XML 38 R28.htm IDEA: XBRL DOCUMENT v3.22.2.2
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION
 9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure [Text Block] SUBSIDIARY GUARANTOR FINANCIAL INFORMATION
Our senior secured notes due 2028 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 the full and unconditional, joint and several obligations of the guarantors. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances upon the occurrence of certain customary conditions. 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, 2022
 Titan
 Intl., Inc. (Parent)		Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$— $39,472 $530,722 $(39,472)$530,722 
Cost of sales— 5,177 477,384 (39,472)443,089 
Gross profit— 34,295 53,338 — 87,633 
Selling, general and administrative expenses2,100 12,277 17,033 — 31,410 
Research and development expenses275 817 1,342 — 2,434 
Royalty expense— 1,596 1,702 — 3,298 
(Loss) income from operations(2,375)19,605 33,261 — 50,491 
Interest (expense) income(7,373)(3)155 — (7,221)
Intercompany interest income (expense)373 1,102 (1,475)— — 
Foreign exchange (loss) gain— (155)1,353 — 1,198 
Other (expense) income(22)528 9,185 — 9,691 
(Loss) income before income taxes(9,397)21,077 42,479 — 54,159 
Provision for income taxes941 50 10,455 — 11,446 
Equity in earnings (loss) of subsidiaries54,403 — 17,700 (72,103)— 
Net income (loss)44,065 21,027 49,724 (72,103)42,713 
Net loss attributable to noncontrolling interests— — (456)— (456)
Net income (loss) attributable to Titan$44,065 $21,027 $50,180 $(72,103)$43,169 
(Amounts in thousands) Condensed Consolidating Statements of Operations
For the Nine Months Ended September 30, 2022
 Titan
 Intl., Inc. (Parent)		Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$— $205,015 $1,659,614 $(205,015)$1,659,614 
Cost of sales— 83,090 1,497,524 (205,015)1,375,599 
Gross profit— 121,925 162,090 — 284,015 
Selling, general and administrative expenses6,911 37,802 57,593 — 102,306 
Research and development expenses784 2,486 4,322 — 7,592 
Royalty expense230 4,461 4,526 — 9,217 
(Loss) income from operations(7,925)77,176 95,649 — 164,900 
Interest expense(22,499)(11)(325)— (22,835)
Intercompany interest income (expense)1,107 2,815 (3,922)— — 
Foreign exchange gain— 135 8,614 — 8,749 
Other (loss) income(10)1,568 22,968 — 24,526 
(Loss) income before income taxes(29,327)81,683 122,984 — 175,340 
Provision for income taxes3,301 346 35,481 — 39,128 
Equity in earnings (loss) of subsidiaries171,420 — 56,343 (227,763)— 
Net income (loss)138,792 81,337 143,846 (227,763)136,212 
Net income attributable to noncontrolling interests— — 1,950 — 1,950 
Net income (loss) attributable to Titan$138,792 $81,337 $141,896 $(227,763)$134,262 



(Amounts in thousands)Condensed Consolidating Statements of Comprehensive Income (Loss)
For the Three Months Ended September 30, 2022
 Titan
 Intl., Inc. (Parent)		Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net income (loss)$44,065 $21,027 $49,724 $(72,103)$42,713 
Derivative gain — — 287 — 287 
Currency translation adjustment, net— — (29,517)— (29,517)
Pension liability adjustments, net of tax— — 241 — 241 
Comprehensive income (loss)44,065 21,027 20,735 (72,103)13,724 
Net comprehensive loss attributable to noncontrolling interests— — (1,101)— (1,101)
Comprehensive income (loss) attributable to Titan$44,065 $21,027 $21,836 $(72,103)$14,825 
(Amounts in thousands)Condensed Consolidating Statements of Comprehensive Income (Loss)
For the Nine Months Ended September 30, 2022
 Titan
 Intl., Inc. (Parent)		Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net income (loss)$138,792 $81,337 $143,846 $(227,763)$136,212 
Derivative gain— — 865 — 865 
Currency translation adjustment, net— — (23,778)— (23,778)
Pension liability adjustments, net of tax— — 1,216 — 1,216 
Comprehensive income (loss)138,792 81,337 122,149 (227,763)114,515 
Net comprehensive income attributable to noncontrolling interests— — 7,352 — 7,352 
Comprehensive income (loss) attributable to Titan$138,792 $81,337 $114,797 $(227,763)$107,163 



(Amounts in thousands)Condensed Consolidating Balance Sheets
September 30, 2022
 Titan
 Intl., Inc. (Parent)		Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Assets     
Cash and cash equivalents$22,130 $2 $94,449 $— $116,581 
Accounts receivable, net— 26 282,119 — 282,145 
Inventories— 80,745 332,222 — 412,967 
Prepaid and other current assets712 16,536 71,706 — 88,954 
Total current assets22,842 97,309 780,496 — 900,647 
Property, plant and equipment, net543 78,787 208,288 — 287,618 
Investment in subsidiaries852,976 — 176,461 (1,029,437)— 
Other assets1,035 13,443 44,736 — 59,214 
Total assets$877,396 $189,539 $1,209,981 $(1,029,437)$1,247,479 
Liabilities and Equity     
Short-term debt$— $— $32,300 $— $32,300 
Accounts payable1,294 53,399 202,022 — 256,715 
Other current liabilities47,296 29,517 105,124 — 181,937 
Total current liabilities48,590 82,916 339,446 — 470,952 
Long-term debt395,182 — 19,384 — 414,566 
Other long-term liabilities170 4,023 36,781 — 40,974 
Intercompany accounts76,722 (536,568)459,846 — — 
Titan shareholders' equity356,732 639,168 349,300 (1,029,437)315,763 
Noncontrolling interests— — 5,224 — 5,224 
Total liabilities and equity$877,396 $189,539 $1,209,981 $(1,029,437)$1,247,479 
(Amounts in thousands)Condensed Consolidating Statements of Cash Flows
For the Nine Months Ended September 30, 2022
 Titan
 Intl., Inc. (Parent)		Guarantor SubsidiariesNon-Guarantor SubsidiariesConsolidated
Net cash provided by operating activities$69,433 $9,634 $23,173 $102,240 
Cash flows from investing activities:    
Capital expenditures— (9,620)(23,135)(32,755)
Proceeds from the sale of the Australian wheel business— — 9,293 9,293 
Proceeds from sale of fixed assets— 3 677 680 
Net cash used for investing activities— (9,617)(13,165)(22,782)
Cash flows from financing activities:    
Proceeds from borrowings65,657 — 23,250 88,907 
Payment on debt(95,000)— (25,728)(120,728)
Repurchase of common stock(25,000)— — (25,000)
Other financing activities— (32)(688)(720)
Net cash used for financing activities(54,343)(32)(3,166)(57,541)
Effect of exchange rate change on cash— — (3,444)(3,444)
Net increase (decrease) in cash and cash equivalents15,090 (15)3,398 18,473 
Cash and cash equivalents, beginning of period7,040 17 91,051 98,108 
Cash and cash equivalents, end of period$22,130 $2 $94,449 $116,581