|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
|
(Exact name of registrant as specified in its charter) |
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
|
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
|
|
|
|
Securities registered pursuant to Section 12(g) of the Act:
|
None
|
|
Accelerated Filer ☐
|
|
Non-Accelerated Filer ☐
|
Smaller reporting company
|
|
Emerging growth company
|
|
PART I.
|
Page No.
|
|
Item 1.
|
3
|
|
Item 1A.
|
13
|
|
Item 1B.
|
23
|
|
Item 1C.
|
24
|
|
Item 2.
|
25
|
|
Item 3.
|
26
|
|
Item 4.
|
26
|
|
PART II.
|
||
Item 5.
|
26
|
|
Item 6.
|
28
|
|
Item 7.
|
28
|
|
Item 7A.
|
42
|
|
Item 8.
|
44
|
|
Item 9.
|
90 | |
Item 9A.
|
90 | |
Item 9B.
|
91 | |
Item 9C.
|
91 | |
PART III.
|
||
Item 10.
|
91 | |
Item 11.
|
91
|
|
Item 12.
|
91
|
|
Item 13.
|
91
|
|
Item 14.
|
91
|
|
PART IV.
|
||
Item 15.
|
92
|
|
Item 16.
|
92
|
|
96
|
ITEM 1. |
BUSINESS
|
(1) |
Engine Management, which includes components for the ignition, emissions and fuel delivery systems of vehicles utilizing an internal combustion engine. Product categories include air injection
and induction components, air management valves, regulators and solenoids, exhaust gas recirculation (EGR) components, fuel injectors and related components, fuel valves, ignition coils, connectors and sockets, modules, pumps, relays and
fuses, starting and charging system parts, and vapor and purge components.
|
(2) |
Electrical & Safety, which includes components for the electrical and safety systems of vehicles, and are powertrain neutral vehicle technologies. Product categories include electrical
switches and actuators, chassis and drivetrain sensors such as anti-lock brake and vehicle speed sensors, fluid level sensors, pressure sensors such as tire pressure monitoring, temperature sensors, and sensors for advanced driver
assistance systems (ADAS), along with battery cables, pigtails, sockets and a wide range of electrical wire, terminals, connectors, and tools for servicing a vehicle’s electrical system.
|
(3) |
Wire Sets & Other, which includes spark plug wire sets, coil on plug boots and accessories servicing vehicle’s ignition system. Certain product categories within this group are in secular
decline based upon product life cycle.
|
(1) |
AC System Components, which includes compressors, air conditioning repair kits, connecting lines, heat exchangers, and expansion devices.
|
(2) |
Other Thermal Components, which includes parts that provide engine, transmission, electric drive motor, and battery temperature management.
|
(1) |
Thermal Management Products, which are designed to control the operating temperature of HVAC, battery and heat exchange systems, such as electrical compressors, fans, motors and pumps.
|
(2) |
Sensors, covering applications in speed, position, temperature, pressure, level and particulate matter, among others.
|
(3) |
Switches, covering applications in electrical performance, position, temperature, pressure, tilt and fluid levels, among others.
|
(4) |
Power Distribution, covering applications in power switching, industrial solenoids, and voltage regulators.
|
(5) |
Electrification & Electronics, which includes controller area network (CAN) devices, CAN bus wiring and splitting devices, and electronic controls, transmitters and components.
|
(6) |
Injection & Fuel Delivery, covering an extensive array of applications in transportation, such as gasoline, diesel and alternative fuels, such as compressed natural gas, liquefied natural gas,
liquefied petroleum gas, and hydrogen.
|
(7) |
Ignition & Emissions, which includes wire, ignition coils and positive crankcase ventilation valves.
|
(8) |
Clamping Devices, covering automotive and industrial applications.
|
■ Premium Quality Products
|
■ Premium Brands
|
■ Full-Line Coverage
|
■ Supply Chain Excellence
|
■ Field Sales Support
|
■ Marketing Support
|
■ World-Class Training
|
■ Basic Manufacturing
|
Vehicle
Control
|
|
Temperature
Control
|
Vehicle
Control
|
Examples of vertically integrated processes:
|
|
➢ plastic molding operations
|
➢ automated electronics assembly
|
➢ stamping and machining operations
|
➢ design and fabrication of processing and test equipment
|
➢ wire extrusion
|
➢ teardown, diagnostics and rebuilding of remanufactured air conditioning compressors, diesel injectors and diesel pumps
|
Engineered
Solutions
|
|
ITEM 1A. |
RISK FACTORS
|
• |
respond more quickly than we can to new or emerging technologies and changes in customer requirements by devoting greater resources than we can to the development, promotion and sale of automotive products and services;
|
• |
engage in more extensive research and development;
|
• |
sell products at a lower price than we do;
|
• |
undertake more extensive marketing campaigns; and
|
• |
make more attractive offers to existing and potential customers and strategic partners.
|
• |
increase our borrowing costs;
|
• |
limit our ability to obtain additional financing or borrow additional funds;
|
• |
require that a substantial portion of our cash flow from operations be used to pay principal and interest in our indebtedness, instead of funding working capital, capital expenditures, acquisitions, dividends, stock repurchases, or other
general corporate purposes;
|
• |
limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; and
|
• |
increase our vulnerability to general adverse economic and industry conditions.
|
• |
general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control;
|
• |
the ability of our customers to pay timely the amounts we have billed; and
|
• |
our ability to sell receivables under supply chain financing arrangements.
|
• |
deferring, reducing or eliminating future cash dividends;
|
• |
reducing or delaying capital expenditures or restructuring activities;
|
• |
reducing or delaying research and development efforts;
|
• |
selling assets;
|
• |
deferring or refraining from pursuing certain strategic initiatives and acquisitions;
|
• |
refinancing our indebtedness; and
|
• |
seeking additional funding.
|
ITEM 1B. |
UNRESOLVED STAFF COMMENTS
|
ITEM 1C. |
CYBERSECURITY
|
ITEM 2. |
PROPERTIES
|
Location |
State or
Country
|
Principal Business Activity |
Approx.
