2017 Q4 Form 10-K Financial Statement

#000114420418011800 Filed on February 28, 2018

View on sec.gov

Income Statement

Concept 2017 Q4 2017 2016 Q4
Revenue $543.4M $1.767B $462.1M
YoY Change 17.61% -4.24% -15.02%
Cost Of Revenue $1.506B
YoY Change -0.9%
Gross Profit $72.88M $260.9M $71.49M
YoY Change 1.95% -19.86% -18.6%
Gross Profit Margin 13.41% 14.76% 15.47%
Selling, General & Admin $103.4M
YoY Change 1.99%
% of Gross Profit 39.64%
Research & Development $3.900M
YoY Change -39.06%
% of Gross Profit 1.49%
Depreciation & Amortization $18.01M
YoY Change 7.02%
% of Gross Profit 6.9%
Operating Expenses $107.3M
YoY Change -0.45%
Operating Profit $130.8M
YoY Change -35.41%
Interest Expense $16.40M
YoY Change 4.71%
% of Operating Profit 12.54%
Other Income/Expense, Net -$8.278M
YoY Change -51.63%
Pretax Income $121.9M
YoY Change -34.12%
Income Tax $11.12M
% Of Pretax Income 9.12%
Net Earnings $49.36M $111.4M $23.00M
YoY Change 114.6% -6.71% -30.9%
Net Earnings / Revenue 9.08% 6.31% 4.98%
Basic Earnings Per Share $0.84 $1.88 $0.37
Diluted Earnings Per Share $0.80 $1.78 $0.36
COMMON SHARES
Basic Shares Outstanding 59.36M shares
Diluted Shares Outstanding 62.60M shares

Balance Sheet

Concept 2017 Q4 2017 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $191.5M
YoY Change 17.16%
Cash & Equivalents $191.5M $191.5M $163.5M
Short-Term Investments
Other Short-Term Assets $10.52M $46.48M $8.082M
YoY Change 30.1% 90.87%
Inventory $180.7M $180.7M $140.0M
Prepaid Expenses $24.40M
Receivables $146.8M $146.8M $153.6M
Other Receivables $10.82M
Total Short-Term Assets $576.4M $576.4M $481.4M
YoY Change 19.73% 19.73% -9.08%
LONG-TERM ASSETS
Property, Plant & Equipment $195.4M $195.4M $134.1M
YoY Change 45.64% 45.64% -4.49%
Goodwill $317.5M $148.4M
YoY Change 113.97% -0.9%
Intangibles $237.0M $94.41M
YoY Change 151.08% -17.63%
Long-Term Investments
YoY Change
Other Assets $25.27M $25.27M $20.08M
YoY Change 25.85% -37.49% 38.55%
Total Long-Term Assets $775.1M $775.1M $417.3M
YoY Change 85.73% 85.73% -0.67%
TOTAL ASSETS
Total Short-Term Assets $576.4M $576.4M $481.4M
Total Long-Term Assets $775.1M $775.1M $417.3M
Total Assets $1.352B $1.352B $898.7M
YoY Change 50.38% 50.38% -5.36%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $108.4M $108.4M $71.34M
YoY Change 52.02% 52.02%
Accrued Expenses $128.9M $93.63M $92.31M
YoY Change 39.64% 40.56%
Deferred Revenue
YoY Change
Short-Term Debt $0.00
YoY Change
Long-Term Debt Due $46.02M $46.31M $2.468M
YoY Change 1764.67% 1463.47% -93.44%
Total Short-Term Liabilities $283.7M $283.7M $166.6M
YoY Change 70.25% 70.25%
LONG-TERM LIABILITIES
Long-Term Debt $504.1M $505.1M $233.5M
YoY Change 115.92% 115.05%
Other Long-Term Liabilities $19.72M $19.72M $24.36M
YoY Change -19.01% -19.01%
Total Long-Term Liabilities $523.8M $524.8M $257.8M
YoY Change 103.17% 102.46%
TOTAL LIABILITIES
Total Short-Term Liabilities $283.7M $283.7M $166.6M
Total Long-Term Liabilities $523.8M $524.8M $257.8M
Total Liabilities $845.5M $845.5M $424.4M
YoY Change 99.19% 98.3%
SHAREHOLDERS EQUITY
Retained Earnings $98.73M $3.591M
YoY Change 2649.32%
Common Stock $737.0K $725.0K
YoY Change 1.66%
Preferred Stock
YoY Change
Treasury Stock (at cost) $244.5M $170.0M
YoY Change 43.83%
Treasury Stock Shares 16.21M shares 12.47M shares
Shareholders Equity $506.1M $506.1M $472.4M
YoY Change
Total Liabilities & Shareholders Equity $1.352B $1.352B $898.7M
YoY Change 50.38% 50.38% -5.36%

