Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 14, 2014 | Jun. 30, 2013 | |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'LCUT | ' | ' |
Entity Registrant Name | 'LIFETIME BRANDS, INC | ' | ' |
Entity Central Index Key | '0000874396 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 13,361,610 | ' |
Entity Public Float | ' | ' | $131,756,924 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $4,947 | $1,871 |
Accounts receivable, less allowances of $5,209 at December 31, 2013 and $3,996 at December 31, 2012 | 87,217 | 97,369 |
Inventory (Note M) | 112,791 | 104,584 |
Prepaid expenses and other current assets | 5,781 | 5,393 |
Deferred income taxes (Note I) | 3,940 | 3,542 |
TOTAL CURRENT ASSETS | 214,676 | 212,759 |
PROPERTY AND EQUIPMENT, net (Note M) | 27,698 | 31,646 |
INVESTMENTS (Note C) | 36,948 | 43,685 |
INTANGIBLE ASSETS, net (Note D) | 55,149 | 57,842 |
OTHER ASSETS | 2,268 | 2,865 |
TOTAL ASSETS | 336,739 | 348,797 |
CURRENT LIABILITIES | ' | ' |
Revolving Credit Facility (Note E) | ' | 7,000 |
Current maturity of Senior Secured Term Loan (Note E) | 3,937 | 4,375 |
Accounts payable | 21,426 | 18,555 |
Accrued expenses (Note M) | 41,095 | 33,354 |
Income taxes payable (Note I) | 3,036 | 3,615 |
TOTAL CURRENT LIABILITIES | 69,494 | 66,899 |
DEFERRED RENT & OTHER LONG-TERM LIABILITIES (Note M) | 18,644 | 21,565 |
DEFERRED INCOME TAXES (Note I) | 1,777 | 3,510 |
REVOLVING CREDIT FACILITY (Note E) | 49,231 | 53,968 |
SENIOR SECURED TERM LOAN (Note E) | 16,688 | 30,625 |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $.01 par value, shares authorized: 100 shares of Series A and 2,000,000 shares of Series B; none issued and outstanding | ' | ' |
Common stock, $.01 par value, shares authorized: 25,000,000; shares issued and outstanding: 12,777,407 at December 31, 2013 and 12,754,467 at December 31, 2012 | 128 | 128 |
Paid-in capital | 146,273 | 142,489 |
Retained earnings | 38,224 | 33,849 |
Accumulated other comprehensive loss (Note M) | -3,720 | -4,236 |
TOTAL STOCKHOLDERS' EQUITY | 180,905 | 172,230 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $336,739 | $348,797 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowances | $5,209 | $3,996 |
Preferred stock, par value | $0.01 | $0.01 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 12,777,407 | 12,754,467 |
Common stock, shares outstanding | 12,777,407 | 12,754,467 |
Preferred stock Series A | ' | ' |
Preferred stock, shares authorized | 100 | 100 |
Preferred stock, issued | ' | ' |
Preferred stock, outstanding | ' | ' |
Preferred stock Series B | ' | ' |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, issued | ' | ' |
Preferred stock, outstanding | ' | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales | $502,721 | $486,842 | $444,418 |
Cost of sales | 315,459 | 310,054 | 282,058 |
Gross margin | 187,262 | 176,788 | 162,360 |
Distribution expenses | 44,364 | 44,046 | 43,882 |
Selling, general and administrative expenses | 114,345 | 104,338 | 93,894 |
Restructuring expenses | 367 | ' | ' |
Intangible asset impairment (Note D) | ' | 1,069 | ' |
Income from operations | 28,186 | 27,335 | 24,584 |
Interest expense (Note E) | -4,847 | -5,898 | -7,758 |
Loss on early retirement of debt (Note E) | -102 | -1,363 | ' |
Income before income taxes and equity in earnings | 23,237 | 20,074 | 16,826 |
Income tax provision (Note I) | -9,175 | -5,208 | -6,122 |
Equity in (losses) earnings, net of taxes (Note C) | -4,781 | 6,081 | 3,362 |
NET INCOME | $9,281 | $20,947 | $14,066 |
BASIC INCOME PER COMMON SHARE (NOTE H) | $0.73 | $1.67 | $1.16 |
DILUTED INCOME PER COMMON SHARE (NOTE H) | $0.71 | $1.64 | $1.12 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Income | $9,281 | $20,947 | $14,066 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Translation adjustment (Note M) | -140 | 3,077 | -704 |
Deferred gains (losses) on cash flow hedges (Notes F & M): | ' | ' | ' |
Fair value adjustment, net of tax of $160 in 2013 and tax benefit of $182 in 2012 | 241 | -272 | ' |
Total deferred gains (losses) on cash flow hedges | 241 | -272 | ' |
Effect of retirement benefit obligations (Note M): | ' | ' | ' |
Net income (loss) arising from retirement benefit obligations, net of tax benefit of $241 in 2013 and tax of $791 in 2012 | 361 | -1,187 | ' |
Less: amortization of loss included in net income, net of tax of $36 in 2013 and $18 in 2012 | 54 | 27 | ' |
Total effects of retirement benefit obligations | 415 | -1,160 | ' |
Other comprehensive income (loss), net of tax | 516 | 1,645 | -704 |
Comprehensive income | $9,797 | $22,592 | $13,362 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair value adjustment, tax (benefit) | $160 | ($182) |
Net income (loss) arising from retirement benefit obligations, tax (benefit) | -241 | 791 |
Amortization of loss included in net income, tax | $36 | $18 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Paid-in capital | Retained earnings | Accumulated other comprehensive loss |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2010 | $127,606 | $121 | $131,350 | $1,312 | ($5,177) |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 12,065,000 | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' |
Net Income | 14,066 | ' | ' | 14,066 | ' |
Translation adjustment | -704 | ' | ' | ' | -704 |
Comprehensive income | 13,362 | ' | ' | ' | ' |
Shares issued to directors (Note G) (in shares) | ' | 21,000 | ' | ' | ' |
Shares issued to directors (Note G) | 183 | ' | 183 | ' | ' |
Stock compensation expense (Note G) | 2,612 | ' | 2,612 | ' | ' |
Issuance of common stock for acquisition of business (in shares) | ' | 256,000 | ' | ' | ' |
Issuance of common stock for acquisition of business | 3,100 | 3 | 3,097 | ' | ' |
Exercise of stock options (in shares) | 123,500 | 89,000 | ' | ' | ' |
Exercise of stock options | 225 | ' | 225 | ' | ' |
Dividends (Note G) | -913 | ' | ' | -913 | ' |
Ending Balance at Dec. 31, 2011 | 146,175 | 124 | 137,467 | 14,465 | -5,881 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 12,431,000 | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' |
Net Income | 20,947 | ' | ' | 20,947 | ' |
Translation adjustment | 3,077 | ' | ' | ' | 3,077 |
Derivative fair value adjustment (Note F) | -272 | ' | ' | ' | -272 |
Effect of retirement benefit obligations | -1,160 | ' | ' | ' | -1,160 |
Comprehensive income | 22,592 | ' | ' | ' | ' |
Shares issued to directors (Note G) (in shares) | ' | 23,000 | ' | ' | ' |
Shares issued to directors (Note G) | 267 | ' | 267 | ' | ' |
Stock compensation expense (Note G) | 2,526 | ' | 2,526 | ' | ' |
Issuance of common stock for acquisition of business (in shares) | ' | 144,000 | ' | ' | ' |
Issuance of common stock for acquisition of business | 1,507 | 1 | 1,506 | ' | ' |
Tax benefit (expense) on stock options, net | 150 | ' | 150 | ' | ' |
Exercise of stock options (in shares) | 199,823 | 156,000 | ' | ' | ' |
Exercise of stock options | 576 | 3 | 573 | ' | ' |
Dividends (Note G) | -1,563 | ' | ' | -1,563 | ' |
Ending Balance at Dec. 31, 2012 | 172,230 | 128 | 142,489 | 33,849 | -4,236 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 12,754,000 | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' |
Net Income | 9,281 | ' | ' | 9,281 | ' |
Translation adjustment | -140 | ' | ' | ' | -140 |
Derivative fair value adjustment (Note F) | 241 | ' | ' | ' | 241 |
Effect of retirement benefit obligations | 415 | ' | ' | ' | 415 |
Comprehensive income | 9,797 | ' | ' | ' | ' |
Shares issued to directors (Note G) (in shares) | ' | 21,000 | ' | ' | ' |
Shares issued to directors (Note G) | 277 | ' | 277 | ' | ' |
Stock compensation expense (Note G) | 2,604 | ' | 2,604 | ' | ' |
Reduction of tax benefit from stock options, net | -310 | ' | -310 | ' | ' |
Exercise of stock options (in shares) | 247,827 | 248,000 | ' | ' | ' |
Exercise of stock options | 1,215 | 2 | 1,213 | ' | ' |
Treasury Stock Repurchase (in shares) | ' | -246,000 | ' | ' | ' |
Treasury Stock Repurchase | -3,229 | -2 | ' | -3,227 | ' |
Dividends (Note G) | -1,679 | ' | ' | -1,679 | ' |
Ending Balance at Dec. 31, 2013 | $180,905 | $128 | $146,273 | $38,224 | ($3,720) |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 12,777,000 | ' | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical)(Common Stock) | 12 Months Ended | |
Dec. 31, 2011 | Dec. 31, 2012 | |
Creative Tops | Fred & Friends | |
Common stock issued | 255,908 | 143,568 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING ACTIVITIES | ' | ' | ' |
Net Income | $9,281 | $20,947 | $14,066 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Provision for doubtful accounts | 139 | 123 | -24 |
Depreciation and amortization | 10,415 | 9,324 | 8,397 |
Amortization of debt discount | ' | ' | 543 |
Amortization of financing costs | 528 | 649 | 802 |
Deferred rent | -962 | -668 | -133 |
Deferred income taxes | -2,275 | -3,011 | -1,218 |
Stock compensation expense | 2,881 | 2,793 | 2,795 |
Undistributed equity earnings | 5,354 | -5,665 | -2,896 |
Intangible asset impairment (Note D) | ' | 1,069 | ' |
Loss on early retirement of debt (Note E) | 102 | 1,363 | ' |
Changes in operating assets and liabilities (excluding the effects of business acquisitions) | ' | ' | ' |
Accounts receivable | 10,099 | -14,741 | 3,297 |
Inventory | -8,207 | 9,694 | -5,365 |
Prepaid expenses, other current assets and other assets | -449 | -529 | 318 |
Accounts payable, accrued expenses and other liabilities | 9,437 | -166 | -4,673 |
Income taxes payable | -579 | 1,515 | -3,722 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 35,764 | 22,697 | 12,187 |
INVESTING ACTIVITIES | ' | ' | ' |
Purchases of property and equipment | -3,842 | -4,955 | -4,959 |
Equity investments | ' | -2,765 | -5,123 |
Business acquisition, net of cash acquired | ' | -14,500 | -20,584 |
Net proceeds from sale of property | 11 | 27 | 31 |
NET CASH USED IN INVESTING ACTIVITIES | -3,831 | -22,193 | -30,635 |
FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from Revolving Credit Facility (Note E) | 220,222 | 183,600 | ' |
Repayments from Revolving Credit Facility (Note E) | -231,959 | -180,257 | ' |
Proceeds from Revolving Credit Facility, net (Note E) | ' | ' | 43,525 |
Proceeds from Senior Secured Term Loan (Note E) | ' | 35,000 | ' |
Repayments from Senior Secured Term Loan (Note E) | -14,375 | ' | ' |
Repayments of Term Loan (Note E) | ' | -40,000 | ' |
Repurchase of 4.75% convertible senior notes | ' | ' | -24,100 |
Payments for stock repurchase | -3,229 | ' | ' |
Financing Costs | ' | ' | -761 |
Cash dividends paid (Note G) | -1,515 | -1,249 | -913 |
Payment of capital lease obligations | ' | ' | -78 |
Proceeds from the exercise of stock options | 1,215 | 577 | 225 |
Excess tax benefit from stock options | 613 | 150 | ' |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | -29,028 | -2,179 | 17,898 |
Effect of foreign exchange on cash | 171 | 574 | 171 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 3,076 | -1,101 | -379 |
Cash and cash equivalents at beginning of year | 1,871 | 2,972 | 3,351 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $4,947 | $1,871 | $2,972 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies | ' |
NOTE A — SIGNIFICANT ACCOUNTING POLICIES | |
Organization and business | |
Lifetime Brands, Inc. (the “Company”) designs, sources and sells branded kitchenware, tableware and other products used in the home and markets its products under a number of brand names and trademarks, which are either owned or licensed by the Company or through retailers’ private labels. The Company markets and sells its products principally on a wholesale basis to retailers. The Company also markets and sells a limited selection of its products directly to consumers through its Pfaltzgraff®, Mikasa®, Lifetime Sterling® and The English Table Internet websites. | |
Basis of Presentation | |
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information and with the instructions to Form 10-K. | |
The accompanying consolidated financial statements include estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U.S. GAAP. The most significant of these estimates and assumptions relate to revenue recognition, allowances for doubtful accounts, reserves for sales returns and allowances and customer chargebacks, inventory mark-down provisions, impairment of tangible and intangible assets, stock option expense, estimates for unpaid healthcare claims, derivative valuations, accruals related to the Company’s tax positions and tax valuation allowances. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. | |
Principles of consolidation | |
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |
Foreign Currency | |
All foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated into U.S. dollars at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars at average exchange rates for the relevant period. Gains and losses resulting from translation are recorded as a component of accumulated other comprehensive gain (loss). Gains and losses from foreign currency transactions are recognized in selling, general and administrative expenses in the consolidated statements of operations. Foreign currency gain/loss was a $258,000 loss in 2013, $415,000 loss in 2012 and a $28,000 gain in 2011. | |
Revenue recognition | |
The Company sells products wholesale, to retailers and distributors, and retail, directly to consumers. Wholesale sales and retail direct sales are recognized when title passes to the customer, which is primarily at the shipping point for Wholesale sales and upon delivery to the customer for retail direct sales. Shipping and handling fees that are billed to customers in sales transactions are included in net sales and amounted to $1.4 million for each of the three years ended December 31, 2013, 2012 and 2011. Net sales exclude taxes that are collected from customers and remitted to the taxing authorities. | |
The Company offers various sales incentives and promotional programs to its customers from time to time in the normal course of business. These incentives and promotions typically include arrangements such as cooperative advertising, buydowns, volume rebates and discounts. These arrangements and an estimate of sales returns are reflected as reductions in net sales in the Company’s consolidated statements of operations. | |
Cost of sales | |
Cost of sales consist primarily of costs associated with the production and procurement of product, inbound freight costs, purchasing costs, royalties and other product procurement related charges. | |
Distribution expenses | |
Distribution expenses consist primarily of warehousing expenses and freight-out expenses. Freight-out expenses were $9.0 million, $8.5 million and $7.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. Handling costs of products sold are included in cost of sales. | |
Advertising expenses | |
Advertising expenses are expensed as incurred and are included in selling, general and administrative expenses. Advertising expenses were $757,000, $775,000 and $702,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Accounts receivable | |
The Company periodically reviews the collectability of its accounts receivable and establishes allowances for estimated losses that could result from the inability of its customers to make required payments. A considerable amount of judgment is required to assess the ultimate realization of these receivables including assessing the initial and on-going creditworthiness of the Company’s customers. The Company also maintains an allowance for anticipated customer deductions. The allowances for deductions are primarily based on contracts with customers. | |
However, in certain cases the Company does not have a formal contract and, therefore, customer deductions are non-contractual. To evaluate the reasonableness of non-contractual customer deductions, the Company analyzes currently available information and historical trends of deductions. | |
Inventory | |
Inventory consists principally of finished goods sourced from third-party suppliers. Inventory also includes finished goods, work in process and raw materials related to the Company’s manufacture of sterling silver products. Inventory is priced using the lower of cost (first-in, first-out basis) or market method. The Company estimates the selling price of its inventory on a product by product basis based on the current selling environment. If the estimated selling price is lower than the inventory’s cost, the Company reduces the value of the inventory to its net realizable value. | |
Property and equipment | |
Property and equipment is stated at cost. Property and equipment, other than leasehold improvements, is depreciated using the straight-line method over the estimated useful lives of the assets. Building and improvements are being depreciated over 30 years and machinery, furniture and equipment over periods ranging from 3 to 10 years. Leasehold improvements are amortized over the term of the lease or the estimated useful lives of the improvements, whichever is shorter. Advances paid towards the acquisition of property and equipment and the cost of property and equipment not ready for use before the end of the period are classified as construction in progress. | |
Cash equivalents | |
The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. | |
Concentration of credit risk | |
The Company’s cash and cash equivalents are potentially subject to concentration of credit risk. The Company maintains cash with several financial institutions that, in some cases, is in excess of Federal Deposit Insurance Corporation insurance limits. | |
Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of entities comprising the Company’s customer base. | |
During the years ended December 31, 2013, 2012 and 2011, Wal-Mart Stores, Inc. (including Sam’s Club and Asda Superstore, in the United Kingdom) accounted for 15%, 16% and 15% of net sales, respectively. Sales to Wal-Mart Stores, Inc. are included in the Company’s Wholesale segment. No other customer accounted for 10% or more of the Company’s sales during these periods. | |
Fair value measurements | |
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 820, Fair Value Measurements and Disclosures, provides enhanced guidance for using fair value to measure assets and liabilities and establishes a common definition of fair value, provides a framework for measuring fair value under U.S. generally accepted accounting principles and expands disclosure requirements about fair value measurements. Fair value measurements included in the Company’s consolidated financial statements relate to the Company’s annual goodwill and other intangible asset impairment tests and derivatives, described in Notes D and F, respectively. | |
