 2024 and 2023, respectively.

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To the extent that these arrangements are terminated, our financial condition, results of operations, cash flows and liquidity could be adversely affected by extended payment terms, or delays or failures in collecting trade accounts receivable.  The utility of the supply chain financing arrangements also depends upon a benchmark reference rate for the purpose of determining the discount rate applicable to each arrangement.  If the benchmark reference rate increases significantly, we may be negatively impacted as we may not be able to pass these added costs on to our customers, which could have a material and adverse effect upon our financial condition, results of operations and cash flows.

In July 2022, our Board of Directors authorized the purchase of up to $30 million of our common stock under a stock repurchase program.  Stock will be purchased from time to time in the open market, or through private transactions, as market conditions warrant.  Under this program, during the three months ended March 31, 2024, we repurchased 79,922 shares of our common stock at a total cost of $2.6 million.  As of March 31, 2024, there was approximately $27.4 million available for future stock purchases under the program.  From the end of the first quarter through April 29, 2024, we repurchased an additional 106,440 shares of our common stock under the program at a total cost of $3.5 million, thereby reducing the amount available for future repurchases under the Board of Directors authorization to $23.9 million.

Material Cash Commitments

Material cash commitments as of March 31, 2024 consist of required cash payments to service our outstanding borrowings of $214.7 million under our Credit Agreement with JPMorgan Chase Bank, N.A., as agent and the future minimum cash requirements of $134.7 million through 2034 under operating leases.  All of our other cash commitments as of March 31, 2024 are not material.  For additional information related to our material cash commitments, see Note 8, “Leases,” and Note 9, “Credit Facilities and Long-Term Debt,” in the notes to our consolidated financial statements (unaudited).

We anticipate that our cash flow from operations, available cash, and available borrowings under our Credit Agreement will be adequate to meet our future liquidity needs for at least the next twelve months.  Significant assumptions underlie this belief, including, among other things, that we will be able to mitigate the future impact, if any, of disruptions in the supply chain caused by geo-political risks, future increases in interest rates, and significant inflationary cost increases in raw materials, labor and transportation that we are unable to pass through our customers, macroeconomic uncertainty, and that there will be no material adverse developments in our business, liquidity or capital requirements.  If material adverse developments were to occur in any of these areas, there can be no assurance that our business will generate sufficient cash flow from operations, or that future borrowings will be available to us under our Credit Agreement in amounts sufficient to enable us to pay the principal and interest on our indebtedness, or to fund our other liquidity needs.  In addition, if we default on any of our indebtedness, or breach any financial covenant in our Credit Agreement, our business could be adversely affected.

For further information regarding the risks in our business, refer to Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023.

Critical Accounting Policies and Estimates

We have identified the accounting policies and estimates surrounding the “Valuation of Long-Lived and Intangible Assets and Goodwill,” and “Asbestos Litigation” as critical to our business operations and the understanding of our results of operations.  The impact and any associated risks related to these policies and estimates on our business operations is discussed throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” where such policies and estimates affect our reported and expected financial results. There have been no material changes to these and other accounting policies and estimates from the information provided in Note 1 of the Notes to our Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2023.

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You should be aware that preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. We can give no assurances that actual results will not differ from those estimates.  Although we do not believe that there is a reasonable likelihood that there will be a material change in the future estimates, or in the assumptions that we use in calculating the estimates, the uncertain future effects, if any, of the disruptions in the supply chain caused by geo-political risks, future increases in interest rates, inflation, macroeconomic uncertainty, and other unforeseen changes in the industry, or business, could materially impact the estimates, and may have a material adverse effect on our business, financial condition and results of operations.

Recently Issued Accounting Pronouncements

For a detailed discussion on recently issued accounting pronouncements and their impact on our consolidated financial statements, see Note 2, “Summary of Significant Accounting Policies” of the notes to our consolidated financial statements (unaudited).

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Quantitative and Qualitative Disclosure about Market Risk

We are exposed to market risk, primarily related to foreign currency exchange and interest rates. These exposures are actively monitored by management. Our exposure to foreign exchange rate risk is due to certain costs, revenues and borrowings being denominated in currencies other than one of our subsidiary’s functional currency. Similarly, we are exposed to market risk as the result of changes in interest rates, which may affect the cost of our financing. It is our policy and practice to use derivative financial instruments only to the extent necessary to manage exposures. We do not hold or issue derivative financial instruments for trading or speculative purposes.

Exchange Rate Risk

We have exchange rate exposure, primarily, with respect to the Canadian dollar, the euro, the British pound sterling, the Polish zloty, the Hungarian forint, the Mexican peso, the Taiwan dollar, the Chinese yuan renminbi and the Hong Kong dollar.  As of March 31, 2024 and December 31, 2023, our monetary assets and liabilities which are subject to this exposure are immaterial, therefore, the potential immediate loss to us that would result from a hypothetical 10% change in foreign currency exchange rates would not be expected to have a material impact on our earnings or cash flows.  This sensitivity analysis assumes an unfavorable 10% fluctuation in the exchange rates affecting the foreign currencies in which monetary assets and liabilities are denominated and does not take into account the incremental effect of such a change on our foreign currency denominated revenues.

Interest Rate Risk

We manage our exposure to interest rate risk through the proportion of fixed rate debt and variable rate debt in our debt portfolio. To reduce our market risk for changes in interest rates on our variable rate borrowings, and to manage a portion of our exposure to changes in interest rates, we occasionally enter into interest rate swap agreements.

In June 2022, we entered into a seven year interest rate swap agreement with a notional amount of $100 million that is to mature in May 2029.  The interest rate swap agreement has been designated as a cash flow hedge of interest payments on $100 million of borrowings under our Credit Agreement. Under the terms of the swap agreement, we will receive monthly variable interest payments based on one month Term SOFR and will pay interest based upon a fixed rate of 2.683% per annum, adjusted upward for the credit spread adjustment in the Credit Agreement of 0.10% and the loan margin in the Credit Agreement of 1.25% at March 31, 2024.

As of March 31, 2024, we had $214.7 million of outstanding borrowings under our Credit Agreement, of which $114.7 million bears interest at variable rates of interest and $100 million bears interest at fixed rates, after consideration of the interest rate swap agreement entered into in June 2022.  Additionally, we invest our excess cash in highly liquid short-term investments. Based upon our current level of borrowings under our facilities and our excess cash, the effect of a hypothetical, instantaneous and unfavorable change of 100 basis points in the interest rate may have an approximate $0.9 million annualized negative impact on our earnings or cash flows.

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In addition, we are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions.  We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt.  During the three months ended March 31, 2024, we sold $170.8 million of receivables.  Depending upon the level of sales of receivables pursuant these agreements, the effect of a hypothetical, instantaneous and unfavorable change of 100 basis points in the margin rate may have an approximate $1.7 million negative impact on our earnings or cash flows based upon receivables sold in the three months ended March 31, 2024.  The charge related to the sale of receivables is included in selling, general and administrative expenses in our consolidated statements of operations.

Other than the aforementioned, there have been no significant changes to the information presented in Item 7A (Market Risk) of our Annual Report on Form 10-K for the year ended December 31, 2023.

ITEM 4. CONTROLS AND PROCEDURES

(a)          Evaluation of Disclosure Controls and Procedures.

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Exchange Act, as of the end of the period covered by this Report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Report.

(b)          Changes in Internal Control Over Financial Reporting.

During the quarter ended March 31, 2024, we have not made any changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.  We review, document and test our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in the 2013 Internal Control – Integrated Framework.  We may from time to time make changes aimed at enhancing their effectiveness and to ensure that our systems evolve with our business. These efforts may lead to various changes in our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The information required by this Item is incorporated herein by reference to the information set forth in Item 1, “Consolidated Financial Statements” of this Report under the caption “Asbestos” appearing in Note 18, “Commitments and Contingencies,” of the notes to our consolidated financial statements (unaudited).

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table provides information relating to the Company’s purchases of its common stock for the first quarter of 2024:

Period	Total Number of Shares Purchased (a)		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b)		Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Plans or Programs (b)
January 1 – 31, 2024		—	$	—		—	$	—
February 1 – 29, 2024		—		—		—		—
March 1 – 31, 2024		79,922		32.18		79,922		27,428,342
Total		79,922	$	32.18		79,922	$	27,428,342

(a) All shares were purchased through the publicly announced stock repurchase programs in open-market transactions.

(b) In July 2022, our Board of Directors authorized the purchase of up $30 million of our common stock under a stock repurchase program.  Stock will be purchased from time to time in the open market, or through private transactions, as market conditions warrant.  Under this program, during the three months ended March 31, 2024, we repurchased 79,922 shares of our common stock at a total cost of $2.6 million.  As of March 31, 2024, there was approximately $27.4 million available for future stock purchases under the program.  From the end of the first quarter through April 29, 2024, we repurchased an additional 106,440 shares of our common stock under the program at a total cost of $3.5 million, thereby reducing the amount available for future repurchases under the Board of Directors authorization to $23.9 million.

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ITEM 6. EXHIBITS

Exhibit Number
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH**	Inline XBRL Taxonomy Extension Schema Document.
101.CAL**	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB**	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE**	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF**	Inline XBRL Taxonomy Extension Definition Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

** In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to the Original Filing shall be deemed to be “furnished” and not “filed.”

41

SIGNATURES

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

	STANDARD MOTOR PRODUCTS, INC.
	(Registrant)
Date: May 1, 2024	/s/ Nathan R. Iles
	Nathan R. Iles
	Chief Financial Officer
	(Principal Financial and
	Accounting Officer)

42

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Eric P. Sills, certify that:

1. I have reviewed this report on Form 10-Q of Standard Motor Products, Inc.;

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

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

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

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

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

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

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 1, 2024
	/s/ Eric P. Sills
	Eric P. Sills
	Chief Executive Officer and President

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Nathan R. Iles, certify that:

1. I have reviewed this report on Form 10-Q of Standard Motor Products, Inc.;

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

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

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

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

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

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

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 1, 2024
	/s/ Nathan R. Iles
	Nathan R. Iles
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Standard Motor Products, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Eric P. Sills, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Eric P. Sills

Eric P. Sills

Chief Executive Officer and President

May 1, 2024

*          A signed original of this written statement required by Section 906 has been provided to Standard Motor Products, Inc. and will be retained by Standard Motor Products, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Standard Motor Products, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Nathan R. Iles, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Nathan R. Iles

Nathan R. Iles

Chief Financial Officer

May 1, 2024

*          A signed original of this written statement required by Section 906 has been provided to Standard Motor Products, Inc. and will be retained by Standard Motor Products, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	Apr. 29, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	001-04743
Entity Registrant Name	Standard Motor Products, Inc.
Entity Central Index Key	0000093389
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	11-1362020
Entity Address, Address Line One	37-18 Northern Blvd.
Entity Address, City or Town	Long Island City
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11101
City Area Code	718
Local Phone Number	392-0200
Title of 12(b) Security	Common Stock, par value $2.00 per share
Trading Symbol	SMP
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		21,814,673

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2024		Mar. 31, 2023
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Net sales	[1]	$ 331,403		$ 328,028
Cost of sales		241,881		236,761
Gross profit		89,522		91,267
Selling, general and administrative expenses		74,733		69,633
Restructuring and integration expenses		192	[2]	912
Other income, net		22		24
Operating income		14,619		20,746
Other non-operating income, net		819		225
Interest expense		2,067		3,862
Earnings from continuing operations before income taxes		13,371		17,109
Provision for income taxes		3,342		4,372
Earnings from continuing operations		10,029		12,737
Loss from discontinued operations, net of income taxes		(1,039)		(780)
Net earnings		8,990		11,957
Net earnings attributable to noncontrolling interest		166		39
Net earnings attributable to SMP	[3]	8,824		11,918
Net earnings attributable to SMP
Earnings from continuing operations		9,863		12,698
Discontinued operations		(1,039)		(780)
Net earnings attributable to SMP	[3]	$ 8,824		$ 11,918
Net earnings per common share - Basic:
Earnings from continuing operations (in dollars per share)		$ 0.45		$ 0.59
Discontinued operations (in dollars per share)		(0.05)		(0.04)
Net earnings per common share - Basic (in dollars per share)		0.4		0.55
Net earnings per common share - Diluted:
Earnings from continuing operations (in dollars per share)		0.44		0.57
Discontinued operations (in dollars per share)		(0.05)		(0.03)
Net earnings per common share - Diluted (in dollars per share)		0.39		0.54
Dividend declared per share (in dollars per share)		$ 0.29		$ 0.29
Average number of common shares (in shares)		21,923,830		21,609,618
Average number of common shares and dilutive common shares (in shares)		22,372,543		22,097,750

[1] There are no intersegment sales among our Vehicle Control, Temperature Control and Engineered Solutions operating segments.

[2] Restructuring and integration expenses incurred during the three months ended March 31, 2024 consist of $101,000 in our Vehicle Control segment, $58,000 in our Temperature Control segment and $33,000 in our Engineered Solutions segment.