Cashflow Statement

Concept 2017 Q4 2017 2016 Q4
OPERATING ACTIVITIES
Net Income $49.36M $111.4M $23.00M
YoY Change 114.6% -6.71% -30.9%
Depreciation, Depletion And Amortization $18.01M
YoY Change 7.02%
Cash From Operating Activities $144.4M
YoY Change -19.23%
INVESTING ACTIVITIES
Capital Expenditures $26.06M
YoY Change 28.09%
Acquisitions $323.5M
YoY Change
Other Investing Activities -$6.443M
YoY Change 113.77%
Cash From Investing Activities -$332.2M
YoY Change 1819.46%
FINANCING ACTIVITIES
Cash Dividend Paid $15.32M
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $215.9M
YoY Change -222.11%
NET CHANGE
Cash From Operating Activities $144.4M
Cash From Investing Activities -$332.2M
Cash From Financing Activities $215.9M
Net Change In Cash $28.05M
YoY Change -282.33%
FREE CASH FLOW
Cash From Operating Activities $144.4M
Capital Expenditures $26.06M
Free Cash Flow $118.3M
YoY Change -25.3%

Facts In Submission

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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" align="center"></div> <table style="MARGIN-TOP: 0px; WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: left; WIDTH: 0.5in"> <div><b>1.</b></div> </td> <td style="TEXT-ALIGN: justify"> <div><b>DESCRIPTION OF THE BUSINESS</b></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size:10pt;" align="left"><b>&#160;</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Wabash National Corporation (the &#8220;Company,&#8221; &#8220;Wabash&#8221; or &#8220;Wabash National&#8221;) manufactures a diverse range of products including: dry freight and refrigerated trailers, platform trailers, bulk tank trailers, dry and refrigerated truck bodies, truck-mounted tanks, intermodal equipment, aircraft refueling equipment, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade and pharmaceutical equipment. Its innovative products are sold under the following brand names: Wabash National<sup style="font-style:normal">&#174;</sup>, Beall<sup style="font-style:normal">&#174;</sup>, Benson<sup style="font-style:normal">&#174;</sup>, Brenner<sup style="font-style:normal">&#174;</sup> Tank, Bulk Tank International, DuraPlate<sup style="font-style:normal">&#174;</sup>, Extract Technology<sup style="font-style:normal">&#174;</sup>, Garsite, Progress Tank, Supreme, Transcraft<sup style="font-style:normal">&#174;</sup>, Walker Engineered Products, and Walker Transport.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"></div> <table style="MARGIN-TOP: 0px; WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"><i>p.</i></div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both"><i>Concentration of Credit Risk</i></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash, cash equivalents and customer receivables. We place our cash and cash equivalents with high quality financial institutions. Generally, we do not require collateral or other security to support customer receivables<font style="FONT-FAMILY:Times New Roman, Times, Serif">.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
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2555000 USD
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104289000 USD
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1128000 shares
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1515000 shares
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1239000 shares
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69368000 shares
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666 shares
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CY2015Q1 us-gaap Net Income Loss
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10474000 USD
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CY2015Q3 us-gaap Net Income Loss
NetIncomeLoss
31880000 USD
CY2015Q4 us-gaap Net Income Loss
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33286000 USD
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0.34
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CY2017Q4 us-gaap Debt And Capital Lease Obligations
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CY2017Q4 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
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52900000 USD
CY2017 us-gaap Depreciation And Amortization
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CY2015 us-gaap Depreciation And Amortization
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37998000 USD
CY2016 us-gaap Depreciation And Amortization
DepreciationAndAmortization
36769000 USD
CY2015Q4 us-gaap Assets
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949670000 USD
CY2017 us-gaap Concentration Risk Additional Characteristic
ConcentrationRiskAdditionalCharacteristic
International sales accounted for less than 10% in each of the last three years.
CY2016 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
2 pure
CY2017Q4 us-gaap Purchase Obligation
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58700000 USD
CY2016Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
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1300000 USD
CY2017 us-gaap Labor And Related Expense
LaborAndRelatedExpense
7300000 USD
CY2016 us-gaap Labor And Related Expense
LaborAndRelatedExpense
7000000 USD
CY2015 us-gaap Labor And Related Expense
LaborAndRelatedExpense
7300000 USD
CY2017Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized
11600000 USD
CY2017 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
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P1Y9M18D
CY2017Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
4400000 USD
CY2015Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
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600000 USD
CY2015 us-gaap Income Tax Reconciliation Nondeductible Expense Other
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287000 USD
CY2017Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards
DeferredTaxAssetsTaxCreditCarryforwards
1710000 USD
CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
121897000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
185042000 USD
CY2015 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
163325000 USD
CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
641000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
375000 USD
CY2015 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
-14000 USD
CY2017 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
21316000 USD
CY2016 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
51489000 USD
CY2015 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
58090000 USD
CY2017 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
4327000 USD
CY2016 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
10307000 USD
CY2015 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
8627000 USD
CY2017 us-gaap Current Foreign Tax Expense Benefit
CurrentForeignTaxExpenseBenefit
155000 USD
CY2016 us-gaap Current Foreign Tax Expense Benefit
CurrentForeignTaxExpenseBenefit
144000 USD
CY2015 us-gaap Current Foreign Tax Expense Benefit
CurrentForeignTaxExpenseBenefit
54000 USD
CY2017 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
25798000 USD
CY2016 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
