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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements at Reporting Date

The Base and Additional Earn-outs were paid in cash during 2016, as discussed below in Contingent Consideration section.

(in thousands)		As of December 31, 2017
		Carrying Value				Fair Value
						Level 1				Level 2				Level 3
Weichai warrant liability		$	24,700			$	—			$	—			$	24,700
Contingent consideration		12				—				—				12

(in thousands)		As of December 31, 2016
		Carrying Value				Fair Value
						Level 1				Level 2				Level 3
Contingent consideration		$	38			$	—			$	—			$	38

(in thousands)		As of December 31, 2015
		Carrying Value				Fair Value (Restated)
		(Restated)				Level 1				Level 2				Level 3
Private placement warranty liability		$	1,482			$	—			$	—			$	1,482
Contingent consideration		8,717				—				—				8,717

(in thousands)		As of December 31, 2014
		Carrying Value				Fair Value (Restated)
		(Restated)				Level 1				Level 2				Level 3
Private placement warranty liability		$	11,036			$	—			$	—			$	11,036

(in thousands)		As of December 31, 2017
		Carrying Value				Fair Value
						Level 1				Level 2				Level 3
Wells Fargo revolving credit facility		$	37,055			$	—			$	37,055			$	—
Unsecured Senior Notes		55,000				—				—				50,000

(in thousands)		As of December 31, 2016
		Carrying Value				Fair Value
						Level 1				Level 2				Level 3
Wells Fargo revolving credit facility		$	12,774			$	—			$	12,774			$	—
Unsecured Senior Notes		55,000				—				—				49,800
TPG Term Loan		71,400				—				—				70,800

(in thousands)		As of December 31, 2015
		Carrying Value				Fair Value (Restated)
		(Restated)				Level 1				Level 2				Level 3
Wells Fargo revolving credit facility		$	97,299			$	—			$	97,299			$	—
Unsecured Senior Notes		55,000				—				—				55,000

(in thousands)		As of December 31, 2014
		Carrying Value				Fair Value (Restated)
		(Restated)				Level 1				Level 2				Level 3
Wells Fargo revolving credit facility		$	78,030			$	—			$	78,030			$	—
Wells Fargo Term Loan		4,028				—				4,028				—

Summary of Change in the Estimated Fair Value of Private Placement Warrants

The following table summarizes the change in the estimated fair value of the Company’s contingent consideration, primarily for Powertrain in 2016 and 2015 and for 3PI in 2014.

(in thousands)	For the Year Ended December 31,
	2017				2016				2015 (Restated)					2014 (Restated)
Balance at beginning of year	$	38			$	8,717			$	—				$	—
Initial estimate of contingent consideration liability	—				—				8,740					3,840
Increase (decrease) in value reflected in income 1	—				(230		)		(23		)			(3,840		)
Payment of contingent consideration 2	(26		)		(8,449		)		—			—		—
Balance at end of year	$	12			$	38			$	8,717				$	—
Less: Noncurrent portion	—				12				442					—
Short-term contingent consideration at end of year	$	12			$	26			$	8,275				$	—

1. Includes $0.1 million of interest on contingent consideration recorded in Interest expense on the Consolidated Statement of Operations.

2. Includes $0.1 million of cash paid in excess of the initial fair value estimate of contingent consideration at the time of the Powertrain acquisition and presented in “Other, net” within cash flows from operating activities in the Consolidated Statement of Cash Flows.

The following table summarizes changes in the estimated fair value of the Company’s warrant liability:

(in thousands)		As of December 31,
		2017				2016				2015				2014
										(Restated)				(Restated)
Balance at beginning of year		$	—			$	1,482			$	11,036			$	24,525
Exercise of private placement warrants		—				(69		)		(255		)		(7,320		)
Issuance of warrants		20,700				—				—				—
Increase (decrease) in value*		4,000				(1,413		)		(9,299		)		(6,169		)
Balance at end of year		$	24,700			$	—			$	1,482			$	11,036

* Loss (gain) related to the change in fair value of the warrants for each year are presented as “Loss (gain) from change in fair value of warrants” in the Company's Consolidated Statements of Operations.

Schedule of Inputs of the Black-Scholes Option Pricing Model

The inputs of the Black-Scholes option pricing model were as follows:

		As of December 31,
Assumptions		2015			2014
Closing price of the Common Stock		$18.25			$51.61
Exercise price		$13.00			$13.00
Estimated price volatility*		55	%		55	%
Contractual term		0.58 years			1.33 years

*    Represents the upper end of the range of implied volatility of publicly traded call options of benchmark companies.

The inputs of the Black-Scholes option pricing model were as follows:

Assumptions		December 31, 2017
Market value of the Common Stock		$7.50
Exercise price		varies
Risk-free interest rate		1.8	%
Estimated price volatility		95	%
Contractual term		1.0 year
Dividend yield		—

X

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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