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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549


FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended: September 30, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-12936

TITAN INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation or organization)

2701 Spruce Street, Quincy, IL
(Address of principal executive offices)

36-3228472
(I.R.S. Employer Identification No.)

62301
(Zip Code)
(217) 228-6011
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
Symbol
Name of each exchange on which registered
Common stock, $0.0001 par valueTWINew York Stock Exchange


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No

Indicate the number of shares of Titan International, Inc. outstanding: 61,376,981 shares of common stock, $0.0001 par value, as of October 31, 2020.




TITAN INTERNATIONAL, INC.

TABLE OF CONTENTS

Page



PART I. FINANCIAL INFORMATION

Item 1. Financial Statements
TITAN INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(All amounts in thousands, except per share data)
 
 Three months endedNine months ended
September 30,September 30,
 2020201920202019
Net sales$304,772 $345,905 $932,405 $1,146,876 
Cost of sales273,455 318,805 840,391 1,036,204 
Asset impairment  3,586  
Gross profit31,317 27,100 88,428 110,672 
Selling, general and administrative expenses33,451 34,954 93,849 106,605 
Research and development expenses2,240 2,309 6,782 7,470 
Royalty expense2,434 2,453 7,309 7,507 
Loss from operations(6,808)(12,616)(19,512)(10,910)
Interest expense(7,251)(8,164)(23,076)(23,751)
Foreign exchange (loss) gain(1,336)(2,266)(9,742)2,218 
Other income2,283 5,066 9,111 7,490 
Loss before income taxes(13,112)(17,980)(43,219)(24,953)
Provision for income taxes342 2,064 2,377 761 
Net loss(13,454)(20,044)(45,596)(25,714)
Net loss attributable to noncontrolling interests(811)(900)(2,422)(2,124)
Net loss attributable to Titan(12,643)(19,144)(43,174)(23,590)
   Redemption value adjustment (491) (1,928)
Net loss applicable to common shareholders$(12,643)$(19,635)$(43,174)$(25,518)
Loss per common share:    
Basic$(0.21)$(0.33)$(0.71)$(0.43)
Diluted$(0.21)$(0.33)$(0.71)$(0.43)
Average common shares and equivalents outstanding:  
Basic60,926 60,161 60,630 60,037 
Diluted60,926 60,161 60,630 60,037 
Dividends declared per common share:$ $0.005 $0.005 $0.015 
 







See accompanying Notes to Condensed Consolidated Financial Statements.
1


TITAN INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
(All amounts in thousands)

Three months ended
September 30,
 20202019
Net loss$(13,454)$(20,044)
Derivative loss(17) 
Currency translation adjustment4,275 (20,324)
Pension liability adjustments, net of tax of $45 and $79, respectively575 590 
Comprehensive loss(8,621)(39,778)
Net comprehensive loss attributable to redeemable and noncontrolling interests(1,912)(1,213)
Comprehensive loss attributable to Titan$(6,709)$(38,565)



Nine months ended
September 30,
 20202019
Net loss$(45,596)$(25,714)
Derivative loss(215) 
Currency translation adjustment(28,498)(19,280)
Pension liability adjustments, net of tax of $65 and $311, respectively1,923 1,594 
Comprehensive loss(72,386)(43,400)
Net comprehensive loss attributable to redeemable and noncontrolling interests(4,814)(897)
Comprehensive loss attributable to Titan$(67,572)$(42,503)























See accompanying Notes to Condensed Consolidated Financial Statements.
2


TITAN INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share data)
 September 30, 2020December 31, 2019
(unaudited)
Assets
Current assets  
Cash and cash equivalents$98,772 $66,799 
  Accounts receivable, net192,764 185,238 
Inventories284,231 333,356 
Assets held for sale6,640 7,203 
Prepaid and other current assets56,008 58,869 
Total current assets638,415 651,465 
Property, plant and equipment, net324,959 367,595 
Operating lease assets21,936 23,914 
Deferred income taxes1,040 2,331 
Other assets29,997 69,002 
Total assets$1,016,347 $1,114,307 
Liabilities  
Current liabilities  
Short-term debt$32,641 $61,253 
Accounts payable150,879 158,647 
Other current liabilities131,734 107,253 
Total current liabilities315,254 327,153 
Long-term debt431,789 438,469 
Deferred income taxes1,774 6,672 
Other long-term liabilities73,320 78,025 
Total liabilities822,137 850,319 
Redeemable noncontrolling interest25,000 25,000 
Equity  
Titan shareholders' equity
  Common stock ($0.0001 par value, 120,000,000 shares authorized, 61,353,590 issued at September 30, 2020 and 60,710,983 at December 31, 2019)  
Additional paid-in capital531,895 532,070 
Retained deficit(117,810)(74,334)
Treasury stock (at cost, 89,612 and 427,771 shares, respectively)(1,199)(4,234)
Accumulated other comprehensive loss(243,048)(218,651)
Total Titan shareholders’ equity169,838 234,851 
Noncontrolling interests(628)4,137 
Total equity169,210 238,988 
Total liabilities and equity$1,016,347 $1,114,307 
See accompanying Notes to Condensed Consolidated Financial Statements.
3


TITAN INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
(All amounts in thousands, except share data)
 
 Number of
common shares
Additional
paid-in
capital
Retained (deficit) earningsTreasury stockAccumulated other comprehensive (loss) incomeTotal Titan Equity Noncontrolling interestTotal Equity
Balance January 1, 201959,916,973 $519,498 $(29,048)$(7,831)$(203,571)$279,048 $(8,951)$270,097 
Net income (loss) *1,977 1,977 (636)1,341 
Currency translation adjustment, net *(5,281)(5,281)474 (4,807)
Pension liability adjustments, net of tax466 466 466 
Dividends declared(301)(301)(301)
Accounting standards adoption4,346 (4,933)(587)(587)
Redeemable noncontrolling interest activity9,437 9,437 15,445 24,882 
Redemption value adjustment(776)(776)(776)
Stock-based compensation269 269 269 
VIE distributions (1,054)(1,054)
Issuance of treasury stock under 401(k) plan29,414 (123)264 141 141 
Balance March 31, 201959,946,387 $528,305 $(23,026)$(7,567)$(213,319)$284,393 $5,278 $289,671 
Net (loss) income *(6,424)(6,424)12 (6,412)
Currency translation adjustment, net *4,785 4,785 317 5,102 
Pension liability adjustments, net of tax538 538 538 
Dividends declared(301)(301)(301)
Redemption value adjustment(661)(661)(661)
Stock-based compensation286 286 286 
VIE distributions— (450)(450)
Issuance of treasury stock under 401(k) plan53,983 (167)485 318 318 
Balance June 30, 201960,000,370 $527,763 $(29,751)$(7,082)$(207,996)$282,934 $5,157 $288,091 
Net loss *(19,144)(19,144)(680)(19,824)
Currency translation adjustment, net *(20,011)(20,011)(247)(20,258)
Pension liability adjustments, net of tax590 590 590 
Dividends declared(302)(302)(302)
Acquisition of additional interest6,203 (6,203)   
Redemption value adjustment(491)(491)(491)
Stock-based compensation100,118 347 347 347 
VIE distributions (285)(285)
Issuance of treasury stock under 401(k) plan65,987 (284)592 308 308 
Balance September 30, 201960,166,475 $533,538 $(49,197)$(6,490)$(233,620)$244,231 $3,945 $248,176 

* Net income (loss) excludes $(334), $(265) and $(220) of net loss attributable to redeemable noncontrolling interest for the three months ended March 31, 2019, June 30, 2019 and September 30, 2019, respectively. Currency translation adjustment excludes $428, $321 and $(66) of currency translation related to redeemable noncontrolling interest for the three months ended March 31, 2019, June 30, 2019 and September 30, 2019, respectively.
4


 
 Number of
common shares
Additional
paid-in
capital
Retained (deficit) earningsTreasury stockAccumulated other comprehensive (loss) incomeTotal Titan Equity Noncontrolling interestTotal Equity
Balance January 1, 202060,283,212 $532,070 $(74,334)$(4,234)$(218,651)$234,851 $4,137 $238,988 
Net loss (25,486)(25,486)(2,013)(27,499)
Currency translation adjustment, net (32,004)(32,004)(1,782)(33,786)
Pension liability adjustments, net of tax1,308 1,308 1,308 
Dividends declared(302)(302)(302)
Stock-based compensation2,500 468 22 490 490 
VIE deconsolidation (559)(559)
Issuance of stock under 401(k) plan76,280 282 282 282 
Balance March 31, 202060,361,992 $532,820 $(100,122)$(4,212)$(249,347)$179,139 $(217)$178,922 
Net (loss) income (5,045)(5,045)402 (4,643)
Currency translation adjustment, net 523 523 491 1,014 
Pension liability adjustments, net of tax40 40 40 
Unrealized loss on investment(198)(198)(198)
Stock-based compensation2,500 559 22 581 581 
Noncontrolling interest contributions— 608 608 
Issuance of treasury stock under 401(k) plan237,802 (1,802)2,135 333 333 
Balance June 30, 202060,602,294 $531,577 $(105,167)$(2,055)$(248,982)$175,373 $1,284 $176,657 
Net loss (12,643)(12,643)(811)(13,454)
Currency translation adjustment, net 5,376 5,376 (1,101)4,275 
Pension liability adjustments, net of tax575 575 575 
Unrealized loss on investment(17)(17)(17)
Stock-based compensation435,558 8 856864 864 
Issuance of common stock under 401(k) plan226,126 310 310 310 
Balance September 30, 202061,263,978 $531,895 $(117,810)$(1,199)$(243,048)$169,838 $(628)$169,210 


See accompanying Notes to Condensed Consolidated Financial Statements.
5


TITAN INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(All amounts in thousands)
Nine months ended September 30,
Cash flows from operating activities:20202019
Net loss$(45,596)(25,714)
Adjustments to reconcile net loss to net cash provided by operating activities:  
Depreciation and amortization40,376 41,347 
Asset impairment3,586  
Deferred income tax provision(3,616)(738)
Loss (gain) on sale of Wheels India Limited shares703 (4,695)
Gain on property insurance settlement(4,936) 
Stock-based compensation1,931 959 
Issuance of stock under 401(k) plan925 767 
Foreign currency translation loss (gain)9,812 (2,327)
(Increase) decrease in assets:  
Accounts receivable(22,909)16,124 
Inventories36,664 36,920 
Prepaid and other current assets(1,133)(3,073)
Other assets1,198 (1,110)
Increase (decrease) in liabilities:  
Accounts payable2,351 (24,998)
Other current liabilities28,753 3,634 
Other liabilities(678)(5,884)
Net cash provided by operating activities47,431 31,212 
Cash flows from investing activities:  
Capital expenditures(13,350)(26,254)
Payments related to redeemable noncontrolling interest (71,722)
Sale of Wheels India Limited shares32,852  
Proceeds from property insurance settlement4,936  
Other926 1,354 
Net cash provided by (used for) investing activities25,364 (96,622)
Cash flows from financing activities:  
Proceeds from borrowings85,991 124,153 
Payment on debt(116,601)(59,296)
Dividends paid(603)(901)
Other financing activities(2,723) 
Net cash (used for) provided by financing activities(33,936)63,956 
Effect of exchange rate changes on cash(6,886)(1,628)
Net increase (decrease) in cash and cash equivalents31,973 (3,082)
Cash and cash equivalents, beginning of period66,799 81,685 
Cash and cash equivalents, end of period$98,772 $78,603 
Supplemental information:
Interest paid$16,070 $18,060 
Income taxes paid, net of refunds received$6,861 $6,120 




See accompanying Notes to Condensed Consolidated Financial Statements.
6



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation
The accompanying unaudited condensed consolidated interim financial statements include the accounts of Titan International, Inc. and its subsidiaries (Titan or the Company) and have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the SEC). Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the Company's financial position as of September 30, 2020, and the results of operations and cash flows for the three months ended September 30, 2020 and 2019, and should be read in conjunction with the consolidated financial statements and the related notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 4, 2020 (the 2019 Form 10-K). All significant intercompany transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements include estimates and assumptions of management that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates.

COVID-19 pandemic
The COVID-19 pandemic continued to have an impact on the Company in the third quarter. Titan's workforce and operations have been significantly impacted as a result of government mandates in certain countries to work from home to minimize the spread of the virus. The Company’s operations were significantly curtailed during March through May 2020 in some of the countries where the Company has operations and where COVID-19 has been widespread (such as the Company’s European and Latin America locations). The Company’s operations have since resumed with additional sanitary and other protective health measures which have increased operating costs. The Company's operations may not return to historical levels in the near term, depending on the duration and severity of the COVID-19 pandemic, the length of time it takes for normal economic and operating conditions to resume, additional governmental actions that may be taken and/or extensions of time for restrictions that have been imposed to date and numerous other uncertainties.

The COVID-19 pandemic affected the Company’s operations in the third quarter, and may continue to do so indefinitely thereafter. The COVID-19 pandemic has had far reaching impacts on the Company’s business, operations, and financial results and conditions, directly and indirectly, including without limitation impacts on the health of the Company’s management and employees, customer behaviors, and on the overall economy. The scope and nature of these impacts, most of which are beyond the Company’s control, continue to evolve and the outcomes are uncertain.

Fair value of financial instruments
The Company records all financial instruments, including cash and cash equivalents, accounts receivable, notes receivable, accounts payable, other accruals, and notes payable at cost, which approximates fair value due to their short term or stated rates.  Investments in marketable equity securities are recorded at fair value.  The 6.50% senior secured notes due 2023 (senior secured notes) were carried at a cost of $396.6 million at September 30, 2020. The fair value of the senior secured notes at September 30, 2020, as obtained through an independent pricing source, was approximately $300.3 million.

Cash dividends
The Company declared cash dividends of $0.005 per share of common stock for the first quarter of 2020 and for the first three quarters of 2019. The first quarter 2020 cash dividend of $0.005 per share of common stock was paid on April 15, 2020, to shareholders of record on March 31, 2020. On June 11, 2020, the Board of Directors unanimously approved the suspension of the Company’s quarterly common stock dividend until further notice.

Reclassifications
Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. These reclassifications had no impact on net loss, shareholders’ equity or cash flows as previously reported.

New accounting standards

Recently adopted accounting standards
7



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

In June 2016, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. For trade receivables, loans, and other financial instruments, we are required to use a forward-looking expected loss model that reflects losses that are probable rather than the incurred loss model for recognizing credit losses. The standard became effective for interim and annual periods beginning after December 15, 2019. In addition, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, which provides clarity on certain aspects of the amendments in ASU 2016-13. The Company adopted this guidance prospectively on January 1, 2020 and it did not have a material effect on the Company's condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments in this update are effective for fiscal years beginning after December 15, 2019. We adopted this ASU on January 1, 2020 and it did not have a material effect on the Company's condensed consolidated financial statements.

Accounting standards issued but not yet adopted

In August 2018, the FASB issued ASU No. 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update are effective for fiscal years ending after December 15, 2020. The adoption of this guidance is not expected to have a material effect on the Company's condensed consolidated financial statements.

In March 2020, the SEC issued a final rule that amends the disclosure requirements related to certain registered securities under SEC Regulation S-X Rule 3-10 with respect to the disclosure requirements related to issuers and guarantors of guaranteed debt securities. The final rule allows registrants to provide alternative financial disclosures in either the registrant’s MD&A or financial statements, rather than the previous requirement under Rule 3-10, which required condensed consolidating financial information within the financial statements. It also simplifies the requirements in Rule 3-10 that currently must be met for a parent company to qualify for exceptions allowing it to provide alternative disclosures rather than full audited financial statements. The final rule also reduces the periods for which summarized financial information is required to be presented to the most recent (1) annual period and (2) year-to-date interim period. The final rule applies to annual reports on Form 10-K for fiscal years ending after January 4, 2021 and quarterly reports on Form 10-Q for quarterly periods ending after January 4, 2021 and registrants may voluntarily comply with the final rule before the effective date. The Company does not expect the future adoption, which is limited to disclosures only, to have a material effect on the Company’s consolidated financial statements.

2. ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following (amounts in thousands):
 September 30,
2020
December 31,
2019
Accounts receivable$196,707 $188,952 
Allowance for doubtful accounts(3,943)(3,714)
Accounts receivable, net$192,764 $185,238 
Accounts receivable are reduced by an allowance for doubtful accounts for estimated uncollectible accounts receivable, which is based upon historical experience and specific customer collection issues. Accounts are written off against the allowance account when they are determined to no longer be collectible.

8



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
3. INVENTORIES

Inventories consisted of the following (amounts in thousands):
 September 30,
2020
December 31,
2019
Raw material$77,182 $83,569 
Work-in-process35,436 48,369 
Finished goods171,613 201,418 
 $284,231 $333,356 
 
Inventories are valued at the lower of cost or net realizable value. Net realizable value is estimated based on current selling prices. Inventory costs are calculated using the first-in, first-out (FIFO) method or average cost method. Estimated provisions are established for slow-moving and obsolete inventory.


4. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consisted of the following (amounts in thousands):
 September 30,
2020
December 31,
2019
Land and improvements$41,920 $44,386 
Buildings and improvements252,654 249,168 
Machinery and equipment588,497 605,205 
Tools, dies and molds104,142 113,603 
Construction-in-process12,241 16,237 
 999,454 1,028,599 
Less accumulated depreciation(674,495)(661,004)
 $324,959 $367,595 
 
Depreciation on property, plant and equipment for the nine months ended September 30, 2020 and 2019, totaled $37.7 million and $38.9 million, respectively.

The Company recorded a $2.6 million asset impairment charge during the nine months ended September 30, 2020 related to certain machinery and equipment located at Titan Tire Reclamation Corporation (TTRC) in Canada as a result of market declines, which indicated the remaining book value of the equipment is more than the fair market value.

In the second quarter of 2020, the Company took steps towards the finalization of the closure of its wheel operations in Saltville, Virginia, with plans for completion by the end of the fourth quarter of 2020. As a part of this process, the Company expects to incur disposal costs related to the closure but an estimated amount or range of amounts has not yet been determined.  There are approximately $0.5 million of net property, plant and equipment at this location.

In the third quarter of 2020, the Company received several potential offers for the sale of its Brownsville, Texas facility. The Company expects to enter into a sale agreement with a potential buyer during the fourth quarter of 2020. The Company reclassified the building and related assets of its Brownsville, Texas facility totaling $6.6 million to Assets held for sale on its Condensed Consolidated Balance Sheets as of September 30, 2020.
9



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
5. INTANGIBLE ASSETS, NET

The components of intangible assets consisted of the following (amounts in thousands):
Weighted Average Useful Lives
(in years)
September 30, 2020
September 30,
2020
December 31,
2019
Amortizable intangible assets:
     Customer relationships6.92$12,211 $12,629 
     Patents, trademarks and other9.459,884 11,598 
          Total at cost22,095 24,227 
     Less accumulated amortization(14,484)(14,461)
$7,611 $9,766 
Amortization related to intangible assets for the nine months ended September 30, 2020 and 2019, totaled $1.6 million and $1.5 million, respectively. Intangible assets are included as a component of other assets in the Condensed Consolidated Balance Sheets.

The estimated aggregate amortization expense at September 30, 2020, for each of the years (or other periods) set forth below was as follows (amounts in thousands):
October 1 - December 31, 2020$485 
20211,305 
2022958 
2023958 
2024957 
Thereafter2,948 
 $7,611 


6. WARRANTY

Changes in the warranty liability during the nine months ended September 30, 2020 and 2019, respectively, consisted of the following (amounts in thousands):
 20202019
Warranty liability, January 1$14,334 $16,327 
Provision for warranty liabilities4,060 3,599 
Warranty payments made(4,346)(4,969)
Warranty liability, September 30$14,048 $14,957 

The Company provides limited warranties on workmanship on its products in all market segments. The majority of the Company’s products are subject to a limited warranty that ranges between less than one year and ten years, with certain product warranties being prorated after the first year. The Company calculates a provision for warranty expense based on past warranty experience. Warranty accruals are included as a component of other current liabilities on the Condensed Consolidated Balance Sheets.

10



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
7. DEBT

Long-term debt consisted of the following (amounts in thousands):
September 30, 2020
Principal BalanceUnamortized Debt IssuanceNet Carrying Amount
6.50% senior secured notes due 2023$400,000 $(3,358)$396,642 
Titan Europe credit facilities47,457  47,457 
Revolving credit facility   
Other debt20,331  20,331 
     Total debt467,788 (3,358)464,430 
Less amounts due within one year32,641  32,641 
     Total long-term debt$435,147 $(3,358)$431,789 
December 31, 2019
Principal BalanceUnamortized Debt IssuanceNet Carrying Amount
6.50% senior secured notes due 2023$400,000 $(4,040)$395,960 
Titan Europe credit facilities43,591  43,591 
Revolving credit facility36,000  36,000 
Other debt24,171  24,171 
     Total debt503,762 (4,040)499,722 
Less amounts due within one year61,253  61,253 
     Total long-term debt$442,509 $(4,040)$438,469 

Aggregate principal maturities of long-term debt at September 30, 2020, for each of the years (or other periods) set forth below were as follows (amounts in thousands):
October 1 - December 31, 2020$16,853 
202123,207 
20229,954 
2023410,945 
20246,158 
Thereafter671 
 $467,788 
6.50% senior secured notes due 2023
The senior secured notes are due in November 2023. Including the impact of debt issuance costs, these notes had an effective yield of 6.79% at issuance. These notes are secured by the land and buildings of the following subsidiaries of the Company:  Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, and Titan Wheel Corporation of Illinois.

Titan Europe credit facilities
The Titan Europe credit facilities include borrowings from various institutions totaling $47.5 million in aggregate principal amount at September 30, 2020. Maturity dates on this debt range from less than one year to nine years. The Titan Europe facilities are secured by the assets of Titan's subsidiaries in Italy, Spain, Germany, and Brazil.



11



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Revolving credit facility
The Company has a $125 million revolving credit facility with BMO Harris Bank N.A., as agent, and other financial institutions party thereto. The credit facility is collateralized by accounts receivable and inventory of certain of the Company’s domestic subsidiaries and is scheduled to mature in February 2022. From time to time Titan's availability under this credit facility may be less than $125 million as a result of outstanding letters of credit and eligible accounts receivable and inventory balances at certain of its domestic subsidiaries. At September 30, 2020, there were no outstanding borrowings under the credit facility and $19.7 million in outstanding letters of credit, and the amount available for borrowing totaled $61.4 million.

Other debt
The Company has working capital loans at Titan Pneus do Brasil Ltda and Voltyre-Prom at various interest rates, which totaled $11.8 million and $6.9 million at September 30, 2020, respectively. Maturity dates on this debt range from less than one year to three years.


8. REDEEMABLE NONCONTROLLING INTEREST

The Company, in partnership with One Equity Partners (OEP) and the Russian Direct Investment Fund (RDIF), owned all of the equity interests in Voltyre-Prom, a leading producer of agricultural and industrial tires in Volgograd, Russia. The Company is party to a shareholders' agreement with OEP and RDIF (Shareholders' Agreement) which was entered into in connection with the acquisition of Voltyre-Prom. The agreement contains a settlement put option which was exercisable during a six-month period beginning July 9, 2018. The settlement put option required Titan to purchase the equity interests from OEP and RDIF in Voltyre-Prom with cash or Titan common stock, at a value set by the agreement. The value set by the agreement was the greater of: the aggregate of the investment of the selling party and an amount representing an internal rate of return of 8%, or the last twelve months of EBITDA multiplied by 5.5 less net debt times the selling party's ownership percentage.

On November 14, 2018, the Company received notification of exercise of the put option from RDIF. On February 11, 2019, the Company entered into a definitive agreement (the "Agreement") with an affiliate of RDIF relating to the put option that was exercised by RDIF. The transactions contemplated by the Agreement closed on February 22, 2019. Under the terms of the Agreement, in full satisfaction of the settlement put option that was exercised by RDIF, Titan paid $25 million in cash to RDIF at the closing of the transaction, and agreed, subject to the completion of regulatory approval, to issue 4,032,259 shares of restricted Titan common stock to RDIF in a private placement. Due to pending regulatory approval, the issuance of the shares of restricted Titan common stock pursuant to the Agreement was not completed as of September 30, 2020. Immediately following the closing, RDIF continued to own the same interest in Voltyre-Prom, subject to the terms of the Agreement and the Shareholders’ Agreement. Titan has retained the right to buy back the Titan shares from RDIF for $25 million until February 12, 2022 and, if the stock buyback is consummated within the first year, at the time of such buyback, RDIF would be required to convey to Titan, based on current ownership, a 10.71% interest in Voltyre-Prom, resulting in RDIF reducing its interest in Voltyre-Prom from 35.7% to 25%.

On January 8, 2019, the Company received notification of exercise of the put option from OEP. During the second quarter of 2019, the Company made a payment to OEP in the amount of $16.0 million representing the majority of the interest on the amount due to OEP with respect to the put option. On July 30, 2019, Titan Luxembourg S.à r.l. (the “Titan Purchaser”), a subsidiary of the Company, entered into a sale purchase agreement (the “OEP Agreement”) with subsidiaries of OEP, relating to the settlement put option under the Shareholders’ Agreement that was exercised by OEP. Pursuant to the terms of the OEP Agreement, on July 31, 2019, the Titan Purchaser paid to OEP $30.7 million in cash, which, together with the Titan Purchaser’s prior payment to OEP of $16.0 million during the second quarter of 2019, were made in full satisfaction of the settlement put option exercised by OEP under the Shareholders’ Agreement. Immediately following the closing, OEP ceased to have any ownership interests in, and the Titan Purchaser and RDIF owned 64.3% and 35.7%, respectively, of, Voltyre-Prom.

As of September 30, 2020, the value of the redeemable noncontrolling interest held by RDIF was recorded at $25 million, the value of the shares of restricted stock to be issued pursuant to the terms of the agreement.

12



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
The following is a reconciliation of redeemable noncontrolling interest as of September 30, 2020 and 2019 (amounts in thousands):
20202019
Balance at January 1$25,000 $119,813 
   Reclassification as a result of Agreement regarding put option (49,883)
   Payment of interest on redeemable noncontrolling interest (46,722)
   Loss attributable to redeemable noncontrolling interest (819)
   Currency translation 683 
   Redemption value adjustment 1,928 
Balance at September 30,$25,000 $25,000 

This obligation represents the value of the restricted common stock due to RDIF on September 30, 2020, and is presented in the Condensed Consolidated Balance Sheets in redeemable noncontrolling interest, which is treated as mezzanine equity.

9. LEASES

The Company leases certain buildings and equipment under both operating and finance leases.  Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under FASB Accounting Standards Codification Topic 842 "Leases," the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit interest rate, the Company used its incremental borrowing rate (6.79%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statement of Operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the Condensed Consolidated Statement of Operations. Short-term operating leases, which have an initial term of twelve months or less, are not recorded on the Condensed Consolidated Balance Sheets.
13



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Supplemental balance sheet information related to leases was as follows (amounts in thousands):
Balance Sheet ClassificationSeptember 30, 2020December 31, 2019
Operating lease ROU assetsOperating lease assets$21,936 $23,914 
Operating lease current liabilitiesOther current liabilities$6,798 $6,729 
Operating lease long-term liabilitiesOther long-term liabilities15,126 17,360 
    Total operating lease liabilities$21,924 $24,089 
Finance lease, grossProperty, plant & equipment, net$6,374 $6,684 
Finance lease accumulated depreciationProperty, plant & equipment, net(2,837)(2,194)
   Finance lease, net$3,537 $4,490 
Finance lease current liabilitiesOther current liabilities$871 $1,110 
Finance lease long-term liabilitiesOther long-term liabilities3,118 3,770 
   Total finance lease liabilities$3,989 $4,880 
At September 30, 2020, maturity of lease liabilities were as follows (amounts in thousands):
Operating LeasesFinance Leases
October 1 - December 31, 2020$1,936 $424 
20216,540 1,667 
20225,101 1,580 
20233,477 1,135 
20242,083 426 
Thereafter3,698 197 
Total lease payments$22,835 $5,429 
Less imputed interest911 1,440 
$21,924 $3,989 
Weighted average remaining lease term (in years)4.283.11
Supplemental cash flow information related to leases for the nine months ended September 30, 2020 were as follows: operating cash flows from operating leases were $5.8 million and operating cash flows from finance leases were $0.3 million.
14



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
10. EMPLOYEE BENEFIT PLANS

The Company has three frozen defined benefit pension plans covering certain employees or former employees of three U.S. subsidiaries. The Company also has pension plans covering certain employees of several foreign subsidiaries. The Company also sponsors a number of defined contribution plans in the U.S. and at foreign subsidiaries. The Company contributed approximately $1.4 million to the pension plans during the nine months ended September 30, 2020, and expects to contribute approximately $0.7 million to the pension plans during the remainder of 2020.
The components of net periodic pension cost consisted of the following for the periods set forth below (amounts in thousands):
Three months endedNine months ended
September 30,September 30,
2020201920202019
Service cost$200 $228 $728 $658 
Interest cost857 1,075 2,595 3,304 
Expected return on assets(1,360)(1,186)(4,078)(3,563)
Amortization of unrecognized prior service cost 56  169 
Amortization of net unrecognized loss696 766 2,088 2,296 
      Net periodic pension cost$393 $939 $1,333 $2,864 
Service cost is recorded as cost of sales in the Condensed Consolidated Statement of Operations while all other components are recorded in other income.