[3] Throughout this Form 10-Q, “SMP” refers to Standard Motor Products, Inc. and subsidiaries.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net earnings	$ 8,990	$ 11,957
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(1,224)	2,820
Derivative instruments	1,391	(1,377)
Pension and postretirement plans	(3)	(3)
Total other comprehensive income, net of tax	164	1,440
Total comprehensive income	9,154	13,397
Comprehensive income (loss) attributable to noncontrolling interest, net of tax:
Net earnings	166	39
Foreign currency translation adjustments	(4)	(29)
Comprehensive income attributable to noncontrolling interest, net of tax	162	10
Comprehensive income attributable to SMP	$ 8,992	$ 13,387

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash and cash equivalents	$ 27,113	$ 32,526
Accounts receivable, less allowances for discounts and expected credit losses of $8,284 and $8,045 in 2024 and 2023, respectively	203,940	160,282
Inventories	520,702	507,075
Unreturned customer inventories	18,007	18,240
Prepaid expenses and other current assets	26,674	26,100
Total current assets	796,436	744,223
Property, plant and equipment, net of accumulated depreciation of $264,168 and $259,656 for 2024 and 2023, respectively	124,822	121,872
Operating lease right-of-use assets	102,060	100,065
Goodwill	134,624	134,729
Other intangibles, net	90,000	92,308
Deferred income taxes	40,241	40,533
Investments in unconsolidated affiliates	24,751	24,050
Other assets	38,627	35,267
Total assets	1,351,561	1,293,047
CURRENT LIABILITIES:
Current portion of term loan and other debt	5,030	5,029
Accounts payable	98,293	107,455
Sundry payables and accrued expenses	58,714	63,303
Accrued customer returns	47,220	38,238
Accrued core liability	17,438	18,399
Accrued rebates	45,191	42,278
Payroll and commissions	27,326	29,561
Total current liabilities	299,212	304,263
Long-term debt	209,872	151,182
Noncurrent operating lease liabilities	90,667	88,974
Other accrued liabilities	27,704	25,742
Accrued asbestos liabilities	68,985	72,013
Total liabilities	696,440	642,174
Commitments and contingencies
Stockholders' equity:
Common stock - par value $2.00 per share: Authorized - 30,000,000 shares; issued 23,936,036 shares	47,872	47,872
Capital in excess of par value	102,704	101,751
Retained earnings	575,658	573,226
Accumulated other comprehensive income	(5,806)	(5,974)
Treasury stock - at cost (2,022,276 shares and 2,018,892 shares in 2024 and 2023, respectively)	(81,278)	(81,811)
Total SMP stockholders' equity	639,150	635,064
Noncontrolling interest	15,971	15,809
Total stockholders' equity	655,121	650,873
Total liabilities and stockholders' equity	$ 1,351,561	$ 1,293,047

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
CURRENT ASSETS:
Accounts receivable, allowances for discounts and expected credit losses	$ 8,284	$ 8,045
Property, plant and equipment, accumulated depreciation	$ 264,168	$ 259,656
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 2	$ 2
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	23,936,036	23,936,036
Treasury stock - at cost (in shares)	2,022,276	2,018,892

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 8,990	$ 11,957
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization	7,301	7,082
Amortization of deferred financing cost	120	124
Increase to allowance for expected credit losses	191	388
Increase to inventory reserves	1,068	962
Equity income from joint ventures	(694)	(154)
Employee Stock Ownership Plan allocation	697	742
Stock-based compensation	1,270	1,532
(Increase) decrease in deferred income taxes	(180)	213
Loss on discontinued operations, net of tax	1,039	780
Change in assets and liabilities:
Increase in accounts receivable	(43,978)	(42,617)
(Increase) decrease in inventories	(14,670)	6,195
Decrease in prepaid expenses and other current assets	1,649	1,165
Increase (decrease) in accounts payable	(9,274)	4,809
Increase (decrease) in sundry payables and accrued expenses	3,988	(10,656)
Net changes in other assets and liabilities	(3,233)	(2,964)
Net cash used in operating activities	(45,716)	(20,442)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(10,086)	(4,363)
Other investing activities	15	13
Net cash used in investing activities	(10,071)	(4,350)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of term loan	(1,250)	(1,250)
Net borrowings under revolving credit facilities	59,950	34,750
Net repayments of other debt and lease obligations	(8)	(22)
Purchase of treasury stock	(2,235)	0
Increase in overdraft balances	315	125
Dividends paid	(6,392)	(6,261)
Net cash provided by financing activities	50,380	27,342
Effect of exchange rate changes on cash	(6)	496
Net increase (decrease) in cash and cash equivalents	(5,413)	3,046
CASH AND CASH EQUIVALENTS at beginning of period	32,526	21,150
CASH AND CASH EQUIVALENTS at end of period	27,113	24,196
Cash paid during the period for:
Interest	2,241	3,970
Income taxes	$ 3,532	$ 3,163

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Capital in Excess of Par Value [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Total SMP [Member]	Non-Controlling Interest [Member]	Total
Balance at beginning of period at Dec. 31, 2022	$ 47,872	$ 105,615	$ 564,242	$ (12,470)	$ (95,239)	$ 610,020	$ 11,018	$ 621,038
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	0	0	11,918	0	0	11,918	39	11,957
Other comprehensive income (loss), net of tax	0	0	0	1,469	0	1,469	(29)	1,440
Cash dividends paid	0	0	(6,261)	0	0	(6,261)	0	(6,261)
Stock-based compensation	0	1,044	0	0	488	1,532	0	1,532
Employee Stock Ownership Plan	0	16	0	0	2,950	2,966	0	2,966
Balance at end of period at Mar. 31, 2023	47,872	106,675	569,899	(11,001)	(91,801)	621,644	11,028	632,672
Balance at beginning of period at Dec. 31, 2023	47,872	101,751	573,226	(5,974)	(81,811)	635,064	15,809	650,873
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	0	0	8,824	0	0	8,824	166	8,990
Other comprehensive income (loss), net of tax	0	0	0	168	0	168	(4)	164
Cash dividends paid	0	0	(6,392)	0	0	(6,392)	0	(6,392)
Purchase of treasury stock	0	0	0	0	(2,571)	(2,571)	0	(2,571)
Stock-based compensation	0	950	0	0	320	1,270	0	1,270
Employee Stock Ownership Plan	0	3	0	0	2,784	2,787	0	2,787
Balance at end of period at Mar. 31, 2024	$ 47,872	$ 102,704	$ 575,658	$ (5,806)	$ (81,278)	$ 639,150	$ 15,971	$ 655,121

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Basis of Presentation

3 Months Ended

Mar. 31, 2024

Basis of Presentation [Abstract]

Basis of Presentation

Note 1.  Basis of Presentation

Standard Motor Products, Inc. and its subsidiaries (referred to hereinafter in these notes to the consolidated financial statements as “we,” “us,” “our,” “SMP,” or the “Company”) is a leading manufacturer and distributor of premium replacement parts in the automotive aftermarket, and a custom-engineered solutions provider to vehicle and equipment manufacturers in diverse non-aftermarket end markets.  Our automotive aftermarket is comprised of two segments, Vehicle Control and Temperature Control, while our Engineered Solutions segment offers a broad array of conventional and future-oriented technologies in markets for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics and lawn and garden.  We sell our products primarily to retailers, warehouse distributors, original equipment manufacturers and original equipment service part operations in the United States, Canada, Europe, Asia, Mexico and other Latin American countries.

The accompanying unaudited financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.  The unaudited consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 50% equity ownership, except in instances where the minority shareholder maintains substantive participating rights, in which case we follow the equity method of accounting.  In instances where we have more than a 50% equity ownership and the minority shareholder does not maintain substantive participating rights, our consolidated financial statements include the accounts of the company on a consolidated basis with its net income and equity reported at amounts attributable to both our equity position and that of the noncontrolling interest.  Investments in unconsolidated affiliates are accounted for on the equity method, as we do not have a controlling financial interest but have the ability to exercise significant influence.  All significant inter-company items have been eliminated.

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.  The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year.

Reclassification

Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2024 presentation.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2.  Summary of Significant Accounting Policies

The preparation of consolidated annual and quarterly financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods.  We have made a number of estimates and assumptions in the preparation of these consolidated financial statements.  We can give no assurance that actual results will not differ from those estimates.  Although we do not believe that there is a reasonable likelihood that there will be a material change in the future estimates, or in the assumptions that we use in calculating the estimates, the uncertain future effects, if any, of disruptions in the supply chain caused by geo-political risks, future increases in interest rates, inflation, macroeconomic uncertainty, and other unforeseen changes in the industry, or business, could materially impact the estimates, and may have a material adverse effect on our business, financial condition and results of operations.  Some of the more significant estimates include allowances for expected credit losses, cash discounts, valuation of inventory, valuation of long-lived assets, goodwill and other intangible assets, depreciation and amortization of long-lived assets, product liability exposures, asbestos, environmental and litigation matters, valuation of deferred tax assets, share based compensation and sales returns and other allowances.

There have been no material changes to our critical accounting policies and estimates from the information provided in Note 1 of the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2023.

Recently Issued Accounting Pronouncements

Standards not yet adopted as of March 31, 2024

Standard	Description	Effective date	Effects on the financial statements or other significant matters
ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures	ASU 2023-07 will improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses on an interim and annual basis. ASU 2023-07 expands segment disclosures by requiring disclosure of (1) significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; (2) the amount and description of the composition of other segment items to reconcile to segment profit and loss; and (3) the CODM’s title and position and how the CODM uses the reported segment measures to allocate resources.  Additionally, ASU 2023-07 requires interim disclosures of all reportable segment profit or loss and assets previously required annually by Topic 280.	The ASU is effective for the fiscal years beginning after December 15, 2023, which for us is December 31, 2024, and all subsequent interim periods, with full retrospective application required to all prior periods presented. Early adoption is permitted.	The new standard will require expanding our segment disclosure to include additional segment level information. We are currently evaluating the full impact of adopting ASU 2023-07 on our consolidated financial statements, disclosures, processes and controls. On an ongoing basis, we will continue to assess the impact of the new standard through our planned date of adoption of December 31, 2024.
ASU 2023-09, Income Taxes (Topic 270): Improvements to Income Tax Disclosures	ASU 2023-09 will improve transparency and decision making usefulness of income tax disclosures. ASU 2023-09 will expand the annual required effective income tax rate reconciliation disclosures to include (1) eight specific categories of rate reconciling items; (2) additional information for reconciling items that meet or exceed a quantitative threshold; and (3) expand the required disclosures to include reconciling percentages as well as reported amounts.  Additionally, the ASU 2023-09 will expand required annual disclosures of income taxes paid to include the disaggregation by federal, state and foreign jurisdictions.	The ASU is effective for annual reporting periods beginning after December 15, 2024, which for us is December 31, 2025, with prospective application. Early adoption and retrospective application are permitted.	The new standard will require expanding our annual income tax disclosures in our financial statements. We are currently evaluating the full impact of adopting ASU 2023-09 on our consolidated financial statements, disclosures, processes and controls. On an ongoing basis, we will continue to assess the impact of the new standard through our planned date of adoption of December 31, 2025.

We have reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a material impact on the Company’s consolidated financial statements.

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Business Acquisitions and Investments

3 Months Ended

Mar. 31, 2024

Business Acquisitions and Investments [Abstract]

Business Acquisitions and Investments

Note 3.  Business Acquisitions and Investments

2023 Increase in Equity Investment

Investment in Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co. Ltd.

In April 2014, we formed Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. (“Gwo Yng”), a 50/50 joint venture with Gwo Yng Enterprise Co., Ltd., a China-based manufacturer of air conditioner accumulators, filter driers, hose assemblies and switches.  We acquired our 50% interest in the joint venture for approximately $14 million.  In March 2018, we acquired an additional 15% equity interest in the joint venture for Chinese yuan renminbi 26,475,583 (approximately $4.2 million), thereby increasing our equity interest in the joint venture to 65%.  While we increased our equity interest in the joint venture to 65%, the minority shareholder maintained substantive participating rights that allowed it to participate in certain significant financial and operating decisions that occur in the ordinary course of business.  As a result, we continued to account for our investment in the joint venture under the equity method of accounting.

In July 2023, we acquired an additional 15% equity interest in the joint venture for Chinese yuan renminbi 27,378,290 (approximately $4 million), thereby increasing our equity interest in Gwo Yng to 80%.  In connection with the transaction, we amended and restated the charter documents of Gwo Yng to remove all minority shareholder substantive participating rights, giving SMP control of Gwo Yng.  As a result, as of the closing date of the transaction, Gwo Yng was accounted for as a business combination achieved in stages (“a step acquisition”).  Accordingly, commencing on the closing of the transaction, we reported the results of Gwo Yng on a consolidated basis with the minority ownership interest reported as a noncontrolling interest.

The following table summarizes the allocation of the total step acquisition purchase consideration to the identifiable assets acquired and liabilities assumed based on their fair values (in thousands):

Total purchase consideration (a)				$	21,725
Assets acquired and liabilities assumed:
Cash and cash equivalents	$	6,779
Receivables		5,912
Inventory		5,945
Other current assets		528
Property, plant and equipment, net		2,924
Operating lease right-of-use assets		4,372
Intangible assets (b)		532
Goodwill		2,208
Long term investments and other assets		7,257
Current liabilities		(6,004	)
Noncurrent operating lease liabilities		(3,455	)
Subtotal					26,998
Fair value of acquired noncontrolling interest					(5,273	)
Total purchase consideration allocated to net assets acquired				$	21,725

(a) Total purchase consideration is the sum of the fair value of the previously held equity investment interest in Gwo Yng of $17.7 million and the cash paid of $4 million for the acquisition of the additional 15% equity ownership interest.

(b) Intangible assets consists of customer relationships of $0.4 million and capitalized software of $0.1 million.

Intangible assets of $0.4 million consisting of customer relationships is amortized on a straight-line basis over the estimated useful life of 10 years.  Goodwill of $2.2 million was allocated to the Temperature Control and Engineered Solutions segments in the amounts of $1.2 million and $1 million, respectively.  The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations.

Incremental revenues from Gwo Yng included in our consolidated statement of operations for the three months ended March 31, 2024 were not material.

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Restructuring and Integration Expenses

3 Months Ended

Mar. 31, 2024

Restructuring and Integration Expenses [Abstract]

Restructuring and Integration Expenses

Note 4.   Restructuring and Integration Expenses

The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of March 31, 2024 and December 31, 2023 and for the three months ended March 31, 2024, consisted of the following (in thousands):

	Workforce Reduction			Other Exit Costs			Total
Exit activity liability at December 31, 2023	$	1,729		$	—		$	1,729
Restructuring and integration costs:
Amounts provided for during 2024 (a)		17			175			192
Cash payments		(415	)		(175	)		(590	)
Foreign currency exchange rate changes		(18	)		—			(18	)
Exit activity liability at March 31, 2024	$	1,313		$	—		$	1,313

(a) Restructuring and integration expenses incurred during the three months ended March 31, 2024 consist of $101,000 in our Vehicle Control segment, $58,000 in our Temperature Control segment and $33,000 in our Engineered Solutions segment.