Square
Feet
|
Owned or
Expiration
Date
of Lease¹
|
||||
Vehicle Control
|
||||||||
Bialystok
|
Poland
|
Manufacturing
|
154,800
|
2027
|
||||
Disputanta
|
VA
|
Distribution
|
411,000
|
Owned
|
||||
Edwardsville
|
KS
|
Distribution
|
363,500
|
Owned
|
||||
Ft. Lauderdale
|
FL
|
Distribution
|
23,300
|
Owned
|
||||
Ft. Lauderdale
|
FL
|
Distribution
|
30,000
|
Owned
|
||||
Greenville2
|
SC
|
Manufacturing
|
184,500
|
Owned
|
||||
Independence2
|
KS
|
Manufacturing
|
337,400
|
Owned
|
||||
Long Island City
|
NY
|
Administration
|
75,800
|
2033
|
||||
McAllen
|
TX
|
Distribution
|
120,300
|
2027
|
||||
Mishawaka2
|
IN
|
Manufacturing
|
153,100
|
Owned
|
||||
Reynosa2
|
Mexico
|
Manufacturing
|
175,000
|
2025
|
||||
Reynosa2
|
Mexico
|
Manufacturing
|
153,000
|
2031
|
||||
Shawnee3
|
KS
|
Distribution
|
574,700
|
2033
|
||||
Temperature Control
|
||||||||
Foshan City
|
China
|
Manufacturing
|
361,500
|
2028
|
||||
Lewisville
|
TX
|
Administration and Distribution
|
415,000
|
2034
|
||||
Reynosa2
|
Mexico
|
Manufacturing
|
82,000
|
2026
|
||||
Reynosa2
|
Mexico
|
Manufacturing
|
117,500
|
2026
|
||||
Reynosa
|
Mexico
|
Manufacturing
|
111,800
|
2024
|
||||
St. Thomas
|
Canada
|
Manufacturing
|
42,500
|
Owned
|
||||
Engineered Solutions
|
||||||||
Kirchheim-Teck
|
Germany
|
Distribution
|
27,500
|
2031
|
||||
Pécel
|
Hungary
|
Manufacturing
|
59,500
|
Owned
|
||||
Milwaukee
|
WI
|
Manufacturing
|
84,000
|
2028
|
||||
Sheboygan Falls
|
WI
|
Manufacturing
|
22,500
|
2025
|
||||
Tijuana
|
Mexico
|
Distribution
|
13,800
|
2026
|
||||
Tijuana
|
Mexico
|
Manufacturing
|
30,400
|
2026
|
||||
Wuxi
|
China
|
Manufacturing
|
27,600
|
2029
|
||||
Other |
||||||||
Mississauga
|
Canada
|
Administration and Distribution
|
82,400
|
2028
|
||||
Irving
|
TX
|
Training Center
|
13,400
|
2027
|
ITEM 3. |
LEGAL PROCEEDINGS
|
ITEM 4. |
MINE SAFETY DISCLOSURES
|
ITEM 5. |
MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
SMP | S&P 500 |
S&P 1500 Auto
Parts &
Equipment
Index
|
|||
2018
|
100
|
100
|
100
|
||
2019
|
112
|
131
|
133
|
||
2020
|
86
|
156
|
164
|
||
2021
|
114
|
200
|
201
|
||
2022
|
78
|
164
|
136
|
||
2023
|
92
|
207
|
145
|
ITEM 7. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
December 31,
|
||||||||||||
(In thousands, except per share data)
|
2023
|
2022
|
2021
|
|||||||||
Net sales
|
$
|
1,358,272
|
$
|
1,371,815
|
$
|
1,298,816
|
||||||
Gross profit
|
388,826
|
382,539
|
376,931
|
|||||||||
Gross profit %
|
28.6
|
%
|
27.9
|
%
|
29
|
%
|
||||||
Operating income
|
92,677
|
104,135
|
128,999
|
|||||||||
Operating income %
|
6.8
|
%
|
7.6
|
%
|
9.9
|
%
|
||||||
Earnings from continuing operations before income taxes
|
81,716
|
98,332
|
130,465
|
|||||||||
Provision for income taxes
|
18,368
|
25,206
|
31,044
|
|||||||||
Earnings from continuing operations
|
63,348
|
73,126
|
99,421
|
|||||||||
Loss from discontinued operations, net of income taxes
|
(28,996
|
)
|
(17,691
|
)
|
(8,467
|
)
|
||||||
Net earnings
|
34,352
|
55,435
|
90,954
|
|||||||||
Net earnings attributable to noncontrolling interest
|
204
|
84
|
68
|
|||||||||
Net earnings attributable to SMP
|
34,148
|
55,351
|
90,886
|
|||||||||
Per share data attributable to SMP – Diluted:
|
||||||||||||
Earnings from continuing operations
|
$
|
2.85
|
$
|
3.30
|
$
|
4.39
|
||||||
Discontinued operations
|
(1.31
|
)
|
(0.80
|
)
|
(0.37
|
)
|
||||||
Net earnings per common share
|
$
|
1.54
|
$
|
2.50
|
$
|
4.02
|
• |
lower sales in our Vehicle Control operating segment reflecting the impact of lower sales to a customer that filed for bankruptcy in the first quarter, as well as the negative impact of lower customer pipeline orders and softer fourth
quarter sales,
|
• |
lower sales in our Temperature Control operating segment reflecting the impact of a slow start to the season caused by a rainy spring and cool early summer temperatures across key markets. Although customer demand and net sales
increased significantly in the third quarter of 2023 as summer temperatures increased, the strong third quarter 2023 net sales were not enough to offset the slow start to the season, and
|
• |
strong 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 newly created segment.