11. VARIABLE INTEREST ENTITIES

The Company holds a variable interest in two joint ventures for which the Company is the primary beneficiary. These joint ventures operate distribution facilities that primarily distribute mining products. Titan is the 50% owner of one of these distribution facilities, which is located in Canada, and the 40% owner of the other such facility, which is located in Australia. The Company’s variable interests in these two joint ventures relate to sales of Titan products to these entities, consigned inventory, and working capital loans. Titan also is party to a joint venture that is the consortium that owns Voltyre-Prom, of which Titan originally was a 43% owner. On July 31, 2019, however, Titan purchased additional shares resulting in a 64.3% ownership in the consortium and the joint venture became a majority owned entity and is no longer a variable interest entity (a VIE). See Note 8 for additional information.
The Company also held a variable interest in two other entities for which Titan was the primary beneficiary. Each of these entities provided specific manufacturing related services at the Company's Tennessee facility. Titan's variable interest in these entities relates to financial support to the entities through providing many of the assets used by these entities in their business. The Company owns no equity in these entities. In March 2020, the Company delivered a notice of termination of the supply agreement with these entities and the Company no longer holds a variable interest in them.
As the primary beneficiary of these VIEs, the VIEs’ assets, liabilities, and results of operations are included in the Company’s condensed consolidated financial statements. The other equity holders’ interests are reflected in “Net income (loss) attributable to noncontrolling interests” in the Condensed Consolidated Statements of Operations and “Noncontrolling interests” in the Condensed Consolidated Balance Sheets.
15



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
The following table summarizes the carrying amount of the VIEs’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets:
 September 30,
2020
December 31, 2019
Cash and cash equivalents$1,640 $2,190 
Inventory1,054 1,070 
Other current assets1,320 1,027 
Property, plant and equipment, net1,231 1,327 
   Total assets$5,245 $5,614 
Current liabilities$54 $1,110 
Other long-term liabilities960 579 
  Total liabilities$1,014 $1,689 
All assets in the above table can only be used to settle obligations of the consolidated VIE to which the respective assets relate. Liabilities are nonrecourse obligations. Amounts presented in the table above are adjusted for intercompany eliminations.

The Company holds variable interests in certain VIEs that are not consolidated because Titan is not the primary beneficiary. The Company's involvement with these entities is in the form of direct equity interests and prepayments related to purchases of materials. The maximum exposure to loss as reflected in the table below represents the loss of assets recognized by Titan relating to non-consolidated entities and amounts due to the non-consolidated assets. The assets and liabilities recognized in Titan's Condensed Consolidated Balance Sheets related to Titan's interest in these non-consolidated VIEs and the Company's maximum exposure to loss related to non-consolidated VIEs as of the dates set forth below were as follows (amounts in thousands):
 September 30, 2020December 31, 2019
Investments$5,177 $4,973 
Other current assets  
     Total VIE assets5,177 4,973 
Accounts payable1,120 2,006 
  Maximum exposure to loss$6,297 $6,979 


12. RESTRUCTURING ACTIVITIES

As part of the North American and Corporate Restructuring plan, which was approved in the second quarter of 2020, certain positions have been eliminated to continue ongoing operational improvement initiatives designed to prioritize resource allocation, reduce costs and drive profitability for the Company on a global basis.

The Company incurred $0.0 million and $0.4 million during the three and nine months ended September 30, 2020, respectively, for severance costs related to the rationalization of certain Corporate positions. The Company paid the severance amounts during the third quarter of 2020. There were no amounts recorded for the workforce reduction for the three and nine months ended September 30, 2019.

As part of the closure of the Saltville, Virginia wheel operations, then expected to be completed during the third quarter of 2020 and currently expected to be completed during the fourth quarter of 2020, the Company recorded an inventory impairment charge of $1.0 million for the nine months ended September 30, 2020.

16



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
13. ROYALTY EXPENSE

The Company has trademark license agreements with The Goodyear Tire & Rubber Company to manufacture and sell certain farm tires under the Goodyear brand. These agreements cover sales in North America, Latin America, Europe, the Middle East, Africa, Russia, and other Commonwealth of Independent States countries. Each of these agreements is scheduled to expire in 2025. Royalty expenses were $2.4 million and $2.5 million for the three months ended September 30, 2020 and 2019, respectively, and $7.3 million and $7.5 million for the nine months ended September 30, 2020 and 2019, respectively.

14. OTHER INCOME

Other income consisted of the following (amounts in thousands):
Three months endedNine months ended
September 30,September 30,
 2020201920202019
Gain on property insurance settlement (1)$ $ $4,936 $ 
Gain (loss) on sale of Wheels India Limited shares 4,695 (703)4,695 
Equity investment income227 445 596 2,294 
(Loss) gain on sale of assets(58)(59)834 708 
Building rental income512 362 1,226 1,096 
Government subsidies for COVID-19 relief 892  1,402  
Other income (expense)710 (377)820 (1,303)
 $2,283 $5,066 $9,111 $7,490 

(1) The gain on property insurance settlement relates to the receipt of insurance proceeds during the three months ended March 31, 2020 for a 2017 fire that occurred at a facility of TTRC, a subsidiary of the Company, located in Fort McMurray in Alberta, Canada.


15. INCOME TAXES

The Company recorded income tax expense of $0.3 million and income tax benefit of $2.1 million for the three months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020 and 2019, the Company recorded income tax expense of $2.4 million and income tax benefit of $0.8 million, respectively. The Company's effective income tax rate was (3)% and (11)% for the three months ended September 30, 2020 and 2019, respectively, and (5)% and (3)% for the nine months ended September 30, 2020 and 2019, respectively.

The Company’s 2020 and 2019 income tax expense and rates differed from the amount of income tax determined by applying the U.S. Federal income tax rate to pre-tax income primarily as a result of U.S. and certain foreign jurisdictions that incurred a full valuation allowance on deferred tax assets created by current year projected losses and partially offset by a reduction of the liability for unrecognized tax positions. In addition, there were non-deductible royalty expenses and statutorily required income adjustments made in certain foreign jurisdictions that negatively impacted the tax rate for the nine months ended September 30, 2020 and 2019.

The Company continues to monitor the realization of its deferred tax assets and assesses the need for a valuation allowance. The Company analyzes available positive and negative evidence to determine if a valuation allowance is needed based on the weight of the evidence. This objectively verifiable evidence primarily includes the past three years' profit and loss positions. This process requires management to make estimates, assumptions, and judgments that are uncertain in nature. The Company has established valuation allowances with respect to deferred tax assets in the U.S. and certain foreign jurisdictions and continues to monitor and assess potential valuation allowances in all its jurisdictions.

17



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
The 2017 Tax Cuts and Jobs Act was enacted on December 22, 2017 and created a new requirement that certain income (i.e., global intangible low taxed income, hereinafter referred to as GILTI) earned by foreign subsidiaries must be included currently in the gross income of the U.S. shareholder. For 2020 and 2019, the Company has estimated an amount of GILTI income that is to be included in the calculation of 2020 and 2019 income tax expense. This GILTI income inclusion; however, is fully offset by a change in the valuation allowance.

On March 27, 2020, the U.S. government passed the CARES Act (the "CARES Act"), which provides tax relief to assist companies dealing with the effects of the COVID-19 pandemic. The Company does not expect the impact of the CARES Act to be material to the Company’s financial position or results of operations, except for the deferral of Social Security payroll taxes, which will benefit the Company's operating cash flows through the end of calendar year 2020.

16. EARNINGS PER SHARE

Earnings per share (EPS) were as follows (amounts in thousands, except per share data):
Three months endedNine months ended
September 30,September 30,
2020201920202019
Net loss attributable to Titan$(12,643)$(19,144)$(43,174)$(23,590)
   Redemption value adjustment (491) (1,928)
Net loss applicable to common shareholders$(12,643)$(19,635)$(43,174)$(25,518)
Determination of shares:
   Weighted average shares outstanding (basic)60,926 60,161 60,630 60,037 
   Effect of equity awards    
   Weighted average shares outstanding (diluted)60,926 60,161 60,630 60,037 
Earnings per share:
   Basic and diluted(0.21)(0.33)(0.71)(0.43)
The effect of equity awards has been excluded for the three and nine months ended September 30, 2020, as the effect would have been antidilutive. The weighted average share amount excluded for equity awards for the three and nine months ended September 30, 2020, was 539 thousand and 261 thousand, respectively.

18



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
17. LITIGATION

The Company is a party to routine legal proceedings arising out of the normal course of business. Due to the difficult nature of predicting unresolved and future legal claims, the Company cannot anticipate or predict the material adverse effect on its consolidated financial condition, results of operations, or cash flows as a result of efforts to comply with, or liabilities pertaining to, legal judgments.

At September 30, 2020, two of Titan’s subsidiaries were involved in litigation concerning environmental laws and regulations.

In June 2015, Titan Tire Corporation (Titan Tire) and Dico, Inc. (Dico) appealed an order from the U.S. District Court for the South District of Iowa granting the federal government’s motion for summary judgment that found Dico liable for violating the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) and an Environmental Protection Agency (EPA) Administrative Order and awarded response costs, civil penalties, and punitive damages.

In December 2015, the U.S. Court of Appeals for the Eighth Circuit reversed the District Court’s summary judgment order with respect to “arranger” liability for Titan Tire and Dico under CERCLA and the imposition of punitive damages against Dico for violating the EPA Administrative Order, but affirmed the summary judgment order imposing civil penalties in the amount of $1.62 million against Dico for violating the EPA Administrative Order. The case was remanded to the District Court for a new trial on the remaining issues.

The trial occurred in April 2017. On September 5, 2017, the District Court issued an order: (a) concluding Titan Tire and Dico arranged for the disposal of a hazardous substance in violation of 42 U.S.C. § 9607(a); (b) holding Titan Tire and Dico jointly and severally liable for $5.45 million in response costs previously incurred and reported by the United States relating to the alleged violation, including enforcement costs and attorney’s fees; and (c) awarding a declaratory judgment holding Titan Tire and Dico jointly and severally liable for all additional response costs previously incurred but not yet reported or to be incurred in the future, including enforcement costs and attorney’s fees. The District Court also held Dico liable for $5.45 million in punitive damages under 42 U.S.C. § 9607(c)(3) for violating a unilateral administrative order. The punitive damages award does not apply to Titan Tire. The Company accrued a contingent liability of $6.5 million, representing $5.45 million in costs incurred by the United States and $1.05 million of additional response costs, for this order in the quarter ended September 30, 2017.

During the third quarter of 2020, the Company accrued an incremental contingent legal accrual of $5.0 million related to the anticipated settlement of the Dico case. As of September 30, 2020, the $11.5 million contingent liability remains outstanding.

Titan Tire and Dico appealed the case to the U.S. Court of Appeals for the Eighth Circuit. On April 11, 2019, the U.S. Court of Appeals for the Eighth Circuit affirmed the District Court’s September 5, 2017, order. Thereafter, Dico and Titan Tire filed a petition for rehearing with the U.S. Court of Appeals for the Eighth Circuit, which was denied in August 2019. As a result of the current judgment in favor of the United States, and pursuant to Iowa Code § 624.23, a judgment lien exists over Titan Tire’s real property in the State of Iowa. Titan Tire maintains a supersedeas bond in the amount of $6.0 million relating to the judgment. The United States indicated that it does not currently intend to take steps to execute on this judgment lien in light of ongoing settlement discussions between the parties. However, there can be no assurance that the parties will settle this matter on terms acceptable to the parties.

Following settlement negotiations with the U.S. federal government and the City of Des Moines, a tentative agreement for a global settlement was reached in September 2020 which has been reduced to a Consent Decree, executed by all parties. The Consent Decree contemplates total cash payments by Titan Tire to the federal government in the amount of $11.5 million, with $9.0 million due and payable within 30 days of the settlement becoming final, $1.5 million (plus interest at a rate of 1.75% per annum) due and payable within one year of the settlement becoming final and $1.0 million (plus interest at a rate of 1.75% per annum) due and payable within two years of the settlement becoming final. The Consent Decree has been submitted to the District Court, and on November 2, 2020 the District Court issued an order directing the parties to file a joint submission to the court presenting information regarding, among other things, the negotiation process for the global settlement, risks associated with the U.S. federal government seeking to enforce a judgment against Titan International under a veil-piercing theory and expected costs associated with environmental remediation at the property. No hearing date has been set by the District Court and the settlement remains pending and contingent upon District Court approval. Accordingly, there can be no assurance that the parties will settle this matter on the terms set forth in the Consent Decree or otherwise on terms acceptable to the parties.
19



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
18. SEGMENT INFORMATION

The Company has aggregated its operating units into reportable segments based on its three customer markets: agricultural, earthmoving/construction, and consumer. These segments are based on the information used by the Chief Executive Officer to make certain operating decisions, allocate portions of capital expenditures, and assess segment performance. Segment external sales, expenses, and income from operations are determined based on the results of operations for the operating units of the Company's manufacturing facilities. Segment assets are generally determined on the basis of the tangible assets located at such operating units’ manufacturing facilities and the intangible assets associated with the acquisitions of such operating units. However, certain operating units’ property, plant and equipment balances are carried at the corporate level.

Titan is organized primarily on the basis of products being included in three market segments, with each reportable segment including wheels, tires, wheel/tire assemblies, and undercarriage systems and components.
The table below presents information about certain operating results, separated by market segments, for each of the three and nine months ended September 30, 2020 and 2019 (amounts in thousands):
Three months endedNine months ended
September 30,September 30,
 2020201920202019
Net sales  
Agricultural$153,067 $156,625 $473,272 $512,639 
Earthmoving/construction123,227 155,659 372,606 517,186 
Consumer28,478 33,621 86,527 117,051 
 $304,772 $345,905 $932,405 $1,146,876 
Gross profit  
Agricultural$16,191 $10,426 $45,830 $46,798 
Earthmoving/construction12,409 12,935 34,777 50,806 
Consumer2,717 3,739 7,821 13,068 
$31,317 $27,100 $88,428 $110,672 
(Loss) income from operations  
Agricultural$3,091 $(1,230)$5,389 $17,062 
Earthmoving/construction656 (2,938)(8,240)8,293 
Consumer(88)(229)1,042 3,120 
Corporate & Unallocated(10,467)(8,219)(17,703)(39,385)
      Loss from operations(6,808)(12,616)(19,512)(10,910)
Interest expense(7,251)(8,164)(23,076)(23,751)
Foreign exchange (loss) gain(1,336)(2,266)(9,742)2,218 
Other income, net2,283 5,066 9,111 7,490 
      Loss before income taxes$(13,112)$(17,980)$(43,219)$(24,953)
Assets by segment were as follows as of the dates set forth below (amounts in thousands):
September 30,
2020
December 31,
2019
Total assets  
Agricultural$437,994 $423,955 
Earthmoving/construction458,890 496,988 
Consumer94,092 123,320 
Corporate & Unallocated25,371 70,044 
 $1,016,347 $1,114,307 
20



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
19. RELATED PARTY TRANSACTIONS

The Company sells products and pays commissions to companies controlled by persons related to the Chairman of the Board of Directors of the Company, Mr. Maurice Taylor. The related party is Mr. Fred Taylor, who is Mr. Maurice Taylor’s brother. The companies with which Mr. Fred Taylor is associated that do business with Titan include the following: Blacksmith OTR, LLC; F.B.T. Enterprises, Inc.; Green Carbon, Inc.; Silverstone, Inc.; and OTR Wheel Engineering, Inc.  Sales of Titan products to these companies were approximately $0.1 million and $0.6 million for the three and nine months ended September 30, 2020, respectively, and approximately $0.3 million and $0.9 million for the three and nine months ended September 30, 2019, respectively. Titan had trade receivables due from these companies of approximately $0.2 million at September 30, 2020, and approximately $0.2 million at December 31, 2019.  Sales commissions paid to the above companies were approximately $0.3 million and $1.0 million for the three and nine months ended September 30, 2020 as compared to $0.4 million and $1.1 million for the three and nine months ended September 30, 2019.


20. ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss consisted of the following (amounts in thousands):
 Currency
Translation
Adjustments
Gain (Loss) on
Derivatives
Unrecognized
Losses and
Prior Service
Cost
 
 
Total
Balance at July 1, 2020$(223,988)$(198)$(24,796)$(248,982)
Currency translation adjustments5,376 — — 5,376 
Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $45— — 575 575 
Derivative gain (loss)— (17)— (17)
Balance at September 30, 2020$(218,612)$(215)$(24,221)$(243,048)

 Currency
Translation
Adjustments
Gain (Loss) on
Derivatives
Unrecognized
Losses and
Prior Service
Cost
 
 
Total
Balance at January 1, 2020$(192,507)$ $(26,144)$(218,651)
Currency translation adjustments (1)(26,105)— — (26,105)
Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $65— — 1,923 1,923 
Derivative gain (loss)— (215)— (215)
Balance at September 30, 2020$(218,612)$(215)$(24,221)$(243,048)

(1) The increase in currency translation adjustments for the nine months ended September 30, 2020 was due to foreign currency rate fluctuations and also due to the settlement of certain intercompany loans during the quarter.

21



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

21. 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 SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$ $119,850 $305,097 $(120,175)$304,772 
Cost of sales202 108,642 284,786 (120,175)273,455 
Asset impairment     
Gross (loss) profit(202)11,208 20,311  31,317 
Selling, general and administrative expenses5,180 2,593 25,678  33,451 
Research and development expenses209 769 1,262  2,240 
Royalty expense654 855 925  2,434 
(Loss) income from operations(6,245)6,991 (7,554) (6,808)
Interest (expense) income(6,986)96 (361) (7,251)
Intercompany interest income (expense)527 530 (1,057)  
Foreign exchange loss (99)(1,237) (1,336)
Other income322 119 1,842  2,283 
(Loss) income before income taxes(12,382)7,637 (8,367) (13,112)
Provision for income taxes(1,851)79 2,114  342 
Equity in earnings of subsidiaries(2,923) 3,315 (392) 
Net (loss) income(13,454)7,558 (7,166)(392)(13,454)
Net loss attributable to noncontrolling interests  (811) (811)
Net (loss) income attributable to Titan$(13,454)$7,558 $(6,355)$(392)$(12,643)

22



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Amounts in thousands)Condensed Consolidating Statements of Operations
For the Three Months Ended September 30, 2019
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$ $141,133 $345,992 $(141,220)$345,905 
Cost of sales107 134,169 325,749 (141,220)318,805 
Gross (loss) profit(107)6,964 20,243  27,100 
Selling, general and administrative expenses1,513 12,094 21,347  34,954 
Research and development expenses276 678 1,355  2,309 
Royalty expense679 860 914  2,453 
Loss from operations(2,575)(6,668)(3,373) (12,616)
Interest (expense) income(7,281)5 (888) (8,164)
Intercompany interest income (expense)884 841 (1,725)  
Foreign exchange loss(47)(152)(2,067) (2,266)
Other income (expense)358 (528)5,236  5,066 
Loss before income taxes(8,661)(6,502)(2,817) (17,980)
Provision for income taxes635 126 1,303  2,064 
Equity in earnings of subsidiaries(10,748) (1,851)12,599  
Net (loss) income(20,044)(6,628)(5,971)12,599 (20,044)
Net loss attributable to noncontrolling interests  (900) (900)
Net (loss) income attributable to Titan$(20,044)$(6,628)$(5,071)$12,599 $(19,144)


23



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Amounts in thousands) Condensed Consolidating Statements of Operations
For the Nine Months Ended September 30, 2020
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$ $406,810 $933,657 $(408,062)$932,405 
Cost of sales525 367,998 879,930 (408,062)840,391 
Asset impairment1,007  2,579  3,586 
Gross (loss) profit(1,532)38,812 51,148  88,428 
Selling, general and administrative expenses16,519 6,738 70,592  93,849 
Research and development expenses664 2,239 3,879  6,782 
Royalty expense2,147 2,694 2,468  7,309 
(Loss) income from operations(20,862)27,141 (25,791) (19,512)
Interest (expense) income(21,241)81 (1,916) (23,076)
Intercompany interest income (expense)1,586 1,709 (3,295)  
Foreign exchange loss (981)(8,761) (9,742)
Other income (expense)1,330 (142)7,923  9,111 
(Loss) income before income taxes(39,187)27,808 (31,840) (43,219)
Provision for income taxes(3,764)256 5,885  2,377 
Equity in earnings of subsidiaries(10,173) 17,384 (7,211) 
Net (loss) income(45,596)27,552 (20,341)(7,211)(45,596)
Net loss attributable to noncontrolling interests  (2,422) (2,422)
Net (loss) income attributable to Titan$(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 SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$ $475,652 $1,147,568 $(476,344)$1,146,876 
Cost of sales248 438,535 1,073,765 (476,344)1,036,204 
Gross (loss) profit(248)37,117 73,803  110,672 
Selling, general and administrative expenses4,694 35,299 66,612  106,605 
Research and development expenses768 2,263 4,439  7,470 
Royalty expense1,743 3,005 2,759  7,507 
(Loss) income from operations(7,453)(3,450)(7) (10,910)
Interest (expense) income(21,311)5 (2,445) (23,751)
Intercompany interest income (expense)2,158 2,731 (4,889)  
Foreign exchange loss (gain)(69)(156)2,443  2,218 
Other income (expense)1,162 (1,606)7,934  7,490 
(Loss) income before income taxes(25,513)(2,476)3,036  (24,953)
Provision for income taxes(6,390)410 6,741  761 
Equity in earnings of subsidiaries(6,591) (1,320)7,911  
Net (loss) income(25,714)(2,886)(5,025)7,911 (25,714)
Net loss attributable to noncontrolling interests  (2,124) (2,124)
Net (loss) income attributable to Titan$(25,714)$(2,886)$(2,901)$7,911 $(23,590)
24



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

(Amounts in thousands)Condensed Consolidating Statements of Comprehensive Loss
For the Three Months Ended September 30, 2020
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net (loss) income$(13,454)$7,558 $(7,166)$(392)$(13,454)
Derivative (loss) gain(17) (17)17 (17)
Currency translation adjustment4,275  4,275 (4,275)4,275 
Pension liability adjustments, net of tax575 667 (92)(575)575 
Comprehensive (loss) income (8,621)8,225 (3,000)(5,225)(8,621)
Net comprehensive loss attributable to redeemable and noncontrolling interests  (1,912) (1,912)
Comprehensive (loss) income attributable to Titan$(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 SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net (loss) income$(20,044)$(6,628)$(5,971)$12,599 $(20,044)
Currency translation adjustment(20,324) (20,324)20,324 (20,324)
Pension liability adjustments, net of tax590 753 (163)(590)590 
Comprehensive (loss) income (39,778)(5,875)(26,458)32,333 (39,778)
Net comprehensive loss attributable to redeemable and noncontrolling interests  (1,213) (1,213)
Comprehensive (loss) income attributable to Titan$(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 SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net (loss) income$(45,596)$27,552 $(20,341)$(7,211)$(45,596)
Derivative (loss) gain(215) (215)215 (215)
Currency translation adjustment(28,498) (28,498)28,498 (28,498)
Pension liability adjustments, net of tax1,923 2,001 (78)(1,923)1,923 
Comprehensive (loss) income (72,386)29,553 (49,132)19,579 (72,386)
Net comprehensive loss attributable to redeemable and noncontrolling interests  (4,814) (4,814)
Comprehensive (loss) income attributable to Titan$(72,386)$29,553 $(44,318)$19,579 $(67,572)
25



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Amounts in thousands)Condensed Consolidating Statements of Comprehensive Loss
For the Nine Months Ended September 30, 2019
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net (loss) income$(25,714)$(2,886)$(5,025)$7,911 $(25,714)
Currency translation adjustment(19,280) (19,280)19,280 (19,280)
Pension liability adjustments, net of tax1,594 2,256 (662)(1,594)1,594 
Comprehensive (loss) income (43,400)(630)(24,967)25,597 (43,400)
Net comprehensive loss attributable to redeemable and noncontrolling interests  (897) (897)
Comprehensive (loss) income attributable to Titan$(43,400)$(630)$(24,070)$25,597 $(42,503)


(Amounts in thousands)Condensed Consolidating Balance Sheets
September 30, 2020
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
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 sale6,640    6,640 
Prepaid and other current assets4,756 16,655 34,597  56,008 
Total current assets16,398 48,421 573,596  638,415 
Property, plant and equipment, net3,784 84,724 236,451  324,959 
Investment in subsidiaries585,724  70,501 (656,225) 
Other assets2,259 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 payable2,343 23,542 124,994  150,879 
Other current liabilities28,465 22,854 80,415  131,734 
Total current liabilities30,808 46,396 238,050  315,254 
Long-term debt396,642  35,147  431,789 
Other long-term liabilities2,231 18,037 54,826  75,094 
Intercompany accounts(32,322)(446,212)478,534   
Redeemable noncontrolling interest  25,000  25,000 
Titan shareholders' equity210,806 519,980 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 
26



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Amounts in thousands)Condensed Consolidating Balance Sheets
December 31, 2019
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
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 sale7,203    7,203 
Prepaid and other current assets3,217 17,352 38,300  58,869 
Total current assets13,263 58,446 579,756  651,465 
Property, plant and equipment, net3,443 91,734 272,418  367,595 
Investment in subsidiaries763,336  61,019 (824,355) 
Other assets3,405 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 payable4,951 18,455 135,241  158,647 
Other current liabilities20,912 17,941 68,400  107,253 
Total current liabilities26,377 36,465 264,311  327,153 
Long-term debt431,960  6,509  438,469 
Other long-term liabilities6,493 15,443 62,761  84,697 
Intercompany accounts42,798 (397,847)355,049   
Redeemable noncontrolling interest  25,000  25,000 
Titan shareholders' equity275,819 500,330 283,057 (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 


27



TITAN INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Amounts in thousands)Condensed Consolidating Statements of Cash Flows
For the Nine Months Ended September 30, 2020
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesConsolidated
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, net191 (8)743 926 
Net cash provided by (used for) investing activities99 (3,892)29,157 25,364 
Cash flows from financing activities:    
Proceeds from borrowings31,334 333 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 equivalents2,159 (1)29,815 31,973 
Cash and cash equivalents, beginning of period2,843 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 SubsidiariesNon-Guarantor SubsidiariesConsolidated
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 borrowings73,000 287 50,866 124,153 
Payment on debt(14,000) (45,296)(59,296)
Dividends paid(901)  (901)
Net cash provided by financing activities58,099 287 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 period23,630 4 58,051 81,685 
Cash and cash equivalents, end of period$12,669 $7 $65,927 $78,603 
28



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's discussion and analysis of financial condition and results of operations (MD&A) is designed to provide a reader of the financial statements included in this quarterly report with a narrative from the perspective of the management of Titan International, Inc. (Titan or the Company) on Titan's financial condition, results of operations, liquidity, and other factors that may affect the Company's future results. The MD&A in this quarterly report should be read in conjunction with the condensed consolidated financial statements and other financial information included elsewhere in this quarterly report and the MD&A and audited consolidated financial statements and related notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 4, 2020 (the 2019 Form 10-K).

COVID-19 Pandemic
 
In December 2019, a novel strain of coronavirus ("COVID-19") was reported in Wuhan, China. During March 2020, the World Health Organization declared that COVID-19 is a pandemic. The emergence of COVID-19 and its global spread presents significant risks to the Company, some of which the Company is unable to fully evaluate or even foresee. The COVID-19 pandemic adversely affected the Company’s financial results and business operations for the nine months ended September 30, 2020 and economic and health conditions in the United States and across most of the globe have continued to change since then. In some of the countries where the Company has operations and where COVID-19 has been widespread (such as the Company’s European and Latin America locations), the Company’s operations were significantly curtailed during March through May 2020. The Company’s operations have since resumed with additional sanitary and other protective health measures, which have increased operating costs. The Company's operations may not return to historical levels in the near term, depending on the duration and severity of the COVID-19 pandemic, the length of time it takes for normal economic and operating conditions to resume, additional governmental actions that may be taken and/or extensions of time for restrictions that have been imposed to date and numerous other uncertainties.

