RTI INTERNATIONAL METALS INC

CIK:0001068717|SEC Filings

ACCUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Mar. 31, 2015

ACCUMULATED OTHER COMPREHENSIVE LOSS:

Accumulated other comprehensive loss is comprised of foreign currency exchange rate fluctuations at the Company’s Canadian subsidiary, changes in prior service costs and actuarial losses related to the Company’s pension plans, and unrealized gains and losses on short-term investments. The components of accumulated other comprehensive loss at March 31, 2015 and December 31, 2014 were as follows:



	Foreign Currency Translation			Prior Service Costs and Actuarial Losses on Benefit Plans			Unrealized Losses on Investments			Total
Balance at December 31, 2014	$	(3,953	)	$	(51,595	)	$	(41	)	$	(55,589	)
Other comprehensive income/(loss) before reclassifications, net of tax	(9,620		)	—			30			(9,590		)
Amounts reclassified from accumulated other comprehensive loss, net of tax	—			966			—			966
Accumulated other comprehensive loss at March 31, 2015	$	(13,573	)	$	(50,629	)	$	(11	)	$	(64,213	)

Amounts reclassified from accumulated other comprehensive loss to net periodic pension expense during the three months ended March 31, 2015 and 2014 were as follows:



	Three Months Ended March 31,
	2015			2014
Actuarial losses and prior service costs	$	1,547		$	1,782
Tax expense	(581		)	(677		)
Total reclassifications	$	966		$	1,105

These amounts have been used in the calculation of net periodic benefit cost for the three months ended March 31, 2015 and 2014. Refer to Note 14 for further information about the Company’s benefit plans.

Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
OPERATING ACTIVITIES:
Net income (loss)	$ 4,533us-gaap_NetIncomeLoss	$ (4,181)us-gaap_NetIncomeLoss
Adjustment for non-cash items included in net income:
Depreciation and amortization	11,244	10,986
Deferred income taxes	(52)us-gaap_DeferredIncomeTaxExpenseBenefit	(31)us-gaap_DeferredIncomeTaxExpenseBenefit
Stock-based compensation	993us-gaap_ShareBasedCompensation	1,295us-gaap_ShareBasedCompensation
Excess tax benefits from stock-based compensation activity	(36)	(195)
(Gain)/loss on sale of property, plant and equipment	195	(122)
Amortization of discount on long-term debt	4,707	4,403
Amortization of debt issuance costs	490us-gaap_AmortizationOfFinancingCosts	456us-gaap_AmortizationOfFinancingCosts
Amortization of discounts on short-term investments and marketable securities	(35)	0
Other	1,263us-gaap_OtherNoncashIncomeExpense	(181)us-gaap_OtherNoncashIncomeExpense
Changes in assets and liabilities:
Receivables	2,445	(2,278)
Inventories	(7,567)us-gaap_IncreaseDecreaseInInventories	(21,757)us-gaap_IncreaseDecreaseInInventories
Accounts payable	(16,349)	1,093
Income taxes payable	166	(5,236)
Unearned revenue	14,979	1,036
Costs in excess of billings	(835)	(2,160)
Other current assets and liabilities	3,931	(3,542)
Other assets and liabilities	1,864	(301)
Cash provided by (used in) operating activities	21,936	(20,715)
INVESTING ACTIVITIES:
Purchase of investments	(44,977)us-gaap_PaymentsToAcquireInvestments	(128,216)us-gaap_PaymentsToAcquireInvestments
Maturity/sale of investments	63,500	0
Acquisitions, net of cash acquired	0	(21,797)
Capital expenditures	(10,140)	(6,850)
Divestitures	0	3,281
Cash provided by (used in) investing activities	8,383	(153,582)
FINANCING ACTIVITIES:
Repayments on long-term debt	(104)us-gaap_RepaymentsOfLongTermDebt	(484)us-gaap_RepaymentsOfLongTermDebt
Purchase of common stock held in treasury	(325)	(850)
Proceeds from exercise of employee stock options	1,208	539
Excess tax benefits from stock-based compensation activity	36	195
Cash provided by (used in) financing activities	815	(600)
Effect of exchange rate changes on cash and cash equivalents	(4,168)	(832)
Increase (decrease) in cash and cash equivalents	26,966	(175,729)
Cash and cash equivalents at beginning of period	182,059	343,637
Cash and cash equivalents at end of period	209,025	167,908
Non-cash investing and financing activities:
Increase in capital expenditures accrued in accounts payable	701	530
Issuance of common stock for restricted stock awards	$ 0us-gaap_StockIssued1	$ 1,658us-gaap_StockIssued1

