Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Compass Diversified Holdings | |
Entity Central Index Key | 1,345,126 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 59,900,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 115,281 | $ 39,772 |
Accounts receivable, net | 172,885 | 181,191 |
Inventories | 208,326 | 212,984 |
Prepaid expenses and other current assets | 18,234 | 18,872 |
Total current assets | 514,726 | 452,819 |
Property, plant and equipment, net | 143,172 | 142,370 |
Investment in FOX (refer to Note F) | 0 | 141,767 |
Goodwill | 489,877 | 491,637 |
Intangible assets, net | 529,579 | 539,211 |
Other non-current assets | 9,153 | 9,351 |
Total assets | 1,686,507 | 1,777,155 |
Current liabilities: | ||
Accounts payable | 59,273 | 61,512 |
Accrued expenses | 88,292 | 91,041 |
Due to related party | 542 | 20,848 |
Current portion, long-term debt | 5,685 | 5,685 |
Other current liabilities | 13,013 | 23,435 |
Total current liabilities | 166,805 | 202,521 |
Deferred income taxes | 103,232 | 110,838 |
Long-term debt | 545,536 | 551,652 |
Other non-current liabilities | 16,500 | 17,600 |
Total liabilities | 832,073 | 882,611 |
Stockholders’ equity | ||
Trust common shares, no par value, 500,000 authorized; 59,900 shares issued and outstanding at March 31, 2017 and December 31, 2016 | 924,680 | 924,680 |
Accumulated other comprehensive loss | (8,428) | (9,515) |
Accumulated deficit | (101,929) | (58,760) |
Total stockholders’ equity attributable to Holdings | 814,323 | 856,405 |
Noncontrolling interest | 40,111 | 38,139 |
Total stockholders’ equity | 854,434 | 894,544 |
Total liabilities and stockholders’ equity | $ 1,686,507 | $ 1,777,155 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Trust shares, par value (usd per share) | ||
Trust shares, authorized (shares) | 500,000,000 | 500,000,000 |
Trust shares, issued (shares) | 59,900,000 | 59,900,000 |
Trust shares, outstanding (shares) | 59,900,000 | 59,900,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 242,716 | $ 155,001 |
Service revenues | 47,276 | 38,286 |
Total net revenues | 289,992 | 193,287 |
Cost of sales | 160,318 | 99,617 |
Cost of service revenues | 35,341 | 29,551 |
Gross profit | 94,333 | 64,119 |
Operating expenses: | ||
Selling, general and administrative expense | 78,723 | 42,287 |
Management fees | 7,848 | 6,371 |
Amortization expense | 10,310 | 7,380 |
Impairment expense | 8,864 | 0 |
Operating income (loss) | (11,412) | 8,081 |
Other income (expense): | ||
Interest expense, net | (7,136) | (11,462) |
Amortization of debt issuance costs | (933) | (570) |
Loss on investment in FOX | (5,620) | (10,623) |
Other income (expense), net | (22) | 3,256 |
Loss from continuing operations before income taxes | (25,123) | (11,318) |
(Benefit) provision for income taxes | (3,648) | 3,296 |
Loss from continuing operations | (21,475) | (14,614) |
Loss from discontinued operations, net of income tax | 0 | (413) |
Gain on sale of discontinued operations, net of income tax | 340 | 0 |
Net loss | (21,135) | (15,027) |
Less: Net income attributable to noncontrolling interest | 470 | 1,137 |
Less: Net loss from discontinued operations attributable to noncontrolling interest | 0 | (141) |
Net loss attributable to Holdings | (21,605) | (16,023) |
Amounts attributable to Holdings | ||
Loss from continuing operations | (21,945) | (15,751) |
Loss from discontinued operations, net of income tax | 0 | (272) |
Gain on sale of discontinued operations, net of income tax | $ 340 | $ 0 |
Basic and fully diluted income (loss) per share attributable to Holdings (refer to Note L) | ||
Basic and fully diluted income (loss) per share attributable to Holdings, continuing operations (usd per share) | $ 0 | $ 0 |
Basic and fully diluted income (loss) per share attributable to Holdings, discontinued operations (usd per share) | 0 | 0 |
Basic and fully diluted income (loss) per share attributable to Holdings, total (usd per share) | $ 0 | $ 0 |
Weighted average number of shares of trust stock outstanding – basic and fully diluted (in shares) | 59,900 | 54,300 |
Cash distributions declared per share (refer to Note J) (usd per share) | $ 0.36 | $ 0.36 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (21,135) | $ (15,027) |
Other comprehensive income (loss) | ||
Foreign currency translation adjustments | 1,031 | 5,220 |
Pension benefit liability, net | 56 | (523) |
Other comprehensive income (loss) | 1,087 | 4,697 |
Total comprehensive loss, net of tax | (20,048) | (10,330) |
Less: Net income attributable to noncontrolling interests | 470 | 996 |
Less: Other comprehensive income attributable to noncontrolling interests | 185 | 1,226 |
Total comprehensive loss attributable to Holdings, net of tax | $ (20,703) | $ (12,552) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity - 3 months ended Mar. 31, 2017 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Stockholders' Equity Attributable to Holdings | Non- Controlling Interest | Liberty | LibertyNon- Controlling Interest |
Beginning balance at Dec. 31, 2016 | $ 894,544 | $ 924,680 | $ (58,760) | $ (9,515) | $ 856,405 | $ 38,139 | ||
Beginning balance (shares) at Dec. 31, 2016 | 59,900 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (21,135) | (21,605) | (21,605) | 470 | ||||
Total comprehensive income, net | 1,087 | 1,087 | 1,087 | |||||
Option activity attributable to noncontrolling shareholders | 1,452 | 1,452 | ||||||
Effect of issuance of subsidiary stock | $ 50 | $ 50 | ||||||
Distributions paid | (21,564) | (21,564) | (21,564) | |||||
Ending balance at Mar. 31, 2017 | $ 854,434 | $ 924,680 | $ (101,929) | $ (8,428) | $ 814,323 | $ 40,111 | ||
Ending balance (shares) at Mar. 31, 2017 | 59,900 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Jan. 01, 2016 | |||||
Cash flows from operating activities: | ||||||||
Net loss | $ (21,135) | $ (15,027) | ||||||
Loss from discontinued operations | 0 | (413) | ||||||
Gain on sale of discontinued operations, net | 340 | 0 | ||||||
Net loss from continuing operations | (21,475) | (14,614) | ||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
Depreciation expense | 8,046 | 5,668 | ||||||
Amortization expense | 23,349 | 8,620 | ||||||
Impairment expense | 8,864 | 0 | ||||||
Amortization of debt issuance costs and original issue discount | 1,199 | 738 | ||||||
Unrealized (gain) loss on interest rate swap | (229) | 7,228 | ||||||
Noncontrolling stockholder stock based compensation | 1,452 | 1,188 | ||||||
Loss on investment in FOX | 5,620 | 10,623 | ||||||
Provision for loss on receivables | 3,318 | 130 | ||||||
Deferred taxes | (7,634) | (74) | ||||||
Other | 318 | (266) | ||||||
Changes in operating assets and liabilities, net of acquisition: | ||||||||
Decrease in accounts receivable | 5,710 | 4,037 | ||||||
Increase in inventories | (8,076) | (1,473) | ||||||
Increase in prepaid expenses and other current assets | (967) | (299) | ||||||
Decrease in accounts payable and accrued expenses | (20,909) | (15,996) | ||||||
Net cash (used in) provided by operating activities - continuing operations | (1,414) | 5,510 | ||||||
Net cash provided by operating activities - discontinued operations | 0 | 515 | ||||||
Cash (used in) provided by operating activities | (1,414) | 6,025 | ||||||
Cash flows from investing activities: | ||||||||
Acquisitions, net of cash acquired | (6,721) | (35,553) | ||||||
Purchases of property and equipment | (8,693) | (4,195) | ||||||
Net proceeds from sale of equity investment | 136,147 | 47,685 | ||||||
Payment of interest rate swap | (1,089) | (500) | ||||||
Purchase of noncontrolling interest | 0 | (1,475) | ||||||
Proceeds from sale of business | 340 | 182 | ||||||
Other investing activities | 31 | (86) | ||||||
Net cash provided by investing activities - continuing operations | 120,015 | 6,058 | ||||||
Net cash used in investing activities - discontinued operations | 0 | (211) | ||||||
Cash provided by investing activities | 120,015 | 5,847 | ||||||
Cash flows from financing activities: | ||||||||
Borrowings under credit facility | 51,500 | 0 | ||||||
Repayments under credit facility | (57,321) | (813) | ||||||
Distributions paid | (21,564) | (19,548) | ||||||
Net proceeds provided by noncontrolling shareholders | 40 | 3,755 | ||||||
Distributions paid to noncontrolling shareholders | 0 | (5,253) | ||||||
Distributions paid to allocation interest holders (refer to Note L) | (13,354) | 0 | ||||||
Debt issuance costs | (1,414) | 0 | ||||||
Other | (783) | (282) | ||||||
Net cash used in financing activities | (42,896) | (22,141) | ||||||
Foreign currency impact on cash | (196) | (3,033) | ||||||
Net increase (decrease) in cash and cash equivalents | 75,509 | (13,302) | ||||||
Cash and cash equivalents — beginning of period | [1] | 39,772 | 85,869 | $ 85,869 | ||||
Cash and cash equivalents — end of period | $ 115,281 | [2] | $ 72,567 | [2] | $ 39,772 | [1] | ||
Cash from discontinued operations | $ 600 | |||||||
[1] | Includes cash from discontinued operations of $0.6 million at January 1, 2016 | |||||||
[2] | Tridien had no cash balance as of March 31, 2016. |
Organization and Business Opera
Organization and Business Operations | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Operations | Organization and Business Operations Compass Diversified Holdings, a Delaware statutory trust (the "Trust" or "Holdings"), was incorporated in Delaware on November 18, 2005. Compass Group Diversified Holdings, LLC, a Delaware limited liability company (the "Company" or "CODI"), was also formed on November 18, 2005 with equity interests which were subsequently reclassified as the "Allocation Interests". The Trust and the Company were formed to acquire and manage a group of small and middle-market businesses headquartered in North America. In accordance with the amended and restated Trust Agreement, dated as of April 25, 2006 (the "Trust Agreement"), the Trust is sole owner of 100% of the Trust Interests (as defined in the Company’s amended and restated operating agreement, dated as of April 25, 2006 (as amended and restated, the "LLC Agreement")) of the Company and, pursuant to the LLC Agreement, the Company has, outstanding, the identical number of Trust Interests as the number of outstanding common shares of the Trust. The Company is the operating entity with a board of directors and other corporate governance responsibilities, similar to that of a Delaware corporation. The Company is a controlling owner of eight businesses, or reportable operating segments, at March 31, 2017 . The segments are as follows: 5.11 Acquisition Corp. ("5.11" or "5.11 Tactical"), The Ergo Baby Carrier, Inc. ("Ergobaby"), Liberty Safe and Security Products, Inc. ("Liberty Safe" or "Liberty"), Fresh Hemp Foods Ltd. ("Manitoba Harvest"), Compass AC Holdings, Inc. ("ACI" or "Advanced Circuits"), AMT Acquisition Corporation ("Arnold" or "Arnold Magnetics"), Clean Earth Holdings, Inc. ("Clean Earth"), and Sterno Products, LLC ("Sterno" or "Sterno Products"). Refer to Note E - "Operating Segment Data" for further discussion of the operating segments. Compass Group Management LLC, a Delaware limited liability company ("CGM" or the "Manager"), manages the day to day operations of the Company and oversees the management and operations of our businesses pursuant to a management services agreement ("MSA"). |
Presentation and Principles of
Presentation and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Presentation and Principles of Consolidation | Presentation and Principles of Consolidation The condensed consolidated financial statements for the three month periods ended March 31, 2017 and March 31, 2016 , are unaudited, and in the opinion of management, contain all adjustments necessary for a fair presentation of the condensed consolidated financial statements. Such adjustments consist solely of normal recurring items. Interim results are not necessarily indicative of results for a full year or any subsequent interim period. The condensed consolidated financial statements and notes are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and presented as permitted by Form 10-Q and do not contain certain information included in the annual consolidated financial statements and accompanying notes of the Company. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Seasonality Earnings of certain of the Company’s operating segments are seasonal in nature. Earnings from Liberty are typically lowest in the second quarter due to lower demand for safes at the onset of summer. Earnings from Clean Earth are typically lower in the winter months due to reduced levels of construction and development activity in the Northeastern United States. Sterno Products typically has higher sales in the second and fourth quarter of each year, reflecting the outdoor summer season and the holiday season. Consolidation The condensed consolidated financial statements include the accounts of Holdings and all majority owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Discontinued Operations During the third quarter of 2016, the Company completed the sale of Tridien Medical, Inc. ("Tridien"). The results of operations of Tridien are reported as discontinued operations in the condensed consolidated statements of operations for the three months ended March 31, 2016. Refer to Note D - "Discontinued Operations" for additional information. Unless otherwise indicated, the disclosures accompanying the condensed consolidated financial statements reflect the Company's continuing operations. Recently Adopted Accounting Pronouncements In January 2017, the FASB issued new accounting guidance to simplify the accounting for goodwill impairment. The guidance removes step two of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the new guidance, a goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains largely unchanged. Entities will continue to have the option to perform a qualitative test to determine if a quantitative test is necessary. The guidance is effective for fiscal years and interim periods within those year, after December 31, 2019, with early adoption permitted for any goodwill impairment tests performed after January 1, 2017 and will be applied prospectively. The Company adopted this guidance early, effective January 1, 2017, on a prospective basis, and will apply the guidance as necessary to annual and interim goodwill testing performed subsequent to January 1, 2017. Recently Issued Accounting Pronouncements In March 2017, the FASB issued new guidance that will require employers that sponsor defined benefit plans to present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period, and requires the other components of net periodic pension cost to be presented in the income statement separately from the service component cost and outside a subtotal of income from operations. The new guidance shall be applied retrospectively for the presentation of of the service cost component and the other components of net periodic pension cost. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company's Arnold business segment has a defined benefit plan covering substantially all of Arnold's employees at its Switzerland location. The adoption of this guidance is not expected to have a material impact upon our financial condition or results of operations. In January 2017, the FASB issued new guidance that changes the definition of a business to assist entities in evaluating when a set of transferred assets and activities constitutes a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If so, the set of transferred asset and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in the new revenue recognition guidance. The new standard will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The adoption of this guidance is not expected to have a material impact upon our financial condition or results of operations. In August 2016, the FASB issued an accounting standard update which updates the guidance as to how certain cash receipts and cash payments should be presented and classified within the statement of cash flows. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted, including adoption in an interim period. In February 2016, the FASB issued an accounting standard update related to the accounting for leases which will require an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. The standard update offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, the new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires modified retrospective adoption, with early adoption permitted. Accordingly, this standard is effective for the Company on January 1, 2019. The Company is currently assessing the impact of the new standard on our consolidated financial statements. In May 2014, the FASB issued a comprehensive new revenue recognition standard. The new standard outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard is designed to create greater comparability for financial statement users across industries, jurisdictions and capital markets and also requires enhanced disclosures. The new standard will be effective for the Company beginning January 1, 2018. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company currently anticipates adopting the standard using the cumulative catch-up transition method. The Company has commenced its initial assessment to evaluate the impact, if any, the new revenue standard will have on the Company’s consolidated financial statements. During this initial assessment, the Company has identified certain differences that will likely have the most impact; however, the significance of any impact cannot be determined during this phase of the Company’s implementation process. These differences relate to the new concepts of variable consideration, consideration payable and the focus on control to determine when and how revenue should be recognized (i.e. point in time versus over time). The Company expects to complete its initial assessment by the end of the third quarter of 2017 and finalize its implementation process prior to the adoption of the new revenue standard on January 1, 2018. The Company will also continue to monitor for any additional implementation or other guidance that may be issued in 2017 with respect to the new revenue standard and adjust its assessment and implementation plans accordingly. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acquisition of 5.11 Tactical On August 31, 2016, 5.11 ABR Merger Corp. ("Merger Sub"), a wholly owned subsidiary of 5.11 ABR Corp. ("Parent"), which in turn is a wholly owned subsidiary of the Company, merged with and into 5.11 Tactical, with 5.11 Tactical as the surviving entity, pursuant to an agreement and plan of merger among Merger Sub, Parent, 5.11 Tactical, and TA Associates Management L.P. entered into on July 29, 2016. 5.11 Tactical is a is a leading provider of purpose-built tactical apparel and gear for law enforcement, firefighters, EMS, and military special operations as well as outdoor and adventure enthusiasts. 5.11 is a brand known for innovation and authenticity, and works directly with end users to create purpose-built apparel and gear designed to enhance the safety, accuracy, speed and performance of tactical professionals and enthusiasts worldwide. Headquartered in Irvine, California, 5.11 operates sales offices and distribution centers globally, and 5.11 products are widely distributed in uniform stores, military exchanges, outdoor retail stores, its own retail stores and on 511tactical.com. The Company made loans to, and purchased a 97.5% controlling interest in 5.11 ABR Corp.. The purchase price, including proceeds from noncontrolling interest and net of transaction costs, was approximately $408.2 million . The Company funded its portion of the acquisition through an amendment to the 2014 Credit Facility that allowed for an increase in the 2014 Revolving Credit Facility and the 2016 Incremental Term Loan (refer to Note I - "Debt" ). 5.11 management invested in the transaction along with the Company, representing approximately 2.5% initial noncontrolling interest on a primary and fully diluted basis. The fair value of the noncontrolling interest was determined based on the enterprise value of the acquired entity multiplied by the ratio of the number of shares acquired by the minority holders to total shares. The transaction was accounted for as a business combination. CGM acted as an advisor to the Company in the acquisition and will continue to provide integration services during the first year of the Company's ownership of 5.11. CGM will receive integration service fees of $3.5 million payable quarterly over a twelve month period as services are rendered beginning in the quarter ended December 31, 2016. The results of operations of 5.11 have been included in the consolidated results of operations since the date of acquisition. 5.11's results of operations are reported as a separate operating segment. The table below provides the recording of assets acquired and liabilities assumed as of the acquisition date. 5.11 Tactical (in thousands) Amounts recognized as of the acquisition date Assets: Cash $ 12,581 Accounts receivable (1) 38,323 Inventory (2) 160,304 Property, plant and equipment (3) 22,723 Intangible assets 127,890 Goodwill 92,966 Other current and noncurrent assets 4,884 Total assets 459,671 Liabilities and noncontrolling interest: Current liabilities $ 38,229 Other liabilities 180,231 Deferred tax liabilities 10,163 Noncontrolling interest 5,568 Total liabilities and noncontrolling interest 234,191 Net assets acquired 225,480 Noncontrolling interest 5,568 Intercompany loans to business 179,237 $ 410,285 Acquisition Consideration Purchase price $ 400,000 Working capital adjustment (2,296 ) Cash 12,581 Total purchase consideration $ 410,285 Less: Transaction costs 2,063 Purchase price, net $ 408,222 (1) Includes $40.1 million of gross contractual accounts receivable of which $1.7 million was not expected to be collected. The fair value of accounts receivable approximated book value acquired. (2) Includes $39.1 million in inventory basis step-up, which will be charged to cost of goods sold over the inventory turns of the acquired entity. (3) Includes $7.6 million of property, plant and equipment basis step-up. The Company incurred $2.1 million of transaction costs in conjunction with the 5.11 acquisition, which was included in selling, general and administrative expense in the consolidated statements of income during the year of acquisition. The allocation of the purchase price presented above is based upon management's estimate of the fair values using valuation techniques including income, cost and market approaches. In estimating the fair value of the acquired assets and assumed liabilities, the fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates and estimated discount rates. Current and noncurrent assets and current and other liabilities are estimated at their historical carrying values. Property, plant and equipment is valued through a purchase price appraisal and will be depreciated on a straight-line basis over the respective remaining useful lives. Goodwill is calculated as the excess of the consideration transferred over the fair value of the identifiable net assets and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and non-contractual relationships, as well as expected future synergies. The goodwill of $93.0 million reflects the strategic fit of 5.11 in the Company's branded products business and is not expected to be deductible for income tax purposes. The purchase accounting for 5.11 was finalized during the fourth quarter of 2016, with the changes from the provisional purchase price allocation related to the settlement of working capital and the recording of a change in the deferred taxes related to a reduction of net operating loss carryforwards. The intangible assets recorded related to the 5.11 acquisition are as follows ( in thousands ): Intangible assets Amount Estimated Useful Life Trade name $ 48,665 15 years Customer relationships 75,218 15 years Technology 4,007 10 years $ 127,890 The customer relationships intangible asset was valued at $75.2 million using an excess earnings methodology, in which an asset is valuable to the extent it enables its owners to earn a return in excess of the required returns on and of the other assets utilized in the business. Customer relationships intangible asset was derived using a risk-adjusted discount rate. The tradename intangible asset and the design patent technology asset were valued using a royalty savings methodology, in which an asset is valuable to the extent that the ownership of the asset relieves the company from the obligation of paying royalties for the benefits generated by the asset. Unaudited pro forma information The following unaudited pro forma data for the three months ended March 31, 2016 gives effect to the acquisition of 5.11 Tactical, as described above, as if the acquisition had been completed as of January 1, 2016, and the sale of Tridien as if the disposition had been completed on January 1, 2016. The pro forma data gives effect to historical operating results with adjustments to interest expense, amortization and depreciation expense, management fees and related tax effects. The information is provided for illustrative purposes only and is not necessarily indicative of the operating results that would have occurred if the transaction had been consummated on the date indicated, nor is it necessarily indicative of future operating results of the consolidated companies, and should not be construed as representing results for any future period. Three months ended (in thousands) March 31, 2016 Net sales $ 261,265 Gross profit 94,216 Operating income 6,769 Net loss (19,236 ) Net loss attributable to Holdings (20,343 ) Basic and fully diluted net loss per share attributable to Holdings $ (0.39 ) Other acquisitions Ergobaby On May 11, 2016, the Company's Ergobaby subsidiary acquired all of the outstanding membership interests in New Baby Tula LLC ("Baby Tula"), a maker of premium baby carriers, toddler carriers, slings, blankets and wraps. The purchase price was $73.8 million , net of transaction costs, plus a potential earn-out of $8.2 million based on 2017 financial performance. Ergobaby paid $0.8 million in transaction costs in connection with the acquisition. Ergobaby funded the acquisition and payment of related transaction costs through the issuance of an additional $68.2 million in intercompany loans with the Company, and the issuance of $8.2 million in Ergobaby shares to the selling shareholders. Ergobaby recorded a purchase price allocation of $ 13.2 million in goodwill, which is expected to be deductible for income tax purposes, $55.3 million in intangible assets comprised of $52.9 million in finite lived tradenames, $1.7 million in non-compete agreements; and $0.7 million in customer relationships, and $4.8 million in inventory step-up. In addition, the earn-out provision of the purchase price was allocated a fair value of $3.8 million . The remainder of the purchase consideration was allocated to net assets acquired. The Company finalized the purchase price for the Baby Tula acquisition during the fourth quarter of 2016. Clean Earth On June 1, 2016, the Company's Clean Earth subsidiary acquired certain of the assets and liabilities of EWS Alabama, Inc. ("EWS"). Clean Earth funded the acquisition and the related transaction costs through the issuance of additional intercompany debt with the Company. Based in Glencoe, Alabama, EWS provides a range of hazardous and non-hazardous waste management services from a fully permitted hazardous waste RCRA Part B facility. In connection with the acquisition, Clean Earth recorded a purchase price allocation of $ 3.6 million in goodwill and $12.1 million in intangible assets. On April 15, 2016, Clean Earth acquired certain assets of Phoenix Soil, LLC ("Phoenix Soil") and WIC, LLC (together with Phoenix Soil, the "Sellers"). Phoenix Soil is based in Plainville, Connecticut and provides environmental services for nonhazardous contaminated soil materials with a primary focus on soil. Phoenix Soil recently completed its transition to a new 58,000 square foot thermal desorption facility owned by WIC, LLC. The acquisition increases Clean Earth's soil treatment capabilities and expand its geographic footprint into New England. Clean Earth financed the acquisition and payment of related transaction costs through the issuance of additional intercompany loans with the Company. In connection with the acquisition, Clean Earth recorded a purchase price allocation of $3.2 million in goodwill and $5.6 million in intangible assets. Sterno Products On January 22, 2016, Sterno Products, a wholly owned subsidiary of the Company, acquired all of the outstanding stock of Northern International, Inc. (NII), for a total purchase price of approximately $35.8 million (C $50.6 million ), plus a potential earn-out opportunity payable over the next two years up to a maximum amount of $1.8 million (C $2.5 million ), and is subject to working capital adjustments. The contingent consideration was fair valued at $1.5 million , based on probability weighted models of the achievement of certain performance based financial targets. Headquartered in Coquitlam, British Columbia, Canada, NII sells flameless candles and outdoor lighting products through the retail segment. Sterno Products financed the acquisition and payment of the related transaction costs through the issuance of an additional $37.0 million in intercompany loans with the Company. In connection with the acquisition, Sterno recorded a purchase price allocation of $6.0 million of goodwill, which is not expected to be deductible for income tax purposes, $12.7 million in intangible assets and $1.2 million in inventory step-up. In addition, the earn-out provision of the purchase price was allocated a fair value of $1.5 million . The remainder of the purchase consideration was allocated to net assets acquired. Sterno Products incurred $0.4 million in acquisition related costs in connection with the NII acquisition. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued operations Sale of Tridien On September 21, 2016, the Company sold its majority owned subsidiary, Tridien, based on an enterprise value of $25 million . After the allocation of the sale proceeds to non-controlling equity holders and the payment of transaction expenses, the Company received approximately $22.7 million in net proceeds at closing related to its debt and equity interests in Tridien. The Company recognized a gain of $1.7 million for the year ended December 31, 2016 as a result of the sale of Tridien. Approximately $1.6 million of the proceeds received by the Company from the sale of Tridien have been reserved to support the Company’s indemnification obligations for future claims against Tridien that the Company may be liable for under the terms of the Tridien sale agreement. Operating results of discontinued operations Summarized operating results of discontinued operations for the three months ended March 31, 2016 are as follows: Three months ended March 31, 2016 (in thousands) Tridien Net sales $ 14,760 Gross profit 2,142 Operating loss (577 ) Income from continuing operations before income taxes 413 Provision for income taxes — Income from discontinued operations (1) $ 413 (1) The results for the three months ended March 31, 2016 exclude $0.3 million of intercompany interest expense. Gain on sale of businesses During the first quarter of 2017, the Company settled the remaining outstanding escrow items related to the sale of American Furniture Manufacturing, Inc. in 2015, and received a settlement related to the Camelbak Products, LLC business, which was also sold in 2015. As a result of these transactions, the Company recognized a gain on sale of discontinued operations of $0.3 million for the three months ended March 31, 2017. |
Operating Segment Data
Operating Segment Data | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segment Data | Operating Segment Data At March 31, 2017 , the Company had eight reportable operating segments. Each operating segment represents a platform acquisition. The Company’s operating segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. A description of each of the reportable segments and the types of products and services from which each segment derives its revenues is as follows: • 5.11 Tactical is a leading provider of purpose-built tactical apparel and gear for law enforcement, firefighters, EMS, and military special operations as well as outdoor and adventure enthusiasts. 5.11 is a brand known for innovation and authenticity, and works directly with end users to create purpose-built apparel and gear designed to enhance the safety, accuracy, speed and performance of tactical professionals and enthusiasts worldwide. Headquartered in Irvine, California, 5.11 operates sales offices and distribution centers globally, and 5.11 products are widely distributed in uniform stores, military exchanges, outdoor retail stores, its own retail stores and on 511tactical.com. • Ergobaby, headquartered in Los Angeles, California, is a designer, marketer and distributor of wearable baby carriers and accessories, blankets and swaddlers, nursing pillows, and related products. Ergobaby primarily sells its Ergobaby and Baby Tula branded products through brick-and-mortar retailers, national chain stores, online retailers, its own websites and distributors and derives approximately 57% of its sales from outside of the United States. • Liberty Safe is a designer, manufacturer and marketer of premium home, gun and office safes in North America. From it’s over 300,000 square foot manufacturing facility, Liberty produces a wide range of home and gun safe models in a broad assortment of sizes, features and styles. Liberty is headquartered in Payson, Utah. • Manitoba Harvest is a pioneer and leader in the manufacture and distribution of branded, hemp-based foods and hemp based ingredients. Manitoba Harvest’s products, which include Hemp Hearts™, Hemp Heart Bites™, Hemp Heart Bars™, and Hemp protein powders, are currently carried in over 13,000 retail stores across the U.S. and Canada. Manitoba Harvest is headquartered in Winnipeg, Manitoba. • Advanced Circuits, an electronic components manufacturing company, is a provider of small-run, quick-turn and volume production rigid printed circuit boards. ACI manufactures and delivers custom printed circuit boards to customers primarily in North America. ACI is headquartered in Aurora, Colorado. • Arnold Magnetics is a global manufacturer of engineered magnetic solutions for a wide range of specialty applications and end-markets, including aerospace and defense, motorsport/automotive, oil and gas, medical, general industrial, electric utility, reprographics and advertising specialty markets. Arnold Magnetics produces high performance permanent magnets (PMAG), flexible magnets (FlexMag) and precision foil products (Precision Thin Metals) that are mission critical in motors, generators, sensors and other systems and components. Based on its long-term relationships, Arnold has built a diverse and blue-chip customer base totaling more than 2,000 clients worldwide. Arnold Magnetics is headquartered in Rochester, New York. • Clean Earth provides environmental services for a variety of contaminated materials including soils, dredged material, hazardous waste and drill cuttings. Clean Earth analyzes, treats, documents and recycles waste streams generated in multiple end-markets such as power, construction, oil and gas, infrastructure, industrial and dredging. Clean Earth is headquartered in Hatboro, Pennsylvania and operates 18 facilities in the eastern United States. • Sterno Products is a manufacturer and marketer of portable food warming fuel and creative table lighting solutions for the food service industry and flameless candles and outdoor lighting products for consumers. Sterno's products include wick and gel chafing fuels, butane stoves and accessories, liquid and traditional wax candles, catering equipment and outdoor lighting products. Sterno Products is headquartered in Corona, California. The tabular information that follows shows data for each of the operating segments reconciled to amounts reflected in the consolidated financial statements. The results of operations of each of the operating segments are included in consolidated operating results as of their date of acquisition. There were no significant inter-segment transactions. A disaggregation of the Company’s consolidated revenue and other financial data for the three months ended March 31, 2017 and 2016 is presented below (in thousands) : Net sales of operating segments Three months ended 2017 2016 5.11 Tactical $ 78,513 $ — Ergobaby 22,613 19,415 Liberty 27,978 29,000 Manitoba Harvest 13,128 13,717 ACI 21,460 21,517 Arnold Magnetics 26,496 27,383 Clean Earth 47,276 38,286 Sterno Products 52,528 43,969 Total 289,992 193,287 Reconciliation of segment revenues to consolidated revenues: Corporate and other — — Total consolidated revenues $ 289,992 $ 193,287 Profit (loss) of operating segments (1) Three months ended 2017 2016 5.11 Tactical $ (9,485 ) $ — Ergobaby 5,200 4,090 Liberty 2,480 4,841 Manitoba Harvest 223 363 ACI 5,640 5,832 Arnold Magnetics (8,397 ) 626 Clean Earth (446 ) (958 ) Sterno Products 3,652 2,412 Total (1,133 ) 17,206 Reconciliation of segment profit to consolidated income (loss) before income taxes: Interest expense, net (7,136 ) (11,462 ) Other income (expense), net (22 ) 3,256 Loss on equity method investment (5,620 ) (10,623 ) Corporate and other (2) (11,212 ) (9,695 ) Total consolidated loss before income taxes $ (25,123 ) $ (11,318 ) (1) Segment profit (loss) represents operating income (loss). (2) Primarily relates to management fees expensed and payable to CGM, and corporate overhead expenses. Accounts Receivable Identifiable Assets Depreciation and Amortization Expense March 31, December 31, March 31, December 31, Three months ended 2017 2016 2017 (1) 2016 (1) 2017 2016 5.11 Tactical $ 46,707 $ 49,653 $ 294,159 $ 311,560 $ 17,532 $ — Ergobaby 9,359 11,018 113,559 113,814 653 835 Liberty 14,941 13,077 26,399 26,344 599 656 Manitoba Harvest 5,568 6,468 96,164 97,977 1,510 1,314 ACI 6,598 6,686 16,404 16,541 873 841 Arnold Magnetics 15,145 15,195 65,490 64,209 2,045 2,237 Clean Earth 46,142 45,619 189,979 193,250 5,227 4,955 Sterno Products 36,547 38,986 135,514 134,661 2,956 3,451 Allowance for doubtful accounts (8,122 ) (5,511 ) — — — — Total 172,885 181,191 937,668 958,356 31,395 14,289 Reconciliation of segment to consolidated total: Corporate and other identifiable assets (2) — — 86,077 145,971 — — Amortization of debt issuance costs and original issue discount — — — — 1,199 738 Total $ 172,885 $ 181,191 $ 1,023,745 $ 1,104,327 $ 32,594 $ 15,027 (1) Does not include accounts receivable balances per schedule above or goodwill balances - refer to Note H - "Goodwill and Other Intangible Assets" . (2) Corporate and other identifiable assets for the year ended December 31, 2016 includes the Company's investment in FOX, which was sold during the first quarter of 2017 - refer to Note F - "Investment in FOX" . Geographic Information International Revenues Three months ended 2017 2016 5.11 Tactical $ 25,266 $ — Ergobaby 12,814 10,377 Manitoba Harvest 5,895 6,130 Arnold Magnetics 11,055 10,799 Sterno Products 634 5,192 $ 55,664 $ 32,498 |