The COVID-19 pandemic affected the Company’s operations in the third quarter, and may continue to do so indefinitely thereafter. All of these factors may have far-reaching impacts on the Company’s business, operations, and financial results and conditions, directly and indirectly, including without limitation impacts on the health of the Company’s management and employees, customer behaviors, and on the overall economy. The scope and nature of these impacts, most of which are beyond the Company’s control, continue to evolve and the outcomes are uncertain.
 
Due to the above circumstances and as described generally in this Form 10-Q, the Company’s results of operations for the three and nine month periods ended September 30, 2020 are not necessarily indicative of the results to be expected for the full fiscal year.  Management cannot predict the full impact of the COVID-19 pandemic on the economic conditions generally, on the Company’s customers and, ultimately, on the Company. The nature, extent and duration of the effects of the COVID-19 pandemic on the Company are highly uncertain and will depend on future developments, and such effects could exist for an extended period of time even after the pandemic might end.

FORWARD-LOOKING STATEMENTS
This Form 10-Q contains forward-looking statements, which are covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Readers can identify these statements by the fact that they do not relate strictly to historical or current facts. The Company tried to identify forward-looking statements in this quarterly report by using words such as “anticipates,” “estimates,” “expects,” “intends,” “plans,” and “believes,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could.” These forward-looking statements include, among other items, information concerning:
The Company's financial performance;
Anticipated trends in the Company’s business;
Expectations with respect to the end-user markets into which the Company sells its products (including agricultural equipment, earthmoving/construction equipment, and consumer products);
Future expenditures for capital projects;
The Company’s ability to continue to control costs and maintain quality;
The Company's ability to meet conditions of loan agreements, indentures and other financing documents;
29



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
The Company’s business strategies, including its intention to introduce new products;
Expectations concerning the performance and success of the Company’s existing and new products; and
The Company’s intention to consider and pursue acquisition and divestiture opportunities.
Readers of this Form 10-Q should understand that these forward-looking statements are based on the Company’s current expectations and assumptions about future events and are subject to a number of risks, uncertainties, and changes in circumstances that are difficult to predict, including, but not limited to, the factors discussed in Part I, Item 1A, Risk Factors, of the 2019 Form 10-K and Part II, Item 1A, Risk Factors, of this quarterly report on Form 10-Q, certain of which are beyond the Company’s control.

Actual results could differ materially from these forward-looking statements as a result of certain factors, including:
The effect of the COVID-19 pandemic on our operations and financial performance;
The effect of a recession on the Company and its customers and suppliers;
Changes in the Company’s end-user markets into which the Company sells its products as a result of world economic or regulatory influences or otherwise;
Changes in the marketplace, including new products and pricing changes by the Company’s competitors;
The Company's ability to maintain satisfactory labor relations;
Unfavorable outcomes of legal proceedings;
The Company's ability to comply with current or future regulations applicable to the Company's business and the industry in which it competes or any actions taken or orders issued by regulatory authorities;
Availability and price of raw materials;
Levels of operating efficiencies;
The effects of the Company's indebtedness and its compliance with the terms thereof;
Changes in the interest rate environment and their effects on the Company's outstanding indebtedness;
Unfavorable product liability and warranty claims;
Actions of domestic and foreign governments, including the imposition of additional tariffs;
Geopolitical and economic uncertainties relating to the countries in which the Company operates or does business;
Risks associated with acquisitions, including difficulty in integrating operations and personnel, disruption of ongoing business, and increased expenses;
Results of investments;
The effects of potential processes to explore various strategic transactions, including potential dispositions;
Fluctuations in currency translations;
Climate change and related laws and regulations;
Risks associated with environmental laws and regulations;
Risks relating to our manufacturing facilities, including that any of our material facilities may become inoperable; and
Risks related to financial reporting, internal controls, tax accounting, and information systems.
Any changes in such factors could lead to significantly different results.  Any assumptions that are inaccurate or do not prove to be correct could have a material adverse effect on the Company’s ability to achieve the results as indicated in the forward-looking statements.  Forward-looking statements included in this report speak only as of the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.  In light of these risks and uncertainties, there can be no assurance that the forward-looking information and assumptions contained in this report will in fact transpire. The reader should not place undue reliance on the
30



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
forward-looking statements included in this report or that may be made elsewhere from time to time by the Company, or on its behalf. All forward-looking statements attributable to Titan are expressly qualified by these cautionary statements.

OVERVIEW
Titan International, Inc., together with its subsidiaries, is a global manufacturer of off-highway wheels, tires, assemblies and undercarriage products. As a leading manufacturer in the off-highway industry, Titan produces a broad range of products to meet the specifications of original equipment manufacturers (OEMs) and aftermarket customers in the agricultural, earthmoving/construction, and consumer markets. Titan manufactures and sells certain tires under the Goodyear Farm Tire and Titan Tire brands and has complete research and development test facilities to validate wheel and rim designs.

Agricultural Segment: Titan's agricultural rims, wheels, tires, and undercarriage systems and components are manufactured for use on various agricultural equipment, including tractors, combines, skidders, plows, planters, and irrigation equipment, and are sold directly to OEMs and to the aftermarket through independent distributors, equipment dealers, and Titan's distribution centers. The wheels and rims range in diameter from nine inches to 54 inches, with the 54-inch diameter being the largest agricultural wheel manufactured in North America. Titan’s agricultural tires range from approximately one foot to approximately seven feet in outside diameter and from five inches to 55 inches in width.  The Company offers the added value of delivering a complete wheel and tire assembly to OEM and aftermarket customers.

Earthmoving/Construction Segment: The Company manufactures rims, wheels, tires, and undercarriage systems and components for various types of off-the-road (OTR) earthmoving, mining, military, construction, and forestry equipment, including skid steers, aerial lifts, cranes, graders and levelers, scrapers, self-propelled shovel loaders, articulated dump trucks, load transporters, haul trucks, backhoe loaders, crawler tractors, lattice cranes, shovels, and hydraulic excavators. The Company provides a broad range of earthmoving/construction wheels and tires with the wheels ranging in diameter from 15 to 63 inches and in weight from 125 to 7,000 pounds, while the tires range from approximately three to 13 feet in outside diameter and weigh between 50 to 12,500 pounds. The Company offers the added value of wheel and tire assembly for certain applications in the earthmoving/construction segment.

Consumer Segment: Titan manufactures bias truck tires in Latin America and light truck tires in Russia. Titan also offers select products for ATVs, turf, and golf cart applications. This segment also includes sales that do not readily fall into the Company's other segments.

The Company’s top customers include global leaders in agricultural and construction equipment manufacturing and include AGCO Corporation, Caterpillar Inc., CNH Global N.V., Deere & Company, Hitachi, Ltd., Kubota Corporation, Liebherr, and Volvo, in addition to many other off-highway equipment manufacturers.  The Company distributes products to OEMs, independent and OEM-affiliated dealers, and through a network of distribution facilities.

MARKET CONDITIONS AND OUTLOOK

COVID-19 IMPACT ON OUTLOOK
As a result of the global COVID-19 pandemic, the Company curtailed and suspended operations in certain geographies in which we conduct business. As COVID-19 progressed globally, the impact was felt initially in China with the government mandated lock-down and curtailment of operations from late January through February 2020. The impact continued in Europe through travel restrictions, social distancing, mandatory stay-at-home orders and sanitization of our facilities. Due to these restrictions as well as the impact COVID-19 had on our critical customers, we had loss of production in the last week of the first quarter, which continued through the second quarter of 2020. Since May 2020, operations have resumed in our international locations with increased sanitization of our facilities and enhanced health safety measures including social distancing, temperature screenings and COVID-19 testing. Within North America, except for brief shutdowns to prepare our facilities as recommended by the Centers for Disease Control and Prevention, World Health Organization and the government, we have remained operational, following social distancing and sanitization protocols. The outlook for the remainder of 2020 remains uncertain and will be predicated upon the ability to contain COVID-19 globally and for the markets and customers in which we serve return to normal operating levels in the geographies in which conduct business.

31



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
AGRICULTURAL MARKET OUTLOOK
Agriculture-related commodity prices have improved in recent months, but remain lower, relative to historic averages, as a result of ongoing tariffs and trade concerns, coupled with recent COVID-19 impacts. For the balance of 2020, market conditions across the globe remain uncertain due to the ongoing effects of the COVID-19 pandemic, volatility created by supply dislocation in certain markets, and uneven demand in select market geographies and sectors. Major OEMs pulled back production through much of the year, affecting demand for our products in the near-term. Demand has increased somewhat over the last several months.Many of our customers are still not forecasting significantly into the future, awaiting more certainty as to sustained stability in the market. Demand in the aftermarket has stabilized through the third quarter of 2020 and the outlook for the remainder of the year will depend on the continued stabilization of market conditions including normalized supply and demand levels in light of the COVID-19 pandemic. Small agriculture equipment sales are rebounding somewhat faster than the large agriculture equipment sales, notwithstanding the average age of equipment has increased over the last several years. Many more variables, including weather, volatility in the price of commodities, grain prices, export markets, foreign currency exchange rates, government policies, subsidies, and the demand for used equipment can greatly affect the Company's performance in the agricultural market in a given period.

EARTHMOVING/CONSTRUCTION MARKET OUTLOOK
The earthmoving/construction market is continuing to experience declines in 2020 due in large part to global economic uncertainty and has been hampered further by the impact of COVID-19. Demand for larger construction equipment used for highways and infrastructure began to tighten in 2019. Mining industry equipment demand also began to soften within certain regions in the second half of 2019. Construction is mainly driven by GDP by country and the need for infrastructure developments. The market outlook for the remainder of the year has improved slightly in recent months, but remains relatively uncertain and will depend on the pace of improvement to global economic conditions including the return to normalized supply and demand levels in light of the COVID-19 pandemic. Mining is primarily driven by both the demand for and pricing of commodities. Demand for Titan's products in the mining industry for the remainder of 2020 is expected to be generally down somewhat compared to 2019 for the full year, as customers have been cautious in spending on capital and replacement parts due to the COVID-19 pandemic and concerns regarding near-term global economic stability. The earthmoving/construction segment is affected by many variables, including commodity prices, road construction, infrastructure, government appropriations, housing starts, and other macroeconomic drivers, in addition to the impact of COVID-19.

CONSUMER MARKET OUTLOOK
The consumer market consists of several distinct product lines within different regions. These products include light truck tires, turf equipment, specialty products, and train brakes. Overall, the Company expects the markets to remain highly uncertain through the remainder of 2020, and sales will likely continue to be suppressed relative to the prior year, similar to the first nine months of 2020. The consumer segment is affected by many variables including consumer spending, interest rates, government policies, and other macroeconomic drivers.



32



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
RESULTS OF OPERATIONS

Titan International, Inc.Three months endedNine months ended
(amounts in thousands)September 30,September 30,
 20202019% Increase/(Decrease)20202019% Increase/(Decrease)
Net sales$304,772 $345,905 (11.9)%$932,405 $1,146,876 (18.7)%
Gross profit31,317 27,100 15.6 %88,428 110,672 (20.1)%
  Gross profit %10.3 %7.8 %9.5 %9.6 %
Selling, general and administrative expenses33,451 34,954 (4.3)%93,849 106,605 (12.0)%
Research and development expenses2,240 2,309 (3.0)%6,782 7,470 (9.2)%
Royalty expense2,434 2,453 (0.8)%7,309 7,507 (2.6)%
Loss from operations(6,808)(12,616)(46.0)%(19,512)(10,910)78.8 %



Net Sales
Net sales for the three months ended September 30, 2020 were $304.8 million, compared to $345.9 million in the comparable period of 2019, a decrease of 11.9% driven by sales decreases in all segments. Overall net sales volume was down 9.7% from the comparable prior year quarter, due primarily to challenges in the earthmoving/construction market as a result of a slowdown of the global construction market, particularly in Europe. Approximately $8 million in reduced sales, in comparison to the same period of 2019, was attributable to disrupted markets in Europe and Asia resulting from the COVID-19 pandemic. Contributing factors in the sales decrease in the Agriculture market included global trade issues and the impact of COVID-19 which resulted in lower volume from OEM customers as well as the negative effect of foreign currency translation. Overall, unfavorable currency translation negatively impacted net sales by 5.8% or $20.2 million. Favorable price mix partially offset these declines and contributed to a 3.6% increase in net sales.

Net sales for the nine months ended September 30, 2020 were $932.4 million, compared to $1,146.9 million in the comparable period of 2019, a decrease of 18.7% driven by sales decreases in all segments. Overall net sales volume was down 15.6% from the comparable period in the prior year, due primarily to the aforementioned economic factors. The overall net sales volume was also impacted by approximately $53 million in reduced sales in comparison to the same period of 2019 due to COVID-19 related plant closures and market disruption in Europe, Asia and Latin America. Unfavorable currency translation negatively impacted net sales by 4.6%. Favorable price/mix partially offset these declines and contributed to a 1.5% increase in net sales.

Gross Profit
Gross profit for the three months ended September 30, 2020 was $31.3 million, or 10.3% of net sales, an increase of $4.2 million compared to $27.1 million, or 7.8% of net sales, for the three months ended September 30, 2019. The increase in gross profit was driven by initiatives to reduce labor and overhead costs across global production facilities as well as lower raw material prices relative to the prior year. Lower sales volume and a $2.5 million unfavorable gross profit impact from the COVID-19 pandemic mentioned above partially offset the year over year gross profit margin increase.

Gross profit for the nine months ended September 30, 2020 was $88.4 million or 9.5% of net sales, down $22.2 million compared to $110.7 million, or 9.6% of net sales, for the nine months ended September 30, 2019. The decrease in gross profit was driven by the impact of lower sales volume across most geographic regions. The unfavorable gross margin impact from the COVID-19 pandemic mentioned above was approximately $13 million.

33



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Selling, General and Administrative Expenses
Selling, general and administrative (SG&A) expenses for the three months ended September 30, 2020 were $33.5 million, or 11.0% of net sales, compared to $35.0 million, or 10.1% of net sales, for the three months ended September 30, 2019.  The decrease in SG&A was driven primarily by lower payroll, marketing and travel related expenses, resulting from company-wide initiatives to lower costs, as well as $2.3 million in costs related to the Company's proposed ITM undercarriage public listing in 2019. These reductions were partially offset by a $5.0 million contingent legal accrual related to the anticipated settlement of the Dico case (refer to Note 17. Litigation in Part I, Item 1, Notes to Condensed Consolidated Financial Statements of this Form 10-Q for further discussion).

SG&A expenses for the nine months ended September 30, 2020 were $93.8 million, or 10.1% of net sales, compared to $106.6 million, or 9.3% of net sales, for the nine months ended September 30, 2019. The decrease in SG&A was primarily due to lower professional fees related to investments in information technology related to ongoing stabilization of an enterprise resource planning (ERP) software implementation within North America during 2019, lower payroll, marketing and travel related expenses, again, resulting from company-wide initiatives to lower costs, as well as, $2.3 million in costs related to the Company's proposed ITM undercarriage public listing in 2019 These reductions were partially offset by a $5.0 million contingent legal accrual related to the settlement of the Dico case, as mentioned above.
Research and Development Expenses
Research and development (R&D) expenses for the three months ended September 30, 2020 were $2.2 million, or 0.7% of net sales, compared to $2.3 million, or 0.7% of net sales, for the comparable period in 2019. R&D expenses for the nine months ended September 30, 2020 were $6.8 million, or 0.7% of net sales, compared to $7.5 million, or 0.7% of net sales, for the comparable period in 2019. R&D spending reflects initiatives to improve product designs and an ongoing focus on quality. The decrease in R&D expenses for both the quarter and the nine months ended September 30, 2020 as compared to the same periods in 2019 were due to lower payroll related costs and other professional fees, as a result of management initiatives to decrease costs to manage through the downturn in sales.
Royalty Expense
The Company has trademark license agreements with The Goodyear Tire & Rubber Company to manufacture and sell certain farm tires under the Goodyear brand. These agreements cover sales in North America, Latin America, Europe, the Middle East, Africa, Russia, and other Commonwealth of Independent States countries.

Royalty expenses for the three months ended September 30, 2020 were $2.4 million, or 0.8% of net sales, compared to $2.5 million, or 0.7% of net sales, for the three months ended September 30, 2019. Royalty expenses for the nine months ended September 30, 2020 were $7.3 million, or 0.8% of net sales, compared to $7.5 million, or 0.7% of net sales, for the nine months ended September 30, 2019.

Loss from Operations
Loss from operations for the third quarter of 2020 was $6.8 million, compared to loss from operations of $12.6 million for the third quarter of 2019.  Loss from operations for the nine months ended September 30, 2020 was $19.5 million, compared to loss from operations of $10.9 million for the nine months ended September 30, 2019. Changes in loss from operations for the quarter and nine months ended September 30, 2020 as compared to the same periods in 2019 were primarily driven by lower net sales offset by improvements in gross profit margins and reduced SG&A expenses during the period. 

OTHER PROFIT/LOSS ITEMS

Interest Expense
Interest expense was $7.3 million and $8.2 million for the three months ended September 30, 2020 and 2019, respectively, and $23.1 million and $23.8 million for the nine months ended September 30, 2020 and 2019. Interest expense decreased due to reduction in the levels of long-term debt in the respective periods.





34



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Foreign Exchange Gain (Loss)
Foreign exchange loss was $1.3 million for the three months ended September 30, 2020, compared to a loss of $2.3 million for the three months ended September 30, 2019. Foreign exchange loss was $9.7 million for the nine months ended September 30, 2020, compared to a gain of $2.2 million for the nine months ended September 30, 2019. Foreign currency exchange gain or loss is the result of the significant movements in foreign currency exchange rates in many of the geographies in which we conduct business and translation of intercompany loans at certain foreign subsidiaries, which are denominated in local currencies rather than the reporting currency, which is the United States dollar. Since such loans are expected to be settled at some point in the future, these loans are adjusted each reporting period to reflect the current exchange rates.

Other Income
Other income was $2.3 million for the three months ended September 30, 2020, as compared to other income of $5.1 million in the comparable quarter of 2019.  The decrease in other income for the three months ended September 30, 2020, as compared to the same period in 2019 was primarily attributable to a $4.7 million gain on the sale of shares of our investment in Wheels India Limited in September 2019.

Other income was $9.1 million for the nine months ended September 30, 2020, as compared to $7.5 million in the comparable period of 2019. The increase in other income for the nine months ended September 30, 2020 as compared to the same period in 2019 was primarily attributable to proceeds of $4.9 million related to a property insurance settlement at Titan Tire Reclamation Corporation (TTRC) and a $1.3 million gain on the sale of shares of our investment in Wheels India Limited during February 2020 partially offset by a $2.0 million loss on the sale of remaining shares of our investment in Wheels India Limited in June 2020 and a $4.7 million gain on the sale of shares of our investment in Wheels India Limited in September 2019.

Provision (Benefit) for Income Taxes
The Company recorded income tax expense of $0.3 million and $2.1 million for the three months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020 and 2019, the Company recorded income tax expense of $2.4 million and $0.8 million, respectively. The Company's effective income tax rate was (3)% and (11)% for the three months ended September 30, 2020 and 2019, respectively, and (5)% and (3)% for the nine months ended September 30, 2020 and 2019, respectively.

The Company’s 2020 and 2019 income tax expense and rates differed from the amount of income tax determined by applying the U.S. Federal income tax rate to pre-tax income primarily as a result of U.S. and certain foreign jurisdictions that incurred a full valuation allowance on deferred tax assets created by current year projected losses and partially offset by a reduction of the liability for unrecognized tax positions. In addition, there were non-deductible royalty expenses and statutorily required income adjustments made in certain foreign jurisdictions that negatively impacted the tax rate for the nine months ended September 30, 2020 and 2019.

Net Loss and Loss per Share
Net loss for the third quarter of 2020 was $13.5 million, compared to net loss of $20.0 million in the comparable quarter of 2019. For the quarters ended September 30, 2020 and 2019, basic and diluted loss per share were $(0.21) and $(0.33), respectively. The Company's net loss and loss per share were due to the items previously discussed.

Net loss for the nine months ended September 30, 2020 was $45.6 million, compared to net loss of $25.7 million in the comparable period of 2019. For the nine months ended September 30, 2020 and 2019, basic and diluted loss per share was $(0.71) and$(0.43), respectively. The Company's net loss and loss per share were due to the items previously discussed.











35



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
SEGMENT INFORMATION

Segment Summary (amounts in thousands):
Three months ended September 30, 2020AgriculturalEarthmoving/
Construction
ConsumerCorporate/ Unallocated
 Expenses
Consolidated
 Totals
Net sales$153,067 $123,227 $28,478 $— $304,772 
Gross profit16,191 12,409 2,717 — 31,317 
Income (loss) from operations3,091 656 (88)(10,467)(6,808)
Three months ended September 30, 2019     
Net sales$156,625 $155,659 $33,621 $— $345,905 
Gross profit10,426 12,935 3,739 — 27,100 
Loss from operations(1,230)(2,938)(229)(8,219)(12,616)

Nine months ended September 30, 2020AgriculturalEarthmoving/
Construction
ConsumerCorporate/ Unallocated
 Expenses
Consolidated
 Totals
Net sales$473,272 $372,606 $86,527 $— $932,405 
Gross profit45,830 34,777 7,821 — 88,428 
Income (loss) from operations5,389 (8,240)1,042 (17,703)(19,512)
Nine months ended September 30, 2019     
Net sales$512,639 $517,186 $117,051 $— $1,146,876 
Gross profit46,798 50,806 13,068 — 110,672 
Income (loss) from operations17,062 8,293 3,120 (39,385)(10,910)

36



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Agricultural Segment Results
Agricultural segment results for the periods presented below were as follows:

(Amounts in thousands)Three months endedNine months ended
September 30,September 30,
 20202019% Increase/(Decrease)20202019% Increase/(Decrease)
Net sales$153,067 $156,625 (2.3)%$473,272 $512,639 (7.7)%
Gross profit16,191 10,426 55.3 %45,830 46,798 (2.1)%
Income (loss) from operations 3,091 (1,230)(351.3)%5,389 17,062 (68.4)%
    
Net sales in the agricultural segment were $153.1 million for the three months ended September 30, 2020, as compared to $156.6 million for the comparable period in 2019, a decrease of 2.3%. Unfavorable currency translation, primarily in Latin America, Europe and Russia contributed 8.7% of this decrease which was partially offset by a 2.3% increase in sales volume primarily in Latin America and Europe. Favorable price/mix increased net sales by 4.1%. Lower sales volumes in North America were primarily caused by the effect of the COVID-19 pandemic, which continues to cause uncertainty for our customers, most notably OEM customers.

Gross profit in the agricultural segment was $16.2 million for the three months ended September 30, 2020, as compared to $10.4 million in the comparable quarter of 2019.  The increase in gross profit is primarily attributable to production efficiencies from company-wide cost reduction initiatives and lower raw material costs.

Income from operations in Titan's agricultural segment was $3.1 million for the three months ended September 30, 2020, as compared to a loss of $1.2 million for the three months ended September 30, 2019. The overall increase in income from operations is attributable to higher gross profit and overall cost reduction initiatives.

Net sales in the agricultural segment were $473.3 million for the nine months ended September 30, 2020, as compared to $512.6 million for the comparable period in 2019, a decrease of 7.7%. Lower sales volume in North America and Europe contributed 2.7% of this decrease while unfavorable currency translation across most non-US geographies further decreased net sales by 6.1%. Favorable price/mix increased net sales by 1.1%. Lower sales volumes were primarily caused by continued weakness in the commodity markets and the effect of the COVID-19 pandemic, which continues to cause significant uncertainty for our customers, primarily OEM customers.

Gross profit in the agricultural segment was $45.8 million for the nine months ended September 30, 2020, as compared to $46.8 million in the comparable quarter of 2019.  The decrease in gross profit is primarily attributable to the impact of lower sales volume and unfavorable foreign currency translation.

Income from operations in Titan's agricultural segment was $5.4 million for the nine months ended September 30, 2020, as compared to $17.1 million for the nine months ended September 30, 2019.













37



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Earthmoving/Construction Segment Results
Earthmoving/construction segment results for the periods presented below were as follows:
(Amounts in thousands)Three months endedNine months ended
September 30,September 30,
 20202019% Increase/(Decrease)20202019% Increase/(Decrease)
Net sales$123,227 $155,659 (20.8)%$372,606 $517,186 (28.0)%
Gross profit12,409 12,935 (4.1)%34,777 50,806 (31.5)%
Income (loss) from operations656 (2,938)(122.3)%(8,240)8,293 (199.4)%

The Company's earthmoving/construction segment net sales were $123.2 million for the three months ended September 30, 2020, as compared to $155.7 million in the comparable quarter of 2019, a decrease of 20.8%. The decrease in earthmoving/construction sales was driven by decreased volume, which negatively impacted net sales by 19.4%. This decrease was primarily due to a tightening within the construction market in all of our geographies over the last year. The direct impact of COVID-19 accounted for approximately $8 million of the sales decrease due to plant shutdowns and market disruptions in Europe and Asia. Unfavorable currency translation in Europe, Latin America and Russia decreased net sales by 1.6% but was partially offset by improvements in pricing and product mix, which increased net sales by 0.1%.

Gross profit in the earthmoving/construction segment was $12.4 million for the three months ended September 30, 2020, as compared to $12.9 million for the three months ended September 30, 2019. The decrease in gross profit was primarily driven by the lower sales volume, which created certain production inefficiencies, the impact of COVID-19 and unfavorable foreign currency translation. However, gross profit margins for the segment improved to 10.1% in the three months ended September 30, 2020, compared to 8.3% in the corresponding prior period, as a result of actions taken to combat the current global economic situation, coupled with lower raw material costs. The Company's earthmoving/construction segment income from operations was $0.7 million for the three months ended September 30, 2020, as compared to a loss of $2.9 million for the three months ended September 30, 2019. Again, this improvement was due to cost containment measures taken to manage profitability during the last year in response to the market declines and the impact of the COVID-19 pandemic.

The Company's earthmoving/construction segment net sales were $372.6 million for the nine months ended September 30, 2020, as compared to $517.2 million for the nine months ended September 30, 2019, a decrease of 28.0%. The decrease in earthmoving/construction sales was driven by decreased volume, which negatively impacted net sales by 27.1%. This decrease was primarily due to a tightening within the construction market in all geographies, especially in our undercarriage business. The direct impact of COVID-19 accounted for approximately $48 million of the sales decrease due to plant shutdowns and market disruptions in Europe and Asia. Unfavorable currency translation across most non-US geographies decreased net sales by 2.4% but was partially offset by favorable pricing and product mix, which increased net sales by 1.5%.

Gross profit in the earthmoving/construction segment was $34.8 million for the nine months ended September 30, 2020, as compared to $50.8 million for the nine months ended September 30, 2019. The decrease in gross profit was primarily driven by the lower sales volume, which created certain production inefficiencies, the impact of COVID-19 and unfavorable foreign currency translation. The Company's earthmoving/construction segment loss from operations was $8.2 million for the nine months ended September 30, 2020, as compared to income of $8.3 million for the nine months ended September 30, 2019.

38



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Consumer Segment Results
Consumer segment results for the periods presented below were as follows:
(Amounts in thousands)Three months endedNine months ended
September 30,September 30,
 20202019% Increase/(Decrease)20202019% Increase/(Decrease)
Net sales$28,478 $33,621 (15.3)%$86,527 $117,051 (26.1)%
Gross profit2,717 3,739 (27.3)%7,821 13,068 (40.2)%
(Loss) income from operations(88)(229)(61.6)%1,042 3,120 (66.6)%

Consumer segment net sales were $28.5 million for the three months ended September 30, 2020, as compared to $33.6 million for the three months ended September 30, 2019, a decrease of approximately 15.3%. This decrease was driven by lower sales volume, especially in North America and Australia, which negatively impacted net sales by 20.8% as well as unfavorable currency translation, primarily in Latin America and Russia, which decreased net sales by 12.2%. Favorable pricing and product mix contributed 17.7% to net sales during the period.