Restructuring Costs

Cost Reduction Initiative

During the fourth quarter of 2022, to further our ongoing efforts to improve operating efficiencies and reduce costs, we announced plans for a reduction in our sales force, and initiated plans to relocate certain product lines from our Independence, Kansas manufacturing facility and from our St. Thomas, Canada manufacturing facility to our manufacturing facilities in Reynosa, Mexico.

Restructuring expenses related to the Cost Reduction Initiative of $192,000 were incurred during the three months ended March 31, 2024 consisting of (1) expenses of $17,000 of employee severance related to our product line relocations, and (2) expenses of  $175,000 related to the relocation of machinery and equipment to our manufacturing facilities in Reynosa, Mexico.  Cash payments made of $590,000 during the three months ended March 31, 2024 consisted primarily of severance payments related to the sales force reduction. We anticipate that the Cost Reduction Initiative will be substantially completed by the end of the second quarter of 2024. Additional restructuring costs related to the initiative are expected to be immaterial.

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Sale of Receivables

3 Months Ended

Mar. 31, 2024

Sale of Receivables [Abstract]

Sale of Receivables

Note 5.   Sale of Receivables

We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions.  We sell our undivided interests in certain of these receivables at our discretion when we determine that the cost of these arrangements is less than the cost of servicing our receivables with existing debt.  Under the terms of the agreements, we retain no rights or interest, have no obligations with respect to the sold receivables, and do not service the receivables after the sale.  As such, these transactions are accounted for as a sale.

Pursuant to these agreements, we sold $170.8 million and $170.9 million of receivables during the three months ended March 31, 2024 and 2023, respectively. Receivables presented at financial institutions and not yet collected as of March 31, 2024 and December 31, 2023 were approximately $10.9 million and $4.5 million, respectively, and remained in our accounts receivable balance as of that date. All receivables sold were reflected as a reduction of accounts receivable in the consolidated balance sheet at the time of sale. A charge in the amount of $10 million and $9 million related to the sale of receivables is included in selling, general and administrative expense in our consolidated statements of operations for the three months ended March 31, 2024 and 2023, respectively.

To the extent that these arrangements are terminated, our financial condition, results of operations, cash flows and liquidity could be adversely affected by extended payment terms, or delays or failures in collecting trade accounts receivable. The utility of the supply chain financing arrangements also depends upon a benchmark reference rate for the purpose of determining the discount rate applicable to each arrangement. If the benchmark reference rate increases significantly, we may be negatively impacted as we may not be able to pass these added costs on to our customers, which could have a material and adverse effect upon our financial condition, results of operations and cash flows.

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Inventories

3 Months Ended

Mar. 31, 2024

Inventories [Abstract]

Inventories

Note 6.   Inventories

Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) and net realizable value, consist of the following:

	March 31, 2024		December 31, 2023
	(In thousands)
Finished goods	$	314,809	$	302,557
Work in process		17,344		18,503
Raw materials		188,549		186,015
Subtotal		520,702		507,075
Unreturned customer inventories		18,007		18,240
Total inventories	$	538,709	$	525,315

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Acquired Intangible Assets

3 Months Ended

Mar. 31, 2024

Acquired Intangible Assets [Abstract]

Acquired Intangible Assets

Note 7.   Acquired Intangible Assets

Acquired identifiable intangible assets consist of the following:

	March 31, 2024			December 31, 2023
	(In thousands)
Customer relationships	$	159,843		$	159,641
Patents, developed technology and intellectual property		14,123			14,123
Trademarks and trade names		8,880			8,880
Non-compete agreements		3,308			3,295
Supply agreements		800			800
Leaseholds		160			160
Total acquired intangible assets		187,114			186,899
Less: Accumulated amortization (a)		(98,163	)		(95,681	)
Net acquired intangible assets	$	88,951		$	91,218

(a) Applies to all intangible assets, except for trademarks and trade names totaling $2.6 million, which has an indefinite useful life and, as such, is not being amortized.

Total amortization expense for acquired intangible assets was $2.1 million and $2.2 million for the three months ended March 31, 2024 and 2023, respectively. Based on the current estimated useful lives assigned to our intangible assets, amortization expense is estimated to be $6.4 million for the remainder of 2024, $8.5 million in 2025, $8.5 million in 2026, $8.5 million in 2027 and $54.5 million in the aggregate for the years 2028 through 2041.

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Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Note 8.  Leases

We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to ten years, some of which may include one or more five-year renewal options. We have not included any of the renewal options in our operating lease payments as we concluded that it is not reasonably certain that we will exercise any of these renewal options. Leases with an initial term of twelve months or less are not recorded on the balance sheet.  Operating lease expense is recognized on a straight-line basis over the lease term.  Finance leases are not material.

The following tables provide quantitative disclosures related to our operating leases and includes all operating leases acquired from the date of acquisition (in thousands):

Balance Sheet Information	March 31, 2024		December 31, 2023
Assets
Operating lease right-of-use assets	$	102,060	$	100,065
Liabilities
Sundry payables and accrued expenses	$	17,973	$	17,139
Noncurrent operating lease liabilities		90,667		88,974
Total operating lease liabilities	$	108,640	$	106,113
Weighted Average Remaining Lease Term
Operating leases	8.3 Years		8.3 Years
Weighted Average Discount Rate
Operating leases		4.9%		4.8%
	Three Months Ended
Expense and Cash Flow Information	March 31,
Lease Expense	2024		2023
Operating lease expense (a)	$	4,820	$	3,109
Supplemental Cash Flow Information
Cash paid for the amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,131	$	2,834
Right-of-use assets obtained in exchange for new operating lease obligations (b)	$	5,628	$	29,092

(a) Excludes expenses of approximately $0.8 million for each of the three months ended March 31, 2024 and 2023, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material.

(b) Includes $4.7 million of right-of-use assets related to the lease modification and extension for our manufacturing facility in Bialystok, Poland during the three months ended March 31, 2024, and $27.8 million of right-of-use assets related to the lease modification and extension for our distribution center and office in Lewisville, Texas during the three months ended March 31, 2023.

Minimum Lease Payments

At March 31, 2024, we are obligated to make minimum lease payments through 2034, under operating leases, which are as follows (in thousands):

2024	$	13,904
2025		16,624
2026		15,190
2027		14,245
2028		12,616
Thereafter		62,092
Total lease payments	$	134,671
Less: Interest		(26,031	)
Present value of lease liabilities	$	108,640

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Credit Facilities and Long-Term Debt

3 Months Ended

Mar. 31, 2024

Credit Facilities and Long-Term Debt [Abstract]

Credit Facilities and Long-Term Debt

Note 9.   Credit Facilities and Long-Term Debt

Total debt outstanding is summarized as follows:

	March 31, 2024		December 31, 2023
	(In thousands)
Credit facility – term loan due 2027	$	91,250	$	92,500
Credit facility – revolver due 2027		123,450		63,500
Other		202		211
Total debt	$	214,902	$	156,211
Current maturities of debt	$	5,030	$	5,029
Long-term debt		209,872		151,182
Total debt	$	214,902	$	156,211

Term Loan and Revolving Credit Facility

In June 2022, the Company entered into a new Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders (the “Credit Agreement”).  The Credit Agreement provides for a $500 million credit facility comprised of a $100 million term loan facility (the “term loan”) and a $400 million multi-currency revolving credit facility available in U.S. dollars, euros, British pound sterling, Swiss francs, Canadian dollars and other currencies as agreed to by the administrative agent and the lenders (the “revolving facility”). The Credit Agreement replaces and refinances the 2015 Credit Agreement.

Borrowings under the Credit Agreement were used to repay all outstanding borrowings under the 2015 Credit Agreement, and pay certain fees and expenses incurred in connection with the Credit Agreement, with future borrowings used for other general corporate purposes of the Company and its subsidiaries.  The term loan amortizes in quarterly installments of 1.25% in each of the first four years, and quarterly installments of 2.5% in the fifth year of the Credit Agreement.  The revolving facility has a $25 million sub-limit for the issuance of letters of credit and a $25 million sub-limit for the borrowing of swingline loans.  The maturity date is June 1, 2027.  The Company may request up to two one-year extensions of the maturity date.

The Company may, upon the agreement of one or more then existing lenders or of additional financial institutions not currently party to the Credit Agreement, increase the revolving facility commitments or obtain incremental term loans by an aggregate amount not to exceed (x) the greater of (i) $168 million or (ii) 100% of consolidated EBITDA (as defined in the Credit Agreement) for the four fiscal quarters ended most recently before such date, plus (y) the amount of any voluntary prepayment of term loans, plus (z) an unlimited amount so long as, immediately after giving effect thereto, the pro forma First Lien Net Leverage Ratio (as defined in the Credit Agreement) does not exceed 2.5 to 1.0.

Term loan and revolver facility borrowings in U.S. dollars bear interest, at the Company’s election, at a rate per annum equal to Term SOFR plus 0.10% plus an applicable margin, or an alternate base rate plus an applicable margin, where the alternate base rate is the greater of the prime rate, the federal funds effective rate plus 0.50%, and one-month Term SOFR plus 0.10% plus 1.00%. Term loan borrowings are being made at one-month Term SOFR. The applicable margin for the term benchmark borrowings ranges from 1.0% to 2.0%, and the applicable margin for alternate base rate borrowings ranges from 0% to 1.0%, in each case, based on the total net leverage ratio of the Company and its restricted subsidiaries.  The Company may select interest periods of one, three or six months for Term SOFR borrowings.  Interest is payable at the end of the selected interest period, but no less frequently than quarterly.

The Company’s obligations under the Credit Agreement are guaranteed by its material domestic subsidiaries (each, a “Guarantor”), and secured by a first priority perfected security interest in substantially all of the existing and future personal property of the Company and each Guarantor, subject to certain exceptions.  The collateral security described above also secures certain banking services obligations and interest rate swaps and currency or other hedging obligations of the Company owing to any of the then existing lenders or any affiliates thereof.  Concurrently with the Company’s entry into the Credit Agreement, the Company also entered into a seven year interest rate swap agreement with Wells Fargo Bank, N.A., Co-Syndication Agent and lender under the Credit Agreement, on $100 million of borrowings under the Credit Agreement. The interest rate swap agreement matures in May 2029.

Outstanding borrowings at March 31, 2024 under the Credit Agreement were $214.7 million, consisting of current borrowings of $5 million and long-term debt of $209.7 million; while outstanding borrowings at December 31, 2023 were $156 million, consisting of current borrowings of $5 million and long-term debt of $151 million.  Letters of credit outstanding under the Credit Agreement were $2.3 million at both March 31, 2024 and December 31, 2023.

At March 31, 2024, the weighted average interest rate under our Credit Agreement was 5.5%, which consisted of $211 million in borrowings under Term SOFR, adjusted for the impact of the interest rate swap agreement on $100 million of borrowings, and an alternative base rate borrowing of $3.7 million at 8.8%.  At December 31, 2023, the weighted average interest rate under our Credit Agreement was 5%, which consisted of $156 million in borrowings at 5% under Term SOFR, adjusted for the impact of the interest rate swap agreement on $100 million of borrowings.  During the three months ended March 31, 2024, our average daily alternative base rate loan balance was $1.7 million, compared to a balance of $0.3 million for the three months ended March 31, 2023 and a balance of $0.1 million for the year ended December 31, 2023.

The Credit Agreement contains customary covenants limiting, among other things, the incurrence of additional indebtedness, the creation of liens, mergers, consolidations, liquidations and dissolutions, sales of assets, dividends and other payments in respect of equity interests, acquisitions, investments, loans and guarantees, subject, in each case, to customary exceptions, thresholds and baskets.  The Credit Agreement also contains customary events of default.

Polish Overdraft Facility

In November 2023, our Polish subsidiary, SMP Poland sp. z.o.o., further amended its overdraft facility with HSBC Continental Europe (Spolka Akcyjna) Oddzial w Polsce. The overdraft facility, as amended, provides for borrowings under the facility in euros and U.S. dollars. Under the amended terms, the overdraft facility provides for borrowings of up to Polish zloty 30 million (approximately $7.5 million) if borrowings are solely in Polish zloty, or up to 85% of the Polish zloty 30 million limit (approximately $6.4 million) if borrowings are in euros and/or U.S. dollars. The overdraft facility had an original maturity date in March 2024, with automatic three-month renewals until June 2027, subject to cancellation by either party, at its sole discretion, at least 30 days prior to the commencement of the three-month renewal period. The facility automatically renewed in March 2024 to a June 2024 maturity date. Borrowings under the amended overdraft facility will bear interest at a rate equal to (1) the one month Warsaw Interbank Offered Rate (“WIBOR”) + 1.0% for borrowings in Polish zloty, (2) the one month Euro Interbank Offered Rate (“EURIBOR”) + 1.0% for borrowings in euros, and (3) the Mid-Point of the Fed Target Range + 1.25% for borrowings in U.S. dollars.  Borrowings under the overdraft facility are guaranteed by Standard Motor Products, Inc., the ultimate parent company.  There were no borrowings outstanding under the overdraft facility at both March 31, 2024 and December 31, 2023.

Maturities of Debt

As of March 31, 2024, maturities of debt through 2027, assuming no prepayments, are as follows (in thousands):

	Revolving Credit Facility		Term Loan Facility			Polish Overdraft Facility and Other Debt			Total
Remainder of 2024	$	—	$	3,750		$	22		$	3,772
2025		—		5,000			31			5,031
2026		—		7,500			48			7,548
2027		123,450		75,000			101			198,551
Total	$	123,450	$	91,250		$	202		$	214,902
Less: Current maturities		—		(5,000	)		(30	)		(5,030	)
Long-term debt	$	123,450	$	86,250		$	172		$	209,872

Deferred Financing Costs

We have deferred financing costs of approximately $1.5 million and $1.6 million as of March 31, 2024 and December 31, 2023, respectively.  Deferred financing costs are related to our term loan and revolving credit facilities. Deferred financing costs as of March 31, 2024, assuming no prepayments, are being amortized in the amounts of $0.4 million for the remainder of 2024, $0.5 million in 2025, $0.5 million in 2026 and $0.1 million in 2027.