Fair value of financial instruments | |
The Company determined the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable are reasonable estimates of their fair values because of their short-term nature. The Company determined that the carrying amounts of borrowings outstanding under its Revolving Credit Facility and Senior Secured Term Loan approximate fair value since such borrowings bear interest at variable market rates. | |
Derivatives | |
The Company accounts for derivative instruments in accordance with ASC Topic No. 815, Derivatives and Hedging. ASC Topic No. 815 requires that all derivative instruments be recognized on the balance sheet at fair value as either an asset or liability. Changes in the fair value of derivatives that qualify as hedges and have been designated as part of a hedging relationship for accounting purposes have no net impact on earnings to the extent the derivative is considered highly effective in achieving offsetting changes in fair value or cash flows attributable to the risk being hedged, until the hedge item is recognized in earnings. If the derivative which is designated as part of a hedging relationship is considered ineffective in achieving offsetting changes in fair value or cash flows attributable to the risk being hedged, the changes in fair value are recorded in operations. For derivatives that do not qualify or are not designated as hedging instruments for accounting purposes, changes in fair value are recorded in operations. | |
The Company is a party to interest rate swap agreements with an aggregate notional amount of $29.8 million to manage interest rate exposure in connection with its variable interest rate borrowings. The hedge period in the agreements commenced in March 2013 and expires in June 2018 and the notional amount amortizes over this period. The interest rate swap agreements were designated as cash flow hedges under ASC Topic No. 815. The effective portion of the fair value gain or loss on these agreements are recorded as a component of accumulated other comprehensive loss. The effect of recording these derivatives at fair value resulted in an unrealized gain of $241,000 and an unrealized loss of $272,000, net of taxes, for the years ended December 31, 2013 and 2012, respectively. No amounts recorded in accumulated other comprehensive loss are expected to be reclassified to interest expense in the next twelve months. | |
Goodwill, intangible assets and long-lived assets | |
Goodwill and intangible assets deemed to have indefinite lives are not amortized but, instead, are subject to an annual impairment assessment. Additionally, if events or conditions were to indicate the carrying value of a reporting unit may not be recoverable, the company would evaluate goodwill and other intangible assets for impairment at that time. As it relates to the goodwill assessment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment testing described in ASU Topic No. 350, Intangibles – Goodwill and Other. The second step is a quantitative test to measures the amount of impairment if there is an indication from the first step that one exists. The Company also evaluates qualitative factors to determine whether or not its indefinite lived intangibles have been impaired and then performs quantitative tests if required. These tests can include the royalty savings model or other valuation models. | |
Long-lived assets, including intangible assets deemed to have finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that such assets may have been impaired. Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated declines in revenue or operating profit or material adverse changes in the business climate that indicate that the carrying amount of an asset may be impaired. When impairment indicators are present, the Company compares the carrying value of the assets to the estimated discounted future cash flows expected to be generated by the assets. If the assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company considered indicators of impairment of its long-lived assets and determined that no such indicators were present at December 31, 2013. | |
Income taxes | |
The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company accounts for foreign income taxes based upon anticipated reinvestment of profits into respective foreign tax jurisdictions. | |
The Company applies the authoritative guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the Company’s financial statements. In accordance with this guidance, tax positions must meet a more-likely-than-not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position. A valuation allowance is required to be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. | |
Stock options | |
The Company measures compensation expense for all share-based compensation granted to employees and non-employee directors at fair value on the date of grant and recognizes compensation expense over the related service period for awards expected to vest. The Company uses the Black-Scholes option valuation model to estimate the fair value of its stock options. The Black-Scholes option valuation model requires the input of highly subjective assumptions including the expected stock price volatility of the Company’s common stock and the risk free interest rate. | |
Employee Healthcare | |
The Company self-insures certain portions of its health insurance plan. The Company maintains an accrual for estimated unpaid claims and claims incurred but not yet reported (“IBNR”). Although management believes that it uses the best information available to estimate IBNR claims, actual claims may vary significantly from estimated claims. | |
Restructuring Expenses | |
Costs associated with restructuring activities are recorded at fair value when a liability has been incurred. A liability has been incurred at the point of closure for any remaining operating lease obligations and at the communication date for severance. | |
In April 2013, the Company commenced a plan to close the Fred® & Friends distribution center and eliminate certain employee positions in conjunction with the closure. The Company recorded $367,000 of restructuring expenses during the year ended December 31, 2013 related to the execution of this plan. The Company does not anticipate that it will incur any further restructuring expenses related to this closure. | |
New Accounting Pronouncements | |
In July 2012, the FASB issued ASU No. 2012-02, Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, which permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative impairment test described in ASC Topic No. 350, Intangibles – Goodwill and Other. The amendments in this update are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company’s adoption of this guidance did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows. | |
Effective January 2013, the Company adopted ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income (e.g., net periodic pension benefit cost), an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. In connection with the adoption of this standard, the Company added additional disclosure about the Company’s accumulated other comprehensive income to Note M of its financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Acquisitions | ' | ||||
NOTE B — ACQUISITIONS | |||||
Fred® & Friends | |||||
On December 20, 2012, the Company acquired the Fred® & Friends (“F&F”). F&F designs and distributes novelty housewares under the Fred® brand directly to retailers throughout the United States and Canada. The assets, liabilities and operating results of F&F have been reflected in the Company’s consolidated financial statements in accordance with ASC Topic No. 805, Business Combinations, commencing from the acquisition date and did not significantly impact the Company’s consolidated financial results for the year ended December 31, 2012. | |||||
The purchase price was comprised of the following (in thousands): | |||||
Cash paid | $ | 14,500 | |||
Common stock issued | 1,507 | ||||
Value of contingent consideration | 5,370 | ||||
Total purchase price | $ | 21,377 | |||
The cash portion of the purchase price was funded by borrowings under the Company’s credit facility (“Revolving Credit Facility”). The value of contingent consideration represents the present value of estimated contingent payments of $4.0 million related to the attainment of certain gross contribution targets for the years 2013 through 2016 and the present value of the contractual holdback amount of $1.4 million, which serves as security for payments in satisfaction of any claim. The maximum undiscounted deferred and contingent consideration to be paid under the agreement is $7.7 million. See Note M for amounts accrued as of December 31, 2013 related to contingent consideration. | |||||
The purchase price has been allocated based on management’s estimate of the fair value of the assets acquired and liabilities assumed, as follows (in thousands): | |||||
Purchase | |||||
Price | |||||
Allocation | |||||
Accounts receivable(1) | $ | 5,003 | |||
Inventory | 3,941 | ||||
Other assets | 360 | ||||
Other liabilities | (1,519 | ) | |||
Goodwill and other intangibles | 13,592 | ||||
Total allocated value | $ | 21,377 | |||
Note: | |||||
-1 | The fair value of accounts receivable approximated the gross contractual amounts receivable. | ||||
On the basis of estimated fair values, the excess of the purchase price over the net assets acquired of $13.6 million has been allocated as follows: $7.2 million for customer relationships, $3.9 million for trade names and $2.5 million for goodwill. The goodwill recognized results from such factors as an assembled workforce and the value of other synergies expected from combining operations with the Company. The total amount of goodwill is expected to be deductible for tax purposes. All of the goodwill and other intangibles are included in the Wholesale segment. Customer relationships and trade names are amortized on a straight-line basis over their estimated useful lives (see Note D). | |||||
Creative Tops | |||||
On November 4, 2011, the Company acquired 100% of the share capital of each of Creative Tops Holdings Limited and Creative Tops Far East Limited (collectively, “Creative Tops”) for £14.8 million ($23.7 million) of consideration, comprised of cash in the amount of £12.9 million ($20.6 million) and 255,908 shares of common stock with a value of £1.9 million ($3.1 million). Creative Tops is a leading UK-based supplier of private label and branded tableware and kitchenware products. The purpose of this acquisition was to expand the Company’s sale of products into Europe including growth in the sales of the traditional products of Creative Tops and new branded product offerings. The assets, liabilities and operating results of Creative Tops are reflected in the Company’s consolidated financial statements in accordance with ASC Topic No. 805, Business Combinations, commencing from the acquisition date. |
Equity_Investments
Equity Investments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity Investments | ' | ||||||||||||||||||||||||
NOTE C — EQUITY INVESTMENTS | |||||||||||||||||||||||||
The Company owns approximately 30% of the outstanding capital stock of Grupo Vasconia, S.A.B. (“Vasconia”) an integrated manufacturer of aluminum products and one of Mexico’s largest housewares companies. Shares of Vasconia’s capital stock are traded on the Bolsa Mexicana de Valores, the Mexican Stock Exchange (www.bmv.com.mx). The Quotation Key is VASCONI. The Company accounts for its investment in Vasconia using the equity method of accounting and records its proportionate share of Vasconia’s net income in the Company’s statement of operations. Accordingly, the Company has recorded its proportionate share of Vasconia’s net income (reduced for amortization expense related to the customer relationships acquired) for the years ended December 31, 2013, 2012 and 2011 in the accompanying consolidated statements of operations. The value of the Company’s investment balance has been translated from Mexican Pesos (“MXN”) to U.S. Dollars (“USD”) using the spot rate of MXN 13.06 and MXN 12.97 at December 31, 2013 and 2012, respectively. The Company’s proportionate share of Vasconia’s net income has been translated from MXN to USD using the average exchange rates of MXN 12.46 to 13.01, MXN 12.94 to 13.51 and MXN 11.74 to 13.62 during the years ended December 31, 2013, 2012 and 2011, respectively. The effect of the translation of the Company’s investment resulted in a (decrease) increase of the investment of $(0.3) million, $2.7 million and $(0.5) million during the years ended December 31, 2013, 2012 and 2011, respectively. These translation effects are recorded in accumulated other comprehensive loss. The Company received cash dividends of $571,000, $416,000 and $466,000 from Vasconia during the years ended December 31, 2013, 2012 and 2011, respectively. Included in prepaid expenses and other currents assets at December 31, 2012 are amounts due from Vasconia of $71,000. Included within accrued expenses at December 31, 2013 are amounts due to Vasconia of $152,000. | |||||||||||||||||||||||||
Summarized income statement information for the years ended December 31, 2013, 2012 and 2011, as well as summarized balance sheet information as of December 31, 2013 and 2012, for Vasconia in USD and MXN is as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Income Statement | USD | MXN | USD | MXN | USD | MXN | |||||||||||||||||||
Net Sales | $ | 159,574 | $ | 2,038,200 | $ | 168,712 | $ | 2,224,256 | $ | 132,310 | $ | 1,647,479 | |||||||||||||
Gross Profit | 28,775 | 367,944 | 38,134 | 497,413 | 38,143 | 476,501 | |||||||||||||||||||
Income from operations | 5,438 | 70,430 | 14,614 | 192,182 | 17,254 | 216,715 | |||||||||||||||||||
Net Income | 4,315 | 55,077 | 34,172 | 443,630 | 11,395 | 142,698 | |||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Balance Sheet | USD | MXN | USD | MXN | |||||||||||||||||||||
Current assets | $ | 100,227 | $ | 1,309,210 | $ | 106,953 | $ | 1,386,731 | |||||||||||||||||
Non-current assets | 75,659 | 988,289 | 75,511 | 979,059 | |||||||||||||||||||||
Current liabilities | 26,187 | 342,060 | 29,282 | 379,663 | |||||||||||||||||||||
Non-current liabilities | 39,033 | 509,868 | 44,405 | 575,746 | |||||||||||||||||||||
The Company recorded equity in (losses) earnings of Vasconia, net of taxes, of $(4.0) million, $6.9 million and $2.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. Equity in losses in 2013 includes a charge of $5.0 million, net of tax, for the reduction in Vasconia’s fair value, as discussed in the following paragraph. Equity in earnings of Vasconia in 2012 includes $4.1 million related to the Company’s portion of a bargain purchase gain recognized by Vasconia on its purchase of Almexa, an aluminum mill and manufacturer of aluminum foil, a $1.1 million tax benefit realized in the period and the reduction of the Company’s investment to fair value of $1.3 million, net of tax. | |||||||||||||||||||||||||
In 2013, as a result of a decline in the quoted stock price and the 2013 quarterly decline in the operating results of Vasconia, the carrying amount of the Company’s investment in Vasconia exceeded its fair value and, therefore, the Company reduced its investment value by $5.0 million during the year ended December 31, 2013, net of tax, to its fair value. | |||||||||||||||||||||||||
In 2012, as a result of recording the bargain purchase gain and a corresponding increase in the investment, the Company determined it was necessary to perform an impairment test on its investment in Vasconia as of December 31, 2012. The test involved the assessment of the fair value of the Company’s investment in Vasconia based on Level 1 quoted prices in active markets. The result of the assessment of the Company’s investment in Vasconia indicated that the carrying amount of the investment exceeded its quoted fair value and, therefore, was required to be reduced by $1.3 million, net of tax. | |||||||||||||||||||||||||
As of December 31, 2013, the fair value (based upon the quoted stock price) of the Company’s investment in Vasconia was $35.2 million. The carrying value of the Company’s investment in Vasconia was $30.5 million. | |||||||||||||||||||||||||
The Company owns a 40% equity interest in GS Internacional S/A (“GSI”), a leading wholesale distributor of branded housewares products in Brazil, which the Company acquired in December 2011. The Company recorded equity in losses of GSI, net of taxes, of $656,000 and $727,000 for the years ended December 31, 2013 and 2012, respectively. The operating results of GSI were not significant during the period of December 9, 2011 through December 31, 2011. As of December 31, 2013, the carrying value of the Company’s investment in GSI was $6.0 million. | |||||||||||||||||||||||||
The Company, together with Vasconia and unaffiliated partners, formed Housewares Corporation of Asia Limited (“HCA”), a Hong Kong-based company, to supply direct import kitchenware products to retailers in North, Central and South America. The Company initially invested $105,000 for a 40% equity interest in this entity during 2011. | |||||||||||||||||||||||||
The operating results of HCA were not significant through December 31, 2013. As of December 31, 2013, the carrying value of the Company’s investment in HCA was $144,000. | |||||||||||||||||||||||||
In February 2012, the Company entered into Grand Venture Holdings Limited (“Grand Venture”), a joint venture with Manweal Development Limited (“Manweal”), a Chinese corporation, to distribute Mikasa® products in China, which included an initial investment of $500,000. The Company and Manweal each own 50% of Grand Venture and have rights and obligations proportionate to their ownership percentage. The Company accounts for its investment in Grand Venture using the equity method of accounting and has recorded its proportionate share of Grand Venture’s net loss as equity in earnings in the Company’s consolidated statements of operations. The Company recorded equity in losses of the joint venture of $83,000 and $125,000 for the years ended December 31, 2013 and 2012, respectively. As of December 31, 2013, the carrying value of the Company’s investment in Grand Venture was $0.3 million. | |||||||||||||||||||||||||
The Company evaluated the disclosure requirements of ASC Topic No. 860, Transfers and Servicing, and determined that at December 31, 2013, the Company did not have a controlling voting interest or variable interest in any of its investments and therefore continued accounting for the investments using the equity method of accounting. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||
