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SUBSIDIARY GUARANTOR FINANCIAL INFORMATION

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

SUBSIDIARY GUARANTOR FINANCIAL INFORMATION

The senior secured notes are guaranteed by the following wholly-owned subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, and Titan Wheel Corporation of Illinois. The note guarantees are full and unconditional, joint and several obligations of the guarantors. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. See the indenture governing the senior secured notes incorporated by reference to the 2019 Form 10-K for additional information. The following condensed consolidating financial statements are presented using the equity method of accounting. Certain sales and marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries.

(Amounts in thousands)			Condensed Consolidating Statements of Operations For the Three Months Ended September 30, 2020
			Titan Intl., Inc. (Parent)						Guarantor Subsidiaries						Non-Guarantor Subsidiaries						Eliminations						Consolidated
Net sales			$	—					$	119,850					$	305,097					$	(120,175)					$	304,772
Cost of sales			202						108,642						284,786						(120,175)						273,455
Asset impairment			—						—						—						—						—
Gross (loss) profit			(202)						11,208						20,311						—						31,317
Selling, general and administrative expenses			5,180						2,593						25,678						—						33,451
Research and development expenses			209						769						1,262						—						2,240
Royalty expense			654						855						925						—						2,434
(Loss) income from operations			(6,245)						6,991						(7,554)						—						(6,808)
Interest (expense) income			(6,986)						96						(361)						—						(7,251)
Intercompany interest income (expense)			527						530						(1,057)						—						—
Foreign exchange loss			—						(99)						(1,237)						—						(1,336)
Other income			322						119						1,842						—						2,283
(Loss) income before income taxes			(12,382)						7,637						(8,367)						—						(13,112)
Provision for income taxes			(1,851)						79						2,114						—						342
Equity in earnings of subsidiaries			(2,923)						—						3,315						(392)						—
Net (loss) income			(13,454)						7,558						(7,166)						(392)						(13,454)
Net loss attributable to noncontrolling interests			—						—						(811)						—						(811)
Net (loss) income attributable to Titan			$	(13,454)					$	7,558					$	(6,355)					$	(392)					$	(12,643)

(Amounts in thousands)			Condensed Consolidating Statements of Operations For the Three Months Ended September 30, 2019
			Titan Intl., Inc. (Parent)						Guarantor Subsidiaries						Non-Guarantor Subsidiaries						Eliminations						Consolidated
Net sales			$	—					$	141,133					$	345,992					$	(141,220)					$	345,905
Cost of sales			107						134,169						325,749						(141,220)						318,805
Gross (loss) profit			(107)						6,964						20,243						—						27,100
Selling, general and administrative expenses			1,513						12,094						21,347						—						34,954
Research and development expenses			276						678						1,355						—						2,309
Royalty expense			679						860						914						—						2,453
Loss from operations			(2,575)						(6,668)						(3,373)						—						(12,616)
Interest (expense) income			(7,281)						5						(888)						—						(8,164)
Intercompany interest income (expense)			884						841						(1,725)						—						—
Foreign exchange loss			(47)						(152)						(2,067)						—						(2,266)
Other income (expense)			358						(528)						5,236						—						5,066
Loss before income taxes			(8,661)						(6,502)						(2,817)						—						(17,980)
Provision for income taxes			635						126						1,303						—						2,064
Equity in earnings of subsidiaries			(10,748)						—						(1,851)						12,599						—
Net (loss) income			(20,044)						(6,628)						(5,971)						12,599						(20,044)
Net loss attributable to noncontrolling interests			—						—						(900)						—						(900)
Net (loss) income attributable to Titan			$	(20,044)					$	(6,628)					$	(5,071)					$	12,599					$	(19,144)