|
Year Ended December 31,
|
||||||||
2023
|
2022
|
|||||||
Vehicle Control
|
||||||||
Engine Management (Ignition, Emissions and Fuel Delivery)
|
$
|
450,180
|
$
|
454,571
|
||||
Electrical and Safety
|
221,782
|
230,487
|
||||||
Wire Sets and Other
|
65,970
|
65,513
|
||||||
Total Vehicle Control
|
737,932
|
750,571
|
||||||
Temperature Control
|
||||||||
AC System Components
|
237,756
|
245,484
|
||||||
Other Thermal Components
|
99,998
|
105,753
|
||||||
Total Temperature Control
|
337,754
|
351,237
|
||||||
Engineered Solutions
|
||||||||
Commercial Vehicle
|
83,025
|
80,275
|
||||||
Construction/Agriculture
|
43,402
|
42,385
|
||||||
Light Vehicle
|
92,759
|
91,533
|
||||||
All Other
|
63,400
|
55,814
|
||||||
Total Engineered Solutions
|
282,586
|
270,007
|
||||||
Other
|
—
|
—
|
||||||
Total
|
$
|
1,358,272
|
$
|
1,371,815
|
Year Ended
December 31,
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
2023
|
||||||||||||||||||||
Net sales
|
$
|
737,932
|
$
|
337,754
|
$
|
282,586
|
$
|
—
|
$
|
1,358,272
|
||||||||||
Gross margins
|
238,215
|
95,827
|
54,784
|
—
|
388,826
|
|||||||||||||||
Gross margin percentage
|
32.3
|
%
|
28.4
|
%
|
19.4
|
%
|
—
|
28.6
|
%
|
|||||||||||
2022
|
||||||||||||||||||||
Net sales
|
$
|
750,571
|
$
|
351,237
|
$
|
270,007
|
$
|
—
|
$
|
1,371,815
|
||||||||||
Gross margins
|
232,267
|
98,913
|
51,359
|
—
|
382,539
|
|||||||||||||||
Gross margin percentage
|
30.9
|
%
|
28.2
|
%
|
19
|
%
|
—
|
27.9
|
%
|
Year Ended December 31,
|
||||||||
2022
|
2021
|
|||||||
Vehicle Control
|
||||||||
Engine Management (Ignition, Emissions and Fuel Delivery)
|
$
|
454,571
|
$
|
444,196
|
||||
Electrical and Safety
|
230,487
|
224,520
|
||||||
Wire Sets and Other
|
65,513
|
68,715
|
||||||
Total Vehicle Control
|
750,571
|
737,431
|
||||||
Temperature Control
|
||||||||
AC System Components
|
245,484
|
231,466
|
||||||
Other Thermal Components
|
105,753
|
92,614
|
||||||
Total Temperature Control
|
351,237
|
324,080
|
||||||
Engineered Solutions
|
||||||||
Commercial Vehicle
|
80,275
|
76,066
|
||||||
Construction/Agriculture
|
42,385
|
33,220
|
||||||
Light Vehicle
|
91,533
|
86,440
|
||||||
All Other
|
55,814
|
41,579
|
||||||
Total Engineered Solutions
|
270,007
|
237,305
|
||||||
Other
|
—
|
—
|
||||||
Total
|
$
|
1,371,815
|
$
|
1,298,816
|
Year Ended
December 31,
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions |
Other
|
Total
|
|||||||||||||||
2022
|
||||||||||||||||||||
Net sales
|
$
|
750,571
|
$
|
351,237
|
$
|
270,007
|
$
|
—
|
$
|
1,371,815
|
||||||||||
Gross margins
|
232,267
|
98,913
|
51,359
|
—
|
382,539
|
|||||||||||||||
Gross margin percentage
|
30.9
|
%
|
28.2
|
%
|
19
|
%
|
—
|
27.9
|
%
|
|||||||||||
2021
|
||||||||||||||||||||
Net sales
|
$
|
737,431
|
$
|
324,080
|
$
|
237,305
|
$
|
—
|
$
|
1,298,816
|
||||||||||
Gross margins
|
238,790
|
91,738
|
46,403
|
—
|
376,931
|
|||||||||||||||
Gross margin percentage
|
32.4
|
%
|
28.3
|
%
|
19.6
|
%
|
—
|
29
|
%
|
December 31,
|
||||||||
(In thousands)
|
2023
|
2022
|
||||||
Operating cash flows
|
$
|
144,260
|
$
|
(27,533
|
)
|
|||
Total debt
|
$
|
156,211
|
$
|
239,620
|
||||
Cash and cash equivalents
|
32,526
|
21,150
|
||||||
Net debt
|
$
|
123,685
|
$
|
218,470
|
||||
Remaining borrowing capacity
|
$
|
334,180
|
$
|
255,631
|
||||
Total liquidity
|
366,706
|
276,781
|
ITEM 7A. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
Year Ended December 31,
|
|||||||||||
|
2023
|
2022
|
2021
|
|||||||||
|
(Dollars in thousands,
except share and per share data)
|
|||||||||||
Net sales
|
$
|
|
$
|
|
$
|
|
||||||
Cost of sales
|
|
|
|
|||||||||
Gross profit
|
|
|
|
|||||||||
Selling, general and administrative expenses
|
|
|
|
|||||||||
Restructuring and integration expenses
|
|
|
|
|||||||||
Other income, net
|
|
|
|
|||||||||
Operating income
|
|
|
|
|||||||||
Other non-operating income, net
|
|
|
|
|||||||||
Interest expense
|
|
|
|
|||||||||
Earnings from continuing operations before income taxes
|
|
|
|
|||||||||
Provision for income taxes
|
|
|
|
|||||||||
Earnings from continuing operations
|
|
|
|
|||||||||
Loss from discontinued operations, net of income tax benefit of $
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net earnings
|
|
|
|
|||||||||
Net earnings attributable to noncontrolling interest |
||||||||||||
Net earnings attributable to SMP (a)
|
$ | $ | $ | |||||||||
Net earnings attributable to SMP |
||||||||||||
Earnings from continuing operations
|
$ | $ | $ | |||||||||
Discontinued operations
|
( |
) | ( |
) | ( |
) | ||||||
Total |
$ | $ | $ | |||||||||
Per share data attributable to SMP |
||||||||||||
Net earnings per common share – Basic:
|
||||||||||||
Earnings from continuing operations
|
$
|
|
$
|
|
$
|
|
||||||
Discontinued operations
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net earnings per common share – Basic
|
$
|
|
$
|
|
$
|
|
||||||
Net earnings per common share – Diluted:
|
||||||||||||
Earnings from continuing operations
|
$
|
|
$
|
|
$
|
|
||||||
Discontinued operations
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net earnings per common share – Diluted
|
$
|
|
$
|
|
$
|
|
||||||
Dividend declared per share
|
$
|
|
$
|
|
$
|
|
||||||
Average number of common shares
|
|
|
|
|||||||||
Average number of common shares and dilutive common shares
|
|
|
|
Year Ended December 31, | ||||||||||||
2023
|
2022
|
2021
|
||||||||||
(In thousands)
|
||||||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||
Foreign currency translation adjustments
|
|
(
|
)
|
(
|
)
|
|||||||
Derivative instruments
|
( |
) | ||||||||||
Pension and postretirement plans
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total other comprehensive income (loss), net of tax
|
|
(
|
)
|
(
|
)
|
|||||||
Total comprehensive income
|
|
|
|
|||||||||
Comprehensive income (loss) attributable to noncontrolling interest, net of tax:
|
||||||||||||
Net earnings
|
|
|
|
|||||||||
Foreign currency translation adjustments
|
|
(
|
)
|
|
||||||||
Comprehensive income (loss) attributable to noncontrolling interest, net of tax
|
|
(
|
)
|
|
||||||||
Comprehensive income attributable to SMP
|
$
|
|
$
|
|
$
|
|
|
December 31,
|
|||||||
|
2023
|
2022
|
||||||
|
(Dollars in thousands,
except share data)
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Accounts receivable, less allowances for discounts and expected credit losses of $
|
|
|
||||||
Inventories
|
|
|
||||||
Unreturned customer inventories
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
|
||||||||
Property, plant and equipment, net
|
|
|
||||||
Operating lease right-of-use assets
|
|
|
||||||
Goodwill
|
|
|
||||||
Other intangibles, net