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Accumulated Other Comprehensive Income Attributable to SMP

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Income Attributable to SMP [Abstract]

Accumulated Other Comprehensive Income Attributable to SMP

Note 10.  Accumulated Other Comprehensive Income Attributable to SMP

Changes in Accumulated Other Comprehensive Income by Component (in thousands)

	Three Months Ended March 31, 2024
	Foreign Currency Translation			Unrealized derivative gains (losses)			Unrecognized Postretirement Benefit Costs (Credit)			Total
Balance at December 31, 2023	$	(8,897	)	$	2,899		$	24		$	(5,974	)
Other comprehensive income (loss) before reclassifications		(1,220	)		1,888	(a)		–			668
Amounts reclassified from accumulated other comprehensive income		—			(497	)		(3	)		(500	)
Other comprehensive income (loss), net		(1,220	)		1,391			(3	)		168
Balance at March 31, 2024	$	(10,117	)	$	4,290		$	21		$	(5,806	)

(a) Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $1.9 million ($1.4 million, net of tax), plus cash settlement receipts of $0.7 million ($0.5 million, net of tax) in the three months ended March 31, 2024.

Reclassifications Out of Accumulated Other Comprehensive Income (in thousands)

	Three Months Ended
	March 31, 2024
Derivative cash flow hedge:
Unrecognized (gain) loss (a)	$	(671	)
Postretirement benefit plans:
Unrecognized (gain) loss (b)		(5	)
Total before income tax		(676	)
Income tax (expense) benefit		(176	)
Total reclassifications	$	(500	)

(a) Unrecognized accumulated other comprehensive income (loss) related to the cash flow interest rate hedge is reclassified to earnings and reported as part of interest expense in our consolidated statements of operations when the interest payments on the underlying borrowings are recognized.

(b) Unrecognized accumulated other comprehensive income (loss) related to our post retirement plans is reclassified to earnings and included in the computation of net periodic postretirement benefit costs, which are included in other non-operating income (expense), net in our consolidated statements of operations (see Note 12, “Employee Benefits,” for additional information).

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Stock-Based Compensation Plans

3 Months Ended

Mar. 31, 2024

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

Note 11.  Stock-Based Compensation Plans

We account for our stock-based compensation plans in accordance with the provisions of FASB ASC 718, Stock Compensation, which requires that a company measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award.  The cost is recognized in the consolidated statement of operations over the period during which an employee is required to provide service in exchange for the award.

Restricted and Performance Stock Grants

We are authorized to issue, among other things, shares of restricted and performance-based stock to eligible employees and restricted stock to directors of up to 2,050,000 shares under the Amended and Restated 2016 Omnibus Incentive Plan (“Plan”).  Shares issued under the Plan that are cancelled, forfeited or expire by their terms are eligible to be granted again under the Plan.

As part of the Plan, we currently grant shares of restricted stock to eligible employees and our independent directors and performance-based shares to eligible employees.  We grant eligible employees two types of restricted stock (standard restricted shares and long-term retention restricted shares).  Standard restricted shares granted to employees become fully vested no earlier than three years after the date of grant.  Long-term retention restricted shares granted to selected executives vest at a 25% rate on or within approximately two months of an executive reaching the ages 60 and 63, and become fully vested on or within approximately two months of an executive reaching the age 65.  Restricted shares granted to directors become fully vested upon the first anniversary of the date of grant.

Performance-based shares issued to eligible employees are subject to a three-year measuring period and the achievement of performance targets and, depending upon the achievement of such performance targets, they may become vested no earlier than three years after the date of grant.  Each period we evaluate the probability of achieving the applicable targets, and we adjust our accrual accordingly. Restricted shares (other than long-term retention restricted shares) and performance shares issued to certain key executives and directors are subject to a one or two year holding period upon the lapse of the vesting period.  Forfeitures on stock grants are estimated at 5% for employees and 0% for executives and directors based on our evaluation of historical and expected future turnover.

Our restricted and performance-based share activity was as follows for the three months ended March 31, 2024:

	Shares			Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2023		880,976		$	29.48
Granted		—			—
Vested		(7,928	)		27.70
Forfeited		(7,150	)		32.47
Balance at March 31, 2024		865,898		$	29.47

We recorded compensation expense related to restricted shares and performance-based shares of $1.3 million ($1 million, net of tax) and $1.5 million ($1.1 million, net of tax) for the three months ended March 31, 2024 and 2023, respectively. The unamortized compensation expense related to our restricted and performance-based shares was $11.4 million at March 31, 2024, and is expected to be recognized as they vest over a weighted average period of 3.94 years and 0.08 years for employees and directors, respectively.

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Employee Benefits

3 Months Ended

Mar. 31, 2024

Employee Benefits [Abstract]

Employee Benefits

Note 12.  Employee Benefits

We provide certain medical and dental care benefits to 13 former U.S. union employees.  The postretirement medical and dental benefit obligation to the former union employees as of March 31, 2024, and the related net periodic benefit cost for the plan for the three months ended March 31, 2024 and 2023 were not material.

We maintain a defined contribution Supplemental Executive Retirement Plan for key employees.  Under the plan, these employees may elect to defer a portion of their compensation and, in addition, we may at our discretion make contributions to the plan on behalf of the employees.  In March 2024, we made company contributions to the plan of $0.5 million related to calendar year 2023.

We also have an Employee Stock Ownership Plan and Trust for employees who are not covered by a collective bargaining agreement.  In connection therewith, we maintain an employee benefits trust to which we contribute shares of treasury stock.  We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under the plan. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released.  The trustees will vote the shares in accordance with their fiduciary duties.  During the three months ended March 31, 2024, we contributed to the trust an additional 68,700 shares from our treasury and released 68,700 shares from the trust leaving 200 shares remaining in the trust as of March 31, 2024.

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2024

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

Note 13.  Derivative Financial Instruments

Interest Rate Swap Agreements

We occasionally use derivative financial instruments to reduce our market risk for changes in interest rates on our variable rate borrowings. The principal financial instruments used for cash flow hedging purposes are interest rate swap agreements. The interest rate swaps effectively convert a portion of our variable rate borrowings under our existing facilities to a fixed rate based upon determined notional amount. We do not enter into interest rate swap agreements, or other financial instruments, for trading or speculative purposes.

In June 2022, we entered into a seven year interest rate swap agreement with a notional amount of $100 million that is to mature in May 2029.  The interest rate swap agreement has been designated as a cash flow hedge of interest payments on $100 million of borrowings under our Credit Agreement. Under the terms of the swap agreement, we will receive monthly variable interest payments based on one month Term SOFR and will pay interest based upon a fixed rate of 2.683% per annum, adjusted upward for the credit spread adjustment in the Credit Agreement of 0.10% and the loan margin in the Credit Agreement of 1.25% at March 31, 2024.

The fair value of the interest rate swap agreement as of March 31, 2024 and December 31, 2023 was an asset of $5.8 million and $3.9 million, respectively, which has been deferred and recorded in accumulated other comprehensive income, net of income taxes, in our consolidated balance sheet. When the interest expense on the underlying borrowing is recognized, the deferred gain/loss in accumulated other comprehensive income is recorded in earnings as interest expense in the consolidated statements of operations. We perform quarterly hedge effectiveness assessments and anticipate that the interest rate swap will be highly effective throughout its term.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 14.  Fair Value Measurements

We follow a three-level fair value hierarchy that prioritizes the inputs to measure fair value.  This hierarchy requires entities to maximize the use of “observable inputs” and minimize the use of “unobservable inputs.”  The three levels of inputs used to measure fair value are as follows:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect assumptions that market participants would use in pricing an asset or liability.

The following is a summary of the estimated fair values, carrying amounts, and classification under the fair value hierarchy of our financial instruments at March 31, 2024 and December 31, 2023 (in thousands):

		March 31, 2024				December 31, 2023
	Fair Value Hierarchy	Fair Value		Carrying Amount		Fair Value		Carrying Amount
Cash and cash equivalents (a)	LEVEL1/2	$	27,113	$	27,113	$	32,526	$	32,526
Deferred compensation	LEVEL 1		25,674		25,674		23,893		23,893
Short term borrowings	LEVEL 2		5,030		5,030		5,029		5,029
Long-term debt	LEVEL 2		209,872		209,872		151,182		151,182
Cash flow interest rate swap	LEVEL 2		5,820		5,820		3,939		3,939
Long-term investments	LEVEL 2		7,522		7,522		7,468		7,468

(a) As of March 31, 2024 cash and cash equivalents consist of cash of $24.1 million and cash equivalents of $3 million, which are classified as Level 1 and Level 2, respectively, under the fair value hierarchy.  As of December 31, 2023 cash and cash equivalents consist of cash of $29.5 million and cash equivalents of $3 million, which are classified as Level 1 and Level 2, respectively, under the fair value hierarchy.

Cash equivalents consist of certificates of deposit with original maturities of three months, or less. These securities are accounted for as held-to-maturity and recorded at amortized cost, which approximates their fair values at March 31, 2024.  The fair value of the underlying assets held by the deferred compensation plan are based on the quoted market prices of the underlying funds which are held by registered investment companies. The carrying value of our variable rate short-term borrowings and long-term debt under our credit facilities approximates fair value as the variable interest rates in the facilities reflect current market rates. The fair value of our cash flow interest rate swap agreement is obtained from an independent third party, is based upon market quotes, and represents the net amount required to terminate the interest rate swap, taking into consideration market rates and counterparty credit risk.  Long-term investments consist of certificates of deposit with original maturities in excess of twelve months. These securities are accounted for as held-to-maturity and recorded at amortized cost, which approximates their fair values at March 31, 2024.

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Earnings Per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Earnings Per Share

Note 15. Earnings Per Share

The following are reconciliations of the net earnings attributable to SMP and the shares used in calculating basic and dilutive net earnings per common share (in thousands, except per share data):

	Three Months Ended March 31,
	2024			2023
Net Earnings Attributable to SMP -
Earnings from continuing operations	$	9,863		$	12,698
Loss from discontinued operations		(1,039	)		(780	)
Net earnings attributable to SMP	$	8,824		$	11,918
Basic Net Earnings Per Common Share Attributable to SMP -
Earnings from continuing operations per common share	$	0.45		$	0.59
Loss from discontinued operations per common share		(0.05	)		(0.04	)
Net earnings per common share attributable to SMP	$	0.40		$	0.55
Weighted average common shares outstanding		21,924			21,610
Diluted Net Earnings Per Common Share Attributable to SMP -
Earnings from continuing operations per common share	$	0.44		$	0.57
Loss from discontinued operations per common share		(0.05	)		(0.03	)
Net earnings per common share attributable to SMP	$	0.39		$	0.54
Weighted average common shares outstanding		21,924			21,610
Plus incremental shares from assumed conversions:
Dilutive effect of restricted stock and performance-based stock		449			488
Weighted average common shares outstanding – Diluted		22,373			22,098

The shares listed below were not included in the computation of diluted net earnings per common share attributable to SMP because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands):

	Three Months Ended March 31,
	2024		2023
Restricted and performance-based shares		281		298

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Industry Segments

3 Months Ended

Mar. 31, 2024

Industry Segments [Abstract]

Industry Segments

Note 16. Industry Segments

Our business is organized into three operating segments, Vehicle Control, Temperature Control and Engineered Solutions, each of which focuses on a specific line of business. Our automotive aftermarket business is comprised of two operating segments, Vehicle Control and Temperature Control, while our Engineered Solutions operating segment offers a broad array of conventional and future-oriented technologies.

The following tables show our net sales and operating income for each reportable operating segment (in thousands):

	Three Months Ended March 31,
	2024			2023
Net Sales (a)
Vehicle Control	$	185,524		$	184,577
Temperature Control		71,608			72,406
Engineered Solutions		74,271			71,045
Other		—			—
Consolidated	$	331,403		$	328,028
Operating Income (Loss)
Vehicle Control	$	15,540		$	17,375
Temperature Control		2,031			2,084
Engineered Solutions		2,232			5,647
Other		(5,184	)		(4,360	)
Consolidated	$	14,619		$	20,746

(a) There are no intersegment sales among our Vehicle Control, Temperature Control and Engineered Solutions operating segments.

For the disaggregation of our net sales from contracts with customers by major product group and geographic area within each of our operating segments, see Note 17, “Net Sales.”

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Net Sales

3 Months Ended

Mar. 31, 2024

Net Sales [Abstract]

Net Sales

Note 17. Net Sales

Disaggregation of Net Sales

We disaggregate our net sales from contracts with customers by major product group and geographic area within each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our net sales are affected by economic factors.

Major Product Group

The Vehicle Control operating segment generates its revenues from core aftermarket sales of ignition, emissions, and fuel delivery, electrical and safety, and wire sets and other product categories.  The Temperature Control operating segment generates its revenue from aftermarket sales of air conditioning system components and other thermal products.  The Engineered Solutions operating segment generates revenues from custom-engineered products to vehicle and equipment manufacturers in highly diversified global end-markets such as commercial and light vehicles, construction, agriculture, power sports and marine.

The following table summarizes consolidated net sales by major product group within each operating segment for the three months ended March 31, 2024 and 2023 (in thousands):

Three Months Ended March 31,
	2024		2023
Vehicle Control
Engine Management (Ignition, Emissions and Fuel Delivery)	$	116,085	$	116,083
Electrical and Safety		52,407		51,804
Wire Sets and Other		17,032		16,690
Total Vehicle Control		185,524		184,577
Temperature Control
AC System Components		49,960		50,798
Other Thermal Components		21,648		21,608
Total Temperature Control		71,608		72,406
Engineered Solutions
Commercial Vehicle		22,908		20,232
Construction/Agriculture		10,076		11,692
Light Vehicle		21,803		23,019
All Other		19,484		16,102
Total Engineered Solutions		74,271		71,045
Other		—		—
Total	$	331,403	$	328,028

Geographic Area

We sell our line of products primarily in the United States, with additional sales in Canada, Mexico, Europe, Asia and Latin America.  Sales are attributed to countries based upon the location of the customer.  Our sales are substantially denominated in U.S. dollars.