NOTE D — GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||||||
The Company’s intangible assets, all of which are included in the Wholesale segment, consist of the following (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Goodwill | $ | 5,085 | $ | — | $ | 5,085 | $ | 5,085 | $ | — | $ | 5,085 | |||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Trade names | 18,364 | — | 18,364 | 18,364 | — | 18,364 | |||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||
Licenses | 15,847 | (7,551 | ) | 8,296 | 15,847 | (7,096 | ) | 8,751 | |||||||||||||||||
Trade names | 10,056 | (2,677 | ) | 7,379 | 10,056 | (1,800 | ) | 8,256 | |||||||||||||||||
Customer relationships | 18,406 | (2,736 | ) | 15,670 | 18,406 | (1,409 | ) | 16,997 | |||||||||||||||||
Patents | 584 | (229 | ) | 355 | 584 | (195 | ) | 389 | |||||||||||||||||
Total | $ | 68,342 | $ | (13,193 | ) | $ | 55,149 | $ | 68,342 | $ | (10,500 | ) | $ | 57,842 | |||||||||||
The Company performed its 2013 annual impairment tests for its indefinite-lived intangible assets as of October 1, 2013. The test, which is required to be performed annually, involved the assessment of the fair market value of the Company’s indefinite-lived intangible assets based on Level 2 observable inputs, using a discounted cash flow approach, assuming a discount rate of 12.5%-14.0% and an average annual growth rate of 2.0%-3.5%. The result of the assessment of the Company’s indefinite-lived intangibles indicated that the fair values exceeded the carrying values as of October 1, 2013. In addition, as of October 1, 2013 and December 31, 2013, the Company assessed the carrying value of its goodwill and determined based on qualitative factors that no impairment existed. | |||||||||||||||||||||||||
During 2012, the Company’s home décor products line experienced a significant decline in sales. The Company believes the most significant factor was the reduction in retail space allocated to the category which has also contributed to pricing pressure. While the Company believes this market condition is not permanent, following a strategic review of the business, it has decided to re-brand a portion of the home décor products under the Mikasa® and Pfaltzgraff® trade names. As a result of these factors, the Company recorded an impairment charge of $1.1 million in its statement of operations in the third quarter of 2012 which reduced the book value of its Elements® trade name. | |||||||||||||||||||||||||
A summary of the activities related to the Company’s intangible assets for the year ended December 31, 2013 consists of the following (in thousands): | |||||||||||||||||||||||||
Intangible | Goodwill | Total | |||||||||||||||||||||||
Assets | Intangible | ||||||||||||||||||||||||
Assets and | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
Goodwill and Intangible Assets, December 31, 2011 | $ | 44,264 | $ | 2,673 | $ | 46,937 | |||||||||||||||||||
Acquisition of trade names | 3,940 | — | 3,940 | ||||||||||||||||||||||
Acquisition of customer relationships | 7,240 | — | 7,240 | ||||||||||||||||||||||
Goodwill from F&F acquisition | — | 2,412 | 2,412 | ||||||||||||||||||||||
Impairment of Elements® trade name | (1,069 | ) | — | (1,069 | ) | ||||||||||||||||||||
Amortization | (1,618 | ) | — | (1,618 | ) | ||||||||||||||||||||
Goodwill and Intangible Assets, December 31, 2012 | 52,757 | 5,085 | 57,842 | ||||||||||||||||||||||
Amortization | (2,693 | ) | — | (2,693 | ) | ||||||||||||||||||||
Goodwill and Intangible Assets, December 31, 2013 | $ | 50,064 | $ | 5,085 | $ | 55,149 | |||||||||||||||||||
The weighted-average amortization periods for the Company’s finite-lived intangible assets as of December 31, 2013 are as follows: | |||||||||||||||||||||||||
Years | |||||||||||||||||||||||||
Trade names | 15 | ||||||||||||||||||||||||
Licenses | 33 | ||||||||||||||||||||||||
Customer relationships | 14 | ||||||||||||||||||||||||
Patents | 17 | ||||||||||||||||||||||||
Estimated amortization expense for each of the five succeeding fiscal years is as follows (in thousands): | |||||||||||||||||||||||||
Year ending December 31, | |||||||||||||||||||||||||
2014 | 2,692 | ||||||||||||||||||||||||
2015 | 2,688 | ||||||||||||||||||||||||
2016 | 2,685 | ||||||||||||||||||||||||
2017 | 2,552 | ||||||||||||||||||||||||
2018 | 2,552 | ||||||||||||||||||||||||
Amortization expense for the years ended December 31, 2013, 2012 and 2011 was $2.7 million, $1.6 million and $0.8 million, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2013 | |
Debt | ' |
NOTE E — DEBT | |
Revolving Credit Facility | |
At December 31, 2013, the Company had a $175.0 million secured credit agreement (the “Revolving Credit Facility”), maturing on July 27, 2017, with a bank group led by JPMorgan Chase Bank, N.A. | |
Borrowings under the Revolving Credit Facility are secured by a first lien priority security interest in all of the assets of the Company and its domestic subsidiaries, including a pledge of the Company’s outstanding shares of stock in its subsidiaries (limited, in the case of its foreign subsidiaries, to 65.0% of the Company’s equity interests), except regarding the Company’s shares in its wholly-owned subsidiary LTB de Mexico, S.A. de C.V. (“LTB de Mexico”), which in turn holds the Company’s interest in Vasconia. Availability under the Revolving Credit Facility is subject to a borrowing base calculation equal to the sum of (i) 85.0% of eligible domestic accounts receivable, (ii) 85.0% of the net orderly liquidation value of eligible domestic inventory and (iii) the lesser of 50.0% of the orderly liquidation value of eligible trademarks and $25.0 million less reserves. The borrowing base is also subject to reserves that may be established by the administrative agent in its permitted discretion. | |
Borrowings under the Revolving Credit Facility bear interest, at the Company’s option, at one of the following rates: (i) the Alternate Base Rate, defined as the greater of the Prime Rate, Federal Funds Rate plus 0.5% or the Adjusted LIBO Rate plus 1.0%, plus a margin of 1.0% to 1.75%, or (ii) the Eurodollar Rate, defined as the Adjusted LIBO Rate plus a margin of 2.0% to 2.75%. The respective margins are based upon availability. Interest rates on outstanding borrowings at December 31, 2013 ranged from 2.125% to 4.25%. In addition, the Company pays a commitment fee of 0.375% to 0.50% on the unused portion of the Revolving Credit Facility. | |
The Revolving Credit Facility provides for customary restrictions and events of default. Restrictions include limitations on additional indebtedness, acquisitions, investments and payment of dividends, among others. Furthermore, if availability under the Revolving Credit Facility is less than $20.0 million, the Company will be required to maintain a minimum fixed charge coverage ratio of 1.10 to 1.00, which covenant would remain effective until availability is at least $23.5 million for a period of three consecutive months. | |
At December 31, 2013, borrowings outstanding under the Revolving Credit Facility were $49.2 million and open letters of credit were $1.3 million. Availability under the Revolving Credit Facility was approximately $87.8 million, or 50% of the total loan commitment at December 31, 2013. | |
The Company classifies a portion of the Revolving Credit Facility as a current liability if the Company’s intent and ability is to repay the loan from cash flows from operations which are expected to occur within the next 12 months. Repayments and borrowings under the facility can vary significantly from planned levels based on cash flow needs and general economic conditions. The Company expects that it will continue to borrow and repay funds, subject to availability, under the facility based on working capital and other corporate needs. | |
At December 31, 2013, the Company had $20.6 million outstanding under its senior secured credit agreement (the “Senior Secured Term Loan”), which was set to expire on July 27, 2018, with JPMorgan Chase Bank, N.A. The Senior Secured Term Loan bears interest, at the Company’s option, at the Alternate Base Rate (as defined) plus 4.00%, or the Adjusted LIBOR Rate (as defined) plus 5.00%. | |
The Senior Secured Term Loan provides that for any four consecutive fiscal quarters, (x) if EBITDA (as defined) is less than $34.0 million but equal to or greater than $30.0 million, the ratio of Indebtedness (as defined) to EBITDA shall not exceed 3.0 to 1.0 and (y) EBITDA shall not be less than $30.0 million. Capital expenditures are limited and for the year ended December 31, 2013, such limit is $9.0 million. | |
The Revolving Credit Facility and Senior Secured Term Loan provide for other customary restrictions and events of default. Restrictions include limitations on additional indebtedness, acquisitions, investments and payment of dividends, among others. The Company was in compliance with the financial covenants of the Senior Secured Term Loan and Revolving Credit Facility at December 31, 2013. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2013 | |
Derivatives | ' |
NOTE F — DERIVATIVES | |
The Company is a party to interest rate swap agreements with a notional amount of $29.8 million to manage interest rate exposure in connection with its variable interest rate borrowings. The hedge period in the agreements commences in March 2013 and expires in June 2018 and the notional amount amortizes over this period. The hedge provides for a fixed payment of interest at an annual rate of 1.05% in exchange for the Adjusted LIBOR Rate. In March 2013, based on the interest rate swap agreements, the Company commenced the payment of interest at a fixed annual rate of 6.05% related to its LIBOR borrowings. | |
The interest rate swap agreements were designated as a cash flow hedges under ASC Topic No. 815. The effective portion of the fair value gain or loss on these agreements is recorded as a component of accumulated other comprehensive loss. The effect of recording these derivatives at fair value resulted in an unrealized gain of $241,000 and an unrealized loss of $272,000, net of taxes, for the years ended December 31, 2013 and 2012, respectively. No amounts recorded in accumulated other comprehensive loss are expected to be reclassified to interest expense in the next twelve months. | |
The fair value of the derivatives has been obtained from the counterparties to the agreements and was based on Level 2 observable inputs using proprietary models and estimates about relevant future market conditions. The aggregate fair value of the Company’s derivative instruments was a liability of $54,000 and $454,000 at December 31, 2013 and 2012, of which $48,000 and $454,000 is included in other long-term liabilities at December 31, 2013 and 2012, respectively. |
Capital_Stock
Capital Stock | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Capital Stock | ' | ||||||||||||||||
NOTE G — CAPITAL STOCK | |||||||||||||||||
Long-term incentive plan | |||||||||||||||||
In June 2012, the shareholders of the Company approved an amendment to the Company’s 2000 Long-Term Incentive Plan (the “Plan”) to increase the shares available for grant by 700,000 shares to 4,200,000 shares. These shares of the Company’s common stock are available for grants to directors, officers, employees, consultants and service providers and affiliates in the form of stock options or other equity-based awards. The Plan authorizes the Board of Directors of the Company, or a duly appointed committee thereof, to issue incentive stock options, non-qualified options and other stock-based awards. Options that have been granted under the Plan expire over a range of five to ten years from the date of grant and vest over a range of up to five years from the date of grant. As of December 31, 2013, there were 643,073 shares available for the grant of awards. | |||||||||||||||||
Cash dividends | |||||||||||||||||
In March 2011, the Company resumed the declaration of cash dividends on its outstanding shares of common stock. | |||||||||||||||||
Dividends declared in 2013 and 2012 are as follows: | |||||||||||||||||
Dividend per share | Date declared | Date of record | Payment date | ||||||||||||||
$0.03 | 6-Mar-12 | 1-May-12 | 15-May-12 | ||||||||||||||
$0.03 | 13-Jun-12 | 1-Aug-12 | 15-Aug-12 | ||||||||||||||
$0.03 | 31-Jul-12 | 1-Nov-12 | 15-Nov-12 | ||||||||||||||
$0.03 | 2-Nov-12 | 1-Feb-13 | 15-Feb-13 | ||||||||||||||
$0.03 | 12-Mar-13 | 1-May-13 | 15-May-13 | ||||||||||||||
$0.03 | 13-Jun-13 | 1-Aug-13 | 15-Aug-13 | ||||||||||||||
$0.03 | 2-Aug-13 | 1-Nov-13 | 15-Nov-13 | ||||||||||||||
$0.04 | 31-Oct-13 | 31-Jan-14 | 14-Feb-14 | ||||||||||||||
On March 11, 2014, the Board of Directors declared a quarterly dividend of $0.0375 per share payable on May 15, 2014 to shareholders of record on May 1, 2014. | |||||||||||||||||
Stock repurchase program | |||||||||||||||||
On April 30, 2013, Lifetime’s Board of Directors authorized the repurchase of up to $10.0 million of the Company’s common stock. The repurchase authorization permits the Company to effect repurchases from time to time through open market purchases and privately negotiated transactions. During the year ended December 31, 2013, the Company repurchased 245,575 shares for a total cost of $3.2 million and thereafter retired the shares. | |||||||||||||||||
Preferred stock | |||||||||||||||||
The Company is authorized to issue 100 shares of Series A Preferred Stock and 2,000,000 shares of Series B Preferred Stock, none of which is issued or outstanding at December 31, 2013. | |||||||||||||||||
Restricted stock | |||||||||||||||||
In 2013, 2012 and 2011, the Company granted an aggregate of 22,459, 23,394 and 21,400 restricted shares, respectively, of the Company’s common stock to its non-employee directors representing payment of a portion of their annual retainer. The total fair value of the restricted shares, based on the number of shares granted and the quoted market prices of the Company’s common stock on the dates of grant was $298,000 in 2013, $270,000 in 2012 and $230,000 in 2011. For all restricted stock grants, the restriction lapses one year from the date of grant and the stock is expensed over the one year period. | |||||||||||||||||
Stock options | |||||||||||||||||
A summary of the Company’s stock option activity and related information for the three years ended December 31, 2013, is as follows: | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
average | average | intrinsic value | |||||||||||||||
exercise | remaining | ||||||||||||||||
price | contractual | ||||||||||||||||
life (years) | |||||||||||||||||
Options outstanding at December 31, 2010 | 2,219,200 | $ | 12.46 | ||||||||||||||
Grants | 391,500 | 11.2 | |||||||||||||||
Exercises | (123,500 | ) | 5.19 | ||||||||||||||
Cancellations | (11,450 | ) | 13.29 | ||||||||||||||
Options outstanding at December 31, 2011 | 2,475,750 | 12.62 | |||||||||||||||
Grants | 305,000 | 11.64 | |||||||||||||||
Exercises | (199,823 | ) | 5.47 | ||||||||||||||
Cancellations | (52,750 | ) | 12.82 | ||||||||||||||
Options outstanding at December 31, 2012 | 2,528,177 | 13.06 | |||||||||||||||
Grants | 390,800 | 12.26 | |||||||||||||||
Exercises | (247,827 | ) | 4.91 | ||||||||||||||
Cancellations | (68,000 | ) | 16.89 | ||||||||||||||
Expirations | (231,500 | ) | 22.46 | ||||||||||||||
Options outstanding at December 31, 2013 | 2,371,650 | 12.75 | 6.21 | $ | 10,968,922 | ||||||||||||
Options exercisable at December 31, 2013 | 1,508,350 | $ | 13.15 | 5.31 | $ | 7,800,990 | |||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders had all option holders exercised their stock options on December 31, 2013. The intrinsic value is calculated for each in-the-money stock option as the difference between the closing price of the Company’s common stock on December 31, 2013 and the exercise price. | |||||||||||||||||
The total intrinsic values of stock options exercised for the years ended December 31, 2013, 2012 and 2011 were $1,997,000, $1,182,000 and $830,400, respectively. The intrinsic value of a stock option that is exercised is calculated at the date of exercise. | |||||||||||||||||
The Company recognized stock compensation expense of $2.9 million, $2.8 million and $2.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. The stock compensation expense recognized each year is equal to the grant date fair values of stock options vested during the year. Total unrecognized compensation cost related to unvested stock options at December 31, 2013, before the effect of income taxes, was $3.7 million and is expected to be recognized over a weighted-average period of 2.41 years. | |||||||||||||||||
The Company values stock options using the Black-Scholes option valuation model. The Black-Scholes option valuation model, as well as other available models, was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. The Black-Scholes option valuation model requires the input of highly subjective assumptions including the expected stock price volatility and risk-free interest rate. Because the Company’s stock options have characteristics significantly different from those of traded options, changes in the subjective input assumptions can materially affect the fair value estimates of the Company’s stock options. The weighted-average per share grant date fair value of stock options granted during the years ended December 31, 2013, 2012 and 2011 was $6.12, $6.05 and $5.69, respectively. | |||||||||||||||||
The fair values for these stock options were estimated at the dates of grant using the following weighted-average assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Historical volatility | 61 | % | 61 | % | 60 | % | |||||||||||
Expected term (years) | 5.6 | 6 | 5.6 | ||||||||||||||
Risk-free interest rate | 0.88 | % | 1.1 | % | 1.96 | % | |||||||||||
Expected dividend yield | 0.97 | % | 0.86 | % | 0.89 | % |
Income_Per_Common_Share
Income Per Common Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Per Common Share | ' | ||||||||||||
NOTE H — INCOME PER COMMON SHARE | |||||||||||||
Basic income per common share has been computed by dividing net income by the weighted-average number of shares of the Company’s common stock outstanding. Diluted income per common share adjusts net income and basic income per common share for the effect of all potentially dilutive shares of the Company’s common stock. The calculations of basic and diluted income per common share for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands—except per share amounts) | |||||||||||||
Net income – Basic and Diluted | $ | 9,281 | $ | 20,947 | $ | 14,066 | |||||||