|
|
|
||||||
Deferred incomes taxes
|
|
|
||||||
Investments in unconsolidated affiliates
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current portion of revolving credit facility
|
$
|
|
$
|
|
||||
Current portion of term loan and other debt
|
|
|
||||||
Accounts payable
|
|
|
||||||
Sundry payables and accrued expenses
|
|
|
||||||
Accrued customer returns
|
|
|
||||||
Accrued core liability
|
|
|
||||||
Accrued rebates
|
|
|
||||||
Payroll and commissions
|
|
|
||||||
Total current liabilities
|
|
|
||||||
|
||||||||
Long-term debt
|
|
|
||||||
Noncurrent operating lease liabilities
|
|
|
||||||
Other accrued liabilities
|
|
|
||||||
Accrued asbestos liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Commitments and contingencies
|
||||||||
|
||||||||
Stockholders’ equity:
|
||||||||
Common Stock - par value $
|
||||||||
Authorized
|
|
|
||||||
Capital in excess of par value
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income
|
(
|
)
|
(
|
)
|
||||
Treasury stock - at cost (
|
(
|
)
|
(
|
)
|
||||
Total SMP stockholders’ equity
|
|
|
||||||
Noncontrolling interest
|
||||||||
Total stockholders’ equity
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
|
Year Ended December 31,
|
|||||||||||
|
2023
|
2022
|
2021
|
|||||||||
|
(In thousands)
|
|||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
|
||||||||||||
Depreciation and amortization
|
|
|
|
|||||||||
Amortization of deferred financing cost
|
|
|
|
|||||||||
Increase (decrease) to allowance for expected credit losses
|
|
(
|
)
|
|
||||||||
Increase (decrease) to inventory reserves
|
|
|
(
|
)
|
||||||||
Customer bankruptcy charge
|
||||||||||||
Equity income from joint ventures
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Employee Stock Ownership Plan allocation
|
|
|
|
|||||||||
Stock-based compensation
|
|
|
|
|||||||||
(Increase) in deferred income taxes
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Increase in tax valuation allowance
|
|
|
|
|||||||||
Loss on discontinued operations, net of tax
|
|
|
|
|||||||||
Change in assets and liabilities:
|
||||||||||||
Decrease in accounts receivable
|
|
|
|
|||||||||
(Increase) decrease in inventories
|
|
(
|
)
|
(
|
)
|
|||||||
(Increase) in prepaid expenses and other current assets
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Increase (decrease) in accounts payable
|
|
(
|
)
|
|
||||||||
Increase (decrease) in sundry payables and accrued expenses
|
(
|
)
|
(
|
)
|
|
|||||||
Net changes in other assets and liabilities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net cash provided by (used in) operating activities
|
|
(
|
)
|
|
||||||||
|
||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Acquisitions of and investments in businesses
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Cash acquired in step acquisition |
||||||||||||
Capital expenditures
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Other investing activities
|
|
|
|
|||||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Borrowings under term loan |
||||||||||||
Repayments of term loan |
( |
) | ( |
) | ||||||||
Net borrowings (repayments) under revolving credit facilities
|
(
|
)
|
|
|
||||||||
Net borrowings (repayments) of other debt and lease obligations
|
(
|
)
|
(
|
)
|
|
|||||||
Purchase of treasury stock
|
|
(
|
)
|
(
|
)
|
|||||||
Payments of debt issuance costs |
( |
) | ||||||||||
Increase (decrease) in overdraft balances
|
(
|
)
|
(
|
)
|
|
|||||||
Dividends paid |
( |
) | ( |
) | ( |
) | ||||||
Dividends paid to noncontrolling interest
|
(
|
)
|
|
(
|
)
|
|||||||
Net cash provided by (used in) financing activities
|
(
|
)
|
|
|
||||||||
Effect of exchange rate changes on cash
|
|
(
|
)
|
(
|
)
|
|||||||
Net increase (decrease) in cash and cash equivalents
|
|
(
|
)
|
|
||||||||
CASH AND CASH EQUIVALENTS at beginning of year
|
|
|
|
|||||||||
CASH AND CASH EQUIVALENTS at end of year
|
$
|
|
$
|
|
$
|
|
||||||
|
||||||||||||
Supplemental disclosure of cash flow information:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$
|
|
$
|
|
$
|
|
||||||
Income taxes
|
$
|
|
$
|
|
$
|
|
|
Common
Stock
|
Capital in
Excess of Par
Value
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total SMP
|
Non-
controlling
Interest
|
Total
|
||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2020
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$ | $ |
$
|
|
||||||||||||||||
Noncontrolling interest in business acquired
|
||||||||||||||||||||||||||||||||
Net earnings
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Other comprehensive loss, net of tax |
|
|
|
(
|
)
|
|
( |
) |
(
|
)
|
||||||||||||||||||||||
Cash dividends paid ($
|
|
|
(
|
)
|
|
|
( |
) |
(
|
)
|
||||||||||||||||||||||
Purchase of treasury stock
|
|
|
|
|
(
|
)
|
( |
) |
(
|
)
|
||||||||||||||||||||||
Dividends paid to noncontrolling interest
|
( |
) | ( |
) | ||||||||||||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Employee Stock Ownership Plan
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2021
|
|
|
|
(
|
)
|
(
|
)
|
|
||||||||||||||||||||||||
Net earnings
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
(
|
)
|
|
( |
) | ( |
) |
(
|
)
|
||||||||||||||||||||
Cash dividends paid ($
|
|
|
(
|
)
|
|
|
( |
) |
(
|
)
|
||||||||||||||||||||||
Purchase of treasury stock
|
|
|
|
|
(
|
)
|
( |
) |
(
|
)
|
||||||||||||||||||||||
Stock-based compensation
|
|
(
|
)
|
|
|
|
|
|||||||||||||||||||||||||
Employee Stock Ownership Plan
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2022
|
|
|
|
(
|
)
|
(
|
)
|
|
||||||||||||||||||||||||
Noncontrolling interest in step acquisition
|
||||||||||||||||||||||||||||||||
Net earnings
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Cash dividends paid ($
|
|
|
(
|
)
|
|
|
( |
) |
(
|
)
|
||||||||||||||||||||||
Dividends paid to noncontrolling interest
|
( |
) | ( |
) | ||||||||||||||||||||||||||||
Stock-based compensation
|
|
(
|
)
|
|
|
|
|
|||||||||||||||||||||||||
Employee Stock Ownership Plan
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2023
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$ | $ |
$
|
|
Estimated Life
|
|
Buildings
|
|
Building improvements
|
|
Machinery and equipment
|
|
Tools, dies and auxiliary equipment
|
|
Furniture and fixtures
|
|
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 income effective tax rate reconciliation disclosures to include disclosure of (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 interim and annual disclosures of income taxes paid to include the disaggregation by federal, state and foreign jurisdictions, with expanded disclosures required annually.