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 209,025	$ 182,059
Short-term investments	129,895us-gaap_ShortTermInvestments	148,383us-gaap_ShortTermInvestments
Receivables, less allowance for doubtful accounts of $866 and $694	111,417us-gaap_AccountsReceivableNetCurrent	117,745us-gaap_AccountsReceivableNetCurrent
Inventories, net	475,719us-gaap_InventoryNet	474,306us-gaap_InventoryNet
Costs in excess of billings	8,171	5,522
Deferred income taxes	30,632us-gaap_DeferredTaxAssetsNetCurrent	30,632us-gaap_DeferredTaxAssetsNetCurrent
Other current assets	23,817us-gaap_OtherAssetsCurrent	19,803us-gaap_OtherAssetsCurrent
Total current assets	988,676us-gaap_AssetsCurrent	978,450us-gaap_AssetsCurrent
Property, plant, and equipment, net	366,236us-gaap_PropertyPlantAndEquipmentNet	369,287us-gaap_PropertyPlantAndEquipmentNet
Goodwill	144,513us-gaap_Goodwill	145,518us-gaap_Goodwill
Other intangible assets, net	55,131	57,122
Other noncurrent assets	14,189us-gaap_OtherAssetsNoncurrent	15,317us-gaap_OtherAssetsNoncurrent
Total assets	1,568,745us-gaap_Assets	1,565,694us-gaap_Assets
Current liabilities:
Current portion of long-term debt	113,121	111,645
Accounts payable	85,401us-gaap_AccountsPayableCurrent	105,044us-gaap_AccountsPayableCurrent
Accrued wages and other employee costs	24,132	26,874
Billings in excess of cost	11,777us-gaap_BillingsInExcessOfCostCurrent	9,962us-gaap_BillingsInExcessOfCostCurrent
Unearned revenues	22,042us-gaap_DeferredRevenueCurrent	7,623us-gaap_DeferredRevenueCurrent
Other accrued liabilities	26,582us-gaap_OtherAccruedLiabilitiesCurrent	18,724us-gaap_OtherAccruedLiabilitiesCurrent
Total current liabilities	283,055us-gaap_LiabilitiesCurrent	279,872us-gaap_LiabilitiesCurrent
Long-term debt	348,031	345,012
Liability for post-retirement benefits	48,935	48,295
Liability for pension benefits	16,673	16,986
Deferred income taxes	60,467	60,503
Unearned revenues	4,829us-gaap_DeferredRevenueNoncurrent	5,476us-gaap_DeferredRevenueNoncurrent
Other noncurrent liabilities	13,889us-gaap_OtherLiabilitiesNoncurrent	14,070us-gaap_OtherLiabilitiesNoncurrent
Total liabilities	775,879us-gaap_Liabilities	770,214us-gaap_Liabilities
Commitments and contingencies (Note 15)
Shareholders’ equity:
Common stock, $0.01 par value; 100,000,000 shares authorized; 31,672,731 and 31,585,696 shares issued; 30,794,405 and 30,729,784 shares outstanding	317us-gaap_CommonStockValue	316us-gaap_CommonStockValue
Additional paid-in capital	540,504	538,703
Treasury stock, at cost; 878,326 and 855,912 shares	(19,974)us-gaap_TreasuryStockValue	(19,649)us-gaap_TreasuryStockValue
Accumulated other comprehensive loss	(64,213)	(55,589)
Retained earnings	336,232	331,699
Total shareholders’ equity	792,866us-gaap_StockholdersEquity	795,480us-gaap_StockholdersEquity
Total liabilities and shareholders’ equity	$ 1,568,745	$ 1,565,694