Gross profit from the consumer segment was $2.7 million for the three months ended September 30, 2020, as compared to $3.7 million for the three months ended September 30, 2019 due primarily to lower sales in the light utility truck markets. Consumer segment loss from operations was $0.1 million for the three months ended September 30, 2020, as compared to a loss of $0.2 million for the three months ended September 30, 2019.

Consumer segment net sales were $86.5 million for the nine months ended September 30, 2020, as compared to $117.1 million for the nine months ended September 30, 2019, a decrease of approximately 26.1%. This decrease was driven by lower sales volume, especially in North America, Latin America and Australia, which negatively impacted net sales by 21.6% and unfavorable currency translation, primarily in Latin America and Russia, which decreased net sales by 7.8%. Favorable price mix increased net sales by 3.4%. The decline in Latin America continued to be driven by lower demand for light utility truck tires and the impact of COVID-19, while declines in other geographies related to a shift in focus to agriculture and earthmoving/construction products.

Gross profit from the consumer segment was $7.8 million for the nine months ended September 30, 2020, as compared to $13.1 million for the nine months ended September 30, 2019 due primarily to lower sales in the light utility truck markets. Consumer segment income from operations was $1.0 million for the nine months ended September 30, 2020, as compared to income of $3.1 million for the nine months ended September 30, 2019.

Corporate & Unallocated Expenses
Income from operations on a segment basis did not include unallocated loss of $10.5 million for the three months ended September 30, 2020, and $17.7 million for the nine months ended September 30, 2020, as compared to $8.2 million for the three months ended September 30, 2019 and $39.4 million for the nine months ended September 30, 2019. The year over year difference is related to a refinement of the allocation process, which enabled the Company to identify previously unallocated expenses that belonged within other segments along with management actions to reduce SG&A costs at the corporate level.


39



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
LIQUIDITY AND CAPITAL RESOURCES

Cash Flows
As of September 30, 2020, the Company had $98.8 million of cash, an increase of $32.0 million from December 31, 2019, due to the following items:

Operating Cash Flows
Summary of cash flows from operating activities:
(Amounts in thousands)Nine months ended September 30, 
 20202019Change
Net loss(45,596)(25,714)$(19,882)
Depreciation and amortization40,376 41,347 (971)
Deferred income tax provision(3,616)(738)(2,878)
Foreign currency translation (gain) loss9,812 (2,327)12,139 
Accounts receivable(22,909)16,124 (39,033)
Inventories36,664 36,920 (256)
Prepaid and other current assets(1,133)(3,073)1,940 
Accounts payable2,351 (24,998)27,349 
Other current liabilities28,753 3,634 25,119 
Other liabilities(678)(5,884)5,206 
Other operating activities3,407 (4,079)7,486 
Cash provided by operating activities$47,431 $31,212 $16,219 

In the first nine months of 2020, operating activities provided $47.4 million of cash primarily due to reduction of inventories by $36.7 million and increase in other current liabilities by $28.8 million. Cash flows provided by operating activities were negatively impacted by increases in accounts receivable of $22.9 million and positively impacted by increases in accounts payable of $2.4 million. Included in the net loss of $45.6 million were non-cash charges for depreciation and amortization of $40.4 million, foreign currency translation loss of $9.8 million, $4.9 million property insurance settlement, $3.6 million asset impairment, and a $0.7 million loss on the sale of shares of Wheels India Limited.

Operating cash flows increased $16.2 million when comparing the first nine months of 2020 to the comparable period in 2019. Net loss in the first nine months of 2020 increased from a $19.9 million loss in the first nine months of 2019. When comparing the first nine months of 2020 to the comparable period in 2019, cash flows from operating activities increased primarily due to favorable comparability of accounts payable and other current liabilities by $27.3 million and $25.1 million, respectively.

Summary of the components of cash conversion cycle:
September 30,December 31,September 30,
 202020192019
Days sales outstanding58 56 63 
Days inventory outstanding99 111 105 
Days payable outstanding(53)(53)(57)
Cash conversion cycle104 114 111 
40



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Investing Cash Flows
Summary of cash flows from investing activities:
(Amounts in thousands)Nine months ended September 30, 
 20202019Change
Capital expenditures$(13,350)$(26,254)$12,904 
Payments related to redeemable noncontrolling interest— (71,722)71,722 
Sale of Wheels India Limited shares32,852 — 32,852 
Other investing activities5,862 1,354 4,508 
Cash provided by (used for) investing activities$25,364 $(96,622)$121,986 
Net cash provided by investing activities was $25.4 million in the first nine months of 2020, as compared to net cash used of $96.6 million in the first nine months of 2019. Other investing activities for the nine months ended September 30, 2020 includes $32.9 million from the sale of shares of our investment in Wheels India Limited and $4.9 million from the proceeds of a property insurance settlement. The Company made payments of $71.7 million related to satisfaction of obligations relating to the settlement put option under the Shareholders’ Agreement in the first nine months of 2019. The Company invested a total of $13.4 million in capital expenditures in the first nine months of 2020, compared to $26.3 million in the comparable period of 2019. Capital expenditures during the first nine months of 2020 and 2019 represent critical equipment replacement and improvements, along with new tools, dies and molds related to new product development. The overall capital outlay for 2020 is being suppressed as a direct response to cash preservation activities as a result of COVID-19 impacts on the business.
Financing Cash Flows
Summary of cash flows from financing activities:
(Amounts in thousands)Nine months ended September 30, 
 20202019Change
Proceeds from borrowings$85,991 $124,153 $(38,162)
Payment on debt(116,601)(59,296)(57,305)
Dividends paid(603)(901)298 
Other financing activities(2,723)— (2,723)
Cash (used for) provided by financing activities$(33,936)$63,956 $(97,892)
In the first nine months of 2020, $33.9 million of cash was used for financing activities. Proceeds from borrowings provided $86.0 million, which was offset by payments on debt of $116.6 million. Repayment of the domestic revolving crediting facility occurred during the first nine months of 2020 reducing the outstanding balance from $36.0 million at December 31, 2019 to $0.0 million at September 30, 2020. In the first nine months of 2019, $64.0 million of cash was provided by financing activities. This cash was primarily provided through debt financing, with borrowing providing $124.2 million, offset by payments on debt of $59.3 million.

41



TITAN INTERNATIONAL, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Debt Restrictions
The Company’s revolving credit facility (credit facility) and indenture relating to the 6.50% senior secured notes due 2023 contain various restrictions, including:
When remaining availability under the credit facility is less than 10% of the total commitment under the credit facility ($12.5 million as of September 30, 2020), the Company is required to maintain a minimum fixed charge coverage ratio of not less than 1.0 to 1.0 (calculated quarterly on a trailing four quarter basis);
Limits on dividends and repurchases of the Company’s stock;
Restrictions on the ability of the Company to make additional borrowings, or to consolidate, merge, or otherwise fundamentally change the ownership of the Company;
Limitations on investments, dispositions of assets, and guarantees of indebtedness; and
Other customary affirmative and negative covenants.
These restrictions could limit the Company’s ability to respond to market conditions, provide for unanticipated capital investments, raise additional debt or equity capital, pay dividends, or take advantage of business opportunities, including future acquisitions.

Liquidity Outlook
At September 30, 2020, the Company had $98.8 million of cash and cash equivalents. At September 30, 2020, under the Company's $125 million credit facility, there were $0 million in borrowings, $19.7 million in outstanding letters of credit, and the amount available totaled $61.4 million. Titan's availability under this credit facility may be less than $125 million as a result of outstanding letters of credit and eligible accounts receivable and inventory balances at certain domestic subsidiaries. The cash and cash equivalents balance of $98.8 million included $93.7 million held in foreign countries.

We have taken measures to limit our capital expenditures for the remainder of 2020 and are expecting forecasted full year capital expenditures to be approximately $20 million. Cash payments for interest are currently forecasted to be approximately $15 million for the remainder of 2020 based on September 30, 2020 debt balances. The forecasted interest payments are comprised primarily of the semi-annual payment of approximately $13 million (paid in May and November) for the 6.50% senior secured notes.

Cash and cash equivalents, totaling $98.8 million at September 30, 2020, along with anticipated internal cash flows from operations and utilization of remaining available credit facilities, are expected to provide sufficient liquidity for working capital needs, debt maturities, and capital expenditures. Potential divestitures and unencumbered assets are also a means to provide for future liquidity needs.

Titan has taken actions to obtain additional financial flexibility and credit capabilities from our banking partners and other sources throughout our global operations over the course of the first nine months of 2020. Additionally, we are focused on reducing discretionary spending and improving profitability through various measures, which include working capital improvements and monetization of non-core assets. During the quarter ended September 30, 2020 and continuing for the remainder of 2020, we are managing business disruption due to the impact of COVID-19; however, we do not anticipate that this impact will cause the Company to violate any financial covenants with respect to its debt agreements. In addition, as a result of the measures that are currently being undertaken by management, the Company does not anticipate any significant liquidity constraints during the foreseeable future.

CRITICAL ACCOUNTING ESTIMATES
There were no material changes in the Company’s Critical Accounting Estimates since the filing of the 2019 Form 10-K. As discussed in the 2019 Form 10-K, the preparation of the condensed consolidated financial statements in conformity with US GAAP requires management to make estimates, assumptions, and judgments that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates and assumptions.  Refer to Note 1. Basis of Presentation and Significant Accounting Policies in Part I, Item 1, Notes to Condensed Consolidated Financial Statements of this Form 10-Q for a discussion of the Company’s updated accounting policies.


42



TITAN INTERNATIONAL, INC.


Item 3. Quantitative and Qualitative Disclosures About Market Risk

See Item 7A - Quantitative and Qualitative Disclosures About Market Risk included in the 2019 Form 10-K. There have been no material changes in this information.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures
Titan management, including the Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined under Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934 (the Exchange Act)) as of September 30, 2020. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2020, Titan's disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by Titan in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported accurately and within the time frames specified in the SEC's rules and forms and accumulated and communicated to Titan management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Controls
There were no changes in internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the third quarter of fiscal year 2020 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Inherent Limitations on the Effectiveness of Controls
Because of its inherent limitations, the Company's disclosure controls and procedures or internal control over financial reporting may not prevent or detect all misstatements or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in a cost-effective control system, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected.

These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur due to simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

43



TITAN INTERNATIONAL, INC.


PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is subject, from time to time, to certain legal proceedings and claims arising out of the normal course of its business, which cover a wide range of matters, including environmental issues, product liability, contracts, and labor and employment matters. See Note 17. Litigation in Part I, Item 1, Notes to Condensed Consolidated Financial Statements of this Form 10-Q for further discussion, which is incorporated herein by reference.

Item 1A. Risk Factors

Except for the additional risk factor set forth below, there have been no material changes from the risk factors disclosed in Item 1A. Risk Factors to the 2019 Form 10-K.

The COVID-19 pandemic has adversely impacted, and will likely continue to adversely affect, the Company's business, operating results and financial condition.

COVID-19 has spread to the majority of the countries in which we operate. This has significantly impacted our workforce and our operations, including as a result of government mandates in certain countries to work from home to minimize the spread of the virus. The Company’s operations were significantly curtailed in March 2020 and the second quarter of 2020 and may continue to be curtailed until the widespread outbreak is contained. COVID-19 has had a significant impact on our ability to conduct business and has affected the Company's operational and financial performance. We have experienced and expect to continue to experience unpredictable disruption in the demand for our products in our end-markets.

If the pandemic continues and conditions worsen, we may experience additional adverse impacts on our operational and commercial activities, costs, customer orders, and collections of accounts receivable, which may be material, and the extent and nature of these adverse impacts on our future operational and commercial activities, costs, customer orders and our collections remains uncertain even if conditions begin to improve. Furthermore, the pandemic has impacted and may further impact the broader economies of affected countries, including negatively impacting economic growth, foreign currency exchange rates and interest rates. Due to the speed with which the situation is developing, the global breadth of its spread and the range of governmental and community reactions thereto, there is uncertainty around its duration, ultimate impact and the timing of recovery. Therefore, the pandemic could lead to an extended disruption of economic activity and could materially impact our business, our consolidated results of operations, financial position, cash flows and/or market capitalization, and result in asset impairment charges, including long-lived assets.

To the extent COVID-19 or any worsening of the global business and economic environment as a result thereof adversely affects our business, operating results and financial condition, it may also have the effect of heightening many of the other risks described in Item 1A. Risk Factors in the 2019 Form 10-K.

44



TITAN INTERNATIONAL, INC.


Item 6. Exhibits

31.1
31.2
32
101.SCHInline XBRL Taxonomy Extension Schema Document
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document
101.LABInline XBRL Taxonomy Extension Label Linkbase Document
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document
104The cover page from this Current Report on Form 10-Q formatted as inline XBRL



45



TITAN INTERNATIONAL, INC.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TITAN INTERNATIONAL, INC.
(Registrant)

Date:November 4, 2020
By:
/s/  PAUL G. REITZ
Paul G. Reitz
President and Chief Executive Officer
(Principal Executive Officer)

By:
/s/ DAVID A. MARTIN
David A. Martin
SVP and Chief Financial Officer
(Principal Financial Officer)


46
Document

Exhibit 31.1

CERTIFICATION
I, Paul G. Reitz, certify that:
1.I have reviewed this quarterly report on Form 10-Q of Titan International, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:November 4, 2020By:/s/ PAUL G. REITZ
Paul G. Reitz
President and Chief Executive Officer
(Principal Executive Officer)



Document

Exhibit 31.2

CERTIFICATION
I, David A. Martin, certify that:
1.I have reviewed this quarterly report on Form 10-Q of Titan International, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date:November 4, 2020By:/s/ DAVID A. MARTIN
David A. Martin
SVP and Chief Financial Officer
(Principal Financial Officer)







Document

Exhibit 32

CERTIFICATION

In connection with the Quarterly Report of Titan International, Inc. on Form 10-Q for the period ended September 30, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned hereby certifies that, to the best of their knowledge, this Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in this report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
TITAN INTERNATIONAL, INC.
(Registrant)

Date:November 4, 2020By:/s/ PAUL G. REITZ
Paul G. Reitz
President and Chief Executive Officer
(Principal Executive Officer)

Date:November 4, 2020By:/s/ DAVID A. MARTIN
David A. Martin
SVP and Chief Financial Officer
(Principal Financial Officer)



v3.20.2
Document and Entitiy Information - shares
9 Months Ended
Sep. 30, 2020
Oct. 31, 2020
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2020  
Document Transition Report false  
Entity File Number 1-12936  
Entity Registrant Name TITAN INTERNATIONAL, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 36-3228472  
Entity Address, Address Line One 2701 Spruce Street  
Entity Address, City or Town Quincy  
Entity Address, State or Province IL  
Entity Address, Postal Zip Code 62301  
City Area Code 217  
Local Phone Number 228-6011  
Title of 12(b) Security Common stock, $0.0001 par value  
Trading Symbol TWI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0000899751  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   61,376,981
v3.20.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Revenue from Contract with Customer, Excluding Assessed Tax $ 304,772 $ 345,905 $ 932,405 $ 1,146,876
Cost of sales 273,455 318,805 840,391 1,036,204
Asset Impairment Cost 0 0 3,586 0
Gross profit 31,317 27,100 88,428 110,672
Selling, general and administrative expenses 33,451 34,954 93,849 106,605
Research and development expenses 2,240 2,309 6,782 7,470
Royalty expense 2,434 2,453 7,309 7,507
Income (loss) from operations (6,808) (12,616) (19,512) (10,910)
Interest expense (7,251) (8,164) (23,076) (23,751)
Foreign exchange (loss) gain (1,336) (2,266) (9,742) 2,218
Other income 2,283 5,066 9,111 7,490
Loss before income taxes (13,112) (17,980) (43,219) (24,953)
Provision for income taxes 342 2,064 2,377 761
Net loss (13,454) (20,044) (45,596) (25,714)
Net loss attributable to noncontrolling interests (811) (900) (2,422) (2,124)
Net loss attributable to Titan (12,643) (19,144) (43,174) (23,590)
Redemption value adjustment 0 491 0 1,928
Net loss applicable to common shareholders $ (12,643) $ (19,635) $ (43,174) $ (25,518)
Earnings per common share:        
Basic $ (0.21) $ (0.33) $ (0.71) $ (0.43)
Diluted $ (0.21) $ (0.33) $ (0.71) $ (0.43)
Average common shares and equivalents outstanding:        
Basic 60,926 60,161 60,630 60,037
Diluted 60,926 60,161 60,630 60,037
Dividends declared per common share: $ 0 $ 0.005 $ 0.005 $ 0.015
Other Nonoperating Income $ 710   $ 820  
v3.20.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Sep. 30, 2019
Net loss $ (13,454)     $ (20,044)     $ (45,596) $ (25,714)
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), after Adjustments, Tax (17)     0     (215) 0
Currency translation adjustment 4,275     (20,324)     (28,498) (19,280)
Pension liability adjustments, net of tax of $110, $10, $232, and $(44), respectively 575 $ 40 $ 1,308 590 $ 538 $ 466 1,923 1,594
Comprehensive loss (8,621)     (39,778)     (72,386) (43,400)
Net comprehensive loss attributable to redeemable and noncontrolling interests (1,912)     (1,213)     (4,814) (897)
Comprehensive loss attributable to Titan $ (6,709)     $ (38,565)     $ (67,572) $ (42,503)
v3.20.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Statement of Comprehensive Income [Abstract]        
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax $ 45 $ 79 $ 65 $ 311
v3.20.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Current assets    
Cash and cash equivalents $ 98,772 $ 66,799
  Accounts receivable, net 192,764 185,238
Inventories 284,231 333,356
Assets held for sale 6,640 7,203
Prepaid and other current assets 56,008 58,869
Total current assets 638,415 651,465
Property, plant and equipment, net 324,959 367,595
Operating Lease, Right-of-Use Asset 21,936 23,914
Deferred income taxes 1,040 2,331
Other assets 29,997 69,002
Total assets 1,016,347 1,114,307
Current liabilities    
Short-term debt 32,641 61,253
Accounts payable 150,879 158,647
Other current liabilities 131,734 107,253
Total current liabilities 315,254 327,153
Long-term debt 431,789 438,469
Deferred income taxes 1,774 6,672
Other long-term liabilities 73,320 78,025
Total liabilities 822,137 850,319
Redeemable noncontrolling interest 25,000 25,000
Titan stockholders' equity    
  Common stock ($0.0001 par value, 120,000,000 shares authorized, 61,353,590 issued at September 30, 2020 and 60,710,983 at December 31, 2019) 0 0
Additional paid-in capital 531,895 532,070
Retained deficit (117,810) (74,334)
Treasury stock (at cost, 89,612 and 427,771 shares, respectively) (1,199) (4,234)
Accumulated other comprehensive loss (243,048) (218,651)
Total Titan shareholders’ equity 169,838 234,851
Noncontrolling interests (628) 4,137
Total equity 169,210 238,988
Total liabilities and equity $ 1,016,347 $ 1,114,307
v3.20.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Statement of Financial Position [Abstract]    
Accounts Receivable, Allowance for Credit Loss, Current $ 3,943 $ 3,714
Liabilities and Equity [Abstract]    
Common Stock, par value $ 0 $ 0
Common Stock, shares authorized (in shares) 120,000,000 120,000,000
Common Stock, shares issued (in shares) 61,353,590 60,710,983
Treasury Stock, shares (in shares) 89,612 427,771
v3.20.2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional paid-in capital [Member]
Retained earnings [Member]
Treasury stock [Member]
Accumulated other comprehensive income (loss) [Member]
Parent [Member]
Noncontrolling interest [Member]
Balance, Beginning (in shares) at Dec. 31, 2018   59,916,973            
Balance, Beginning at Dec. 31, 2018 $ (270,097)   $ (519,498) $ 29,048 $ 7,831 $ 203,571 $ (279,048) $ 8,951
Net loss       1,977     1,977  
Currency translation adjustment, net           (5,281) (5,281) 474
Temporary Equity, Foreign Currency Translation Adjustments (4,807)              
Pension liability adjustments, net of tax 466         (466) 466  
Dividends declared (301)     (301)     (301)  
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification (587)     4,346   (4,933) (587)  
Noncontrolling Interest, Period Increase (Decrease) 24,882   9,437       9,437 15,445
Redemption value adjustment 776   776       (776)  
Stock-based compensation 269   269       269  
VIE distributions 1,054           0 1,054
Issuance of stock under 401(k) plan   29,414            
Issuance of stock under 401(k) plan (141)   123   (264)   (141)  
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest 1,341             (636)
Balance, Ending (in shares) at Mar. 31, 2019   59,946,387            
Balance, Ending at Mar. 31, 2019 (289,671)   (528,305) 23,026 7,567 213,319 (284,393) (5,278)
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest (334)              
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest 428              
Balance, Beginning (in shares) at Dec. 31, 2018   59,916,973            
Balance, Beginning at Dec. 31, 2018 (270,097)   (519,498) 29,048 7,831 203,571 (279,048) 8,951
Net loss (25,714)              
Currency translation adjustment, net (19,280)              
Pension liability adjustments, net of tax 1,594              
Redemption value adjustment 1,928              
Balance, Ending (in shares) at Sep. 30, 2019   60,166,475            
Balance, Ending at Sep. 30, 2019 (248,176)   (533,538) 49,197 6,490 233,620 (244,231) (3,945)
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest (819)              
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest 683              
Noncontrolling Interest, Period Increase (Decrease) (49,883)              
Balance, Beginning (in shares) at Mar. 31, 2019   59,946,387            
Balance, Beginning at Mar. 31, 2019 (289,671)   (528,305) 23,026 7,567 213,319 (284,393) (5,278)
Net loss       (6,424)     (6,424)  
Currency translation adjustment, net           4,785 4,785 317
Temporary Equity, Foreign Currency Translation Adjustments 5,102              
Pension liability adjustments, net of tax 538         (538) 538  
Dividends declared (301)     301     (301)  
Redemption value adjustment 661   661       (661)  
Stock-based compensation 286   286       286  
VIE distributions 450             (450)
Issuance of stock under 401(k) plan   53,983            
Issuance of stock under 401(k) plan (318)   167   (485)   (318)  
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest (6,412)             12
Balance, Ending (in shares) at Jun. 30, 2019   60,000,370            
Balance, Ending at Jun. 30, 2019 (288,091)   (527,763) 29,751 7,082 207,996 (282,934) (5,157)
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest (265)              
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest 321              
Net loss (20,044)     (19,144)     (19,144)  
Currency translation adjustment, net (20,324)         (20,011) (20,011) (247)
Temporary Equity, Foreign Currency Translation Adjustments (20,258)              
Pension liability adjustments, net of tax 590         (590) 590  
Dividends declared (302)     302     (302)  
Redemption value adjustment 491   491       (491)  
Stock Issued During Period, Shares, Restricted Stock Award, Gross   100,118            
Stock-based compensation 347   347       347  
VIE distributions 285           0 (285)
Issuance of stock under 401(k) plan   65,987            
Issuance of stock under 401(k) plan (308)   284   (592)   (308)  
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest (19,824)             (680)
Balance, Ending (in shares) at Sep. 30, 2019   60,166,475            
Balance, Ending at Sep. 30, 2019 (248,176)   (533,538) 49,197 6,490 233,620 (244,231) (3,945)
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest (220)              
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest (66)              
Noncontrolling Interest, Period Increase (Decrease) 0   6,203     (6,203) 0 0
Balance, Beginning (in shares) at Dec. 31, 2019   60,283,212            
Balance, Beginning at Dec. 31, 2019 (238,988)   (532,070) 74,334 4,234 218,651 (234,851) (4,137)
Net loss       (25,486)     (25,486)  
Currency translation adjustment, net           (32,004) (32,004) (1,782)
Temporary Equity, Foreign Currency Translation Adjustments (33,786)              
Pension liability adjustments, net of tax 1,308         1,308 1,308  
Dividends declared (302)     (302)     (302)  
Stock Issued During Period, Shares, Restricted Stock Award, Gross   2,500            
Stock-based compensation 490   468   22   490  
Noncontrolling Interest, Decrease from Deconsolidation 559           0 559
Issuance of stock under 401(k) plan   76,280            
Issuance of stock under 401(k) plan (282)   (282)       (282)  
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest (27,499)             (2,013)
Balance, Ending (in shares) at Mar. 31, 2020   60,361,992            
Balance, Ending at Mar. 31, 2020 (178,922)   (532,820) 100,122 4,212 249,347 (179,139) 217
Balance, Beginning (in shares) at Dec. 31, 2019   60,283,212            
Balance, Beginning at Dec. 31, 2019 (238,988)   (532,070) 74,334 4,234 218,651 (234,851) (4,137)
Net loss (45,596)              
Currency translation adjustment, net (28,498)              
Pension liability adjustments, net of tax 1,923              
Redemption value adjustment 0              
Balance, Ending (in shares) at Sep. 30, 2020   61,263,978            
Balance, Ending at Sep. 30, 2020 (169,210)   (531,895) 117,810 1,199 243,048 (169,838) 628
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest 0              
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest 0              
Noncontrolling Interest, Period Increase (Decrease) 0              
Balance, Beginning (in shares) at Mar. 31, 2020   60,361,992            
Balance, Beginning at Mar. 31, 2020 (178,922)   (532,820) 100,122 4,212 249,347 (179,139) 217
Net loss       (5,045)     (5,045)  
Currency translation adjustment, net           523 523 491
Temporary Equity, Foreign Currency Translation Adjustments 1,014              
Pension liability adjustments, net of tax 40         40 40  
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax (198)         (198) (198)  
Stock Issued During Period, Shares, Restricted Stock Award, Gross   2,500            
Stock-based compensation 581   559   22   581  
VIE distributions 608             608
Issuance of stock under 401(k) plan   237,802            
Issuance of stock under 401(k) plan (333)   1,802   (2,135)   (333)  
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest (4,643)             402
Balance, Ending (in shares) at Jun. 30, 2020   60,602,294            
Balance, Ending at Jun. 30, 2020 (176,657)   (531,577) 105,167 2,055 248,982 (175,373) (1,284)
Net loss (13,454)     (12,643)     (12,643)  
Currency translation adjustment, net 4,275           5,376 (1,101)
Temporary Equity, Foreign Currency Translation Adjustments 4,275              
Pension liability adjustments, net of tax 575         575 575  
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax (17)         (17) (17)  
Redemption value adjustment 0              
Stock Issued During Period, Shares, Restricted Stock Award, Gross   435,558            
Stock-based compensation 864   8   856   864  
Issuance of stock under 401(k) plan   226,126            
Issuance of stock under 401(k) plan (310)   (310)       (310)  
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest (13,454)             (811)
Balance, Ending (in shares) at Sep. 30, 2020   61,263,978            
Balance, Ending at Sep. 30, 2020 $ (169,210)   $ (531,895) $ 117,810 $ 1,199 $ 243,048 $ (169,838) $ 628
v3.20.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Cash flows from operating activities:    
Net loss $ (45,596) $ (25,714)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 40,376 41,347
Asset Impairment Charges 3,586 0
Deferred income tax provision (3,616) (738)
Unrealized Gain (Loss) on Investments 703 (4,695)
Gain on property insurance settlement 4,936 0
Stock-based compensation 1,931 959
Issuance of stock under 401(k) plan 925 767
Foreign currency translation loss (gain) 9,812 (2,327)
(Increase) decrease in assets:    
Accounts receivable (22,909) 16,124
Inventories 36,664 36,920
Prepaid and other current assets (1,133) (3,073)
Other assets 1,198 (1,110)
Increase (decrease) in liabilities:    
Accounts payable 2,351 (24,998)
Other current liabilities 28,753 3,634
Other liabilities (678) (5,884)
Net cash provided by operating activities 47,431 31,212
Cash flows from investing activities:    
Capital expenditures (13,350) (26,254)
Payment related to redeemable noncontrolling interest agreement 0 (71,722)
Payments for (Proceeds from) Investments (32,852) 0
Proceeds from Insurance Settlement, Investing Activities 4,936 0
Other 926 1,354
Net cash provided by (used for) investing activities 25,364 (96,622)
Cash flows from financing activities:    
Proceeds from borrowings 85,991 124,153
Payment on debt (116,601) (59,296)
Dividends paid (603) (901)
Proceeds from (Payments for) Other Financing Activities (2,723)  
Payments of Financing Costs   0
Net cash (used for) provided by financing activities (33,936) 63,956
Effect of exchange rate changes on cash (6,886) (1,628)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect 31,973 (3,082)
Cash and cash equivalents, beginning of period 66,799 81,685
Cash and cash equivalents, end of period 98,772 78,603
Supplemental information:    
Interest paid 16,070 18,060
Income taxes paid, net of refunds received $ 6,861 $ 6,120
v3.20.2
ACCOUNTING POLICIES
9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
ACCOUNTING POLICIES
Basis of presentation
The accompanying unaudited condensed consolidated interim financial statements include the accounts of Titan International, Inc. and its subsidiaries (Titan or the Company) and have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the SEC). Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the Company's financial position as of September 30, 2020, and the results of operations and cash flows for the three months ended September 30, 2020 and 2019, and should be read in conjunction with the consolidated financial statements and the related notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 4, 2020 (the 2019 Form 10-K). All significant intercompany transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements include estimates and assumptions of management that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates.

