XML 56 R45.htm IDEA: XBRL DOCUMENT
v3.21.2

SUBSIDIARY GUARANTOR FINANCIAL INFORMATION (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Condensed Income Statement [Table Text Block] |
(Amounts in thousands) | Condensed Consolidating Statements of Operations For the Three Months Ended September 30, 2021
| Titan Intl., Inc. (Parent) |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Net sales | $ | — |  |  | $ | 72,169 |  |  | $ | 450,441 |  |  | $ | (72,228) |  |  | $ | 450,382 |
Cost of sales | 267 |  |  | 48,318 |  |  | 413,733 |  |  | (72,228) |  |  | 390,090 |
Gross (loss) profit | (267) |  |  | 23,851 |  |  | 36,708 |  |  | — |  |  | 60,292 |
Selling, general and administrative expenses | 2,020 |  |  | 11,288 |  |  | 18,909 |  |  | — |  |  | 32,217 |
Research and development expenses | 301 |  |  | 732 |  |  | 1,337 |  |  | — |  |  | 2,370 |
Royalty expense | 198 |  |  | 1,155 |  |  | 1,452 |  |  | — |  |  | 2,805 |
(Loss) income from operations | (2,786) |  |  | 10,676 |  |  | 15,010 |  |  | — |  |  | 22,900 |
Interest expense | (7,637) |  |  | (7) |  |  | (174) |  |  | — |  |  | (7,818) |
Intercompany interest income (expense) | 400 |  |  | 620 |  |  | (1,020) |  |  | — |  |  | — |
Foreign exchange (loss) gain | — |  |  | (248) |  |  | 664 |  |  | — |  |  | 416 |
Other (expense) income | (5) |  |  | 117 |  |  | 536 |  |  | — |  |  | 648 |
(Loss) income before income taxes | (10,028) |  |  | 11,158 |  |  | 15,016 |  |  | — |  |  | 16,146 |
Provision for income taxes | 507 |  |  | 93 |  |  | 4,742 |  |  | — |  |  | 5,342 |
Equity in earnings (loss) of subsidiaries | 21,340 |  |  | — |  |  | 2,920 |  |  | (24,260) |  |  | — |
Net income (loss) | 10,805 |  |  | 11,065 |  |  | 13,194 |  |  | (24,260) |  |  | 10,804 |
Net loss attributable to noncontrolling interests | — |  |  | — |  |  | (383) |  |  | — |  |  | (383) |
Net income (loss) attributable to Titan | $ | 10,805 |  |  | $ | 11,065 |  |  | $ | 13,577 |  |  | $ | (24,260) |  |  | $ | 11,187 |
(Amounts in thousands) | Condensed Consolidating Statements of Operations For the Nine Months Ended September 30, 2021
| Titan Intl., Inc. (Parent) |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Net sales | $ | — |  |  | $ | 297,249 |  |  | $ | 1,292,735 |  |  | $ | (297,445) |  |  | $ | 1,292,539 |
Cost of sales | 768 |  |  | 222,893 |  |  | 1,191,296 |  |  | (297,445) |  |  | 1,117,512 |
Gross (loss) profit | (768) |  |  | 74,356 |  |  | 101,439 |  |  | — |  |  | 175,027 |
Selling, general and administrative expenses | 7,619 |  |  | 35,147 |  |  | 56,045 |  |  | — |  |  | 98,811 |
Research and development expenses | 757 |  |  | 2,240 |  |  | 4,454 |  |  | — |  |  | 7,451 |
Royalty expense | 1,033 |  |  | 3,282 |  |  | 3,600 |  |  | — |  |  | 7,915 |
(Loss) income from operations | (10,177) |  |  | 33,687 |  |  | 37,340 |  |  | — |  |  | 60,850 |
Interest expense | (22,771) |  |  | (18) |  |  | (1,150) |  |  | — |  |  | (23,939) |
Loss on senior note repurchase | (16,020) |  |  | — |  |  | — |  |  | — |  |  | (16,020) |
Intercompany interest income (expense) | 1,263 |  |  | 1,667 |  |  | (2,930) |  |  | — |  |  | — |
Foreign exchange (loss) gain | (6) |  |  | (113) |  |  | 9,244 |  |  | — |  |  | 9,125 |
Other (expense) income | (1,231) |  |  | 2,145 |  |  | 598 |  |  | — |  |  | 1,512 |
(Loss) income before income taxes | (48,942) |  |  | 37,368 |  |  | 43,102 |  |  | — |  |  | 31,528 |
(Benefit) provision for income taxes | (1,449) |  |  | 250 |  |  | 11,126 |  |  | — |  |  | 9,927 |
Equity in earnings (loss) of subsidiaries | 69,095 |  |  | — |  |  | 6,519 |  |  | (75,614) |  |  | — |
Net income (loss) | 21,602 |  |  | 37,118 |  |  | 38,495 |  |  | (75,614) |  |  | 21,601 |
Net loss attributable to noncontrolling interests | — |  |  | — |  |  | (387) |  |  | — |  |  | (387) |