Weighted-average shares outstanding – Basic | 12,757 | 12,511 | 12,128 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 286 | 299 | 401 | ||||||||||
Weighted-average shares outstanding – Diluted | 13,043 | 12,810 | 12,529 | ||||||||||
Basic income per common share | $ | 0.73 | $ | 1.67 | $ | 1.16 | |||||||
Diluted income per common share | $ | 0.71 | $ | 1.64 | $ | 1.12 | |||||||
The computations of diluted income per common share for the years ended December 31, 2013, 2012 and 2011 excludes options to purchase 1,417,145, 1,450,200 and 1,600,413 shares of the Company’s common stock, respectively. The computation of diluted income per common share for the year ended December 31, 2011 also excludes options to purchase 462,192 shares of the Company’s common stock that were issuable upon the conversion of the Company’s 4.75% convertible senior notes and related interest expense, which were retired in July 2011. The above shares were excluded due to their antidilutive effect. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
NOTE I — INCOME TAXES | |||||||||||||
The components of income before income taxes, equity in earnings and extraordinary item are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Domestic | $ | 26,470 | $ | 20,609 | $ | 16,178 | |||||||
Foreign | (3,233 | ) | (535 | ) | 648 | ||||||||
Total income before income taxes and equity in earnings | $ | 23,237 | $ | 20,074 | $ | 16,826 | |||||||
The provision for income taxes (before equity in earnings) consists of: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 8,996 | $ | 6,691 | $ | 4,657 | |||||||
State and local | 1,707 | 761 | 2,063 | ||||||||||
Foreign | 747 | 503 | 618 | ||||||||||
Deferred | (2,275 | ) | (2,747 | ) | (1,216 | ) | |||||||
Income tax provision | $ | 9,175 | $ | 5,208 | $ | 6,122 | |||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred income tax assets are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Deferred income tax assets: | |||||||||||||
Deferred rent expense | $ | 3,694 | $ | 4,407 | |||||||||
Stock options | 3,237 | 3,660 | |||||||||||
Inventory | 1,317 | 1,381 | |||||||||||
Operating loss carry-forward | 2,140 | 1,797 | |||||||||||
Accounts receivable allowances | 192 | 106 | |||||||||||
Accrued compensation | 758 | 669 | |||||||||||
Other | 1,831 | 1,915 | |||||||||||
Total deferred income tax assets | $ | 13,169 | $ | 13,935 | |||||||||
Significant components of the Company’s net deferred income tax asset (liability) are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation and amortization | $ | (3,826 | ) | $ | (5,945 | ) | |||||||
Intangibles | (5,162 | ) | (4,645 | ) | |||||||||
Equity in earnings | (805 | ) | (1,964 | ) | |||||||||
Other | — | (167 | ) | ||||||||||
Total deferred income tax liabilities | (9,793 | ) | (12,721 | ) | |||||||||
Net deferred income tax asset | 3,376 | 1,214 | |||||||||||
Valuation allowance | (1,213 | ) | (1,182 | ) | |||||||||
Net deferred income tax asset (liability) | $ | 2,163 | $ | 32 | |||||||||
The Company has generated various state net operating loss carryforwards of which $14.3 million remains at December 31, 2013 that begin to expire in 2014. The Company has net operating losses in foreign jurisdictions of $4.5 million at December 31, 2013 that begin to expire in 2016. In 2012, the Company recorded an income tax benefit for a non-cash adjustment to a deferred tax liability of $2.3 million related to the prior year. Additionally, the Company recorded a reduction in its valuation allowance of $1.9 million of which $1.1 million related to a portion of the translation adjustment deferred tax asset in connection with the equity method investee, Vasconia. The valuation allowance which remains as of December 31, 2013 relates to certain state net operating losses. | |||||||||||||
The provision for income taxes (before equity in earnings) differs from the amounts computed by applying the applicable federal statutory rates as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Provision for federal income taxes at the statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Increases (decreases): | |||||||||||||
State and local income taxes, net of Federal income tax benefit | 5.5 | 3.2 | 6.4 | ||||||||||
Foreign rate differences | (1.1 | ) | (1.8 | ) | — | ||||||||
Non-deductible stock options | — | — | 0.1 | ||||||||||
Non-deductible expenses | 2.8 | 1.2 | 3.4 | ||||||||||
Valuation allowance | — | — | (8.2 | ) | |||||||||
Reduction of deferred tax liabilities related to the prior year | — | (11.6 | ) | — | |||||||||
Other | (2.7 | ) | (0.1 | ) | (0.3 | ) | |||||||
Provision for income taxes | 39.5 | % | 25.9 | % | 36.4 | % | |||||||
The estimated values of the Company’s gross uncertain tax positions at December 31, 2013, 2012 and 2011 are liabilities of $351,000, $301,000 and $134,000, respectively, and consist of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Balance at January 1 | $ | (301 | ) | $ | (134 | ) | $ | (356 | ) | ||||
Additions based on tax positions related to the current year | (31 | ) | — | — | |||||||||
Additions for tax positions of prior years | (164 | ) | (167 | ) | (76 | ) | |||||||
Settlements | 145 | — | 298 | ||||||||||
Balance at December 31 | $ | (351 | ) | $ | (301 | ) | $ | (134 | ) | ||||
The Company had approximately $71,000 and $39,000, net of federal and state tax benefit, accrued at December 31, 2013 and 2012, respectively, for the payment of interest. The Company’s policy for recording interest and penalties is to record such items as a component of income taxes. | |||||||||||||
If the Company’s tax positions are ultimately sustained, the Company’s liability, including interest, would be reduced by $299,000, all of which would impact the Company’s tax provision. On a quarterly basis, the Company evaluates its tax positions and revises its estimates accordingly. The Company believes that it is reasonably possible that $143,000 of its tax positions will be resolved within the next twelve months. | |||||||||||||
During 2013, the Company concluded an IRS audit examination related to the 2010 tax year. The settlement payment that resulted had no impact on the company’s effective tax rate as it related to the timing of a tax credit. The Company is no longer subject to U.S. Federal income tax examinations for the years prior to 2011. Also during 2013, the Company concluded an audit examination in the UK related to 2012 which resulted in an immaterial assessment. The Company has identified the following jurisdictions as “major” tax jurisdictions: U.S. Federal, California, Massachusetts, Illinois, New York, New Jersey and the United Kingdom. At December 31, 2013, the periods subject to examination for the Company’s major state jurisdictions are the years ended 2009 through 2012. |
Business_Segments
Business Segments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Segments | ' | ||||||||||||
NOTE J — BUSINESS SEGMENTS | |||||||||||||
Segment information | |||||||||||||
The Company operates in two reportable business segments: the Wholesale segment, the Company’s primary business segment, in which the Company designs, markets and distributes products to retailers and distributors, and the Retail Direct segment, in which the Company markets and sells a limited selection of its products directly to consumers through its Pfaltzgraff®, Mikasa®, Lifetime Sterling® and The English Table Internet websites. The operating results of Creative Tops and Fred® & Friends since the dates of the acquisitions are included in the Wholesale segment. | |||||||||||||
The Company has segmented its operations to reflect the manner in which management reviews and evaluates the results of its operations. While both segments distribute similar products, the segments have been distinct due to the different methods the Company uses to sell, market and distribute the products. Management evaluated the performance of the Wholesale and Retail Direct segments based on net sales and income (loss) from operations through December 31, 2013. Such measures give recognition to specifically identifiable operating costs such as cost of sales, distribution expenses and selling, general and administrative expenses. Certain general and administrative expenses, such as senior executive salaries and benefits, stock compensation, director fees and accounting, legal and consulting fees, are not allocated to the specific segments and are reflected as unallocated corporate expenses. The Company excludes from segment results the effects of certain items that management does not consider in assessing segment performance, primarily because of their non-operational nature. Assets in each segment consist of assets used in its operations and acquired intangible assets. Assets in the unallocated corporate category consist of cash and tax related assets that are not allocated to the segments. | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Net sales: | |||||||||||||
Wholesale | $ | 483,094 | $ | 464,862 | $ | 421,119 | |||||||
Retail Direct | 20,680 | 21,980 | 23,299 | ||||||||||
Non-operating adjustment(2) | (1,053 | ) | — | — | |||||||||
Total net sales | $ | 502,721 | $ | 486,842 | $ | 444,418 | |||||||
Income from operations: | |||||||||||||
Wholesale(1) | $ | 44,152 | $ | 40,530 | $ | 38,410 | |||||||
Retail Direct | (62 | ) | 463 | (524 | ) | ||||||||
Non-operating adjustment(2) | (1,053 | ) | — | — | |||||||||
Unallocated corporate expenses | (14,851 | ) | (13,658 | ) | (13,302 | ) | |||||||
Total income from operations | $ | 28,186 | $ | 27,335 | $ | 24,584 | |||||||
Depreciation and amortization: | |||||||||||||
Wholesale | $ | 10,150 | $ | 9,074 | $ | 8,183 | |||||||
Retail Direct | 265 | 250 | 214 | ||||||||||
Total depreciation and amortization | $ | 10,415 | $ | 9,324 | $ | 8,397 | |||||||
Assets: | |||||||||||||
Wholesale | $ | 327,122 | $ | 342,872 | $ | 317,435 | |||||||
Retail Direct | 730 | 512 | 813 | ||||||||||
Unallocated/ corporate/ other | 8,887 | 5,413 | 497 | ||||||||||
Total assets | $ | 336,739 | $ | 348,797 | $ | 318,745 | |||||||
Capital expenditures: | |||||||||||||
Wholesale | $ | 3,647 | $ | 4,897 | $ | 4,730 | |||||||
Retail Direct | 195 | 58 | 229 | ||||||||||
Total capital expenditures | $ | 3,842 | $ | 4,955 | $ | 4,959 | |||||||
Note: | |||||||||||||
-1 | In 2012, income from operations for the Wholesale segment includes $1.1 million of intangible asset impairment. | ||||||||||||
-2 | In 2013, the Company recorded a non-operating adjustment to reduce accounts receivable for previously issued credits within the Retail Direct business which related to 2010 and earlier periods. | ||||||||||||
Geographical information | |||||||||||||
The following table sets forth net sales and long-lived assets by the major geographic locations (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales: | |||||||||||||
United States | $ | 439,129 | $ | 430,758 | $ | 426,405 | |||||||
International | 63,592 | 56,084 | 18,013 | ||||||||||
Total | $ | 502,721 | $ | 486,842 | $ | 444,418 | |||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Long-lived assets at period-end: | |||||||||||||
United States | $ | 120,192 | $ | 133,841 | |||||||||
International | 1,871 | 2,197 | |||||||||||
Total | $ | 122,063 | $ | 136,038 | |||||||||
Product category information – net sales | |||||||||||||
The following table sets forth net sales by major product categories included within the Company’s Wholesale operating segment: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Category: | |||||||||||||
Kitchenware | $ | 281,211 | $ | 256,154 | $ | 215,707 | |||||||
Tableware (1) | 149,015 | 156,532 | 141,313 | ||||||||||
Home Solutions | 52,868 | 52,176 | 64,099 | ||||||||||
Total | $ | 483,094 | $ | 464,862 | $ | 421,119 | |||||||
-1 | The tableware product category includes Creative Tops revenue, which was previously presented separately. Revenue sources disclosed in 2012 have been reclassified to conform to the current year presentation for comparative purposes. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies | ' | ||||
NOTE K — COMMITMENTS AND CONTINGENCIES | |||||
Operating leases | |||||
The Company has lease agreements for its corporate headquarters, distribution centers, showrooms and sales offices that expire through 2025. These leases generally provide for, among other things, annual base rent escalations and additional rent for real estate taxes and other costs. | |||||
Future minimum payments under non-cancelable operating leases are as follows (in thousands): | |||||
Year Ending December 31, | |||||
2014 | $ | 15,162 | |||
2015 | 14,877 | ||||
2016 | 13,903 | ||||
2017 | 10,576 | ||||
2018 | 7,284 | ||||
Thereafter | 16,619 | ||||
Total | $ | 78,421 | |||
Rent and related expenses under operating leases were $14.3 million, $14.8 million and $13.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. There was no sublease rental income in 2013 and 2012. Sublease rental income was $70,000 for the year ended December 31, 2011. | |||||
Royalties | |||||
The Company has license agreements that require the payment of royalties on sales of licensed products which expire through 2023. Future minimum royalties payable under these agreements are as follows (in thousands): | |||||
Year ending December 31, | |||||
2014 | $ | 6,424 | |||
2015 | 6,882 | ||||
2016 | 807 | ||||
2017 | 411 | ||||
2018 | 416 | ||||
Thereafter | 1,035 | ||||
Total | $ | 15,975 | |||
Legal proceedings | |||||
Wallace Silversmiths de Puerto Rico, Ltd. (“Wallace de Puerto Rico”), a wholly-owned subsidiary of the Company, operates a manufacturing facility in San Germán, Puerto Rico that is leased from the Puerto Rico Industrial Development Company (“PRIDCO”). In March 2008, the United States Environmental Protection Agency (the “EPA”) announced that the San Germán Ground Water Contamination site in Puerto Rico (the “Site”) had been added to the Superfund National Priorities List due to contamination present in the local drinking water supply. | |||||
In May 2008, Wallace de Puerto Rico received from the EPA a Notice of Potential Liability and Request for Information Pursuant to 42 U.S.C. Sections 9607(a) and 9604(e) of the Comprehensive Environmental Response, Compensation, Liability Act. The Company responded to the EPA’s Request for Information on behalf of Wallace de Puerto Rico. In July 2011, Wallace de Puerto Rico received a letter from the EPA requesting access to the property that it leases from PRIDCO, and the Company granted such access. In February 2013, the EPA requested access to conduct further environmental investigation at the property. The Company granted such access and further EPA investigation is pending. | |||||
The Company is not aware of any determination by the EPA that any remedial action is required for the Site, and, accordingly, is not able to estimate the extent of any possible liability. | |||||
The Company is, from time to time, involved in other legal proceedings. The Company believes that other current litigation is routine in nature and incidental to the conduct of the Company’s business and that none of this litigation, individually or collectively, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Retirement_Plans
Retirement Plans | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Retirement Plans | ' | ||||
NOTE L — RETIREMENT PLANS | |||||
401(k) plan | |||||
The Company maintains a defined contribution retirement plan for eligible employees under Section 401(k) of the Internal Revenue Code. Participants can make voluntary contributions up to the Internal Revenue Service limit of $17,500 ($23,000 for employees 50 years or over) for 2013. Effective January 1, 2009, the Company suspended its matching contribution as an expense savings measure. The Company’s U.K.-based subsidiary, Creative Tops, also maintains a defined contribution pension plan. | |||||
Retirement benefit obligations | |||||
The Company assumed retirement benefit obligations, which are paid to certain former executives of an acquired business. The obligations under these agreements are unfunded and amounted to $5.4 million at December 31, 2013 and $5.9 million at December 31, 2012. | |||||
The discount rate used to calculate the retirement benefit obligations was 4.50% at December 31, 2013 and 3.60% at December 31, 2012. The retirement benefit obligations are included in accrued expenses and deferred rent and other long-term liabilities. | |||||
The Company expects to recognize $47,000 of the actuarial losses included in accumulated other comprehensive loss in net periodic benefit cost in 2014. | |||||
Future retirement benefit payments are as follows (in thousands): | |||||
Year ending December 31, | |||||
2014 | $ | 143 | |||
2015 | 132 | ||||
2016 | 121 | ||||
2017 | 265 | ||||
2018 | 362 | ||||
2019-2023 | 1,753 | ||||
Total | $ | 2,776 | |||
Other
Other | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other | ' | ||||||||||||
NOTE M — OTHER | |||||||||||||
Inventory | |||||||||||||
The components of inventory are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Finished goods | $ | 108,340 | $ | 101,021 | |||||||||
Work in process | 1,966 | 2,046 | |||||||||||
Raw materials | 2,485 | 1,517 | |||||||||||
Total | $ | 112,791 | $ | 104,584 | |||||||||
Property and equipment | |||||||||||||
Property and equipment consist of: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Machinery, furniture and equipment | $ | 79,132 | $ | 75,896 | |||||||||
Leasehold improvements | 26,959 | 26,334 | |||||||||||
Building and improvements | 1,604 | 1,604 | |||||||||||
Construction in progress | 104 | 920 | |||||||||||
Land | 100 | 100 | |||||||||||
107,899 | 104,854 | ||||||||||||
Less: accumulated depreciation and amortization | (80,201 | ) | (73,208 | ) | |||||||||
Total | $ | 27,698 | $ | 31,646 | |||||||||
Depreciation and amortization expense on property and equipment for the years ended December 31, 2013, 2012 and 2011 was $7.7 million, $7.8 million and $7.5 million, respectively. | |||||||||||||
Included in machinery, furniture and equipment at each of December 31, 2013 and 2012 is $2.1 million related to assets recorded under capital leases. Included in accumulated depreciation and amortization at each of December 31, 2013 and 2012 is $1.9 million related to assets recorded under capital leases. | |||||||||||||
Accrued expenses | |||||||||||||
Accrued expenses consist of: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Customer allowances and rebates | $ | 11,756 | $ | 10,595 | |||||||||
Compensation and benefits | 11,781 | 7,824 | |||||||||||
Interest | 98 | 401 | |||||||||||
Vendor invoices | 5,135 | 5,355 | |||||||||||
Royalties | 2,567 | 2,259 | |||||||||||
Commissions | 1,245 | 1,089 | |||||||||||
Freight | 1,419 | 1,122 | |||||||||||