COVID-19 pandemic
The COVID-19 pandemic continued to have an impact on the Company in the third quarter. Titan's workforce and operations have been significantly impacted as a result of government mandates in certain countries to work from home to minimize the spread of the virus. The Company’s operations were significantly curtailed during March through May 2020 in some of the countries where the Company has operations and where COVID-19 has been widespread (such as the Company’s European and Latin America locations). The Company’s operations have since resumed with additional sanitary and other protective health measures which have increased operating costs. The Company's operations may not return to historical levels in the near term, depending on the duration and severity of the COVID-19 pandemic, the length of time it takes for normal economic and operating conditions to resume, additional governmental actions that may be taken and/or extensions of time for restrictions that have been imposed to date and numerous other uncertainties.

The COVID-19 pandemic affected the Company’s operations in the third quarter, and may continue to do so indefinitely thereafter. The COVID-19 pandemic has had far reaching impacts on the Company’s business, operations, and financial results and conditions, directly and indirectly, including without limitation impacts on the health of the Company’s management and employees, customer behaviors, and on the overall economy. The scope and nature of these impacts, most of which are beyond the Company’s control, continue to evolve and the outcomes are uncertain.

Fair value of financial instruments
The Company records all financial instruments, including cash and cash equivalents, accounts receivable, notes receivable, accounts payable, other accruals, and notes payable at cost, which approximates fair value due to their short term or stated rates.  Investments in marketable equity securities are recorded at fair value.  The 6.50% senior secured notes due 2023 (senior secured notes) were carried at a cost of $396.6 million at September 30, 2020. The fair value of the senior secured notes at September 30, 2020, as obtained through an independent pricing source, was approximately $300.3 million.

Cash dividends
The Company declared cash dividends of $0.005 per share of common stock for the first quarter of 2020 and for the first three quarters of 2019. The first quarter 2020 cash dividend of $0.005 per share of common stock was paid on April 15, 2020, to shareholders of record on March 31, 2020. On June 11, 2020, the Board of Directors unanimously approved the suspension of the Company’s quarterly common stock dividend until further notice.

Reclassifications
Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. These reclassifications had no impact on net loss, shareholders’ equity or cash flows as previously reported.

New accounting standards

Recently adopted accounting standards
In June 2016, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. For trade receivables, loans, and other financial instruments, we are required to use a forward-looking expected loss model that reflects losses that are probable rather than the incurred loss model for recognizing credit losses. The standard became effective for interim and annual periods beginning after December 15, 2019. In addition, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, which provides clarity on certain aspects of the amendments in ASU 2016-13. The Company adopted this guidance prospectively on January 1, 2020 and it did not have a material effect on the Company's condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments in this update are effective for fiscal years beginning after December 15, 2019. We adopted this ASU on January 1, 2020 and it did not have a material effect on the Company's condensed consolidated financial statements.

Accounting standards issued but not yet adopted

In August 2018, the FASB issued ASU No. 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update are effective for fiscal years ending after December 15, 2020. The adoption of this guidance is not expected to have a material effect on the Company's condensed consolidated financial statements.

In March 2020, the SEC issued a final rule that amends the disclosure requirements related to certain registered securities under SEC Regulation S-X Rule 3-10 with respect to the disclosure requirements related to issuers and guarantors of guaranteed debt securities. The final rule allows registrants to provide alternative financial disclosures in either the registrant’s MD&A or financial statements, rather than the previous requirement under Rule 3-10, which required condensed consolidating financial information within the financial statements. It also simplifies the requirements in Rule 3-10 that currently must be met for a parent company to qualify for exceptions allowing it to provide alternative disclosures rather than full audited financial statements. The final rule also reduces the periods for which summarized financial information is required to be presented to the most recent (1) annual period and (2) year-to-date interim period. The final rule applies to annual reports on Form 10-K for fiscal years ending after January 4, 2021 and quarterly reports on Form 10-Q for quarterly periods ending after January 4, 2021 and registrants may voluntarily comply with the final rule before the effective date. The Company does not expect the future adoption, which is limited to disclosures only, to have a material effect on the Company’s consolidated financial statements.
v3.20.2
ACCOUNTS RECEIVABLE
9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
ACCOUNTS RECEIVABLE ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following (amounts in thousands):
 September 30,
2020
December 31,
2019
Accounts receivable$196,707 $188,952 
Allowance for doubtful accounts(3,943)(3,714)
Accounts receivable, net$192,764 $185,238 
Accounts receivable are reduced by an allowance for doubtful accounts for estimated uncollectible accounts receivable, which is based upon historical experience and specific customer collection issues. Accounts are written off against the allowance account when they are determined to no longer be collectible.
v3.20.2
INVENTORIES
9 Months Ended
Sep. 30, 2020
Inventory Disclosure [Abstract]  
Inventory Disclosure [Text Block] INVENTORIES
Inventories consisted of the following (amounts in thousands):
 September 30,
2020
December 31,
2019
Raw material$77,182 $83,569 
Work-in-process35,436 48,369 
Finished goods171,613 201,418 
 $284,231 $333,356 
 
Inventories are valued at the lower of cost or net realizable value. Net realizable value is estimated based on current selling prices. Inventory costs are calculated using the first-in, first-out (FIFO) method or average cost method. Estimated provisions are established for slow-moving and obsolete inventory.
v3.20.2
PROPERTY, PLANT AND EQUIPMENT, NET
9 Months Ended
Sep. 30, 2020
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, net consisted of the following (amounts in thousands):
 September 30,
2020
December 31,
2019
Land and improvements$41,920 $44,386 
Buildings and improvements252,654 249,168 
Machinery and equipment588,497 605,205 
Tools, dies and molds104,142 113,603 
Construction-in-process12,241 16,237 
 999,454 1,028,599 
Less accumulated depreciation(674,495)(661,004)
 $324,959 $367,595 
 
Depreciation on property, plant and equipment for the nine months ended September 30, 2020 and 2019, totaled $37.7 million and $38.9 million, respectively.

The Company recorded a $2.6 million asset impairment charge during the nine months ended September 30, 2020 related to certain machinery and equipment located at Titan Tire Reclamation Corporation (TTRC) in Canada as a result of market declines, which indicated the remaining book value of the equipment is more than the fair market value.

In the second quarter of 2020, the Company took steps towards the finalization of the closure of its wheel operations in Saltville, Virginia, with plans for completion by the end of the fourth quarter of 2020. As a part of this process, the Company expects to incur disposal costs related to the closure but an estimated amount or range of amounts has not yet been determined.  There are approximately $0.5 million of net property, plant and equipment at this location.
In the third quarter of 2020, the Company received several potential offers for the sale of its Brownsville, Texas facility. The Company expects to enter into a sale agreement with a potential buyer during the fourth quarter of 2020. The Company reclassified the building and related assets of its Brownsville, Texas facility totaling $6.6 million to Assets held for sale on its Condensed Consolidated Balance Sheets as of September 30, 2020.
v3.20.2
INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Disclosure [Text Block] INTANGIBLE ASSETS, NET
The components of intangible assets consisted of the following (amounts in thousands):
Weighted Average Useful Lives
(in years)
September 30, 2020
September 30,
2020
December 31,
2019
Amortizable intangible assets:
     Customer relationships6.92$12,211 $12,629 
     Patents, trademarks and other9.459,884 11,598 
          Total at cost22,095 24,227 
     Less accumulated amortization(14,484)(14,461)
$7,611 $9,766 
Amortization related to intangible assets for the nine months ended September 30, 2020 and 2019, totaled $1.6 million and $1.5 million, respectively. Intangible assets are included as a component of other assets in the Condensed Consolidated Balance Sheets.

The estimated aggregate amortization expense at September 30, 2020, for each of the years (or other periods) set forth below was as follows (amounts in thousands):
October 1 - December 31, 2020$485 
20211,305 
2022958 
2023958 
2024957 
Thereafter2,948 
 $7,611 
v3.20.2
WARRANTY
9 Months Ended
Sep. 30, 2020
Product Warranties Disclosures [Abstract]  
WARRANTY COSTS WARRANTY
Changes in the warranty liability during the nine months ended September 30, 2020 and 2019, respectively, consisted of the following (amounts in thousands):
 20202019
Warranty liability, January 1$14,334 $16,327 
Provision for warranty liabilities4,060 3,599 
Warranty payments made(4,346)(4,969)
Warranty liability, September 30$14,048 $14,957 

The Company provides limited warranties on workmanship on its products in all market segments. The majority of the Company’s products are subject to a limited warranty that ranges between less than one year and ten years, with certain product warranties being prorated after the first year. The Company calculates a provision for warranty expense based on past warranty experience. Warranty accruals are included as a component of other current liabilities on the Condensed Consolidated Balance Sheets.
v3.20.2
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT
9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT DEBT
Long-term debt consisted of the following (amounts in thousands):
September 30, 2020
Principal BalanceUnamortized Debt IssuanceNet Carrying Amount
6.50% senior secured notes due 2023$400,000 $(3,358)$396,642 
Titan Europe credit facilities47,457 — 47,457 
Revolving credit facility— — — 
Other debt20,331 — 20,331 
     Total debt467,788 (3,358)464,430 
Less amounts due within one year32,641 — 32,641 
     Total long-term debt$435,147 $(3,358)$431,789 
December 31, 2019
Principal BalanceUnamortized Debt IssuanceNet Carrying Amount
6.50% senior secured notes due 2023$400,000 $(4,040)$395,960 
Titan Europe credit facilities43,591 — 43,591 
Revolving credit facility36,000 — 36,000 
Other debt24,171 — 24,171 
     Total debt503,762 (4,040)499,722 
Less amounts due within one year61,253 — 61,253 
     Total long-term debt$442,509 $(4,040)$438,469 

Aggregate principal maturities of long-term debt at September 30, 2020, for each of the years (or other periods) set forth below were as follows (amounts in thousands):
October 1 - December 31, 2020$16,853 
202123,207 
20229,954 
2023410,945 
20246,158 
Thereafter671 
 $467,788 
6.50% senior secured notes due 2023
The senior secured notes are due in November 2023. Including the impact of debt issuance costs, these notes had an effective yield of 6.79% at issuance. These notes are secured by the land and buildings of the following subsidiaries of the Company:  Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, and Titan Wheel Corporation of Illinois.

Titan Europe credit facilities
The Titan Europe credit facilities include borrowings from various institutions totaling $47.5 million in aggregate principal amount at September 30, 2020. Maturity dates on this debt range from less than one year to nine years. The Titan Europe facilities are secured by the assets of Titan's subsidiaries in Italy, Spain, Germany, and Brazil.
Revolving credit facility
The Company has a $125 million revolving credit facility with BMO Harris Bank N.A., as agent, and other financial institutions party thereto. The credit facility is collateralized by accounts receivable and inventory of certain of the Company’s domestic subsidiaries and is scheduled to mature in February 2022. From time to time Titan's availability under this credit facility may be less than $125 million as a result of outstanding letters of credit and eligible accounts receivable and inventory balances at certain of its domestic subsidiaries. At September 30, 2020, there were no outstanding borrowings under the credit facility and $19.7 million in outstanding letters of credit, and the amount available for borrowing totaled $61.4 million.

Other debt
The Company has working capital loans at Titan Pneus do Brasil Ltda and Voltyre-Prom at various interest rates, which totaled $11.8 million and $6.9 million at September 30, 2020, respectively. Maturity dates on this debt range from less than one year to three years.
v3.20.2
REDEEMABLE NONCONTROLLING INTEREST (Notes)
9 Months Ended
Sep. 30, 2020
Noncontrolling Interest [Abstract]  
Noncontrolling Interest Disclosure [Text Block] REDEEMABLE NONCONTROLLING INTEREST
The Company, in partnership with One Equity Partners (OEP) and the Russian Direct Investment Fund (RDIF), owned all of the equity interests in Voltyre-Prom, a leading producer of agricultural and industrial tires in Volgograd, Russia. The Company is party to a shareholders' agreement with OEP and RDIF (Shareholders' Agreement) which was entered into in connection with the acquisition of Voltyre-Prom. The agreement contains a settlement put option which was exercisable during a six-month period beginning July 9, 2018. The settlement put option required Titan to purchase the equity interests from OEP and RDIF in Voltyre-Prom with cash or Titan common stock, at a value set by the agreement. The value set by the agreement was the greater of: the aggregate of the investment of the selling party and an amount representing an internal rate of return of 8%, or the last twelve months of EBITDA multiplied by 5.5 less net debt times the selling party's ownership percentage.

On November 14, 2018, the Company received notification of exercise of the put option from RDIF. On February 11, 2019, the Company entered into a definitive agreement (the "Agreement") with an affiliate of RDIF relating to the put option that was exercised by RDIF. The transactions contemplated by the Agreement closed on February 22, 2019. Under the terms of the Agreement, in full satisfaction of the settlement put option that was exercised by RDIF, Titan paid $25 million in cash to RDIF at the closing of the transaction, and agreed, subject to the completion of regulatory approval, to issue 4,032,259 shares of restricted Titan common stock to RDIF in a private placement. Due to pending regulatory approval, the issuance of the shares of restricted Titan common stock pursuant to the Agreement was not completed as of September 30, 2020. Immediately following the closing, RDIF continued to own the same interest in Voltyre-Prom, subject to the terms of the Agreement and the Shareholders’ Agreement. Titan has retained the right to buy back the Titan shares from RDIF for $25 million until February 12, 2022 and, if the stock buyback is consummated within the first year, at the time of such buyback, RDIF would be required to convey to Titan, based on current ownership, a 10.71% interest in Voltyre-Prom, resulting in RDIF reducing its interest in Voltyre-Prom from 35.7% to 25%.

On January 8, 2019, the Company received notification of exercise of the put option from OEP. During the second quarter of 2019, the Company made a payment to OEP in the amount of $16.0 million representing the majority of the interest on the amount due to OEP with respect to the put option. On July 30, 2019, Titan Luxembourg S.à r.l. (the “Titan Purchaser”), a subsidiary of the Company, entered into a sale purchase agreement (the “OEP Agreement”) with subsidiaries of OEP, relating to the settlement put option under the Shareholders’ Agreement that was exercised by OEP. Pursuant to the terms of the OEP Agreement, on July 31, 2019, the Titan Purchaser paid to OEP $30.7 million in cash, which, together with the Titan Purchaser’s prior payment to OEP of $16.0 million during the second quarter of 2019, were made in full satisfaction of the settlement put option exercised by OEP under the Shareholders’ Agreement. Immediately following the closing, OEP ceased to have any ownership interests in, and the Titan Purchaser and RDIF owned 64.3% and 35.7%, respectively, of, Voltyre-Prom.

As of September 30, 2020, the value of the redeemable noncontrolling interest held by RDIF was recorded at $25 million, the value of the shares of restricted stock to be issued pursuant to the terms of the agreement.
The following is a reconciliation of redeemable noncontrolling interest as of September 30, 2020 and 2019 (amounts in thousands):
20202019
Balance at January 1$25,000 $119,813 
   Reclassification as a result of Agreement regarding put option— (49,883)
   Payment of interest on redeemable noncontrolling interest— (46,722)
   Loss attributable to redeemable noncontrolling interest— (819)
   Currency translation— 683 
   Redemption value adjustment— 1,928 
Balance at September 30,$25,000 $25,000 

This obligation represents the value of the restricted common stock due to RDIF on September 30, 2020, and is presented in the Condensed Consolidated Balance Sheets in redeemable noncontrolling interest, which is treated as mezzanine equity.
v3.20.2
LEASE COMMITMENTS (Notes)
9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Lessee, Operating Leases [Text Block] LEASESThe Company leases certain buildings and equipment under both operating and finance leases.  Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under FASB Accounting Standards Codification Topic 842 "Leases," the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit interest rate, the Company used its incremental borrowing rate (6.79%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statement of Operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the Condensed Consolidated Statement of Operations. Short-term operating leases, which have an initial term of twelve months or less, are not recorded on the Condensed Consolidated Balance Sheets.
Supplemental balance sheet information related to leases was as follows (amounts in thousands):
Balance Sheet ClassificationSeptember 30, 2020December 31, 2019
Operating lease ROU assetsOperating lease assets$21,936 $23,914 
Operating lease current liabilitiesOther current liabilities$6,798 $6,729 
Operating lease long-term liabilitiesOther long-term liabilities15,126 17,360 
    Total operating lease liabilities$21,924 $24,089 
Finance lease, grossProperty, plant & equipment, net$6,374 $6,684 
Finance lease accumulated depreciationProperty, plant & equipment, net(2,837)(2,194)
   Finance lease, net$3,537 $4,490 
Finance lease current liabilitiesOther current liabilities$871 $1,110 
Finance lease long-term liabilitiesOther long-term liabilities3,118 3,770 
   Total finance lease liabilities$3,989 $4,880 
At September 30, 2020, maturity of lease liabilities were as follows (amounts in thousands):
Operating LeasesFinance Leases
October 1 - December 31, 2020$1,936 $424 
20216,540 1,667 
20225,101 1,580 
20233,477 1,135 
20242,083 426 
Thereafter3,698 197 
Total lease payments$22,835 $5,429 
Less imputed interest911 1,440 
$21,924 $3,989 
Weighted average remaining lease term (in years)4.283.11
Supplemental cash flow information related to leases for the nine months ended September 30, 2020 were as follows: operating cash flows from operating leases were $5.8 million and operating cash flows from finance leases were $0.3 million.
Lessee, Finance Leases [Text Block] LEASESThe Company leases certain buildings and equipment under both operating and finance leases.  Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under FASB Accounting Standards Codification Topic 842 "Leases," the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit interest rate, the Company used its incremental borrowing rate (6.79%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the Condensed Consolidated Statement of Operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the Condensed Consolidated Statement of Operations. Short-term operating leases, which have an initial term of twelve months or less, are not recorded on the Condensed Consolidated Balance Sheets.
Supplemental balance sheet information related to leases was as follows (amounts in thousands):
Balance Sheet ClassificationSeptember 30, 2020December 31, 2019
Operating lease ROU assetsOperating lease assets$21,936 $23,914 
Operating lease current liabilitiesOther current liabilities$6,798 $6,729 
Operating lease long-term liabilitiesOther long-term liabilities15,126 17,360 
    Total operating lease liabilities$21,924 $24,089 
Finance lease, grossProperty, plant & equipment, net$6,374 $6,684 
Finance lease accumulated depreciationProperty, plant & equipment, net(2,837)(2,194)
   Finance lease, net$3,537 $4,490 
Finance lease current liabilitiesOther current liabilities$871 $1,110 
Finance lease long-term liabilitiesOther long-term liabilities3,118 3,770 
   Total finance lease liabilities$3,989 $4,880 
At September 30, 2020, maturity of lease liabilities were as follows (amounts in thousands):
Operating LeasesFinance Leases
October 1 - December 31, 2020$1,936 $424 
20216,540 1,667 
20225,101 1,580 
20233,477 1,135 
20242,083 426 
Thereafter3,698 197 
Total lease payments$22,835 $5,429 
Less imputed interest911 1,440 
$21,924 $3,989 
Weighted average remaining lease term (in years)4.283.11
Supplemental cash flow information related to leases for the nine months ended September 30, 2020 were as follows: operating cash flows from operating leases were $5.8 million and operating cash flows from finance leases were $0.3 million.
v3.20.2
EMPLOYEE BENEFIT PLANS
9 Months Ended
Sep. 30, 2020
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Disclosure [Text Block] EMPLOYEE BENEFIT PLANS
The Company has three frozen defined benefit pension plans covering certain employees or former employees of three U.S. subsidiaries. The Company also has pension plans covering certain employees of several foreign subsidiaries. The Company also sponsors a number of defined contribution plans in the U.S. and at foreign subsidiaries. The Company contributed approximately $1.4 million to the pension plans during the nine months ended September 30, 2020, and expects to contribute approximately $0.7 million to the pension plans during the remainder of 2020.
The components of net periodic pension cost consisted of the following for the periods set forth below (amounts in thousands):
Three months endedNine months ended
September 30,September 30,
2020201920202019
Service cost$200 $228 $728 $658 
Interest cost857 1,075 2,595 3,304 
Expected return on assets(1,360)(1,186)(4,078)(3,563)
Amortization of unrecognized prior service cost— 56 — 169 
Amortization of net unrecognized loss696 766 2,088 2,296 
      Net periodic pension cost$393 $939 $1,333 $2,864 
Service cost is recorded as cost of sales in the Condensed Consolidated Statement of Operations while all other components are recorded in other income.
v3.20.2
VARIABLE INTEREST ENTITIES (Notes)
9 Months Ended
Sep. 30, 2020
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract]  
Variable Interest Entities Disclosure [Text Block] VARIABLE INTEREST ENTITIES
The Company holds a variable interest in two joint ventures for which the Company is the primary beneficiary. These joint ventures operate distribution facilities that primarily distribute mining products. Titan is the 50% owner of one of these distribution facilities, which is located in Canada, and the 40% owner of the other such facility, which is located in Australia. The Company’s variable interests in these two joint ventures relate to sales of Titan products to these entities, consigned inventory, and working capital loans. Titan also is party to a joint venture that is the consortium that owns Voltyre-Prom, of which Titan originally was a 43% owner. On July 31, 2019, however, Titan purchased additional shares resulting in a 64.3% ownership in the consortium and the joint venture became a majority owned entity and is no longer a variable interest entity (a VIE). See Note 8 for additional information.
The Company also held a variable interest in two other entities for which Titan was the primary beneficiary. Each of these entities provided specific manufacturing related services at the Company's Tennessee facility. Titan's variable interest in these entities relates to financial support to the entities through providing many of the assets used by these entities in their business. The Company owns no equity in these entities. In March 2020, the Company delivered a notice of termination of the supply agreement with these entities and the Company no longer holds a variable interest in them.
As the primary beneficiary of these VIEs, the VIEs’ assets, liabilities, and results of operations are included in the Company’s condensed consolidated financial statements. The other equity holders’ interests are reflected in “Net income (loss) attributable to noncontrolling interests” in the Condensed Consolidated Statements of Operations and “Noncontrolling interests” in the Condensed Consolidated Balance Sheets.
The following table summarizes the carrying amount of the VIEs’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets:
 September 30,
2020
December 31, 2019
Cash and cash equivalents$1,640 $2,190 
Inventory1,054 1,070 
Other current assets1,320 1,027 
Property, plant and equipment, net1,231 1,327 
   Total assets$5,245 $5,614 
Current liabilities$54 $1,110 
Other long-term liabilities960 579 
  Total liabilities$1,014 $1,689 
All assets in the above table can only be used to settle obligations of the consolidated VIE to which the respective assets relate. Liabilities are nonrecourse obligations. Amounts presented in the table above are adjusted for intercompany eliminations.

The Company holds variable interests in certain VIEs that are not consolidated because Titan is not the primary beneficiary. The Company's involvement with these entities is in the form of direct equity interests and prepayments related to purchases of materials. The maximum exposure to loss as reflected in the table below represents the loss of assets recognized by Titan relating to non-consolidated entities and amounts due to the non-consolidated assets. The assets and liabilities recognized in Titan's Condensed Consolidated Balance Sheets related to Titan's interest in these non-consolidated VIEs and the Company's maximum exposure to loss related to non-consolidated VIEs as of the dates set forth below were as follows (amounts in thousands):
 September 30, 2020December 31, 2019
Investments$5,177 $4,973 
Other current assets— — 
     Total VIE assets5,177 4,973 
Accounts payable1,120 2,006 
  Maximum exposure to loss$6,297 $6,979 
v3.20.2
RESTRUCTURING ACTIVITIES (Notes)
9 Months Ended
Sep. 30, 2020
Restructuring Cost and Reserve [Line Items]  
Restructuring and Related Activities Disclosure [Text Block] RESTRUCTURING ACTIVITIES
As part of the North American and Corporate Restructuring plan, which was approved in the second quarter of 2020, certain positions have been eliminated to continue ongoing operational improvement initiatives designed to prioritize resource allocation, reduce costs and drive profitability for the Company on a global basis.

The Company incurred $0.0 million and $0.4 million during the three and nine months ended September 30, 2020, respectively, for severance costs related to the rationalization of certain Corporate positions. The Company paid the severance amounts during the third quarter of 2020. There were no amounts recorded for the workforce reduction for the three and nine months ended September 30, 2019.

As part of the closure of the Saltville, Virginia wheel operations, then expected to be completed during the third quarter of 2020 and currently expected to be completed during the fourth quarter of 2020, the Company recorded an inventory impairment charge of $1.0 million for the nine months ended September 30, 2020.
v3.20.2
ROYALTY EXPENSE
9 Months Ended
Sep. 30, 2020
Other Income and Expenses [Abstract]  
ROYALTY EXPENSE ROYALTY EXPENSEThe Company has trademark license agreements with The Goodyear Tire & Rubber Company to manufacture and sell certain farm tires under the Goodyear brand. These agreements cover sales in North America, Latin America, Europe, the Middle East, Africa, Russia, and other Commonwealth of Independent States countries. Each of these agreements is scheduled to expire in 2025. Royalty expenses were $2.4 million and $2.5 million for the three months ended September 30, 2020 and 2019, respectively, and $7.3 million and $7.5 million for the nine months ended September 30, 2020 and 2019, respectively.
v3.20.2
OTHER INCOME
9 Months Ended
Sep. 30, 2020
Other Income and Expenses [Abstract]  
OTHER INCOME, NET OTHER INCOME
Other income consisted of the following (amounts in thousands):
Three months endedNine months ended
September 30,September 30,
 2020201920202019
Gain on property insurance settlement (1)$— $— $4,936 $— 
Gain (loss) on sale of Wheels India Limited shares— 4,695 (703)4,695 
Equity investment income227 445 596 2,294 
(Loss) gain on sale of assets(58)(59)834 708 
Building rental income512 362 1,226 1,096 
Government subsidies for COVID-19 relief 892 — 1,402 — 
Other income (expense)710 (377)820 (1,303)
 $2,283 $5,066 $9,111 $7,490 

(1) The gain on property insurance settlement relates to the receipt of insurance proceeds during the three months ended March 31, 2020 for a 2017 fire that occurred at a facility of TTRC, a subsidiary of the Company, located in Fort McMurray in Alberta, Canada.
v3.20.2
INCOME TAXES
9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company recorded income tax expense of $0.3 million and income tax benefit of $2.1 million for the three months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020 and 2019, the Company recorded income tax expense of $2.4 million and income tax benefit of $0.8 million, respectively. The Company's effective income tax rate was (3)% and (11)% for the three months ended September 30, 2020 and 2019, respectively, and (5)% and (3)% for the nine months ended September 30, 2020 and 2019, respectively.

The Company’s 2020 and 2019 income tax expense and rates differed from the amount of income tax determined by applying the U.S. Federal income tax rate to pre-tax income primarily as a result of U.S. and certain foreign jurisdictions that incurred a full valuation allowance on deferred tax assets created by current year projected losses and partially offset by a reduction of the liability for unrecognized tax positions. In addition, there were non-deductible royalty expenses and statutorily required income adjustments made in certain foreign jurisdictions that negatively impacted the tax rate for the nine months ended September 30, 2020 and 2019.

The Company continues to monitor the realization of its deferred tax assets and assesses the need for a valuation allowance. The Company analyzes available positive and negative evidence to determine if a valuation allowance is needed based on the weight of the evidence. This objectively verifiable evidence primarily includes the past three years' profit and loss positions. This process requires management to make estimates, assumptions, and judgments that are uncertain in nature. The Company has established valuation allowances with respect to deferred tax assets in the U.S. and certain foreign jurisdictions and continues to monitor and assess potential valuation allowances in all its jurisdictions.
The 2017 Tax Cuts and Jobs Act was enacted on December 22, 2017 and created a new requirement that certain income (i.e., global intangible low taxed income, hereinafter referred to as GILTI) earned by foreign subsidiaries must be included currently in the gross income of the U.S. shareholder. For 2020 and 2019, the Company has estimated an amount of GILTI income that is to be included in the calculation of 2020 and 2019 income tax expense. This GILTI income inclusion; however, is fully offset by a change in the valuation allowance.