Net income (loss) attributable to Titan | $ | 21,602 |  |  | $ | 37,118 |  |  | $ | 38,882 |  |  | $ | (75,614) |  |  | $ | 21,988 |
Condensed Statement of Comprehensive Income [Table Text Block] |
(Amounts in thousands) | Condensed Consolidating Statements of Comprehensive (Loss) Income For the Three Months Ended September 30, 2021
| Titan Intl., Inc. (Parent) |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Net income (loss) | $ | 10,805 |  |  | $ | 11,065 |  |  | $ | 13,194 |  |  | $ | (24,260) |  |  | $ | 10,804 |
Derivative gain (loss) | 54 |  |  | — |  |  | 54 |  |  | (54) |  |  | 54 |
Currency translation adjustment | (16,243) |  |  | — |  |  | (16,243) |  |  | 16,243 |  |  | (16,243) |
Pension liability adjustments, net of tax | 797 |  |  | 667 |  |  | 130 |  |  | (797) |  |  | 797 |
Comprehensive (loss) income | (4,587) |  |  | 11,732 |  |  | (2,865) |  |  | (8,868) |  |  | (4,588) |
Net comprehensive income attributable to redeemable and noncontrolling interests | — |  |  | — |  |  | 51 |  |  | — |  |  | 51 |
Comprehensive (loss) income attributable to Titan | $ | (4,587) |  |  | $ | 11,732 |  |  | $ | (2,916) |  |  | $ | (8,868) |  |  | $ | (4,639) |
(Amounts in thousands) | Condensed Consolidating Statements of Comprehensive (Loss) Income For the Nine Months Ended September 30, 2021
| Titan Intl., Inc. (Parent) |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Net income (loss) | $ | 21,602 |  |  | $ | 37,118 |  |  | $ | 38,495 |  |  | $ | (75,614) |  |  | $ | 21,601 |
Derivative gain (loss) | 319 |  |  | — |  |  | 319 |  |  | (319) |  |  | 319 |
Currency translation adjustment | (28,991) |  |  | — |  |  | (28,991) |  |  | 28,991 |  |  | (28,991) |
Pension liability adjustments, net of tax | 2,362 |  |  | 2,001 |  |  | 361 |  |  | (2,362) |  |  | 2,362 |
Comprehensive (loss) income | (4,708) |  |  | 39,119 |  |  | 10,184 |  |  | (49,304) |  |  | (4,709) |
Net comprehensive loss attributable to redeemable and noncontrolling interests | — |  |  | — |  |  | (323) |  |  | — |  |  | (323) |
Comprehensive (loss) income attributable to Titan | $ | (4,708) |  |  | $ | 39,119 |  |  | $ | 10,507 |  |  | $ | (49,304) |  |  | $ | (4,386) |
Condensed Balance Sheet [Table Text Block] |
(Amounts in thousands) | Condensed Consolidating Balance Sheets September 30, 2021
| Titan Intl., Inc. (Parent) |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 11,594 |  |  | $ | (9) |  |  | $ | 83,055 |  |  | $ | — |  |  | $ | 94,640 |
Accounts receivable, net | 185 |  |  | 5 |  |  | 261,257 |  |  | — |  |  | 261,447 |
Inventories | — |  |  | 54,536 |  |  | 318,476 |  |  | — |  |  | 373,012 |
Prepaid and other current assets | 1,384 |  |  | 17,974 |  |  | 47,786 |  |  | — |  |  | 67,144 |
Total current assets | 13,163 |  |  | 72,506 |  |  | 710,574 |  |  | — |  |  | 796,243 |
Property, plant and equipment, net | 1,679 |  |  | 79,548 |  |  | 221,363 |  |  | — |  |  | 302,590 |
Investment in subsidiaries | 639,992 |  |  | — |  |  | 56,149 |  |  | (696,141) |  |  | — |
Other assets | 1,185 |  |  | 4,111 |  |  | 40,130 |  |  | — |  |  | 45,426 |
Total assets | $ | 656,019 |  |  | $ | 156,165 |  |  | $ | 1,028,216 |  |  | $ | (696,141) |  |  | $ | 1,144,259 |
Liabilities and Equity |  |  |  |  |  |  |  |  |
Short-term debt | $ | — |  |  | $ | — |  |  | $ | 30,867 |  |  | $ | — |  |  | $ | 30,867 |
Accounts payable | 3,318 |  |  | 48,948 |  |  | 201,553 |  |  | — |  |  | 253,819 |
Other current liabilities | 30,284 |  |  | 28,870 |  |  | 93,072 |  |  | — |  |  | 152,226 |
Total current liabilities | 33,602 |  |  | 77,818 |  |  | 325,492 |  |  | — |  |  | 436,912 |
Long-term debt | 424,305 |  |  | — |  |  | 26,694 |  |  | — |  |  | 450,999 |