The following tables provide disaggregation of net sales information by geographic area within each operating segment for the three months ended March 31, 2024 and 2023 (in thousands):

Three months ended March 31, 2024	Vehicle Control		Temperature Control		Engineered Solutions		Other		Total
Geographic Area:
United States	$	164,821	$	64,665	$	40,454	$	—	$	269,940
Canada		9,158		6,632		8,182		—		23,972
Europe		283		16		14,206		—		14,505
Mexico		10,020		5		2,207		—		12,232
Asia		101		141		8,561		—		8,803
Other foreign		1,141		149		661		—		1,951
Total	$	185,524	$	71,608	$	74,271	$	—	$	331,403

Three months ended March 31, 2023	Vehicle Control		Temperature Control		Engineered Solutions		Other		Total
Geographic Area:
United States	$	166,412	$	69,571	$	44,206	$	—	$	280,189
Canada		8,330		2,755		5,238		—		16,323
Europe		198		—		15,084		—		15,282
Mexico		8,587		—		1,768		—		10,355
Asia		62		20		4,054		—		4,136
Other foreign		988		60		695		—		1,743
Total	$	184,577	$	72,406	$	71,045	$	—	$	328,028

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 18. Commitments and Contingencies

Asbestos

In 1986, we acquired a brake business, which we subsequently sold in March 1998 and which is accounted for as a discontinued operation in the accompanying statement of operations.  When we originally acquired this brake business, we assumed future liabilities relating to any alleged exposure to asbestos-containing products manufactured by the seller of the acquired brake business. In accordance with the related purchase agreement, we agreed to assume the liabilities for all new claims filed on or after September 2001. Our ultimate exposure will depend upon the number of claims filed against us on or after September 2001, and the amounts paid for settlements, awards of asbestos-related damages, and defense of such claims.  At March 31, 2024, approximately 1,460 cases were outstanding for which we may be responsible for any related liabilities.  Since inception in September 2001 through March 31, 2024, the amounts paid for settled claims and awards of asbestos-related damages, including interest, were approximately $77.7 million.  We do not have insurance coverage for the indemnity and defense costs associated with the claims we face.

In evaluating our potential asbestos-related liability, we have considered various factors including, among other things, an actuarial study of the asbestos related liabilities performed by an independent actuarial firm, our settlement amounts and whether there are any co-defendants, the jurisdiction in which lawsuits are filed, and the status and results of such claims.  As is our accounting policy, we consider the advice of actuarial consultants with experience in assessing asbestos-related liabilities to estimate our potential claim liability; and perform an actuarial evaluation in the third quarter of each year and whenever events or changes in circumstances indicate that additional provisions may be necessary.  The methodology used to project asbestos-related liabilities and costs in our actuarial study considered: (1) historical data available from publicly available studies; (2) an analysis of our recent claims history to estimate likely filing rates into the future; (3) an analysis of our currently pending claims; (4) an analysis of our settlements and awards of asbestos-related damages to date; and (5) an analysis of closed claims with pay ratios and lag patterns in order to develop average future settlement values.  Based on the information contained in the actuarial study and all other available information considered by us, we have concluded that no amount within the range of settlement payments and awards of asbestos-related damages was more likely than any other and, therefore, in assessing our asbestos liability we compare the low end of the range to our recorded liability to determine if an adjustment is required.

In accordance with our policy to perform an annual actuarial evaluation in the third quarter of each year, an actuarial study was performed as of August 31, 2023.  The results of the August 31, 2023 study included an estimate of our undiscounted liability for settlement payments and awards of asbestos-related damages, excluding legal costs, ranging from $84 million to $135.3 million for the period through 2065.  The change from the prior year study, which was as of August 31, 2022, was a $15.2 million increase for the low end of the range and a $23.7 million increase for the high end of the range.  The increase in the estimated undiscounted liability from the prior year study at both the low end and high end of the range reflects our actual experience, our historical data and certain assumptions with respect to events that may occur in the future.

Based upon the results of the August 31, 2023 actuarial study, in September 2023 we increased our asbestos liability to $84 million, the low end of the range, and recorded an incremental pre-tax provision of $23.8 million in earnings (loss) from discontinued operations in the accompanying statement of operations.  Future legal costs, which are expensed as incurred and reported in earnings (loss) from discontinued operations in the accompanying statement of operations, are estimated, according to the August 31, 2023 study, to range from $53.1 million to $105.2 million for the period through 2065.  Total operating cash outflows related to discontinued operations, which include settlements, awards of asbestos-related damages and legal costs, net of taxes, were $3 million and $2.6 million for the three months ended March 31, 2024 and 2023, respectively.

We plan to perform an annual actuarial evaluation during the third quarter of each year for the foreseeable future and whenever events or changes in circumstances indicate that additional provisions may be necessary. Given the uncertainties associated with projecting such matters into the future and other factors outside our control, we can give no assurance that additional provisions will not be required. We will continue to monitor events and changes in circumstances surrounding these potential liabilities in determining whether to perform additional actuarial evaluations and whether additional provisions may be necessary.  At the present time, however, we do not believe that any additional provisions would be reasonably likely to have a material adverse effect on our liquidity or consolidated financial position.

Other Litigation

We are currently involved in various other legal claims and legal proceedings (some of which may involve substantial amounts), including claims related to commercial disputes, product liability, employment, and environmental.  Although these legal claims and legal proceedings are subject to inherent uncertainties, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the ultimate outcome of these matters will not, either individually or in the aggregate, have a material adverse effect on our business, financial condition or results of operations.  We may at any time determine that settling any of these matters is in our best interests, which settlement may include substantial payments.  Although we cannot currently predict the specific amount of any liability that may ultimately arise with respect to any of these matters, we will record provisions when the liability is considered probable and reasonably estimable.  Significant judgment is required in both the determination of probability and the determination as to whether an exposure can be reasonably estimated.  As additional information becomes available, we reassess our potential liability related to these matters. Such revisions of the potential liabilities could have a material adverse effect on our business, financial condition or results of operations.

Warranties

We generally warrant our products against certain manufacturing and other defects. These product warranties are provided for specific periods of time of the product depending on the nature of the product.  As of March 31, 2024 and 2023, we have accrued $23.1 million and $20.6 million, respectively, for estimated product warranty claims included in accrued customer returns. The accrued product warranty costs are based primarily on historical experience of actual warranty claims.

The following table provides the changes in our product warranties (in thousands):

	Three Months Ended March 31,
	2024			2023
Balance, beginning of period	$	21,134		$	19,667
Liabilities accrued for current year sales		28,677			25,793
Settlements of warranty claims		(26,719	)		(24,860	)
Balance, end of period	$	23,092		$	20,600

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2024

Basis of Presentation [Abstract]

Principles of Consolidation

Standard Motor Products, Inc. and its subsidiaries (referred to hereinafter in these notes to the consolidated financial statements as “we,” “us,” “our,” “SMP,” or the “Company”) is a leading manufacturer and distributor of premium replacement parts in the automotive aftermarket, and a custom-engineered solutions provider to vehicle and equipment manufacturers in diverse non-aftermarket end markets.  Our automotive aftermarket is comprised of two segments, Vehicle Control and Temperature Control, while our Engineered Solutions segment offers a broad array of conventional and future-oriented technologies in markets for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics and lawn and garden.  We sell our products primarily to retailers, warehouse distributors, original equipment manufacturers and original equipment service part operations in the United States, Canada, Europe, Asia, Mexico and other Latin American countries.

The accompanying unaudited financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.  The unaudited consolidated financial statements include our accounts and all domestic and international companies in which we have more than a 50% equity ownership, except in instances where the minority shareholder maintains substantive participating rights, in which case we follow the equity method of accounting.  In instances where we have more than a 50% equity ownership and the minority shareholder does not maintain substantive participating rights, our consolidated financial statements include the accounts of the company on a consolidated basis with its net income and equity reported at amounts attributable to both our equity position and that of the noncontrolling interest.  Investments in unconsolidated affiliates are accounted for on the equity method, as we do not have a controlling financial interest but have the ability to exercise significant influence.  All significant inter-company items have been eliminated.

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.  The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire year.

Reclassification

Reclassification

Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2024 presentation.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

Summary of Significant Accounting Policies [Abstract]

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Standards not yet adopted as of March 31, 2024

Standard	Description	Effective date	Effects on the financial statements or other significant matters
ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures	ASU 2023-07 will improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses on an interim and annual basis. ASU 2023-07 expands segment disclosures by requiring disclosure of (1) significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; (2) the amount and description of the composition of other segment items to reconcile to segment profit and loss; and (3) the CODM’s title and position and how the CODM uses the reported segment measures to allocate resources.  Additionally, ASU 2023-07 requires interim disclosures of all reportable segment profit or loss and assets previously required annually by Topic 280.	The ASU is effective for the fiscal years beginning after December 15, 2023, which for us is December 31, 2024, and all subsequent interim periods, with full retrospective application required to all prior periods presented. Early adoption is permitted.	The new standard will require expanding our segment disclosure to include additional segment level information. We are currently evaluating the full impact of adopting ASU 2023-07 on our consolidated financial statements, disclosures, processes and controls. On an ongoing basis, we will continue to assess the impact of the new standard through our planned date of adoption of December 31, 2024.
ASU 2023-09, Income Taxes (Topic 270): Improvements to Income Tax Disclosures	ASU 2023-09 will improve transparency and decision making usefulness of income tax disclosures. ASU 2023-09 will expand the annual required effective income tax rate reconciliation disclosures to include (1) eight specific categories of rate reconciling items; (2) additional information for reconciling items that meet or exceed a quantitative threshold; and (3) expand the required disclosures to include reconciling percentages as well as reported amounts.  Additionally, the ASU 2023-09 will expand required annual disclosures of income taxes paid to include the disaggregation by federal, state and foreign jurisdictions.	The ASU is effective for annual reporting periods beginning after December 15, 2024, which for us is December 31, 2025, with prospective application. Early adoption and retrospective application are permitted.	The new standard will require expanding our annual income tax disclosures in our financial statements. We are currently evaluating the full impact of adopting ASU 2023-09 on our consolidated financial statements, disclosures, processes and controls. On an ongoing basis, we will continue to assess the impact of the new standard through our planned date of adoption of December 31, 2025.

We have reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a material impact on the Company’s consolidated financial statements.

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Business Acquisitions and Investments (Tables)

3 Months Ended

Mar. 31, 2024

Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co Ltd [Member]

Business Acquisition [Line Items]

Allocation of Purchase Price, Assets Acquired And Liabilities Assumed

The following table summarizes the allocation of the total step acquisition purchase consideration to the identifiable assets acquired and liabilities assumed based on their fair values (in thousands):

Total purchase consideration (a)				$	21,725
Assets acquired and liabilities assumed:
Cash and cash equivalents	$	6,779
Receivables		5,912
Inventory		5,945
Other current assets		528
Property, plant and equipment, net		2,924
Operating lease right-of-use assets		4,372
Intangible assets (b)		532
Goodwill		2,208
Long term investments and other assets		7,257
Current liabilities		(6,004	)
Noncurrent operating lease liabilities		(3,455	)
Subtotal					26,998
Fair value of acquired noncontrolling interest					(5,273	)
Total purchase consideration allocated to net assets acquired				$	21,725

(a) Total purchase consideration is the sum of the fair value of the previously held equity investment interest in Gwo Yng of $17.7 million and the cash paid of $4 million for the acquisition of the additional 15% equity ownership interest.

(b) Intangible assets consists of customer relationships of $0.4 million and capitalized software of $0.1 million.

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Restructuring and Integration Expenses (Tables)

3 Months Ended

Mar. 31, 2024

Restructuring and Integration Expenses [Abstract]

Restructuring and Integration Expense

The aggregated liabilities included in “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet relating to the restructuring and integration activities as of March 31, 2024 and December 31, 2023 and for the three months ended March 31, 2024, consisted of the following (in thousands):

	Workforce Reduction			Other Exit Costs			Total
Exit activity liability at December 31, 2023	$	1,729		$	—		$	1,729
Restructuring and integration costs:
Amounts provided for during 2024 (a)		17			175			192
Cash payments		(415	)		(175	)		(590	)
Foreign currency exchange rate changes		(18	)		—			(18	)
Exit activity liability at March 31, 2024	$	1,313		$	—		$	1,313

(a) Restructuring and integration expenses incurred during the three months ended March 31, 2024 consist of $101,000 in our Vehicle Control segment, $58,000 in our Temperature Control segment and $33,000 in our Engineered Solutions segment.

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Inventories (Tables)

3 Months Ended

Mar. 31, 2024

Inventories [Abstract]

Inventories

Inventories, which are stated at the lower of cost (determined by means of the first-in, first-out method) and net realizable value, consist of the following:

	March 31, 2024		December 31, 2023
	(In thousands)
Finished goods	$	314,809	$	302,557
Work in process		17,344		18,503
Raw materials		188,549		186,015
Subtotal		520,702		507,075
Unreturned customer inventories		18,007		18,240
Total inventories	$	538,709	$	525,315

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Acquired Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2024

Acquired Intangible Assets [Abstract]

Acquired Identifiable Intangible Assets

Acquired identifiable intangible assets consist of the following:

	March 31, 2024			December 31, 2023
	(In thousands)
Customer relationships	$	159,843		$	159,641
Patents, developed technology and intellectual property		14,123			14,123
Trademarks and trade names		8,880			8,880
Non-compete agreements		3,308			3,295
Supply agreements		800			800
Leaseholds		160			160
Total acquired intangible assets		187,114			186,899
Less: Accumulated amortization (a)		(98,163	)		(95,681	)
Net acquired intangible assets	$	88,951		$	91,218

(a) Applies to all intangible assets, except for trademarks and trade names totaling $2.6 million, which has an indefinite useful life and, as such, is not being amortized.