Contingent consideration related to F&F acquisition | 1,647 | 730 | |||||||||||
Working capital excess related to F&F acquisition | 254 | 845 | |||||||||||
Other | 5,193 | 3,134 | |||||||||||
Total | $ | 41,095 | $ | 33,354 | |||||||||
Deferred rent & other long-term liabilities | |||||||||||||
Deferred rent & other long-term liabilities consist of: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Deferred rent liability | $ | 9,737 | $ | 10,719 | |||||||||
Retirement benefit obligations | 5,212 | 5,752 | |||||||||||
Contingent consideration related to F&F acquisition | 3,647 | 4,640 | |||||||||||
Derivative liability | 48 | 454 | |||||||||||
Total | $ | 18,644 | $ | 21,565 | |||||||||
Supplemental cash flow information | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||
Cash paid for interest | $ | 4,115 | $ | 5,498 | $ | 6,877 | |||||||
Cash paid for taxes | 10,862 | 6,067 | 10,331 | ||||||||||
Non-cash investing activities: | |||||||||||||
Translation adjustment | $ | (140 | ) | $ | 3,077 | $ | (704 | ) | |||||
Components of accumulated other comprehensive loss, net | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Accumulated translation adjustment: | |||||||||||||
Balance at beginning of year | $ | (2,804 | ) | $ | (5,881 | ) | $ | (5,177 | ) | ||||
Translation adjustment during period | (140 | ) | 3,077 | (704 | ) | ||||||||
Balance at end of year | $ | (2,944 | ) | $ | (2,804 | ) | $ | (5,881 | ) | ||||
Accumulated effect of retirement benefit obligations: | |||||||||||||
Balance at beginning of year | $ | (1,160 | ) | $ | — | $ | — | ||||||
Net gain (loss) arising from retirement benefit obligations, net of tax | 361 | (1,187 | ) | — | |||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||
Amortization of loss, net of tax(1) | 54 | 27 | — | ||||||||||
Balance at end of year | $ | (745 | ) | $ | (1,160 | ) | $ | — | |||||
Accumulated deferred gains (losses) on cash flow hedges: | |||||||||||||
Balance at beginning of year | $ | (272 | ) | $ | — | $ | — | ||||||
Derivative fair value adjustment, net of tax | 241 | (272 | ) | — | |||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||
Hedge de-designation, net of tax(2) | — | — | — | ||||||||||
Balance at end of year | $ | (31 | ) | $ | (272 | ) | $ | — | |||||
Notes: | |||||||||||||
-1 | Amount is recorded in selling, general and administrative expenses on the consolidated statements of operations. | ||||||||||||
(2) | Amount is recorded in interest expense on the consolidated statements of operations. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
NOTE N — SUBSEQUENT EVENTS | |
Amended and Restated Credit Agreement | |
On January 13, 2014, the Company entered into the Second Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A. The Second Amended and Restated Credit Agreement provides for, among other things, (i) an extension of the maturity of the $175.0 million Revolving Credit Facility to January 11, 2019 and (ii) a new Term Loan facility of $50.0 million. | |
Acquisition of Thomas Plant (Birmingham) Limited | |
On January 15, 2014, the Company acquired 100% of the share capital of Thomas Plant (Birmingham) Limited (“Thomas Plant” or “Kitchen Craft”) for cash in the amount of £37.4 million ($61.5 million), which includes an estimated working capital adjustment and 581,432 shares of common stock of the Company with a value of £5.5 million ($9.0 million). Contingent cash consideration of up to £5.5 million ($9.0 million) will be payable in future years if Kitchen Craft achieves certain financial targets. Kitchen Craft is a leading supplier of kitchenware products and accessories in the United Kingdom. | |
As of the date of this Annual Report on Form 10-K, the information is not yet available to perform the preliminary purchase price allocation and prepare the supplemental pro forma disclosures. The disclosures and supplemental pro forma information required by ASC 805 — Business Combinations will be made when the information becomes available. | |
Acquisition of Built | |
On February 24, 2014, the Company acquired the business and certain assets of Built NY, a designer and distributor of brightly colored, uniquely patterned Neoprene products, including bags, totes, cases and sleeves. | |
Acquisition of La Cafetière | |
In March 2014, the Company acquired the business and certain assets of La Cafetière, including exclusive distribution rights. La Cafetière designs and distributes products to brew and serve coffee and tea. Its products are marketed worldwide under the La Cafetière® and Randwyck® brands. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Valuation and Qualifying Accounts | ' | ||||||||||||||||||||
LIFETIME BRANDS, INC. | |||||||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
COL. A | COL. B | COL. C | COL. D | COL. E | |||||||||||||||||
Additions | |||||||||||||||||||||
Description | Balance | Due to | Charged to | Deductions | Balance | ||||||||||||||||
at | acquisitions | costs and | at end of | ||||||||||||||||||
beginning | expenses | period | |||||||||||||||||||
of period | |||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
Deducted from asset accounts: | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 361 | $ | — | $ | 260 | $ | (148 | )(a) | $ | 473 | ||||||||||
Reserve for sales returns and allowances | 3,635 | — | 6,004 | (c) | (4,903 | )(b) | 4,736 | ||||||||||||||
$ | 3,996 | $ | — | $ | 6,264 | $ | (5,051 | ) | $ | 5,209 | |||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
Deducted from asset accounts: | |||||||||||||||||||||
Allowance for doubtful Accounts | $ | 328 | $ | 67 | $ | 181 | $ | (215 | )(a) | $ | 361 | ||||||||||
Reserve for sales returns and allowances | 4,274 | 179 | 6,660 | (c) | (7,478 | )(b) | 3,635 | ||||||||||||||
$ | 4,602 | $ | 246 | $ | 6,841 | $ | (7,693 | ) | $ | 3,996 | |||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||
Deducted from asset accounts: | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,057 | $ | — | $ | 63 | $ | (792 | )(a) | $ | 328 | ||||||||||
Reserve for sales returns and allowances | 11,554 | — | 3,378 | (c) | (10,658 | )(b) | 4,274 | ||||||||||||||
$ | 12,611 | $ | — | $ | 3,441 | $ | (11,450 | ) | $ | 4,602 | |||||||||||
(a) | Uncollectible accounts written off, net of recoveries. | ||||||||||||||||||||
(b) | Allowances granted. | ||||||||||||||||||||
(c) | Charged to net sales. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information and with the instructions to Form 10-K. | |
The accompanying consolidated financial statements include estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U.S. GAAP. The most significant of these estimates and assumptions relate to revenue recognition, allowances for doubtful accounts, reserves for sales returns and allowances and customer chargebacks, inventory mark-down provisions, impairment of tangible and intangible assets, stock option expense, estimates for unpaid healthcare claims, derivative valuations, accruals related to the Company’s tax positions and tax valuation allowances. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. | |
Principles of Consolidation | ' |
Principles of consolidation | |
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |
Foreign Currency | ' |
Foreign Currency | |
All foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated into U.S. dollars at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars at average exchange rates for the relevant period. Gains and losses resulting from translation are recorded as a component of accumulated other comprehensive gain (loss). Gains and losses from foreign currency transactions are recognized in selling, general and administrative expenses in the consolidated statements of operations. Foreign currency gain/loss was a $258,000 loss in 2013, $415,000 loss in 2012 and a $28,000 gain in 2011. | |
Revenue Recognition | ' |
Revenue recognition | |
The Company sells products wholesale, to retailers and distributors, and retail, directly to consumers. Wholesale sales and retail direct sales are recognized when title passes to the customer, which is primarily at the shipping point for Wholesale sales and upon delivery to the customer for retail direct sales. Shipping and handling fees that are billed to customers in sales transactions are included in net sales and amounted to $1.4 million for each of the three years ended December 31, 2013, 2012 and 2011. Net sales exclude taxes that are collected from customers and remitted to the taxing authorities. | |
The Company offers various sales incentives and promotional programs to its customers from time to time in the normal course of business. These incentives and promotions typically include arrangements such as cooperative advertising, buydowns, volume rebates and discounts. These arrangements and an estimate of sales returns are reflected as reductions in net sales in the Company’s consolidated statements of operations. | |
Cost of Sales | ' |
Cost of sales | |
Cost of sales consist primarily of costs associated with the production and procurement of product, inbound freight costs, purchasing costs, royalties and other product procurement related charges. | |
Distribution Expenses | ' |
Distribution expenses | |
Distribution expenses consist primarily of warehousing expenses and freight-out expenses. Freight-out expenses were $9.0 million, $8.5 million and $7.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. Handling costs of products sold are included in cost of sales. | |
Advertising Expenses | ' |
Advertising expenses | |
Advertising expenses are expensed as incurred and are included in selling, general and administrative expenses. Advertising expenses were $757,000, $775,000 and $702,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Accounts Receivable | ' |
Accounts receivable | |
The Company periodically reviews the collectability of its accounts receivable and establishes allowances for estimated losses that could result from the inability of its customers to make required payments. A considerable amount of judgment is required to assess the ultimate realization of these receivables including assessing the initial and on-going creditworthiness of the Company’s customers. The Company also maintains an allowance for anticipated customer deductions. The allowances for deductions are primarily based on contracts with customers. | |
However, in certain cases the Company does not have a formal contract and, therefore, customer deductions are non-contractual. To evaluate the reasonableness of non-contractual customer deductions, the Company analyzes currently available information and historical trends of deductions. | |
Inventory | ' |
Inventory | |
Inventory consists principally of finished goods sourced from third-party suppliers. Inventory also includes finished goods, work in process and raw materials related to the Company’s manufacture of sterling silver products. Inventory is priced using the lower of cost (first-in, first-out basis) or market method. The Company estimates the selling price of its inventory on a product by product basis based on the current selling environment. If the estimated selling price is lower than the inventory’s cost, the Company reduces the value of the inventory to its net realizable value. | |
Property and Equipment | ' |
Property and equipment | |
Property and equipment is stated at cost. Property and equipment, other than leasehold improvements, is depreciated using the straight-line method over the estimated useful lives of the assets. Building and improvements are being depreciated over 30 years and machinery, furniture and equipment over periods ranging from 3 to 10 years. Leasehold improvements are amortized over the term of the lease or the estimated useful lives of the improvements, whichever is shorter. Advances paid towards the acquisition of property and equipment and the cost of property and equipment not ready for use before the end of the period are classified as construction in progress. | |
Cash Equivalents | ' |
Cash equivalents | |
The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. | |
Concentration of Credit Risk | ' |
Concentration of credit risk | |
The Company’s cash and cash equivalents are potentially subject to concentration of credit risk. The Company maintains cash with several financial institutions that, in some cases, is in excess of Federal Deposit Insurance Corporation insurance limits. | |
Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of entities comprising the Company’s customer base. | |
During the years ended December 31, 2013, 2012 and 2011, Wal-Mart Stores, Inc. (including Sam’s Club and Asda Superstore, in the United Kingdom) accounted for 15%, 16% and 15% of net sales, respectively. Sales to Wal-Mart Stores, Inc. are included in the Company’s Wholesale segment. No other customer accounted for 10% or more of the Company’s sales during these periods. | |
Fair Value Measurements | ' |
Fair value measurements | |
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 820, Fair Value Measurements and Disclosures, provides enhanced guidance for using fair value to measure assets and liabilities and establishes a common definition of fair value, provides a framework for measuring fair value under U.S. generally accepted accounting principles and expands disclosure requirements about fair value measurements. Fair value measurements included in the Company’s consolidated financial statements relate to the Company’s annual goodwill and other intangible asset impairment tests and derivatives, described in Notes D and F, respectively. | |
Fair Value of Financial Instruments | ' |
Fair value of financial instruments | |
The Company determined the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable are reasonable estimates of their fair values because of their short-term nature. The Company determined that the carrying amounts of borrowings outstanding under its Revolving Credit Facility and Senior Secured Term Loan approximate fair value since such borrowings bear interest at variable market rates. | |
Derivatives | ' |
Derivatives | |
The Company accounts for derivative instruments in accordance with ASC Topic No. 815, Derivatives and Hedging. ASC Topic No. 815 requires that all derivative instruments be recognized on the balance sheet at fair value as either an asset or liability. Changes in the fair value of derivatives that qualify as hedges and have been designated as part of a hedging relationship for accounting purposes have no net impact on earnings to the extent the derivative is considered highly effective in achieving offsetting changes in fair value or cash flows attributable to the risk being hedged, until the hedge item is recognized in earnings. If the derivative which is designated as part of a hedging relationship is considered ineffective in achieving offsetting changes in fair value or cash flows attributable to the risk being hedged, the changes in fair value are recorded in operations. For derivatives that do not qualify or are not designated as hedging instruments for accounting purposes, changes in fair value are recorded in operations. | |
The Company is a party to interest rate swap agreements with an aggregate notional amount of $29.8 million to manage interest rate exposure in connection with its variable interest rate borrowings. The hedge period in the agreements commenced in March 2013 and expires in June 2018 and the notional amount amortizes over this period. The interest rate swap agreements were designated as cash flow hedges under ASC Topic No. 815. The effective portion of the fair value gain or loss on these agreements are recorded as a component of accumulated other comprehensive loss. The effect of recording these derivatives at fair value resulted in an unrealized gain of $241,000 and an unrealized loss of $272,000, net of taxes, for the years ended December 31, 2013 and 2012, respectively. No amounts recorded in accumulated other comprehensive loss are expected to be reclassified to interest expense in the next twelve months. | |
Goodwill, Intangible Assets and Long-lived Assets | ' |
Goodwill, intangible assets and long-lived assets | |
Goodwill and intangible assets deemed to have indefinite lives are not amortized but, instead, are subject to an annual impairment assessment. Additionally, if events or conditions were to indicate the carrying value of a reporting unit may not be recoverable, the company would evaluate goodwill and other intangible assets for impairment at that time. As it relates to the goodwill assessment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment testing described in ASU Topic No. 350, Intangibles – Goodwill and Other. The second step is a quantitative test to measures the amount of impairment if there is an indication from the first step that one exists. The Company also evaluates qualitative factors to determine whether or not its indefinite lived intangibles have been impaired and then performs quantitative tests if required. These tests can include the royalty savings model or other valuation models. | |
Long-lived assets, including intangible assets deemed to have finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that such assets may have been impaired. Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated declines in revenue or operating profit or material adverse changes in the business climate that indicate that the carrying amount of an asset may be impaired. When impairment indicators are present, the Company compares the carrying value of the assets to the estimated discounted future cash flows expected to be generated by the assets. If the assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company considered indicators of impairment of its long-lived assets and determined that no such indicators were present at December 31, 2013. | |
Income Taxes | ' |
Income taxes | |
The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company accounts for foreign income taxes based upon anticipated reinvestment of profits into respective foreign tax jurisdictions. | |
The Company applies the authoritative guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the Company’s financial statements. In accordance with this guidance, tax positions must meet a more-likely-than-not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position. A valuation allowance is required to be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. | |
Stock Options | ' |
Stock options | |
The Company measures compensation expense for all share-based compensation granted to employees and non-employee directors at fair value on the date of grant and recognizes compensation expense over the related service period for awards expected to vest. The Company uses the Black-Scholes option valuation model to estimate the fair value of its stock options. The Black-Scholes option valuation model requires the input of highly subjective assumptions including the expected stock price volatility of the Company’s common stock and the risk free interest rate. | |
