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SEC Filings

10-Q
NN INC filed this Form 10-Q on 11/09/2017
Entire Document
 


Table of Contents

Note 3. Inventories

Inventories are comprised of the following amounts:

 

     September 30,      December 31,  
     2017      2016  

Raw materials

   $ 35,253      $ 36,081  

Work in process

     24,535        22,644  

Finished goods

     16,853        8,412  
  

 

 

    

 

 

 

Inventories

   $ 76,641      $ 67,137  
  

 

 

    

 

 

 

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. The inventory valuations above were developed using normalized production capacities for each manufacturing location. Any costs from abnormal excess capacity or underutilization of fixed production overheads are expensed in the period incurred and are not included as a component of inventory valuation.

Note 4. Net Income (Loss) Per Share

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
     2017      2016      2017      2016  

Income (loss) from continuing operations

   $ (2,930    $ 792      $ (28,018    $ (7,349

Income from discontinued operations, net of tax

     135,825        3,663        146,579        12,564  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 132,895      $ 4,455      $ 118,561      $ 5,215  
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares outstanding

     27,544        27,159        27,403        26,973  

Effect of dilutive stock options

     —          163        —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted shares outstanding

     27,544        27,322        27,403        26,973  
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic income (loss) from continuing operations per share

   $ (0.11    $ 0.03      $ (1.02    $ (0.27

Basic income from discontinued operations per share

     4.93        0.13        5.35        0.47  
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic net income per share

   $ 4.82      $ 0.16      $ 4.33      $ 0.19  
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted income (loss) from continuing operations per share

   $ (0.11    $ 0.03      $ (1.02    $ (0.27

Diluted income from discontinued operations per share

     4.93        0.13        5.35        0.47  
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted net income per share

   $ 4.82      $ 0.16      $ 4.33      $ 0.19  
  

 

 

    

 

 

    

 

 

    

 

 

 

The calculations of diluted income from continuing operations per share for the three-month periods ended September 30, 2017 and 2016, exclude 0.8 million and 0.6 million potentially dilutive stock options, which had the effect of being anti-dilutive. The calculations of diluted income from continuing operations per share for the nine-month periods ended September 30, 2017 and 2016, exclude 0.8 million and 0.8 million potentially dilutive stock options, which had the effect of being anti-dilutive. Given the loss from continuing operations for the three-month and nine-month periods ended September 30, 2017, and for the nine-month period ended September 30, 2016, all options are considered anti-dilutive and were excluded from the calculation of diluted loss from continuing operations per share.

Note 5. Segment Information

The segment information and the accounting policies of each segment are the same as those described in the Notes to Consolidated Financial Statements entitled “Segment Information” and “Summary of Significant Accounting Policies and Practices,” respectively, included in our 2016 Annual Report. Our business has historically been aggregated into three reportable segments: PBC, APC, and PEP. See Note 2 for information regarding the sale of the PBC business on August 17, 2017. The results of the PBC business are classified as discontinued operations for all periods in the condensed consolidated financial statements and accompanying notes unless otherwise stated. Accordingly, results of the PBC business are not included in the tabular presentation below.

Within our APC segment, we manufacture highly engineered, difficult-to-manufacture precision metal components and sub-assemblies for the automotive and industrial end markets.

 

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