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Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Quantitative Disclosures Related to Operating Leases

The following tables provide quantitative disclosures related to our operating leases and includes all operating leases acquired from the date of acquisition (in thousands):

Balance Sheet Information	March 31, 2024		December 31, 2023
Assets
Operating lease right-of-use assets	$	102,060	$	100,065
Liabilities
Sundry payables and accrued expenses	$	17,973	$	17,139
Noncurrent operating lease liabilities		90,667		88,974
Total operating lease liabilities	$	108,640	$	106,113
Weighted Average Remaining Lease Term
Operating leases	8.3 Years		8.3 Years
Weighted Average Discount Rate
Operating leases		4.9%		4.8%
	Three Months Ended
Expense and Cash Flow Information	March 31,
Lease Expense	2024		2023
Operating lease expense (a)	$	4,820	$	3,109
Supplemental Cash Flow Information
Cash paid for the amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,131	$	2,834
Right-of-use assets obtained in exchange for new operating lease obligations (b)	$	5,628	$	29,092

(a) Excludes expenses of approximately $0.8 million for each of the three months ended March 31, 2024 and 2023, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material.

(b) Includes $4.7 million of right-of-use assets related to the lease modification and extension for our manufacturing facility in Bialystok, Poland during the three months ended March 31, 2024, and $27.8 million of right-of-use assets related to the lease modification and extension for our distribution center and office in Lewisville, Texas during the three months ended March 31, 2023.

Minimum Lease Payments

At March 31, 2024, we are obligated to make minimum lease payments through 2034, under operating leases, which are as follows (in thousands):

2024	$	13,904
2025		16,624
2026		15,190
2027		14,245
2028		12,616
Thereafter		62,092
Total lease payments	$	134,671
Less: Interest		(26,031	)
Present value of lease liabilities	$	108,640

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Credit Facilities and Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2024

Credit Facilities and Long-Term Debt [Abstract]

Summary of Total Debt Outstanding

Total debt outstanding is summarized as follows:

	March 31, 2024		December 31, 2023
	(In thousands)
Credit facility – term loan due 2027	$	91,250	$	92,500
Credit facility – revolver due 2027		123,450		63,500
Other		202		211
Total debt	$	214,902	$	156,211
Current maturities of debt	$	5,030	$	5,029
Long-term debt		209,872		151,182
Total debt	$	214,902	$	156,211

Maturities of Debt

As of March 31, 2024, maturities of debt through 2027, assuming no prepayments, are as follows (in thousands):

	Revolving Credit Facility		Term Loan Facility			Polish Overdraft Facility and Other Debt			Total
Remainder of 2024	$	—	$	3,750		$	22		$	3,772
2025		—		5,000			31			5,031
2026		—		7,500			48			7,548
2027		123,450		75,000			101			198,551
Total	$	123,450	$	91,250		$	202		$	214,902
Less: Current maturities		—		(5,000	)		(30	)		(5,030	)
Long-term debt	$	123,450	$	86,250		$	172		$	209,872

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Accumulated Other Comprehensive Income Attributable to SMP (Tables)

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Income Attributable to SMP [Abstract]

Changes in Accumulated Other Comprehensive Income by Component

Changes in Accumulated Other Comprehensive Income by Component (in thousands)

	Three Months Ended March 31, 2024
	Foreign Currency Translation			Unrealized derivative gains (losses)			Unrecognized Postretirement Benefit Costs (Credit)			Total
Balance at December 31, 2023	$	(8,897	)	$	2,899		$	24		$	(5,974	)
Other comprehensive income (loss) before reclassifications		(1,220	)		1,888	(a)		–			668
Amounts reclassified from accumulated other comprehensive income		—			(497	)		(3	)		(500	)
Other comprehensive income (loss), net		(1,220	)		1,391			(3	)		168
Balance at March 31, 2024	$	(10,117	)	$	4,290		$	21		$	(5,806	)

(a) Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $1.9 million ($1.4 million, net of tax), plus cash settlement receipts of $0.7 million ($0.5 million, net of tax) in the three months ended March 31, 2024.

Reclassifications Out of Accumulated Other Comprehensive Income

Reclassifications Out of Accumulated Other Comprehensive Income (in thousands)

	Three Months Ended
	March 31, 2024
Derivative cash flow hedge:
Unrecognized (gain) loss (a)	$	(671	)
Postretirement benefit plans:
Unrecognized (gain) loss (b)		(5	)
Total before income tax		(676	)
Income tax (expense) benefit		(176	)
Total reclassifications	$	(500	)

(a) Unrecognized accumulated other comprehensive income (loss) related to the cash flow interest rate hedge is reclassified to earnings and reported as part of interest expense in our consolidated statements of operations when the interest payments on the underlying borrowings are recognized.

(b) Unrecognized accumulated other comprehensive income (loss) related to our post retirement plans is reclassified to earnings and included in the computation of net periodic postretirement benefit costs, which are included in other non-operating income (expense), net in our consolidated statements of operations (see Note 12, “Employee Benefits,” for additional information).

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Stock-Based Compensation Plans (Tables)

3 Months Ended

Mar. 31, 2024

Stock-Based Compensation Plans [Abstract]

Restricted and Performance-based Share Activity

Our restricted and performance-based share activity was as follows for the three months ended March 31, 2024:

	Shares			Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2023		880,976		$	29.48
Granted		—			—
Vested		(7,928	)		27.70
Forfeited		(7,150	)		32.47
Balance at March 31, 2024		865,898		$	29.47

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Measurements [Abstract]

Summary of Estimated Fair Values, Carrying Amounts and Classification under Fair Value Hierarchy

The following is a summary of the estimated fair values, carrying amounts, and classification under the fair value hierarchy of our financial instruments at March 31, 2024 and December 31, 2023 (in thousands):

		March 31, 2024				December 31, 2023
	Fair Value Hierarchy	Fair Value		Carrying Amount		Fair Value		Carrying Amount
Cash and cash equivalents (a)	LEVEL1/2	$	27,113	$	27,113	$	32,526	$	32,526
Deferred compensation	LEVEL 1		25,674		25,674		23,893		23,893
Short term borrowings	LEVEL 2		5,030		5,030		5,029		5,029
Long-term debt	LEVEL 2		209,872		209,872		151,182		151,182
Cash flow interest rate swap	LEVEL 2		5,820		5,820		3,939		3,939
Long-term investments	LEVEL 2		7,522		7,522		7,468		7,468

(a) As of March 31, 2024 cash and cash equivalents consist of cash of $24.1 million and cash equivalents of $3 million, which are classified as Level 1 and Level 2, respectively, under the fair value hierarchy.  As of December 31, 2023 cash and cash equivalents consist of cash of $29.5 million and cash equivalents of $3 million, which are classified as Level 1 and Level 2, respectively, under the fair value hierarchy.

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Reconciliations of Earnings Available to Common Stockholders and Shares used in Calculating Basic and Dilutive Net Earnings per Common Share

The following are reconciliations of the net earnings attributable to SMP and the shares used in calculating basic and dilutive net earnings per common share (in thousands, except per share data):

	Three Months Ended March 31,
	2024			2023
Net Earnings Attributable to SMP -
Earnings from continuing operations	$	9,863		$	12,698
Loss from discontinued operations		(1,039	)		(780	)
Net earnings attributable to SMP	$	8,824		$	11,918
Basic Net Earnings Per Common Share Attributable to SMP -
Earnings from continuing operations per common share	$	0.45		$	0.59
Loss from discontinued operations per common share		(0.05	)		(0.04	)
Net earnings per common share attributable to SMP	$	0.40		$	0.55
Weighted average common shares outstanding		21,924			21,610
Diluted Net Earnings Per Common Share Attributable to SMP -
Earnings from continuing operations per common share	$	0.44		$	0.57
Loss from discontinued operations per common share		(0.05	)		(0.03	)
Net earnings per common share attributable to SMP	$	0.39		$	0.54
Weighted average common shares outstanding		21,924			21,610
Plus incremental shares from assumed conversions:
Dilutive effect of restricted stock and performance-based stock		449			488
Weighted average common shares outstanding – Diluted		22,373			22,098

Anti-dilutive Securities Excluded from Computation of Earnings per Share

The shares listed below were not included in the computation of diluted net earnings per common share attributable to SMP because to do so would have been anti-dilutive for the periods presented or because they were excluded under the treasury method (in thousands):

	Three Months Ended March 31,
	2024		2023
Restricted and performance-based shares		281		298

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Industry Segments (Tables)

3 Months Ended

Mar. 31, 2024

Industry Segments [Abstract]

Sales and Operating Income by Operating Segments

The following tables show our net sales and operating income for each reportable operating segment (in thousands):

	Three Months Ended March 31,
	2024			2023
Net Sales (a)
Vehicle Control	$	185,524		$	184,577
Temperature Control		71,608			72,406
Engineered Solutions		74,271			71,045
Other		—			—
Consolidated	$	331,403		$	328,028
Operating Income (Loss)
Vehicle Control	$	15,540		$	17,375
Temperature Control		2,031			2,084
Engineered Solutions		2,232			5,647
Other		(5,184	)		(4,360	)
Consolidated	$	14,619		$	20,746

(a) There are no intersegment sales among our Vehicle Control, Temperature Control and Engineered Solutions operating segments.

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Net Sales (Tables)

3 Months Ended

Mar. 31, 2024

Net Sales [Abstract]

Disaggregation of Net Sales

The following table summarizes consolidated net sales by major product group within each operating segment for the three months ended March 31, 2024 and 2023 (in thousands):

Three Months Ended March 31,
	2024		2023
Vehicle Control
Engine Management (Ignition, Emissions and Fuel Delivery)	$	116,085	$	116,083
Electrical and Safety		52,407		51,804
Wire Sets and Other		17,032		16,690
Total Vehicle Control		185,524		184,577
Temperature Control
AC System Components		49,960		50,798
Other Thermal Components		21,648		21,608
Total Temperature Control		71,608		72,406
Engineered Solutions
Commercial Vehicle		22,908		20,232
Construction/Agriculture		10,076		11,692
Light Vehicle		21,803		23,019
All Other		19,484		16,102
Total Engineered Solutions		74,271		71,045
Other		—		—
Total	$	331,403	$	328,028

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies [Abstract]

Changes in Product Warranties

The following table provides the changes in our product warranties (in thousands):

	Three Months Ended March 31,
	2024			2023
Balance, beginning of period	$	21,134		$	19,667
Liabilities accrued for current year sales		28,677			25,793
Settlements of warranty claims		(26,719	)		(24,860	)
Balance, end of period	$	23,092		$	20,600

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Basis of Presentation (Details)	3 Months Ended
	Mar. 31, 2024 Segment
Basis of Presentation [Abstract]
Number of reportable segments	2
Equity ownership in entities included in consolidated financial statements, minimum	50.00%

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Business Acquisitions and Investments (Details) $ in Thousands		1 Months Ended	6 Months Ended
		Jul. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jul. 31, 2023 CNY (¥)	Dec. 31, 2022	Mar. 31, 2018 USD ($)	Mar. 31, 2018 CNY (¥)	Apr. 30, 2014 USD ($)
Investments in and Advances to Affiliates, Balance [Abstract]
Investments in unconsolidated affiliates				$ 24,751	$ 24,050
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Goodwill				$ 134,624	$ 134,729
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co Ltd [Member]
Investments in and Advances to Affiliates, Balance [Abstract]
Percentage of equity interest acquired		15.00%		80.00%		15.00%	65.00%	15.00%	15.00%	50.00%
Investments in unconsolidated affiliates		$ 4,000				¥ 27,378,290		$ 4,200	¥ 26,475,583	$ 14,000
Total purchase consideration	[1]	21,725
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Cash and cash equivalents		6,779
Receivables		5,912
Inventory		5,945
Other current assets		528
Property, plant, and equipment, net		2,924
Operating lease right-of-use assets		4,372
Intangible assets	[2]	532
Goodwill		2,208
Long term investments and other assets		7,257
Current liabilities		(6,004)
Noncurrent operating lease liabilities		(3,455)
Subtotal		26,998
Fair value of acquired noncontrolling interest		(5,273)
Net assets acquired		21,725
Equity investment interest held			$ 17,700
Cash paid for the acquisition of equity interest		4,000
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co Ltd [Member] | Temperature Control Segment [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Goodwill		1,200
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co Ltd [Member] | Engineered Solutions Segment [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Goodwill		$ 1,000
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co Ltd [Member] | Customer Relationships [Member]
Investments in and Advances to Affiliates, Balance [Abstract]
Estimated useful life of intangible assets		10 years				10 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Intangible assets		$ 400
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co Ltd [Member] | Capitalized Software [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Intangible assets		$ 100

[1] Total purchase consideration is the sum of the fair value of the previously held equity investment interest in Gwo Yng of $17.7 million and the cash paid of $4 million for the acquisition of the additional 15% equity ownership interest.

[2] Intangible assets consists of customer relationships of $0.4 million and capitalized software of $0.1 million.

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Restructuring and Integration Expenses (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2024		Mar. 31, 2023
Restructuring and integration activities [Roll Forward]
Exit activity liability, beginning of period		$ 1,729
Amounts provided for during 2024 (a)		192	[1]	$ 912
Cash payments		(590)
Foreign currency exchange rate changes		(18)
Exit activity liability, end of period		1,313
Restructuring Costs [Abstract]
Employee severance costs		17
Expenses related to relocation of machinery and equipment		175
Vehicle Control Segment [Member]
Restructuring and integration activities [Roll Forward]
Amounts provided for during 2024 (a)		101
Temperature Control Segment [Member]
Restructuring and integration activities [Roll Forward]
Amounts provided for during 2024 (a)		58
Engineered Solutions Segment [Member]
Restructuring and integration activities [Roll Forward]
Amounts provided for during 2024 (a)		33
Workforce Reduction [Member]
Restructuring and integration activities [Roll Forward]
Exit activity liability, beginning of period		1,729
Amounts provided for during 2024 (a)	[1]	17
Cash payments		(415)
Foreign currency exchange rate changes		(18)
Exit activity liability, end of period		1,313
Other Exit Costs [Member]
Restructuring and integration activities [Roll Forward]
Exit activity liability, beginning of period		0
Amounts provided for during 2024 (a)	[1]	175
Cash payments		(175)
Foreign currency exchange rate changes		0
Exit activity liability, end of period		$ 0

[1] Restructuring and integration expenses incurred during the three months ended March 31, 2024 consist of $101,000 in our Vehicle Control segment, $58,000 in our Temperature Control segment and $33,000 in our Engineered Solutions segment.