(Amounts in thousands)			Condensed Consolidating Statements of Operations For the Nine Months Ended September 30, 2020
			Titan Intl., Inc. (Parent)						Guarantor Subsidiaries						Non-Guarantor Subsidiaries						Eliminations						Consolidated
Net sales			$	—					$	406,810					$	933,657					$	(408,062)					$	932,405
Cost of sales			525						367,998						879,930						(408,062)						840,391
Asset impairment			1,007						—						2,579						—						3,586
Gross (loss) profit			(1,532)						38,812						51,148						—						88,428
Selling, general and administrative expenses			16,519						6,738						70,592						—						93,849
Research and development expenses			664						2,239						3,879						—						6,782
Royalty expense			2,147						2,694						2,468						—						7,309
(Loss) income from operations			(20,862)						27,141						(25,791)						—						(19,512)
Interest (expense) income			(21,241)						81						(1,916)						—						(23,076)
Intercompany interest income (expense)			1,586						1,709						(3,295)						—						—
Foreign exchange loss			—						(981)						(8,761)						—						(9,742)
Other income (expense)			1,330						(142)						7,923						—						9,111
(Loss) income before income taxes			(39,187)						27,808						(31,840)						—						(43,219)
Provision for income taxes			(3,764)						256						5,885						—						2,377
Equity in earnings of subsidiaries			(10,173)						—						17,384						(7,211)						—
Net (loss) income			(45,596)						27,552						(20,341)						(7,211)						(45,596)
Net loss attributable to noncontrolling interests			—						—						(2,422)						—						(2,422)
Net (loss) income attributable to Titan			$	(45,596)					$	27,552					$	(17,919)					$	(7,211)					$	(43,174)

(Amounts in thousands)			Condensed Consolidating Statements of Operations For the Nine Months Ended September 30, 2019
			Titan Intl., Inc. (Parent)						Guarantor Subsidiaries						Non-Guarantor Subsidiaries						Eliminations						Consolidated
Net sales			$	—					$	475,652					$	1,147,568					$	(476,344)					$	1,146,876
Cost of sales			248						438,535						1,073,765						(476,344)						1,036,204
Gross (loss) profit			(248)						37,117						73,803						—						110,672
Selling, general and administrative expenses			4,694						35,299						66,612						—						106,605
Research and development expenses			768						2,263						4,439						—						7,470
Royalty expense			1,743						3,005						2,759						—						7,507
(Loss) income from operations			(7,453)						(3,450)						(7)						—						(10,910)
Interest (expense) income			(21,311)						5						(2,445)						—						(23,751)
Intercompany interest income (expense)			2,158						2,731						(4,889)						—						—
Foreign exchange loss (gain)			(69)						(156)						2,443						—						2,218
Other income (expense)			1,162						(1,606)						7,934						—						7,490
(Loss) income before income taxes			(25,513)						(2,476)						3,036						—						(24,953)
Provision for income taxes			(6,390)						410						6,741						—						761
Equity in earnings of subsidiaries			(6,591)						—						(1,320)						7,911						—
Net (loss) income			(25,714)						(2,886)						(5,025)						7,911						(25,714)
Net loss attributable to noncontrolling interests			—						—						(2,124)						—						(2,124)
Net (loss) income attributable to Titan			$	(25,714)					$	(2,886)					$	(2,901)					$	7,911					$	(23,590)

(Amounts in thousands)			Condensed Consolidating Statements of Comprehensive Loss For the Three Months Ended September 30, 2020
			Titan Intl., Inc. (Parent)						Guarantor Subsidiaries						Non-Guarantor Subsidiaries						Eliminations						Consolidated
Net (loss) income			$	(13,454)					$	7,558					$	(7,166)					$	(392)					$	(13,454)
Derivative (loss) gain			(17)						—						(17)						17						(17)
Currency translation adjustment			4,275						—						4,275						(4,275)						4,275
Pension liability adjustments, net of tax			575						667						(92)						(575)						575
Comprehensive (loss) income			(8,621)						8,225						(3,000)						(5,225)						(8,621)
Net comprehensive loss attributable to redeemable and noncontrolling interests			—						—						(1,912)						—						(1,912)
Comprehensive (loss) income attributable to Titan			$	(8,621)					$	8,225					$	(1,088)					$	(5,225)					$	(6,709)

(Amounts in thousands)			Condensed Consolidating Statements of Comprehensive Loss For the Three Months Ended September 30, 2019
			Titan Intl., Inc. (Parent)						Guarantor Subsidiaries						Non-Guarantor Subsidiaries						Eliminations						Consolidated
Net (loss) income			$	(20,044)					$	(6,628)					$	(5,971)					$	12,599					$	(20,044)
Currency translation adjustment			(20,324)						—						(20,324)						20,324						(20,324)
Pension liability adjustments, net of tax			590						753						(163)						(590)						590
Comprehensive (loss) income			(39,778)						(5,875)						(26,458)						32,333						(39,778)
Net comprehensive loss attributable to redeemable and noncontrolling interests			—						—						(1,213)						—						(1,213)
Comprehensive (loss) income attributable to Titan			$	(39,778)					$	(5,875)					$	(25,245)					$	32,333					$	(38,565)