|
The ASU is effective for annual reporting periods beginning after December 15, 2024, which for us is January 1, 2025, with full retrospective
application required to all prior periods presented. Early adoption is permitted.
|
The new standard will require expanding our interim and 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 March 31,
2025.
|
Total purchase consideration (1)
|
$
|
|
||||||
Assets acquired and liabilities assumed:
|
||||||||
Cash and cash equivalents
|
$
|
|
||||||
Receivables
|
|
|||||||
Inventory
|
|
|||||||
Other current assets
|
|
|||||||
Property, plant and equipment, net
|
|
|||||||
Operating lease right-of-use assets
|
|
|||||||
Intangible assets (2)
|
|
|||||||
Goodwill
|
|
|||||||
Long term investments and other assets
|
|
|||||||
Current liabilities
|
(
|
)
|
||||||
Noncurrent operating lease liabilities
|
(
|
)
|
||||||
Subtotal
|
|
|||||||
Fair value of acquired noncontrolling interest
|
(
|
)
|
||||||
Total purchase consideration allocated to net assets acquired
|
$
|
|
(1) |
|
(2) |
|
Purchase price
|
$
|
|
||||||
Assets acquired and liabilities assumed:
|
||||||||
Receivables
|
$
|
|
||||||
Inventory
|
|
|||||||
Other current assets (1)
|
|
|||||||
Property, plant and equipment, net
|
|
|||||||
Operating lease right-of-use assets
|
|
|||||||
Intangible assets
|
|
|||||||
Goodwill
|
|
|||||||
Current liabilities
|
(
|
)
|
||||||
Noncurrent operating lease liabilities
|
(
|
)
|
||||||
Deferred income taxes
|
(
|
)
|
||||||
Net assets acquired
|
$
|
|
(1) |
|
|
Workforce
Reduction
|
Other Exit
Costs
|
Total
|
|||||||||
Exit activity
liability at December 31, 2021
|
$
|
|
$
|
|
$
|
|
||||||
Restructuring
and integration costs:
|
||||||||||||
Amounts
provided for during 2022 (1)
|
|
|
|
|||||||||
Cash payments
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Reclassification of environmental and other liabilities | ( |
) | ( |
) | ( |
) | ||||||
Exit activity
liability at December 31, 2022
|
$
|
|
$
|
|
$
|
|
||||||
Restructuring
and integration costs:
|
||||||||||||
Amounts
provided for during 2023 (1) (2)
|
|
|
|
|||||||||
Cash payments
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Reclassification of environmental liability | ( |
) | ( |
) | ||||||||
Foreign currency exchange rate changes |
||||||||||||
Exit activity
liability at December 31, 2023
|
$
|
|
$
|
|
$
|
|
(1) |
|
(2) |
|
December 31, | ||||||||
2023
|
2022
|
|||||||
|
(In thousands)
|
|||||||
Finished goods
|
$
|
|
$
|
|
||||
Work-in-process
|
|
|
||||||
Raw materials
|
|
|
||||||
Subtotal
|
|
|
||||||
Unreturned customer inventories
|
|
|
||||||
Total inventories
|
$
|
|
$
|
|
December 31,
|
||||||||
|
2023
|
2022
|
||||||
|
(In thousands)
|
|||||||
Land, buildings and improvements
|
$
|
|
$
|
|
||||
Machinery and equipment
|
|
|
||||||
Tools, dies and auxiliary equipment
|
|
|
||||||
Furniture and fixtures
|
|
|
||||||
Leasehold improvements
|
|
|
||||||
Construction-in-progress
|
|
|
||||||
Total property, plant and equipment
|
|
|
||||||
Less accumulated depreciation
|
|
|
||||||
Total property, plant and equipment, net
|
$
|
|
$
|
|
Balance Sheet Information
|
December 31,
|
|||||||
Assets
|
2023 | 2022 | ||||||
Operating lease right-of-use assets
|
$
|
|
$
|
|
||||
|
||||||||
Liabilities
|
||||||||
Sundry payables and accrued expenses
|
$
|
|
$
|
|
||||
Noncurrent operating lease liabilities
|
|
|
||||||
Total operating lease liabilities
|
$
|
|
$
|
|
||||
|
||||||||
Weighted Average Remaining Lease Term
|
||||||||
Operating leases
|
|
|
||||||
|
||||||||
Weighted Average Discount Rate
|
||||||||
Operating leases
|
|
%
|
|
%
|
Year Ended, December 31,
|
||||||||
Expense and Cash Flow Information
|
2023
|
2022
|
||||||
Lease Expense
|
||||||||
Operating lease expense (a)
|
$
|
|
$
|
|
||||
Supplemental Cash Flow Information
|
||||||||
Cash Paid for the amounts included in the measurement of lease liabilities:
|
||||||||
Operating cash flows from operating leases
|
$
|
|
$
|
|
||||
Right-of-use assets obtained in exchange for new lease obligations:
|
||||||||
Operating leases (b)
|
$
|
|
$
|
|
(a) |
|
|
(b)
|
|
2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028
|
|
|||
Thereafter
|
|
|||
Total lease payments
|
$
|
|
||
Less: Interest
|
(
|
)
|
||
Present value of lease liabilities
|
$
|
|
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Total
|
||||||||||||
Balance as of December 31, 2021:
|
||||||||||||||||
Goodwill
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||
Accumulated impairment losses
|
(
|
)
|
|
(
|
)
|
|||||||||||
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||
Activity in 2022
|
||||||||||||||||
Acquisition of Kade
|
||||||||||||||||
Foreign currency exchange rate change
|
(
|
)
|
|
( |
) |
(
|
)
|
|||||||||
Balance as of December 31, 2022:
|
||||||||||||||||
Goodwill
|
|
|
|
|||||||||||||
Accumulated impairment losses
|
( |
) | ( |
) | ||||||||||||
$ | $ | $ | $ | |||||||||||||
Activity in 2023
|
||||||||||||||||
Step acquisition of Gwo Yng |
||||||||||||||||
Foreign currency exchange rate change | ||||||||||||||||
Balance as of December 31, 2023: | ||||||||||||||||
Goodwill
|
||||||||||||||||
Accumulated impairment losses
|
( |
) | ( |
) | ||||||||||||
|
$
|
|
$
|
|
$ |
$
|
|
December 31,
|
||||||||
2023
|
2022
|
|||||||
(In thousands)
|
||||||||
Customer relationships
|
$
|
|
$
|
|
||||
Patents, developed technology and intellectual property
|
||||||||
Trademarks and trade names
|
|
|
||||||
Non-compete agreements
|
|
|
||||||
Supply agreements
|
|
|
||||||
Leaseholds
|
|
|
||||||
Total acquired intangible assets
|
|
|
||||||
Less accumulated amortization (1)
|
(
|
)
|
(
|
)
|
||||
Net acquired intangible assets
|
$
|
|
$
|
|
(3) |
|
December 31,
|
||||||||
|
2023
|
2022
|
||||||
|
(In thousands)
|
|||||||
Foshan FGD SMP Automotive Compressor Co. Ltd
|
$
|
|
$
|
|
||||
Foshan Che Yijia New Energy Technology Co., Ltd.