Employee Healthcare | ' |
Employee Healthcare | |
The Company self-insures certain portions of its health insurance plan. The Company maintains an accrual for estimated unpaid claims and claims incurred but not yet reported (“IBNR”). Although management believes that it uses the best information available to estimate IBNR claims, actual claims may vary significantly from estimated claims. | |
Restructuring Expenses | ' |
Restructuring Expenses | |
Costs associated with restructuring activities are recorded at fair value when a liability has been incurred. A liability has been incurred at the point of closure for any remaining operating lease obligations and at the communication date for severance. | |
In April 2013, the Company commenced a plan to close the Fred® & Friends distribution center and eliminate certain employee positions in conjunction with the closure. The Company recorded $367,000 of restructuring expenses during the year ended December 31, 2013 related to the execution of this plan. The Company does not anticipate that it will incur any further restructuring expenses related to this closure. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In July 2012, the FASB issued ASU No. 2012-02, Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, which permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative impairment test described in ASC Topic No. 350, Intangibles – Goodwill and Other. The amendments in this update are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company’s adoption of this guidance did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows. | |
Effective January 2013, the Company adopted ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income (e.g., net periodic pension benefit cost), an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. In connection with the adoption of this standard, the Company added additional disclosure about the Company’s accumulated other comprehensive income to Note M of its financial statements. |
Acquisitions_Tables
Acquisitions (Tables) (Fred & Friends) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Fred & Friends | ' | ||||
Purchase Price | ' | ||||
The purchase price was comprised of the following (in thousands): | |||||
Cash paid | $ | 14,500 | |||
Common stock issued | 1,507 | ||||
Value of contingent consideration | 5,370 | ||||
Total purchase price | $ | 21,377 | |||
The purchase price has been allocated based on management’s estimate of the fair value of the assets acquired and liabilities assumed, as follows (in thousands): | |||||
Purchase | |||||
Price | |||||
Allocation | |||||
Accounts receivable(1) | $ | 5,003 | |||
Inventory | 3,941 | ||||
Other assets | 360 | ||||
Other liabilities | (1,519 | ) | |||
Goodwill and other intangibles | 13,592 | ||||
Total allocated value | $ | 21,377 | |||
Note: | |||||
-1 | The fair value of accounts receivable approximated the gross contractual amounts receivable. |
Equity_Investments_Tables
Equity Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Summarized Income Statement Information for Vasconia in USD and MXN | ' | ||||||||||||||||||||||||
Summarized income statement information for the years ended December 31, 2013, 2012 and 2011, as well as summarized balance sheet information as of December 31, 2013 and 2012, for Vasconia in USD and MXN is as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Income Statement | USD | MXN | USD | MXN | USD | MXN | |||||||||||||||||||
Net Sales | $ | 159,574 | $ | 2,038,200 | $ | 168,712 | $ | 2,224,256 | $ | 132,310 | $ | 1,647,479 | |||||||||||||
Gross Profit | 28,775 | 367,944 | 38,134 | 497,413 | 38,143 | 476,501 | |||||||||||||||||||
Income from operations | 5,438 | 70,430 | 14,614 | 192,182 | 17,254 | 216,715 | |||||||||||||||||||
Net Income | 4,315 | 55,077 | 34,172 | 443,630 | 11,395 | 142,698 | |||||||||||||||||||
Summarized Balance Sheet Information for Vasconia in USD and MXN | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Balance Sheet | USD | MXN | USD | MXN | |||||||||||||||||||||
Current assets | $ | 100,227 | $ | 1,309,210 | $ | 106,953 | $ | 1,386,731 | |||||||||||||||||
Non-current assets | 75,659 | 988,289 | 75,511 | 979,059 | |||||||||||||||||||||
Current liabilities | 26,187 | 342,060 | 29,282 | 379,663 | |||||||||||||||||||||
Non-current liabilities | 39,033 | 509,868 | 44,405 | 575,746 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Components of Intangible Assets Included in Wholesale Segment | ' | ||||||||||||||||||||||||
The Company’s intangible assets, all of which are included in the Wholesale segment, consist of the following (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Goodwill | $ | 5,085 | $ | — | $ | 5,085 | $ | 5,085 | $ | — | $ | 5,085 | |||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Trade names | 18,364 | — | 18,364 | 18,364 | — | 18,364 | |||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||
Licenses | 15,847 | (7,551 | ) | 8,296 | 15,847 | (7,096 | ) | 8,751 | |||||||||||||||||
Trade names | 10,056 | (2,677 | ) | 7,379 | 10,056 | (1,800 | ) | 8,256 | |||||||||||||||||
Customer relationships | 18,406 | (2,736 | ) | 15,670 | 18,406 | (1,409 | ) | 16,997 | |||||||||||||||||
Patents | 584 | (229 | ) | 355 | 584 | (195 | ) | 389 | |||||||||||||||||
Total | $ | 68,342 | $ | (13,193 | ) | $ | 55,149 | $ | 68,342 | $ | (10,500 | ) | $ | 57,842 | |||||||||||
Summary of Activities Relating to Intangible Assets | ' | ||||||||||||||||||||||||
A summary of the activities related to the Company’s intangible assets for the year ended December 31, 2013 consists of the following (in thousands): | |||||||||||||||||||||||||
Intangible | Goodwill | Total | |||||||||||||||||||||||
Assets | Intangible | ||||||||||||||||||||||||
Assets and | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
Goodwill and Intangible Assets, December 31, 2011 | $ | 44,264 | $ | 2,673 | $ | 46,937 | |||||||||||||||||||
Acquisition of trade names | 3,940 | — | 3,940 | ||||||||||||||||||||||
Acquisition of customer relationships | 7,240 | — | 7,240 | ||||||||||||||||||||||
Goodwill from F&F acquisition | — | 2,412 | 2,412 | ||||||||||||||||||||||
Impairment of Elements® trade name | (1,069 | ) | — | (1,069 | ) | ||||||||||||||||||||
Amortization | (1,618 | ) | — | (1,618 | ) | ||||||||||||||||||||
Goodwill and Intangible Assets, December 31, 2012 | 52,757 | 5,085 | 57,842 | ||||||||||||||||||||||
Amortization | (2,693 | ) | — | (2,693 | ) | ||||||||||||||||||||
Goodwill and Intangible Assets, December 31, 2013 | $ | 50,064 | $ | 5,085 | $ | 55,149 | |||||||||||||||||||
Weighted Average Amortization Periods for Finite Lived Intangible Assets | ' | ||||||||||||||||||||||||
The weighted-average amortization periods for the Company’s finite-lived intangible assets as of December 31, 2013 are as follows: | |||||||||||||||||||||||||
Years | |||||||||||||||||||||||||
Trade names | 15 | ||||||||||||||||||||||||
Licenses | 33 | ||||||||||||||||||||||||
Customer relationships | 14 | ||||||||||||||||||||||||
Patents | 17 | ||||||||||||||||||||||||
Estimated Amortization Expense | ' | ||||||||||||||||||||||||
Estimated amortization expense for each of the five succeeding fiscal years is as follows (in thousands): | |||||||||||||||||||||||||
Year ending December 31, | |||||||||||||||||||||||||
2014 | 2,692 | ||||||||||||||||||||||||
2015 | 2,688 | ||||||||||||||||||||||||
2016 | 2,685 | ||||||||||||||||||||||||
2017 | 2,552 | ||||||||||||||||||||||||
2018 | 2,552 |
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Cash Dividends Declared | ' | ||||||||||||||||
Dividends declared in 2013 and 2012 are as follows: | |||||||||||||||||
Dividend per share | Date declared | Date of record | Payment date | ||||||||||||||
$0.03 | 6-Mar-12 | 1-May-12 | 15-May-12 | ||||||||||||||
$0.03 | 13-Jun-12 | 1-Aug-12 | 15-Aug-12 | ||||||||||||||
$0.03 | 31-Jul-12 | 1-Nov-12 | 15-Nov-12 | ||||||||||||||
$0.03 | 2-Nov-12 | 1-Feb-13 | 15-Feb-13 | ||||||||||||||
$0.03 | 12-Mar-13 | 1-May-13 | 15-May-13 | ||||||||||||||
$0.03 | 13-Jun-13 | 1-Aug-13 | 15-Aug-13 | ||||||||||||||
$0.03 | 2-Aug-13 | 1-Nov-13 | 15-Nov-13 | ||||||||||||||
$0.04 | 31-Oct-13 | 31-Jan-14 | 14-Feb-14 | ||||||||||||||
Summary of Stock Option Activity and Related Information | ' | ||||||||||||||||
A summary of the Company’s stock option activity and related information for the three years ended December 31, 2013, is as follows: | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
average | average | intrinsic value | |||||||||||||||
exercise | remaining | ||||||||||||||||
price | contractual | ||||||||||||||||
life (years) | |||||||||||||||||
Options outstanding at December 31, 2010 | 2,219,200 | $ | 12.46 | ||||||||||||||
Grants | 391,500 | 11.2 | |||||||||||||||
Exercises | (123,500 | ) | 5.19 | ||||||||||||||
Cancellations | (11,450 | ) | 13.29 | ||||||||||||||
Options outstanding at December 31, 2011 | 2,475,750 | 12.62 | |||||||||||||||
Grants | 305,000 | 11.64 | |||||||||||||||
Exercises | (199,823 | ) | 5.47 | ||||||||||||||
Cancellations | (52,750 | ) | 12.82 | ||||||||||||||
Options outstanding at December 31, 2012 | 2,528,177 | 13.06 | |||||||||||||||
Grants | 390,800 | 12.26 | |||||||||||||||
Exercises | (247,827 | ) | 4.91 | ||||||||||||||
Cancellations | (68,000 | ) | 16.89 | ||||||||||||||
Expirations | (231,500 | ) | 22.46 | ||||||||||||||
Options outstanding at December 31, 2013 | 2,371,650 | 12.75 | 6.21 | $ | 10,968,922 | ||||||||||||
Options exercisable at December 31, 2013 | 1,508,350 | $ | 13.15 | 5.31 | $ | 7,800,990 | |||||||||||
Fair Value Stock Options at Grant Date using Weighted Average Assumption | ' | ||||||||||||||||
The fair values for these stock options were estimated at the dates of grant using the following weighted-average assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Historical volatility | 61 | % | 61 | % | 60 | % | |||||||||||
Expected term (years) | 5.6 | 6 | 5.6 | ||||||||||||||
Risk-free interest rate | 0.88 | % | 1.1 | % | 1.96 | % | |||||||||||
Expected dividend yield | 0.97 | % | 0.86 | % | 0.89 | % |
Income_Per_Common_Share_Tables
Income Per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Calculations of Basic and Diluted Income Per Common Share | ' | ||||||||||||
The calculations of basic and diluted income per common share for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands—except per share amounts) | |||||||||||||
Net income – Basic and Diluted | $ | 9,281 | $ | 20,947 | $ | 14,066 | |||||||
Weighted-average shares outstanding – Basic | 12,757 | 12,511 | 12,128 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 286 | 299 | 401 | ||||||||||
Weighted-average shares outstanding – Diluted | 13,043 | 12,810 | 12,529 | ||||||||||
Basic income per common share | $ | 0.73 | $ | 1.67 | $ | 1.16 | |||||||
Diluted income per common share | $ | 0.71 | $ | 1.64 | $ | 1.12 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Components of Income before Income Taxes | ' | ||||||||||||
The components of income before income taxes, equity in earnings and extraordinary item are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Domestic | $ | 26,470 | $ | 20,609 | $ | 16,178 | |||||||
Foreign | (3,233 | ) | (535 | ) | 648 | ||||||||
Total income before income taxes and equity in earnings | $ | 23,237 | $ | 20,074 | $ | 16,826 | |||||||
Provision for Income Taxes | ' | ||||||||||||
The provision for income taxes (before equity in earnings) consists of: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 8,996 | $ | 6,691 | $ | 4,657 | |||||||
State and local | 1,707 | 761 | 2,063 | ||||||||||
Foreign | 747 | 503 | 618 | ||||||||||
Deferred | (2,275 | ) | (2,747 | ) | (1,216 | ) | |||||||
Income tax provision | $ | 9,175 | $ | 5,208 | $ | 6,122 | |||||||
Significant Components of Deferred Income Tax Assets | ' | ||||||||||||
Significant components of the Company’s deferred income tax assets are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Deferred income tax assets: | |||||||||||||
Deferred rent expense | $ | 3,694 | $ | 4,407 | |||||||||
Stock options | 3,237 | 3,660 | |||||||||||
Inventory | 1,317 | 1,381 | |||||||||||
Operating loss carry-forward | 2,140 | 1,797 | |||||||||||
Accounts receivable allowances | 192 | 106 | |||||||||||
Accrued compensation | 758 | 669 | |||||||||||
Other | 1,831 | 1,915 | |||||||||||
Total deferred income tax assets | $ | 13,169 | $ | 13,935 | |||||||||
Significant Components of Net Deferred Income Tax Asset (Liability) | ' | ||||||||||||
Significant components of the Company’s net deferred income tax asset (liability) are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation and amortization | $ | (3,826 | ) | $ | (5,945 | ) | |||||||
Intangibles | (5,162 | ) | (4,645 | ) | |||||||||
Equity in earnings | (805 | ) | (1,964 | ) | |||||||||
Other | — | (167 | ) | ||||||||||
Total deferred income tax liabilities | (9,793 | ) | (12,721 | ) | |||||||||
Net deferred income tax asset | 3,376 | 1,214 | |||||||||||
Valuation allowance | (1,213 | ) | (1,182 | ) | |||||||||
Net deferred income tax asset (liability) | $ | 2,163 | $ | 32 | |||||||||
Difference between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Rates | ' | ||||||||||||
The provision for income taxes (before equity in earnings) differs from the amounts computed by applying the applicable federal statutory rates as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Provision for federal income taxes at the statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Increases (decreases): | |||||||||||||
State and local income taxes, net of Federal income tax benefit | 5.5 | 3.2 | 6.4 | ||||||||||
Foreign rate differences | (1.1 | ) | (1.8 | ) | — | ||||||||
Non-deductible stock options | — | — | 0.1 | ||||||||||
Non-deductible expenses | 2.8 | 1.2 | 3.4 | ||||||||||
Valuation allowance | — | — | (8.2 | ) | |||||||||
Reduction of deferred tax liabilities related to the prior year | — | (11.6 | ) | — | |||||||||
Other | (2.7 | ) | (0.1 | ) | (0.3 | ) | |||||||
Provision for income taxes | 39.5 | % | 25.9 | % | 36.4 | % | |||||||
Estimated Values of Gross Uncertain Tax Positions | ' | ||||||||||||
The estimated values of the Company’s gross uncertain tax positions at December 31, 2013, 2012 and 2011 are liabilities of $351,000, $301,000 and $134,000, respectively, and consist of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Balance at January 1 | $ | (301 | ) | $ | (134 | ) | $ | (356 | ) | ||||
Additions based on tax positions related to the current year | (31 | ) | — | — | |||||||||
Additions for tax positions of prior years | (164 | ) | (167 | ) | (76 | ) | |||||||
Settlements | 145 | — | 298 | ||||||||||
Balance at December 31 | $ | (351 | ) | $ | (301 | ) | $ | (134 | ) | ||||
Business_Segments_Tables
Business Segments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting Information | ' | ||||||||||||
Assets in the unallocated corporate category consist of cash and tax related assets that are not allocated to the segments. | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Net sales: | |||||||||||||
Wholesale | $ | 483,094 | $ | 464,862 | $ | 421,119 | |||||||
Retail Direct | 20,680 | 21,980 | 23,299 | ||||||||||
Non-operating adjustment(2) | (1,053 | ) | — | — | |||||||||
Total net sales | $ | 502,721 | $ | 486,842 | $ | 444,418 | |||||||
Income from operations: | |||||||||||||
Wholesale(1) | $ | 44,152 | $ | 40,530 | $ | 38,410 | |||||||
Retail Direct | (62 | ) | 463 | (524 | ) | ||||||||
Non-operating adjustment(2) | (1,053 | ) | — | — | |||||||||
Unallocated corporate expenses | (14,851 | ) | (13,658 | ) | (13,302 | ) | |||||||
Total income from operations | $ | 28,186 | $ | 27,335 | $ | 24,584 | |||||||
Depreciation and amortization: | |||||||||||||
Wholesale | $ | 10,150 | $ | 9,074 | $ | 8,183 | |||||||
Retail Direct | 265 | 250 | 214 | ||||||||||
Total depreciation and amortization | $ | 10,415 | $ | 9,324 | $ | 8,397 | |||||||
Assets: | |||||||||||||
Wholesale | $ | 327,122 | $ | 342,872 | $ | 317,435 | |||||||
Retail Direct | 730 | 512 | 813 | ||||||||||
Unallocated/ corporate/ other | 8,887 | 5,413 | 497 | ||||||||||
Total assets | $ | 336,739 | $ | 348,797 | $ | 318,745 | |||||||
Capital expenditures: | |||||||||||||
Wholesale | $ | 3,647 | $ | 4,897 | $ | 4,730 | |||||||
Retail Direct | 195 | 58 | 229 | ||||||||||
Total capital expenditures | $ | 3,842 | $ | 4,955 | $ | 4,959 | |||||||
Note: | |||||||||||||
-1 | In 2012, income from operations for the Wholesale segment includes $1.1 million of intangible asset impairment. | ||||||||||||
-2 | In 2013, the Company recorded a non-operating adjustment to reduce accounts receivable for previously issued credits within the Retail Direct business which related to 2010 and earlier periods. | ||||||||||||
Net Sales and Long-Lived Assets by Major Geographic Locations | ' | ||||||||||||
The following table sets forth net sales and long-lived assets by the major geographic locations (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales: | |||||||||||||
United States | $ | 439,129 | $ | 430,758 | $ | 426,405 | |||||||
International | 63,592 | 56,084 | 18,013 | ||||||||||
Total | $ | 502,721 | $ | 486,842 | $ | 444,418 | |||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Long-lived assets at period-end: | |||||||||||||
United States | $ | 120,192 | $ | 133,841 | |||||||||
International | 1,871 | 2,197 | |||||||||||
Total | $ | 122,063 | $ | 136,038 | |||||||||
Net Sales by Major Product Categories | ' | ||||||||||||
The following table sets forth net sales by major product categories included within the Company’s Wholesale operating segment: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Category: | |||||||||||||
Kitchenware | $ | 281,211 | $ | 256,154 | $ | 215,707 | |||||||
Tableware (1) | 149,015 | 156,532 | 141,313 | ||||||||||
Home Solutions | 52,868 | 52,176 | 64,099 | ||||||||||
Total | $ | 483,094 | $ | 464,862 | $ | 421,119 | |||||||
-1 | The tableware product category includes Creative Tops revenue, which was previously presented separately. Revenue sources disclosed in 2012 have been reclassified to conform to the current year presentation for comparative purposes. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Future Minimum Payments Under Non Cancelable Operating Leases | ' | ||||
Future minimum payments under non-cancelable operating leases are as follows (in thousands): | |||||
Year Ending December 31, | |||||
2014 | $ | 15,162 | |||
2015 | 14,877 | ||||
2016 | 13,903 | ||||
2017 | 10,576 | ||||
2018 | 7,284 | ||||
Thereafter | 16,619 | ||||
Total | $ | 78,421 | |||
Future Minimum Royalties Payable | ' | ||||
Future minimum royalties payable under these agreements are as follows (in thousands): | |||||
Year ending December 31, | |||||
2014 | $ | 6,424 | |||
2015 | 6,882 | ||||
2016 | 807 | ||||
2017 | 411 | ||||
2018 | 416 | ||||
Thereafter | 1,035 | ||||
Total | $ | 15,975 | |||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Future Retirement Benefit Payments | ' | ||||
Future retirement benefit payments are as follows (in thousands): | |||||
Year ending December 31, | |||||
2014 | $ | 143 | |||
2015 | 132 | ||||
2016 | 121 | ||||
2017 | 265 | ||||
2018 | 362 | ||||
2019-2023 | 1,753 | ||||
Total | $ | 2,776 | |||
Other_Tables
Other (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Components of Inventory | ' | ||||||||||||
The components of inventory are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Finished goods | $ | 108,340 | $ | 101,021 | |||||||||
Work in process | 1,966 | 2,046 | |||||||||||
Raw materials | 2,485 | 1,517 | |||||||||||
Total | $ | 112,791 | $ | 104,584 | |||||||||
Property and Equipment | ' | ||||||||||||
Property and equipment consist of: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Machinery, furniture and equipment | $ | 79,132 | $ | 75,896 | |||||||||
Leasehold improvements | 26,959 | 26,334 | |||||||||||
Building and improvements | 1,604 | 1,604 | |||||||||||
Construction in progress | 104 | 920 | |||||||||||
Land | 100 | 100 | |||||||||||
107,899 | 104,854 | ||||||||||||
Less: accumulated depreciation and amortization | (80,201 | ) | (73,208 | ) | |||||||||
Total | $ | 27,698 | $ | 31,646 | |||||||||
Accrued Expenses | ' | ||||||||||||
Accrued expenses consist of: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Customer allowances and rebates | $ | 11,756 | $ | 10,595 | |||||||||
Compensation and benefits | 11,781 | 7,824 | |||||||||||
Interest | 98 | 401 | |||||||||||
Vendor invoices | 5,135 | 5,355 | |||||||||||
Royalties | 2,567 | 2,259 | |||||||||||
Commissions | 1,245 | 1,089 | |||||||||||
Freight | 1,419 | 1,122 | |||||||||||
Contingent consideration related to F&F acquisition | 1,647 | 730 | |||||||||||
Working capital excess related to F&F acquisition | 254 | 845 | |||||||||||
Other | 5,193 | 3,134 | |||||||||||
Total | $ | 41,095 | $ | 33,354 | |||||||||
Deferred Rent Other Long Term Liabilities | ' | ||||||||||||
Deferred rent & other long-term liabilities consist of: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Deferred rent liability | $ | 9,737 | $ | 10,719 | |||||||||
Retirement benefit obligations | 5,212 | 5,752 | |||||||||||
Contingent consideration related to F&F acquisition | 3,647 | 4,640 | |||||||||||
Derivative liability | 48 | 454 | |||||||||||
Total | $ | 18,644 | $ | 21,565 | |||||||||
Supplemental Cash Flow Information | ' | ||||||||||||
Supplemental cash flow information | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||
Cash paid for interest | $ | 4,115 | $ | 5,498 | $ | 6,877 | |||||||
Cash paid for taxes | 10,862 | 6,067 | 10,331 | ||||||||||
Non-cash investing activities: | |||||||||||||
Translation adjustment | $ | (140 | ) | $ | 3,077 | $ | (704 | ) | |||||
Components of Accumulated Other Comprehensive Loss | ' | ||||||||||||
Components of accumulated other comprehensive loss, net | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Accumulated translation adjustment: | |||||||||||||
Balance at beginning of year | $ | (2,804 | ) | $ | (5,881 | ) | $ | (5,177 | ) | ||||
Translation adjustment during period | (140 | ) | 3,077 | (704 | ) | ||||||||
Balance at end of year | $ | (2,944 | ) | $ | (2,804 | ) | $ | (5,881 | ) | ||||
Accumulated effect of retirement benefit obligations: | |||||||||||||
Balance at beginning of year | $ | (1,160 | ) | $ | — | $ | — | ||||||
Net gain (loss) arising from retirement benefit obligations, net of tax | 361 | (1,187 | ) | — | |||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||
Amortization of loss, net of tax(1) | 54 | 27 | — | ||||||||||
Balance at end of year | $ | (745 | ) | $ | (1,160 | ) | $ | — | |||||
Accumulated deferred gains (losses) on cash flow hedges: | |||||||||||||
Balance at beginning of year | $ | (272 | ) | $ | — | $ | — | ||||||
Derivative fair value adjustment, net of tax | 241 | (272 | ) | — | |||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||
Hedge de-designation, net of tax(2) | — | — | — | ||||||||||
Balance at end of year | $ | (31 | ) | $ | (272 | ) | $ | — | |||||
Notes: | |||||||||||||
-1 | Amount is recorded in selling, general and administrative expenses on the consolidated statements of operations. | ||||||||||||
(2) | Amount is recorded in interest expense on the consolidated statements of operations. |
Significant_Accounting_Policie2
Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Foreign currency gain/loss | ($258,000) | ($415,000) | $28,000 |
Shipping and handling revenue | 1,400,000 | 1,400,000 | 1,400,000 |
Freight-out expenses | 9,000,000 | 8,500,000 | 7,500,000 |
Advertising expenses | 757,000 | 775,000 | 702,000 |
Derivative fair value adjustment gain (loss), net of tax | 241,000 | -272,000 | ' |
Restructuring expenses | 367,000 | ' | ' |
Interest Rate Swap Agreements | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Commencement date | '2013-03 | ' | ' |
Expiry date | 30-Jun-18 | ' | ' |
Derivative fair value adjustment gain (loss), net of tax | 241,000 | -272,000 | ' |
Interest Rate Swap Agreements | Cash Flow Hedging | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Notional amount | $29,800,000 | ' | ' |
Wal Mart Stores Inc | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Percentage of net sales | 15.00% | 16.00% | 15.00% |
Maximum | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Highly liquid instruments which are considered cash and cash equivalent, maturity period | '3 months | ' | ' |
Building and Improvement | Minimum | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment depreciated over estimated useful lives | '30 years | ' | ' |
Machinery, Furniture and Equipment | Minimum | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment depreciated over estimated useful lives | '3 years | ' | ' |
Machinery, Furniture and Equipment | Maximum | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment depreciated over estimated useful lives | '10 years | ' | ' |
Purchase_Price_of_Acquisition_
Purchase Price of Acquisition (Detail) (Fred & Friends, USD $) | 1 Months Ended |
In Thousands, unless otherwise specified | Dec. 20, 2012 |
Fred & Friends | ' |
Business Acquisition [Line Items] | ' |
Cash paid | $14,500 |
Common stock issued | 1,507 |
Value of contingent consideration | 5,370 |
Total purchase price | $21,377 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 20, 2012 | Dec. 31, 2013 | Dec. 20, 2012 | Dec. 20, 2012 | Dec. 20, 2012 | Dec. 20, 2012 | Nov. 04, 2011 | Nov. 04, 2011 |
USD ($) | USD ($) | USD ($) | Fred & Friends | Fred & Friends | Fred & Friends | Fred & Friends | Fred & Friends | Fred & Friends | Creative Tops | Creative Tops | |
USD ($) | USD ($) | Contingent Payment | Contractual Holdback | Customer Relationships | Trade Names | USD ($) | GBP (£) | ||||
USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of contingent consideration | ' | ' | ' | $5,370,000 | ' | $4,000,000 | $1,400,000 | ' | ' | ' | ' |
Undiscounted deferred and contingent consideration, higher range | ' | ' | ' | ' | 7,700,000 | ' | ' | ' | ' | ' | ' |
Purchase price allocation, intangible assets | ' | ' | ' | 13,592,000 | ' | ' | ' | ' | ' | ' | ' |
Purchase price allocation, amortizable intangible assets | ' | ' | ' | ' | ' | ' | ' | 7,200,000 | 3,900,000 | ' | ' |
Purchase price allocation, goodwill amount | 5,085,000 | 5,085,000 | 2,673,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of equity interests acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% |
Amount of consideration paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,700,000 | 14,800,000 |
Business acquisition cash paid, net of cash acquired | ' | ' | ' | 14,500,000 | ' | ' | ' | ' | ' | 20,600,000 | 12,900,000 |
Business acquisition, issuance of common stock shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 255,908 | 255,908 |
Business acquisition, issuance of common stock shares | ' | ' | ' | $1,507,000 | ' | ' | ' | ' | ' | $3,100,000 | £ 1,900,000 |
Summary_of_Purchase_Price_Allo
Summary of Purchase Price Allocated Based on Estimated Fair Value of Assets and Liabilities (Detail) (Fred & Friends, USD $) | Dec. 20, 2012 | |
In Thousands, unless otherwise specified | ||
Fred & Friends | ' | |
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items] | ' | |
Accounts receivable | $5,003 | [1] |
Inventory | 3,941 | |
Other assets | 360 | |
Other liabilities | -1,519 | |
Goodwill and other intangibles | 13,592 | |
Total allocated value | $21,377 | |
[1] | The fair value of accounts receivable approximated the gross contractual amounts receivable. |
Equity_Investments_Additional_
Equity Investments - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 29, 2012 | |
Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | GS Internacional S/A | GS Internacional S/A | HCA | HCA | Grand Venture | Grand Venture | Grand Venture | ||||
Transaction 02 | Transaction 02 | Transaction 02 | Transaction 02 | Transaction 02 | Transaction 02 | ||||||||||||||
Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership in equity method investment | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | 40.00% | ' | ' | 50.00% |
Exchange rate at period end - MXN to USD | ' | ' | ' | 13.06 | 12.97 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average daily exchange rate for period - MXN to USD | ' | ' | ' | ' | ' | ' | 12.46 | 12.94 | 11.74 | 13.01 | 13.51 | 13.62 | ' | ' | ' | ' | ' | ' | ' |
(Decrease) increase in equity method investment | ' | ' | ' | ($300,000) | $2,700,000 | ($500,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend received | ' | ' | ' | 571,000 | 416,000 | 466,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due from related party | ' | ' | ' | ' | 71,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due to related party | ' | ' | ' | 152,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings (losses), net of taxes | -4,781,000 | 6,081,000 | 3,362,000 | -4,000,000 | 6,900,000 | 2,900,000 | ' | ' | ' | ' | ' | ' | -656,000 | -727,000 | ' | ' | 83,000 | 125,000 | ' |
Equity in earnings related to a bargain purchase gain | ' | ' | ' | ' | 4,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings, tax benefit | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in equity method investment to fair value | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value of investment | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of investment | ' | ' | ' | 30,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | 144,000 | ' | 300,000 | ' | ' |
Fair value of investment | ' | ' | ' | 35,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment for equity method investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $105,000 | ' | ' | $500,000 |
Summarized_Income_Statement_In
Summarized Income Statement Information for Vasconia in USD and MXN (Detail) | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 |
USD ($) | USD ($) | USD ($) | Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | Grupo Vasconia S.A.B. | |
USD ($) | MXN | USD ($) | MXN | USD ($) | MXN | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $502,721 | $486,842 | $444,418 | $159,574 | 2,038,200 | $168,712 | 2,224,256 | $132,310 | 1,647,479 |
Gross Profit | 187,262 | 176,788 | 162,360 | 28,775 | 367,944 | 38,134 | 497,413 | 38,143 | 476,501 |
Income from operations | 28,186 | 27,335 | 24,584 | 5,438 | 70,430 | 14,614 | 192,182 | 17,254 | 216,715 |
Net Income | $9,281 | $20,947 | $14,066 | $4,315 | 55,077 | $34,172 | 443,630 | $11,395 | 142,698 |
Summarized_Balance_Sheet_Infor
Summarized Balance Sheet Information for Vasconia in USD and MXN (Detail) (Grupo Vasconia S.A.B.) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | MXN | USD ($) | MXN |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Current assets | $100,227 | 1,309,210 | $106,953 | 1,386,731 |
Non-current assets | 75,659 | 988,289 | 75,511 | 979,059 |
Current liabilities | 26,187 | 342,060 | 29,282 | 379,663 |
Non-current liabilities | $39,033 | 509,868 | $44,405 | 575,746 |
Components_of_Intangible_Asset
Components of Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Schedule of Intangible Assets Disclosure [Line Items] | ' | ' | ' |
Goodwill, Gross | $5,085 | $5,085 | ' |
Goodwill, Accumulated Impairment Loss | ' | ' | ' |
Goodwill, Net | 5,085 | 5,085 | 2,673 |
Indefinite-Lived Trade Names, Gross | 18,364 | 18,364 | ' |
Indefinite-Lived Trade Names, Accumulated Impairment Loss | ' | ' | ' |
Indefinite-Lived Trade Names, Net | 18,364 | 18,364 | ' |
Intangible Assets, Gross (Including Goodwill) | 68,342 | 68,342 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | -13,193 | -10,500 | ' |
Intangible Assets, Net (Including Goodwill) | 55,149 | 57,842 | 46,937 |
License | ' | ' | ' |
Schedule of Intangible Assets Disclosure [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 15,847 | 15,847 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | -7,551 | -7,096 | ' |
Finite-Lived Intangible Assets, Net | 8,296 | 8,751 | ' |
Trade Names | ' | ' | ' |
Schedule of Intangible Assets Disclosure [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 10,056 | 10,056 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | -2,677 | -1,800 | ' |
Finite-Lived Intangible Assets, Net | 7,379 | 8,256 | ' |
Customer Relationships | ' | ' | ' |
Schedule of Intangible Assets Disclosure [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 18,406 | 18,406 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | -2,736 | -1,409 | ' |
Finite-Lived Intangible Assets, Net | 15,670 | 16,997 | ' |
Patents | ' | ' | ' |
Schedule of Intangible Assets Disclosure [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 584 | 584 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | -229 | -195 | ' |
Finite-Lived Intangible Assets, Net | $355 | $389 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Oct. 01, 2013 | Oct. 01, 2013 | |
Discounted Cash Flows Approach | Discounted Cash Flows Approach | Discounted Cash Flows Approach | ||||
Fair Value, Observable inputs, Level 2 | Fair Value, Observable inputs, Level 2 | |||||
Minimum | Maximum | |||||
Schedule of Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets impairment, discount rate | ' | ' | ' | ' | 12.50% | 14.00% |
Indefinite-lived intangible assets impairment, growth rate | ' | ' | ' | ' | 2.00% | 3.50% |
Decrease in carrying value of trade name | ' | ' | ' | $1,100,000 | ' | ' |
Amortization expenses | $2,693,000 | $1,618,000 | $800,000 | ' | ' | ' |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 20, 2012 |
Trade Name | Customer Relationships | Fred & Friends | Fred & Friends | ||||
Intangible Assets | ' | ' | ' | ' | ' | ' | ' |
Acquisition of Intangible Assets | $50,064 | $52,757 | $44,264 | $3,940 | $7,240 | ' | ' |
Intangible Assets, Beginning Balance | 52,757 | 44,264 | ' | ' | ' | ' | ' |
Impairment of ElementsB. trade name | ' | -1,069 | ' | ' | ' | ' | ' |
Amortization | -2,693 | -1,618 | -800 | ' | ' | ' | ' |
Intangible Assets, Ending Balance | 50,064 | 52,757 | 44,264 | 3,940 | 7,240 | ' | ' |
Goodwill, Beginning Balance | 5,085 | 2,673 | ' | ' | ' | ' | 2,500 |
Goodwill from acquisition | ' | ' | ' | ' | ' | 2,412 | ' |
Goodwill, Ending Balance | 5,085 | 5,085 | 2,673 | ' | ' | ' | 2,500 |
Goodwill and Intangible Assets | ' | ' | ' | ' | ' | ' | ' |
Goodwill and intangible assets, Beginning Balance | 57,842 | 46,937 | ' | ' | ' | ' | ' |
Acquisition of Intangible Assets | ' | ' | ' | 3,940 | 7,240 | ' | ' |
Goodwill from acquisition | ' | ' | ' | ' | ' | 2,412 | ' |
Impairment of ElementsB. trade name | ' | -1,069 | ' | ' | ' | ' | ' |
Amortization | -2,693 | -1,618 | -800 | ' | ' | ' | ' |
Goodwill and Intangible Assets, Ending Balance | $55,149 | $57,842 | $46,937 | ' | ' | ' | ' |
Weighted_Average_Amortization_
Weighted Average Amortization Period for Finite Lived Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Trade Names | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, weighted-average amortization periods | '15 years |
License | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, weighted-average amortization periods | '33 years |
Customer Relationships | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, weighted-average amortization periods | '14 years |
Patents | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, weighted-average amortization periods | '17 years |
Estimated_Amortization_Expense
Estimated Amortization Expense (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule Of Estimated Future Amortization Expense [Line Items] | ' |
2014 | $2,692 |
2015 | 2,688 |
2016 | 2,685 |
2017 | 2,552 |
2018 | $2,552 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jul. 27, 2012 | Dec. 31, 2013 |
Revolving Credit Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Revolving credit facility commitment | ' | $175 |
Maturity date | ' | 27-Jul-17 |
Revolving credit facility borrowing base calculation description | ' | 'Borrowings under the Revolving Credit Facility are secured by a first lien priority security interest in all of the assets of the Company and its domestic subsidiaries, including a pledge of the Companybs outstanding shares of stock in its subsidiaries (limited, in the case of its foreign subsidiaries, to 65.0% of the Companybs equity interests), except regarding the Companybs shares in its wholly-owned subsidiary LTB de Mexico, S.A. de C.V. (bLTB de Mexicob), which in turn holds the Companybs interest in Vasconia. Availability under the Revolving Credit Facility is subject to a borrowing base calculation equal to the sum of (i) 85.0% of eligible domestic accounts receivable, (ii) 85.0% of the net orderly liquidation value of eligible domestic inventory and (iii) the lesser of 50.0% of the orderly liquidation value of eligible trademarks and $25.0 million less reserves. The borrowing base is also subject to reserves that may be established by the administrative agent in its permitted discretion. |
Percentage of foreign subsidiaries interests pledged borrowing under revolving credit | ' | 65.00% |
Percentage of eligible domestic receivable used in borrowing base calculation | ' | 85.00% |
Percentage of eligible domestic inventory used in borrowing base calculation | ' | 85.00% |
Percentage of liquidation value of eligible trademarks used in borrowing base calculation | ' | 50.00% |