Investment in Fox
Investment in Fox | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Investment in Fox | Investment in FOX FOX, a former majority owned subsidiary of the Company that is publicly traded on the NASDAQ Stock Market under the ticker "FOXF," is a designer, manufacturer and marketer of high-performance ride dynamic products used primarily for bicycles, side-by-side vehicles, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles. The Company held a 41% , ownership interest in FOX as of January 1, 2016, and a 14% ownership interest as of January 1, 2017. The investment in FOX was accounted for using the fair value option. In March 2016, FOX closed on a secondary public offering (the March 2016 Offering") of 2,500,000 FOX common shares held by the Company. Concurrently with the closing of the March 2016 Offering, FOX repurchased 500,000 shares of FOX common shares directly from the Company. As a result of the sale of shares through the March 2016 Offering and the repurchase of shares by FOX, the Company sold a total of 3,000,000 shares of FOX common stock, with total net proceeds of approximately $47.7 million . Upon completion of the March 2016 Offering and repurchase of shares by FOX, the Company's ownership interest in FOX was reduced from approximately 41% to 33% . In August 2016, FOX closed on a secondary public offering (the "August Offering") of 4,025,000 shares held by certain FOX shareholders, including the Company. The Company sold a total of 3,500,000 shares of FOX common stock in the August Offering, for total net proceeds of $63.0 million . Upon completion of the August Offering, the Company's ownership of FOX decreased from approximately 33% to approximately 23% . In November 2016, FOX closed on a secondary public offering (the "November Offering") of 3,500,000 shares of FOX common stock held by the Company, for total net proceeds of $71.8 million . Upon completion of the November Offering, the Company's ownership of FOX decreased from approximately 23% to approximately 14% . The Company's investment in FOX had a fair value of $141.8 million on December 31, 2016 based on the closing price of FOX shares on that date. In March 2017, FOX closed on a secondary public offering (the "March 2017 Offering") through which the Company sold their remaining 5,108,718 shares in FOX for total net proceeds of $136.1 million . Subsequent to the March 2017 Offering, the Company no longer holds an ownership interest in FOX. |
Property, Plant and Equipment a
Property, Plant and Equipment and Inventory | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment and Inventory | Property, Plant and Equipment and Inventory Property, plant and equipment Property, plant and equipment is comprised of the following at March 31, 2017 and December 31, 2016 (in thousands) : March 31, 2017 December 31, 2016 Machinery and equipment $ 151,876 $ 155,591 Furniture, fixtures and other 20,876 13,737 Leasehold improvements 15,207 14,156 Buildings and land 35,551 35,392 Construction in process 12,592 8,308 236,102 227,184 Less: accumulated depreciation (92,930 ) (84,814 ) Total $ 143,172 $ 142,370 Depreciation expense was $8.0 million for the three months ended March 31, 2017 , and $5.7 million for the three months ended March 31, 2016 . Inventory Inventory is comprised of the following at March 31, 2017 and December 31, 2016 (in thousands) : March 31, 2017 December 31, 2016 Raw materials and supplies $ 30,404 $ 29,708 Work-in-process 9,570 8,281 Finished goods 176,669 182,886 Less: obsolescence reserve (8,317 ) (7,891 ) Total $ 208,326 $ 212,984 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets As a result of acquisitions of various businesses, the Company has significant intangible assets on its balance sheet that include goodwill and indefinite-lived intangibles. Goodwill represents the difference between purchase cost and the fair value of net assets acquired in business acquisitions. Indefinite lived intangible assets are not amortized unless their useful life is determined to be finite. Long-lived intangible assets are subject to amortization using the straight-line method. The Company’s goodwill and indefinite-lived intangibles are tested and reviewed for impairment annually as of March 31st or more frequently if facts and circumstances warrant by comparing the fair value of each reporting unit to its carrying value. Each of the Company’s businesses represents a reporting unit, except Arnold, which comprises three reporting units. Goodwill 2017 Annual goodwill impairment testing The Company uses a qualitative approach to test goodwill for impairment by first assessing qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment testing. The qualitative factors we consider include, in part, the general macroeconomic environment, industry and market specific conditions for each reporting unit, financial performance including actual versus planned results and results of relevant prior periods, operating costs and cost impacts, as well as issues or events specific to the reporting unit. At March 31, 2017, we determined that the Manitoba Harvest reporting unit required further quantitative testing (step 1) because we could not conclude that the fair value of the reporting unit exceeds its carrying value based on qualitative factors alone. The Company utilized an income approach to perform the Step 1 testing at Manitoba Harvest. The weighted average cost of capital used in the income approach for Manitoba Harvest was 12.0% . Results of the step 1 quantitative testing of Manitoba Harvest indicated that the fair value of Manitoba Harvest exceeded its carrying value by 15.0% . For the reporting units that were tested qualitatively, the Company concluded that the results of the qualitative analysis indicated that the fair value of those reporting units exceeded their carrying value and that a quantitative analysis was not necessary. The Company expects to conclude the goodwill impairment testing during the quarter ended June 30, 2017. 2016 Interim goodwill impairment testing Arnold As a result of decreases in forecasted revenue, operating income and cash flows at Arnold, as well as a shortfall in revenue and operating income during the latter half of 2016 as compared to budgeted amounts, the Company determined that it was necessary to perform interim goodwill impairment testing on each of the three reporting units at Arnold. The Company performed Step 1 of the goodwill impairment assessment at December 31, 2016. In Step 1 of the goodwill impairment test, the Company compared the fair value of the reporting units to the carrying amount. Based on the results of the valuation, the fair value of the FlexMag and PTM reporting units exceeded the carrying amount, therefore no additional goodwill testing was required. The results of the Step 1 test for the PMAG unit indicated a potential impairment of goodwill and the Company performed the second step of goodwill impairment testing (Step 2) to determine the amount of impairment of the PMAG reporting unit. In the first test of goodwill impairment testing, we compare the fair value of each reporting unit to its carrying amount. For purposes of the Step 1 for the Arnold reporting units, we estimated the fair value of the reporting unit using an income approach, whereby we estimate the fair value of a reporting unit based on the present value of future cash flows. Cash flow projections are based on management's estimate of revenue growth rates and operating margins and take into consideration industry and market conditions as well as company and reporting unit specific economic factors. The discount rate used is based on the weighted average cost of capital adjusted for the relevant risk associated with the business specific characteristics and the uncertainty associated with the reporting unit's ability to execute on the projected cash flows. For the step 1 quantitative impairment testing for Arnold's reporting units, we used only an income approach because we determined that the guideline public company comparables for PMAG, FlexMag and PTM were not representative of these three reporting units. In the income approach, we used a weighted average cost of capital of 12.5% for PMAG, 12.0% for Flexmag and 13.0% for PTM. The Company had not completed the Step 2 analysis as of December 31, 2016, and therefore estimated a range of impairment loss of $14 million to $19 million based on the value of the total invested capital of the PMAG unit as well as the results of the Step 1 testing of the fair value of PMAG. The Company recorded an estimated impairment loss for PMAG of $16 million at December 31, 2016 based on that range. The Company completed the Step 2 goodwill impairment test of the PMAG reporting unit in the first quarter of 2017, and the results indicated total impairment of the goodwill of the PMAG reporting unit of $24.9 million . The Step 2 impairment was higher than the initial estimate at December 31, 2016 due primarily to the valuation of PMAG's property, plant and equipment during the Step 2 exercise. The Company recorded the additional impairment loss of $8.9 million in the first quarter of 2017. 2016 Annual goodwill impairment testing At March 31, 2016, we determined that the Tridien reporting unit (which is reported as a discontinued operations in the accompanying financial statements after the sale of the reporting unit in September 2016) required further quantitative testing (step 1) because we could not conclude that the fair value of the reporting unit exceeds its carrying value based on qualitative factors alone. Results of the step 1 quantitative testing of Tridien indicated that the fair value of Tridien exceeded its carrying value. For the reporting units that were tested qualitatively, the results of the qualitative analysis indicated that the fair value of those reporting units exceeded their carrying value. A summary of the net carrying value of goodwill at March 31, 2017 and December 31, 2016, is as follows (in thousands) : Three months ended March 31, 2017 Year ended Goodwill - gross carrying amount 514,741 507,637 Accumulated impairment losses (24,864 ) (16,000 ) Goodwill - net carrying amount $ 489,877 $ 491,637 The following is a reconciliation of the change in the carrying value of goodwill for the three months ended March 31, 2017 by operating segment (in thousands) : Corporate (1) 5.11 Ergobaby Liberty Manitoba Harvest ACI Arnold (2) Clean Earth Sterno Total Balance as of January 1, 2017 $ 8,649 $ 92,966 $ 61,031 $ 32,828 $ 44,171 $ 58,019 $ 35,767 $ 118,224 $ 39,982 $ 491,637 Acquisition (3) — — — — — — — 6,722 — 6,722 Impairment expense — — — — — — (8,864 ) — — (8,864 ) Foreign currency translation — — (3 ) — 385 — — — — 382 Balance as of March 31, 2017 $ 8,649 $ 92,966 $ 61,028 $ 32,828 $ 44,556 $ 58,019 $ 26,903 $ 124,946 $ 39,982 $ 489,877 (1) Represents goodwill resulting from purchase accounting adjustments not "pushed down" to the ACI segment. This amount is allocated back to the ACI segment for purposes of goodwill impairment testing. (2) Arnold Magnetics has three reporting units PMAG, FlexMag and Precision Thin Metals with goodwill balances of $15.6 million , $4.8 million and $6.5 million , respectively. (3) The goodwill related to an acquisition by Clean Earth is based on a preliminary purchase price allocation. Long lived assets 2017 Annual indefinite lived impairment testing The Company uses a qualitative approach to test indefinite lived intangible assets for impairment by first assessing qualitative factors to determine whether it is more-likely-than-not that the fair value of an indefinite lived intangible asset is impaired as a basis for determining whether it is necessary to perform quantitative impairment testing. The Company evaluated the qualitative factors of each reporting unit that maintains indefinite lived intangible assets in connection with the annual impairment testing for 2017. Results of the qualitative analysis indicate that the carrying value of the Company’s indefinite lived intangible assets did not exceed their fair value. The Company expects to conclude the goodwill impairment testing during the quarter ended June 30, 2017. 2016 Annual indefinite lived impairment testing The Company used a qualitative approach to test indefinite lived intangible assets for impairment by first assessing qualitative factors to determine whether it is more-likely-than-not that the fair value of an indefinite lived intangible asset is impaired as a basis for determining whether it is necessary to perform quantitative impairment testing. The Company evaluated the qualitative factors of each reporting unit that maintains indefinite lived intangible assets in connection with the annual impairment testing for 2016. Results of the qualitative analysis indicate that the carrying value of the Company’s indefinite lived intangible assets did not exceed their fair value. Other intangible assets are comprised of the following at March 31, 2017 and December 31, 2016 (in thousands) : March 31, 2017 December 31, 2016 Weighted Average Useful Lives Customer relationships $ 305,151 $ 304,751 13 Technology and patents 44,850 44,710 9 Trade names, subject to amortization 128,697 128,675 13 Licensing and non-compete agreements 7,845 7,845 4 Permits and airspace 113,321 113,295 13 Distributor relations and other 606 606 5 600,470 599,882 Accumulated amortization: Customer relationships (84,776 ) (79,607 ) Technology and patents (19,451 ) (18,290 ) Trade names, subject to amortization (8,394 ) (6,833 ) Licensing and non-compete agreements (6,113 ) (5,987 ) Permits and airspace (23,841 ) (21,531 ) Distributor relations and other (606 ) (606 ) Total accumulated amortization (143,181 ) (132,854 ) Trade names, not subject to amortization 72,290 72,183 Total intangibles, net $ 529,579 $ 539,211 Amortization expense related to intangible assets was $10.3 million for the three months ended March 31, 2017, and $7.4 million for the three months ended March 31, 2016. Estimated charges to amortization expense of intangible assets over the next five years, is as follows (in thousands) : April 1, 2016 through Dec. 31, 2017 $ 30,606 2018 39,420 2019 38,130 2020 37,644 2021 37,341 $ 183,141 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt 2014 Credit Facility The 2014 Credit Facility is secured by all of the assets of the Company, including all of its equity interests in, and loans to, its consolidated subsidiaries. The Company amended the 2014 Credit Facility in June 2015, primarily to allow for intercompany loans to, and the acquisition of, Canadian-based companies on an unsecured basis, and to modify provisions that would allow for early termination of a "Leverage Increase Period," thereby providing additional flexibility as to the timing of subsequent acquisitions. On August 15, 2016, the Company amended the 2014 Credit Facility to, among other things, increase the aggregate amount of the 2014 Credit Facility by $400 million . On August 31, 2016, the Company entered into an Incremental Facility Amendment to the 2014 Credit Agreement (the "Incremental Facility Amendment"). The Incremental Facility Amendment provided for an increase to the 2014 Revolving Credit Facility of $150 million , and the 2016 Incremental Term Loan, in the amount of $250 million . As a result of the Incremental Facility Amendment, the 2014 Credit Facility currently provides for (i) a revolving credit facility of $550 million (as amended from time to time, the "2014 Revolving Credit Facility"), (ii) a $325 million term loan (the "2014 Term Loan Facility"), and (iii) a $250 million incremental term loan ""the "2016 Incremental Term Loan"). 