|
|
|
||||||
Orange Electronic Co. Ltd
|
|
|
||||||
Foshan GWO YNG SMP Vehicle Climate Control & Cooling Products Co. Ltd. |
||||||||
Total
|
$
|
|
$
|
|
December 31,
|
||||||||
|
2023
|
2022
|
||||||
|
(In thousands)
|
|||||||
Deferred compensation
|
$
|
|
$
|
|
||||
Long-term investments | ||||||||
Noncurrent portion of interest rate swap fair value | ||||||||
Deferred financing costs, net
|
|
|
||||||
Other
|
|
|
||||||
Total other assets, net
|
$
|
|
$
|
|
|
December 31,
|
|||||||
|
2023
|
2022
|
||||||
|
(In thousands)
|
|||||||
Credit facility – term loan due 2027
|
$
|
|
$
|
|
||||
Credit facility – revolver due 2027 |
||||||||
Other
|
|
|
||||||
Total debt
|
$
|
|
$
|
|
||||
Current maturities of debt
|
$
|
|
$
|
|
||||
Long-term debt
|
|
|
||||||
Total debt
|
$
|
|
$
|
|
Revolving Credit Facility
|
Term Loan Facility
|
Polish Overdraft Facility and Other Debt
|
Total
|
|||||||||||||
2024
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
2025 |
|
|
|
|
||||||||||||
2026
|
|
|
|
|
||||||||||||
2027
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Less: current maturities
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Long-term debt
|
$
|
|
$
|
|
$
|
|
$
|
|
Foreign
Currency
Translation
|
Unrecognized
Postretirement
Benefit Costs
(Credit)
|
Unrealized
derivative
gains
(losses)
|
Total
|
||||||||||||||
Balance at December 31, 2021 attributable to SMP
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||||
Other comprehensive income before reclassifications
|
(
|
)
|
|
|
(1) |
(
|
)
|
||||||||||
Amounts reclassified from accumulated other comprehensive income
|
|
(
|
)
|
|
|
||||||||||||
Other comprehensive income, net
|
(
|
)
|
(
|
)
|
|
(
|
)
|
||||||||||
Balance at December 31, 2022 attributable to SMP
|
$ | ( |
) | $ | $ | $ | ( |
) | |||||||||
Other comprehensive income before reclassifications
|
(1) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income
|
( |
) | ( |
) | ( |
) | |||||||||||
Other comprehensive income, net
|
( |
) | ( |
) | |||||||||||||
Balance at December 31, 2023 attributable to SMP
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
(1)
|
|
|
Year Ended December 31,
|
|||||||
Details About Accumulated Other Comprehensive Income Components
|
2023
|
2022
|
||||||
Derivative cash flow hedge:
|
||||||||
Unrecognized gain (loss) (1)
|
$
|
(
|
)
|
$
|
|
|||
Postretirement Benefit Plans:
|
||||||||
Unrecognized gain (loss) (2)
|
(
|
)
|
(
|
)
|
||||
Total before income tax
|
(
|
)
|
|
|||||
Income tax expense (benefit)
|
(
|
)
|
(
|
)
|
||||
Total reclassifications attributable to SMP
|
$
|
(
|
)
|
$
|
|
(1)
|
|
(2)
|
|
|
Shares
|
Weighted Average
Grant Date Fair
Value per Share
|
||||||
Balance at December 31, 2021
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Performance Shares Target Adjustment | ||||||||
Forfeited
|
(
|
)
|
|
|||||
Balance at December 31, 2022
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Performance Shares Target Adjustment
|
||||||||
Forfeited
|
(
|
)
|
|
|||||
Balance at December 31, 2023
|
|
$
|
|
|
U.S. Defined
Contribution
|
|||
Year ended December 31,
|
||||
2023
|
$
|
|
||
2022
|
|
|||
2021
|
|
|
Year Ended December 31,
|
|||||||||||
|
2023
|
2022
|
2021
|
|||||||||
|
(In thousands)
|
|||||||||||
Interest and dividend income
|
$
|
|
$
|
|
$
|
|
||||||
Equity income from joint ventures
|
|
|
|
|||||||||
Gain (loss) on foreign exchange
|
(
|
)
|
|
(
|
)
|
|||||||
Other non-operating income, net
|
|
|
|
|||||||||
Total other non-operating income, net
|
$
|
|
$
|
|
$
|
|
December 31, 2023
|
December 31, 2022
|
||||||||||||||||
Fair Value
Hierarchy
|
Fair Value
|
Carrying
Amount
|
Fair Value
|
Carrying
Amount
|
|||||||||||||
Cash and cash equivalents (a)
|
LEVEL 1/2
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Deferred compensation
|
LEVEL 1
|
|
|
|
|
||||||||||||
Short term borrowings
|
LEVEL 1
|
|
|
|
|
||||||||||||
Long-term debt
|
LEVEL 1
|
|
|
|
|
||||||||||||
Cash flow interest rate swap
|
LEVEL 2
|
|
|
|
|
||||||||||||
Long-term investments
|
LEVEL 2 |
(a) | |
|
Year Ended December 31,
|
|||||||||||
|
2023
|
2022
|
2021
|
|||||||||
Current:
|
||||||||||||
Domestic
|
$
|
|
$
|
|
$
|
|
||||||
Foreign
|
|
|
|
|||||||||
Total current
|
|
|
|
|||||||||
|
||||||||||||
Deferred:
|
||||||||||||
Domestic
|
(
|
)
|
|
(
|
)
|
|||||||
Foreign
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total deferred
|
(
|
)
|
|
(
|
)
|
|||||||
Total income tax provision
|
$
|
|
$
|
|
$
|
|
|
Year Ended December 31,
|
|||||||||||
|
2023
|
2022
|
2021
|
|||||||||
U.S. Federal income tax rate of
|
$
|
|
$
|
|
$
|
|
||||||
Increase (decrease) in tax rate resulting from:
|
||||||||||||
State and local income taxes, net of federal income tax benefit
|
|
|
|
|||||||||
Change in valuation allowance
|
|
|
|
|||||||||
Income tax (benefit) attributable to foreign income
|
|
(
|
)
|
(
|
)
|
|||||||
Other non-deductible items, net
|
(
|
)
|
|
(
|
)
|
|||||||
Provision for income taxes
|
$
|
|
$
|
|
$
|
|
|
December 31,
|
|||||||
|
2023
|
2022
|
||||||
Deferred tax assets:
|
||||||||
Inventories
|
$
|
|
$
|
|
||||
Allowance for customer returns
|
|
|
||||||
Accrued asbestos liabilities
|
|
|
||||||
Accrued salaries and benefits
|
|
|
||||||
Tax credit and NOL carryforwards
|
|
|
||||||
Allowance for expected credit losses