(Amounts in thousands)			Condensed Consolidating Statements of Comprehensive Loss For the Nine Months Ended September 30, 2020
			Titan Intl., Inc. (Parent)						Guarantor Subsidiaries						Non-Guarantor Subsidiaries						Eliminations						Consolidated
Net (loss) income			$	(45,596)					$	27,552					$	(20,341)					$	(7,211)					$	(45,596)
Derivative (loss) gain			(215)						—						(215)						215						(215)
Currency translation adjustment			(28,498)						—						(28,498)						28,498						(28,498)
Pension liability adjustments, net of tax			1,923						2,001						(78)						(1,923)						1,923
Comprehensive (loss) income			(72,386)						29,553						(49,132)						19,579						(72,386)
Net comprehensive loss attributable to redeemable and noncontrolling interests			—						—						(4,814)						—						(4,814)
Comprehensive (loss) income attributable to Titan			$	(72,386)					$	29,553					$	(44,318)					$	19,579					$	(67,572)

(Amounts in thousands)			Condensed Consolidating Statements of Comprehensive Loss For the Nine Months Ended September 30, 2019
			Titan Intl., Inc. (Parent)						Guarantor Subsidiaries						Non-Guarantor Subsidiaries						Eliminations						Consolidated
Net (loss) income			$	(25,714)					$	(2,886)					$	(5,025)					$	7,911					$	(25,714)
Currency translation adjustment			(19,280)						—						(19,280)						19,280						(19,280)
Pension liability adjustments, net of tax			1,594						2,256						(662)						(1,594)						1,594
Comprehensive (loss) income			(43,400)						(630)						(24,967)						25,597						(43,400)
Net comprehensive loss attributable to redeemable and noncontrolling interests			—						—						(897)						—						(897)
Comprehensive (loss) income attributable to Titan			$	(43,400)					$	(630)					$	(24,070)					$	25,597					$	(42,503)

(Amounts in thousands)			Condensed Consolidating Balance Sheets September 30, 2020
			Titan Intl., Inc. (Parent)						Guarantor Subsidiaries						Non-Guarantor Subsidiaries						Eliminations						Consolidated
Assets
Cash and cash equivalents			$	5,002					$	3					$	93,767					$	—					$	98,772
Accounts receivable, net			—						—						192,764						—						192,764
Inventories			—						31,763						252,468						—						284,231
Assets held for sale			6,640						—						—						—						6,640
Prepaid and other current assets			4,756						16,655						34,597						—						56,008
Total current assets			16,398						48,421						573,596						—						638,415
Property, plant and equipment, net			3,784						84,724						236,451						—						324,959
Investment in subsidiaries			585,724						—						70,501						(656,225)						—
Other assets			2,259						5,056						45,658						—						52,973
Total assets			$	608,165					$	138,201					$	926,206					$	(656,225)					$	1,016,347
Liabilities and Equity
Short-term debt			$	—					$	—					$	32,641					$	—					$	32,641
Accounts payable			2,343						23,542						124,994						—						150,879
Other current liabilities			28,465						22,854						80,415						—						131,734
Total current liabilities			30,808						46,396						238,050						—						315,254
Long-term debt			396,642						—						35,147						—						431,789
Other long-term liabilities			2,231						18,037						54,826						—						75,094
Intercompany accounts			(32,322)						(446,212)						478,534						—						—
Redeemable noncontrolling interest			—						—						25,000						—						25,000
Titan shareholders' equity			210,806						519,980						95,277						(656,225)						169,838
Noncontrolling interests			—						—						(628)						—						(628)
Total liabilities and equity			$	608,165					$	138,201					$	926,206					$	(656,225)					$	1,016,347