On March 27, 2020, the U.S. government passed the CARES Act (the "CARES Act"), which provides tax relief to assist companies dealing with the effects of the COVID-19 pandemic. The Company does not expect the impact of the CARES Act to be material to the Company’s financial position or results of operations, except for the deferral of Social Security payroll taxes, which will benefit the Company's operating cash flows through the end of calendar year 2020.
v3.20.2
EARNINGS PER SHARE
9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
Earnings per share (EPS) were as follows (amounts in thousands, except per share data):
Three months endedNine months ended
September 30,September 30,
2020201920202019
Net loss attributable to Titan$(12,643)$(19,144)$(43,174)$(23,590)
   Redemption value adjustment— (491)— (1,928)
Net loss applicable to common shareholders$(12,643)$(19,635)$(43,174)$(25,518)
Determination of shares:
   Weighted average shares outstanding (basic)60,926 60,161 60,630 60,037 
   Effect of equity awards— — — — 
   Weighted average shares outstanding (diluted)60,926 60,161 60,630 60,037 
Earnings per share:
   Basic and diluted(0.21)(0.33)(0.71)(0.43)
The effect of equity awards has been excluded for the three and nine months ended September 30, 2020, as the effect would have been antidilutive. The weighted average share amount excluded for equity awards for the three and nine months ended September 30, 2020, was 539 thousand and 261 thousand, respectively.
v3.20.2
LITIGATION
9 Months Ended
Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
LITIGATION LITIGATION
The Company is a party to routine legal proceedings arising out of the normal course of business. Due to the difficult nature of predicting unresolved and future legal claims, the Company cannot anticipate or predict the material adverse effect on its consolidated financial condition, results of operations, or cash flows as a result of efforts to comply with, or liabilities pertaining to, legal judgments.

At September 30, 2020, two of Titan’s subsidiaries were involved in litigation concerning environmental laws and regulations.

In June 2015, Titan Tire Corporation (Titan Tire) and Dico, Inc. (Dico) appealed an order from the U.S. District Court for the South District of Iowa granting the federal government’s motion for summary judgment that found Dico liable for violating the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) and an Environmental Protection Agency (EPA) Administrative Order and awarded response costs, civil penalties, and punitive damages.

In December 2015, the U.S. Court of Appeals for the Eighth Circuit reversed the District Court’s summary judgment order with respect to “arranger” liability for Titan Tire and Dico under CERCLA and the imposition of punitive damages against Dico for violating the EPA Administrative Order, but affirmed the summary judgment order imposing civil penalties in the amount of $1.62 million against Dico for violating the EPA Administrative Order. The case was remanded to the District Court for a new trial on the remaining issues.

The trial occurred in April 2017. On September 5, 2017, the District Court issued an order: (a) concluding Titan Tire and Dico arranged for the disposal of a hazardous substance in violation of 42 U.S.C. § 9607(a); (b) holding Titan Tire and Dico jointly and severally liable for $5.45 million in response costs previously incurred and reported by the United States relating to the alleged violation, including enforcement costs and attorney’s fees; and (c) awarding a declaratory judgment holding Titan Tire and Dico jointly and severally liable for all additional response costs previously incurred but not yet reported or to be incurred in the future, including enforcement costs and attorney’s fees. The District Court also held Dico liable for $5.45 million in punitive damages under 42 U.S.C. § 9607(c)(3) for violating a unilateral administrative order. The punitive damages award does not apply to Titan Tire. The Company accrued a contingent liability of $6.5 million, representing $5.45 million in costs incurred by the United States and $1.05 million of additional response costs, for this order in the quarter ended September 30, 2017.

During the third quarter of 2020, the Company accrued an incremental contingent legal accrual of $5.0 million related to the anticipated settlement of the Dico case. As of September 30, 2020, the $11.5 million contingent liability remains outstanding.

Titan Tire and Dico appealed the case to the U.S. Court of Appeals for the Eighth Circuit. On April 11, 2019, the U.S. Court of Appeals for the Eighth Circuit affirmed the District Court’s September 5, 2017, order. Thereafter, Dico and Titan Tire filed a petition for rehearing with the U.S. Court of Appeals for the Eighth Circuit, which was denied in August 2019. As a result of the current judgment in favor of the United States, and pursuant to Iowa Code § 624.23, a judgment lien exists over Titan Tire’s real property in the State of Iowa. Titan Tire maintains a supersedeas bond in the amount of $6.0 million relating to the judgment. The United States indicated that it does not currently intend to take steps to execute on this judgment lien in light of ongoing settlement discussions between the parties. However, there can be no assurance that the parties will settle this matter on terms acceptable to the parties.
v3.20.2
SEGMENT INFORMATION
9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment information SEGMENT INFORMATION
The Company has aggregated its operating units into reportable segments based on its three customer markets: agricultural, earthmoving/construction, and consumer. These segments are based on the information used by the Chief Executive Officer to make certain operating decisions, allocate portions of capital expenditures, and assess segment performance. Segment external sales, expenses, and income from operations are determined based on the results of operations for the operating units of the Company's manufacturing facilities. Segment assets are generally determined on the basis of the tangible assets located at such operating units’ manufacturing facilities and the intangible assets associated with the acquisitions of such operating units. However, certain operating units’ property, plant and equipment balances are carried at the corporate level.

Titan is organized primarily on the basis of products being included in three market segments, with each reportable segment including wheels, tires, wheel/tire assemblies, and undercarriage systems and components.
The table below presents information about certain operating results, separated by market segments, for each of the three and nine months ended September 30, 2020 and 2019 (amounts in thousands):
Three months endedNine months ended
September 30,September 30,
 2020201920202019
Net sales  
Agricultural$153,067 $156,625 $473,272 $512,639 
Earthmoving/construction123,227 155,659 372,606 517,186 
Consumer28,478 33,621 86,527 117,051 
 $304,772 $345,905 $932,405 $1,146,876 
Gross profit  
Agricultural$16,191 $10,426 $45,830 $46,798 
Earthmoving/construction12,409 12,935 34,777 50,806 
Consumer2,717 3,739 7,821 13,068 
$31,317 $27,100 $88,428 $110,672 
(Loss) income from operations  
Agricultural$3,091 $(1,230)$5,389 $17,062 
Earthmoving/construction656 (2,938)(8,240)8,293 
Consumer(88)(229)1,042 3,120 
Corporate & Unallocated(10,467)(8,219)(17,703)(39,385)
      Loss from operations(6,808)(12,616)(19,512)(10,910)
Interest expense(7,251)(8,164)(23,076)(23,751)
Foreign exchange (loss) gain(1,336)(2,266)(9,742)2,218 
Other income, net2,283 5,066 9,111 7,490 
      Loss before income taxes$(13,112)$(17,980)$(43,219)$(24,953)
Assets by segment were as follows as of the dates set forth below (amounts in thousands):
September 30,
2020
December 31,
2019
Total assets  
Agricultural$437,994 $423,955 
Earthmoving/construction458,890 496,988 
Consumer94,092 123,320 
Corporate & Unallocated25,371 70,044 
 $1,016,347 $1,114,307 
v3.20.2
RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2020
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block] RELATED PARTY TRANSACTIONSThe Company sells products and pays commissions to companies controlled by persons related to the Chairman of the Board of Directors of the Company, Mr. Maurice Taylor. The related party is Mr. Fred Taylor, who is Mr. Maurice Taylor’s brother. The companies with which Mr. Fred Taylor is associated that do business with Titan include the following: Blacksmith OTR, LLC; F.B.T. Enterprises, Inc.; Green Carbon, Inc.; Silverstone, Inc.; and OTR Wheel Engineering, Inc.  Sales of Titan products to these companies were approximately $0.1 million and $0.6 million for the three and nine months ended September 30, 2020, respectively, and approximately $0.3 million and $0.9 million for the three and nine months ended September 30, 2019, respectively. Titan had trade receivables due from these companies of approximately $0.2 million at September 30, 2020, and approximately $0.2 million at December 31, 2019.  Sales commissions paid to the above companies were approximately $0.3 million and $1.0 million for the three and nine months ended September 30, 2020 as compared to $0.4 million and $1.1 million for the three and nine months ended September 30, 2019.
v3.20.2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Notes)
9 Months Ended
Sep. 30, 2020
Stockholders' Equity Note [Abstract]  
Comprehensive Loss Note ACCUMULATED OTHER COMPREHENSIVE LOSS
Accumulated other comprehensive loss consisted of the following (amounts in thousands):
 Currency
Translation
Adjustments
Gain (Loss) on
Derivatives
Unrecognized
Losses and
Prior Service
Cost
 
 
Total
Balance at July 1, 2020$(223,988)$(198)$(24,796)$(248,982)
Currency translation adjustments5,376 — — 5,376 
Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $45— — 575 575 
Derivative gain (loss)— (17)— (17)
Balance at September 30, 2020$(218,612)$(215)$(24,221)$(243,048)

 Currency
Translation
Adjustments
Gain (Loss) on
Derivatives
Unrecognized
Losses and
Prior Service
Cost
 
 
Total
Balance at January 1, 2020$(192,507)$— $(26,144)$(218,651)
Currency translation adjustments (1)(26,105)— — (26,105)
Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $65— — 1,923 1,923 
Derivative gain (loss)— (215)— (215)
Balance at September 30, 2020$(218,612)$(215)$(24,221)$(243,048)

(1) The increase in currency translation adjustments for the nine months ended September 30, 2020 was due to foreign currency rate fluctuations and also due to the settlement of certain intercompany loans during the quarter.
v3.20.2
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 SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$— $119,850 $305,097 $(120,175)$304,772 
Cost of sales202 108,642 284,786 (120,175)273,455 
Asset impairment— — — — — 
Gross (loss) profit(202)11,208 20,311 — 31,317 
Selling, general and administrative expenses5,180 2,593 25,678 — 33,451 
Research and development expenses209 769 1,262 — 2,240 
Royalty expense654 855 925 — 2,434 
(Loss) income from operations(6,245)6,991 (7,554)— (6,808)
Interest (expense) income(6,986)96 (361)— (7,251)
Intercompany interest income (expense)527 530 (1,057)— — 
Foreign exchange loss— (99)(1,237)— (1,336)
Other income322 119 1,842 — 2,283 
(Loss) income before income taxes(12,382)7,637 (8,367)— (13,112)
Provision for income taxes(1,851)79 2,114 — 342 
Equity in earnings of subsidiaries(2,923)— 3,315 (392)— 
Net (loss) income(13,454)7,558 (7,166)(392)(13,454)
Net loss attributable to noncontrolling interests— — (811)— (811)
Net (loss) income attributable to Titan$(13,454)$7,558 $(6,355)$(392)$(12,643)
(Amounts in thousands)Condensed Consolidating Statements of Operations
For the Three Months Ended September 30, 2019
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$— $141,133 $345,992 $(141,220)$345,905 
Cost of sales107 134,169 325,749 (141,220)318,805 
Gross (loss) profit(107)6,964 20,243 — 27,100 
Selling, general and administrative expenses1,513 12,094 21,347 — 34,954 
Research and development expenses276 678 1,355 — 2,309 
Royalty expense679 860 914 — 2,453 
Loss from operations(2,575)(6,668)(3,373)— (12,616)
Interest (expense) income(7,281)(888)— (8,164)
Intercompany interest income (expense)884 841 (1,725)— — 
Foreign exchange loss(47)(152)(2,067)— (2,266)
Other income (expense)358 (528)5,236 — 5,066 
Loss before income taxes(8,661)(6,502)(2,817)— (17,980)
Provision for income taxes635 126 1,303 — 2,064 
Equity in earnings of subsidiaries(10,748)— (1,851)12,599 — 
Net (loss) income(20,044)(6,628)(5,971)12,599 (20,044)
Net loss attributable to noncontrolling interests— — (900)— (900)
Net (loss) income attributable to Titan$(20,044)$(6,628)$(5,071)$12,599 $(19,144)
(Amounts in thousands) Condensed Consolidating Statements of Operations
For the Nine Months Ended September 30, 2020
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$— $406,810 $933,657 $(408,062)$932,405 
Cost of sales525 367,998 879,930 (408,062)840,391 
Asset impairment1,007 — 2,579 — 3,586 
Gross (loss) profit(1,532)38,812 51,148 — 88,428 
Selling, general and administrative expenses16,519 6,738 70,592 — 93,849 
Research and development expenses664 2,239 3,879 — 6,782 
Royalty expense2,147 2,694 2,468 — 7,309 
(Loss) income from operations(20,862)27,141 (25,791)— (19,512)
Interest (expense) income(21,241)81 (1,916)— (23,076)
Intercompany interest income (expense)1,586 1,709 (3,295)— — 
Foreign exchange loss— (981)(8,761)— (9,742)
Other income (expense)1,330 (142)7,923 — 9,111 
(Loss) income before income taxes(39,187)27,808 (31,840)— (43,219)
Provision for income taxes(3,764)256 5,885 — 2,377 
Equity in earnings of subsidiaries(10,173)— 17,384 (7,211)— 
Net (loss) income(45,596)27,552 (20,341)(7,211)(45,596)
Net loss attributable to noncontrolling interests— — (2,422)— (2,422)
Net (loss) income attributable to Titan$(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 SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$— $475,652 $1,147,568 $(476,344)$1,146,876 
Cost of sales248 438,535 1,073,765 (476,344)1,036,204 
Gross (loss) profit(248)37,117 73,803 — 110,672 
Selling, general and administrative expenses4,694 35,299 66,612 — 106,605 
Research and development expenses768 2,263 4,439 — 7,470 
Royalty expense1,743 3,005 2,759 — 7,507 
(Loss) income from operations(7,453)(3,450)(7)— (10,910)
Interest (expense) income(21,311)(2,445)— (23,751)
Intercompany interest income (expense)2,158 2,731 (4,889)— — 
Foreign exchange loss (gain)(69)(156)2,443 — 2,218 
Other income (expense)1,162 (1,606)7,934 — 7,490 
(Loss) income before income taxes(25,513)(2,476)3,036 — (24,953)
Provision for income taxes(6,390)410 6,741 — 761 
Equity in earnings of subsidiaries(6,591)— (1,320)7,911 — 
Net (loss) income(25,714)(2,886)(5,025)7,911 (25,714)
Net loss attributable to noncontrolling interests— — (2,124)— (2,124)
Net (loss) income attributable to Titan$(25,714)$(2,886)$(2,901)$7,911 $(23,590)
(Amounts in thousands)Condensed Consolidating Statements of Comprehensive Loss
For the Three Months Ended September 30, 2020
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net (loss) income$(13,454)$7,558 $(7,166)$(392)$(13,454)
Derivative (loss) gain(17)— (17)17 (17)
Currency translation adjustment4,275 — 4,275 (4,275)4,275 
Pension liability adjustments, net of tax575 667 (92)(575)575 
Comprehensive (loss) income (8,621)8,225 (3,000)(5,225)(8,621)
Net comprehensive loss attributable to redeemable and noncontrolling interests— — (1,912)— (1,912)
Comprehensive (loss) income attributable to Titan$(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 SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net (loss) income$(20,044)$(6,628)$(5,971)$12,599 $(20,044)
Currency translation adjustment(20,324)— (20,324)20,324 (20,324)
Pension liability adjustments, net of tax590 753 (163)(590)590 
Comprehensive (loss) income (39,778)(5,875)(26,458)32,333 (39,778)
Net comprehensive loss attributable to redeemable and noncontrolling interests— — (1,213)— (1,213)
Comprehensive (loss) income attributable to Titan$(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 SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net (loss) income$(45,596)$27,552 $(20,341)$(7,211)$(45,596)
Derivative (loss) gain(215)— (215)215 (215)
Currency translation adjustment(28,498)— (28,498)28,498 (28,498)
Pension liability adjustments, net of tax1,923 2,001 (78)(1,923)1,923 
Comprehensive (loss) income (72,386)29,553 (49,132)19,579 (72,386)
Net comprehensive loss attributable to redeemable and noncontrolling interests— — (4,814)— (4,814)
Comprehensive (loss) income attributable to Titan$(72,386)$29,553 $(44,318)$19,579 $(67,572)
(Amounts in thousands)Condensed Consolidating Statements of Comprehensive Loss
For the Nine Months Ended September 30, 2019
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net (loss) income$(25,714)$(2,886)$(5,025)$7,911 $(25,714)
Currency translation adjustment(19,280)— (19,280)19,280 (19,280)
Pension liability adjustments, net of tax1,594 2,256 (662)(1,594)1,594 
Comprehensive (loss) income (43,400)(630)(24,967)25,597 (43,400)
Net comprehensive loss attributable to redeemable and noncontrolling interests— — (897)— (897)
Comprehensive (loss) income attributable to Titan$(43,400)$(630)$(24,070)$25,597 $(42,503)


(Amounts in thousands)Condensed Consolidating Balance Sheets
September 30, 2020
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Assets     
Cash and cash equivalents$5,002 $$93,767 $— $98,772 
Accounts receivable, net— — 192,764 — 192,764 
Inventories— 31,763 252,468 — 284,231 
Assets held for sale6,640 — — — 6,640 
Prepaid and other current assets4,756 16,655 34,597 — 56,008 
Total current assets16,398 48,421 573,596 — 638,415 
Property, plant and equipment, net3,784 84,724 236,451 — 324,959 
Investment in subsidiaries585,724 — 70,501 (656,225)— 
Other assets2,259 5,056 45,658 — 52,973 
Total assets$608,165 $138,201 $926,206 $(656,225)$1,016,347 
Liabilities and Equity     
Short-term debt$— $— $32,641 $— $32,641 
Accounts payable2,343 23,542 124,994 — 150,879 
Other current liabilities28,465 22,854 80,415 — 131,734 
Total current liabilities30,808 46,396 238,050 — 315,254 
Long-term debt396,642 — 35,147 — 431,789 
Other long-term liabilities2,231 18,037 54,826 — 75,094 
Intercompany accounts(32,322)(446,212)478,534 — — 
Redeemable noncontrolling interest— — 25,000 — 25,000 
Titan shareholders' equity210,806 519,980 95,277 (656,225)169,838 
Noncontrolling interests— — (628)— (628)
Total liabilities and equity$608,165 $138,201 $926,206 $(656,225)$1,016,347 
(Amounts in thousands)Condensed Consolidating Balance Sheets
December 31, 2019
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Assets     
Cash and cash equivalents$2,843 $$63,952 $— $66,799 
Accounts receivable, net— 185,236 — 185,238 
Inventories— 41,088 292,268 — 333,356 
Assets held for sale7,203 — — — 7,203 
Prepaid and other current assets3,217 17,352 38,300 — 58,869 
Total current assets13,263 58,446 579,756 — 651,465 
Property, plant and equipment, net3,443 91,734 272,418 — 367,595 
Investment in subsidiaries763,336 — 61,019 (824,355)— 
Other assets3,405 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 payable4,951 18,455 135,241 — 158,647 
Other current liabilities20,912 17,941 68,400 — 107,253 
Total current liabilities26,377 36,465 264,311 — 327,153 
Long-term debt431,960 — 6,509 — 438,469 
Other long-term liabilities6,493 15,443 62,761 — 84,697 
Intercompany accounts42,798 (397,847)355,049 — — 
Redeemable noncontrolling interest— — 25,000 — 25,000 
Titan shareholders' equity275,819 500,330 283,057 (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 SubsidiariesNon-Guarantor SubsidiariesConsolidated
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, net191 (8)743 926 
Net cash provided by (used for) investing activities99 (3,892)29,157 25,364 
Cash flows from financing activities:    
Proceeds from borrowings31,334 333 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 equivalents2,159 (1)29,815 31,973 
Cash and cash equivalents, beginning of period2,843 63,952 66,799 
Cash and cash equivalents, end of period$5,002 $$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 SubsidiariesNon-Guarantor SubsidiariesConsolidated
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 borrowings73,000 287 50,866 124,153 
Payment on debt(14,000)— (45,296)(59,296)
Dividends paid(901)— — (901)
Net cash provided by financing activities58,099 287 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)7,876 (3,082)
Cash and cash equivalents, beginning of period23,630 58,051 81,685 
Cash and cash equivalents, end of period$12,669 $$65,927 $78,603 
v3.20.2
ACCOUNTING POLICIES (Policies)
9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Fair value of financial instruments
Fair value of financial instruments
The Company records all financial instruments, including cash and cash equivalents, accounts receivable, notes receivable, accounts payable, other accruals, and notes payable at cost, which approximates fair value due to their short term or stated rates.  Investments in marketable equity securities are recorded at fair value.  The 6.50% senior secured notes due 2023 (senior secured notes) were carried at a cost of $396.6 million at September 30, 2020. The fair value of the senior secured notes at September 30, 2020, as obtained through an independent pricing source, was approximately $300.3 million.
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]
New accounting standards

Recently adopted accounting standards
In June 2016, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which amends the current accounting guidance and requires the measurement of all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. For trade receivables, loans, and other financial instruments, we are required to use a forward-looking expected loss model that reflects losses that are probable rather than the incurred loss model for recognizing credit losses. The standard became effective for interim and annual periods beginning after December 15, 2019. In addition, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, which provides clarity on certain aspects of the amendments in ASU 2016-13. The Company adopted this guidance prospectively on January 1, 2020 and it did not have a material effect on the Company's condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments in this update are effective for fiscal years beginning after December 15, 2019. We adopted this ASU on January 1, 2020 and it did not have a material effect on the Company's condensed consolidated financial statements.

Accounting standards issued but not yet adopted

In August 2018, the FASB issued ASU No. 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this update are effective for fiscal years ending after December 15, 2020. The adoption of this guidance is not expected to have a material effect on the Company's condensed consolidated financial statements.

In March 2020, the SEC issued a final rule that amends the disclosure requirements related to certain registered securities under SEC Regulation S-X Rule 3-10 with respect to the disclosure requirements related to issuers and guarantors of guaranteed debt securities. The final rule allows registrants to provide alternative financial disclosures in either the registrant’s MD&A or financial statements, rather than the previous requirement under Rule 3-10, which required condensed consolidating financial information within the financial statements. It also simplifies the requirements in Rule 3-10 that currently must be met for a parent company to qualify for exceptions allowing it to provide alternative disclosures rather than full audited financial statements. The final rule also reduces the periods for which summarized financial information is required to be presented to the most recent (1) annual period and (2) year-to-date interim period. The final rule applies to annual reports on Form 10-K for fiscal years ending after January 4, 2021 and quarterly reports on Form 10-Q for quarterly periods ending after January 4, 2021 and registrants may voluntarily comply with the final rule before the effective date. The Company does not expect the future adoption, which is limited to disclosures only, to have a material effect on the Company’s consolidated financial statements.
v3.20.2
ACCOUNTS RECEIVABLE (Tables)
9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
Accounts receivable consisted of the following (amounts in thousands):
 September 30,
2020
December 31,
2019
Accounts receivable$196,707 $188,952 
Allowance for doubtful accounts(3,943)(3,714)
Accounts receivable, net$192,764 $185,238 
v3.20.2
INVENTORIES (Tables)
9 Months Ended
Sep. 30, 2020
Inventory Disclosure [Abstract]  
Schedule of Inventory, Current [Table Text Block]
Inventories consisted of the following (amounts in thousands):
 September 30,
2020
December 31,
2019
Raw material$77,182 $83,569 
Work-in-process35,436 48,369 
Finished goods171,613 201,418 
 $284,231 $333,356 
v3.20.2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables)
9 Months Ended
Sep. 30, 2020
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment [Table Text Block]
Property, plant and equipment, net consisted of the following (amounts in thousands):
 September 30,
2020
December 31,
2019
Land and improvements$41,920 $44,386 
Buildings and improvements252,654 249,168 
Machinery and equipment588,497 605,205 
Tools, dies and molds104,142 113,603 
Construction-in-process12,241 16,237 
 999,454 1,028,599 
Less accumulated depreciation(674,495)(661,004)
 $324,959 $367,595 
v3.20.2
INTANGIBLE ASSETS (Tables)
9 Months Ended
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill [Table Text Block]
The components of intangible assets consisted of the following (amounts in thousands):
Weighted Average Useful Lives
(in years)
September 30, 2020
September 30,
2020
December 31,
2019
Amortizable intangible assets:
     Customer relationships6.92$12,211 $12,629 
     Patents, trademarks and other9.459,884 11,598 
          Total at cost22,095 24,227 
     Less accumulated amortization(14,484)(14,461)
$7,611 $9,766 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]
The estimated aggregate amortization expense at September 30, 2020, for each of the years (or other periods) set forth below was as follows (amounts in thousands):
October 1 - December 31, 2020$485 
20211,305 
2022958 
2023958 
2024957 
Thereafter2,948 
 $7,611 
v3.20.2
WARRANTY (Tables)
9 Months Ended
Sep. 30, 2020
Product Warranties Disclosures [Abstract]  
Schedule of Product Warranty Liability [Table Text Block]
Changes in the warranty liability during the nine months ended September 30, 2020 and 2019, respectively, consisted of the following (amounts in thousands):
 20202019
Warranty liability, January 1$14,334 $16,327 
Provision for warranty liabilities4,060 3,599 
Warranty payments made(4,346)(4,969)
Warranty liability, September 30$14,048 $14,957 
v3.20.2
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Tables)
9 Months Ended
Sep. 30, 2020
Debt Instrument [Line Items]  
Schedule of Long-term Debt Instruments [Table Text Block]
Long-term debt consisted of the following (amounts in thousands):
September 30, 2020
Principal BalanceUnamortized Debt IssuanceNet Carrying Amount
6.50% senior secured notes due 2023$400,000 $(3,358)$396,642 
Titan Europe credit facilities47,457 — 47,457 
Revolving credit facility— — — 
Other debt20,331 — 20,331 
     Total debt467,788 (3,358)464,430 
Less amounts due within one year32,641 — 32,641 
     Total long-term debt$435,147 $(3,358)$431,789 
December 31, 2019
Principal BalanceUnamortized Debt IssuanceNet Carrying Amount
6.50% senior secured notes due 2023$400,000 $(4,040)$395,960 
Titan Europe credit facilities43,591 — 43,591 
Revolving credit facility36,000 — 36,000 
Other debt24,171 — 24,171 
     Total debt503,762 (4,040)499,722 
Less amounts due within one year61,253 — 61,253 
     Total long-term debt$442,509 $(4,040)$438,469 
Schedule of Maturities of Long-term Debt [Table Text Block]
Aggregate principal maturities of long-term debt at September 30, 2020, for each of the years (or other periods) set forth below were as follows (amounts in thousands):
October 1 - December 31, 2020$16,853 
202123,207 
20229,954 
2023410,945 
20246,158 
Thereafter671 
 $467,788 
v3.20.2
REDEEMABLE NONCONTROLLING INTEREST (Tables)
9 Months Ended
Sep. 30, 2020
Noncontrolling Interest [Abstract]  
Redeemable Noncontrolling Interest [Table Text Block]
The following is a reconciliation of redeemable noncontrolling interest as of September 30, 2020 and 2019 (amounts in thousands):
20202019
Balance at January 1$25,000 $119,813 
   Reclassification as a result of Agreement regarding put option— (49,883)
   Payment of interest on redeemable noncontrolling interest— (46,722)
   Loss attributable to redeemable noncontrolling interest— (819)
   Currency translation— 683 
   Redemption value adjustment— 1,928 
Balance at September 30,$25,000 $25,000 
v3.20.2
LEASE COMMITMENTS (Tables)
9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Lease, Cost [Table Text Block]
Supplemental balance sheet information related to leases was as follows (amounts in thousands):
Balance Sheet ClassificationSeptember 30, 2020December 31, 2019
Operating lease ROU assetsOperating lease assets$21,936 $23,914 
Operating lease current liabilitiesOther current liabilities$6,798 $6,729 
Operating lease long-term liabilitiesOther long-term liabilities15,126 17,360 
    Total operating lease liabilities$21,924 $24,089 
Finance lease, grossProperty, plant & equipment, net$6,374 $6,684 
Finance lease accumulated depreciationProperty, plant & equipment, net(2,837)(2,194)
   Finance lease, net$3,537 $4,490 
Finance lease current liabilitiesOther current liabilities$871 $1,110 
Finance lease long-term liabilitiesOther long-term liabilities3,118 3,770 
   Total finance lease liabilities$3,989 $4,880 
Lessee, Operating Lease, Liability, Maturity [Table Text Block]
At September 30, 2020, maturity of lease liabilities were as follows (amounts in thousands):
Operating LeasesFinance Leases
October 1 - December 31, 2020$1,936 $424 
20216,540 1,667 
20225,101 1,580 
20233,477 1,135 
20242,083 426 
Thereafter3,698 197 
Total lease payments$22,835 $5,429 
Less imputed interest911 1,440 
$21,924 $3,989 
Weighted average remaining lease term (in years)4.283.11
Finance Lease, Liability, Maturity [Table Text Block]
Operating LeasesFinance Leases
October 1 - December 31, 2020$1,936 $424 
20216,540 1,667 
20225,101 1,580 
20233,477 1,135 
20242,083 426 
Thereafter3,698 197 
Total lease payments$22,835 $5,429 
Less imputed interest911 1,440 
$21,924 $3,989 
Weighted average remaining lease term (in years)4.283.11
v3.20.2
EMPLOYEE BENEFIT PLANS (Tables)
9 Months Ended
Sep. 30, 2020
Retirement Benefits [Abstract]  
Schedule of Defined Benefit Plans Disclosures [Table Text Block]
The components of net periodic pension cost consisted of the following for the periods set forth below (amounts in thousands):
Three months endedNine months ended
September 30,September 30,
2020201920202019
Service cost$200 $228 $728 $658 
Interest cost857 1,075 2,595 3,304 
Expected return on assets(1,360)(1,186)(4,078)(3,563)
Amortization of unrecognized prior service cost— 56 — 169 
Amortization of net unrecognized loss696 766 2,088 2,296 
      Net periodic pension cost$393 $939 $1,333 $2,864 
v3.20.2
VARIABLE INTEREST ENTITIES (Tables)
9 Months Ended
Sep. 30, 2020
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract]  
Schedule of Variable Interest Entities [Table Text Block]
The following table summarizes the carrying amount of the VIEs’ assets and liabilities included in the Company’s Condensed Consolidated Balance Sheets:
 September 30,
2020
December 31, 2019
Cash and cash equivalents$1,640 $2,190 
Inventory1,054 1,070 
Other current assets1,320 1,027 
Property, plant and equipment, net1,231 1,327 
   Total assets$5,245 $5,614 
Current liabilities$54 $1,110 
Other long-term liabilities960 579 
  Total liabilities$1,014 $1,689 
All assets in the above table can only be used to settle obligations of the consolidated VIE to which the respective assets relate. Liabilities are nonrecourse obligations. Amounts presented in the table above are adjusted for intercompany eliminations.
Schedule of Non Consolidated Variable Interest Entities [Table Text Block]
The Company holds variable interests in certain VIEs that are not consolidated because Titan is not the primary beneficiary. The Company's involvement with these entities is in the form of direct equity interests and prepayments related to purchases of materials. The maximum exposure to loss as reflected in the table below represents the loss of assets recognized by Titan relating to non-consolidated entities and amounts due to the non-consolidated assets. The assets and liabilities recognized in Titan's Condensed Consolidated Balance Sheets related to Titan's interest in these non-consolidated VIEs and the Company's maximum exposure to loss related to non-consolidated VIEs as of the dates set forth below were as follows (amounts in thousands):
 September 30, 2020December 31, 2019
Investments$5,177 $4,973 
Other current assets— — 
     Total VIE assets5,177 4,973 
Accounts payable1,120 2,006 
  Maximum exposure to loss$6,297 $6,979 
v3.20.2
OTHER INCOME (Tables)
9 Months Ended
Sep. 30, 2020
Other Income and Expenses [Abstract]  
Other Income [Table Text Block]
Other income consisted of the following (amounts in thousands):
Three months endedNine months ended
September 30,September 30,
 2020201920202019
Gain on property insurance settlement (1)$— $— $4,936 $— 
Gain (loss) on sale of Wheels India Limited shares— 4,695 (703)4,695 
Equity investment income227 445 596 2,294 
(Loss) gain on sale of assets(58)(59)834 708 
Building rental income512 362 1,226 1,096 
Government subsidies for COVID-19 relief 892 — 1,402 — 
Other income (expense)710 (377)820 (1,303)
 $2,283 $5,066 $9,111 $7,490 