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Sale of Receivables (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Sale of Receivables [Abstract]
Sale of receivables to financial institutions	$ 170.8	$ 170.9
Receivables not yet collected	10.9		$ 4.5
Charge related to sale of receivables	$ 10.0	$ 9.0

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Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventories [Abstract]
Finished goods	$ 314,809	$ 302,557
Work in process	17,344	18,503
Raw materials	188,549	186,015
Subtotal	520,702	507,075
Unreturned customer inventories	18,007	18,240
Total inventories	$ 538,709	$ 525,315

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Acquired Intangible Assets, Identifiable Intangible Assets (Details) - USD ($) $ in Thousands		Mar. 31, 2024	Dec. 31, 2023
Indefinite Lived Intangible Assets [Abstract]
Acquired intangible assets		$ 187,114	$ 186,899
Less Accumulated amortization	[1]	(98,163)	(95,681)
Net acquired intangible assets		88,951	91,218
Customer Relationships [Member]
Indefinite Lived Intangible Assets [Abstract]
Acquired intangible assets		159,843	159,641
Patents, Developed Technology and Intellectual Property [Member]
Indefinite Lived Intangible Assets [Abstract]
Acquired intangible assets		14,123	14,123
Trademarks and Trade Names [Member]
Indefinite Lived Intangible Assets [Abstract]
Acquired intangible assets		8,880	8,880
Acquired indefinite-lived intangible assets		2,600
Non-compete Agreements [Member]
Indefinite Lived Intangible Assets [Abstract]
Acquired intangible assets		3,308	3,295
Supply Agreements [Member]
Indefinite Lived Intangible Assets [Abstract]
Acquired intangible assets		800	800
Leaseholds [Member]
Indefinite Lived Intangible Assets [Abstract]
Acquired intangible assets		$ 160	$ 160

[1] Applies to all intangible assets, except for trademarks and trade names totaling $2.6 million, which has an indefinite useful life and, as such, is not being amortized.

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Acquired Intangible Assets, Amortization Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Amortization of acquired intangible assets [Abstract]
Amortization expense	$ 2.1	$ 2.2
Estimated amortization expense, remainder of 2024	6.4
Estimated amortization expense in year 2025	8.5
Estimated amortization expense in year 2026	8.5
Estimated amortization expense in year 2027	8.5
Estimated amortization expense in years 2028 through 2041	$ 54.5

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Leases (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Quantitative Lease Disclosures [Abstract]
Renewal option period		5 years
Assets [Abstract]
Operating lease right-of-use assets		$ 102,060		$ 100,065
Liabilities [Abstract]
Sundry payables and accrued expenses		17,973		17,139
Noncurrent operating lease liabilities		90,667		88,974
Total operating lease liabilities		$ 108,640		$ 106,113
Operating Leases [Abstract]
Weighted average remaining lease term		8 years 3 months 18 days		8 years 3 months 18 days
Weighted average discount rate		4.90%		4.80%
Lease Expense [Abstract]
Operating lease expense	[1]	$ 4,820	$ 3,109
Excluded non-lease expenses		800	800
Cash paid for the amounts included in the measurement of lease liabilities [Abstract]
Operating cash flows from operating leases		4,131	2,834
Right-of-use assets obtained in exchange for new operating lease obligations	[2]	5,628	29,092
Minimum Lease Payments [Abstract]
2024		13,904
2025		16,624
2026		15,190
2027		14,245
2028		12,616
Thereafter		62,092
Total lease payments		134,671
Less: Interest		(26,031)
Total operating lease liabilities		$ 108,640		$ 106,113
Maximum [Member]
Quantitative Lease Disclosures [Abstract]
Remaining operating lease terms		10 years
Poland
Cash paid for the amounts included in the measurement of lease liabilities [Abstract]
Right-of-use assets related to lease modifications and extension		$ 4,700
Texas
Cash paid for the amounts included in the measurement of lease liabilities [Abstract]
Right-of-use assets related to lease modifications and extension			$ 27,800

[1] Excludes expenses of approximately $0.8 million for each of the three months ended March 31, 2024 and 2023, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material.

[2] Includes $4.7 million of right-of-use assets related to the lease modification and extension for our manufacturing facility in Bialystok, Poland during the three months ended March 31, 2024, and $27.8 million of right-of-use assets related to the lease modification and extension for our distribution center and office in Lewisville, Texas during the three months ended March 31, 2023.

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Credit Facilities and Long-Term Debt, Total Debt Outstanding (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instruments [Abstract]
Total debt	$ 214,902	$ 156,211
Current maturities of debt	5,030	5,029
Long-term debt	209,872	151,182
Credit Facility - Term Loan Due 2027 [Member]
Debt Instruments [Abstract]
Total debt	91,250	92,500
Current maturities of debt	5,000
Long-term debt	86,250
Credit Facility - Revolver Due 2027 [Member]
Debt Instruments [Abstract]
Total debt	123,450	63,500
Current maturities of debt	0
Long-term debt	123,450
Other [Member]
Debt Instruments [Abstract]
Total debt	202	$ 211
Current maturities of debt	30
Long-term debt	$ 172

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Credit Facilities and Long-Term Debt, Term Loan and Revolving Credit Facilities (Details) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($) Installment	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)
Term Loan and Revolving Credit Facilities [Member]
Line of Credit Facility [Abstract]
Maximum borrowing capacity				$ 500.0
Maturity date	Jun. 01, 2027
Frequency of periodic payment	quarterly
Debt instrument, extension period	1 year
Borrowing base	$ 168.0
Maximum consolidated EBITDA	1
Net Leverage Ratio	250.00%
Outstanding borrowings under credit facility	$ 214.7		$ 156.0
Current portion of debt	5.0		5.0
Long-term debt	209.7		151.0
Outstanding letters of credit	$ 2.3		$ 2.3
Weighted average interest rate	5.50%		5.00%
Term Loan and Revolving Credit Facilities [Member] | SOFR [Member]
Line of Credit Facility [Abstract]
Margin on variable rate	0.10%
Term of variable rate	1 month
Interest rate periods	one, three or six months
Outstanding borrowings under credit facility	$ 211.0		$ 156.0
Weighted average interest rate			5.00%
Term Loan and Revolving Credit Facilities [Member] | Federal Funds Rate [Member]
Line of Credit Facility [Abstract]
Margin on variable rate	0.50%
Term Loan and Revolving Credit Facilities [Member] | Term Benchmark Borrowings [Member] | Minimum [Member]
Line of Credit Facility [Abstract]
Margin on variable rate	1.00%
Term Loan and Revolving Credit Facilities [Member] | Term Benchmark Borrowings [Member] | Maximum [Member]
Line of Credit Facility [Abstract]
Margin on variable rate	2.00%
Term Loan and Revolving Credit Facilities [Member] | Alternate Base Rate [Member]
Line of Credit Facility [Abstract]
Margin on variable rate	1.00%
Outstanding borrowings under credit facility	$ 3.7
Weighted average interest rate	8.80%
Average daily loan balance outstanding	$ 1.7	$ 0.3	$ 0.1
Term Loan and Revolving Credit Facilities [Member] | Alternate Base Rate [Member] | Minimum [Member]
Line of Credit Facility [Abstract]
Margin on variable rate	0.00%
Term Loan and Revolving Credit Facilities [Member] | Alternate Base Rate [Member] | Maximum [Member]
Line of Credit Facility [Abstract]
Margin on variable rate	1.00%
Term Loan Facility [Member]
Line of Credit Facility [Abstract]
Maximum borrowing capacity				100.0
Term Loan Facility [Member] | Maximum [Member]
Line of Credit Facility [Abstract]
Number of extensions of maturity date | Installment	2
Term Loan Facility [Member] | First Four Years [Member]
Line of Credit Facility [Abstract]
Periodic payment amortization percentage	1.25%
Term Loan Facility [Member] | Fifth Year [Member]
Line of Credit Facility [Abstract]
Periodic payment amortization percentage	2.50%
Revolving Credit Facility [Member]
Line of Credit Facility [Abstract]
Maximum borrowing capacity				400.0
Letter of Credit Sublimit [Member]
Line of Credit Facility [Abstract]
Maximum borrowing capacity	$ 25.0
Swing Line Loans [Member]
Line of Credit Facility [Abstract]
Maximum borrowing capacity	25.0
Interest Rate Swap Agreement [Member]
Line of Credit Facility [Abstract]
Maximum borrowing capacity	$ 100.0
Term of variable rate	1 month
Period of agreement	7 years
Outstanding borrowings under credit facility	$ 100.0		$ 100.0	$ 100.0

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Credit Facilities and Long-Term Debt, Polish Overdraft Facility (Details) - Polish Overdraft Facility [Member] zł in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Nov. 30, 2023 USD ($)	Nov. 30, 2023 PLN (zł)
Line of Credit Facility [Abstract]
Maximum borrowing capacity			$ 7.5	zł 30
Threshold percentage of borrowing capacity	85.00%
Threshold borrowing capacity limit	$ 6.4
Overdraft facility renewal period	3 months
Overdraft facility cancellation period	30 days
Overdraft facility	$ 0.0	$ 0.0
1M WIBOR [Member]
Line of Credit Facility [Abstract]
Basis spread on variable rate	1.00%
1M EURIBOR [Member]
Line of Credit Facility [Abstract]
Basis spread on variable rate	1.00%
Mid-Point of Fed Target Range [Member]
Line of Credit Facility [Abstract]
Basis spread on variable rate	1.25%

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Credit Facilities and Long-Term Debt, Maturities of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Maturities of Debt [Abstract]
Remainder of 2024	$ 3,772
2025	5,031
2026	7,548
2027	198,551
Total debt	214,902	$ 156,211
Less: Current maturities	(5,030)	(5,029)
Long-term debt	209,872	151,182
Revolving Credit Facility [Member]
Maturities of Debt [Abstract]
Remainder of 2024	0
2025	0
2026	0
2027	123,450
Total debt	123,450	63,500
Less: Current maturities	0
Long-term debt	123,450
Term Loan Facility [Member]
Maturities of Debt [Abstract]
Remainder of 2024	3,750
2025	5,000
2026	7,500
2027	75,000
Total debt	91,250	92,500
Less: Current maturities	(5,000)
Long-term debt	86,250
Polish Overdraft Facility and Other Debt [Member]
Maturities of Debt [Abstract]
Remainder of 2024	22
2025	31
2026	48
2027	101
Total debt	202	$ 211
Less: Current maturities	(30)
Long-term debt	$ 172

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Credit Facilities and Long-Term Debt, Deferred Financing Costs (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Deferred Financing Costs [Abstract]
Deferred financing costs	$ 1.5	$ 1.6
Deferred Finance Costs, Amortization [Abstract]
Remainder of 2024	0.4
2025	0.5
2026	0.5
2027	$ 0.1

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Accumulated Other Comprehensive Income Attributable to SMP, Changes in Accumulated Other Comprehensive Income by Component (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward]
Balance at December 31, 2023	$ 635,064
Other comprehensive income (loss) before reclassifications	668
Amounts reclassified from accumulated other comprehensive income	(500)
Other comprehensive income (loss), net	168
Balance at March 31, 2024	639,150
Reclassification out of Accumulated Other Comprehensive Income [Member]
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward]
Unrecognized gain relating to change in fair value of cash flow interest rate hedge	1,900
Unrecognized gain relating to change in fair value of cash flow interest rate hedge, net of tax	1,400
Unrecognized gain, net of cash settlements	700
Unrecognized gain, net of cash settlements, net of tax	500
Accumulated Other Comprehensive Income (Loss) [Member]
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward]
Balance at December 31, 2023	(5,974)
Balance at March 31, 2024	(5,806)
Foreign Currency Translation [Member]
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward]
Balance at December 31, 2023	(8,897)
Other comprehensive income (loss) before reclassifications	(1,220)
Amounts reclassified from accumulated other comprehensive income	0
Other comprehensive income (loss), net	(1,220)
Balance at March 31, 2024	(10,117)
Unrealized Derivative Gains (Losses) [Member]
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward]
Balance at December 31, 2023	2,899
Other comprehensive income (loss) before reclassifications	1,888	[1]
Amounts reclassified from accumulated other comprehensive income	(497)
Other comprehensive income (loss), net	1,391
Balance at March 31, 2024	4,290
Unrecognized Postretirement Benefit Costs (Credit) [Member]
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward]
Balance at December 31, 2023	24
Other comprehensive income (loss) before reclassifications	0
Amounts reclassified from accumulated other comprehensive income	(3)
Other comprehensive income (loss), net	(3)
Balance at March 31, 2024	$ 21

[1] Consists of the unrecognized gain relating to the change in fair value of the cash flow interest rate hedge of $1.9 million ($1.4 million, net of tax), plus cash settlement receipts of $0.7 million ($0.5 million, net of tax) in the three months ended March 31, 2024.

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Accumulated Other Comprehensive Income Attributable to SMP, Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Details About Accumulated Other Comprehensive Income Components [Abstract]
Interest expense		$ 2,067	$ 3,862
Other non-operating income (expense), net		819	225
Earnings from continuing operations before income taxes		13,371	17,109
Income tax (expense) benefit		3,342	4,372
Net earnings attributable to SMP	[1]	8,824	$ 11,918
Reclassification out of Accumulated Other Comprehensive Income [Member]
Details About Accumulated Other Comprehensive Income Components [Abstract]
Earnings from continuing operations before income taxes		(676)
Income tax (expense) benefit		(176)
Net earnings attributable to SMP		(500)
Unrealized Derivative Gains (Losses) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Details About Accumulated Other Comprehensive Income Components [Abstract]
Interest expense	[2]	(671)
Unrecognized Postretirement Benefit Costs (Credit) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Details About Accumulated Other Comprehensive Income Components [Abstract]
Other non-operating income (expense), net	[3]	$ (5)

[1] Throughout this Form 10-Q, “SMP” refers to Standard Motor Products, Inc. and subsidiaries.