Other long-term liabilities | 250 |  |  | 11,447 |  |  | 45,057 |  |  | — |  |  | 56,754 |
Intercompany accounts | (21,023) |  |  | (466,198) |  |  | 487,221 |  |  | — |  |  | — |
Redeemable noncontrolling interest | — |  |  | — |  |  | 25,000 |  |  | — |  |  | 25,000 |
Titan shareholders' equity | 218,885 |  |  | 533,098 |  |  | 122,074 |  |  | (696,141) |  |  | 177,916 |
Noncontrolling interests | — |  |  | — |  |  | (3,322) |  |  | — |  |  | (3,322) |
Total liabilities and equity | $ | 656,019 |  |  | $ | 156,165 |  |  | $ | 1,028,216 |  |  | $ | (696,141) |  |  | $ | 1,144,259 |
Condensed Cash Flow Statement [Table Text Block] |
(Amounts in thousands) | Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2021 |  |
| Titan Intl., Inc. (Parent) |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Consolidated |  |
Net cash (used for) provided by operating activities | $ | (10,790) |  |  | $ | 6,347 |  |  | $ | 2,153 |  |  | $ | (2,290) |  |  |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |
Capital expenditures | (17) |  |  | (6,363) |  |  | (17,870) |  |  | (24,250) |  |  |
Proceeds from sale of fixed assets | — |  |  | 26 |  |  | 1,113 |  |  | 1,139 |  |  |
Net cash used for investing activities | (17) |  |  | (6,337) |  |  | (16,757) |  |  | (23,111) |  |  |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |
Proceeds from borrowings | 465,473 |  |  | — |  |  | 16,820 |  |  | 482,293 |  |  |
Repurchase of senior secured notes | (413,000) |  |  | — |  |  | — |  |  | (413,000) |  |  |
Payment on debt | (35,357) |  |  | — |  |  | (24,592) |  |  | (59,949) |  |  |
Other financing activities | (5,713) |  |  | (23) |  |  | 3,667 |  |  | (2,069) |  |  |
Net cash provided by (used for) financing activities | 11,403 |  |  | (23) |  |  | (4,105) |  |  | 7,275 |  |  |
Effect of exchange rate change on cash | — |  |  | — |  |  | (4,665) |  |  | (4,665) |  |  |
Net increase (decrease) in cash and cash equivalents | 596 |  |  | (13) |  |  | (23,374) |  |  | (22,791) |  |  |
Cash and cash equivalents, beginning of period | 10,998 |  |  | 4 |  |  | 106,429 |  |  | 117,431 |  |  |
Cash and cash equivalents, end of period | $ | 11,594 |  |  | $ | (9) |  |  | $ | 83,055 |  |  | $ | 94,640 |  |  |

X
- Definition Tabular disclosure of condensed statement of comprehensive income (loss) including, but not limited to, statements of comprehensive income (loss) of consolidated entities and consolidation eliminations. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 3 -Paragraph i -Subsection 10 + Details
Name: | srt_CondensedStatementOfComprehensiveIncomeTableTextBlock
Namespace Prefix: | srt_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of condensed balance sheet, including, but not limited to, balance sheets of consolidated entities and consolidation eliminations. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 3 -Paragraph i -Subsection 10 + Details
Name: | srt_ScheduleOfCondensedBalanceSheetTableTextBlock
Namespace Prefix: | srt_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of condensed cash flow statement, including, but not limited to, cash flow statements of consolidated entities and consolidation eliminations. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 3 -Paragraph i -Subsection 10 + Details
Name: | srt_ScheduleOfCondensedCashFlowStatementTableTextBlock
Namespace Prefix: | srt_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of condensed income statement, including, but not limited to, income statements of consolidated entities and consolidation eliminations. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 3 -Paragraph i -Subsection 10 + Details
Name: | srt_ScheduleOfCondensedIncomeStatementTableTextBlock
Namespace Prefix: | srt_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration