Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | LAWSON PRODUCTS INC/NEW/DE/ | ||
Entity Central Index Key | 0000703604 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 164,034,000 | ||
Entity Common Stock, Shares Outstanding | 9,043,771 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 5,495 | $ 11,883 |
Restricted cash | 802 | 800 |
Accounts receivable, less allowance for doubtful accounts of $593 and $549, respectively | 38,843 | 37,682 |
Inventories | 55,905 | 52,887 |
Miscellaneous receivables and prepaid expenses | 5,377 | 3,653 |
Total current assets | 106,422 | 106,905 |
Property, plant and equipment, less accumulated depreciation and amortization | 16,546 | 23,548 |
Deferred income taxes | 21,711 | 20,592 |
Goodwill | 20,923 | 20,079 |
Cash value of life insurance | 14,969 | 12,599 |
Intangible assets, net | 12,335 | 13,112 |
Right of use assets | 11,246 | 0 |
Other assets | 277 | 307 |
Total assets | 204,429 | 197,142 |
Current liabilities: | ||
Revolving line of credit | 0 | 10,823 |
Accounts payable | 13,789 | 15,207 |
Lease obligation | 3,830 | 0 |
Accrued expenses and other liabilities | 39,311 | 40,179 |
Total current liabilities | 56,930 | 66,209 |
Revolving line of credit | 2,271 | 0 |
Security bonus plan | 11,840 | 12,413 |
Lease obligation | 9,504 | 5,213 |
Deferred compensation | 6,370 | 5,304 |
Deferred tax liability | 6,188 | 2,761 |
Deferred rent liability | 0 | 1,963 |
Other liabilities | 3,325 | 4,106 |
Total liabilities | 96,428 | 97,969 |
Stockholders' equity: | ||
Authorized - 500,000 shares, Issued and outstanding - None | 0 | 0 |
Authorized - 35,000,000 shares Issued – 9,190,171 and 9,005,716 shares, respectively Outstanding – 9,043,771 and 8,955,930 shares, respectively | 9,190 | 9,006 |
Capital in excess of par value | 18,077 | 15,623 |
Retained earnings | 86,496 | 77,338 |
Treasury stock – 146,400 and 49,786 shares held, respectively | (5,761) | (1,234) |
Accumulated other comprehensive income | (1) | (1,560) |
Total stockholders’ equity | 108,001 | 99,173 |
Total liabilities and stockholders’ equity | $ 204,429 | $ 197,142 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 593 | $ 549 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 9,190,171 | 9,005,716 |
Common stock, shares outstanding | 9,043,771 | 8,955,930 |
Treasury Stock, Shares | 146,399 | 49,786 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Product cost of goods sold | $ 370,785 | $ 349,637 |
Operating expenses: | ||
Selling expenses | 85,342 | 87,642 |
General and administrative expenses | 102,946 | 92,688 |
Operating expenses | 188,288 | 180,330 |
Operating income | 9,066 | 9,210 |
Interest expense | (603) | (1,009) |
Other income (expenses), net | 1,211 | (1,338) |
Income before income taxes | (9,674) | (6,863) |
Income tax expense | 2,453 | 649 |
Net income | $ 7,221 | $ 6,214 |
Earnings Per Share, Basic | $ 0.81 | $ 0.70 |
Diluted income per share of common stock | $ 0.77 | $ 0.67 |
Basic weighted average shares outstanding | 8,968 | 8,909 |
Effect of dilutive securities outstanding | 408 | 364 |
Diluted weighted average shares outstanding | 9,376 | 9,273 |
Gross profit | $ 197,354 | $ 189,540 |
Comprehensive income | ||
Net income | 7,221 | 6,214 |
Other comprehensive income, net of tax: | ||
Adjustment for foreign currency translation | 1,559 | (2,382) |
Comprehensive income | 8,780 | 3,832 |
Product revenue | ||
Product cost of goods sold | 330,695 | 310,204 |
Service cost | 155,304 | 145,493 |
Service revenue | ||
Product cost of goods sold | 40,090 | 39,433 |
Service cost | $ 18,127 | $ 14,604 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock, $1 par value | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Common Stock, Shares, Outstanding | 8,888,028 | |||||
Balance at beginning of year at Dec. 31, 2017 | $ 93,490 | $ 8,921 | $ 13,005 | $ 71,453 | $ (711) | $ 822 |
Net income | 6,214 | |||||
Adjustment for foreign currency translation | (2,382) | (2,382) | ||||
Stock-based compensation | 2,703 | 2,703 | ||||
Shares issued | 0 | 85 | (85) | |||
Treasury share repurchased | (523) | (523) | ||||
Balance at end of year at Dec. 31, 2018 | $ 99,173 | 9,006 | 15,623 | 77,338 | (1,234) | (1,560) |
Shares Issued | 84,414 | |||||
Treasury Stock, Shares, Acquired | (16,512) | |||||
Common Stock, Shares, Outstanding | 8,955,930 | |||||
Net income | $ 7,221 | |||||
Adjustment for foreign currency translation | 1,559 | 1,559 | ||||
Stock-based compensation | 2,638 | 2,638 | ||||
Shares issued | 0 | 184 | (184) | |||
Treasury share repurchased | (4,527) | (4,527) | ||||
Balance at end of year at Dec. 31, 2019 | $ 108,001 | $ 9,190 | $ 18,077 | $ 86,496 | $ (5,761) | $ (1) |
Shares Issued | 184,455 | |||||
Treasury Stock, Shares, Acquired | (96,614) | |||||
Common Stock, Shares, Outstanding | 9,043,771 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | ||
Net income | $ 7,221 | $ 6,214 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | (5,893) | (6,855) |
Stock-based compensation | (4,054) | (7,508) |
Deferred income taxes | 2,169 | 545 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,380) | (193) |
Inventories | (2,308) | (2,915) |
Prepaid expenses and other assets | (3,890) | (1,501) |
Accounts payable and other liabilities | 3,230 | (2,851) |
Other | 667 | 935 |
Net cash provided by operating activities | 9,196 | 20,299 |
Investing activities: | ||
Purchases of property, plant and equipment | (2,028) | (2,524) |
Business acquisition, net of acquired cash | 0 | (5,307) |
Net cash used in investing activities | (2,028) | (7,831) |
Financing activities: | ||
Net payments on revolving lines of credit | (8,552) | (3,720) |
Shares repurchased held in treasury | (4,527) | (523) |
Payment of financing fees | (271) | (185) |
Proceeds from Stock Options Exercised | 33 | 14 |
Payments of Financing Costs | (573) | 0 |
Payments of Merger Related Costs, Financing Activities | 0 | (76) |
Net cash used in financing activities | (13,890) | (4,490) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash: | ||
Effect of Exchange Rate on Cash and Cash Equivalents | 336 | (511) |
Increase (decrease) in cash and cash equivalents | (6,386) | 7,467 |
Cash and cash equivalents at end of year | 5,495 | 11,883 |
Restricted Cash and Cash Equivalents, Current | 802 | 800 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 6,297 | 12,683 |
Income Taxes Paid, Net | 947 | 1,265 |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 590 | $ 1,036 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Lawson Products, Inc. (“Lawson” or the “Company”) is a North American distributor of products and services to the industrial, commercial, institutional and government maintenance, repair and operations (“MRO”) marketplace. The Company has two operating segments. The Lawson operating segment distributes MRO products to customers primarily through a network of sales representatives offering vendor managed inventory ("VMI") service to customers throughout the United States and Canada. The Bolt operating segment distributes MRO products primarily through its 14 branches located in Western Canada. In October 2018, the Company acquired Screw Products, Inc. ("SPI"), a regional distributor of bulk industrial products to manufacturers and job shops. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation — The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and include the accounts and transactions of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications have no effect on net income as previously reported. Revenue Recognition — The Company recognizes two revenue streams: revenues from the sale of product and revenues from the performance of VMI services. The Company offers VMI services only in conjunction with product sales. The Company does not bill product sales and services separately. The total revenue billed is allocated between revenue from product sales and revenue from services for reporting purposes based upon the estimated selling price of such products and services. A portion of selling expenses is allocated to cost of sales for reporting purposes based upon the estimated time spent on such services. Product revenue includes product sales and billings for freight and handling charges. Sales and associated cost of goods sold are generally recognized when products are shipped and title passes to customers. We accrue for returns based on historical evidence of return rates. Service revenue and associated cost of sales are recognized when services are performed. A portion of service revenue and cost of service is deferred, as not all services are performed in the same period as billed. Cash Equivalents — The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The carrying amount of the Company’s cash equivalents at December 31, 2019 approximates fair value. Allowance for Doubtful Accounts — The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filings, substantial down-grading of credit ratings), a specific reserve for bad debts is recorded against amounts due to reduce the receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes reserves for bad debts based on the Company’s historical experience of bad debt write-offs as a percent of accounts receivable outstanding. If circumstances change (e.g., higher than expected defaults or an unexpected material adverse change in a major customer's ability to meet its financial obligations), the estimates of the recoverability of amounts due the Company could be revised. Inventories — Inventories principally consist of finished goods stated at the lower of cost or net realizable value using the first-in-first-out method for the Lawson segment and weighted average for the Bolt segment. To reduce the cost basis of inventory to a lower of cost or net realizable value, a reserve is recorded for slow-moving and obsolete inventory based on historical experience and monitoring of current inventory activity. Estimates are used to determine the necessity of recording these reserves based on periodic detailed analysis using both qualitative and quantitative factors. As part of this analysis, the Company considers several factors including the inventories length of time on hand, historical sales, product shelf life, product life cycle, product category and product obsolescence. Property, Plant and Equipment — Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation expense is computed primarily by the straight-line method for buildings, machinery and equipment, furniture and fixtures and vehicles. The Company estimates useful lives of 20 to 40 years for buildings and improvements and 3 to 10 years for machinery and equipment, furniture and fixtures and vehicles. Amortization of financing and capital leases is included in depreciation expense. Depreciation expense was $3.9 million and $4.8 million for 2019 and 2018 respectively. Capitalized software is amortized over estimated useful lives of 3 to 5 years using the straight-line method. Amortization expense of capitalized software was $0.6 million and $1.1 million for 2019 and 2018 respectively. Cash Value of Life Insurance — The Company has invested funds in life insurance policies on certain current and former employees. The cash surrender value of the policies is invested in various investment instruments and is recorded as an asset on our consolidated balance sheet. The Company records these funds at contractual value. The change in the cash surrender value of the life insurance policies, which is recorded as a component of General and administrative expenses, is the change in the policies' contractual values. Deferred Compensation — The Company’s Executive Deferral Plan (“Deferral Plan”) allows certain executives to defer payment of a portion of their earned compensation. The deferred compensation is recorded in an Account Balance, which is a bookkeeping entry made by the Company to measure the amount due to the participant. The Account Balance is equal to the participant’s deferred compensation, adjusted for increases and/or decreases in the amount that the participant has designated to one or more bookkeeping portfolios that track the performance of certain mutual funds. Lawson adjusts the deferred compensation liability to equal the contractual value of the participants’ Account Balances. These adjustments are the changes in contractual value of the individual plans and are recorded as a component of General and administrative expenses. Stock-Based Compensation — Compensation based on the share value of the Company’s common stock is valued at its fair value at the grant date and the expense is recognized over the vesting period. Fair value is re-measured each reporting period for liability-classified awards that may be redeemable in cash. We account for forfeitures of stock-based compensation in the period which they occur. Goodwill — The Company had $20.9 million and $20.1 million of goodwill in 2019 and 2018 , respectively. Goodwill represents the cost of business acquisitions in excess of the fair value of identifiable net tangible and intangible assets acquired. Goodwill is allocated to the appropriate reporting unit as reviewed by the Company’s segment managers. The Company reviews goodwill for potential impairment annually on December 1 st , or when an event or other circumstances change that would more likely than not reduce the fair value of the asset below its carrying value. The first step in the multi-step process to determine if goodwill has been impaired and to what degree is to review the relevant qualitative factors that could cause the fair value of the reporting unit to decrease below the carrying value of the reporting unit. After reviewing the qualitative factors relevant to the reporting units, including conditions surrounding the industry we operate in compared to when the acquisitions were completed, the financial performance of the reporting units compared to our projected results, and macroeconomic conditions as a whole, we have determined that it is more likely than not that the fair value of the reporting units exceed their carrying value, therefore goodwill has not been impaired and no further steps need to be taken. Intangible Assets — The Company's intangible assets consist of trade names, and customer relationships. Intangible assets are amortized over weighted average 15 and 11 year estimated useful lives for trade names and customer relationships, respectively. Impairment of Long-Lived Assets — The Company reviews its long-lived assets, including property, plant and equipment and definite life intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be recoverable. Recoverability is measured by a comparison of the assets' carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment to be recognized is measured based on the amount by which the carrying amount of the asset exceeds its fair value. No triggering events or impairments occurred in 2019. In 2018 the Company determined that a triggering event had occurred when it determined that it would most likely exercise its put option on a building of a previously discontinued operation in Decatur, Alabama. Accordingly, the Company recorded an impairment charge of $0.2 million in 2018 based upon the anticipated proceeds less its carrying value. Income Taxes — Deferred tax assets or liabilities reflect temporary differences between amounts of assets and liabilities for financial and tax reporting. Such amounts are adjusted, as appropriate, to reflect changes in enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is established to offset any deferred tax assets if, based upon the available evidence, it is more likely than not (i.e. greater than 50% likely) that some or all of the deferred tax assets will not be realized. The determination of the amount of a valuation allowance to be provided on recorded deferred tax assets involves estimates regarding (1) the timing and amount of the reversal of taxable temporary differences, (2) expected future taxable income, (3) the impact of tax planning strategies and (4) the ability to carry back deferred tax assets to offset prior taxable income. In assessing the need for a valuation allowance, we consider all available positive and negative evidence, including past operating results, projections of future taxable income and the feasibility of ongoing tax planning strategies. The projections of future taxable income include a number of estimates and assumptions regarding our volume, pricing and costs. Additionally, valuation allowances related to deferred tax assets can be impacted by changes to tax laws. Significant judgment is required in determining income tax provisions as well as deferred tax asset and liability balances, including the estimation of valuation allowances and the evaluation of tax positions. Earnings from the Company's foreign subsidiaries are considered to be indefinitely reinvested. A distribution of these non-U.S. earnings in the form of dividends or otherwise would subject the Company to foreign withholding taxes and may subject the Company to U.S. federal and state taxes. The Company recognizes the benefit of tax positions when a benefit is more likely than not (i.e., greater than 50% likely) to be sustained on its technical merits. Recognized tax benefits are measured at the largest amount that is more likely than not to be sustained, based on cumulative probability, in final settlement of the position. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. Leases — Leases are categorized as either operating or financing leases at commencement. For both classes of leases, a Right Of Use ("ROU") asset and corresponding lease liability are recognized at commencement. Operating leases consist of the company headquarters, distribution centers, and Bolt branches. Financing leases consist of equipment such as forklifts and copiers. The value of the lease assets and liabilities are the present value of the total cash payments for each lease. The Company uses its incremental borrowing rate to discount the total cash payments to present value for each lease. The Company will review each lease to determine if there is a more appropriate discount rate to apply. Upon commencement, rent expense is recognized on a straight line basis for each operating lease. Each financing lease ROU asset is amortized on a straight line basis over the lease period. Earnings per Share — Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution from the exercise or conversion of outstanding stock options, market stock units and restricted stock awards into common stock. For the year ended December 31, 2019 no options to purchase shares of common stock were excluded from the computation of diluted earnings per share because all of the options were in the money. For the year ended December 31, 2018 stock options to purchase 46,067 of the Company's common stock were excluded from the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common stock. Foreign Currency — The accounts of foreign subsidiaries are measured using the local currency as the functional currency. All balance sheet amounts are translated into U.S. dollars using the exchange rates in effect at the applicable period end. Components of income or loss are translated using the average exchange rate for each reporting period. Gains and losses resulting from changes in the exchange rates from translation of the subsidiary accounts in local currency to U.S. dollars are reported as a component of Accumulated other comprehensive income or loss in the consolidated balance sheets. Gains and losses resulting from the effect of exchange rate changes on transactions denominated in currencies other than the functional currency are included as a component of net income or loss upon settlement of the transaction. Gains and losses resulting from intercompany transactions are included as a component of net income or loss each reporting period unless the transactions are of a long-term-investment nature and settlement is not planned or anticipated in the foreseeable future, in which case the gains and losses are recorded as a component of accumulated other comprehensive income or loss in the consolidated balance sheets. Treasury Stock —The Company repurchased 32,362 of its common stock in 2019 through its previously announced stock repurchase plan. The Company repurchased 64,252 and 16,512 shares of its common stock in 2019 and 2018 , respectively from employees upon the vesting of restricted stock to offset the income taxes owed by those employees. The Company accounts for treasury stock using the cost method and includes treasury stock as a component of stockholders’ equity. The cost of the common stock repurchased and held in treasury was $4.5 million and $0.5 million in 2019 and 2018 , respectively. Acquisitions — The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions for the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Use of Estimates — Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported for service revenue, service cost, allowance for doubtful accounts, inventory reserves, goodwill and intangible assets valuation, and income taxes in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which revises the requirements for how an entity should measure credit losses on financial instruments. The pronouncement is effective for smaller reporting companies in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and the new guidance will be applied on a prospective basis. The Company is still evaluating the effect the adoption of the new standard will have on its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. Subsequently, the FASB has issued additional ASUs which further clarify this guidance. Under the new guidance, at the lease commencement date, a lessee recognizes a right-of-use (“ROU”) asset representing its right to use the underlying asset and a lease liability which is initially measured at the estimated present value of the future lease payments. These amounts represent the estimated economic benefit the Company will receive over the term of the lease. For results of operations purposes, leases are classified as either operating or finance leases. For operating leases, lease expense is recognized on a straight line basis. For finance leases, the lease liability and interest on the lease liability is recognized using the Company's incremental borrowing rate. The amortization of the ROU asset is recognized over the useful life of the asset. The Company adopted ASU 2016-02 on January 1, 2019 using the modified retrospective method. The Company elected a package of practical expedients, which included the decision to not reassess certain direct costs for existing leases at the date of implementation. These direct costs included certain items such as commissions, legal and documentation preparation fees and payments to incentivize existing tenants to terminate its lease. These direct costs are capitalized for new leases entered into after January 1, 2019. The Company elected that, as a practical expedient, it will not separate lease components from non-lease components for certain types of leases. The effect on the Company’s results of operations in subsequent periods is not significant. The impact of ASU 2016-02 is non-cash in nature and does not affect the Company’s cash flows. Upon transition to ASU 2016-02, the Company removed the financing lease for the building associated with the McCook distribution facility. The Company then reassessed the land and building at the McCook distribution facility as an operating lease. Additional quantitative and qualitative presentations and disclosures related to the Company's leases are provided in Note 4 - Leases . |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition As part of the Company's revenue recognition analysis, it concluded that it has two separate performance obligations, and accordingly, two separate revenue streams: products and services. As a result, the Company reports two separate revenue streams and two separate costs of revenues. Under the definition of a contract as defined by ASC 606, the Company considers contracts to be created at the time an order to purchase product is agreed upon regardless of whether or not there is a written contract. Performance Obligations Lawson has two operating segments; the Lawson segment and the Bolt Supply segment. The Lawson segment has two distinct performance obligations offered to its customers: a product performance obligation and a service performance obligation. Although the Company has identified that it offers its customers both a product and a service obligation, the customer only receives one invoice per transaction with no price breakout between these obligations. The Company does not price its offerings based on any breakout between these obligations. Lawson generates revenue primarily from the sale of MRO products to its customers. Revenue related to product sales is recognized at the time that control of the product has been transferred to the customer; either at the time the product is shipped or the time the product has been received by the customer. The Company does not commit to long-term contracts to sell customers a certain minimum quantity of products. The Lawson segment offers a VMI service proposition to its customers. A portion of these services, primarily related to stocking of product and maintenance of the MRO inventory, is provided a short period of time after control of the purchased product has been transferred to the customer. Since some components of VMI service have not been provided at the time the control of the product transfers to the customer, that portion of expected consideration is deferred until the time that those services have been provided. The Bolt Supply segment does not provide VMI services for its customers or provide services in addition to product sales to customers. Revenue is recognized at the time that control of the product has been transferred to the customer which is either upon delivery or shipment depending on the terms of the contract. Accounting Policy Elections The Company treats shipping and handling costs after the control of the product has been transferred to the customer as a fulfillment cost. Sales taxes that are imposed on our sales and collected from customers are excluded from revenues. The Company expenses sales commissions when incurred as the amortization period is one year or less. Certain Judgments The Company employs certain judgments to estimate the dollar amount of revenue, and related expenses, allocated to the sale of product and service. These judgments include, among others, the percentage of customers that take advantage of the VMI services offered, the amount of revenue to be allocated to the VMI service based on the value of the service to its customers, and the amount of time after control of the product passes to the customer that the VMI service obligation is completed. It is assumed that any customer who averages placing orders at a frequency of longer than 30 days does not take advantage of the available VMI services offered. The estimate of the cost of sales is based on the estimated time spent on such activities applied to the expenses directly related to sales representatives that provide VMI services to the customer. Disaggregated revenue by product type follows: Unaudited Year Ended December 31, Product Category 2019 2018 Fastening systems 24% 24% Fluid power 15% 14% Cutting tools and abrasives 13% 15% Specialty chemicals 11% 12% Electrical 11% 11% Aftermarket automotive supplies 8% 8% Safety 5% 5% Welding and metal repair 2% 2% Other 11% 9% 100% 100% |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Note 4 - Leases In February 2016, the FASB established Topic ASC 842, Leases, by issuing Accounting Standards Update 2016-02. Lawson adopted ASC 842 as of January 1, 2019. The Company leases property used for distribution centers, office space, and Bolt branch locations throughout the U.S. and Canada, along with various equipment located in distribution centers and corporate headquarters. The Company is also a lessor of its Decatur, Alabama property previously used in conjunction with a discontinued operation, and was a sublessor of a portion of its corporate headquarters. Lawson Operating Leases Lawson MRO primarily has two types of leases: leases for real estate and leases for equipment. Operating real estate leases that have a material impact on the operations of the Company are related to the Company's distribution network and headquarters. The Company possesses several additional property leases that are month to month basis and are not material in nature. Lawson MRO does not possess any leases that have residual value guarantees. Several property leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use assets and associated lease liabilities when the Company is reasonably certain it will renew a lease or terminate a lease. The key change commencing on January 1, 2019 for the Company is the recognition of assets and liabilities of operating leases with lease terms longer than twelve months that were not previously capitalized on the balance sheet. The value of the Right Of Use ("ROU") assets and associated lease liabilities is calculated using the total cash payments over the course of the lease, discounted to the present value using the appropriate discount rate. The right of use asset will be amortized over its useful life. Similar to deferred rent under ASC 840, the lease liability is reduced in conjunction with the lease payments made, with adjustments made to the lease liability in order to account for non-straight line cash payments through the life of the lease. Bolt primarily leases the real estate for its branch locations as well as its distribution center in Calgary, Alberta. Bolt possesses additional property leases that are month to month and not material in nature. Bolt property leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use asset and associated lease liability when the Company is reasonably certain it will renew a lease or terminate a lease. Lease of McCook Distribution Facility Upon adoption of ASC 842, the previously capitalized financing asset and lease liability for the McCook distribution facility was removed from the balance sheet and re-established as a ROU asset and a lease liability as an operating lease. The Company did not include the lease renewal periods in its assessment of the McCook lease as it did not meet the reasonably certain threshold required under ASC 842. Changes in the value of the assets and liabilities associated with the property due to adoption of ASC 842 have been accounted for as an adjustment to 2019 beginning retained earnings of $1.9 million . Accounting Policy Elections As part of the transition to ASC 842, the Company elected the following practical expedients: The transitional package of practical expedients as prescribed by ASC 842. Per the practical expedient for the transition to ASC 842, the Company did not reassess expired leases, existing lease classifications or initial indirect costs for existing leases in the calculation of the right to use asset and lease liability. The Company elected the modified retrospective method of transition, which resulted in no restatement of prior period results with the adoption impact being recorded to opening retained earnings. The Company did not capitalize short term leases, for all asset classes defined as leases with a term of shorter than twelve months, on the balance sheet. These leases have not been transitioned to ASC 842. As a practical expedient, the Company did not reassess the accounting for initial direct costs of current leases. The Company elected not to use the hindsight practical expedient in determining the lease term. The Company recognizes certain lease components and non-lease components together and not as separate parts of a lease for real estate leases. The Company will exercise this practical expedient in the future by asset class. Significant Assumptions The Company is required to determine a discount rate for the present value of lease payments. If the rate is not included in the lease or cannot be readily determined, the Company must estimate the incremental borrowing rate to be used for the discount rate. The Company will discount the present value of the total payments for the operating and financing leases using the incremental borrowing rate at the inception of the lease. The incremental borrowing rate will be reviewed and updated as needed. The expenses and income generated by the leasing activity of Lawson as lessee for the year ended December 31, 2019 were as follows (Dollars in thousands): Lease Type Classification Expense / (Income) Consolidated Operating Lease Expense (1) Operating expenses $ 4,729 Consolidated Financing Lease Amortization Operating expenses 206 Consolidated Financing Lease Interest Interest expense 30 Consolidated Financing Lease Expense 236 Sublease Income (2) Operating expenses (160 ) Net Lease Cost $ 4,805 (1) Includes variable lease payments and short term lease expenses (2) Sublease income from sublease of a portion of the Company headquarters. The sublease was terminated in June 2019 and the Company has no other subleases The Company recorded $3.3 million of operating lease expenses for the year ended December 31, 2018 . The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands): Lease Type Amount Total ROU operating lease assets (1) $ 10,592 Total ROU financing lease assets (2) 654 Total lease assets $ 11,246 Total current operating lease obligation $ 3,591 Total current financing lease obligation 239 Total current lease obligations $ 3,830 Total long term operating lease obligation $ 9,133 Total long term financing lease obligation 371 Total long term lease obligation $ 9,504 (1) Operating lease assets are recorded net of accumulated amortization of $1.2 million as of December 31, 2019 (2) Financing lease assets are recorded net of accumulated amortization of $0.2 million as of December 31, 2019 The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands): Year Ended December 31, Operating Leases Financing Leases Total 2020 $ 4,136 $ 267 $ 4,403 2021 4,169 202 4,371 2022 3,099 122 3,221 2023 1,437 61 1,498 2024 482 5 487 Thereafter 600 — 600 Total lease payments 13,923 657 14,580 Less: Interest 1,199 47 1,246 Present value of lease liabilities $ 12,724 $ 610 $ 13,334 (1) Of the $13.9 million future minimum operating lease commitments outstanding at December 31, 2019 , $3.2 million relates to a lease for the Company's headquarters which expires in March 2023 (2) The Company has an operating lease for the McCook Facility which expires in June 2022 and includes future minimum lease payments of $4.2 million The Company's future minimum lease commitments, principally for facilities and equipment, as of December 31, 2018 were as follows: (Dollars in thousands) Year ended December 31, Operating Leases Financing Lease Capital Leases 2019 $ 2,574 $ 1,395 $ 201 2020 2,369 1,444 155 2021 2,349 1,493 91 2022 2,008 760 11 2023 1,130 — — Thereafter 374 — — Total $ 10,804 $ 5,092 $ 458 (1) Minimum lease payments exclude payments to landlord for real estate taxes and common area maintenance (2) On January 1, 2019, t he Company elected the modified retrospective method of transition to adopt the new lease standard ASC 842, which resulted in no restatement of prior period results. At December 31, 2018, prior to adoption of the new lease standard, operating lease obligations were not included as a liability on the balance sheet. Therefore, the operating lease obligations are included in the table for comparative purposes only and the total lease liability is not included as it is not applicable (3) The $5.1 million minimum lease obligation attributable to the McCook lease that was classified as a financing lease on December 31, 2018 was reclassified as an operating lease under the new accounting standard adopted on January 1, 2019 (4) Lease obligations classified as capital leases on December 31, 2018 were reclassified as financing leases under the new lease standard adopted on January 1, 2019 The weighted average lease terms and interest rates of the leases held by Lawson as of December 31, 2019 are as follows: Lease Type Weighted Average Term in Years Weighted Average Interest Rate Operating Leases 3.8 5.1% Financing Leases 2.9 5.5% The cash outflows of the leasing activity of Lawson as lessee for the year ending December 31, 2019 are as follows (Dollars in thousands): Cash Flow Source Classification Amount Operating cash flows from operating leases Operating activities $ 4,949 Operating cash flows from financing leases Operating activities 30 Financing cash flows from financing leases Financing activities 271 Subsequent to the adoption of ASC 842 in 2019 the Company recorded a non-cash transaction to establish $1.7 million of operating ROU assets, for which $1.7 million of operating lease liabilities were incurred. Also, in 2019 the Company recorded a non-cash transaction to establish $0.4 million of financing ROU assets, for which $0.4 million of financing lease liabilities were incurred. |
Restricted Cash Restricted Cash
Restricted Cash Restricted Cash | 12 Months Ended |
Dec. 31, 2018 | |
Restricted Cash [Abstract] | |
Restricted Assets Disclosure [Text Block] | Restricted Cash The Company has agreed to maintain $0.8 million in a money market account as collateral for an outside party that is providing certain commercial card processing services for the Company. The Company is restricted from withdrawing this balance without the prior consent of the outside party during the term of the agreement. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories, net Inventories, net, consisting primarily of purchased goods which are offered for resale, were as follows: (Dollars in thousands) December 31, 2019 2018 Inventories, gross $ 60,500 $ 58,215 Reserve for obsolete and excess inventory (4,595 ) (5,328 ) Inventories, net $ 55,905 $ 52,887 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Components of property, plant and equipment were as follows: (Dollars in thousands) December 31, 2019 2018 Land $ 2,625 $ 2,565 Buildings and improvements 15,356 16,858 Machinery and equipment 24,509 23,955 Capitalized software 22,136 21,738 Furniture and fixtures 5,673 5,884 Vehicles 155 190 McCook facility — 12,961 Capital leases — 684 Construction in progress 683 391 71,137 85,226 Accumulated depreciation and amortization (54,591 ) (61,678 ) $ 16,546 $ 23,548 Assets relating to the McCook facility and capital leases are now accounted for as lease right of use assets. See Note 4 - Leases for transition to ASU 2016-02. |
Goodwill (Notes)
Goodwill (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill [Abstract] | |
Goodwill Disclosure [Text Block] | Goodwill Goodwill activity related to acquisitions is included in the table below: (Dollars in thousands) December 31, 2019 2018 Beginning balance $ 20,079 $ 19,614 Impact of foreign exchange 854 (1,452 ) Acquisition (1) — 2,086 Adjustment to prior year allocation (2) (10 ) (169 ) Ending balance $ 20,923 $ 20,079 (1) The $2.1 million addition to goodwill in 2018 was due to the allocation of costs to acquire Screw Products. (2) The reduction of $0.2 million in 2018 resulted from an adjustment to goodwill created by the Bolt acquisition in 2017. |
Intangible assets (Notes)
Intangible assets (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Intangible Assets Disclosure [Text Block] | Intangible assets The gross carrying amount and accumulated amortization by intangible asset class were as follows: (Dollars in thousands) (Dollars in thousands) December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 8,422 $ (2,020 ) $ 6,402 $ 8,090 $ (1,447 ) $ 6,643 Customer relationships 7,337 (1,404 ) 5,933 7,114 (645 ) 6,469 $ 15,759 $ (3,424 ) $ 12,335 $ 15,204 $ (2,092 ) $ 13,112 Amortization expense of $1.3 million and $0.9 million related to intangible assets was recorded in General and administrative expenses for 2019 and 2018 , respectively. The estimated aggregate amortization expense for each of the next five years are as follows: (Dollars in thousands) Year Amortization 2020 $ 1,495 2021 1,611 2022 1,406 2023 1,292 2024 1,196 Thereafter 5,335 $ 12,335 The gross carrying amount and accumulated amortization by intangible asset class were as follows: (Dollars in thousands) (Dollars in thousands) December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 8,422 $ (2,020 ) $ 6,402 $ 8,090 $ (1,447 ) $ 6,643 Customer relationships 7,337 (1,404 ) 5,933 7,114 (645 ) 6,469 $ 15,759 $ (3,424 ) $ 12,335 $ 15,204 $ (2,092 ) $ 13,112 |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income from operations before income taxes consisted of the following: (Dollars in thousands) Year Ended December 31, 2019 2018 United States $ 5,418 $ 6,839 Canada 4,256 24 $ 9,674 $ 6,863 Provision (benefit) for income taxes from operations for the years ended December 31, consisted of the following: (Dollars in thousands) Year Ended December 31, 2019 2018 Current income tax expense: U.S. state $ 136 $ 165 Canada 291 257 Total $ 427 $ 422 Deferred income tax expense (benefit): U.S. federal $ 2,012 $ 721 U.S. state 303 (464 ) Canada (289 ) (30 ) Total $ 2,026 $ 227 Total income tax expense (benefit): U.S. federal $ 2,012 $ 721 U.S. state 439 (299 ) Canada 2 227 Total $ 2,453 $ 649 The reconciliation between the effective income tax rates and the statutory federal rates for operations are as follows: Year Ended December 31, 2019 2018 Statutory Federal rate 21.0 % 21.0 % Increase (decrease) resulting from: Change in valuation allowance - current period activity (4.5 ) 3.7 Change in valuation allowance - reversal (13.6 ) — Capital loss 13.6 — Stock compensation (11.5 ) (4.5 ) Compensation deduction limitation 10.1 — State and local taxes, net 4.5 4.7 Foreign income inclusion 3.1 (13.3 ) Meals & entertainment 1.8 2.4 Change in uncertain tax positions (1.0 ) (1.4 ) Provision to return differences 0.2 (9.3 ) Foreign currency loss — 2.5 Alternative minimum tax — 1.4 Other items, net 1.7 2.3 Provision for income taxes 25.4 % 9.5 % At December 31, 2019 , the Company had $13.1 million of U.S. federal net operating loss carryforwards which are subject to expiration beginning in 2030 and $16.8 million of various state net operating loss carryforwards which expire at varying dates through 2034 . Primarily due to the cumulative losses that were incurred over several years, management determined in 2012 that it was more likely than not that the company would not be able to utilize its deferred tax assets to offset future taxable income. Valuation allowances ("VA’s") were recorded against virtually all the gross deferred tax assets at that time. At each reporting date since 2012, Lawson management has considered new evidence, both positive and negative, that could impact management’s view with regard to the realization of its deferred tax assets and the reversal of the corresponding valuation allowances. If the company was able to demonstrate that it can consistently generate income it may lead to a determination that there is sufficient positive evidence to conclude that it is more likely than not that the company will be able to utilize its deferred tax assets to offset future taxable income. In 2017 we had continued to generate pre-tax profits and had utilized some of our net operating loss carryforwards over the previous two years and were in a three year cumulative income position in the U.S. Based on available evidence, including the utilization of $13.0 million of net operating loss carryforwards in 2017, we reached a point of increased confidence in our ability to sustain profit levels and we believed it was more likely than not that we would be able to utilize a substantial amount of our deferred tax assets to offset future taxable income. Therefore, a large portion of our U.S. valuation allowances were released in 2017. Certain valuation allowances mostly pertaining to the deferred tax assets related to our foreign operations will remain. The Company will continue to monitor all positive and negative evidence related to the remaining valuation of deferred tax assets on a quarterly basis. The Tax Cuts and Jobs Act was enacted into law on December 22, 2017. Subsequent to this, the Securities and Exchange Commission ("SEC") issued SAB 118 (Income Tax Accounting Implications of the Tax Cuts and Jobs Act) which allows registrants to record provisional amounts during a measurement period. The SAB allows a company to recognize provisional amounts when it does not have the necessary information prepared in reasonable detail to calculate the effect of the change in tax law. Per the SAB, a company should report provisional amounts when the accounting is not complete, but for which a reasonable estimate can be determined. Lawson included in its 2017 taxable income calculation a provisional amount of approximately $8.4 million representing previously untaxed foreign earnings and profits. The Company did not accrue any federal income tax on this amount as the company was able to utilize federal net operating losses to offset the income. The Company recently finalized the foreign earnings and profit calculation in conjunction with the finalization of the 2017 federal income tax return when all required necessary information was more readily available. A lower final foreign earnings and profits inclusion of $3.9 million resulted in a tax benefit which has a beneficial impact on the effective tax rate for the year ending December 31, 2018. As a result of acquisitions completed in recent years, the Company recorded $20.9 million of tax deductible goodwill that may result in a tax benefit in future periods. Deferred income tax assets and liabilities contain the following temporary differences: (Dollars in thousands) December 31, 2019 2018 Deferred tax assets: Net operating loss carryforward $ 7,786 $ 9,878 Compensation and benefits 9,947 9,598 Inventory reserve 1,589 1,769 Accounts receivable reserve 152 142 Lease assets 3,326 — Capital loss carryforward — 1,317 Other 146 457 Total deferred tax assets 22,946 23,161 Deferred tax liabilities: Intangible assets 2,360 2,478 Lease liabilities 2,850 — Property, plant and equipment 353 (20 ) Other 625 303 Total deferred liabilities 6,188 2,761 Net deferred tax assets before valuation allowance 16,758 20,400 Valuation allowance (1,235 ) (2,569 ) Net deferred tax assets $ 15,523 $ 17,831 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (Dollars in thousands) December 31, 2019 2018 Balance at beginning of year $ 3,612 $ 4,255 Additions for tax positions of current year 13 43 Additions for tax positions of prior years 121 85 Reductions for tax positions of prior year (29 ) (771 ) Lapse of statute of limitations (475 ) — Balance at end of year $ 3,242 $ 3,612 The recognition of the unrecognized tax benefits would have a favorable effect on the effective tax rate. Due to the uncertainty of both timing and resolution of income tax examinations, the Company is unable to determine whether any amounts included in the December 31, 2019 balance of unrecognized tax benefits represent tax positions that could significantly change during the next twelve months. The unrecognized tax benefits are recorded as a component of Other liabilities in the Consolidated Balance Sheets. Interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense. The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state and foreign jurisdictions. As of December 31, 2019 , the Company was subject to U.S. federal income tax examinations for the years 2016 through 2018 and income tax examinations from various other jurisdictions for the years 2012 through 2018. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following: (Dollars in thousands) December 31, 2019 2018 Accrued stock-based compensation (stock performance rights) $ 14,908 $ 13,458 Accrued compensation 9,238 10,740 Accrued and withheld taxes, other than income taxes 4,387 1,674 Accrued profit sharing 916 899 Accrued severance 778 304 Deferred revenue 648 693 Accrued health benefits 578 614 Environmental remediation accrual 20 1,376 Financing lease obligation (1) — 1,207 Other 7,838 9,214 $ 39,311 $ 40,179 (1) Liabilities relating to financing lease obligations are now accounted for as lease obligations. See Note 4 - Leases for transition to ASU 2016-02. |
Credit Agreement
Credit Agreement | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | Credit Agreement New Credit Agreement In October, 2019, the Company entered into a Credit Agreement (the "Credit Agreement") with J.P. Morgan Chase Bank, N.A. as administrative agent, and including CIBC Bank USA and Bank of America, N.A. as other lenders. The Credit Agreement matures on October 11, 2024 and provides for $100.0 million of revolving commitments. The Credit Agreement allows borrowing capacity to increase to $150.0 million subject to meeting certain criteria and additional commitments from its lenders. The Credit Agreement consists of borrowings as alternate base rate loans, Canadian prime rate loans, Eurodollar loans, and Canadian dollar offered rate loans as the Company requests. The applicable interest rate spread is determined by the type of borrowing used and the Total Net Leverage Ratio as of the most recent fiscal quarter as defined in the Credit Agreement. The covenants associated with the Credit Agreement restrict the ability of the Company to, among other things: incur additional indebtedness and liens, make certain investments, merge or consolidate, engage in certain transactions such as the disposition of assets and sales-leaseback transactions, and make certain restricted cash payments such as dividends in excess of defined amounts contained within the Credit Agreement. In addition to these items and other customary terms and conditions, the Credit Agreement requires the Company to comply with certain financial covenants as follows: a) The Company is required to maintain an EBITDA to Fixed Charge Coverage Ratio of at least 1.15 to 1.00 for any period of four consecutive fiscal quarters ending on the last day of any fiscal quarter; and b) The Company is required to maintain a Total Net Leverage Ratio of no more than 3.25 to 1.00 on the last day of any fiscal quarter. The maximum Total Net Leverage Ratio will be allowed to increase to 3.75 to 1.00 after certain permitted acquisitions. The Credit Agreement also includes events of default for, among others, non-payment of obligations under the Credit Agreement, change of control, cross default to other indebtedness in an aggregate amount in excess of $5.0 million , failure to comply with covenants, and insolvency. At December 31, 2019 , the Company had $2.3 million outstanding balance under its revolving line of credit facility and additional borrowing availability of $96.7 million . The carrying amount of the Company’s debt at December 31, 2019 approximates its fair value. The weighted average interest rate was 4.59% in 2019 . The Company had $1.1 million of outstanding letters of credit as of December 31, 2019 . In addition to other customary representations, warranties and covenants, the results of the financial covenants are provided below: Quarterly Financial Covenants Requirement Actual EBITDA to fixed charges ratio 1.15 : 1.00 10.76 : 1.00 Total net leverage ratio 3.25 : 1.00 0.00 : 1.00 The Company was in compliance with all covenants as of December 31, 2019. Previous Credit Agreements Prior to October 2019, Lawson had a Loan and Security Agreement (“Loan Agreement”) with CIBC Bank USA which consisted of a $40.0 million revolving line of credit facility. The borrowing capacity of the Loan Agreement was subject to certain limitations including the amount of the Company's eligible accounts receivable and inventory value. The interest rate was based on the Prime rate or LIBOR and the Company's debt to EBITDA ratio. The Loan Agreement was secured by a first priority perfected security interest in substantially all existing assets of the Company. Dividends were restricted to amounts not to exceed $7.0 million annually. Prior to October 2019, Bolt Supply had a Commitment Letter ("Commitment Letter") with BMO Bank of Montreal which allowed Bolt Supply to access up to $5.5 million Canadian dollars in the form of either an overdraft facility or as commercial letters of credit. The Commitment Letter was secured by substantially all of Bolt Supply’s assets and carried an interest rate based on the bank's prime rate. The new Credit Agreement that was entered into in October 2019 replaced the Loan Agreement and the Commitment Letter. The Company was in compliance with all covenants associated with these agreements at the time of payoff. |
Reserve for Severance
Reserve for Severance | 12 Months Ended |
Dec. 31, 2018 | |
Severance Reserve [Abstract] | |
Reserve for Severance | Reserve for Severance Severance costs are primarily related to management realignment and reorganization. The table below reflects the activity in the Company’s reserve for severance and related payments. (Dollars in thousands) Year Ended December 31, 2019 2018 Beginning balance $ 359 $ 483 Charged to earnings 1,756 849 Cash paid (1,206 ) (973 ) Ending balance $ 909 $ 359 The majority of remaining severance liabilities outstanding as of December 31, 2019 will be paid by the end of 2020, and are included in accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is involved in legal actions that arise in the ordinary course of business. It is the opinion of management that the resolution of any currently pending litigation will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. Environmental matter In 2012, the Company identified that a site it owns in Decatur, Alabama, contains hazardous substances in the soil and groundwater as a result of historical operations prior to the Company's ownership. The Company retained an environmental consulting firm to further investigate the contamination including the measurement and monitoring of the site and the site was enrolled in the Alabama Department of Environmental Management (“ADEM") voluntary cleanup program. A remediation plan was approved by ADEM in 2018. The plan consists of chemical injections throughout the affected area, as well as subsequent monitoring of the area for three consecutive periods. The injection process was completed in the first quarter of 2019 and the environmental consulting firm is monitoring the affected area. The Company made payments of $1.3 million in 2019 for services rendered by the environmental consulting firm. These payments were applied to the previously accrued environmental remediation liability. The Company believes the remaining environmental remediation liability classified within Accrued expenses and other liabilities on the accompanying Consolidated Balance Sheet, will be sufficient to cover the remaining cost of the plan. The Company does not expect to capitalize any amounts related to the remediation plan. |
Retirement and Security Bonus P
Retirement and Security Bonus Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement and Security Bonus Plans | Retirement and Security Bonus Plans The Company provides a 401(k) defined contribution plan to allow employees a pre-tax investment vehicle to save for retirement. The Company made contributions to the 401(k) plan of $3.2 million and $3.0 million for the years ended December 31, 2019 and 2018 , respectively. The Company provides a Deferred Profit Savings Plan ("DPSP") for certain Canadian employees and a Registered Retirement Savings Plan ("RRSP") for other Canadian employees. Both are deferred defined contribution retirement investment plans. The Company contributed $0.4 million and $0.3 million in 2019 and 2018, respectively. The Company provides a profit sharing plan for certain sales, office and warehouse employees. The amounts of the Company’s annual contributions are determined annually by the Board of Directors. Expenses incurred for the profit sharing plan were $0.8 million and $0.7 million for the years ended December 31, 2019 and 2018 , respectively. The Company has a security bonus plan which was previously created for the benefit of its independent sales representatives, under the terms of which participants are credited with a percentage of their annual net commissions. The aggregate amounts credited to participants’ accounts vest 25% after five years, and an additional 5% vests each year thereafter upon qualification for the plan. On January 1, 2013, the Company converted all of its U.S. independent sales representatives to employees. The security bonuses for those converted employees continue to vest, but their accounts are no longer credited with a percentage of net commissions. For financial reporting purposes, amounts are charged to operations over the vesting period. Expenses incurred for the security bonus plan were $0.5 million and $0.6 million for the years ended December 31, 2019 and 2018 , respectively. The security bonus plan is partially funded by a $6.8 million investment in the cash surrender value in life insurance of certain employees. Of the $12.0 million total liability, $0.2 million is classified as a current liability and the remaining $11.8 million is classified as long-term. |
Acquisitions (Notes)
Acquisitions (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisitions 2019 The Company did not make any acquisitions in 2019. 2018 The Company completed the acquisition of Screw Products, Inc. in October 2018 for approximately $5.2 million . The purchase price was funded with cash on hand and utilization of the Company's existing credit facility. Screw Products, Inc. is a distributor of bulk industrial products to large manufacturers and job shops. The Company allocated $2.6 million of the purchase price to an intangible asset for customer relationships and $0.5 million for intangible asset for trade names. These amounts were determined by a third party valuation firm with estimated useful lives of 10 and 15 years, respectively. The excess of the purchase price over the fair values of the identifiable assets and liabilities was recorded as goodwill and represents the expected future benefit to the Company from the acquisition of Screw Products. The Company's Lawson operating segment includes revenues of approximately $2.6 million and $0.6 million from Screw Products in 2019 and 2018, respectively. The following table contains unaudited pro forma net sales and net income for Lawson Products assuming the Screw Products acquisition closed on January 1, 2017. (Dollars in thousands) Year Ended December 31, 2019 2018 Net Sales Actual $ 370,785 $ 349,637 Pro forma (unaudited) $ 370,785 $ 351,916 Net income Actual $ 7,221 $ 6,214 Pro forma (unaudited) $ 7,221 $ 6,674 The pro forma disclosures in the table above include adjustments for, amortization of intangible assets, interest expense, tax expenses and the impact of pro forma adjustments and acquisition costs to reflect results that are more representative of the combined results of the transactions as if the Screw Products acquisition closed on January 1, 2017. This pro forma information utilizes certain estimates, is presented for illustrative purposes only and may not be indicative of the results of operation that would have actually occurred. In addition, future results may vary significantly from the results reflected in the pro forma information. The unaudited pro forma financial information does not reflect the impact of future events that may occur after the acquisition, such as anticipated cost savings from operating synergies. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Stock-Based Compensation Plans Plan Administration The Company's Amended and Restated 2009 Equity Compensation Plan (“Equity Plan”) provides for the grant of nonqualified and incentive stock options, stock awards and stock units to officers and employees of the Company. The Equity Plan also provides for the grant of option rights and restricted stock to non-employee directors. As of December 31, 2019 , the Company had approximately 279,000 shares of common stock still available under the Equity Plan. Non-employee directors are limited to grants of no more than 20,000 shares of common stock in any calendar year and other than non-employee directors are limited to grants of no more than 125,000 shares of common stock in any calendar year. The Equity Plan is administered by the Compensation Committee of the Board of Directors, or its designee, which as administrator of the plan, has the authority to select plan participants, grant awards, and determine the terms and conditions of the awards. The Company also has a Stock Performance Rights Plan (“SPR Plan”) that provides for the issuance of Stock Performance Rights (“SPRs”) that allow non-employee directors, officers and key employees to receive cash awards, subject to certain restrictions, equal to the appreciation of the Company's common stock. The SPR Plan is administered by the Compensation Committee of the Board of Directors. Stock Performance Rights SPRs entitle the recipient to receive a cash payment equal to the excess of the market value of the Company's common stock over the SPR exercise price when the SPRs are surrendered. Expense, equal to the fair market value of the SPR at the date of grant and remeasured each reporting period, is recorded ratably over the vesting period. Compensation expense is included in General and administrative expense. The outstanding SPRs were granted with approximately a seven year life and vest over one to three years beginning on the first anniversary of the date of the grant. On December 31, 2019 , the SPRs outstanding were re-measured at fair value using the Black-Scholes valuation model. This model requires the input of subjective assumptions that may have a significant impact on the fair value estimate. The weighted-average estimated value of SPRs outstanding as of December 31, 2019 was $25.34 per SPR using the following assumptions: Expected volatility 32.1% to 40.70% Risk-free rate of return 1.6% to 1.7% Expected term (in years) 0.5 to 4.5 Expected annual dividend $0 The expected volatility was based on the historic volatility of the Company's stock price commensurate with the expected life of the SPR. The risk-free rate of return reflects the interest rate offered for zero coupon treasury bonds over the expected life of the SPR. The expected life represents the period of time that options granted are expected to be outstanding and was calculated using the simplified method allowed by the SEC, which approximates our historical experience. The estimated annual dividend was based on the recent dividend payout trend. Compensation expenses of $14.9 million and $4.8 million were recorded in General and administrative expenses for the years ended December 31, 2019 and 2018 , respectively. Cash in the amount of $13.4 million and $0.1 million was paid out for SPR exercises in 2019 and 2018 , respectively. A liability of $14.9 million reflecting the estimated fair value of future pay-outs has been included as a component of Accrued expenses and other liabilities on the consolidated balance sheets. Activity related to the Company’s SPRs during the year ended December 31, 2019 was as follows: Number of SPRs Weighted Average Exercise Price Outstanding on December 31, 2018 958,521 $ 19.75 Granted 26,825 30.78 Exercised (379,567 ) 9.65 Cancelled (5,918 ) 27.15 Outstanding on December 31, 2019 599,861 26.56 Exercisable on December 31, 2019 523,084 $ 26.50 The SPRs outstanding had an intrinsic value of $15.3 million as of December 31, 2019 . Unrecognized compensation cost related to non-vested SPRs was $1.0 million at December 31, 2019 , which will be recognized over a weighted average period of 1.2 years. During the year ended December 31, 2019 , 47,779 SPRs with a fair value of $1.4 million vested. At December 31, 2019 , the weighted average remaining contractual term was 3.0 years for all outstanding SPRs and 2.5 years for all exercisable SPRs. Restricted Stock Awards Restricted stock awards ("RSAs") generally vest over a one to three year period beginning on the first anniversary of the date of the grant. Upon vesting, the vested restricted stock awards are exchanged for an equal number of the Company’s common stock. The participants have no voting or dividend rights with the restricted stock awards. The restricted stock awards are valued at the closing price of the common stock on the date of grant and the expense is recorded ratably over the vesting period. Compensation expenses of $1.3 million and $1.4 million related to the RSAs were recorded in General and administrative expenses for 2019 and 2018 , respectively. Activity related to the Company’s RSAs during the year ended December 31, 2019 was as follows: Restricted Stock Awards Outstanding on December 31, 2018 119,256 Granted 26,826 Exchanged for common shares (47,493 ) Forfeited (7,680 ) Outstanding on December 31, 2019 90,909 As of December 31, 2019 , there was $0.8 million of total unrecognized compensation cost related to RSAs that will be recognized over a weighted average period of 1.0 year . The awards granted in 2019 had a weighted average grant date fair value of $36.68 per share. Market Stock Units Market Stock Units ("MSUs") are exchangeable for between 0% to 150% of the Company's common shares at the end of the vesting period based on the trailing 60 day average closing price of the Company's common stock. The value of the MSUs was determined using a geometric brownian motion model that, based on certain variables, generates a large number of random trials simulating the price of the common stock over the measurement period. Expenses of $1.2 million related to MSUs were recorded in General and administrative expenses in both of the years ended December 31, 2019 and 2018 . Activity related to the Company’s MSUs during the year ended December 31, 2019 was as follows: Number of Market Stock Units Maximum Shares Potentially Issuable Outstanding on December 31, 2018 193,135 279,542 Granted 41,855 62,784 Exchanged for stock (89,179 ) (128,573 ) Cancelled (6,168 ) (9,252 ) Maximum vs. earned (1) — (26,383 ) Outstanding on December 31, 2019 139,643 178,118 (1) Difference between 150% of common stock that was potentially realizable for MSUs when originally granted and the actual amount of common stock that was earned on the vesting date. Stock Options Each stock option can be exchanged for one share of the Company’s common stock at the stated exercise price. Expense related to stock options was $0.1 million in both 2019 and 2018 . Unrecognized compensation at December 31, 2019 was $0.1 million . Upon vesting, stock options are recognized as a component of equity. Activity related to stock options during the year ended December 31, 2019 was as follows: Number of Stock Options Weighted average exercise price Outstanding on December 31, 2018 83,471 27.14 Exercised (2,372 ) 14.04 Forfeited (1,099 ) 14.04 Outstanding on December 31, 2019 80,000 27.70 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Information The Company operates in two separate reportable segments because of differences in the businesses financial characteristics and the methods they employ to deliver product to customers. The operating segments are reviewed by the Company’s chief operating decision maker responsible for reviewing operating performance and allocating resources. The Lawson segment primarily relies on its large network of sales representatives to visit the customer at the customers' location and produce sales orders for product that is then shipped to the customer and also provides VMI services. The Bolt segment primarily sells product to customers when the customers visit one of Bolt's 14 branch locations and the product is delivered to the customers at the point of sale. The Bolt segment total assets include the value of the acquired intangibles and the related amortization within its operating income. Financial information for the Company's reportable segments follows: (Dollars in thousands) Year Ended December 31, 2019 2018 Net sales Lawson $ 329,367 $ 313,095 Bolt 41,418 36,542 Consolidated total $ 370,785 $ 349,637 Gross profit Lawson $ 181,567 $ 175,517 Bolt 15,787 14,023 Consolidated total $ 197,354 $ 189,540 Operating Income Lawson $ 6,483 $ 7,500 Bolt 2,583 1,710 Consolidated total 9,066 9,210 Interest expense (603 ) (1,009 ) Other income (expense), net 1,211 (1,338 ) Income before income taxes $ 9,674 $ 6,863 Capital expenditures Lawson $ 1,522 $ 1,907 Bolt 506 617 Consolidated total $ 2,028 $ 2,524 Depreciation and amortization Lawson $ 4,757 $ 6,008 Bolt 1,136 847 Consolidated total $ 5,893 $ 6,855 Total assets Lawson $ 168,803 $ 169,216 Bolt 44,174 36,067 Investment in Subsidiary (8,548 ) (8,141 ) Consolidated total $ 204,429 $ 197,142 Financial information related to the Company’s continuing operations by geographic area follows: (Dollars in Thousands) Year Ended December 31, 2019 2018 Net sales (1) United States $ 295,675 $ 279,917 Canada 75,110 69,720 Consolidated total $ 370,785 $ 349,637 Long-lived assets (2) United States $ 25,478 $ 25,539 Canada 35,849 31,507 Consolidated total $ 61,327 $ 57,046 (1) Net sales are attributed to countries based on the location of customers. (2) Long-lived assets primarily consist of property, plant and equipment, goodwill, intangibles, right of use assets and other assets. |
Treasury Share Repurchase (Note
Treasury Share Repurchase (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Treasury Share Repurchase [Abstract] | |
Treasury Stock [Text Block] | Note 19 – Stock Repurchase Program In the second quarter of 2019, our Board of Directors authorized a program in which the Company may repurchase up to $7.5 million of the Company's common stock from time to time in open market transactions, privately negotiated transactions or by other methods. In 2019, the Company purchased 32,362 shares of common stock at an average purchase price of $38.13 under the repurchase program. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts Schedule II Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Schedule II -Valuation and Qualifying Accounts The roll forward of valuation accounts were as follows: (Dollars in thousands) Description Balance at Beginning of Period Charged to Costs and Expenses Deductions Balance at End of Period Allowance for doubtful accounts: (1) Year ended December 31, 2019 $ 549 $ 623 $ (579 ) $ 593 Year ended December 31, 2018 $ 476 $ 695 $ (622 ) $ 549 Valuation allowance for deferred tax assets: Year ended December 31, 2019 $ 2,569 $ — $ (1,334 ) $ 1,235 Year ended December 31, 2018 $ 2,556 $ 13 $ — $ 2,569 (1) Deductions reflect uncollected receivables written off, net of recoveries and translation adjustments. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of consolidation | The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and include the accounts and transactions of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Cash equivalents | The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The carrying amount of the Company’s cash equivalents at December 31, 2019 approximates fair value. |
Allowance for doubtful accounts | The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filings, substantial down-grading of credit ratings), a specific reserve for bad debts is recorded against amounts due to reduce the receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes reserves for bad debts based on the Company’s historical experience of bad debt write-offs as a percent of accounts receivable outstanding. |
Inventories | Inventories principally consist of finished goods stated at the lower of cost or net realizable value using the first-in-first-out method for the Lawson segment and weighted average for the Bolt segment. To reduce the cost basis of inventory to a lower of cost or net realizable value, a reserve is recorded for slow-moving and obsolete inventory based on historical experience and monitoring of current inventory activity. Estimates are used to determine the necessity of recording these reserves based on periodic detailed analysis using both qualitative and quantitative factors. As part of this analysis, the Company considers several factors including the inventories length of time on hand, historical sales, product shelf life, product life cycle, product category and product obsolescence. |
Property, plant and equipment | Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation expense is computed primarily by the straight-line method for buildings, machinery and equipment, furniture and fixtures and vehicles. The Company estimates useful lives of 20 to 40 years for buildings and improvements and 3 to 10 years for machinery and equipment, furniture and fixtures and vehicles. Amortization of financing and capital leases is included in depreciation expense. Depreciation expense was $3.9 million and $4.8 million for 2019 and 2018 respectively. Capitalized software is amortized over estimated useful lives of 3 to 5 years using the straight-line method. Amortization expense of capitalized software was $0.6 million and $1.1 million for 2019 and 2018 respectively. |
Cash value of life insurance | The Company has invested funds in life insurance policies on certain current and former employees. The cash surrender value of the policies is invested in various investment instruments and is recorded as an asset on our consolidated balance sheet. The Company records these funds at contractual value. The change in the cash surrender value of the life insurance policies, which is recorded as a component of General and administrative expenses, is the change in the policies' contractual values. |
Deferred compensation | The Company’s Executive Deferral Plan (“Deferral Plan”) allows certain executives to defer payment of a portion of their earned compensation. The deferred compensation is recorded in an Account Balance, which is a bookkeeping entry made by the Company to measure the amount due to the participant. The Account Balance is equal to the participant’s deferred compensation, adjusted for increases and/or decreases in the amount that the participant has designated to one or more bookkeeping portfolios that track the performance of certain mutual funds. Lawson adjusts the deferred compensation liability to equal the contractual value of the participants’ Account Balances. These adjustments are the changes in contractual value of the individual plans and are recorded as a component of General and administrative expenses. |
Stock-based compensation | Compensation based on the share value of the Company’s common stock is valued at its fair value at the grant date and the expense is recognized over the vesting period. Fair value is re-measured each reporting period for liability-classified awards that may be redeemable in cash. |
Goodwill | Goodwill — The Company had $20.9 million and $20.1 million of goodwill in 2019 and 2018 , respectively. Goodwill represents the cost of business acquisitions in excess of the fair value of identifiable net tangible and intangible assets acquired. Goodwill is allocated to the appropriate reporting unit as reviewed by the Company’s segment managers. The Company reviews goodwill for potential impairment annually on December 1 st , or when an event or other circumstances change that would more likely than not reduce the fair value of the asset below its carrying value. The first step in the multi-step process to determine if goodwill has been impaired and to what degree is to review the relevant qualitative factors that could cause the fair value of the reporting unit to decrease below the carrying value of the reporting unit. After reviewing the qualitative factors relevant to the reporting units, including conditions surrounding the industry we operate in compared to when the acquisitions were completed, the financial performance of the reporting units compared to our projected results, and macroeconomic conditions as a whole, we have determined that it is more likely than not that the fair value of the reporting units exceed their carrying value, therefore goodwill has not been impaired and no further steps need to be taken. Intangible Assets — The Company's intangible assets consist of trade names, and customer relationships. Intangible assets are amortized over weighted average 15 and 11 year estimated useful lives for trade names and customer relationships, respectively. |
Impairment of long-lived assets | The Company reviews its long-lived assets, including property, plant and equipment and definite life intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be recoverable. Recoverability is measured by a comparison of the assets' carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment to be recognized is measured based on the amount by which the carrying amount of the asset exceeds its fair value. No triggering events or impairments occurred in 2019. In 2018 the Company determined that a triggering event had occurred when it determined that it would most likely exercise its put option on a building of a previously discontinued operation in Decatur, Alabama. Accordingly, the Company recorded an impairment charge of $0.2 million in 2018 based upon the anticipated proceeds less its carrying value. |
Income taxes | Deferred tax assets or liabilities reflect temporary differences between amounts of assets and liabilities for financial and tax reporting. Such amounts are adjusted, as appropriate, to reflect changes in enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is established to offset any deferred tax assets if, based upon the available evidence, it is more likely than not (i.e. greater than 50% likely) that some or all of the deferred tax assets will not be realized. The determination of the amount of a valuation allowance to be provided on recorded deferred tax assets involves estimates regarding (1) the timing and amount of the reversal of taxable temporary differences, (2) expected future taxable income, (3) the impact of tax planning strategies and (4) the ability to carry back deferred tax assets to offset prior taxable income. In assessing the need for a valuation allowance, we consider all available positive and negative evidence, including past operating results, projections of future taxable income and the feasibility of ongoing tax planning strategies. The projections of future taxable income include a number of estimates and assumptions regarding our volume, pricing and costs. Additionally, valuation allowances related to deferred tax assets can be impacted by changes to tax laws. Significant judgment is required in determining income tax provisions as well as deferred tax asset and liability balances, including the estimation of valuation allowances and the evaluation of tax positions. Earnings from the Company's foreign subsidiaries are considered to be indefinitely reinvested. A distribution of these non-U.S. earnings in the form of dividends or otherwise would subject the Company to foreign withholding taxes and may subject the Company to U.S. federal and state taxes. The Company recognizes the benefit of tax positions when a benefit is more likely than not (i.e., greater than 50% likely) to be sustained on its technical merits. Recognized tax benefits are measured at the largest amount that is more likely than not to be sustained, based on cumulative probability, in final settlement of the position. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. |
Leases | |
Sub-leases [Policy Text Block] | |
Earnings per share | Earnings per Share — Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution from the exercise or conversion of outstanding stock options, market stock units and restricted stock awards into common stock. |
Foreign Currency | The accounts of foreign subsidiaries are measured using the local currency as the functional currency. All balance sheet amounts are translated into U.S. dollars using the exchange rates in effect at the applicable period end. Components of income or loss are translated using the average exchange rate for each reporting period. Gains and losses resulting from changes in the exchange rates from translation of the subsidiary accounts in local currency to U.S. dollars are reported as a component of Accumulated other comprehensive income or loss in the consolidated balance sheets. Gains and losses resulting from the effect of exchange rate changes on transactions denominated in currencies other than the functional currency are included as a component of net income or loss upon settlement of the transaction. Gains and losses resulting from intercompany transactions are included as a component of net income or loss each reporting period unless the transactions are of a long-term-investment nature and settlement is not planned or anticipated in the foreseeable future, in which case the gains and losses are recorded as a component of accumulated other comprehensive income or loss in the consolidated balance sheets. |
Treasury stock | The Company repurchased 32,362 of its common stock in 2019 through its previously announced stock repurchase plan. The Company repurchased 64,252 and 16,512 shares of its common stock in 2019 and 2018 , respectively from employees upon the vesting of restricted stock to offset the income taxes owed by those employees. The Company accounts for treasury stock using the cost method and includes treasury stock as a component of stockholders’ equity. The cost of the common stock repurchased and held in treasury was $4.5 million and $0.5 million in 2019 and 2018 , respectively. |
Acquisitions | Acquisitions — The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions for the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. |
Use of estimates | Use of Estimates — Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported for service revenue, service cost, allowance for doubtful accounts, inventory reserves, goodwill and intangible assets valuation, and income taxes in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which revises the requirements for how an entity should measure credit losses on financial instruments. The pronouncement is effective for smaller reporting companies in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and the new guidance will be applied on a prospective basis. The Company is still evaluating the effect the adoption of the new standard will have on its financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Disaggregated revenue by product type follows: Unaudited Year Ended December 31, Product Category 2019 2018 Fastening systems 24% 24% Fluid power 15% 14% Cutting tools and abrasives 13% 15% Specialty chemicals 11% 12% Electrical 11% 11% Aftermarket automotive supplies 8% 8% Safety 5% 5% Welding and metal repair 2% 2% Other 11% 9% 100% 100% |
Leases Net Lease Cost (Tables)
Leases Net Lease Cost (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Lease Cost [Abstract] | |
Lease, Cost [Table Text Block] | The expenses and income generated by the leasing activity of Lawson as lessee for the year ended December 31, 2019 were as follows (Dollars in thousands): Lease Type Classification Expense / (Income) Consolidated Operating Lease Expense (1) Operating expenses $ 4,729 Consolidated Financing Lease Amortization Operating expenses 206 Consolidated Financing Lease Interest Interest expense 30 Consolidated Financing Lease Expense 236 Sublease Income (2) Operating expenses (160 ) Net Lease Cost $ 4,805 (1) Includes variable lease payments and short term lease expenses (2) Sublease income from sublease of a portion of the Company headquarters. The sublease was terminated in June 2019 and the Company has no other subleases The Company recorded $3.3 million of operating lease expenses for the year ended December 31, 2018 . The expenses and income generated by the leasing activity of Lawson as lessee for the year ended December 31, 2019 were as follows (Dollars in thousands): Lease Type Classification Expense / (Income) Consolidated Operating Lease Expense (1) Operating expenses $ 4,729 Consolidated Financing Lease Amortization Operating expenses 206 Consolidated Financing Lease Interest Interest expense 30 Consolidated Financing Lease Expense 236 Sublease Income (2) Operating expenses (160 ) Net Lease Cost $ 4,805 (1) Includes variable lease payments and short term lease expenses (2) Sublease income from sublease of a portion of the Company headquarters. The sublease was terminated in June 2019 and the Company has no other subleases The Company recorded $3.3 million of operating lease expenses for the year ended December 31, 2018 . |
Leases Net Lease Assets and Lia
Leases Net Lease Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lease Assets and Liabilities [Line Items] | |
Lease Assets and Liabilities [Table Text Block] | The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands): Lease Type Amount Total ROU operating lease assets (1) $ 10,592 Total ROU financing lease assets (2) 654 Total lease assets $ 11,246 Total current operating lease obligation $ 3,591 Total current financing lease obligation 239 Total current lease obligations $ 3,830 Total long term operating lease obligation $ 9,133 Total long term financing lease obligation 371 Total long term lease obligation $ 9,504 (1) Operating lease assets are recorded net of accumulated amortization of $1.2 million as of December 31, 2019 (2) Financing lease assets are recorded net of accumulated amortization of $0.2 million as of December 31, 2019 |
Lease Assets and Liabilities Disclosure [Table Text Block] | The value of the net assets and liabilities generated by the leasing activity of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands): Lease Type Amount Total ROU operating lease assets (1) $ 10,592 Total ROU financing lease assets (2) 654 Total lease assets $ 11,246 Total current operating lease obligation $ 3,591 Total current financing lease obligation 239 Total current lease obligations $ 3,830 Total long term operating lease obligation $ 9,133 Total long term financing lease obligation 371 Total long term lease obligation $ 9,504 (1) Operating lease assets are recorded net of accumulated amortization of $1.2 million as of December 31, 2019 (2) Financing lease assets are recorded net of accumulated amortization of $0.2 million as of December 31, 2019 |
Leases Value of Lease Liabiliti
Leases Value of Lease Liabilities (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lease Assets and Liabilities [Abstract] | ||
Schedule of Future Minimum Lease Payments [Table Text Block] | The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands): Year Ended December 31, Operating Leases Financing Leases Total 2020 $ 4,136 $ 267 $ 4,403 2021 4,169 202 4,371 2022 3,099 122 3,221 2023 1,437 61 1,498 2024 482 5 487 Thereafter 600 — 600 Total lease payments 13,923 657 14,580 Less: Interest 1,199 47 1,246 Present value of lease liabilities $ 12,724 $ 610 $ 13,334 | |
Lessee, Operating Lease and Finance Lease, Liability, Maturity [Table Text Block] | The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands): Year Ended December 31, Operating Leases Financing Leases Total 2020 $ 4,136 $ 267 $ 4,403 2021 4,169 202 4,371 2022 3,099 122 3,221 2023 1,437 61 1,498 2024 482 5 487 Thereafter 600 — 600 Total lease payments 13,923 657 14,580 Less: Interest 1,199 47 1,246 Present value of lease liabilities $ 12,724 $ 610 $ 13,334 | The Company's future minimum lease commitments, principally for facilities and equipment, as of December 31, 2018 were as follows: (Dollars in thousands) Year ended December 31, Operating Leases Financing Lease Capital Leases 2019 $ 2,574 $ 1,395 $ 201 2020 2,369 1,444 155 2021 2,349 1,493 91 2022 2,008 760 11 2023 1,130 — — Thereafter 374 — — Total $ 10,804 $ 5,092 $ 458 |
Leases Lease Terms and Interest
Leases Lease Terms and Interest Rate (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lease Terms and Interest Rate [Abstract] | |
Lease Terms and Interest Rates [Table Text Block] | The weighted average lease terms and interest rates of the leases held by Lawson as of December 31, 2019 are as follows: Lease Type Weighted Average Term in Years Weighted Average Interest Rate Operating Leases 3.8 5.1% Financing Leases 2.9 5.5% |
Leases Lease Cash Flows (Tables
Leases Lease Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lease Cash Flows [Line Items] | |
Lease Cash Flows [Table Text Block] | The cash outflows of the leasing activity of Lawson as lessee for the year ending December 31, 2019 are as follows (Dollars in thousands): Cash Flow Source Classification Amount Operating cash flows from operating leases Operating activities $ 4,949 Operating cash flows from financing leases Operating activities 30 Financing cash flows from financing leases Financing activities 271 Subsequent to the adoption of ASC 842 in 2019 the Company recorded a non-cash transaction to establish $1.7 million of operating ROU assets, for which $1.7 million of operating lease liabilities were incurred. Also, in 2019 the Company recorded a non-cash transaction to establish $0.4 million of financing ROU assets, for which $0.4 million of financing lease liabilities were incurred. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of inventories | (Dollars in thousands) December 31, 2019 2018 Inventories, gross $ 60,500 $ 58,215 Reserve for obsolete and excess inventory (4,595 ) (5,328 ) Inventories, net $ 55,905 $ 52,887 |
Property, Plant and Equipment P
Property, Plant and Equipment Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment | Components of property, plant and equipment were as follows: (Dollars in thousands) December 31, 2019 2018 Land $ 2,625 $ 2,565 Buildings and improvements 15,356 16,858 Machinery and equipment 24,509 23,955 Capitalized software 22,136 21,738 Furniture and fixtures 5,673 5,884 Vehicles 155 190 McCook facility — 12,961 Capital leases — 684 Construction in progress 683 391 71,137 85,226 Accumulated depreciation and amortization (54,591 ) (61,678 ) $ 16,546 $ 23,548 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill [Abstract] | |
Schedule of Goodwill [Table Text Block] | Goodwill activity related to acquisitions is included in the table below: (Dollars in thousands) December 31, 2019 2018 Beginning balance $ 20,079 $ 19,614 Impact of foreign exchange 854 (1,452 ) Acquisition (1) — 2,086 Adjustment to prior year allocation (2) (10 ) (169 ) Ending balance $ 20,923 $ 20,079 (1) The $2.1 million addition to goodwill in 2018 was due to the allocation of costs to acquire Screw Products. (2) The reduction of $0.2 million in 2018 resulted from an adjustment to goodwill created by the Bolt acquisition in 2017. |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated aggregate amortization expense for each of the next five years are as follows: (Dollars in thousands) Year Amortization 2020 $ 1,495 2021 1,611 2022 1,406 2023 1,292 2024 1,196 Thereafter 5,335 $ 12,335 |
Intangible Assets Disclosure [Text Block] | Intangible assets The gross carrying amount and accumulated amortization by intangible asset class were as follows: (Dollars in thousands) (Dollars in thousands) December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 8,422 $ (2,020 ) $ 6,402 $ 8,090 $ (1,447 ) $ 6,643 Customer relationships 7,337 (1,404 ) 5,933 7,114 (645 ) 6,469 $ 15,759 $ (3,424 ) $ 12,335 $ 15,204 $ (2,092 ) $ 13,112 Amortization expense of $1.3 million and $0.9 million related to intangible assets was recorded in General and administrative expenses for 2019 and 2018 , respectively. The estimated aggregate amortization expense for each of the next five years are as follows: (Dollars in thousands) Year Amortization 2020 $ 1,495 2021 1,611 2022 1,406 2023 1,292 2024 1,196 Thereafter 5,335 $ 12,335 The gross carrying amount and accumulated amortization by intangible asset class were as follows: (Dollars in thousands) (Dollars in thousands) December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 8,422 $ (2,020 ) $ 6,402 $ 8,090 $ (1,447 ) $ 6,643 Customer relationships 7,337 (1,404 ) 5,933 7,114 (645 ) 6,469 $ 15,759 $ (3,424 ) $ 12,335 $ 15,204 $ (2,092 ) $ 13,112 |
Intangible assets Schedule of i
Intangible assets Schedule of intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible Assets Disclosure [Text Block] | Intangible assets The gross carrying amount and accumulated amortization by intangible asset class were as follows: (Dollars in thousands) (Dollars in thousands) December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 8,422 $ (2,020 ) $ 6,402 $ 8,090 $ (1,447 ) $ 6,643 Customer relationships 7,337 (1,404 ) 5,933 7,114 (645 ) 6,469 $ 15,759 $ (3,424 ) $ 12,335 $ 15,204 $ (2,092 ) $ 13,112 Amortization expense of $1.3 million and $0.9 million related to intangible assets was recorded in General and administrative expenses for 2019 and 2018 , respectively. The estimated aggregate amortization expense for each of the next five years are as follows: (Dollars in thousands) Year Amortization 2020 $ 1,495 2021 1,611 2022 1,406 2023 1,292 2024 1,196 Thereafter 5,335 $ 12,335 The gross carrying amount and accumulated amortization by intangible asset class were as follows: (Dollars in thousands) (Dollars in thousands) December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 8,422 $ (2,020 ) $ 6,402 $ 8,090 $ (1,447 ) $ 6,643 Customer relationships 7,337 (1,404 ) 5,933 7,114 (645 ) 6,469 $ 15,759 $ (3,424 ) $ 12,335 $ 15,204 $ (2,092 ) $ 13,112 |
Intangible assets Future amorti
Intangible assets Future amortization expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Future intangible asset amortization expense [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated aggregate amortization expense for each of the next five years are as follows: (Dollars in thousands) Year Amortization 2020 $ 1,495 2021 1,611 2022 1,406 2023 1,292 2024 1,196 Thereafter 5,335 $ 12,335 |
Income Taxes Income Tax (Tables
Income Taxes Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income (loss) from continuing operations before income taxes | Income from operations before income taxes consisted of the following: (Dollars in thousands) Year Ended December 31, 2019 2018 United States $ 5,418 $ 6,839 Canada 4,256 24 $ 9,674 $ 6,863 |
Components of provision (benefit) for income taxes | Provision (benefit) for income taxes from operations for the years ended December 31, consisted of the following: (Dollars in thousands) Year Ended December 31, 2019 2018 Current income tax expense: U.S. state $ 136 $ 165 Canada 291 257 Total $ 427 $ 422 Deferred income tax expense (benefit): U.S. federal $ 2,012 $ 721 U.S. state 303 (464 ) Canada (289 ) (30 ) Total $ 2,026 $ 227 Total income tax expense (benefit): U.S. federal $ 2,012 $ 721 U.S. state 439 (299 ) Canada 2 227 Total $ 2,453 $ 649 |
Reconciliation between effective income tax rate and statutory federal rate | The reconciliation between the effective income tax rates and the statutory federal rates for operations are as follows: Year Ended December 31, 2019 2018 Statutory Federal rate 21.0 % 21.0 % Increase (decrease) resulting from: Change in valuation allowance - current period activity (4.5 ) 3.7 Change in valuation allowance - reversal (13.6 ) — Capital loss 13.6 — Stock compensation (11.5 ) (4.5 ) Compensation deduction limitation 10.1 — State and local taxes, net 4.5 4.7 Foreign income inclusion 3.1 (13.3 ) Meals & entertainment 1.8 2.4 Change in uncertain tax positions (1.0 ) (1.4 ) Provision to return differences 0.2 (9.3 ) Foreign currency loss — 2.5 Alternative minimum tax — 1.4 Other items, net 1.7 2.3 Provision for income taxes 25.4 % 9.5 % |
Deferred tax assets and liabilities | Deferred income tax assets and liabilities contain the following temporary differences: (Dollars in thousands) December 31, 2019 2018 Deferred tax assets: Net operating loss carryforward $ 7,786 $ 9,878 Compensation and benefits 9,947 9,598 Inventory reserve 1,589 1,769 Accounts receivable reserve 152 142 Lease assets 3,326 — Capital loss carryforward — 1,317 Other 146 457 Total deferred tax assets 22,946 23,161 Deferred tax liabilities: Intangible assets 2,360 2,478 Lease liabilities 2,850 — Property, plant and equipment 353 (20 ) Other 625 303 Total deferred liabilities 6,188 2,761 Net deferred tax assets before valuation allowance 16,758 20,400 Valuation allowance (1,235 ) (2,569 ) Net deferred tax assets $ 15,523 $ 17,831 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (Dollars in thousands) December 31, 2019 2018 Balance at beginning of year $ 3,612 $ 4,255 Additions for tax positions of current year 13 43 Additions for tax positions of prior years 121 85 Reductions for tax positions of prior year (29 ) (771 ) Lapse of statute of limitations (475 ) — Balance at end of year $ 3,242 $ 3,612 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other liabilities | Accrued expenses and other liabilities consisted of the following: (Dollars in thousands) December 31, 2019 2018 Accrued stock-based compensation (stock performance rights) $ 14,908 $ 13,458 Accrued compensation 9,238 10,740 Accrued and withheld taxes, other than income taxes 4,387 1,674 Accrued profit sharing 916 899 Accrued severance 778 304 Deferred revenue 648 693 Accrued health benefits 578 614 Environmental remediation accrual 20 1,376 Financing lease obligation (1) — 1,207 Other 7,838 9,214 $ 39,311 $ 40,179 |
Revolving Line of Credit (Table
Revolving Line of Credit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt covenants [Table Text Block] | Quarterly Financial Covenants Requirement Actual EBITDA to fixed charges ratio 1.15 : 1.00 10.76 : 1.00 Total net leverage ratio 3.25 : 1.00 0.00 : 1.00 |
Reserve for Severance (Tables)
Reserve for Severance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Severance Reserve [Abstract] | |
Changes in the reserve for severance | The table below reflects the activity in the Company’s reserve for severance and related payments. (Dollars in thousands) Year Ended December 31, 2019 2018 Beginning balance $ 359 $ 483 Charged to earnings 1,756 849 Cash paid (1,206 ) (973 ) Ending balance $ 909 $ 359 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Schedule of future minimum lease payments | The value of the lease liabilities generated by the leasing activities of Lawson as lessee as of December 31, 2019 were as follows (Dollars in thousands): Year Ended December 31, Operating Leases Financing Leases Total 2020 $ 4,136 $ 267 $ 4,403 2021 4,169 202 4,371 2022 3,099 122 3,221 2023 1,437 61 1,498 2024 482 5 487 Thereafter 600 — 600 Total lease payments 13,923 657 14,580 Less: Interest 1,199 47 1,246 Present value of lease liabilities $ 12,724 $ 610 $ 13,334 | The Company's future minimum lease commitments, principally for facilities and equipment, as of December 31, 2018 were as follows: (Dollars in thousands) Year ended December 31, Operating Leases Financing Lease Capital Leases 2019 $ 2,574 $ 1,395 $ 201 2020 2,369 1,444 155 2021 2,349 1,493 91 2022 2,008 760 11 2023 1,130 — — Thereafter 374 — — Total $ 10,804 $ 5,092 $ 458 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions [Abstract] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | The following table contains unaudited pro forma net sales and net income for Lawson Products assuming the Screw Products acquisition closed on January 1, 2017. (Dollars in thousands) Year Ended December 31, 2019 2018 Net Sales Actual $ 370,785 $ 349,637 Pro forma (unaudited) $ 370,785 $ 351,916 Net income Actual $ 7,221 $ 6,214 Pro forma (unaudited) $ 7,221 $ 6,674 The pro forma disclosures in the table above include adjustments for, amortization of intangible assets, interest expense, tax expenses and the impact of pro forma adjustments and acquisition costs to reflect results that are more representative of the combined results of the transactions as if the Screw Products acquisition closed on January 1, 2017. This pro forma information utilizes certain estimates, is presented for illustrative purposes only and may not be indicative of the results of operation that would have actually occurred. In addition, future results may vary significantly from the results reflected in the pro forma information. The unaudited pro forma financial information does not reflect the impact of future events that may occur after the acquisition, such as anticipated cost savings from operating synergies. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans Stock-Based Compensation Plans (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Valuation assumptions | The weighted-average estimated value of SPRs outstanding as of December 31, 2019 was $25.34 per SPR using the following assumptions: Expected volatility 32.1% to 40.70% Risk-free rate of return 1.6% to 1.7% Expected term (in years) 0.5 to 4.5 Expected annual dividend $0 | |
Activity related to SPRs | Activity related to the Company’s SPRs during the year ended December 31, 2019 was as follows: Number of SPRs Weighted Average Exercise Price Outstanding on December 31, 2018 958,521 $ 19.75 Granted 26,825 30.78 Exercised (379,567 ) 9.65 Cancelled (5,918 ) 27.15 Outstanding on December 31, 2019 599,861 26.56 Exercisable on December 31, 2019 523,084 $ 26.50 | |
Activity related to RSAs | Activity related to the Company’s RSAs during the year ended December 31, 2019 was as follows: Restricted Stock Awards Outstanding on December 31, 2018 119,256 Granted 26,826 Exchanged for common shares (47,493 ) Forfeited (7,680 ) Outstanding on December 31, 2019 90,909 | |
MSU Rollforward | Market Stock Units ("MSUs") are exchangeable for between 0% to 150% of the Company's common shares at the end of the vesting period based on the trailing 60 day average closing price of the Company's common stock. The value of the MSUs was determined using a geometric brownian motion model that, based on certain variables, generates a large number of random trials simulating the price of the common stock over the measurement period. Expenses of $1.2 million related to MSUs were recorded in General and administrative expenses in both of the years ended December 31, 2019 and 2018 . Activity related to the Company’s MSUs during the year ended December 31, 2019 was as follows: Number of Market Stock Units Maximum Shares Potentially Issuable Outstanding on December 31, 2018 193,135 279,542 Granted 41,855 62,784 Exchanged for stock (89,179 ) (128,573 ) Cancelled (6,168 ) (9,252 ) Maximum vs. earned (1) — (26,383 ) Outstanding on December 31, 2019 139,643 178,118 | |
Stock Option Activity Table | Stock Options Each stock option can be exchanged for one share of the Company’s common stock at the stated exercise price. Expense related to stock options was $0.1 million in both 2019 and 2018 . Unrecognized compensation at December 31, 2019 was $0.1 million . Upon vesting, stock options are recognized as a component of equity. Activity related to stock options during the year ended December 31, 2019 was as follows: Number of Stock Options Weighted average exercise price Outstanding on December 31, 2018 83,471 27.14 Exercised (2,372 ) 14.04 Forfeited (1,099 ) 14.04 Outstanding on December 31, 2019 80,000 27.70 |
Segment Information Geographic
Segment Information Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Geographic Information [Abstract] | |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | Financial information related to the Company’s continuing operations by geographic area follows: (Dollars in Thousands) Year Ended December 31, 2019 2018 Net sales (1) United States $ 295,675 $ 279,917 Canada 75,110 69,720 Consolidated total $ 370,785 $ 349,637 Long-lived assets (2) United States $ 25,478 $ 25,539 Canada 35,849 31,507 Consolidated total $ 61,327 $ 57,046 (1) Net sales are attributed to countries based on the location of customers. (2) Long-lived assets primarily consist of property, plant and equipment, goodwill, intangibles, right of use assets and other assets. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial information for the Company's reportable segments follows: (Dollars in thousands) Year Ended December 31, 2019 2018 Net sales Lawson $ 329,367 $ 313,095 Bolt 41,418 36,542 Consolidated total $ 370,785 $ 349,637 Gross profit Lawson $ 181,567 $ 175,517 Bolt 15,787 14,023 Consolidated total $ 197,354 $ 189,540 Operating Income Lawson $ 6,483 $ 7,500 Bolt 2,583 1,710 Consolidated total 9,066 9,210 Interest expense (603 ) (1,009 ) Other income (expense), net 1,211 (1,338 ) Income before income taxes $ 9,674 $ 6,863 Capital expenditures Lawson $ 1,522 $ 1,907 Bolt 506 617 Consolidated total $ 2,028 $ 2,524 Depreciation and amortization Lawson $ 4,757 $ 6,008 Bolt 1,136 847 Consolidated total $ 5,893 $ 6,855 Total assets Lawson $ 168,803 $ 169,216 Bolt 44,174 36,067 Investment in Subsidiary (8,548 ) (8,141 ) Consolidated total $ 204,429 $ 197,142 |
Financial information by geographic area, continuing operations | Financial information related to the Company’s continuing operations by geographic area follows: (Dollars in Thousands) Year Ended December 31, 2019 2018 Net sales (1) United States $ 295,675 $ 279,917 Canada 75,110 69,720 Consolidated total $ 370,785 $ 349,637 Long-lived assets (2) United States $ 25,478 $ 25,539 Canada 35,849 31,507 Consolidated total $ 61,327 $ 57,046 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||
Depreciation | $ 3,900 | $ 4,800 | |||
Amortization expense of capitalized software | $ 600 | $ 1,100 | |||
Property, Plant and Equipment [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Shars Repurchased Under Share Repurchase Plan | 32,362 | ||||
Shares Paid for Tax Withholding for Share Based Compensation | 64,252 | 16,512 | |||
Impairment of Long-Lived Assets Held-for-use | $ 200 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (1,937) | $ 329 | |||
Shares repurchased held in treasury | (4,527) | $ (523) | |||
Goodwill | 20,923 | 20,079 | $ 19,614 | ||
Treasury Stock, Value, Acquired, Cost Method | $ (4,527) | (523) | |||
Buildings and improvements | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 20 years | ||||
Buildings and improvements | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 40 years | ||||
Machinery and equipment, furniture and fixtures, and vehicles | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Machinery and equipment, furniture and fixtures, and vehicles | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 10 years | ||||
Capitalized software | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Capitalized software | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 5 years | ||||
Treasury Stock | |||||
Property, Plant and Equipment [Line Items] | |||||
Treasury Stock, Value, Acquired, Cost Method | $ (4,527) | $ (523) | |||
Stock Compensation Plan [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 46,067 | ||||
Trade Names [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 15 years | ||||
Customer Relationships [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 11 years |
Revenue Recognition Narrative (
Revenue Recognition Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1,937 | $ (329) | ||
Decrease in retained earnings | $ 86,496 | $ 77,338 | ||
Operating income | $ 9,066 | $ 9,210 | ||
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1,937 | $ (329) |
Revenue Recognition Impact of A
Revenue Recognition Impact of ASC 606 on Consolidated Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Product and Service [Domain] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Service cost | $ 155,304 | $ 145,493 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 370,785 | $ 349,637 |
Fastening Systems | Sales Revenue, Net | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Cutting Tools and Abrasives | Sales Revenue, Net | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Fluid Power | Sales Revenue, Net | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Specialty Chemicals | Sales Revenue, Net | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Electrical | Sales Revenue, Net | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Aftermarket Automotive Supplies | Sales Revenue, Net | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Safety | Sales Revenue, Net | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Welding and Metal Repair | Sales Revenue, Net | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Other | Sales Revenue, Net | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Sales [Member] | Sales Revenue, Net | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 295,675 | $ 279,917 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 75,110 | $ 69,720 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||||
Operating Leases, Future Minimum Payments Due | $ 13,923 | $ 10,804 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (1,937) | $ 329 | ||
Retained Earnings | ||||
Lessee, Lease, Description [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (1,937) | $ 329 |
Leases Net Lease Cost (Details)
Leases Net Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net Lease Cost [Abstract] | ||
Operating Lease, Cost | $ 4,729 | $ 3,329 |
Finance Lease, Right-of-Use Asset, Amortization | 206 | |
Finance Lease, Interest Expense | 30 | |
Finance Lease, Cost | 236 | |
Sublease Income | (160) | |
Lease, Cost | $ 4,805 |
Leases Lease Assets and Liabili
Leases Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Lease Assets and Liabilities [Abstract] | ||
Operating Lease, Right-of-Use Asset, Accumulated Depreciation | $ 1,216 | |
Operating Lease, Right-of-Use Asset | 10,592 | |
Finance Lease, Right-of-Use Asset | 654 | |
Right of use assets | 11,246 | $ 0 |
Operating Lease, Liability, Current | 3,591 | |
Finance Lease, Liability, Current | 239 | |
Lease obligation | 3,830 | $ 0 |
Operating Lease, Liability, Noncurrent | 9,133 | |
Finance Lease, Liability, Noncurrent | 371 | |
Lease Liability, Noncurrent | 9,504 | |
Finance Lease, Right-of-Use Asset, Accumulated Depreciation | $ 205 |
Leases Schedule of Future Minim
Leases Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Future Minimum Lease Payments [Abstract] | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 4,136 | $ 2,574 |
Finance Lease, Liability, Payments, Due Next Twelve Months | 267 | 1,395 |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 201 | |
Net Lease Liability, Payments, Remainder of Fiscal Year | 4,403 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 4,169 | 2,369 |
Finance Lease, Liability, Payments, Due Year Two | 202 | 1,444 |
Capital Leases, Future Minimum Payments Due in Two Years | 155 | |
Net Lease Liability, Payments, Due Year Two | 4,371 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 3,099 | 2,349 |
Finance Lease, Liability, Payments, Due Year Three | 122 | 1,493 |
Capital Leases, Future Minimum Payments Due in Three Years | 91 | |
Net Lease Liability, Payments, Due Year Three | 3,221 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 1,437 | 2,008 |
Finance Lease, Liability, Payments, Due Year Four | 61 | 760 |
Capital Leases, Future Minimum Payments Due in Four Years | 11 | |
Net Lease Liability, Payments, Due Year Four | 1,498 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 482 | 1,130 |
Finance Lease, Liability, Payments, Due Year Five | 5 | 0 |
Capital Leases, Future Minimum Payments Due in Five Years | 0 | |
Net Lease Liabilities, Payments, Due Year Five | 487 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 600 | 374 |
Finance Lease, Liability, Payments, Due after Year Five | 0 | 0 |
Capital Leases, Future Minimum Payments Due Thereafter | 0 | |
Net Lease Liability, Payments, Due after Year Five | 600 | |
Operating Leases, Future Minimum Payments Due | 13,923 | 10,804 |
Finance Lease, Liability, Payments, Due | 657 | 5,092 |
Net Lease Liability, Payments Due | 14,580 | |
Operating Lease, Imputed Interest | 1,199 | |
Finance Lease, Imputed Interest | 47 | |
Net Lease Liability, Imputed Interest | 1,246 | |
Lessee, Operating Lease, Liability, Present Value | 12,724 | |
Finance Lease, Liability, Present Value | 610 | |
Net Lease Liability, Present Value | $ 13,334 | |
Capital Leases, Future Minimum Payments Due | $ 458 |
Leases Lease Terms and Intere_2
Leases Lease Terms and Interest Rate (Details) | Dec. 31, 2019 |
Lease Terms and Interest Rate [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 9 months 18 days |
Operating Lease, Weighted Average Discount Rate, Percent | 5.00% |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 10 months 24 days |
Finance Lease, Weighted Average Discount Rate, Percent | 5.50% |
Leases Lease Cash Flows (Detail
Leases Lease Cash Flows (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Cash Flows [Abstract] | |
Operating cash flows from operating leases | $ 4,949 |
Operating cash flow from financing leases | 30 |
Financing cash flow from financing leases | $ 271 |
Restricted Cash Restricted Ca_2
Restricted Cash Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Restricted Cash [Abstract] | ||
Restricted Cash and Cash Equivalents, Current | $ 802 | $ 800 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Components of inventories | ||
Total | $ 60,500 | $ 58,215 |
Reserve for obsolete and excess inventory | (4,595) | (5,328) |
Inventories, net | $ 55,905 | $ 52,887 |
Property, Plant and Equipment_2
Property, Plant and Equipment Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 71,137 | $ 85,226 |
Accumulated depreciation and amortization, | (54,591) | (61,678) |
Property, plant and equipment, less accumulated depreciation and amortization | 16,546 | 23,548 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,625 | 2,565 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 15,356 | 16,858 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 24,509 | 23,955 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 22,136 | 21,738 |
McCook facility | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 0 | 12,961 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,673 | 5,884 |
Capital leases | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 0 | 684 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 155 | 190 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 683 | $ 391 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Abstract] | |||
Goodwill | $ 20,923 | $ 20,079 | $ 19,614 |
Goodwill, Acquired During Period | 0 | 2,086 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 854 | (1,452) | |
Goodwill, Purchase Accounting Adjustments | $ (10) | $ (169) |
Intangible assets (Details)
Intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets [Abstract] | ||
Amortization of Intangible Assets | $ 1,300 | $ 900 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 1,495 |
Intangible assets Schedule of_2
Intangible assets Schedule of intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 15,759 | $ 15,204 |
Finite-Lived Intangible Assets, Accumulated Amortization | (3,424) | (2,092) |
Finite-Lived Intangible Assets, Net | 12,335 | 13,112 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 8,422 | 8,090 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,020) | (1,447) |
Finite-Lived Intangible Assets, Net | 6,402 | 6,643 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 7,337 | 7,114 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,404) | (645) |
Finite-Lived Intangible Assets, Net | $ 5,933 | $ 6,469 |
Intangible assets Future intang
Intangible assets Future intangible amortization schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Future intangible amortization schedule [Abstract] | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 1,495 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,611 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,406 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,292 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,196 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 5,335 | |
Finite-Lived Intangible Assets, Net | $ 12,335 | $ 13,112 |
Income Taxes Components of inco
Income Taxes Components of income tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income (loss) from continuing operations before income taxes | ||
United States | $ 5,418 | $ 6,839 |
Canada | 4,256 | 24 |
Income (loss) from continuing operations before income taxes | 9,674 | 6,863 |
Current income tax expense (benefit): | ||
U.S. state | 136 | 165 |
Canada | 291 | 257 |
Total | 427 | 422 |
Deferred income tax expense (benefit): | ||
Deferred Federal Income Tax Expense (Benefit) | 2,012 | 721 |
Deferred State and Local Income Tax Expense (Benefit) | 303 | (464) |
Deferred Foreign Income Tax Expense (Benefit) | (289) | (30) |
Deferred Income Tax Expense (Benefit) | 2,026 | 227 |
Total income tax expense (benefit): | ||
Federal Income Tax Expense (Benefit), Continuing Operations | 2,012 | 721 |
State and Local Income Tax Expense (Benefit), Continuing Operations | 439 | (299) |
Foreign Income Tax Expense (Benefit), Continuing Operations | 2 | 227 |
Income Tax Expense (Benefit) | $ 2,453 | $ 649 |
Income Taxes Reconciliation of
Income Taxes Reconciliation of effective tax rate (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||
Statutory Federal rate | 21.00% | 21.00% |
Increase (decrease) resulting from: | ||
State and local taxes, net | 4.50% | 4.70% |
Change in valuation allowance | (4.50%) | 3.70% |
Change in deferred tax asset valuation allowance reversal | (13.60%) | 0.00% |
Effective Income Tax Rate Reconciliation, Capital Loss, Percent | 13.60% | 0.00% |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 3.10% | (13.30%) |
Meals & entertainment | 1.80% | 2.40% |
Alternative minimum tax | 0.00% | 1.40% |
Provision to return differences | 0.20% | (9.30%) |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 0.00% | 2.50% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | (11.50%) | (4.50%) |
Effective Income Tax Rate Reconciliation, Compensation Deduction Limitation, Percent | 10.10% | 0.00% |
Change in uncertain tax positions | (1.00%) | (1.40%) |
Other items, net | 1.70% | 2.30% |
Provision for income taxes | 25.40% | 9.50% |
Income Taxes Components of defe
Income Taxes Components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 7,786 | $ 9,878 |
Compensation and benefits | 9,947 | 9,598 |
Inventory reserve | 1,589 | 1,769 |
Capital Loss Carryforward | 0 | 1,317 |
Accounts receivable reserve | 152 | 142 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Deferred Rent | 3,326 | 0 |
Other | 146 | 457 |
Total deferred tax assets | 22,946 | 23,161 |
Deferred Tax Liabilities, Intangible Assets | 2,360 | 2,478 |
Deferred Tax Liabilities, Leasing Arrangements | 2,850 | 0 |
Deferred tax liabilities: | ||
Property, plant and equipment | 353 | (20) |
Other | 625 | 303 |
Total deferred liabilities | 6,188 | 2,761 |
Net deferred assets before valuation allowance | 16,758 | 20,400 |
Valuation allowance | (1,235) | (2,569) |
Net deferred assets | $ 15,523 | $ 17,831 |
Income Taxes Other information
Income Taxes Other information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 590 | $ 1,036 | |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 13,100 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 16,800 | ||
Undistributed Earnings of Foreign Subsidiaries | 3,900 | $ (8,400) | |
Goodwill | 20,923 | 20,079 | $ 19,614 |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (475) | 0 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | 3,612 | 4,255 | |
Additions for tax positions of current year | 13 | 43 | |
Additions for tax positions of prior years | 121 | 85 | |
Reductions for tax positions of prior years | (29) | (771) | |
Balance at end of year | $ 3,242 | $ 3,612 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued stock based compensation | $ 14,908 | $ 13,458 |
Accrued compensation | 9,238 | 10,740 |
Accrued severance | 778 | 304 |
Accrued and withheld taxes, other than income taxes | 4,387 | 1,674 |
Accrued Environmental Loss Contingencies, Current | 20 | 1,376 |
Financing lease obligation | 0 | 1,207 |
Accrued health benefits | 578 | 614 |
Accrued profit sharing | 916 | 899 |
Deferred Revenue | 648 | 693 |
Other | 7,838 | 9,214 |
Accrued Liabilities, Current | $ 39,311 | $ 40,179 |
Credit Agreement Quarterly Fina
Credit Agreement Quarterly Financial Covenants (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018 | |
Required Minimum Value [Member] | ||
Line of Credit Facility [Line Items] | ||
Minimum Debt Service Coverage Ratio | 1.15 | |
Schedule of minimum EBITDA level achievable on quarterly basis | ||
Minimum Net Leverage Ratio | 3.25 | |
Actual Value [Member] | ||
Schedule of minimum EBITDA level achievable on quarterly basis | ||
MinTangibleNetWorth | $ 0 | |
Maximum | Actual Value [Member] | ||
Line of Credit Facility [Line Items] | ||
EBITDA to Fixed Charges | 10.76 | |
Minimum | Required Minimum Value [Member] | ||
Line of Credit Facility [Line Items] | ||
EBITDA to Fixed Charges | 1 | |
Schedule of minimum EBITDA level achievable on quarterly basis | ||
Minimum Net Leverage Ratio | 1 | 1 |
Minimum | Actual Value [Member] | ||
Line of Credit Facility [Line Items] | ||
EBITDA to Fixed Charges | 1 |
Credit Agreement Narrative (Det
Credit Agreement Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | |||
Bank Overdrafts | $ 5,500 | ||
Secured Debt, Current | $ 0 | $ 10,823 | |
Credit Facility (Textual) [Abstract] | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 590 | $ 1,036 | |
Weighted average interest rate | 4.59% | ||
Letters of Credit Outstanding, Amount | $ 1,100 | ||
Maximum | |||
Credit Facility (Textual) [Abstract] | |||
Restricted Dividends | 7,000 | ||
Revolving Credit Facility [Member] | |||
Credit Facility (Textual) [Abstract] | |||
Credit facility, borrowing capacity | $ 40,000 | 100,000 | |
Letter of Credit [Member] | |||
Credit Facility (Textual) [Abstract] | |||
Credit facility, borrowing capacity | 150,000 | ||
Lawson [Member] | |||
Line of Credit Facility [Line Items] | |||
Secured Debt, Current | 2,271 | ||
Credit Facility (Textual) [Abstract] | |||
Credit Facility, remaining borrowing capacity | $ 96,700 | ||
Required Minimum Value [Member] | |||
Line of Credit Facility [Line Items] | |||
Minimum Net Leverage Ratio | 3.25 | ||
Required Minimum Value [Member] | Minimum | |||
Line of Credit Facility [Line Items] | |||
Minimum Net Leverage Ratio | 1 | 1 | |
Minimum | |||
Line of Credit Facility [Line Items] | |||
Minimum Net Leverage Ratio | 3.75 |
Reserve for Severance Activity
Reserve for Severance Activity in reserve (Details) - Employee Severance [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reserve for severance and related payments | ||
Balance at beginning of period | $ 359 | $ 483 |
Charged to earnings current year | 1,756 | 849 |
Cash paid and exchange rate variance | (1,206) | (973) |
Balance at end of the period | $ 909 | $ 359 |
Commitments and Contingencies F
Commitments and Contingencies Future minimum lease payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating leases: | ||
2020 | $ 4,136 | $ 2,574 |
2021 | 4,169 | 2,369 |
2022 | 3,099 | 2,349 |
2024 | 482 | 1,130 |
Thereafter | 600 | 374 |
Liability | 13,923 | 10,804 |
Financing lease: | ||
2020 | 267 | 1,395 |
2021 | 202 | 1,444 |
2022 | 122 | 1,493 |
2023 | 61 | 760 |
2024 | 5 | 0 |
Thereafter | 0 | 0 |
Total | 657 | $ 5,092 |
Capital leases: | ||
2020 | 4,403 | |
2021 | 4,371 | |
2022 | 3,221 | |
2023 | 1,498 | |
2024 | 487 | |
Thereafter | 600 | |
Total | $ 14,580 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Line Items] | ||
Total future minimum operating lease payments | $ 13,923 | $ 10,804 |
Property, plant and equipment, gross | 71,137 | 85,226 |
Accumulated depreciation and amortization | 54,591 | 61,678 |
Payments for Environmental Liabilities | 1,300 | |
Finance Lease, Liability, Payments, Due | 657 | 5,092 |
McCook facility | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Property, plant and equipment, gross | 0 | 12,961 |
Capital leases | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Property, plant and equipment, gross | $ 0 | $ 684 |
Retirement and Security Bonus_2
Retirement and Security Bonus Plans Retirement and Security Bonus Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
401k Employer matching contributions | $ 3,200 | $ 3,000 |
Defined Contribution Retirement Plan Discretionary Employer Contribution | 400 | 300 |
Employer contributions, profit sharing retirement plan | 800 | 700 |
Retirement and Security Bonus Plans | ||
Cash Surrender Value, Fair Value Disclosure | 6,800 | |
Security Bonus Plan | 12,000 | |
Security Bonus Liability, Current | 200 | |
Security bonus plan | $ 11,840 | 12,413 |
Security bonus plan | ||
Retirement and Security Bonus Plans | ||
Initial vesting percentage | 25.00% | |
Minimum vesting period | 5 years | |
Annual vesting percentage after initial period | 5.00% | |
Expense recognized | $ 500 | $ 600 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Gross | $ 0 | $ 5,307 |
Revenue, Net (Deprecated 2018-01-31) | 370,785 | 349,637 |
Goodwill, Acquired During Period | 0 | 2,086 |
Screw Products [Member] | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Gross | 5,150 | |
Finite-Lived Customer Relationships, Gross | 2,580 | |
Finite-Lived Trade Names, Gross | 470 | |
Revenue, Net (Deprecated 2018-01-31) | $ 2,600 | $ 600 |
Trade Names [Member] | Screw Products [Member] | ||
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Customer Relationships [Member] | Screw Products [Member] | ||
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Acquisitions Purchase Price All
Acquisitions Purchase Price Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pro Forma [Abstract] | ||
Payments to Acquire Businesses, Gross | $ 0 | $ 5,307 |
Goodwill, Acquired During Period | $ 0 | $ 2,086 |
Acquisitions Pro Forma Results
Acquisitions Pro Forma Results (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pro Forma [Abstract] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 370,785 | $ 349,637 |
Business Acquisition, Pro Forma Revenue | 370,785 | 351,916 |
Net Income (Loss) Attributable to Parent | 7,221 | 6,214 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 7,221 | $ 6,674 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans Plan Administration (Details) - 2009 Equity Compensation Plan | 12 Months Ended |
Dec. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant | 279,000 |
share based compensation plan maximum share grants to non-employee directors | 20,000 |
Maximum number of shares per employee | 125,000 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans Stock Performance Rights (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Performance Rights | ||
Accrued Employee Benefits, Current | $ 14,908,000 | $ 13,458,000 |
Valuation assumptions: | ||
Allocated Share-based Compensation Expense | 100,000 | 100,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid | 13,400,000 | 100,000 |
Weighted Average Exercise Price | ||
MSU Expense | $ 1,200,000 | 1,200,000 |
Stock Performance Rights | ||
Stock Performance Rights | ||
Weighted average estimated value of SPRs outstanding (per share) | $ 25.34 | |
Valuation assumptions: | ||
Expected volatility, minimum, percent | 32.10% | |
Expected volatility, maximum, percent | 40.70% | |
Risk-free rate of return, minimum | 1.60% | |
Risk-free rate of return, maximum | 1.70% | |
Expected annual dividend | $ 0 | |
Allocated Share-based Compensation Expense | $ 14,900,000 | $ 4,800,000 |
Number of SPRs | ||
Outstanding on December 31, 2018 | 958,521 | |
Granted | 26,825 | |
Exercised | (379,567) | |
Cancelled | (5,918) | |
Outstanding on December 31, 2019 | 599,861 | 958,521 |
Exercisable on December 31, 2019 | 523,084 | |
Weighted Average Exercise Price | ||
Outstanding on December 31, 2018 | $ 26.56 | $ 19.75 |
Granted | 30.78 | |
Exercised | 9.65 | |
Cancelled | 27.15 | |
Outstanding on December 31, 2019 | 26.56 | |
Exercisable on December 31, 2019 | $ 26.50 | |
SPRs outstanding, intrinsic value | $ 15,300,000 | |
Total unrecognized compensation cost | $ 1,000,000 | |
Unrecognized cost, period for recognition | 1 year 2 months 12 days | |
Exercised | 47,779 | |
Vested in period, fair value | $ 1,400,000 | |
Weighted average remaining contractual term, SPRs outstanding | 3 years | |
Weighted average remaining contractual term, SPRs exercisable | 2 years 6 months | |
Stock Performance Rights | Minimum | ||
Stock Performance Rights | ||
Life of award | 7 years | |
Award vesting period | 1 year | |
Valuation assumptions: | ||
Expected term | 6 months | |
Stock Performance Rights | Maximum | ||
Stock Performance Rights | ||
Award vesting period | 3 years | |
Valuation assumptions: | ||
Expected term | 4 years 6 months |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
MSU Expense | $ 1.2 | $ 1.2 |
Allocated Share-based Compensation Expense | $ 0.1 | $ 0.1 |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding on December 31, 2018 | 119,256 | |
Granted | 26,826 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (7,680) | |
Exchanged for common shares | (47,493) | |
Outstanding on December 31, 2019 | 90,909 | 119,256 |
Total unrecognized compensation cost | $ 0.8 | |
Unrecognized cost, period for recognition | 1 year | |
Granted | $ 36.68 | |
2009 Equity Compensation Plan | Restricted stock awards | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
2009 Equity Compensation Plan | Restricted stock awards | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Selling, general and administrative expenses | Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 1.3 | $ 1.4 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans Market Stock Units (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
MSU Expense | $ 1,200,000 | $ 1,200,000 |
Number of Market Stock Units | ||
Outstanding on December 31, 2018 | 193,135 | |
Granted | 41,855 | |
Exchanged for stock | (89,179) | |
Outstanding on December 31, 2019 | 139,643 | 193,135 |
Maximum Shares Potentially Issuable | ||
Outstanding on December 31, 2018 | 279,542 | |
Granted | 62,784 | |
Exchanged for stock | (128,573) | |
Outstanding on December 31, 2019 | 178,118 | 279,542 |
MSUs Cancelled | (6,168) | (9,252) |
MSU Shares Maximum vs Earned | 0 | |
MSU Potential Common Shares Issuable Change | (26,383) | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential Shares From MSU Vest | $ 0 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential Shares From MSU Vest | $ 1.50 | |
Trading days | 60 days |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Outstanding Stock Options | 80,000 | 83,471 |
Stock Options Exercised | (2,372) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 14.04 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (1,099) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 14.04 | |
Allocated Share-based Compensation Expense | $ 0.1 | $ 0.1 |
Weighted Average Exercise Price | ||
Outstanding on December 31, 2014 | $ 27.14 | |
Outstanding on December 31, 2015 | $ 27.70 | $ 27.14 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 0.1 |
Segment Information Segment (De
Segment Information Segment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 370,785,000 | $ 349,637,000 |
Gross Profit | 197,354,000 | 189,540,000 |
Operating Income (Loss) | 9,066,000 | 9,210,000 |
Interest Expense | (603,000) | (1,009,000) |
Other Nonoperating Income (Expense) | 1,211,000 | (1,338,000) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 9,674,000 | 6,863,000 |
Payments to Acquire Property, Plant, and Equipment | 2,028,000 | 2,524,000 |
Depreciation, Depletion and Amortization | 5,893,000 | 6,855,000 |
Assets | 204,429,000 | 197,142,000 |
Notes Receivable, Related Parties | (8,548,000) | (8,141,000) |
Lawson [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 329,367,000 | 313,095,000 |
Gross Profit | 181,567,000 | 175,517,000 |
Operating Income (Loss) | 6,483,000 | 7,500,000 |
Payments to Acquire Property, Plant, and Equipment | 1,522,000 | 1,907,000 |
Depreciation, Depletion and Amortization | 4,757,000 | 6,008,000 |
Assets | 168,803,000 | 169,216,000 |
Bolt [Member] [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 41,418,000 | 36,542,000 |
Gross Profit | 15,787,000 | 14,023,000 |
Operating Income (Loss) | 2,583,000 | 1,710,000 |
Payments to Acquire Property, Plant, and Equipment | 506,000 | 617,000 |
Depreciation, Depletion and Amortization | 1,136,000 | 847,000 |
Assets | $ 44,174,000 | $ 36,067,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 370,785,000 | $ 349,637,000 |
Interest Expense | 603,000 | 1,009,000 |
Gross Profit | 197,354,000 | 189,540,000 |
Operating Income (Loss) | 9,066,000 | 9,210,000 |
Long-Lived Assets | 61,327,000 | 57,046,000 |
Other Nonoperating Income (Expense) | 1,211,000 | (1,338,000) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 9,674,000 | 6,863,000 |
Payments to Acquire Property, Plant, and Equipment | 2,028,000 | 2,524,000 |
Depreciation, Depletion and Amortization | 5,893,000 | 6,855,000 |
Assets | 204,429,000 | 197,142,000 |
Notes Receivable, Related Parties | (8,548,000) | (8,141,000) |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 295,675,000 | 279,917,000 |
Long-Lived Assets | 25,478,000 | 25,539,000 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 75,110,000 | 69,720,000 |
Long-Lived Assets | 35,849,000 | 31,507,000 |
Lawson [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 329,367,000 | 313,095,000 |
Gross Profit | 181,567,000 | 175,517,000 |
Operating Income (Loss) | 6,483,000 | 7,500,000 |
Payments to Acquire Property, Plant, and Equipment | 1,522,000 | 1,907,000 |
Depreciation, Depletion and Amortization | 4,757,000 | 6,008,000 |
Assets | 168,803,000 | 169,216,000 |
Bolt [Member] [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 41,418,000 | 36,542,000 |
Gross Profit | 15,787,000 | 14,023,000 |
Operating Income (Loss) | 2,583,000 | 1,710,000 |
Payments to Acquire Property, Plant, and Equipment | 506,000 | 617,000 |
Depreciation, Depletion and Amortization | 1,136,000 | 847,000 |
Assets | $ 44,174,000 | $ 36,067,000 |
Treasury Share Repurchase (Deta
Treasury Share Repurchase (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Treasury Share Repurchase [Abstract] | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 7,500,000 | |
Shars Repurchased Under Share Repurchase Plan | 32,362 | |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 184,455 | 84,414 |
Treasury Stock, Shares, Acquired | 96,614 | 16,512 |
Treasury Stock Acquired, Average Cost Per Share | $ 38.13 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts: | ||
The roll forward of valuation accounts were as follows: | ||
Balance at beginning of period | $ 549 | $ 476 |
Charged to costs and expenses | 623 | 695 |
Deductions | (579) | (622) |
Balance at end of period | 593 | 549 |
Valuation allowance for deferred tax assets: | ||
The roll forward of valuation accounts were as follows: | ||
Balance at beginning of period | 2,569 | 2,556 |
Charged to costs and expenses | 0 | 13 |
Deductions | (1,334) | 0 |
Balance at end of period | $ 1,235 | $ 2,569 |
Uncategorized Items - laws-2019
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 5,216,000 |