2014 Revolving Credit Facility The 2014 Revolving Credit Facility will become due in June 2019. The Company can borrow, prepay and reborrow principal under the 2014 Revolving Credit Facility from time to time during its term. Advances under the 2014 Revolving Credit Facility can be either LIBOR rate loans (as defined below) or base rate loans. LIBOR rate revolving loans bear interest at a rate per annum equal to the London Interbank Offered Rate (the "LIBOR Rate") plus a margin ranging from 2.00% to 2.75% based on the ratio of consolidated net indebtedness to adjusted consolidated earnings before interest expense, tax expense and depreciation and amortization expenses (the "Consolidated Leverage Ratio"). Base rate revolving loans bear interest at a fluctuating rate per annum equal to the greatest of (i) the prime rate of interest, or (ii) the Federal Funds Rate plus 0.50% (the "Base Rate"), plus a margin ranging from 1.00% to 1.75% based upon the Consolidated Leverage Ratio. Term Loans 2014 Term Loan The 2014 Term Loan Facility expires in June 2021 and requires quarterly payments that commenced September 30, 2014, with a final payment of all remaining principal and interest due on June 6, 2021. The 2014 Term Loan Facility was issued at an original issue discount of 99.5% of par value. 2016 Incremental Term Loan The 2016 Incremental Term Loan was issued at an original issue discount of 99.25% of par value. The Company incurred $6.0 million in additional debt issuance costs related to the Incremental Credit Facility, which will be recognized as expense during the remaining term of the related 2014 Revolving Credit Facility, and 2014 Term Loan and 2016 Incremental Term Loan. The Incremental Facility Amendment did not change the due dates or applicable interest rates of the 2014 Credit Agreement. The quarterly payments for the term advances under the 2014 Credit Agreement increased to approximately $1.4 million per quarter. The Company used the proceeds from the Incremental Facility Amendment to fund the acquisition of 5.11 Tactical (refer to Note C - "Acquisitions "). The additional advances under the Incremental Credit Facility was a loan modification for accounting purposes. Consequently, the Company capitalized debt issuance costs of $6.0 million associated with fees charged by lenders of the Incremental Credit Facility. The capitalized debt issuance costs will be amortized over the remaining period of the 2014 Credit Facility. In March 2017, the Company amended the 2014 Credit Facility (the "Fourth Amendment") to reduce the applicable rate of interest for the 2014 Term Loan and 2016 Incremental Term Loan. Under the Fourth Amendment, outstanding LIBOR loans bear interest at LIBOR plus an applicable rate of 2.75% and outstanding Base Rate loans bear interest at Base Rate plus 1.75% . Prior to the amendment, the outstanding term loans bore interest at LIBOR plus 3.25% or Base Rate plus 2.25% . In connection with the Fourth Amendment, the Company capitalized debt issuance costs of $1.2 million associated with fees charged by term loan lenders. Other The 2014 Credit Facility provides for sub-facilities under the 2014 Revolving Credit Facility pursuant to which an aggregate amount of up to $100 million in letters of credit may be issued, as well as swing line loans of up to $25 million outstanding at one time. The issuance of such letters of credit and the making of any swing line loan reduces the amount available under the 2014 Revolving Credit Facility. The Company will pay (i) commitment fees on the unused portion of the 2014 Revolving Credit Facility ranging from 0.45% to 0.60% per annum based on its Consolidated Leverage Ratio, (ii) quarterly letter of credit fees, and (iii) administrative and agency fees. Debt Issuance Costs Deferred debt issuance costs represent the costs associated with the entering into the 2014 Credit Facility as well as amendments to the 2014 Credit Facility, and are amortized over the term of the related debt instrument. Since the Company can borrow, repay and reborrow principal under the 2014 Revolving Credit Facility, the debt issuance costs associated with this facility have been classified as other non-current assets in the accompanying consolidated balance sheet. The debt issuance costs associated with the 2014 Term Loan and 2016 Incremental Term Loan are classified as a reduction of long-term debt in the accompanying consolidated balance sheet. The following table summarizes debt issuance costs at March 31, 2017 and December 31, 2016, and the balance sheet classification in each of the periods presents ( in thousands ): March 31, 2017 December 31, 2016 Deferred debt issuance costs $ 20,122 $ 18,960 Accumulated amortization (7,180 ) (6,248 ) Deferred debt issuance costs, less accumulated amortization $ 12,942 $ 12,712 Balance Sheet classification: Other non-current assets $ 4,219 $ 4,698 Long-term debt 8,723 8,014 $ 12,942 $ 12,712 The following table provides the Company’s debt holdings at March 31, 2017 and December 31, 2016 (in thousands) : March 31, 2017 December 31, 2016 Revolving Credit Facility $ — $ 4,400 Term Loan 564,236 565,658 Original issue discount (4,292 ) (4,706 ) Debt issuance costs - term loan (8,723 ) (8,015 ) Total debt $ 551,221 $ 557,337 Less: Current portion, term loan facilities (5,685 ) (5,685 ) Long term debt $ 545,536 $ 551,652 Net availability under the 2014 Revolving Credit Facility was approximately $546.1 million at March 31, 2017 . Letters of credit outstanding at March 31, 2017 totaled approximately $3.9 million . At March 31, 2017 , the Company was in compliance with all covenants as defined in the 2014 Credit Facility. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities On September 16, 2014, the Company purchased an interest rate swap ("New Swap") with a notional amount of $220 million . The New Swap is effective April 1, 2016 through June 6, 2021, the termination date of the 2014 Term Loan. The agreement requires the Company to pay interest on the notional amount at the rate of 2.97% in exchange for the three -month LIBOR rate. At March 31, 2017 and December 31, 2016, this Swap had a fair value loss of $9.4 million and $10.7 million , respectively, principally reflecting the present value of future payments and receipts under the agreement. The Company did not elect hedge accounting for the above derivative transaction and as a result, periodic mark-to-market changes in fair value are reflected as a component of interest expense in the consolidated statement of operations. The following table reflects the classification of the Company's interest rate swap on the consolidated balance sheets at March 31, 2017 and December 31, 2016 ( in thousands ): March 31, 2017 December 31, 2016 Other current liabilities $ 3,568 $ 4,010 Other noncurrent liabilities 5,834 6,709 Total fair value $ 9,402 $ 10,719 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The following table provides the assets and liabilities carried at fair value measured on a recurring basis at March 31, 2017 and December 31, 2016 ( in thousands ): Fair Value Measurements at March 31, 2017 Carrying Value Level 1 Level 2 Level 3 Liabilities: Put option of noncontrolling shareholders (1) $ (180 ) $ — $ — $ (180 ) Contingent consideration - acquisitions (2) (4,830 ) — — (4,830 ) Interest rate swap (9,402 ) — (9,402 ) — Total recorded at fair value $ (14,412 ) $ — $ (9,402 ) $ (5,010 ) (1) Represents put option issued to noncontrolling shareholders in connection with the 5.11 Tactical and Liberty acquisitions. (2) Represents potential earn-outs payable by Sterno Products for the acquisition of NII and Ergobaby in connection with their acquisition of Baby Tula. Fair Value Measurements at December 31, 2016 Carrying Value Level 1 Level 2 Level 3 Assets: Equity method investment - FOX $ 141,767 $ 141,767 $ — $ — Liabilities: Put option of noncontrolling shareholders (180 ) — — (180 ) Contingent consideration (4,830 ) — — (4,830 ) Interest rate swap (10,719 ) — (10,719 ) — Total recorded at fair value $ 126,038 $ 141,767 $ (10,719 ) $ (5,010 ) Reconciliations of the change in the carrying value of the Level 3 fair value measurements from January 1st through March 31st in 2017 and 2016 are as follows ( in thousands ): 2017 2016 Balance at January 1st $ (5,010 ) $ (50 ) Contingent consideration - acquisition — (1,500 ) Balance at March 31st $ (5,010 ) $ (1,550 ) Valuation Techniques The Company has not changed its valuation techniques in measuring the fair value of any of its other financial assets and liabilities during the period. For details of the Company’s fair value measurement policies under the fair value hierarchy, refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. 2014 Term Loan and 2016 Incremental Term Loan At March 31, 2017 , the carrying value of the principal under the Company’s outstanding Term Loans, including the current portion, was $564.2 million , which approximates fair value because it has a variable interest rate that reflects market changes in interest rates and changes in the Company's net leverage ratio. The estimated fair value of the outstanding 2014 Term Loan is based on quoted market prices for similar debt issues and is, therefore, classified as Level 2 in the fair value hierarchy. Nonrecurring Fair Value Measurements The following table provides the assets carried at fair value measured on a non-recurring basis as of March 31, 2017 and December 31, 2016. Fair Value Measurements at March 31, 2017 Three months ended (in thousands) Carrying Level 1 Level 2 Level 3 Expense Goodwill (1) 26,903 — — 26,903 8,864 (1) Represents the fair value of the goodwill of the Arnold business segment. Refer to Note H "Goodwill and Other Intangible Assets" for further discussion regarding the impairment and valuation techniques applied. Fair Value Measurements at December 31, 2016 Year ended (in thousands) Carrying Level 1 Level 2 Level 3 Expense Goodwill 35,767 — — 35,767 16,000 Property, Plant and Equipment (1) — — — — 1,824 Tradename (1) — — — — 317 Technology (1) — — — — 3,460 Customer relationships (1) — — — — 2,426 Permits (1) — — — — 1,177 (1) Represents the fair value of the respective assets of the Orbitbaby product line of Ergobaby and the Clean Earth Williamsport site, both of which were disposed of during 2016. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Trust Common Shares The Trust is authorized to issue 500,000,000 Trust shares and the Company is authorized to issue a corresponding number of LLC interests. The Company will at all times have the identical number of LLC interests outstanding as Trust shares. Each Trust share represents an undivided beneficial interest in the Trust, and each Trust share is entitled to one vote per share on any matter with respect to which members of the Company are entitled to vote. Trust Preferred Shares Pursuant to the Trust Agreement, the Trust is authorized to issue up to 50,000,000 Trust preferred shares and the Company is authorized to issue a corresponding number of Trust Interests. As of March 31, 2017, the Trust had no preferred shares outstanding. Profit Allocation Interests The Allocation Interests represent the original equity interest in the Company. The holders of the Allocation Interests ("Holders") are entitled to receive distributions pursuant to a profit allocation formula upon the occurrence of certain events. The distributions of the profit allocation are paid upon the occurrence of the sale of a material amount of capital stock or assets of one of the Company’s businesses ("Sale Event") or, at the option of the Holders, at each five year anniversary date of the acquisition of one of the Company’s businesses ("Holding Event"). The Company records distributions of the profit allocation to the Holders upon occurrence of a Sale Event or Holding Event as distributions declared on Allocation Interests to stockholders’ equity when they are approved by the Company’s board of directors. The sale of FOX shares in March 2017 (refer to Note F - "Investment in FOX" ) qualified as a Sale Event under the Company's LLC Agreement. In April 2017, with respect to the sale of FOX shares in March 2017, the Company's board of directors approved and declared a profit allocation payment totaling $25.8 million that will be paid in the second quarter of 2017. The sale of FOX shares in March 2016 (refer to Note F - "Investment in FOX" ) qualified as a Sale Event under the Company's LLC Agreement. In April 2016, with respect to the March 2016 Offering, the Company's board of directors approved and declared a profit allocation payment totaling $8.6 million that was paid to Holders during the second quarter of 2016. In November 2016, with respect to the sale of FOX shares in August 2016 and the sale of Tridien, both qualifying as Sale Events, the Company's board of directors approved and declared a profit allocation payment of $7.0 million that was paid during the fourth quarter of 2016. In the fourth quarter of 2016, the Company's board of directors declared a profit allocation payment to the Allocation Interest Holders of $13.4 million related to the FOX November Offering (refer to Note F - "Investment in FOX" ). This amount was paid in the first quarter of 2017. The Company's board of directors also declared and the Company paid an $8.2 million distribution in the third quarter of 2016 to the Allocation Member in connection with a Holding Event of our ownership of the Advanced Circuits subsidiary. The payment is in respect to Advanced Circuits' positive contribution-based profit in the five year holding period ending June 30, 2016. Earnings per share The Company calculates basic and diluted earnings per share using the two-class method which requires the Company to allocate participating securities that have rights to earnings that otherwise would have been available only to Trust shareholders as a separate class of securities in calculating earnings per share. The Allocation Interests are considered participating securities that contain participating rights to receive profit allocations upon the occurrence of a Holding Event or Sale Event. The calculation of basic and diluted earnings per share for the three months ended March 31, 2017 and 2016 reflects the incremental increase during the period in the profit allocation distribution to Holders related to Holding Events. Basic and diluted earnings per share for the three months ended March 31, 2017 and 2016 attributable to Holdings is calculated as follows: Three months ended March 31, 2017 2016 Loss from continuing operations attributable to Holdings $ (21,945 ) $ (15,751 ) Less: Profit Allocation paid to Holdings 13,354 — Less: Effect of contribution based profit - Holding Event 1,258 850 Loss from continuing operation attributable to Trust shares $ (36,557 ) $ (16,601 ) Income (loss) from discontinued operations attributable to Holdings $ 340 $ (272 ) Less: Effect of contribution based profit — — Income (loss) from discontinued operations attributable to Trust shares $ 340 $ (272 ) Basic and diluted weighted average shares outstanding 59,900 54,300 Basic and fully diluted income (loss) per share attributable to Holdings Continuing operations $ (0.61 ) $ (0.31 ) Discontinued operations 0.01 — $ (0.60 ) $ (0.31 ) Distributions • On January 26, 2017 , the Company paid a distribution of $0.36 per share to holders of record as of January 19, 2017 . This distribution was declared on January 5, 2017 . • On April 27, 2017 , the Company paid a distribution of $0.36 per share to holders of record as of April 21, 2017 . This distribution was declared on April 6, 2017 . |
Warranties
Warranties | 3 Months Ended |
Mar. 31, 2017 | |
Guarantees [Abstract] | |
Warranties | Warranties The Company’s Ergobaby and Liberty operating segments estimate their exposure to warranty claims based on both current and historical product sales data and warranty costs incurred. The Company assesses the adequacy of its recorded warranty liability quarterly and adjusts the amount as necessary. A reconciliation of the change in the carrying value of the Company’s warranty liability for the three months ended March 31, 2017 and the year ended December 31, 2016 is as follows ( in thousands ): Three months ended March 31, 2017 Year ended Warranty liability: Beginning balance $ 1,258 $ 1,259 Accrual 45 252 Warranty payments (42 ) (253 ) Ending balance $ 1,261 $ 1,258 |
Noncontrolling Interest
Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interest represents the portion of the Company’s majority-owned subsidiary’s net income (loss) and equity that is owned by noncontrolling shareholders. The following tables reflect the Company’s ownership percentage of its majority owned operating segments and related noncontrolling interest balances as of March 31, 2017 and December 31, 2016: % Ownership (1) March 31, 2017 % Ownership (1) December 31, 2016 Primary Fully Diluted Primary Fully Diluted 5.11 Tactical 97.5 85.1 97.5 85.1 Ergobaby 83.5 77.3 83.5 76.9 Liberty 88.6 84.7 88.6 84.7 Manitoba Harvest 76.6 65.1 76.6 65.6 ACI 69.4 69.3 69.4 69.3 Arnold Magnetics 96.7 84.7 96.7 84.7 Clean Earth 97.5 79.8 97.5 79.8 Sterno Products 100.0 89.5 100.0 89.5 (1) The principal difference between primary and diluted percentages of our operating segments is due to stock option issuances of operating segment stock to management of the respective businesses. Noncontrolling Interest Balances (in thousands) March 31, 2017 December 31, 2016 5.11 Tactical 6,336 5,934 Ergobaby 19,063 18,647 Liberty 2,783 2,681 Manitoba Harvest 13,640 13,687 ACI (10,333 ) (11,220 ) Arnold Magnetics 1,235 1,536 Clean Earth 5,797 5,469 Sterno Products 1,490 1,305 Allocation Interests 100 100 $ 40,111 $ 38,139 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes Each fiscal quarter the Company estimates its annual effective tax rate and applies that rate to its interim pre-tax earnings. In this regard, the Company reflects the full year’s estimated tax impact of certain unusual or infrequently occurring items and the effects of changes in tax laws or rates in the interim period in which they occur. The computation of the annual estimated effective tax rate in each interim period requires certain estimates and significant judgment, including the projected operating income for the year, projections of the proportion of income earned and taxed in other jurisdictions, permanent and temporary differences and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, as additional information is obtained or as the tax environment changes. Certain foreign operations are subject to foreign income taxation under existing provisions of the laws of those jurisdictions. Pursuant to U.S. tax laws, earnings from those jurisdictions will be subject to the U.S. income tax rate when those earnings are repatriated. The reconciliation between the Federal Statutory Rate and the effective income tax rate for the three months ended March 31, 2017 and 2016 are as follows: Three months ended March 31, 2017 2016 United States Federal Statutory Rate (35.0 )% (35.0 )% State income taxes (net of Federal benefits) (2.0 ) 1.7 Foreign income taxes 4.4 7.9 Expenses of Compass Group Diversified Holdings, LLC representing a pass through to shareholders (1) 1.0 21.7 Impairment expense 12.7 — Effect of loss on equity method investment (2) 7.8 32.9 Impact of subsidiary employee stock options 0.4 1.1 Domestic production activities deduction (0.7 ) (2.3 ) Effect of undistributed foreign earnings 0.7 — Non-recognition of NOL carryforwards at subsidiaries (2.7 ) (0.6 ) Other (1.1 ) 1.6 Effective income tax rate (14.5 )% 29.0 % (1) The effective income tax rate for the three months ended March 31, 2017 and 2016 includes a loss at the Company's parent, which is taxed as a partnership. (2) The investment in FOX is held at the Company's parent, which is taxed as a partnership, resulting in the gain or loss on the investment as a reconciling item in deriving the effective tax rate. |
Defined Benefit Plan
Defined Benefit Plan | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plan | Defined Benefit Plan In connection with the acquisition of Arnold, the Company has a defined benefit plan covering substantially all of Arnold’s employees at its Lupfig, Switzerland location. The benefits are based on years of service and the employees’ highest average compensation during the specific period. The unfunded liability of $ 3.5 million is recognized in the consolidated balance sheet as a component of other non-current liabilities at March 31, 2017 . Net periodic benefit cost consists of the following for the three months ended March 31, 2017 and 2016 (in thousands ): Three months ended March 31, 2017 2016 Service cost $ 131 $ 109 Interest cost 23 34 Expected return on plan assets 23 5 Net periodic benefit cost $ 177 $ 148 During the three months ended March 31, 2017, Arnold contributed $0.1 million to the plan utilizing reserves from prior years over funding of the plan. For the remainder of 2017, the expected contribution to the plan will be approximately $0.6 million . The plan assets are pooled with assets of other participating employers and are not separable; therefore the fair values of the pension plan assets at March 31, 2017 were considered Level 3. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company and its subsidiaries are involved in various claims and legal proceedings. While the ultimate resolution of these matters has yet to be determined, the Company does not believe that any unfavorable outcomes will have a material adverse effect on the Company's consolidated financial position or results of operations. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events Allocation Interests - Profit Allocation Payment The sale of FOX shares in a secondary offering in March 2017 qualified as a Sale Event under the Company's LLC Agreement. During the second quarter, the Company's board of directors declared a distribution to the Allocation Member in connection with the FOX Sale Event of $25.8 million . The profit allocation payment will be made during the quarter ended June 30, 2017. |
Presentation and Principles o26
Presentation and Principles of Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Seasonality | Seasonality Earnings of certain of the Company’s operating segments are seasonal in nature. Earnings from Liberty are typically lowest in the second quarter due to lower demand for safes at the onset of summer. Earnings from Clean Earth are typically lower in the winter months due to reduced levels of construction and development activity in the Northeastern United States. Sterno Products typically has higher sales in the second and fourth quarter of each year, reflecting the outdoor summer season and the holiday season. |
Consolidation | Consolidation The condensed consolidated financial statements include the accounts of Holdings and all majority owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Recently Issued and Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In January 2017, the FASB issued new accounting guidance to simplify the accounting for goodwill impairment. The guidance removes step two of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the new guidance, a goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains largely unchanged. Entities will continue to have the option to perform a qualitative test to determine if a quantitative test is necessary. The guidance is effective for fiscal years and interim periods within those year, after December 31, 2019, with early adoption permitted for any goodwill impairment tests performed after January 1, 2017 and will be applied prospectively. The Company adopted this guidance early, effective January 1, 2017, on a prospective basis, and will apply the guidance as necessary to annual and interim goodwill testing performed subsequent to January 1, 2017. Recently Issued Accounting Pronouncements In March 2017, the FASB issued new guidance that will require employers that sponsor defined benefit plans to present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period, and requires the other components of net periodic pension cost to be presented in the income statement separately from the service component cost and outside a subtotal of income from operations. The new guidance shall be applied retrospectively for the presentation of of the service cost component and the other components of net periodic pension cost. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company's Arnold business segment has a defined benefit plan covering substantially all of Arnold's employees at its Switzerland location. The adoption of this guidance is not expected to have a material impact upon our financial condition or results of operations. In January 2017, the FASB issued new guidance that changes the definition of a business to assist entities in evaluating when a set of transferred assets and activities constitutes a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If so, the set of transferred asset and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in the new revenue recognition guidance. The new standard will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The adoption of this guidance is not expected to have a material impact upon our financial condition or results of operations. In August 2016, the FASB issued an accounting standard update which updates the guidance as to how certain cash receipts and cash payments should be presented and classified within the statement of cash flows. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted, including adoption in an interim period. In February 2016, the FASB issued an accounting standard update related to the accounting for leases which will require an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. The standard update offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, the new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires modified retrospective adoption, with early adoption permitted. Accordingly, this standard is effective for the Company on January 1, 2019. The Company is currently assessing the impact of the new standard on our consolidated financial statements. In May 2014, the FASB issued a comprehensive new revenue recognition standard. The new standard outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard is designed to create greater comparability for financial statement users across industries, jurisdictions and capital markets and also requires enhanced disclosures. The new standard will be effective for the Company beginning January 1, 2018. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company currently anticipates adopting the standard using the cumulative catch-up transition method. The Company has commenced its initial assessment to evaluate the impact, if any, the new revenue standard will have on the Company’s consolidated financial statements. During this initial assessment, the Company has identified certain differences that will likely have the most impact; however, the significance of any impact cannot be determined during this phase of the Company’s implementation process. These differences relate to the new concepts of variable consideration, consideration payable and the focus on control to determine when and how revenue should be recognized (i.e. point in time versus over time). The Company expects to complete its initial assessment by the end of the third quarter of 2017 and finalize its implementation process prior to the adoption of the new revenue standard on January 1, 2018. The Company will also continue to monitor for any additional implementation or other guidance that may be issued in 2017 with respect to the new revenue standard and adjust its assessment and implementation plans accordingly. |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Acquisition [Line Items] | |
Pro Forma Information | The following unaudited pro forma data for the three months ended March 31, 2016 gives effect to the acquisition of 5.11 Tactical, as described above, as if the acquisition had been completed as of January 1, 2016, and the sale of Tridien as if the disposition had been completed on January 1, 2016. The pro forma data gives effect to historical operating results with adjustments to interest expense, amortization and depreciation expense, management fees and related tax effects. The information is provided for illustrative purposes only and is not necessarily indicative of the operating results that would have occurred if the transaction had been consummated on the date indicated, nor is it necessarily indicative of future operating results of the consolidated companies, and should not be construed as representing results for any future period. Three months ended (in thousands) March 31, 2016 Net sales $ 261,265 Gross profit 94,216 Operating income 6,769 Net loss (19,236 ) Net loss attributable to Holdings (20,343 ) Basic and fully diluted net loss per share attributable to Holdings $ (0.39 ) |
5.11 Tactical | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions | The table below provides the recording of assets acquired and liabilities assumed as of the acquisition date. 5.11 Tactical (in thousands) Amounts recognized as of the acquisition date Assets: Cash $ 12,581 Accounts receivable (1) 38,323 Inventory (2) 160,304 Property, plant and equipment (3) 22,723 Intangible assets 127,890 Goodwill 92,966 Other current and noncurrent assets 4,884 Total assets 459,671 Liabilities and noncontrolling interest: Current liabilities $ 38,229 Other liabilities 180,231 Deferred tax liabilities 10,163 Noncontrolling interest 5,568 Total liabilities and noncontrolling interest 234,191 Net assets acquired 225,480 Noncontrolling interest 5,568 Intercompany loans to business 179,237 $ 410,285 Acquisition Consideration Purchase price $ 400,000 Working capital adjustment (2,296 ) Cash 12,581 Total purchase consideration $ 410,285 Less: Transaction costs 2,063 Purchase price, net $ 408,222 (1) Includes $40.1 million of gross contractual accounts receivable of which $1.7 million was not expected to be collected. The fair value of accounts receivable approximated book value acquired. (2) Includes $39.1 million in inventory basis step-up, which will be charged to cost of goods sold over the inventory turns of the acquired entity. (3) Includes $7.6 million of property, plant and equipment basis step-up. |
Schedule of Intangible Assets Recorded as Part of Acquisition | The intangible assets recorded related to the 5.11 acquisition are as follows ( in thousands ): Intangible assets Amount Estimated Useful Life Trade name $ 48,665 15 years Customer relationships 75,218 15 years Technology 4,007 10 years $ 127,890 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Tridien | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations | Summarized operating results of discontinued operations for the three months ended March 31, 2016 are as follows: Three months ended March 31, 2016 (in thousands) Tridien Net sales $ 14,760 Gross profit 2,142 Operating loss (577 ) Income from continuing operations before income taxes 413 Provision for income taxes — Income from discontinued operations (1) $ 413 (1) The results for the three months ended March 31, 2016 exclude $0.3 million of intercompany interest expense. |
Operating Segment Data (Tables)
Operating Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Net Sales of Operating Segments | International Revenues Three months ended 2017 2016 5.11 Tactical $ 25,266 $ — Ergobaby 12,814 10,377 Manitoba Harvest 5,895 6,130 Arnold Magnetics 11,055 10,799 Sterno Products 634 5,192 $ 55,664 $ 32,498 A disaggregation of the Company’s consolidated revenue and other financial data for the three months ended March 31, 2017 and 2016 is presented below (in thousands) : Net sales of operating segments Three months ended 2017 2016 5.11 Tactical $ 78,513 $ — Ergobaby 22,613 19,415 Liberty 27,978 29,000 Manitoba Harvest 13,128 13,717 ACI 21,460 21,517 Arnold Magnetics 26,496 27,383 Clean Earth 47,276 38,286 Sterno Products 52,528 43,969 Total 289,992 193,287 Reconciliation of segment revenues to consolidated revenues: Corporate and other — — Total consolidated revenues $ 289,992 $ 193,287 |
Summary of Profit (Loss) of Operating Segments | Profit (loss) of operating segments (1) Three months ended 2017 2016 5.11 Tactical $ (9,485 ) $ — Ergobaby 5,200 4,090 Liberty 2,480 4,841 Manitoba Harvest 223 363 ACI 5,640 5,832 Arnold Magnetics (8,397 ) 626 Clean Earth (446 ) (958 ) Sterno Products 3,652 2,412 Total (1,133 ) 17,206 Reconciliation of segment profit to consolidated income (loss) before income taxes: Interest expense, net (7,136 ) (11,462 ) Other income (expense), net (22 ) 3,256 Loss on equity method investment (5,620 ) (10,623 ) Corporate and other (2) (11,212 ) (9,695 ) Total consolidated loss before income taxes $ (25,123 ) $ (11,318 ) (1) Segment profit (loss) represents operating income (loss). (2) Primarily relates to management fees expensed and payable to CGM, and corporate overhead expenses |
Summary of Goodwill and Identifiable Assets of Operating Segments | Accounts Receivable Identifiable Assets Depreciation and Amortization Expense March 31, December 31, March 31, December 31, Three months ended 2017 2016 2017 (1) 2016 (1) 2017 2016 5.11 Tactical $ 46,707 $ 49,653 $ 294,159 $ 311,560 $ 17,532 $ — Ergobaby 9,359 11,018 113,559 113,814 653 835 Liberty 14,941 13,077 26,399 26,344 599 656 Manitoba Harvest 5,568 6,468 96,164 97,977 1,510 1,314 ACI 6,598 6,686 16,404 16,541 873 841 Arnold Magnetics 15,145 15,195 65,490 64,209 2,045 2,237 Clean Earth 46,142 45,619 189,979 193,250 5,227 4,955 Sterno Products 36,547 38,986 135,514 134,661 2,956 3,451 Allowance for doubtful accounts (8,122 ) (5,511 ) — — — — Total 172,885 181,191 937,668 958,356 31,395 14,289 Reconciliation of segment to consolidated total: Corporate and other identifiable assets (2) — — 86,077 145,971 — — Amortization of debt issuance costs and original issue discount — — — — 1,199 738 Total $ 172,885 $ 181,191 $ 1,023,745 $ 1,104,327 $ 32,594 $ 15,027 (1) Does not include accounts receivable balances per schedule above or goodwill balances - refer to Note H - "Goodwill and Other Intangible Assets" . (2) Corporate and other identifiable assets for the year ended December 31, 2016 includes the Company's investment in FOX, which was sold during the first quarter of 2017 - refer to Note F - "Investment in FOX" . |
Property, Plant and Equipment30
Property, Plant and Equipment and Inventory (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment is comprised of the following at March 31, 2017 and December 31, 2016 (in thousands) : March 31, 2017 December 31, 2016 Machinery and equipment $ 151,876 $ 155,591 Furniture, fixtures and other 20,876 13,737 Leasehold improvements 15,207 14,156 Buildings and land 35,551 35,392 Construction in process 12,592 8,308 236,102 227,184 Less: accumulated depreciation (92,930 ) (84,814 ) Total $ 143,172 $ 142,370 |
Summary of Inventory | Inventory is comprised of the following at March 31, 2017 and December 31, 2016 (in thousands) : March 31, 2017 December 31, 2016 Raw materials and supplies $ 30,404 $ 29,708 Work-in-process 9,570 8,281 Finished goods 176,669 182,886 Less: obsolescence reserve (8,317 ) (7,891 ) Total $ 208,326 $ 212,984 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Reconciliation of Change in Carrying Value of Goodwill | A summary of the net carrying value of goodwill at March 31, 2017 and December 31, 2016, is as follows (in thousands) : Three months ended March 31, 2017 Year ended Goodwill - gross carrying amount 514,741 507,637 Accumulated impairment losses (24,864 ) (16,000 ) Goodwill - net carrying amount $ 489,877 $ 491,637 The following is a reconciliation of the change in the carrying value of goodwill for the three months ended March 31, 2017 by operating segment (in thousands) : Corporate (1) 5.11 Ergobaby Liberty Manitoba Harvest ACI Arnold (2) Clean Earth Sterno Total Balance as of January 1, 2017 $ 8,649 $ 92,966 $ 61,031 $ 32,828 $ 44,171 $ 58,019 $ 35,767 $ 118,224 $ 39,982 $ 491,637 Acquisition (3) — — — — — — — 6,722 — 6,722 Impairment expense — — — — — — (8,864 ) — — (8,864 ) Foreign currency translation — — (3 ) — 385 — — — — 382 Balance as of March 31, 2017 $ 8,649 $ 92,966 $ 61,028 $ 32,828 $ 44,556 $ 58,019 $ 26,903 $ 124,946 $ 39,982 $ 489,877 (1) Represents goodwill resulting from purchase accounting adjustments not "pushed down" to the ACI segment. This amount is allocated back to the ACI segment for purposes of goodwill impairment testing. (2) Arnold Magnetics has three reporting units PMAG, FlexMag and Precision Thin Metals with goodwill balances of $15.6 million , $4.8 million and $6.5 million , respectively. (3) The goodwill related to an acquisition by Clean Earth is based on a preliminary purchase price allocation. |
Summary of Other Intangible Assets | Other intangible assets are comprised of the following at March 31, 2017 and December 31, 2016 (in thousands) : March 31, 2017 December 31, 2016 Weighted Average Useful Lives Customer relationships $ 305,151 $ 304,751 13 Technology and patents 44,850 44,710 9 Trade names, subject to amortization 128,697 128,675 13 Licensing and non-compete agreements 7,845 7,845 4 Permits and airspace 113,321 113,295 13 Distributor relations and other 606 606 5 600,470 599,882 Accumulated amortization: Customer relationships (84,776 ) (79,607 ) Technology and patents (19,451 ) (18,290 ) Trade names, subject to amortization (8,394 ) (6,833 ) Licensing and non-compete agreements (6,113 ) (5,987 ) Permits and airspace (23,841 ) (21,531 ) Distributor relations and other (606 ) (606 ) Total accumulated amortization (143,181 ) (132,854 ) Trade names, not subject to amortization 72,290 72,183 Total intangibles, net $ 529,579 $ 539,211 |
Summary of Estimated Charges to Amortization Expense of Intangible Assets | Estimated charges to amortization expense of intangible assets over the next five years, is as follows (in thousands) : April 1, 2016 through Dec. 31, 2017 $ 30,606 2018 39,420 2019 38,130 2020 37,644 2021 37,341 $ 183,141 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule Debt Issuance Costs | The following table summarizes debt issuance costs at March 31, 2017 and December 31, 2016, and the balance sheet classification in each of the periods presents ( in thousands ): March 31, 2017 December 31, 2016 Deferred debt issuance costs $ 20,122 $ 18,960 Accumulated amortization (7,180 ) (6,248 ) Deferred debt issuance costs, less accumulated amortization $ 12,942 $ 12,712 Balance Sheet classification: Other non-current assets $ 4,219 $ 4,698 Long-term debt 8,723 8,014 $ 12,942 $ 12,712 |
Summary of Debt Holdings | he following table provides the Company’s debt holdings at March 31, 2017 and December 31, 2016 (in thousands) : March 31, 2017 December 31, 2016 Revolving Credit Facility $ — $ 4,400 Term Loan 564,236 565,658 Original issue discount (4,292 ) (4,706 ) Debt issuance costs - term loan (8,723 ) (8,015 ) Total debt $ 551,221 $ 557,337 Less: Current portion, term loan facilities (5,685 ) (5,685 ) Long term debt $ 545,536 $ 551,652 Net availability under the 2014 Revolving Credit Facility was approximately $546.1 million at March 31, 2017 . Letters of credit outstanding at March 31, 2017 totaled approximately $3.9 million . At March 31, 2017 , the Company was in compliance with all covenants as defined in the 2014 Credit Facility. |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position | The following table reflects the classification of the Company's interest rate swap on the consolidated balance sheets at March 31, 2017 and December 31, 2016 ( in thousands ): March 31, 2017 December 31, 2016 Other current liabilities $ 3,568 $ 4,010 Other noncurrent liabilities 5,834 6,709 Total fair value $ 9,402 $ 10,719 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Carried at Fair Value Measured on Recurring Basis | The following table provides the assets and liabilities carried at fair value measured on a recurring basis at March 31, 2017 and December 31, 2016 ( in thousands ): Fair Value Measurements at March 31, 2017 Carrying Value Level 1 Level 2 Level 3 Liabilities: Put option of noncontrolling shareholders (1) $ (180 ) $ — $ — $ (180 ) Contingent consideration - acquisitions (2) (4,830 ) — — (4,830 ) Interest rate swap (9,402 ) — (9,402 ) — Total recorded at fair value $ (14,412 ) $ — $ (9,402 ) $ (5,010 ) (1) Represents put option issued to noncontrolling shareholders in connection with the 5.11 Tactical and Liberty acquisitions. (2) Represents potential earn-outs payable by Sterno Products for the acquisition of NII and Ergobaby in connection with their acquisition of Baby Tula. Fair Value Measurements at December 31, 2016 Carrying Value Level 1 Level 2 Level 3 Assets: Equity method investment - FOX $ 141,767 $ 141,767 $ — $ — Liabilities: Put option of noncontrolling shareholders (180 ) — — (180 ) Contingent consideration (4,830 ) — — (4,830 ) Interest rate swap (10,719 ) — (10,719 ) — Total recorded at fair value $ 126,038 $ 141,767 $ (10,719 ) $ (5,010 ) |
Reconciliations of Change in Carrying Value of Level 3 Fair Value Measurements | Reconciliations of the change in the carrying value of the Level 3 fair value measurements from January 1st through March 31st in 2017 and 2016 are as follows ( in thousands ): 2017 2016 Balance at January 1st $ (5,010 ) $ (50 ) Contingent consideration - acquisition — (1,500 ) Balance at March 31st $ (5,010 ) $ (1,550 ) |
Fair Value Measurements, Nonrecurring | The following table provides the assets carried at fair value measured on a non-recurring basis as of March 31, 2017 and December 31, 2016. Fair Value Measurements at March 31, 2017 Three months ended (in thousands) Carrying Level 1 Level 2 Level 3 Expense Goodwill (1) 26,903 — — 26,903 8,864 (1) Represents the fair value of the goodwill of the Arnold business segment. Refer to Note H "Goodwill and Other Intangible Assets" for further discussion regarding the impairment and valuation techniques applied. Fair Value Measurements at December 31, 2016 Year ended (in thousands) Carrying Level 1 Level 2 Level 3 Expense Goodwill 35,767 — — 35,767 16,000 Property, Plant and Equipment (1) — — — — 1,824 Tradename (1) — — — — 317 Technology (1) — — — — 3,460 Customer relationships (1) — — — — 2,426 Permits (1) — — — — 1,177 (1) Represents the fair value of the respective assets of the Orbitbaby product line of Ergobaby and the Clean Earth Williamsport site, both of which were disposed of during 2016. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Summary of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share for the three months ended March 31, 2017 and 2016 attributable to Holdings is calculated as follows: Three months ended March 31, 2017 2016 Loss from continuing operations attributable to Holdings $ (21,945 ) $ (15,751 ) Less: Profit Allocation paid to Holdings 13,354 — Less: Effect of contribution based profit - Holding Event 1,258 850 Loss from continuing operation attributable to Trust shares $ (36,557 ) $ (16,601 ) Income (loss) from discontinued operations attributable to Holdings $ 340 $ (272 ) Less: Effect of contribution based profit — — Income (loss) from discontinued operations attributable to Trust shares $ 340 $ (272 ) Basic and diluted weighted average shares outstanding 59,900 54,300 Basic and fully diluted income (loss) per share attributable to Holdings Continuing operations $ (0.61 ) $ (0.31 ) Discontinued operations 0.01 — $ (0.60 ) $ (0.31 ) |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Guarantees [Abstract] | |
Change in Carrying Value of Company's Warranty Liability | A reconciliation of the change in the carrying value of the Company’s warranty liability for the three months ended March 31, 2017 and the year ended December 31, 2016 is as follows ( in thousands ): Three months ended March 31, 2017 Year ended Warranty liability: Beginning balance $ 1,258 $ 1,259 Accrual 45 252 Warranty payments (42 ) (253 ) Ending balance $ 1,261 $ 1,258 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Company's Ownership Percentage of its Majority Owned Operating Segments and Related Noncontrolling Interest | The following tables reflect the Company’s ownership percentage of its majority owned operating segments and related noncontrolling interest balances as of March 31, 2017 and December 31, 2016: % Ownership (1) March 31, 2017 % Ownership (1) December 31, 2016 Primary Fully Diluted Primary Fully Diluted 5.11 Tactical 97.5 85.1 97.5 85.1 Ergobaby 83.5 77.3 83.5 76.9 Liberty 88.6 84.7 88.6 84.7 Manitoba Harvest 76.6 65.1 76.6 65.6 ACI 69.4 69.3 69.4 69.3 Arnold Magnetics 96.7 84.7 96.7 84.7 Clean Earth 97.5 79.8 97.5 79.8 Sterno Products 100.0 89.5 100.0 89.5 (1) The principal difference between primary and diluted percentages of our operating segments is due to stock option issuances of operating segment stock to management of the respective businesses. Noncontrolling Interest Balances (in thousands) March 31, 2017 December 31, 2016 5.11 Tactical 6,336 5,934 Ergobaby 19,063 18,647 Liberty 2,783 2,681 Manitoba Harvest 13,640 13,687 ACI (10,333 ) (11,220 ) Arnold Magnetics 1,235 1,536 Clean Earth 5,797 5,469 Sterno Products 1,490 1,305 Allocation Interests 100 100 $ 40,111 $ 38,139 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Reconciliation Between Federal Statutory Rate and Effective Income Tax Rate | The reconciliation between the Federal Statutory Rate and the effective income tax rate for the three months ended March 31, 2017 and 2016 are as follows: Three months ended March 31, 2017 2016 United States Federal Statutory Rate (35.0 )% (35.0 )% State income taxes (net of Federal benefits) (2.0 ) 1.7 Foreign income taxes 4.4 7.9 Expenses of Compass Group Diversified Holdings, LLC representing a pass through to shareholders (1) 1.0 21.7 Impairment expense 12.7 — Effect of loss on equity method investment (2) 7.8 32.9 Impact of subsidiary employee stock options 0.4 1.1 Domestic production activities deduction (0.7 ) (2.3 ) Effect of undistributed foreign earnings 0.7 — Non-recognition of NOL carryforwards at subsidiaries (2.7 ) (0.6 ) Other (1.1 ) 1.6 Effective income tax rate (14.5 )% 29.0 % |
Defined Benefit Plan (Tables)
Defined Benefit Plan (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Net Periodic Benefit Cost | Net periodic benefit cost consists of the following for the three months ended March 31, 2017 and 2016 (in thousands ): Three months ended March 31, 2017 2016 Service cost $ 131 $ 109 Interest cost 23 34 Expected return on plan assets 23 5 Net periodic benefit cost $ 177 $ 148 |
Organization and Business Ope40
Organization and Business Operations - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Sole owner of Trust interest of the company | 100.00% |
Number of businesses/operating segments owned | 8 |
Presentation and Principles o41
Presentation and Principles of Consolidation - Deconsolidation of Fox (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Class of Stock [Line Items] | ||
Less: Net income attributable to noncontrolling interest | $ 470 | $ 1,137 |
Presentation and Principles o42
Presentation and Principles of Consolidation - Recent Accounting Pronouncements (Details) - Adjustments for New Accounting Pronouncement - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification from noncurrent deferred tax asset | $ 6.1 | ||
Term Loan Facility | Long-term Liabilities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification of debt issuance costs, asset (liability) | $ (4.4) | $ (4.6) | |
Revolving Credit Facility | Long-term Liabilities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification of debt issuance costs, asset (liability) | $ (4.5) | $ (4.9) |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) ft² in Thousands, $ in Thousands, CAD in Millions | Aug. 31, 2016USD ($) | May 11, 2016USD ($) | Jan. 22, 2016CAD | Jan. 22, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Jun. 01, 2016USD ($) | Apr. 15, 2016USD ($)ft² | Jan. 01, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 489,877 | $ 491,637 | $ 491,637 | |||||||
Acquisitions, net of cash acquired | (6,721) | $ (35,553) | ||||||||
5.11 Tactical | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets, Amount | $ 127,890 | |||||||||
Equity interest acquired (as a percentage) | 97.50% | |||||||||
Purchase price, net | $ 408,222 | |||||||||
Integration service fees payable | 3,500 | |||||||||
Gross receivables | 40,100 | |||||||||
Allowance for doubtful accounts | 1,700 | |||||||||
Property, plant, and equipment basis Step-up | 7,600 | |||||||||
Goodwill | 92,966 | |||||||||
Intercompany loans to business and debt assumed | 179,237 | |||||||||
Inventory basis step-up | 39,100 | |||||||||
Acquisition related costs | 2,063 | |||||||||
Working capital adjustment | 2,296 | |||||||||
Cash consideration paid related to working capital adjustments | 400,000 | |||||||||
Acquisitions, net of cash acquired | (410,285) | |||||||||
Intangible assets | 127,890 | |||||||||
Inventory | $ 160,304 | |||||||||
Northern International, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill acquired | 6,722 | |||||||||
Ergobaby | New Baby Tula, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price, net | $ 73,800 | |||||||||
Transaction costs | 800 | |||||||||
Consideration transferred, liabilities incurred | 68,200 | |||||||||
Consideration transferred, equity interests issued | 8,200 | |||||||||
Clean Earth | Phoenix Soil, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 3,200 | |||||||||
Area of thermal desorption facility | ft² | 58 | |||||||||
Intangible assets | $ 5,600 | |||||||||
Sterno Products | Northern International, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 6,000 | |||||||||
Total consideration | CAD 50.6 | 35,800 | ||||||||
Intercompany loans | 37,000 | |||||||||
Intangible assets | 12,700 | |||||||||
Inventory | 1,200 | |||||||||
Non- Controlling Interest | 5.11 Tactical | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity interest acquired (as a percentage) | 2.50% | |||||||||
Earn-Out | Ergobaby | New Baby Tula, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contingent consideration | 8,200 | |||||||||
Earn-Out | Sterno Products | Northern International, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contingent consideration | 1,500 | |||||||||
Acquisition related costs | $ 400 | |||||||||
Potential earn-out payable, period | 2 years | 2 years | ||||||||
Consideration transferred, liabilities incurred | CAD 2.5 | $ 1,800 | ||||||||
Trade name | 5.11 Tactical | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets, Amount | $ 48,665 | |||||||||
Estimated Useful Life | 15 years | |||||||||
Customer relationships | 5.11 Tactical | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets, Amount | $ 75,218 | |||||||||
Estimated Useful Life | 15 years | |||||||||
Technology | 5.11 Tactical | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets, Amount | $ 4,007 | |||||||||
Estimated Useful Life | 10 years | |||||||||
Clean Earth | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 124,946 | 118,224 | ||||||||
Clean Earth | EWS Alabama, Inc | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 3,600 | |||||||||
Intangible assets | $ 12,100 | |||||||||
Clean Earth | Northern International, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill acquired | 6,722 | |||||||||
Ergobaby | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 61,028 | $ 61,031 | ||||||||
Ergobaby | Baby Tula, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill acquired | 13,200 | |||||||||
Inventory basis step-up | 4,800 | |||||||||
Fair value of earn-out provision | 3,800 | |||||||||
Intangible assets | 55,300 | |||||||||
Ergobaby | Trade name | Baby Tula, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | 52,900 | |||||||||
Ergobaby | Noncompete Agreements | Baby Tula, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | 1,700 | |||||||||
Ergobaby | Customer relationships | Baby Tula, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | $ 700 |
Acquisition - Schedule of Asset
Acquisition - Schedule of Assets Acquired and Liabilities Assumed as of the Acquisition Date (Detail) - USD ($) $ in Thousands | Aug. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Jan. 22, 2016 | Jan. 01, 2016 |
Assets: | ||||||
Goodwill | $ 489,877 | $ 491,637 | $ 491,637 | |||
Acquisition Consideration | ||||||
Acquisitions, net of cash acquired | $ 6,721 | $ 35,553 | ||||
5.11 Tactical | ||||||
Assets: | ||||||
Cash | $ 12,581 | |||||
Accounts receivable, net | 38,323 | |||||
Inventory | 160,304 | |||||
Property, plant and equipment | 22,723 | |||||
Intangible assets | 127,890 | |||||
Goodwill | 92,966 | |||||
Other current and noncurrent assets | 4,884 | |||||
Total assets | 459,671 | |||||
Liabilities and noncontrolling interest: | ||||||
Current liabilities | 38,229 | |||||
Other liabilities | 180,231 | |||||
Deferred tax liabilities | 10,163 | |||||
Noncontrolling interest | 5,568 | |||||
Total liabilities and noncontrolling interest | 234,191 | |||||
Net assets acquired | 225,480 | |||||
Noncontrolling interest | 5,568 | |||||
Intercompany loans to business | 179,237 | |||||
Total assets, liabilities, noncontrolling interest, and intercompany loans acquired | 410,285 | |||||
Acquisition Consideration | ||||||
Purchase price | 400,000 | |||||
Working capital adjustment | (2,296) | |||||
Cash | 12,581 | |||||
Acquisitions, net of cash acquired | 410,285 | |||||
Less: Transaction costs | 2,063 | |||||
Purchase price, net | $ 408,222 | |||||
Sterno Products | Northern International, Inc. | ||||||
Assets: | ||||||
Inventory | $ 1,200 | |||||
Intangible assets | 12,700 | |||||
Goodwill | $ 6,000 |
Acquisition - Schedule of Intan
Acquisition - Schedule of Intangible Assets Recorded as Part of Acquisition (Detail) - 5.11 Tactical $ in Thousands | Aug. 31, 2016USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 127,890 |
Trade name | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 48,665 |
Estimated Useful Life | 15 years |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 75,218 |
Estimated Useful Life | 15 years |
Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 4,007 |
Estimated Useful Life | 10 years |
Acquisition - Pro Forma Informa
Acquisition - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net loss attributable to Holdings | $ (21,605) | $ (16,023) |
5.11 Tactical | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net sales | 261,265 | |
Gross profit | 94,216 | |
Operating income | 6,769 | |
Net loss | (19,236) | |
Net loss attributable to Holdings | $ (20,343) | |
Basic net income per share attributable to Holdings | $ (0.39) |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | Sep. 21, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of discontinued operations, net of income tax | $ 340 | $ 0 | ||
Gain on sale of discontinued operations, net of income tax | $ 340 | $ 0 | ||
Tridien | Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from divestiture of businesses | $ 25,000 | |||
Proceeds from divestiture of businesses, portion attributable to parent | 23,000 | |||
Gain on sale of discontinued operations, net of income tax | $ (1,700) | |||
Proceeds reserved for future claims | $ 1,600 |
Discontinued Operations - Summa
Discontinued Operations - Summarized Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income from discontinued operations | $ 0 | $ (413) |
Tridien | Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net sales | 14,760 | |
Gross profit | 2,142 | |
Operating income (loss) | (577) | |
Income (loss) from continuing operations before income taxes | 413 | |
Provision for income taxes | 0 | |
Income from discontinued operations | 413 | |
Intercompany interest expense excluded from income (loss) from discontinued operations | $ 300 |
Operating Segment Data - Additi
Operating Segment Data - Additional Information (Detail) retail_store in Thousands, ft² in Thousands, Clients in Thousands | 3 Months Ended |
Mar. 31, 2017ft²retail_storeSegmentClientsFacility | |
Segment Reporting Information [Line Items] | |
Number of reportable operating segments | Segment | 8 |
Liberty | |
Segment Reporting Information [Line Items] | |
Manufacturing facility area (in square feet) | ft² | 300 |
Manitoba Harvest | |
Segment Reporting Information [Line Items] | |
Number of stores | retail_store | 13 |
Arnold Magnetics | Minimum | |
Segment Reporting Information [Line Items] | |
Number of clients | Clients | 2 |
Clean Earth | |
Segment Reporting Information [Line Items] | |
Number of facilities | Facility | 18 |
Outside of the United States | Ergobaby | |
Segment Reporting Information [Line Items] | |
Concentration risk, percentage | 57.00% |
Operating Segment Data - Summar
Operating Segment Data - Summary of Net Sales of Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated revenues | $ 242,716 | $ 155,001 |
Total consolidated revenues | 289,992 | 193,287 |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated revenues | 289,992 | 193,287 |
Operating Segments | 5.11 Tactical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated revenues | 78,513 | 0 |
Operating Segments | Ergobaby | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated revenues | 22,613 | 19,415 |
Operating Segments | Liberty | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated revenues | 27,978 | 29,000 |
Operating Segments | Manitoba Harvest | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated revenues | 13,128 | 13,717 |
Operating Segments | ACI | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated revenues | 21,460 | 21,517 |
Operating Segments | Arnold Magnetics | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated revenues | 26,496 | 27,383 |
Operating Segments | Clean Earth | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated revenues | 47,276 | 38,286 |
Operating Segments | Sterno Products | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated revenues | 52,528 | 43,969 |
Reconciliation of Segment to Consolidated | Corporate and Other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated revenues | $ 0 | $ 0 |
Operating Segment Data - Summ51
Operating Segment Data - Summary of Profit (Loss) of Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated income (loss) from continuing operations before income taxes | $ (25,123) | $ (11,318) |
Other income (expense), net | (22) | 3,256 |
Loss on equity method investment | (5,620) | (10,623) |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated income (loss) from continuing operations before income taxes | (1,133) | 17,206 |
Operating Segments | 5.11 Tactical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated income (loss) from continuing operations before income taxes | (9,485) | 0 |
Operating Segments | Ergobaby | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated income (loss) from continuing operations before income taxes | 5,200 | 4,090 |
Operating Segments | Liberty | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated income (loss) from continuing operations before income taxes | 2,480 | 4,841 |
Operating Segments | Manitoba Harvest | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated income (loss) from continuing operations before income taxes | 223 | 363 |
Operating Segments | ACI | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated income (loss) from continuing operations before income taxes | 5,640 | 5,832 |
Operating Segments | Arnold Magnetics | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated income (loss) from continuing operations before income taxes | (8,397) | 626 |
Operating Segments | Clean Earth | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated income (loss) from continuing operations before income taxes | (446) | (958) |
Operating Segments | Sterno Products | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated income (loss) from continuing operations before income taxes | 3,652 | 2,412 |
Reconciliation of Segment to Consolidated | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Interest expense, net | (7,136) | (11,462) |
Other income (expense), net | (22) | 3,256 |
Loss on equity method investment | (5,620) | (10,623) |
Reconciliation of Segment to Consolidated | Corporate and Other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total consolidated income (loss) from continuing operations before income taxes | $ (11,212) | $ (9,695) |
Operating Segment Data - Summ52
Operating Segment Data - Summary of Goodwill and Identifiable Assets of Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Allowance for Doubtful Accounts Receivable | $ (8,122) | $ (5,511) | ||||
Identifiable Assets | [1] | 1,023,745 | 1,104,327 | |||
Depreciation and Amortization Expense | 32,594 | $ 15,027 | ||||
Operating Segments | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Accounts Receivable, Net | 172,885 | 181,191 | ||||
Identifiable Assets | [1] | 937,668 | 958,356 | |||
Depreciation and Amortization Expense | 31,395 | 14,289 | ||||
Operating Segments | 5.11 Tactical | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Accounts Receivable, Gross | 46,707 | 49,653 | ||||
Identifiable Assets | [1] | 294,159 | 311,560 | |||
Depreciation and Amortization Expense | 17,532 | 0 | ||||
Operating Segments | Ergobaby | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Accounts Receivable, Gross | 9,359 | 11,018 | ||||
Identifiable Assets | [1] | 113,559 | 113,814 | |||
Depreciation and Amortization Expense | 653 | 835 | ||||
Operating Segments | Liberty | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Accounts Receivable, Gross | 14,941 | 13,077 | ||||
Identifiable Assets | 26,399 | 26,344 | [1] | |||
Depreciation and Amortization Expense | 599 | 656 | ||||
Operating Segments | Manitoba Harvest | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Accounts Receivable, Gross | 5,568 | 6,468 | ||||
Identifiable Assets | 96,164 | 97,977 | [1] | |||
Depreciation and Amortization Expense | 1,510 | 1,314 | ||||
Operating Segments | ACI | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Accounts Receivable, Gross | 6,598 | [1] | 6,686 | |||
Identifiable Assets | [1] | 16,404 | 16,541 | |||
Depreciation and Amortization Expense | 873 | 841 | ||||
Operating Segments | Arnold Magnetics | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Accounts Receivable, Gross | 15,145 | [1] | 15,195 | |||
Identifiable Assets | [1] | 65,490 | 64,209 | |||
Depreciation and Amortization Expense | 2,045 | 2,237 | ||||
Operating Segments | Clean Earth | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Accounts Receivable, Gross | 46,142 | [1] | 45,619 | |||
Identifiable Assets | 189,979 | [1] | 193,250 | |||
Depreciation and Amortization Expense | 5,227 | 4,955 | ||||
Operating Segments | Sterno Products | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Accounts Receivable, Gross | 36,547 | 38,986 | ||||
Identifiable Assets | 135,514 | 134,661 | [1] | |||
Depreciation and Amortization Expense | 2,956 | 3,451 | ||||
Reconciliation of Segment to Consolidated | Amortization Of Debt Issuance Costs And Original Issue Discount | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Depreciation and Amortization Expense | 1,199 | 738 | ||||
Reconciliation of Segment to Consolidated | Corporate and Other | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Identifiable Assets | [1] | 86,077 | $ 145,971 | |||
Depreciation and Amortization Expense | $ 0 | $ 0 | ||||
[1] | Does not include accounts receivable balances per schedule above or goodwill balances - refer to Note H - "Goodwill and Other Intangible Assets". |
Operating Segment Data - Revenu
Operating Segment Data - Revenues from Geographic Locations Outside Domestic Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | $ 242,716 | $ 155,001 |
Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | 289,992 | 193,287 |
Operating Segments | 5.11 Tactical | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | 78,513 | 0 |
Operating Segments | Ergobaby | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | 22,613 | 19,415 |
Operating Segments | Manitoba Harvest | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | 13,128 | 13,717 |
Operating Segments | Arnold Magnetics | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | 26,496 | 27,383 |
Operating Segments | Sterno Products | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | 52,528 | 43,969 |
Operating Segments | Non United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | 55,664 | 32,498 |
Operating Segments | Non United States | 5.11 Tactical | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | 25,266 | 0 |
Operating Segments | Non United States | Ergobaby | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | 12,814 | 10,377 |
Operating Segments | Non United States | Manitoba Harvest | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | 5,895 | 6,130 |
Operating Segments | Non United States | Arnold Magnetics | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | 11,055 | 10,799 |
Operating Segments | Non United States | Sterno Products | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
International revenues | $ 634 | $ 5,192 |
Investment in Fox (Details)
Investment in Fox (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||||||
Nov. 30, 2016 | Aug. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jan. 01, 2017 | Dec. 31, 2016 | Oct. 31, 2016 | Feb. 29, 2016 | |
Subsidiary, Sale of Stock [Line Items] | |||||||||
Net proceeds from sale of equity investment | $ 136,147 | $ 47,685 | |||||||
Equity method investment | 0 | $ 141,767 | |||||||
FOX | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Non-controlling interest | 23.00% | 33.10% | 33.10% | 14.00% | 41.20% | ||||
Treasury stock acquired (shares) | 3,000,000 | ||||||||
Net proceeds from sale of equity investment | $ 47,700 | ||||||||
Proceeds to parent from shares sold to subsidiary | $ 71,800 | $ 136,147 | |||||||
Ownership percentage by noncontrolling owners | 14.00% | 23.00% | |||||||
Secondary Offering | FOX | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Equity method investment, amount of shares sold (shares) | 3,500,000 | 2,500,000 | 5,108,718 | ||||||
Net proceeds from sale of equity investment | $ 63,000 | ||||||||
Number of shares available in second offering (shares) | 4,025,000 | ||||||||
Subsidiary stock issued during period shares new issues (shares) | 3,500,000 | ||||||||
Direct Offering | FOX | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Treasury stock acquired (shares) | 500,000 |
Property, Plant and Equipment55
Property, Plant and Equipment and Inventory - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 236,102 | $ 227,184 |
Construction in process | 12,592 | 8,308 |
Less: accumulated depreciation | (92,930) | (84,814) |
Total | 143,172 | 142,370 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 151,876 | 155,591 |
Furniture, fixtures and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 20,876 | 13,737 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 15,207 | 14,156 |
Buildings and land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 35,551 | $ 35,392 |
Property, Plant and Equipment56
Property, Plant and Equipment and Inventory - Summary of Inventory (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 8,046 | $ 5,668 | |
Raw materials and supplies | 30,404 | $ 29,708 | |
Work-in-process | 9,570 | 8,281 | |
Finished goods | 176,669 | 182,886 | |
Less: obsolescence reserve | (8,317) | (7,891) | |
Total | $ 208,326 | $ 212,984 |
Goodwill and Other Intangible57
Goodwill and Other Intangible Assets - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)Reporting_Unit | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill, estimated impairment loss | $ 24,864 | $ 16,000 | |
Impairment expense | 8,864 | $ 0 | |
Amortization expense | $ 10,310 | $ 7,380 | |
Arnold | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Number of reporting units at Arnold Subsidiary | Reporting_Unit | 3 | ||
Number of reporting unit identified as requiring further quantitative testing | Reporting_Unit | 3 | ||
Impairment expense | $ 8,864 | ||
Manitoba Harvest | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Impairment assessment assumptions weighted average cost of capital | 12.00% | ||
Excess of fair value from carrying value of goodwill | 15.00% | ||
PMAG | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Impairment assessment assumptions weighted average cost of capital | 12.50% | ||
Goodwill, estimated impairment loss | $ 24,900 | $ 16,000 | |
Impairment expense | $ 8,900 | ||
Flexmag | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Impairment assessment assumptions weighted average cost of capital | 12.00% | ||
Precision Thin Metals | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Impairment assessment assumptions weighted average cost of capital | 13.00% | ||
Minimum | PMAG | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill, estimated impairment loss | $ 14,000 | ||
Maximum | PMAG | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill, estimated impairment loss | $ 19,000 |
Goodwill and Other Intangible58
Goodwill and Other Intangible Assets - Summary of Reconciliation of Change in Carrying Value of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 | |
Goodwill [Line Items] | |||||
Goodwill - gross carrying amount | $ 514,741 | $ 507,637 | |||
Accumulated impairment losses | (24,864) | (16,000) | |||
Goodwill - net carrying amount | $ 491,637 | 489,877 | $ 491,637 | $ 491,637 | |
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 489,877 | ||||
Impairment expense | (8,864) | $ 0 | |||
Foreign currency translation | 382 | ||||
Balance as of March 31, 2017 | 491,637 | ||||
Corporate Segment | |||||
Goodwill [Line Items] | |||||
Goodwill - net carrying amount | 8,649 | 8,649 | 8,649 | ||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 8,649 | ||||
5.11 Tactical | |||||
Goodwill [Line Items] | |||||
Goodwill - net carrying amount | 92,966 | 92,966 | 92,966 | ||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 92,966 | ||||
Ergobaby | |||||
Goodwill [Line Items] | |||||
Goodwill - net carrying amount | 61,028 | 61,028 | 61,031 | ||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 61,028 | ||||
Foreign currency translation | (3) | ||||
Liberty | |||||
Goodwill [Line Items] | |||||
Goodwill - net carrying amount | 32,828 | 32,828 | 32,828 | ||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 32,828 | ||||
Manitoba Harvest | |||||
Goodwill [Line Items] | |||||
Goodwill - net carrying amount | 44,556 | 44,556 | 44,171 | ||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 44,556 | ||||
Foreign currency translation | 385 | ||||
ACI | |||||
Goodwill [Line Items] | |||||
Goodwill - net carrying amount | 58,019 | 58,019 | 58,019 | ||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 58,019 | ||||
Arnold | |||||
Goodwill [Line Items] | |||||
Goodwill - net carrying amount | 26,903 | 26,903 | 35,767 | ||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 26,903 | ||||
Impairment expense | (8,864) | ||||
Clean Earth | |||||
Goodwill [Line Items] | |||||
Goodwill - net carrying amount | 124,946 | 124,946 | 118,224 | ||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 124,946 | ||||
Sterno Products | |||||
Goodwill [Line Items] | |||||
Goodwill - net carrying amount | 39,982 | 39,982 | $ 39,982 | ||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 39,982 | ||||
PMAG | |||||
Goodwill [Line Items] | |||||
Goodwill - net carrying amount | 15,600 | 15,600 | |||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 15,600 | ||||
Flexmag | |||||
Goodwill [Line Items] | |||||
Goodwill - net carrying amount | 4,800 | 4,800 | |||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 4,800 | ||||
Precision Thin Metals | |||||
Goodwill [Line Items] | |||||
Goodwill - net carrying amount | 6,500 | $ 6,500 | |||
Goodwill [Roll Forward] | |||||
Balance as of January 1, 2017 | 6,500 | ||||
Northern International, Inc. | |||||
Goodwill [Roll Forward] | |||||
Acquisitions | 6,722 | ||||
Northern International, Inc. | Clean Earth | |||||
Goodwill [Roll Forward] | |||||
Acquisitions | $ 6,722 |
Goodwill and Other Intangible59
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | $ 600,470 | $ 599,882 |
Total accumulated amortization | (143,181) | (132,854) |
Trade names, not subject to amortization | 72,290 | 72,183 |
Total intangibles, net | 529,579 | 539,211 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | 305,151 | 304,751 |
Total accumulated amortization | $ (84,776) | (79,607) |
Weighted average useful lives | 13 years | |
Technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | $ 44,850 | 44,710 |
Total accumulated amortization | $ (19,451) | (18,290) |
Weighted average useful lives | 9 years | |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | $ 128,697 | 128,675 |
Total accumulated amortization | $ (8,394) | (6,833) |
Weighted average useful lives | 13 years | |
Licensing and non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | $ 7,845 | 7,845 |
Total accumulated amortization | $ (6,113) | (5,987) |
Weighted average useful lives | 4 years | |
Permits and Airspace | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | $ 113,321 | 113,295 |
Total accumulated amortization | $ (23,841) | (21,531) |
Weighted average useful lives | 13 years | |
Distributor relations and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | $ 606 | 606 |
Total accumulated amortization | $ (606) | $ (606) |
Weighted average useful lives | 5 years |
Goodwill and Other Intangible60
Goodwill and Other Intangible Assets - Summary of Estimated Charges to Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 10,310 | $ 7,380 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
April 1, 2016 through Dec. 31, 2017 | 30,606 | |
2,018 | 39,420 | |
2,019 | 38,130 | |
2,020 | 37,644 | |
2,021 | 37,341 | |
Total amortization expense | $ 183,141 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Aug. 31, 2016 | Jun. 06, 2014 | Mar. 31, 2017 | Mar. 31, 2014 | Dec. 31, 2016 | Aug. 15, 2016 |
Debt Instrument [Line Items] | ||||||
Credit facility obtained, maximum borrowing capacity | $ 546,100,000 | |||||
FOX Credit Facility | Prime Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
FOX Credit Facility | Prime Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
2014 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance cost | $ 6,000,000 | |||||
2014 Credit Agreement | Revolving Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Unused fee percentage | 0.45% | |||||
2014 Credit Agreement | Revolving Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Unused fee percentage | 0.60% | |||||
2014 Credit Agreement | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
2014 Credit Agreement | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.75% | |||||
2014 Credit Agreement | Revolving Credit Facility | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
2014 Credit Agreement | Revolving Credit Facility | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
2014 Credit Agreement | Revolving Credit Facility | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
2014 Credit Agreement | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility obtained | $ 100,000,000 | |||||
2014 Credit Agreement | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility obtained | 25,000,000 | |||||
2014 Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility obtained, maximum borrowing capacity | 550,000,000 | $ 400,000,000 | ||||
Increase in borrowing capacity | 150,000,000 | |||||
2016 Incremental Term Loan | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Increase in borrowing capacity | $ 250,000,000 | |||||
Credit facility obtained | $ 250,000,000 | |||||
2014 Term Loan | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility obtained | $ 325,000,000 | |||||
Frequency of payments | quarterly | |||||
Original issue discount | 99.25% | 99.50% | ||||
Debt issuance cost | $ 1,200,000 | |||||
Capitalized debt issuance costs | $ 6,000,000 | |||||
Increase to quarterly payments | $ 1,400,000 | |||||
2014 Term Loan | Term Loan | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3.25% | 2.75% | ||||
2014 Term Loan | Term Loan | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% | 1.75% | ||||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Letter of credit outstanding | $ 3,900,000 |
Debt-Issuance Costs (Details)
Debt-Issuance Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Deferred debt issuance costs | $ 20,122 | $ 18,960 |
Accumulated amortization | (7,180) | (6,248) |
Deferred debt issuance costs, less accumulated amortization | 12,942 | 12,712 |
Other non-current assets | ||
Debt Instrument [Line Items] | ||
Deferred debt issuance costs, less accumulated amortization | 4,219 | 4,698 |
Long-term Liabilities | ||
Debt Instrument [Line Items] | ||
Deferred debt issuance costs, less accumulated amortization | $ 8,723 | $ 8,014 |
Debt - Summary of Debt Holdings
Debt - Summary of Debt Holdings (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 551,221 | $ 557,337 |
Original issue discount | (4,292) | (4,706) |
Debt issuance costs - term loan | (12,942) | (12,712) |
Current portion, long-term debt | (5,685) | (5,685) |
Long term debt | 545,536 | 551,652 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 4,400 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 564,236 | 565,658 |
Debt issuance costs - term loan | (8,723) | (8,015) |
Current portion, long-term debt | $ (5,685) | $ (5,685) |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 16, 2014 | Mar. 31, 2017 | Dec. 31, 2016 |
New Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | $ 220,000 | ||
Interest rate on notional amount | 2.97% | ||
Interest rate swap agreement with bank, agreement period | 3 months | ||
Level 2 | Fair Value | Fair Value, Measurements, Recurring | |||
Derivative [Line Items] | |||
Fair value loss | $ (9,402) | $ (10,719) |
Derivative Instruments and He65
Derivative Instruments and Hedging Activities-By Balance Sheet Location (Details) - Interest Rate Swap - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Total fair value | $ 9,402 | $ 10,719 |
Other current liabilities | ||
Derivative [Line Items] | ||
Total fair value | 3,568 | 4,010 |
Other noncurrent liabilities | ||
Derivative [Line Items] | ||
Total fair value | $ 5,834 | $ 6,709 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | ||
Liabilities: | ||||||
Total recorded at fair value | $ (5,010) | $ (5,010) | $ (1,550) | $ (50) | ||
Fair Value, Measurements, Recurring | Carrying Value | ||||||
Assets: | ||||||
Interest rate cap | 141,767 | |||||
Liabilities: | ||||||
Put option of noncontrolling shareholders | (180) | (180) | ||||
Contingent consideration | (4,830) | [1] | (4,830) | |||
Total recorded at fair value | (14,412) | 126,038 | ||||
Fair Value, Measurements, Recurring | Level 1 | Fair Value | ||||||
Assets: | ||||||
Interest rate cap | 141,767 | |||||
Liabilities: | ||||||
Put option of noncontrolling shareholders | 0 | 0 | ||||
Contingent consideration | [1] | 0 | ||||
Interest rate swap | 0 | 0 | ||||
Total recorded at fair value | 0 | 141,767 | ||||
Fair Value, Measurements, Recurring | Level 2 | Fair Value | ||||||
Assets: | ||||||
Interest rate cap | 0 | |||||
Liabilities: | ||||||
Put option of noncontrolling shareholders | 0 | 0 | ||||
Contingent consideration | [1] | 0 | ||||
Interest rate swap | (9,402) | (10,719) | ||||
Total recorded at fair value | (9,402) | (10,719) | ||||
Fair Value, Measurements, Recurring | Level 3 | Fair Value | ||||||
Assets: | ||||||
Interest rate cap | 0 | |||||
Liabilities: | ||||||
Put option of noncontrolling shareholders | (180) | (180) | ||||
Contingent consideration | (4,830) | [1] | (4,830) | |||
Interest rate swap | 0 | 0 | ||||
Total recorded at fair value | (5,010) | (5,010) | ||||
New Interest Rate Swap | Fair Value, Measurements, Recurring | Carrying Value | ||||||
Liabilities: | ||||||
Interest rate swap | $ (9,402) | $ (10,719) | ||||
[1] | Represents potential earn-outs payable by Sterno Products for the acquisition of NII and Ergobaby |
Fair Value Measurement - Reconc
Fair Value Measurement - Reconciliations of Change in Carrying Value of Level 3 Fair Value Measurements (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of liability, Beginning balance | $ (50) |
Fair value of liability, Ending balance | (1,550) |
Northern International, Inc. | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration - acquisition | $ (1,500) |
Fair Value Measurement - Assets
Fair Value Measurement - Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment expense | $ 8,864 | $ 0 | |
Customer relationships | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment expense | $ 2,426 | ||
Customer relationships | Carrying Value | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Customer relationships | Fair Value | Fair Value, Measurements, Nonrecurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Customer relationships | Fair Value | Fair Value, Measurements, Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Customer relationships | Fair Value | Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Permits | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment expense | 1,177 | ||
Permits | Carrying Value | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Permits | Fair Value | Fair Value, Measurements, Nonrecurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Permits | Fair Value | Fair Value, Measurements, Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Permits | Fair Value | Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Technology | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment expense | 3,460 | ||
Technology | Carrying Value | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Technology | Fair Value | Fair Value, Measurements, Nonrecurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Technology | Fair Value | Fair Value, Measurements, Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Technology | Fair Value | Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Trade name | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment expense | 317 | ||
Trade name | Carrying Value | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Trade name | Fair Value | Fair Value, Measurements, Nonrecurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Trade name | Fair Value | Fair Value, Measurements, Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Trade name | Fair Value | Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Goodwill | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment expense | 8,864 | 16,000 | |
Goodwill | Carrying Value | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 26,903 | 35,767 | |
Goodwill | Fair Value | Fair Value, Measurements, Nonrecurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | 0 | |
Goodwill | Fair Value | Fair Value, Measurements, Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | 0 | |
Goodwill | Fair Value | Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | $ 26,903 | 35,767 | |
Property, Plant and Equipment | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment expense | 1,824 | ||
Property, Plant and Equipment | Carrying Value | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Property, Plant and Equipment | Fair Value | Fair Value, Measurements, Nonrecurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Property, Plant and Equipment | Fair Value | Fair Value, Measurements, Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | ||
Property, Plant and Equipment | Fair Value | Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | $ 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ 551,221 | $ 557,337 |
Term Loan Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ 564,236 | $ 565,658 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Apr. 27, 2017 | Jan. 26, 2017 | |
Stockholders Equity [Line Items] | ||||||
Trust shares, authorized (shares) | 500,000,000 | 500,000,000 | ||||
Preferred stock, authorized (shares) | 50,000,000 | |||||
Profit allocation payment from Equity Method Investment | $ 7 | |||||
Trust shares, voting rights | One vote per share | |||||
Holding Event, anniversary since acquisition | 5 years | |||||
Distribution declared per share | $ 0.36 | |||||
Subsequent Event | ||||||
Stockholders Equity [Line Items] | ||||||
Distribution declared per share | $ 0.36 | |||||
FOX | ||||||
Stockholders Equity [Line Items] | ||||||
Profit allocation payment from Equity Method Investment | $ 25.8 | $ 13.4 | $ 8.2 | $ 8.6 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from continuing operations attributable to Holdings | $ (21,945) | $ (15,751) |
Less: Profit Allocation paid to Holdings | 13,354 | 0 |
Less: Profit Allocation paid to Holdings | 1,258 | 850 |
Less: Effect of contribution based profit - Holding Event | (36,557) | (16,601) |
Loss from discontinued operations, net of income tax | $ 0 | $ (272) |
Basic and diluted weighted average shares outstanding (shares) | 59,900 | 54,300 |
Continuing operations (usd per share) | $ (0.61) | $ (0.31) |
Discontinued operations (usd per share) | 0.01 | 0 |
Earnings Per Share, Basic and Diluted (usd per share) | $ 0 | $ 0 |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Less: Profit Allocation paid to Holdings | $ 0 | $ 0 |
Income (loss) from continuing operations before income taxes | 340 | (272) |
Loss from discontinued operations, net of income tax | $ 340 | $ (272) |
Warranties - Change in Carrying
Warranties - Change in Carrying Value of Company's Warranty Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | Aug. 31, 2016 | Mar. 31, 2016 | Feb. 29, 2016 | |
Guarantees [Abstract] | ||||||
Product Warranty Accrual, Beginning Balance | $ 1,258 | $ 1,259 | ||||
Accrual | 45 | 252 | ||||
Warranty payments | (42) | (253) | ||||
Product Warranty Accrual, Ending balance | $ 1,261 | $ 1,258 | ||||
FOX | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Non-controlling interest | 14.00% | 23.00% | 33.10% | 41.20% |
Noncontrolling Interest - Compa
Noncontrolling Interest - Company's Ownership Percentage of its Majority Owned Operating Segments and Related Noncontrolling Interest (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest | $ 40,111 | $ 38,139 | |
5.11 Tactical | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest | 6,336 | $ 5,934 | |
5.11 Tactical | % Ownership Primary | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 97.50% | |
5.11 Tactical | % Ownership Fully Diluted | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 85.10% | |
Ergobaby | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest | 19,063 | $ 18,647 | |
Ergobaby | % Ownership Primary | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 83.50% | |
Ergobaby | % Ownership Fully Diluted | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 76.90% | |
Liberty | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest | $ 2,783 | $ 2,681 | |
Liberty | % Ownership Primary | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 88.60% | 88.60% |
Liberty | % Ownership Fully Diluted | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 84.70% | 84.70% |
Manitoba Harvest | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest | $ 13,640 | $ 13,687 | |
Manitoba Harvest | % Ownership Primary | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 76.60% | 76.60% |
Manitoba Harvest | % Ownership Fully Diluted | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 65.10% | 65.60% |
ACI | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest | $ (10,333) | $ (11,220) | |
ACI | % Ownership Primary | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 69.40% | 69.40% |
ACI | % Ownership Fully Diluted | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 69.30% | 69.30% |
Arnold Magnetics | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest | $ 1,235 | $ 1,536 | |
Arnold Magnetics | % Ownership Primary | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 96.70% | 96.70% |
Arnold Magnetics | % Ownership Fully Diluted | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 84.70% | 84.70% |
Clean Earth | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest | $ 5,797 | $ 5,469 | |
Clean Earth | % Ownership Primary | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 97.50% | 97.50% |
Clean Earth | % Ownership Fully Diluted | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 79.80% | 79.80% |
Sterno Products | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest | $ 1,490 | $ 1,305 | |
Sterno Products | % Ownership Primary | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 100.00% | 100.00% |
Sterno Products | % Ownership Fully Diluted | |||
Noncontrolling Interest [Line Items] | |||
% Ownership | [1] | 89.50% | 89.50% |
Allocation Interests | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest | $ 100 | $ 100 | |
5.11 Tactical | % Ownership Primary | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | [1] | 97.50% | |
5.11 Tactical | % Ownership Fully Diluted | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | [1] | 85.10% | |
[1] | The principal difference between primary and diluted percentages of our operating segments is due to stock option issuances of operating segment stock to management of the respective businesses. |
Noncontrolling Interest Noncont
Noncontrolling Interest Noncontrolling Interest- Additional Information (Details) - USD ($) $ in Thousands | May 11, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | |||||
Cash distributions funded by debt | $ 21,564 | ||||
Distributions paid | $ 21,564 | $ 19,548 | |||
% Ownership Primary | ACI | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 69.40% | 69.40% | ||
% Ownership Primary | Liberty | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 88.60% | 88.60% | ||
% Ownership Fully Diluted | ACI | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 69.30% | 69.30% | ||
% Ownership Fully Diluted | Liberty | |||||
Noncontrolling Interest [Line Items] | |||||
% Ownership | [1] | 84.70% | 84.70% | ||
Ergobaby | % Ownership Primary | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | [1] | 83.50% | |||
Ergobaby | % Ownership Fully Diluted | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | [1] | 77.30% | |||
New Baby Tula, LLC | Ergobaby | |||||
Noncontrolling Interest [Line Items] | |||||
Consideration transferred, equity interests issued | $ 8,200 | ||||
[1] | The principal difference between primary and diluted percentages of our operating segments is due to stock option issuances of operating segment stock to management of the respective businesses. |
Income Taxes - Reconciliation b
Income Taxes - Reconciliation between Federal Statutory Rate and Effective Income Tax Rate (Detail) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Contingency [Line Items] | ||
United States Federal Statutory Rate | (35.00%) | (35.00%) |
State income taxes (net of Federal benefits) | (2.00%) | 1.70% |
Foreign income taxes | 4.40% | 7.90% |
Expenses of Compass Group Diversified Holdings, LLC representing a pass through to shareholders | 1.00% | 21.70% |
Impairment expense | 12.70% | 0.00% |
Effect of (gain) loss on equity method investment | 7.80% | 32.90% |
Impact of subsidiary employee stock options | 0.40% | 1.10% |
Domestic production activities deduction | (0.70%) | (2.30%) |
Effect of undistributed foreign earnings | 0.70% | 0.00% |
Non-recognition of NOL carryforwards at subsidiaries | (2.70%) | (0.60%) |
Other | (1.10%) | 1.60% |
Effective income tax rate | (14.50%) | 29.00% |
Defined Benefit Plan - Addition
Defined Benefit Plan - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Unfunded liability | $ 3.5 |
Expected contribution to the Foreign Plan | 0.6 |
Arnold | Switzerland [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Contribution to the Foreign Plan | $ 0.1 |
Defined Benefit Plan - Summary
Defined Benefit Plan - Summary of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | ||
Service cost | $ 131 | $ 109 |
Interest cost | 23 | 34 |
Expected return on plan assets | 23 | 5 |
Net periodic benefit cost | $ 177 | $ 148 |
Subsequent Event (Detail)
Subsequent Event (Detail) $ in Millions | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Forecast | |
Subsequent Event [Line Items] | |
Distributions for contribution based profit allocation payments | $ 25.8 |