(1) The gain on property insurance settlement relates to the receipt of insurance proceeds during the three months ended March 31, 2020 for a 2017 fire that occurred at a facility of TTRC, a subsidiary of the Company, located in Fort McMurray in Alberta, Canada.
v3.20.2
EARNINGS PER SHARE (Tables)
9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
Earnings per share (EPS) were as follows (amounts in thousands, except per share data):
Three months endedNine months ended
September 30,September 30,
2020201920202019
Net loss attributable to Titan$(12,643)$(19,144)$(43,174)$(23,590)
   Redemption value adjustment— (491)— (1,928)
Net loss applicable to common shareholders$(12,643)$(19,635)$(43,174)$(25,518)
Determination of shares:
   Weighted average shares outstanding (basic)60,926 60,161 60,630 60,037 
   Effect of equity awards— — — — 
   Weighted average shares outstanding (diluted)60,926 60,161 60,630 60,037 
Earnings per share:
   Basic and diluted(0.21)(0.33)(0.71)(0.43)
v3.20.2
SEGMENT INFORMATION (Tables)
9 Months Ended
Sep. 30, 2020
Segment Reporting Information [Line Items]  
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]
The table below presents information about certain operating results, separated by market segments, for each of the three and nine months ended September 30, 2020 and 2019 (amounts in thousands):
Three months endedNine months ended
September 30,September 30,
 2020201920202019
Net sales  
Agricultural$153,067 $156,625 $473,272 $512,639 
Earthmoving/construction123,227 155,659 372,606 517,186 
Consumer28,478 33,621 86,527 117,051 
 $304,772 $345,905 $932,405 $1,146,876 
Gross profit  
Agricultural$16,191 $10,426 $45,830 $46,798 
Earthmoving/construction12,409 12,935 34,777 50,806 
Consumer2,717 3,739 7,821 13,068 
$31,317 $27,100 $88,428 $110,672 
(Loss) income from operations  
Agricultural$3,091 $(1,230)$5,389 $17,062 
Earthmoving/construction656 (2,938)(8,240)8,293 
Consumer(88)(229)1,042 3,120 
Corporate & Unallocated(10,467)(8,219)(17,703)(39,385)
      Loss from operations(6,808)(12,616)(19,512)(10,910)
Interest expense(7,251)(8,164)(23,076)(23,751)
Foreign exchange (loss) gain(1,336)(2,266)(9,742)2,218 
Other income, net2,283 5,066 9,111 7,490 
      Loss before income taxes$(13,112)$(17,980)$(43,219)$(24,953)
Reconciliation of Assets from Segment to Consolidated [Table Text Block]
Assets by segment were as follows as of the dates set forth below (amounts in thousands):
September 30,
2020
December 31,
2019
Total assets  
Agricultural$437,994 $423,955 
Earthmoving/construction458,890 496,988 
Consumer94,092 123,320 
Corporate & Unallocated25,371 70,044 
 $1,016,347 $1,114,307 
v3.20.2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)
9 Months Ended
Sep. 30, 2020
Stockholders' Equity Note [Abstract]  
Schedule of Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss consisted of the following (amounts in thousands):
 Currency
Translation
Adjustments
Gain (Loss) on
Derivatives
Unrecognized
Losses and
Prior Service
Cost
 
 
Total
Balance at July 1, 2020$(223,988)$(198)$(24,796)$(248,982)
Currency translation adjustments5,376 — — 5,376 
Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $45— — 575 575 
Derivative gain (loss)— (17)— (17)
Balance at September 30, 2020$(218,612)$(215)$(24,221)$(243,048)

 Currency
Translation
Adjustments
Gain (Loss) on
Derivatives
Unrecognized
Losses and
Prior Service
Cost
 
 
Total
Balance at January 1, 2020$(192,507)$— $(26,144)$(218,651)
Currency translation adjustments (1)(26,105)— — (26,105)
Defined benefit pension plans: Amortization of unrecognized losses and prior service cost, net of tax of $65— — 1,923 1,923 
Derivative gain (loss)— (215)— (215)
Balance at September 30, 2020$(218,612)$(215)$(24,221)$(243,048)