|
||||||||
Other
|
|
|
||||||
|
|
|
||||||
Valuation allowance
|
(
|
)
|
(
|
)
|
||||
Total deferred tax assets
|
|
|
||||||
Deferred tax liabilities:
|
||||||||
Intangible assets acquired, net of amortization
|
||||||||
Depreciation
|
|
|
||||||
Interest rate swap agreement
|
||||||||
Other
|
|
|
||||||
Total deferred tax liabilities
|
|
|
||||||
|
||||||||
Net deferred tax assets
|
$
|
|
$
|
|
|
Year Ended December 31,
|
|||||||||||
|
2023
|
2022
|
2021
|
|||||||||
Net Earnings Attributable to SMP -
|
||||||||||||
Earnings from continuing operations
|
$
|
|
$
|
|
$
|
|
||||||
Loss from discontinued operations
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net earnings attributable to SMP
|
$
|
|
$
|
|
$
|
|
||||||
|
||||||||||||
Basic Net Earnings Per Common Share Attributable to SMP -
|
||||||||||||
Earnings from continuing operations per common share
|
$
|
|
$
|
|
$
|
|
||||||
Loss from discontinued operations per common share
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net earnings per common share attributable to SMP
|
$
|
|
$
|
|
$
|
|
||||||
|
||||||||||||
Weighted average common shares outstanding
|
||||||||||||
2023 |
2022 |
2021 |
||||||||||
Diluted Net Earnings Per Common Share Attributable to SMP -
|
||||||||||||
Earnings from continuing operations per common share
|
$
|
|
$
|
|
$
|
|
||||||
Loss from discontinued operations per common share
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net earnings per common share attributable to SMP
|
$
|
|
$
|
|
$
|
|
||||||
|
||||||||||||
Weighted average common shares outstanding
|
|
|
|
|||||||||
Plus incremental shares from assumed conversions:
|
||||||||||||
Dilutive effect of restricted stock and performance-based stock
|
|
|
|
|||||||||
Weighted average common shares outstanding – Diluted
|
|
|
|
|
2023
|
2022
|
2021
|
|||||||||
Restricted and performance shares
|
|
|
|
|
Year Ended December 31,
|
|||||||||||
|
2023
|
2022
|
2021
|
|||||||||
Net sales (a):
|
||||||||||||
Vehicle Control
|
$ |
$ |
$ |
|||||||||
Temperature Control
|
|
|
|
|
|
|
||||||
Engineered Solutions
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total net sales
|
$
|
|
$
|
|
$
|
|
||||||
Depreciation and Amortization:
|
||||||||||||
Vehicle Control
|
$ |
$ |
$ |
|||||||||
Temperature Control
|
|
|
|
|
|
|||||||
Engineered Solutions
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total depreciation and amortization
|
$
|
|
$
|
|
$
|
|
||||||
Operating income (loss):
|
||||||||||||
Vehicle Control
|
$ |
|
$ |
$ |
||||||||
Temperature Control
|
|
|
|
|
|
|
||||||
Engineered Solutions
|
|
|
|
|||||||||
Other
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total operating income
|
$
|
|
$
|
|
$
|
|
||||||
Investment in unconsolidated affiliates:
|
||||||||||||
Vehicle Control
|
$ |
$ |
$ |
|||||||||
Temperature Control
|
|
|
|
|
|
|
||||||
Engineered Solutions
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total investment in unconsolidated affiliates
|
$
|
|
$
|
|
$
|
|
||||||
Capital expenditures:
|
||||||||||||
Vehicle Control
|
$ |
$ |
$ |
|||||||||
Temperature Control
|
|
|
|
|
|
|
||||||
Engineered Solutions
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total capital expenditures
|
$
|
|
$
|
|
$
|
|
||||||
Total assets:
|
||||||||||||
Vehicle Control
|
$ |
$ |
$ |
|||||||||
Temperature Control
|
|
|
|
|
|
|
||||||
Engineered Solutions
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
(a)
|
|
|
Year Ended December 31,
|
|||||||||||
|
2023
|
2022
|
2021
|
|||||||||
|
(In thousands)
|
|||||||||||
Operating income
|
$
|
|
$
|
|
$
|
|
||||||
Other non-operating income, net
|
|
|
|
|||||||||
Interest expense
|
|
|
|
|||||||||
Earnings from continuing operations before income taxes
|
|
|
|
|||||||||
Provision for income taxes
|
|
|
|
|||||||||
Earnings from continuing operations
|
|
|
|
|||||||||
Discontinued operations, net of tax
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
December 31,
|
||||||||||||
|
2023
|
2022
|
2021
|
|||||||||
Long-lived assets (a):
|
(In thousands)
|
|||||||||||
United States
|
$
|
|
$
|
|
$
|
|
||||||
Asia
|
|
|
|
|||||||||
Europe
|
|
|
|
|||||||||
Mexico
|
|
|
|
|||||||||
Canada
|
|
|
|
|||||||||
Total long-lived assets
|
$
|
|
$
|
|
$
|
|
(a) |
|
Year Ended December 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
Vehicle Control
|
||||||||||||
Engine Management (Ignition, Emissions and Fuel Delivery)
|
$
|
|
$
|
|
$
|
|
||||||
Electrical and Safety
|
|
|
|
|||||||||
Wire Sets and Other
|
|
|
|
|||||||||
Total Vehicle Control
|
|
|
|
|||||||||
Temperature Control
|
||||||||||||
AC System Components
|
|
|
|
|||||||||
Other Thermal Components
|
|
|
|
|||||||||
Total Temperature Control
|
|
|
|
|||||||||
Engineered Solutions
|
||||||||||||
Commercial Vehicle
|
|
|
|
|||||||||
Construction/Agriculture
|
|
|
|
|||||||||
Light Vehicle
|
|
|
|
|||||||||
All Other
|
|
|
|
|||||||||
Total Engineered Solutions
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
Year Ended December 31, 2023
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Canada
|
|
|
|
|
|
|||||||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Mexico
|
|
|
|
|
|
|||||||||||||||
Asia
|
|
|
|
|
|
|||||||||||||||
Other foreign
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Year Ended December 31, 2022