[2] Unrecognized accumulated other comprehensive income (loss) related to the cash flow interest rate hedge is reclassified to earnings and reported as part of interest expense in our consolidated statements of operations when the interest payments on the underlying borrowings are recognized.

[3] Unrecognized accumulated other comprehensive income (loss) related to our post retirement plans is reclassified to earnings and included in the computation of net periodic postretirement benefit costs, which are included in other non-operating income (expense), net in our consolidated statements of operations (see Note 12, “Employee Benefits,” for additional information).

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Stock-Based Compensation Plans (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) Type $ / shares shares	Mar. 31, 2023 USD ($)
Restricted and Performance Stock Grants [Abstract]
Number of types of restricted stock | Type	2
Additional Disclosures [Abstract]
Compensation expense, gross | $	$ 1,270	$ 1,532
Restricted Shares [Member] | Minimum [Member]
Restricted and Performance Stock Grants [Abstract]
Expiration of vesting period	3 years
Restricted Shares [Member] | Employees [Member]
Restricted and Performance Stock Grants [Abstract]
Estimated forfeitures	5.00%
Restricted Shares [Member] | Executives [Member]
Restricted and Performance Stock Grants [Abstract]
Estimated forfeitures	0.00%
Restricted Shares [Member] | Directors [Member]
Restricted and Performance Stock Grants [Abstract]
Estimated forfeitures	0.00%
Restricted Shares [Member] | Age 60 [Member] | Executives [Member]
Restricted and Performance Stock Grants [Abstract]
Vesting percentage	25.00%
Vesting period before reaching age limit	2 months
Restricted Shares [Member] | Age 63 [Member] | Executives [Member]
Restricted and Performance Stock Grants [Abstract]
Vesting percentage	25.00%
Vesting period before reaching age limit	2 months
Restricted Shares [Member] | Age 65 [Member] | Executives [Member]
Restricted and Performance Stock Grants [Abstract]
Vesting percentage	100.00%
Vesting period before reaching age limit	2 months
Performance-based Shares [Member]
Restricted and Performance Stock Grants [Abstract]
Measuring period for performance-based shares	3 years
Performance-based Shares [Member] | Minimum [Member]
Restricted and Performance Stock Grants [Abstract]
Expiration of vesting period	3 years
Restricted and Performance-Based Shares [Member]
Restricted and performance-based stock, shares [Roll Forward]
Beginning of period (in shares)	880,976
Granted (in shares)	0
Vested (in shares)	(7,928)
Forfeited (in shares)	(7,150)
End of period (in shares)	865,898
Restricted and performance-based stock, weighted average grant date fair value per share [Roll Forward]
Beginning of period (in dollars per share) | $ / shares	$ 29.48
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	27.7
Forfeited (in dollars per share) | $ / shares	32.47
End of period (in dollars per share) | $ / shares	$ 29.47
Additional Disclosures [Abstract]
Compensation expense, gross | $	$ 1,300	1,500
Compensation expense, net of tax | $	1,000	$ 1,100
Unamortized compensation expense | $	$ 11,400
Restricted and Performance-Based Shares [Member] | Employees [Member]
Additional Disclosures [Abstract]
Weighted average period of recognition for unrecognized compensation expense	3 years 11 months 8 days
Restricted and Performance-Based Shares [Member] | Directors [Member]
Additional Disclosures [Abstract]
Weighted average period of recognition for unrecognized compensation expense	29 days
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Minimum [Member]
Restricted and Performance Stock Grants [Abstract]
Holding period for restricted and performance shares issued	1 year
Restricted and Performance-Based Shares [Member] | Executives and Directors [Member] | Maximum [Member]
Restricted and Performance Stock Grants [Abstract]
Holding period for restricted and performance shares issued	2 years
2016 Omnibus Incentive Plan [Member] | Employees and Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Abstract]
Shares authorized for issuance (in shares)	2,050,000

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Employee Benefits (Details) $ in Millions	1 Months Ended	3 Months Ended
	Mar. 31, 2024 USD ($) shares	Mar. 31, 2024 Employee shares
Benefit Plan [Abstract]
Number of former union employees covered by the plan | Employee		13
Supplemental Executive Retirement Plan [Member]
Defined Contribution Pension and Other Postretirement Plans [Abstract]
Employer discretionary contribution amount | $	$ 0.5
Employee Stock Ownership Plan and Trust (ESOP) [Member]
Employee Stock Ownership Plan (ESOP), Debt Structure [Abstract]
Additional shares contributed to ESOP (in shares)		68,700
Shares released from trust (in shares)	68,700	68,700
Total remaining balance of shares in the ESOP (in shares)	200	200

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Derivative Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2022
Interest Rate Swap Agreement [Member]
Notional Disclosures [Abstract]
Derivative term of contract	7 years
Borrowings under credit agreement	$ 100.0	$ 100.0	$ 100.0
Term of variable rate	1 month
Fixed interest rate	2.683%
Derivative, credit spread adjustment percentage	0.10%
Margin on variable rate	1.25%
Interest Rate Swap [Member]
Notional Disclosures [Abstract]
Derivative term of contract	7 years
Derivative, notional amount			$ 100.0
Derivative contract, maturity date	May 31, 2029
Derivative fair value	$ 5.8	$ 3.9

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Fair Value Measurements (Details) - USD ($) $ in Thousands		Mar. 31, 2024	Dec. 31, 2023
LEVEL 1 [Member]
Fair Value, Net Asset (Liability) [Abstract]
Cash		$ 29,500	$ 24,100
LEVEL 2 [Member]
Fair Value, Net Asset (Liability) [Abstract]
Cash equivalents		3,000	3,000
Fair Value [Member] | LEVEL 1/2 [Member]
Fair Value, Net Asset (Liability) [Abstract]
Cash and cash equivalents	[1]	27,113	32,526
Fair Value [Member] | LEVEL 1 [Member]
Fair Value, Net Asset (Liability) [Abstract]
Deferred compensation		25,674	23,893
Fair Value [Member] | LEVEL 2 [Member]
Fair Value, Net Asset (Liability) [Abstract]
Short term borrowings		5,030	5,029
Long-term debt		209,872	151,182
Cash flow interest rate swap		5,820	3,939
Long-term investments		7,522	7,468
Carrying Amount [Member] | LEVEL 1/2 [Member]
Fair Value, Net Asset (Liability) [Abstract]
Cash and cash equivalents	[1]	27,113	32,526
Carrying Amount [Member] | LEVEL 1 [Member]
Fair Value, Net Asset (Liability) [Abstract]
Deferred compensation		25,674	23,893
Carrying Amount [Member] | LEVEL 2 [Member]
Fair Value, Net Asset (Liability) [Abstract]
Short term borrowings		5,030	5,029
Long-term debt		209,872	151,182
Cash flow interest rate swap		5,820	3,939
Long-term investments		$ 7,522	$ 7,468

[1] As of March 31, 2024 cash and cash equivalents consist of cash of $24.1 million and cash equivalents of $3 million, which are classified as Level 1 and Level 2, respectively, under the fair value hierarchy.  As of December 31, 2023 cash and cash equivalents consist of cash of $29.5 million and cash equivalents of $3 million, which are classified as Level 1 and Level 2, respectively, under the fair value hierarchy.

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Net Earnings Attributable to SMP [Abstract]
Earnings from continuing operations		$ 9,863	$ 12,698
Loss from discontinued operations		(1,039)	(780)
Net earnings attributable to SMP	[1]	$ 8,824	$ 11,918
Basic Net Earnings Per Common Share Attributable to SMP [Abstract]
Earnings from continuing operations per common share (in dollars per share)		$ 0.45	$ 0.59
Loss from discontinued operations per common share (in dollars per share)		(0.05)	(0.04)
Net earnings per common share - Basic (in dollars per share)		$ 0.4	$ 0.55
Weighted average common shares outstanding (in shares)		21,923,830	21,609,618
Diluted Net Earnings Per Common Share Attributable to SMP [Abstract]
Earnings from continuing operations per common share (in dollars per share)		$ 0.44	$ 0.57
Loss from discontinued operations per common share (in dollars per share)		(0.05)	(0.03)
Net earnings per common share - Diluted (in dollars per share)		$ 0.39	$ 0.54
Weighted average common shares outstanding (in shares)		21,923,830	21,609,618
Plus incremental shares from assumed conversions [Abstract]
Dilutive effect of restricted stock and performance-based stock (in shares)		449,000	488,000
Weighted average common shares outstanding - Diluted (in shares)		22,372,543	22,097,750
Restricted and Performance-Based Shares [Member]
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)		281,000	298,000

[1] Throughout this Form 10-Q, “SMP” refers to Standard Motor Products, Inc. and subsidiaries.

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Industry Segments (Details) $ in Thousands		3 Months Ended
		Mar. 31, 2024 USD ($) Segment	Mar. 31, 2023 USD ($)
Segment Reporting Information, Profit (Loss) [Abstract]
Number of operating segments | Segment		3
Net sales	[1]	$ 331,403	$ 328,028
Operating Income (Loss)		14,619	20,746
Vehicle Control [Member] | Reportable Segments [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	[1]	185,524	184,577
Operating Income (Loss)		15,540	17,375
Temperature Control [Member] | Reportable Segments [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	[1]	71,608	72,406
Operating Income (Loss)		2,031	2,084
Engineered Solutions [Member] | Reportable Segments [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	[1]	74,271	71,045
Operating Income (Loss)		2,232	5,647
Other [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Net sales	[1]	0	0
Operating Income (Loss)		$ (5,184)	$ (4,360)

[1] There are no intersegment sales among our Vehicle Control, Temperature Control and Engineered Solutions operating segments.

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Net Sales (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	$ 331,403	$ 328,028
United States [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	269,940	280,189
Canada [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	23,972	16,323
Europe [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	14,505	15,282
Mexico [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	12,232	10,355
Asia [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	8,803	4,136
Other Foreign [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	1,951	1,743
Vehicle Control [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	185,524	184,577
Vehicle Control [Member] | United States [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	164,821	166,412
Vehicle Control [Member] | Canada [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	9,158	8,330
Vehicle Control [Member] | Europe [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	283	198
Vehicle Control [Member] | Mexico [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	10,020	8,587
Vehicle Control [Member] | Asia [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	101	62
Vehicle Control [Member] | Other Foreign [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	1,141	988
Vehicle Control [Member] | Engine Management (Ignition, Emissions and Fuel Delivery) [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	116,085	116,083
Vehicle Control [Member] | Electrical and Safety [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	52,407	51,804
Vehicle Control [Member] | Wire Sets and Other [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	17,032	16,690
Temperature Control [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	71,608	72,406
Temperature Control [Member] | United States [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	64,665	69,571
Temperature Control [Member] | Canada [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	6,632	2,755
Temperature Control [Member] | Europe [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	16	0
Temperature Control [Member] | Mexico [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	5	0
Temperature Control [Member] | Asia [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	141	20
Temperature Control [Member] | Other Foreign [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	149	60
Temperature Control [Member] | AC System Components [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	49,960	50,798
Temperature Control [Member] | Other Thermal Components [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	21,648	21,608
Engineered Solutions [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	74,271	71,045
Engineered Solutions [Member] | United States [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	40,454	44,206
Engineered Solutions [Member] | Canada [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	8,182	5,238
Engineered Solutions [Member] | Europe [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	14,206	15,084
Engineered Solutions [Member] | Mexico [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	2,207	1,768
Engineered Solutions [Member] | Asia [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	8,561	4,054
Engineered Solutions [Member] | Other Foreign [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	661	695
Engineered Solutions [Member] | Commercial Vehicle [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	22,908	20,232
Engineered Solutions [Member] | Construction Agriculture [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	10,076	11,692
Engineered Solutions [Member] | Light Vehicle [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	21,803	23,019
Engineered Solutions [Member] | All Other [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	19,484	16,102
Other [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	0	0
Other [Member] | United States [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	0	0
Other [Member] | Canada [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	0	0
Other [Member] | Europe [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	0	0
Other [Member] | Mexico [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	0	0
Other [Member] | Asia [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	0	0
Other [Member] | Other Foreign [Member]
Disaggregation of Revenue [Abstract]
Disaggregation of net sales	$ 0	$ 0

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Commitments and Contingencies, Asbestos and Other Litigation (Details) $ in Thousands	1 Months Ended		3 Months Ended		271 Months Ended
	Sep. 30, 2023 USD ($)	Aug. 31, 2022 USD ($)	Mar. 31, 2024 USD ($) Claim	Mar. 31, 2023 USD ($)	Mar. 31, 2024 USD ($) Claim	Dec. 31, 2023 USD ($)	Aug. 31, 2023 USD ($)
Asbestos [Abstract]
Accrued asbestos liabilities			$ 68,985		$ 68,985	$ 72,013
Asbestos [Member]
Asbestos [Abstract]
Pending claims, approximate number | Claim			1,460		1,460
Payment for settled claims and awards related damages, including interest					$ 77,700
Increase in range of possible loss from lower range		$ 15,200
Increase in range of possible loss from upper range		$ 23,700
Accrued asbestos liabilities	$ 84,000
Incremental pre-tax provision	$ 23,800
Asbestos [Member] | Minimum [Member]
Asbestos [Abstract]
Range of possible loss							$ 84,000
Asbestos [Member] | Maximum [Member]
Asbestos [Abstract]
Range of possible loss							135,300
Asbestos [Member] | Discontinued Operations [Member]
Asbestos [Abstract]
Total operating cash outflows related to discontinued operations			$ 3,000	$ 2,600
Asbestos [Member] | Discontinued Operations [Member] | Minimum [Member]
Asbestos [Abstract]
Range of possible loss							53,100
Asbestos [Member] | Discontinued Operations [Member] | Maximum [Member]
Asbestos [Abstract]
Range of possible loss							$ 105,200

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Commitments and Contingencies, Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Changes in product warranties [Roll forward]
Balance, beginning of period	$ 21,134	$ 19,667
Liabilities accrued for current year sales	28,677	25,793
Settlements of warranty claims	(26,719)	(24,860)
Balance, end of period	$ 23,092	$ 20,600