(1) The increase in currency translation adjustments for the nine months ended September 30, 2020 was due to foreign currency rate fluctuations and also due to the settlement of certain intercompany loans during the quarter.
v3.20.2
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION (Tables)
9 Months Ended
Sep. 30, 2020
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, 2020
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$— $119,850 $305,097 $(120,175)$304,772 
Cost of sales202 108,642 284,786 (120,175)273,455 
Asset impairment— — — — — 
Gross (loss) profit(202)11,208 20,311 — 31,317 
Selling, general and administrative expenses5,180 2,593 25,678 — 33,451 
Research and development expenses209 769 1,262 — 2,240 
Royalty expense654 855 925 — 2,434 
(Loss) income from operations(6,245)6,991 (7,554)— (6,808)
Interest (expense) income(6,986)96 (361)— (7,251)
Intercompany interest income (expense)527 530 (1,057)— — 
Foreign exchange loss— (99)(1,237)— (1,336)
Other income322 119 1,842 — 2,283 
(Loss) income before income taxes(12,382)7,637 (8,367)— (13,112)
Provision for income taxes(1,851)79 2,114 — 342 
Equity in earnings of subsidiaries(2,923)— 3,315 (392)— 
Net (loss) income(13,454)7,558 (7,166)(392)(13,454)
Net loss attributable to noncontrolling interests— — (811)— (811)
Net (loss) income attributable to Titan$(13,454)$7,558 $(6,355)$(392)$(12,643)
(Amounts in thousands)Condensed Consolidating Statements of Operations
For the Three Months Ended September 30, 2019
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$— $141,133 $345,992 $(141,220)$345,905 
Cost of sales107 134,169 325,749 (141,220)318,805 
Gross (loss) profit(107)6,964 20,243 — 27,100 
Selling, general and administrative expenses1,513 12,094 21,347 — 34,954 
Research and development expenses276 678 1,355 — 2,309 
Royalty expense679 860 914 — 2,453 
Loss from operations(2,575)(6,668)(3,373)— (12,616)
Interest (expense) income(7,281)(888)— (8,164)
Intercompany interest income (expense)884 841 (1,725)— — 
Foreign exchange loss(47)(152)(2,067)— (2,266)
Other income (expense)358 (528)5,236 — 5,066 
Loss before income taxes(8,661)(6,502)(2,817)— (17,980)
Provision for income taxes635 126 1,303 — 2,064 
Equity in earnings of subsidiaries(10,748)— (1,851)12,599 — 
Net (loss) income(20,044)(6,628)(5,971)12,599 (20,044)
Net loss attributable to noncontrolling interests— — (900)— (900)
Net (loss) income attributable to Titan$(20,044)$(6,628)$(5,071)$12,599 $(19,144)
(Amounts in thousands) Condensed Consolidating Statements of Operations
For the Nine Months Ended September 30, 2020
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$— $406,810 $933,657 $(408,062)$932,405 
Cost of sales525 367,998 879,930 (408,062)840,391 
Asset impairment1,007 — 2,579 — 3,586 
Gross (loss) profit(1,532)38,812 51,148 — 88,428 
Selling, general and administrative expenses16,519 6,738 70,592 — 93,849 
Research and development expenses664 2,239 3,879 — 6,782 
Royalty expense2,147 2,694 2,468 — 7,309 
(Loss) income from operations(20,862)27,141 (25,791)— (19,512)
Interest (expense) income(21,241)81 (1,916)— (23,076)
Intercompany interest income (expense)1,586 1,709 (3,295)— — 
Foreign exchange loss— (981)(8,761)— (9,742)
Other income (expense)1,330 (142)7,923 — 9,111 
(Loss) income before income taxes(39,187)27,808 (31,840)— (43,219)
Provision for income taxes(3,764)256 5,885 — 2,377 
Equity in earnings of subsidiaries(10,173)— 17,384 (7,211)— 
Net (loss) income(45,596)27,552 (20,341)(7,211)(45,596)
Net loss attributable to noncontrolling interests— — (2,422)— (2,422)
Net (loss) income attributable to Titan$(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 SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net sales$— $475,652 $1,147,568 $(476,344)$1,146,876 
Cost of sales248 438,535 1,073,765 (476,344)1,036,204 
Gross (loss) profit(248)37,117 73,803 — 110,672 
Selling, general and administrative expenses4,694 35,299 66,612 — 106,605 
Research and development expenses768 2,263 4,439 — 7,470 
Royalty expense1,743 3,005 2,759 — 7,507 
(Loss) income from operations(7,453)(3,450)(7)— (10,910)
Interest (expense) income(21,311)(2,445)— (23,751)
Intercompany interest income (expense)2,158 2,731 (4,889)— — 
Foreign exchange loss (gain)(69)(156)2,443 — 2,218 
Other income (expense)1,162 (1,606)7,934 — 7,490 
(Loss) income before income taxes(25,513)(2,476)3,036 — (24,953)
Provision for income taxes(6,390)410 6,741 — 761 
Equity in earnings of subsidiaries(6,591)— (1,320)7,911 — 
Net (loss) income(25,714)(2,886)(5,025)7,911 (25,714)
Net loss attributable to noncontrolling interests— — (2,124)— (2,124)
Net (loss) income attributable to Titan$(25,714)$(2,886)$(2,901)$7,911 $(23,590)
Condensed Statement of Comprehensive Income [Table Text Block]
(Amounts in thousands)Condensed Consolidating Statements of Comprehensive Loss
For the Three Months Ended September 30, 2020
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net (loss) income$(13,454)$7,558 $(7,166)$(392)$(13,454)
Derivative (loss) gain(17)— (17)17 (17)
Currency translation adjustment4,275 — 4,275 (4,275)4,275 
Pension liability adjustments, net of tax575 667 (92)(575)575 
Comprehensive (loss) income (8,621)8,225 (3,000)(5,225)(8,621)
Net comprehensive loss attributable to redeemable and noncontrolling interests— — (1,912)— (1,912)
Comprehensive (loss) income attributable to Titan$(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 SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net (loss) income$(20,044)$(6,628)$(5,971)$12,599 $(20,044)
Currency translation adjustment(20,324)— (20,324)20,324 (20,324)
Pension liability adjustments, net of tax590 753 (163)(590)590 
Comprehensive (loss) income (39,778)(5,875)(26,458)32,333 (39,778)
Net comprehensive loss attributable to redeemable and noncontrolling interests— — (1,213)— (1,213)
Comprehensive (loss) income attributable to Titan$(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 SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net (loss) income$(45,596)$27,552 $(20,341)$(7,211)$(45,596)
Derivative (loss) gain(215)— (215)215 (215)
Currency translation adjustment(28,498)— (28,498)28,498 (28,498)
Pension liability adjustments, net of tax1,923 2,001 (78)(1,923)1,923 
Comprehensive (loss) income (72,386)29,553 (49,132)19,579 (72,386)
Net comprehensive loss attributable to redeemable and noncontrolling interests— — (4,814)— (4,814)
Comprehensive (loss) income attributable to Titan$(72,386)$29,553 $(44,318)$19,579 $(67,572)
(Amounts in thousands)Condensed Consolidating Statements of Comprehensive Loss
For the Nine Months Ended September 30, 2019
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Net (loss) income$(25,714)$(2,886)$(5,025)$7,911 $(25,714)
Currency translation adjustment(19,280)— (19,280)19,280 (19,280)
Pension liability adjustments, net of tax1,594 2,256 (662)(1,594)1,594 
Comprehensive (loss) income (43,400)(630)(24,967)25,597 (43,400)
Net comprehensive loss attributable to redeemable and noncontrolling interests— — (897)— (897)
Comprehensive (loss) income attributable to Titan$(43,400)$(630)$(24,070)$25,597 $(42,503)
Condensed Balance Sheet [Table Text Block]
(Amounts in thousands)Condensed Consolidating Balance Sheets
September 30, 2020
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Assets     
Cash and cash equivalents$5,002 $$93,767 $— $98,772 
Accounts receivable, net— — 192,764 — 192,764 
Inventories— 31,763 252,468 — 284,231 
Assets held for sale6,640 — — — 6,640 
Prepaid and other current assets4,756 16,655 34,597 — 56,008 
Total current assets16,398 48,421 573,596 — 638,415 
Property, plant and equipment, net3,784 84,724 236,451 — 324,959 
Investment in subsidiaries585,724 — 70,501 (656,225)— 
Other assets2,259 5,056 45,658 — 52,973 
Total assets$608,165 $138,201 $926,206 $(656,225)$1,016,347 
Liabilities and Equity     
Short-term debt$— $— $32,641 $— $32,641 
Accounts payable2,343 23,542 124,994 — 150,879 
Other current liabilities28,465 22,854 80,415 — 131,734 
Total current liabilities30,808 46,396 238,050 — 315,254 
Long-term debt396,642 — 35,147 — 431,789 
Other long-term liabilities2,231 18,037 54,826 — 75,094 
Intercompany accounts(32,322)(446,212)478,534 — — 
Redeemable noncontrolling interest— — 25,000 — 25,000 
Titan shareholders' equity210,806 519,980 95,277 (656,225)169,838 
Noncontrolling interests— — (628)— (628)
Total liabilities and equity$608,165 $138,201 $926,206 $(656,225)$1,016,347 
(Amounts in thousands)Condensed Consolidating Balance Sheets
December 31, 2019
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Assets     
Cash and cash equivalents$2,843 $$63,952 $— $66,799 
Accounts receivable, net— 185,236 — 185,238 
Inventories— 41,088 292,268 — 333,356 
Assets held for sale7,203 — — — 7,203 
Prepaid and other current assets3,217 17,352 38,300 — 58,869 
Total current assets13,263 58,446 579,756 — 651,465 
Property, plant and equipment, net3,443 91,734 272,418 — 367,595 
Investment in subsidiaries763,336 — 61,019 (824,355)— 
Other assets3,405 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 payable4,951 18,455 135,241 — 158,647 
Other current liabilities20,912 17,941 68,400 — 107,253 
Total current liabilities26,377 36,465 264,311 — 327,153 
Long-term debt431,960 — 6,509 — 438,469 
Other long-term liabilities6,493 15,443 62,761 — 84,697 
Intercompany accounts42,798 (397,847)355,049 — — 
Redeemable noncontrolling interest— — 25,000 — 25,000 
Titan shareholders' equity275,819 500,330 283,057 (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 
Condensed Cash Flow Statement [Table Text Block]
(Amounts in thousands)Condensed Consolidating Statements of Cash Flows
For the Nine Months Ended September 30, 2020
 Titan
Intl., Inc. (Parent)
Guarantor SubsidiariesNon-Guarantor SubsidiariesConsolidated
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, net191 (8)743 926 
Net cash provided by (used for) investing activities99 (3,892)29,157 25,364 
Cash flows from financing activities:    
Proceeds from borrowings31,334 333 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 equivalents2,159 (1)29,815 31,973 
Cash and cash equivalents, beginning of period2,843 63,952 66,799 
Cash and cash equivalents, end of period$5,002 $$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 SubsidiariesNon-Guarantor SubsidiariesConsolidated
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 borrowings73,000 287 50,866 124,153 
Payment on debt(14,000)— (45,296)(59,296)
Dividends paid(901)— — (901)
Net cash provided by financing activities58,099 287 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)7,876 (3,082)
Cash and cash equivalents, beginning of period23,630 58,051 81,685 
Cash and cash equivalents, end of period$12,669 $$65,927 $78,603 
v3.20.2
ACCOUNTING POLICIES (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Long-term Debt $ 396,600   $ 396,600    
Debt Instrument, Fair Value Disclosure $ 300,300   $ 300,300    
Common Stock, Dividends, Per Share, Declared $ 0 $ 0.005 $ 0.005 $ 0.015  
Senior Secured Notes 6.50 Percent [Member] [Member]          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Debt Instrument, Interest Rate, Stated Percentage 6.50%   6.50%    
Long-term Debt $ 400,000   $ 400,000   $ 400,000
v3.20.2
ACCOUNTS RECEIVABLE (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Receivables [Abstract]    
Accounts receivable $ 196,707 $ 188,952
Allowance for doubtful accounts 3,943 3,714
Accounts receivable, net $ 192,764 $ 185,238
v3.20.2
INVENTORIES (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Inventory Disclosure [Abstract]    
Raw material $ 77,182 $ 83,569
Work-in-process 35,436 48,369
Finished goods 171,613 201,418
Inventory, Gross $ 284,231 $ 333,356
v3.20.2
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Gross $ 999,454   $ 999,454   $ 1,028,599
Less accumulated depreciation (674,495)   (674,495)   (661,004)
Property, Plant and Equipment, Net 324,959   324,959   367,595
Depreciation     37,700 $ 38,900  
Asset Impairment Cost 0 $ 0 3,586 $ 0  
Assets 1,016,347   1,016,347   1,114,307
Assets held for sale 6,640   6,640   7,203
Land and Land Improvements [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Gross 41,920   41,920   44,386
Building and Building Improvements [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Gross 252,654   252,654   249,168
Machinery and Equipment [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Gross 588,497   588,497   605,205
Tools, Dies and Molds [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Gross 104,142   104,142   113,603
Construction in Progress [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Gross 12,241   12,241   $ 16,237
Titan Tire Reclamation Corporation [Member]          
Property, Plant and Equipment [Line Items]          
Asset Impairment Cost     2,600    
Assets $ 500   $ 500    
v3.20.2
INTANGIBLE ASSETS (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Intangible Assets, Net (Excluding Goodwill) [Abstract]      
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 6 years 11 months 1 day    
Finite-Lived Customer Relationships, Gross $ 12,211   $ 12,629
Finite-Lived Intangible Asset, Useful Life 9 years 5 months 12 days    
Finite-Lived Trademarks, Gross $ 9,884   11,598
Finite-Lived Intangible Assets, Gross 22,095   24,227
Finite-Lived Intangible Assets, Accumulated Amortization (14,484)   (14,461)
Intangible Assets, Net (Excluding Goodwill) 7,611   $ 9,766
Amortization of Intangible Assets 1,600 $ 1,500  
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]      
October 1 - December 31, 2020 485    
2021 1,305    
2022 958    
2023 958    
2024 957    
Thereafter $ 2,948    
v3.20.2
WARRANTY (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Product Warranty Liability [Line Items]    
Warranty liability at January 1 $ 14,334 $ 16,327
Provision for warranty liabilities 4,060 3,599
Warranty payments made (4,346) (4,969)
Warranty liability at June 30 $ 14,048 $ 14,957
v3.20.2
REVOLVING CREDIT FACILITY AND LONG-TERM DEBT (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Debt Instruments [Abstract]    
6.50% senior secured notes due 2023 $ 396,600  
Long-term Line of Credit, Noncurrent 0 $ 36,000
Long-term Debt and Lease Obligation, Including Current Maturities 464,430 499,722
Short-term debt 32,641 61,253
Long-term debt 431,789 438,469
Debt Instrument, Unamortized Discount (3,358) (4,040)
Debt Instrument, Unamortized Discount, Current 0 0
Debt Instrument, Unamortized Discount (Premium), Net (3,358) (4,040)
Maturities of Long-term Debt [Abstract]    
October 1 - December 31, 2020 16,853  
2021 23,207  
2022 9,954  
2023 410,945  
2024 6,158  
Thereafter 671  
Line of Credit Facility, Maximum Borrowing Capacity 125,000  
Letters of Credit Outstanding, Amount 19,700  
Line of Credit Facility, Current Borrowing Capacity $ 61,400  
Senior Secured Notes 6.50 Percent [Member] [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Interest Rate, Effective Percentage 6.79%  
Debt Instruments [Abstract]    
6.50% senior secured notes due 2023 $ 400,000 400,000
Long-term Debt 396,642 395,960
Debt Instrument, Unamortized Discount $ (3,358) (4,040)
Maturities of Long-term Debt [Abstract]    
Debt Instrument, Interest Rate, Stated Percentage 6.50%  
Titan Europe [Member]    
Debt Instruments [Abstract]    
Other Borrowings $ 47,457 43,591
Debt Instrument, Unamortized Discount, Noncurrent 0 0
Other Debt Obligations [Member]    
Debt Instruments [Abstract]    
Other debt 20,331 24,171
Debt Instrument, Unamortized Discount, Noncurrent 0 0
Titan Brazil [Member]    
Debt Instruments [Abstract]    
Other debt 11,800  
Voltyre-Prom [Member]    
Debt Instruments [Abstract]    
Other debt 6,900  
Long-term Debt [Member]    
Debt Instruments [Abstract]    
Long-term Debt and Lease Obligation, Including Current Maturities 467,788 503,762
Long-term debt $ 435,147 $ 442,509
v3.20.2
REDEEMABLE NONCONTROLLING INTEREST (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Sep. 30, 2019
Jul. 31, 2019
Redeemable Noncontrolling Interest [Line Items]              
Equity Method Investment, Ownership Percentage             64.30%
Balance at January 1       $ 119,813 $ 25,000 $ 119,813  
Noncontrolling Interest, Period Increase (Decrease)   $ 0     0 (49,883)  
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest   (220) $ (265) (334) 0 (819)  
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest   (66) 321 428 0 683  
Redemption value adjustment $ 0 491 661 776 0 1,928  
Balance at June 30 $ 25,000 25,000     25,000 25,000  
AOCI Attributable to Parent [Member]              
Redeemable Noncontrolling Interest [Line Items]              
Noncontrolling Interest, Period Increase (Decrease)   (6,203)          
Additional paid-in capital [Member]              
Redeemable Noncontrolling Interest [Line Items]              
Noncontrolling Interest, Period Increase (Decrease)   6,203          
Redemption value adjustment   $ 491 $ 661 $ 776      
One Equity Partners [Member]              
Redeemable Noncontrolling Interest [Line Items]              
Payment of interest on redeemable noncontrolling interest         $ 0 $ (46,722)  
RDIF [Member]              
Redeemable Noncontrolling Interest [Line Items]              
Equity Method Investment, Ownership Percentage             35.70%
v3.20.2
LEASE COMMITMENTS (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Leases [Abstract]    
Operating Lease, Right-of-Use Asset $ 21,936 $ 23,914
Operating Lease, Liability, Current 6,798 6,729
Operating Lease, Liability, Noncurrent 15,126 17,360
Operating Lease, Liability 21,924 24,089
Finance Lease, Gross 6,374 6,684
Finance Lease Accumulated Depreciation (2,837) (2,194)
Finance Lease, Right-of-Use Asset 3,537 4,490
Finance Lease, Liability, Current 871 1,110
Finance Lease, Liability, Noncurrent 3,118 3,770
Finance Lease, Liability 3,989 $ 4,880
Lessee, Operating Lease, Liability, Payment, Due [Abstract]    
July 1 - December 31, 2020 1,936  
2021 6,540  
2022 5,101  
2023 3,477  
2024 2,083  
Thereafter 3,698  
Total lease payments 22,835  
Less imputed interest 911  
Finance Lease, Liability, Payment, Due [Abstract]    
April 1 - December 31, 2020 424  
2021 1,667  
2022 1,580  
2023 1,135  
2024 426  
Thereafter 197  
Total lease payment 5,429  
Lease imputed interest $ 1,440  
Operating Lease, Weighted Average Remaining Lease Term 4 years 3 months 10 days  
Finance Lease, Weighted Average Remaining Lease Term 3 years 1 month 9 days  
Operating Lease, Payments $ 5,800  
Finance Lease, Interest Payment on Liability $ 300  
v3.20.2
EMPLOYEE BENEFIT PLANS (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Defined Benefit Plan Disclosure [Line Items]        
Defined Benefit Plan, Plan Assets, Contributions by Employer     $ 1,400  
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year $ 700   700  
Pension Plan [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Service cost 200 $ 228 728 $ 658
Interest cost 857 1,075 2,595 3,304
Expected return on assets (1,360) (1,186) (4,078) (3,563)
Amortization of unrecognized prior service cost 0 56 0 169
Amortization of net unrecognized loss 696 766 2,088 2,296
Net periodic pension cost $ 393 $ 939 $ 1,333 $ 2,864
v3.20.2
VARIABLE INTEREST ENTITIES (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Sep. 30, 2019
Jul. 31, 2019
Dec. 31, 2018
Variable Interest Entity [Line Items]          
Cash and Cash Equivalents, at Carrying Value $ 98,772 $ 66,799 $ 78,603   $ 81,685
Inventories 284,231 333,356      
Property, Plant and Equipment, Net 324,959 367,595      
Other Assets, Noncurrent 52,973 95,247      
Total assets 1,016,347 1,114,307      
Total current liabilities 315,254 327,153      
Total liabilities 822,137 850,319      
Accounts payable 150,879 158,647      
Variable Interest Entity, Not Primary Beneficiary [Member]          
Variable Interest Entity [Line Items]          
Other Assets, Current 0 0      
Investments 5,177 4,973      
Total VIE assets 5,177 4,973      
Accounts payable 1,120 2,006      
  Maximum exposure to loss $ 6,297 6,979      
Titan Tire Reclamation Corporation [Member]          
Variable Interest Entity [Line Items]          
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage 50.00%        
Total assets $ 500        
Titan National Australia Holdings [Member]          
Variable Interest Entity [Line Items]          
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage 40.00%        
Variable Interest Entity, Primary Beneficiary [Member]          
Variable Interest Entity [Line Items]          
Cash and Cash Equivalents, at Carrying Value $ 1,640 2,190      
Inventories 1,054 1,070      
Other Assets, Current 1,320 1,027      
Property, Plant and Equipment, Net 1,231 1,327      
Total assets 5,245 5,614      
Total current liabilities 54 1,110      
Liabilities, Noncurrent 960 579      
Total liabilities $ 1,014 $ 1,689      
Titan Tire Russia B.V. [Member]          
Variable Interest Entity [Line Items]          
Noncontrolling Interest, Ownership Percentage by Parent     43.00% 64.30%  
v3.20.2
RESTRUCTURING ACTIVITIES (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Restructuring Cost and Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost $ 0.0 $ 0.4
Facility Closing [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring and Related Cost, Incurred Cost $ 1.0  
v3.20.2
ROYALTY EXPENSE (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Other Income and Expenses [Abstract]        
Royalty expense $ 2,434 $ 2,453 $ 7,309 $ 7,507
v3.20.2
OTHER INCOME (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Other Income and Expenses [Abstract]        
Insurance Recoveries $ 0 $ 0 $ 4,936 $ 0
Gain (Loss) on Investments 0 4,695 (703) (4,695)
Income (Loss) from Equity Method Investments 227 445 596 2,294
Gain (Loss) on Disposition of Assets (58) (59) 834 708
Building rental income 512 362 1,226 1,096
Other Nonrecurring Expense 892 0 1,402 0
Other Nonoperating Income 710   820  
Other Nonoperating Expense   (377)   (1,303)
Other income (expense) $ 2,283 $ 5,066 $ 9,111 $ 7,490
v3.20.2
INCOME TAXES (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Income Tax Disclosure [Abstract]        
Provision for income taxes $ 342 $ 2,064 $ 2,377 $ 761
Effective Income Tax Rate, Continuing Operations (3.00%) (11.00%) (5.00%) (3.00%)
v3.20.2
EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]            
Net loss attributable to Titan $ (12,643) $ (19,144)     $ (43,174) $ (23,590)
Redemption value adjustment 0 (491) $ (661) $ (776) 0 (1,928)
Net income (loss) applicable to common shareholders $ (12,643) $ (19,635)     $ (43,174) $ (25,518)
Weighted Average Number of Shares Outstanding, Basic 60,926 60,161     60,630 60,037
Effect of equity awards 0 0     0 0
Weighted average shares outstanding (diluted) 60,926 60,161     60,630 60,037
Earnings Per Share, Basic and Diluted $ (0.21) $ (0.33)     $ (0.71) $ (0.43)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 539       261  
v3.20.2
LITIGATION (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2017
Sep. 30, 2020
Dec. 31, 2019
Dec. 31, 2015
Loss Contingencies [Line Items]          
Accrual for Environmental Loss Contingencies, Revision in Estimates   $ 1,050      
Accrual for Environmental Loss Contingencies     $ 11,500    
Legal Appeal Bond       $ 6,000  
Judicial Ruling [Member]          
Loss Contingencies [Line Items]          
Loss Contingency Accrual         $ 1,620
Unfavorable Regulatory Action [Member]          
Loss Contingencies [Line Items]          
Accrual for Environmental Loss Contingencies, Revision in Estimates $ 5,450        
v3.20.2
SEGMENT INFORMATION (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Segment Reporting Information [Line Items]          
Revenue from Contract with Customer, Excluding Assessed Tax $ 304,772 $ 345,905 $ 932,405 $ 1,146,876  
Gross profit (loss) 31,317 27,100 88,428 110,672  
Income (loss) from operations (6,808) (12,616) (19,512) (10,910)  
Interest expense (7,251) (8,164) (23,076) (23,751)  
Foreign Currency Transaction Gain (Loss), before Tax (1,336) (2,266) (9,742) 2,218  
Other Nonoperating Income (Expense) 2,283 5,066 9,111 7,490  
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest (13,112) (17,980) (43,219) (24,953)  
Assets 1,016,347   1,016,347   $ 1,114,307
Operating Segments [Member]          
Segment Reporting Information [Line Items]          
Revenue from Contract with Customer, Excluding Assessed Tax 304,772 345,905 932,405 1,146,876  
Gross profit (loss) 31,317 27,100 88,428 110,672  
Income (loss) from operations (6,808) (12,616) (19,512) (10,910)  
Operating Segments [Member] | Agricultural [Member]          
Segment Reporting Information [Line Items]          
Revenue from Contract with Customer, Excluding Assessed Tax 153,067 156,625 473,272 512,639  
Gross profit (loss) 16,191 10,426 45,830 46,798  
Income (loss) from operations 3,091 (1,230) 5,389 17,062  
Assets 437,994   437,994   423,955
Operating Segments [Member] | Earthmoving/construction [Member]          
Segment Reporting Information [Line Items]          
Revenue from Contract with Customer, Excluding Assessed Tax 123,227 155,659 372,606 517,186  
Gross profit (loss) 12,409 12,935 34,777 50,806  
Income (loss) from operations 656 (2,938) (8,240) 8,293  
Assets 458,890   458,890   496,988
Operating Segments [Member] | Consumer [Member]          
Segment Reporting Information [Line Items]          
Revenue from Contract with Customer, Excluding Assessed Tax 28,478 33,621 86,527 117,051  
Gross profit (loss) 2,717 3,739 7,821 13,068  
Income (loss) from operations (88) (229) 1,042 3,120  
Assets 94,092   94,092   123,320
Operating Segments [Member] | Unallocated Amount to Segment [Member]          
Segment Reporting Information [Line Items]          
Income (loss) from operations (10,467) $ (8,219) (17,703) $ (39,385)  
Assets $ 25,371   $ 25,371   $ 70,044
v3.20.2
SEGMENT INFORMATION ASSETS (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]    
Assets $ 1,016,347 $ 1,114,307
Operating Segments [Member] | Agricultural [Member]    
Segment Reporting Information [Line Items]    
Assets 437,994 423,955
Operating Segments [Member] | Earthmoving/construction [Member]    
Segment Reporting Information [Line Items]    
Assets 458,890 496,988
Operating Segments [Member] | Consumer [Member]    
Segment Reporting Information [Line Items]    
Assets 94,092 123,320
Operating Segments [Member] | Unallocated Amount to Segment [Member]    
Segment Reporting Information [Line Items]    
Assets $ 25,371 $ 70,044
v3.20.2
RELATED PARTY TRANSACTIONS (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Jul. 31, 2019
Related Party Transaction [Line Items]            
Related Party Transaction, Revenues from Transactions with Related Party $ 0.1 $ 0.3 $ 0.6 $ 0.9    
Related Party Transaction, Due from (to) Related Party 0.2   0.2   $ 0.2  
Related Party Transaction, Expenses from Transactions with Related Party $ 0.3 $ 0.4 $ 1.0 $ 1.1    
Equity Method Investment, Ownership Percentage           64.30%
RDIF [Member]            
Related Party Transaction [Line Items]            
Equity Method Investment, Ownership Percentage           35.70%
v3.20.2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Jun. 30, 2020
Dec. 31, 2019
Stockholders' Equity Note [Abstract]            
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax $ (218,612)   $ (218,612)   $ (223,988) $ (192,507)
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), after Adjustments, before Tax, Parent (17)   (215)      
AOCI, Derivative Qualifying as Hedge, Excluded Component, after Tax (215)   (215)   (198) 0
Currency translation adjustments 5,376   (26,105)      
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax (24,221)   (24,221)   (24,796) (26,144)
Amortization of unrecognized losses and prior service cost, net of tax 575   1,923      
Accumulated other comprehensive loss (243,048)   (243,048)   $ (248,982) $ (218,651)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax $ 45 $ 79 $ 65 $ 311    
v3.20.2
SUBSIDIARY GUARANTOR FINANCIAL INFORMATION (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Jul. 31, 2019
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
Condensed Financial Statements, Captions [Line Items]                      
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax   $ (17)     $ 0     $ (215) $ 0    
Income Statement [Abstract]                      
Revenue from Contract with Customer, Excluding Assessed Tax   304,772     345,905     932,405 1,146,876    
Cost of sales   273,455     318,805     840,391 1,036,204    
Asset Impairment Cost   0     0     3,586 0    
Gross profit (loss)   31,317     27,100     88,428 110,672    
Selling, General and Administrative Expense   33,451     34,954     93,849 106,605    
Research and Development Expense   2,240     2,309     6,782 7,470    
Royalty expense   2,434     2,453     7,309 7,507    
Income (loss) from operations   (6,808)     (12,616)     (19,512) (10,910)    
Interest expense   (7,251)     (8,164)     (23,076) (23,751)    
Intercompany Interest Expense Income   0     0     0 0    
Foreign Currency Transaction Gain (Loss), before Tax   (1,336)     (2,266)     (9,742) 2,218    
Other Nonoperating Income (Expense)   2,283     5,066     9,111 7,490    
Loss before income taxes   (13,112)     (17,980)     (43,219) (24,953)    
Provision for income taxes   342     2,064     2,377 761    
Equity in Net Earnings (Loss) of Subsidiaries   0     0     0 0    
Net income (loss)   (13,454)     (20,044)     (45,596) (25,714)    
Net loss attributable to noncontrolling interests   (811)     (900)     (2,422) (2,124)    
Net income (loss) attributable to Titan   (12,643)     (19,144)     (43,174) (23,590)    
Comprehensive Income Statement [Abstract]                      
Net income (loss)   (13,454)     (20,044)     (45,596) (25,714)    
Currency translation adjustment   4,275     (20,324)     (28,498) (19,280)    
Pension liability adjustments, net of tax   575 $ 40 $ 1,308 590 $ 538 $ 466 1,923 1,594    
Comprehensive income (loss)   (8,621)     (39,778)     (72,386) (43,400)    
Net comprehensive loss attributable to redeemable and noncontrolling interests   (1,912)     (1,213)     (4,814) (897)    
Comprehensive income (loss) attributable to Titan   (6,709)     (38,565)     (67,572) (42,503)    
Statement of Financial Position [Abstract]                      
Cash and cash equivalents   98,772     78,603     98,772 78,603 $ 66,799 $ 81,685
Accounts Receivable, after Allowance for Credit Loss, Current   192,764           192,764   185,238  
Inventory, Net   284,231           284,231   333,356  
Prepaid Expense and Other Assets, Current   56,008           56,008   58,869  
Total current assets   638,415           638,415   651,465  
Property, Plant and Equipment, Net   324,959           324,959   367,595  
Equity Method Investments   0           0   0  
Other Assets, Noncurrent   52,973           52,973   95,247  
Total assets   1,016,347           1,016,347   1,114,307  
Short-term debt   32,641           32,641   61,253  
Accounts payable   150,879           150,879   158,647  
Other current liabilities   131,734           131,734   107,253  
Total current liabilities   315,254           315,254   327,153  
Long-term debt   431,789           431,789   438,469  
Liabilities, Other than Long-term Debt, Noncurrent   75,094           75,094   84,697  
Intercompany Accounts, Net   0           0   0  
Redeemable noncontrolling interest   25,000     25,000     25,000 25,000 25,000 119,813
Stockholders' Equity Attributable to Parent   169,838           169,838   234,851  
Stockholders' Equity Attributable to Noncontrolling Interest   (628)           (628)   4,137  
Total liabilities and equity   1,016,347           1,016,347   1,114,307  
Statement of Cash Flows [Abstract]                      
Net cash provided by (used for) operating activities               47,431 31,212    
Capital expenditures               (13,350) (26,254)    
Payments for (Proceeds from) Investments               (32,852) 0    
Proceeds from Insurance Settlement, Investing Activities               4,936 0    
Payment related to redeemable noncontrolling interest agreement $ (30,700)       (16,000)     0 (71,722)    
Payments for (Proceeds from) Other Investing Activities               926 1,354    
Net cash provided by (used for) investing activities               25,364 (96,622)    
Proceeds from borrowings               85,991 124,153    
Repayments of Other Debt               (116,601) (59,296)    
Payments of Dividends, Common Stock               (603) (901)    
Proceeds from (Payments for) Other Financing Activities               (2,723)      
Net cash provided by (used for) financing activities               (33,936) 63,956    
Effect of Exchange Rate on Cash and Cash Equivalents               (6,886) (1,628)    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect               31,973 (3,082)    
Cash and cash equivalents   98,772     78,603     98,772 78,603 66,799 81,685
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest         (66) $ 321 $ 428 0 683    
Assets held for sale   6,640           6,640   7,203  
Parent Company [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax   (17)           (215)      
Income Statement [Abstract]                      
Revenue from Contract with Customer, Excluding Assessed Tax   0     0     0 0    
Cost of sales   202     107     525 248    
Asset Impairment Cost   0           1,007      
Gross profit (loss)   (202)     (107)     (1,532) (248)    
Selling, General and Administrative Expense   5,180     1,513     16,519 4,694    
Research and Development Expense   209     276     664 768    
Royalty expense   654     679     2,147 1,743    
Income (loss) from operations   (6,245)     (2,575)     (20,862) (7,453)    
Interest expense   (6,986)     (7,281)     (21,241) (21,311)    
Intercompany Interest Expense Income   527     884     1,586 2,158    
Foreign Currency Transaction Gain (Loss), before Tax   0     (47)     0 (69)    
Other Nonoperating Income (Expense)   322     358     1,330 1,162    
Loss before income taxes   (12,382)     (8,661)     (39,187) (25,513)    
Provision for income taxes   (1,851)     635     (3,764) (6,390)    
Equity in Net Earnings (Loss) of Subsidiaries   (2,923)     (10,748)     (10,173) (6,591)    
Net income (loss)   (13,454)     (20,044)     (45,596) (25,714)    
Net loss attributable to noncontrolling interests   0     0     0 0    
Net income (loss) attributable to Titan   (13,454)     (20,044)     (45,596) (25,714)    
Comprehensive Income Statement [Abstract]                      
Net income (loss)   (13,454)     (20,044)     (45,596) (25,714)    
Currency translation adjustment   4,275     (20,324)     (28,498) (19,280)    
Pension liability adjustments, net of tax   575     590     1,923 1,594    
Comprehensive income (loss)   (8,621)     (39,778)     (72,386) (43,400)    
Net comprehensive loss attributable to redeemable and noncontrolling interests   0     0     0 0    
Comprehensive income (loss) attributable to Titan   (8,621)     (39,778)     (72,386) (43,400)    
Statement of Financial Position [Abstract]                      
Cash and cash equivalents   5,002     12,669     5,002 12,669 2,843 23,630
Accounts Receivable, after Allowance for Credit Loss, Current   0           0   0  
Inventory, Net   0           0   0  
Prepaid Expense and Other Assets, Current   4,756           4,756   3,217  
Total current assets   16,398           16,398   13,263  
Property, Plant and Equipment, Net   3,784           3,784   3,443  
Equity Method Investments   585,724           585,724   763,336  
Other Assets, Noncurrent   2,259           2,259   3,405  
Total assets   608,165           608,165   783,447  
Short-term debt   0           0   514  
Accounts payable   2,343           2,343   4,951  
Other current liabilities   28,465           28,465   20,912  
Total current liabilities   30,808           30,808   26,377  
Long-term debt   396,642           396,642   431,960  
Liabilities, Other than Long-term Debt, Noncurrent   2,231           2,231   6,493  
Intercompany Accounts, Net   (32,322)           (32,322)   42,798  
Redeemable noncontrolling interest   0           0   0  
Stockholders' Equity Attributable to Parent   210,806           210,806   275,819  
Stockholders' Equity Attributable to Noncontrolling Interest   0           0   0  
Total liabilities and equity   608,165           608,165   783,447  
Statement of Cash Flows [Abstract]                      
Net cash provided by (used for) operating activities               19,179 2,683    
Capital expenditures               (92) (21)    
Payments for (Proceeds from) Investments               0      
Proceeds from Insurance Settlement, Investing Activities               0      
Payment related to redeemable noncontrolling interest agreement                 (71,722)    
Payments for (Proceeds from) Other Investing Activities               191 0    
Net cash provided by (used for) investing activities               99 (71,743)    
Proceeds from borrowings               (31,334) (73,000)    
Repayments of Other Debt               (45,348) (14,000)    
Payments of Dividends, Common Stock               (603) (901)    
Proceeds from (Payments for) Other Financing Activities               (2,502)      
Net cash provided by (used for) financing activities               (17,119) 58,099    
Effect of Exchange Rate on Cash and Cash Equivalents               0 0    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect               2,159 (10,961)    
Cash and cash equivalents   5,002     12,669     5,002 12,669 2,843 23,630
Assets held for sale   6,640           6,640   7,203  
Guarantor Subsidiaries [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax   0           0      
Income Statement [Abstract]                      
Revenue from Contract with Customer, Excluding Assessed Tax   119,850     141,133     406,810 475,652    
Cost of sales   108,642     134,169     367,998 438,535    
Asset Impairment Cost   0           0      
Gross profit (loss)   11,208     6,964     38,812 37,117    
Selling, General and Administrative Expense   2,593     12,094     6,738 35,299    
Research and Development Expense   769     678     2,239 2,263    
Royalty expense   855     860     2,694 3,005    
Income (loss) from operations   6,991     (6,668)     27,141 (3,450)    
Interest expense   96     5     81 5    
Intercompany Interest Expense Income   530     841     1,709 2,731    
Foreign Currency Transaction Gain (Loss), before Tax   (99)     (152)     (981) (156)    
Other Nonoperating Income (Expense)   119     (528)     (142) (1,606)    
Loss before income taxes   7,637     (6,502)     27,808 (2,476)    
Provision for income taxes   79     126     256 410    
Equity in Net Earnings (Loss) of Subsidiaries   0     0     0 0    
Net income (loss)   7,558     (6,628)     27,552 (2,886)    
Net loss attributable to noncontrolling interests   0     0     0 0    
Net income (loss) attributable to Titan   7,558     (6,628)     27,552 (2,886)    
Comprehensive Income Statement [Abstract]                      
Net income (loss)   7,558     (6,628)     27,552 (2,886)    
Currency translation adjustment   0     0     0 0    
Pension liability adjustments, net of tax   667     753     2,001 2,256    
Comprehensive income (loss)   8,225     (5,875)     29,553 (630)    
Net comprehensive loss attributable to redeemable and noncontrolling interests   0     0     0 0    
Comprehensive income (loss) attributable to Titan   8,225     (5,875)     29,553 (630)    
Statement of Financial Position [Abstract]                      
Cash and cash equivalents   3     7     3 7 4 4
Accounts Receivable, after Allowance for Credit Loss, Current   0           0   2  
Inventory, Net   31,763           31,763   41,088  
Prepaid Expense and Other Assets, Current   16,655           16,655   17,352  
Total current assets   48,421           48,421   58,446  
Property, Plant and Equipment, Net   84,724           84,724   91,734  
Equity Method Investments   0           0   0  
Other Assets, Noncurrent   5,056           5,056   4,211  
Total assets   138,201           138,201   154,391  
Short-term debt   0           0   69  
Accounts payable   23,542           23,542   18,455  
Other current liabilities   22,854           22,854   17,941  
Total current liabilities   46,396           46,396   36,465  
Long-term debt   0           0   0  
Liabilities, Other than Long-term Debt, Noncurrent   18,037           18,037   15,443  
Intercompany Accounts, Net   (446,212)           (446,212)   (397,847)  
Redeemable noncontrolling interest   0           0   0  
Stockholders' Equity Attributable to Parent   519,980           519,980   500,330  
Stockholders' Equity Attributable to Noncontrolling Interest   0           0   0  
Total liabilities and equity   138,201           138,201   154,391  
Statement of Cash Flows [Abstract]                      
Net cash provided by (used for) operating activities               3,631 5,742    
Capital expenditures               (3,884) (6,207)    
Payments for (Proceeds from) Investments               0      
Proceeds from Insurance Settlement, Investing Activities               0      
Payment related to redeemable noncontrolling interest agreement                 0    
Payments for (Proceeds from) Other Investing Activities               (8) 181    
Net cash provided by (used for) investing activities               (3,892) (6,026)    
Proceeds from borrowings               (333) (287)    
Repayments of Other Debt               (61) 0    
Payments of Dividends, Common Stock               0 0    
Proceeds from (Payments for) Other Financing Activities               (12)      
Net cash provided by (used for) financing activities               260 287    
Effect of Exchange Rate on Cash and Cash Equivalents               0 0    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect               (1) 3    
Cash and cash equivalents   3     7     3 7 4 4
Assets held for sale   0           0   0  
Non-Guarantor Subsidiaries [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax   (17)           (215)      
Income Statement [Abstract]                      
Revenue from Contract with Customer, Excluding Assessed Tax   305,097     345,992     933,657 1,147,568    
Cost of sales   284,786     325,749     879,930 1,073,765    
Asset Impairment Cost   0           2,579      
Gross profit (loss)   20,311     20,243     51,148 73,803    
Selling, General and Administrative Expense   25,678     21,347     70,592 66,612    
Research and Development Expense   1,262     1,355     3,879 4,439    
Royalty expense   925     914     2,468 2,759    
Income (loss) from operations   (7,554)     (3,373)     (25,791) (7)    
Interest expense   (361)     (888)     (1,916) (2,445)    
Intercompany Interest Expense Income   (1,057)     (1,725)     (3,295) (4,889)    
Foreign Currency Transaction Gain (Loss), before Tax   (1,237)     (2,067)     (8,761) 2,443    
Other Nonoperating Income (Expense)   1,842     5,236     7,923 7,934    
Loss before income taxes   (8,367)     (2,817)     (31,840) 3,036    
Provision for income taxes   2,114     1,303     5,885 6,741    
Equity in Net Earnings (Loss) of Subsidiaries   3,315     (1,851)     17,384 (1,320)    
Net income (loss)   (7,166)     (5,971)     (20,341) (5,025)    
Net loss attributable to noncontrolling interests   (811)     (900)     (2,422) (2,124)    
Net income (loss) attributable to Titan   (6,355)     (5,071)     (17,919) (2,901)    
Comprehensive Income Statement [Abstract]                      
Net income (loss)   (7,166)     (5,971)     (20,341) (5,025)    
Currency translation adjustment   4,275     (20,324)     (28,498) (19,280)    
Pension liability adjustments, net of tax   (92)     (163)     (78) (662)    
Comprehensive income (loss)   (3,000)     (26,458)     (49,132) (24,967)    
Net comprehensive loss attributable to redeemable and noncontrolling interests   (1,912)     (1,213)     (4,814) (897)    
Comprehensive income (loss) attributable to Titan   (1,088)     (25,245)     (44,318) (24,070)    
Statement of Financial Position [Abstract]                      
Cash and cash equivalents   93,767     65,927     93,767 65,927 63,952 58,051
Accounts Receivable, after Allowance for Credit Loss, Current   192,764           192,764   185,236  
Inventory, Net   252,468           252,468   292,268  
Prepaid Expense and Other Assets, Current   34,597           34,597   38,300  
Total current assets   573,596           573,596   579,756  
Property, Plant and Equipment, Net   236,451           236,451   272,418  
Equity Method Investments   70,501           70,501   61,019  
Other Assets, Noncurrent   45,658           45,658   87,631  
Total assets   926,206           926,206   1,000,824  
Short-term debt   32,641           32,641   60,670  
Accounts payable   124,994           124,994   135,241  
Other current liabilities   80,415           80,415   68,400  
Total current liabilities   238,050           238,050   264,311  
Long-term debt   35,147           35,147   6,509  
Liabilities, Other than Long-term Debt, Noncurrent   54,826           54,826   62,761  
Intercompany Accounts, Net   478,534           478,534   355,049  
Redeemable noncontrolling interest   25,000           25,000   25,000  
Stockholders' Equity Attributable to Parent   95,277           95,277   283,057  
Stockholders' Equity Attributable to Noncontrolling Interest   (628)           (628)   4,137  
Total liabilities and equity   926,206           926,206   1,000,824  
Statement of Cash Flows [Abstract]                      
Net cash provided by (used for) operating activities               24,621 22,787    
Capital expenditures               (9,374) (20,026)    
Payments for (Proceeds from) Investments               (32,852)      
Proceeds from Insurance Settlement, Investing Activities               (4,936)      
Payment related to redeemable noncontrolling interest agreement                 0    
Payments for (Proceeds from) Other Investing Activities               743 1,173    
Net cash provided by (used for) investing activities               29,157 (18,853)    
Proceeds from borrowings               54,324 50,866    
Repayments of Other Debt               (71,192) (45,296)    
Payments of Dividends, Common Stock               0 0    
Proceeds from (Payments for) Other Financing Activities               (209)      
Net cash provided by (used for) financing activities               (17,077) 5,570    
Effect of Exchange Rate on Cash and Cash Equivalents               (6,886) (1,628)    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect               29,815 7,876    
Cash and cash equivalents   93,767     65,927     93,767 65,927 63,952 $ 58,051
Assets held for sale   0           0   0  
Consolidation, Eliminations [Member]                      
Condensed Financial Statements, Captions [Line Items]                      
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax   17           215      
Income Statement [Abstract]                      
Revenue from Contract with Customer, Excluding Assessed Tax   (120,175)     (141,220)     (408,062) (476,344)    
Cost of sales   (120,175)     (141,220)     (408,062) (476,344)    
Asset Impairment Cost   0           0      
Gross profit (loss)   0     0     0 0    
Selling, General and Administrative Expense   0     0     0 0    
Research and Development Expense   0     0     0 0    
Royalty expense   0     0     0 0    
Income (loss) from operations   0     0     0 0    
Interest expense   0     0     0 0    
Intercompany Interest Expense Income   0     0     0 0    
Foreign Currency Transaction Gain (Loss), before Tax   0     0     0 0    
Other Nonoperating Income (Expense)   0     0     0 0    
Loss before income taxes   0     0     0 0    
Provision for income taxes   0     0     0 0    
Equity in Net Earnings (Loss) of Subsidiaries   (392)     12,599     (7,211) 7,911    
Net income (loss)   (392)     12,599     (7,211) 7,911    
Net loss attributable to noncontrolling interests   0     0     0 0    
Net income (loss) attributable to Titan   (392)     12,599     (7,211) 7,911    
Comprehensive Income Statement [Abstract]                      
Net income (loss)   (392)     12,599     (7,211) 7,911    
Currency translation adjustment   (4,275)     20,324     28,498 19,280    
Pension liability adjustments, net of tax   (575)     (590)     (1,923) (1,594)    
Comprehensive income (loss)   (5,225)     32,333     19,579 25,597    
Net comprehensive loss attributable to redeemable and noncontrolling interests   0     0     0 0    
Comprehensive income (loss) attributable to Titan   (5,225)     $ 32,333     19,579 $ 25,597    
Statement of Financial Position [Abstract]                      
Cash and cash equivalents   0           0   0  
Accounts Receivable, after Allowance for Credit Loss, Current   0           0   0  
Inventory, Net   0           0   0  
Prepaid Expense and Other Assets, Current   0           0   0  
Total current assets   0           0   0  
Property, Plant and Equipment, Net   0           0   0  
Equity Method Investments   (656,225)           (656,225)   (824,355)  
Other Assets, Noncurrent   0           0   0  
Total assets   (656,225)           (656,225)   (824,355)  
Short-term debt   0           0   0  
Accounts payable   0           0   0  
Other current liabilities   0           0   0  
Total current liabilities   0           0   0  
Long-term debt   0           0   0  
Liabilities, Other than Long-term Debt, Noncurrent   0           0   0  
Intercompany Accounts, Net   0           0   0  
Redeemable noncontrolling interest   0           0   0  
Stockholders' Equity Attributable to Parent   (656,225)           (656,225)   (824,355)  
Stockholders' Equity Attributable to Noncontrolling Interest   0           0   0  
Total liabilities and equity   (656,225)           (656,225)   (824,355)  
Statement of Cash Flows [Abstract]                      
Cash and cash equivalents   0           0   0  
Assets held for sale   $ 0           $ 0   $ 0