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Canada
|
|
|
|
|
|
|||||||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Mexico
|
|
|
|
|
|
|||||||||||||||
Asia
|
|
|
|
|
|
|||||||||||||||
Other foreign
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Year Ended December 31, 2021
|
Vehicle
Control
|
Temperature
Control
|
Engineered
Solutions
|
Other
|
Total
|
|||||||||||||||
Geographic Area:
|
||||||||||||||||||||
United States
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Canada
|
|
|
|
|
|
|||||||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Mexico
|
|
|
|
|
|
|||||||||||||||
Asia
|
|
|
|
|
||||||||||||||||
Other foreign
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Total (1)
|
Real Estate
|
Other
|
|||||||||
2023
|
$
|
|
$
|
|
$
|
|
||||||
2022
|
|
|
|
|||||||||
2021
|
|
|
|
(1) |
Includes
expenses of approximately $
|
|
December 31,
|
|||||||
|
2023
|
2022
|
||||||
|
(In thousands)
|
|||||||
Balance, beginning of period
|
$
|
|
$
|
|
||||
Liabilities accrued for current year sales
|
|
|
||||||
Settlements of warranty claims
|
(
|
)
|
(
|
)
|
||||
Balance, end of period
|
$
|
|
$
|
|
ITEM 9. |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A. |
CONTROLS AND PROCEDURES
|
(a) |
Evaluation of Disclosure Controls and Procedures.
|
(b) |
Management’s Report on Internal Control Over Financial Reporting.
|
(c) |
Attestation Report of Independent Registered Public Accounting Firm.
|
(d) |
Changes in Internal Control Over Financial Reporting.
|
ITEM 9C. |
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
|
ITEM 10. |
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11. |
EXECUTIVE COMPENSATION
|
ITEM 12. |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13. |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 15. |
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
(a)
|
(1)
|
The Index to Consolidated Financial Statements of the Registrant under Item 8 of this Report is incorporated herein by reference as the list of Financial Statements required as part of this Report.
|
(2)
|
The following financial schedule and related report for the years 2023, 2022 and 2021 is submitted herewith:
|
|
Schedule II - Valuation and Qualifying Accounts
|
||
All other schedules are omitted because they are not required, not applicable or the information is included in the financial statements or notes thereto.
|
||
(3)
|
Exhibits.
|
|
The exhibit list in the Exhibit Index is incorporated by reference as the list of exhibits required as part of this Report.
|
Exhibit
Number
|
|
3.1
|
|
3.2
|
|
3.3
|
|
10.1
|
|
10.2
|
|
10.3
|
|
10.4
|
|
10.5
|
|
10.6
|
|
10.7
|
|
10.8
|
|
10.9
|
Exhibit
Number
|
|
10.10
|
|
10.11
|
|
10.12
|
|
10.13
|
|
21
|
|
23
|
|
24
|
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
97
|
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.”
|
STANDARD MOTOR PRODUCTS, INC.
|
||
(Registrant)
|
||
/s/ Eric P. Sills
|
||
Eric P. Sills
|
||
Chief Executive Officer and President
|
||
/s/ Nathan R. Iles
|
||
Nathan R. Iles
|
||
Chief Financial Officer
|
||
New York, New York
|
||
February 22, 2024
|
February 22, 2024
|
/s/ Eric P. Sills
|
|
Eric P. Sills
|
||
Chief Executive Officer and President
|
||
(Principal Executive Officer)
|
||
February 22, 2024
|
/s/ Nathan R. Iles
|
|
Nathan R. Iles
|
||
Chief Financial Officer
|
||
(Principal Financial and Accounting Officer)
|
||
February 22, 2024
|
/s/ James J. Burke
|
|
James J. Burke
|
||
Chief Operating Officer and Director
|
||
February 22, 2024
|
/s/ Alejandro C. Capparelli
|
|
Alejandro C. Capparelli, Director
|
||
February 22, 2024
|
/s/ Pamela Forbes Lieberman
|
|
Pamela Forbes Lieberman, Director
|
February 22, 2024
|
/s/ Patrick S. McClymont
|
|
Patrick S. McClymont, Director
|
||
February 22, 2024
|
/s/ Joseph W. McDonnell
|
|
Joseph W. McDonnell, Director
|
||
February 22, 2024
|
/s/ Alisa C. Norris
|
|
Alisa C. Norris, Director
|
||
February 22, 2024
|
/s/ Pamela S. Puryear, Ph.D.
|
|
Pamela S. Puryear, Director
|
|
Additions
|
|||||||||||||||||||
|
||||||||||||||||||||
Description
|
Balance at
beginning
of year
|
Charged to
costs and
expenses
|
Other
|
Deductions
|
Balance at
end of year
|
|||||||||||||||
|
||||||||||||||||||||
Year ended December 31, 2023:
|
||||||||||||||||||||
Allowance for expected credit losses
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Allowance for discounts
|
|
|
|
|
|
|||||||||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
|
||||||||||||||||||||
Allowance for sales returns
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Year ended December 31, 2022:
|
||||||||||||||||||||
Allowance for expected credit losses
|
$
|
|
$
|
|
(1) |
$
|
|
$
|
|
$
|
|
|||||||||
Allowance for discounts
|
|
|
|
|
|
|||||||||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
|
||||||||||||||||||||
Allowance for sales returns
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Year ended December 31, 2021:
|
||||||||||||||||||||
Allowance for expected credit losses
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Allowance for discounts
|
|
|
|
|
|
|||||||||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
|
||||||||||||||||||||
Allowance for sales returns
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|