(Amounts in thousands)			Condensed Consolidating Balance Sheets December 31, 2019
			Titan Intl., Inc. (Parent)						Guarantor Subsidiaries						Non-Guarantor Subsidiaries						Eliminations						Consolidated
Assets
Cash and cash equivalents			$	2,843					$	4					$	63,952					$	—					$	66,799
Accounts receivable, net			—						2						185,236						—						185,238
Inventories			—						41,088						292,268						—						333,356
Assets held for sale			7,203						—						—						—						7,203
Prepaid and other current assets			3,217						17,352						38,300						—						58,869
Total current assets			13,263						58,446						579,756						—						651,465
Property, plant and equipment, net			3,443						91,734						272,418						—						367,595
Investment in subsidiaries			763,336						—						61,019						(824,355)						—
Other assets			3,405						4,211						87,631						—						95,247
Total assets			$	783,447					$	154,391					$	1,000,824					$	(824,355)					$	1,114,307
Liabilities and Equity
Short-term debt			$	514					$	69					$	60,670					$	—					$	61,253
Accounts payable			4,951						18,455						135,241						—						158,647
Other current liabilities			20,912						17,941						68,400						—						107,253
Total current liabilities			26,377						36,465						264,311						—						327,153
Long-term debt			431,960						—						6,509						—						438,469
Other long-term liabilities			6,493						15,443						62,761						—						84,697
Intercompany accounts			42,798						(397,847)						355,049						—						—
Redeemable noncontrolling interest			—						—						25,000						—						25,000
Titan shareholders' equity			275,819						500,330						283,057						(824,355)						234,851
Noncontrolling interests			—						—						4,137						—						4,137
Total liabilities and equity			$	783,447					$	154,391					$	1,000,824					$	(824,355)					$	1,114,307

(Amounts in thousands)			Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2020
			Titan Intl., Inc. (Parent)						Guarantor Subsidiaries						Non-Guarantor Subsidiaries						Consolidated
Net cash provided by operating activities			$	19,179					$	3,631					$	24,621					$	47,431
Cash flows from investing activities:
Capital expenditures			(92)						(3,884)						(9,374)						(13,350)
Sale of Wheels India Limited shares			—						—						32,852						32,852
Insurance proceeds			—						—						4,936						4,936
Other, net			191						(8)						743						926
Net cash provided by (used for) investing activities			99						(3,892)						29,157						25,364
Cash flows from financing activities:
Proceeds from borrowings			31,334						333						54,324						85,991
Payment on debt			(45,348)						(61)						(71,192)						(116,601)
Dividends paid			(603)						—						—						(603)
Other financing activities			(2,502)						(12)						(209)						(2,723)
Net cash (used for) provided by financing activities			(17,119)						260						(17,077)						(33,936)
Effect of exchange rate change on cash			—						—						(6,886)						(6,886)
Net increase (decrease) in cash and cash equivalents			2,159						(1)						29,815						31,973
Cash and cash equivalents, beginning of period			2,843						4						63,952						66,799
Cash and cash equivalents, end of period			$	5,002					$	3					$	93,767					$	98,772

(Amounts in thousands)			Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2019
			Titan Intl., Inc. (Parent)						Guarantor Subsidiaries						Non-Guarantor Subsidiaries						Consolidated
Net cash provided by operating activities			$	2,683					$	5,742					$	22,787					$	31,212
Cash flows from investing activities:
Capital expenditures			(21)						(6,207)						(20,026)						(26,254)
Payment related to redeemable noncontrolling interest agreement			(71,722)						—						—						(71,722)
Other, net			—						181						1,173						1,354
Net cash used for investing activities			(71,743)						(6,026)						(18,853)						(96,622)
Cash flows from financing activities:
Proceeds from borrowings			73,000						287						50,866						124,153
Payment on debt			(14,000)						—						(45,296)						(59,296)
Dividends paid			(901)						—						—						(901)
Net cash provided by financing activities			58,099						287						5,570						63,956
Effect of exchange rate change on cash			—						—						(1,628)						(1,628)
Net (decrease) increase in cash and cash equivalents			(10,961)						3						7,876						(3,082)
Cash and cash equivalents, beginning of period			23,630						4						58,051						81,685
Cash and cash equivalents, end of period			$	12,669					$	7					$	65,927					$	78,603

X

- Definition

The entire disclosure for condensed financial statements.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 3
-Paragraph d
-Subparagraph 4
-Subsection 10

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 3
-Paragraph c
-Subparagraph 4
-Subsection 10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 12
-Paragraph a
-Subsection 04

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 3
-Paragraph e
-Subparagraph 4
-Subsection 10

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 3
-Paragraph f
-Subparagraph 4
-Subsection 10

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690

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X

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No definition available.

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