61940000 USD
CY2015 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
66771000 USD
CY2017 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
-16065000 USD
CY2016 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
3448000 USD
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DeferredFederalIncomeTaxExpenseBenefit
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CY2017 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
1459000 USD
CY2016 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
686000 USD
CY2015 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
288000 USD
CY2017 us-gaap Deferred Foreign Income Tax Expense Benefit
DeferredForeignIncomeTaxExpenseBenefit
-76000 USD
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DeferredForeignIncomeTaxExpenseBenefit
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DeferredForeignIncomeTaxExpenseBenefit
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CY2017 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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CY2016 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
64896000 USD
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IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
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5047000 USD
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7145000 USD
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IncomeTaxReconciliationStateAndLocalIncomeTaxes
6190000 USD
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IncomeTaxReconciliationDeductions
3450000 USD
CY2016 us-gaap Income Tax Reconciliation Deductions
IncomeTaxReconciliationDeductions
5065000 USD
CY2015 us-gaap Income Tax Reconciliation Deductions
IncomeTaxReconciliationDeductions
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IncomeTaxReconciliationOtherAdjustments
-11925000 USD
CY2016 us-gaap Income Tax Reconciliation Other Adjustments
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862000 USD
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CY2015 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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CY2017 us-gaap Income Tax Reconciliation Nondeductible Expense Other
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-1648000 USD
CY2016 us-gaap Income Tax Reconciliation Nondeductible Expense Other
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-1854000 USD
CY2016Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards
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260000 USD
CY2017Q4 wnc Deferred Tax Assets Accrued Liabilities
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6629000 USD
CY2016Q4 wnc Deferred Tax Assets Accrued Liabilities
DeferredTaxAssetsAccruedLiabilities
9852000 USD
CY2017Q4 wnc Deferred Tax Assets Incentive Compensation
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13867000 USD
CY2016Q4 wnc Deferred Tax Assets Incentive Compensation
DeferredTaxAssetsIncentiveCompensation
21206000 USD
CY2017Q4 us-gaap Deferred Tax Assets Other
DeferredTaxAssetsOther
2852000 USD
CY2016Q4 us-gaap Deferred Tax Assets Other
DeferredTaxAssetsOther
4084000 USD
CY2017Q4 us-gaap Deferred Tax Assets Gross
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25058000 USD
CY2016Q4 us-gaap Deferred Tax Assets Gross
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35402000 USD
CY2017Q4 us-gaap Deferred Tax Liabilities Property Plant And Equipment
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12813000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Property Plant And Equipment
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5823000 USD
CY2017Q4 us-gaap Deferred Tax Liabilities Goodwill And Intangible Assets Intangible Assets
DeferredTaxLiabilitiesGoodwillAndIntangibleAssetsIntangibleAssets
45960000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Goodwill And Intangible Assets Intangible Assets
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5299000 USD
CY2017Q4 us-gaap Deferred Tax Liabilities Other
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2003000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Other
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3264000 USD
CY2017Q4 us-gaap Deferred Income Tax Liabilities
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CY2016Q4 us-gaap Deferred Income Tax Liabilities
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14386000 USD
CY2017Q4 us-gaap Deferred Tax Assets Valuation Allowance
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1237000 USD
CY2016Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
1172000 USD
CY2017Q4 us-gaap Deferred Tax Assets Liabilities Net
DeferredTaxAssetsLiabilitiesNet
-36955000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
0 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
10130000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
10625000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
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495000 USD
CY2017 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
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19700000 USD
CY2016Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards State And Local
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1200000 USD
CY2017 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.35 pure
CY2017Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards Domestic
DeferredTaxAssetsOperatingLossCarryforwardsDomestic
53000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
300000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
2100000 USD
CY2017Q4 us-gaap Commitments And Contingencies
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USD
CY2016Q4 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
USD
CY2015 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
131795000 USD
CY2015 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-7644000 USD
CY2015 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-91411000 USD
CY2017 us-gaap Goodwill Period Increase Decrease
GoodwillPeriodIncreaseDecrease
3800000 USD
CY2017Q4 wnc Deferred Tax Assets Liabilities Gross
DeferredTaxAssetsLiabilitiesGross
-35718000 USD
CY2016Q4 wnc Deferred Tax Assets Liabilities Gross
DeferredTaxAssetsLiabilitiesGross
21016000 USD
CY2017Q4 wnc Liquidity Position To Meet Future Obligations Amount
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361200000 USD
CY2017 us-gaap Use Of Estimates
UseOfEstimates
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; font-size:10pt;" align="justify"></div> <table style="MARGIN-TOP: 0px; WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font></div> </td> <td style="TEXT-ALIGN: left; WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"><i>b.</i></div> </td> <td style="TEXT-ALIGN: justify"> <div style="CLEAR:both;CLEAR: both"><i>Use of Estimates</i></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that directly affect the amounts reported in its consolidated financial statements and accompanying notes. Actual results could differ from these estimates.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

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