Line of credit facility, Borrowing Base calculation | ' | 25 |
Line of credit facility interest rate description | ' | 'Borrowings under the Revolving Credit Facility bear interest, at the Company's option, at one of the following rates (i) the Alternate Base Rate, defined as the greater of the Prime Rate, Federal Funds Rate plus 0.5% or the Adjusted LIBO Rate plus 1.0%, plus a margin of 1.0% to 1.75%, or (ii) the Eurodollar Rate, defined as the Adjusted LIBO Rate plus a margin of 2.0% to 2.75%. The respective margins are based upon availability. |
Open letters of credit | ' | 1.3 |
Outstanding borrowing under revolving credit facility | ' | 49.2 |
Availability under revolving credit facility | ' | 87.8 |
Availability under revolving credit facility, percentage of the total loan commitment | ' | 50.00% |
Revolving Credit Facility | Minimum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rates on outstanding borrowings | ' | 2.13% |
Percentage of line of credit facility unused capacity commitment fee | ' | 0.38% |
Revolving Credit Facility | Maximum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rates on outstanding borrowings | ' | 4.25% |
Percentage of line of credit facility unused capacity commitment fee | ' | 0.50% |
Revolving Credit Facility | Alternate Base Rate | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate above federal funds rate | ' | 0.50% |
Interest rate above adjusted LIBOR rate | ' | 1.00% |
Revolving Credit Facility | Alternate Base Rate | Minimum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate margin | ' | 1.00% |
Revolving Credit Facility | Alternate Base Rate | Maximum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate margin | ' | 1.75% |
Revolving Credit Facility | Euro Dollar Rate | Minimum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate margin | ' | 2.00% |
Revolving Credit Facility | Euro Dollar Rate | Maximum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate margin | ' | 2.75% |
Revolving Credit Facility | Covenant Requirement | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Credit facility terms | ' | 'The Revolving Credit Facility provides for customary restrictions and events of default. Restrictions include limitations on additional indebtedness, acquisitions, investments and payment of dividends, among others. Furthermore, if availability under the Revolving Credit Facility is less than $20.0 million, the Company will be required to maintain a minimum fixed charge coverage ratio of 1.10 to 1.00, which covenant would remain effective until availability is at least $23.5 million for a period of three consecutive months. |
Minimum availability under revolving credit for three consecutive months to avoid debt covenant | ' | 23.5 |
Revolving Credit Facility | Covenant Requirement | If availability under the Revolving Credit Facility is less than $20.0 million and until availability is at least $23.5 million for a period of three consecutive months. | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fixed charge coverage ratio minimum | ' | 110.00% |
Senior Secured Term Loans | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity date | ' | 27-Jul-18 |
Senior secured term loan | ' | 20.6 |
Senior Secured Term Loans | Alternate Base Rate | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate margin | ' | 4.00% |
Senior Secured Term Loans | Adjusted LIBOR Rate | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate margin | ' | 5.00% |
Senior Secured Term Loans | Covenant Requirement | If at any time EBITDA (as defined) is less than $34.0 million but equal to or greater than $30.0 million | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maximum Indebtedness to EBITDA ratio | 3 | ' |
Senior Secured Term Loans | Covenant Requirement | Minimum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Earnings before interest taxes depreciation and amortization required under term loan agreement | 30 | ' |
Senior Secured Term Loans | Covenant Requirement | Maximum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Earnings before interest taxes depreciation and amortization required under term loan agreement | 34 | ' |
Maximum capital expenditures | ' | $9 |
Derivatives_Additional_Informa
Derivatives - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | |
Fair Value, Observable inputs, Level 2 | Fair Value, Observable inputs, Level 2 | Fair Value, Observable inputs, Level 2 | Fair Value, Observable inputs, Level 2 | Interest Rate Swap Agreements | Interest Rate Swap Agreements | Interest Rate Swap Agreements | Interest Rate Swap Agreements | |||
Other Long Term Liabilities | Other Long Term Liabilities | Adjusted LIBOR Rate | Adjusted LIBOR Rate | |||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | ' | ' | ' | ' | ' | $29,800,000 | ' | ' | ' |
Commencement date | ' | ' | ' | ' | ' | ' | '2013-03 | ' | ' | ' |
Expiry date | ' | ' | ' | ' | ' | ' | 30-Jun-18 | ' | ' | ' |
Annual interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 1.05% | 6.05% |
Derivative fair value adjustment gain (loss), net of tax | 241,000 | -272,000 | ' | ' | ' | ' | 241,000 | -272,000 | ' | ' |
Fair value of derivative instruments, liability | ' | ' | $54,000 | $454,000 | $48,000 | $454,000 | ' | ' | ' | ' |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||
Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 11, 2014 | Dec. 31, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | |
Preferred stock Series A | Preferred stock Series A | Preferred stock Series B | Preferred stock Series B | Restricted Stock | Restricted Stock | Restricted Stock | Subsequent Event | Long Term Incentive Plan 2000 | Long Term Incentive Plan 2000 | Long Term Incentive Plan 2000 | Long Term Incentive Plan 2000 | Long Term Incentive Plan 2000 | |||||
Non Employee Director | Non Employee Director | Non Employee Director | Dividend Declared | After Amendment | Minimum | Maximum | Increase | ||||||||||
Share Based Compensation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 643,073 | 4,200,000 | ' | ' | 700,000 |
Options expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '10 years | ' |
Options vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | '5 years | ' |
Dividend declaration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11-Mar-14 | ' | ' | ' | ' | ' |
Quarterly dividend declared | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.04 | ' | ' | ' | ' | ' |
Dividend payable date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-May-14 | ' | ' | ' | ' | ' |
Dividend declared, date of record | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-May-14 | ' | ' | ' | ' | ' |
Stock repurchase program, authorized amount | $10,000,000 | $3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program, authorized shares | ' | 245,575 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | ' | ' | 100 | 100 | 2,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total number of restricted shares granted | ' | ' | ' | ' | ' | ' | ' | ' | 22,459 | 23,394 | 21,400 | ' | ' | ' | ' | ' | ' |
Total fair value of the restricted shares | ' | ' | ' | ' | ' | ' | ' | ' | 298,000 | 270,000 | 230,000 | ' | ' | ' | ' | ' | ' |
Total intrinsic value of stock options exercised | ' | 1,997,000 | 1,182,000 | 830,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense | ' | 2,881,000 | 2,793,000 | 2,795,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | $3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average recognition period | ' | '2 years 4 months 28 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average per share grant date fair value of stock options granted | ' | $6.12 | $6.05 | $5.69 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash_Dividends_Declared_Detail
Cash Dividends Declared (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Dividend Payment 1st | ' |
Dividend Declared [Line Items] | ' |
Dividend per share | $0.03 |
Date declared | 6-Mar-12 |
Date of record | 1-May-12 |
Payment date | 15-May-12 |
Dividend Payment 2nd | ' |
Dividend Declared [Line Items] | ' |
Dividend per share | $0.03 |
Date declared | 13-Jun-12 |
Date of record | 1-Aug-12 |
Payment date | 15-Aug-12 |
Dividend Payment 3rd | ' |
Dividend Declared [Line Items] | ' |
Dividend per share | $0.03 |
Date declared | 31-Jul-12 |
Date of record | 1-Nov-12 |
Payment date | 15-Nov-12 |
Dividend Payment 4th | ' |
Dividend Declared [Line Items] | ' |
Dividend per share | $0.03 |
Date declared | 2-Nov-12 |
Date of record | 1-Feb-13 |
Payment date | 15-Feb-13 |
Dividend Payment 5th | ' |
Dividend Declared [Line Items] | ' |
Dividend per share | $0.03 |
Date declared | 12-Mar-13 |
Date of record | 1-May-12 |
Payment date | 15-May-13 |
Dividend Payment 6th | ' |
Dividend Declared [Line Items] | ' |
Dividend per share | $0.03 |
Date declared | 13-Jun-13 |
Date of record | 1-Aug-13 |
Payment date | 15-Aug-13 |
Dividend Payment 7th | ' |
Dividend Declared [Line Items] | ' |
Dividend per share | $0.03 |
Date declared | 2-Aug-13 |
Date of record | 1-Nov-13 |
Payment date | 15-Nov-13 |
Dividend Payment 8th | ' |
Dividend Declared [Line Items] | ' |
Dividend per share | $0.04 |
Date declared | 31-Oct-13 |
Date of record | 31-Jan-14 |
Payment date | 14-Feb-14 |
Summary_of_Stock_Option_Detail
Summary of Stock Option (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Options | ' | ' | ' |
Beginning balance | 2,528,177 | 2,475,750 | 2,219,200 |
Grants | 390,800 | 305,000 | 391,500 |
Exercises | -247,827 | -199,823 | -123,500 |
Cancellations | -68,000 | -52,750 | -11,450 |
Expirations | -231,500 | ' | ' |
Ending balance | 2,371,650 | 2,528,177 | 2,475,750 |
Options exercisable at End of Period | 1,508,350 | ' | ' |
Weighted-average exercise price | ' | ' | ' |
Beginning balance | $13.06 | $12.62 | $12.46 |
Grants | $12.26 | $11.64 | $11.20 |
Exercises | $4.91 | $5.47 | $5.19 |
Cancellations | $16.89 | $12.82 | $13.29 |
Expirations | $22.46 | ' | ' |
Ending balance | $12.75 | $13.06 | $12.62 |
Options exercisable at End of Period | $13.15 | ' | ' |
Weighted-average remaining contractual life (years) | ' | ' | ' |
Options outstanding, Ending balance | '6 years 2 months 16 days | ' | ' |
Options exercisable, Ending balance | '5 years 3 months 22 days | ' | ' |
Aggregate intrinsic value | ' | ' | ' |
Options outstanding, end of period | $10,968,922 | ' | ' |
Options exercisable, end of period | $7,800,990 | ' | ' |
Fair_Value_Stock_Options_at_Gr
Fair Value Stock Options at Grant Date using Weighted-Average Assumption (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Weighted Average Fair Values [Line Items] | ' | ' | ' |
Historical volatility | 61.00% | 61.00% | 60.00% |
Expected term (years) | '5 years 7 months 6 days | '6 years | '5 years 7 months 6 days |
Risk-free interest rate | 0.88% | 1.10% | 1.96% |
Expected dividend yield | 0.97% | 0.86% | 0.89% |
Calculations_of_Basic_and_Dilu
Calculations of Basic and Diluted Income Per Common Share (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' |
Net income - Basic and Diluted | $9,281 | $20,947 | $14,066 |
Weighted-average shares outstanding - Basic | 12,757 | 12,511 | 12,128 |
Effect of dilutive securities: | ' | ' | ' |
Stock options | 286 | 299 | 401 |
Weighted-average shares outstanding - Diluted | 13,043 | 12,810 | 12,529 |
Basic income per common share | $0.73 | $1.67 | $1.16 |
Diluted income per common share | $0.71 | $1.64 | $1.12 |
Income_Per_Common_Share_Additi
Income Per Common Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Options Held | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Diluted Income Per Common Share | 1,417,145 | 1,450,200 | 1,600,413 |
4.75% Convertible Senior Notes | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Diluted Income Per Common Share | ' | ' | 462,192 |
Debt instrument maturity date | '2011-07 | ' | ' |
Components_of_Income_Before_In
Components of Income Before Income Taxes, Equity in Earnings and Extra Ordinary Items (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components Of Earnings Loss Before Income Taxes [Line Items] | ' | ' | ' |
Income before income taxes and equity in earnings | $23,237 | $20,074 | $16,826 |
Domestic | ' | ' | ' |
Components Of Earnings Loss Before Income Taxes [Line Items] | ' | ' | ' |
Income before income taxes and equity in earnings | 26,470 | 20,609 | 16,178 |
Foreign | ' | ' | ' |
Components Of Earnings Loss Before Income Taxes [Line Items] | ' | ' | ' |
Income before income taxes and equity in earnings | ($3,233) | ($535) | $648 |
Provision_for_Income_Taxes_Bef
Provision for Income Taxes (Before Equity in Earnings) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $8,996 | $6,691 | $4,657 |
State and local | 1,707 | 761 | 2,063 |
Foreign | 747 | 503 | 618 |
Deferred | -2,275 | -2,747 | -1,216 |
Income tax provision | $9,175 | $5,208 | $6,122 |
Significant_Components_of_Defe
Significant Components of Deferred Income Tax Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ' | ' |
Deferred rent expense | $3,694 | $4,407 |
Stock options | 3,237 | 3,660 |
Inventory | 1,317 | 1,381 |
Operating loss carry-forward | 2,140 | 1,797 |
Accounts receivable allowances | 192 | 106 |
Accrued compensation | 758 | 669 |
Other | 1,831 | 1,915 |
Total deferred income tax assets | $13,169 | $13,935 |
Significant_Components_of_Net_
Significant Components of Net Deferred Income Tax Asset (Liability) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred income tax liabilities: | ' | ' |
Depreciation and amortization | ($3,826) | ($5,945) |
Intangibles | -5,162 | -4,645 |
Equity in earnings | -805 | -1,964 |
Other | ' | -167 |
Total deferred income tax liabilities | -9,793 | -12,721 |
Net deferred income tax asset | 3,376 | 1,214 |
Valuation allowance | -1,213 | -1,182 |
Net deferred income tax asset (liability) | $2,163 | $32 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Examination [Line Items] | ' | ' | ' |
Income tax benefit for non-cash adjustment to deferred tax liability | ' | $2,300,000 | ' |
Reduction in valuation allowance | 1,900,000 | ' | ' |
Gross liability for tax positions | 351,000 | 301,000 | 134,000 |
Income tax examination net of federal benefit, accrued interest | 71,000 | 39,000 | ' |
Reduction in income tax liability if tax positions sustained | 299,000 | ' | ' |
Gross liability for tax positions | 143,000 | ' | ' |
Income tax examination years description | 'The Company is no longer subject to U.S. Federal income tax examinations for the years prior to 2011. | ' | ' |
Translation Adjustment to Deferred Tax Asset | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' |
Reduction in valuation allowance | 1,100,000 | ' | ' |
State Tax Authority | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' |
Net operating loss carryforward | 14,300,000 | ' | ' |
Net operating loss carryforward expiration | '2014 | ' | ' |
State Tax Authority | Minimum | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' |
Income tax examination year | '2009 | ' | ' |
State Tax Authority | Maximum | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' |
Income tax examination year | '2012 | ' | ' |
Foreign Tax Authority | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' |
Net operating loss carryforward | $4,500,000 | ' | ' |
Net operating loss carryforward expiration | '2016 | ' | ' |
Difference_between_Provision_f
Difference between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Effective Tax Rates Line Items | ' | ' | ' |
Provision for federal income taxes at the statutory rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of Federal income tax benefit | 5.50% | 3.20% | 6.40% |
Foreign rate differences | -1.10% | -1.80% | ' |
Non-deductible stock options | ' | ' | 0.10% |
Non-deductible expenses | 2.80% | 1.20% | 3.40% |
Valuation allowance | ' | ' | -8.20% |
Reduction of deferred tax liabilities related to the prior year | ' | -11.60% | ' |
Other | -2.70% | -0.10% | -0.30% |
Provision for income taxes | 39.50% | 25.90% | 36.40% |
Estimated_Values_of_Gross_Unce
Estimated Values of Gross Uncertain Tax Positions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' | ' |
Beginning Balance | ($301) | ($134) | ($356) |
Additions based on tax positions related to the current year | -31 | ' | ' |
Additions for tax positions of prior years | -164 | -167 | -76 |
Settlements | 145 | ' | 298 |
Ending Balance | ($351) | ($301) | ($134) |
Business_Segments_Additional_I
Business Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of reportable business segment | 2 |
Segment_Reporting_Information_
Segment Reporting Information (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | $502,721 | $486,842 | $444,418 | |||
Income (loss) from operations | 28,186 | 27,335 | 24,584 | |||
Depreciation and amortization | 10,415 | 9,324 | 8,397 | |||
Assets | 336,739 | 348,797 | 318,745 | |||
Capital expenditures | 3,842 | 4,955 | 4,959 | |||
Wholesale | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | 483,094 | 464,862 | 421,119 | |||
Income (loss) from operations | 44,152 | [1] | 40,530 | [1] | 38,410 | [1] |
Depreciation and amortization | 10,150 | 9,074 | 8,183 | |||
Assets | 327,122 | 342,872 | 317,435 | |||
Capital expenditures | 3,647 | 4,897 | 4,730 | |||
Retail Direct | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | 20,680 | 21,980 | 23,299 | |||
Income (loss) from operations | -62 | 463 | -524 | |||
Depreciation and amortization | 265 | 250 | 214 | |||
Assets | 730 | 512 | 813 | |||
Capital expenditures | 195 | 58 | 229 | |||
Non-operating Adjustment | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | -1,053 | [2] | ' | [2] | ' | [2] |
Income (loss) from operations | -1,053 | [2] | ' | [2] | ' | [2] |
Unallocated corporate expenses | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Income (loss) from operations | -14,851 | -13,658 | -13,302 | |||
Assets | $8,887 | $5,413 | $497 | |||
[1] | In 2012, income from operations for the Wholesale segment includes $1.1 million of intangible asset impairment. | |||||
[2] | In 2013, the Company recorded a non-operating adjustment to reduce accounts receivable for previously issued credits within the Retail Direct business which related to 2010 and earlier periods. |
Segment_Reporting_Information_1
Segment Reporting Information (Parenthetical) (Detail) (Wholesale, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Wholesale | ' |
Segment Reporting Information [Line Items] | ' |
Intangible asset impairment | $1.10 |
Net_Sales_and_LongLived_Assets
Net Sales and Long-Lived Assets by Major Geographic Locations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | $502,721 | $486,842 | $444,418 |
Long-lived assets | 122,063 | 136,038 | ' |
United States | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 439,129 | 430,758 | 426,405 |
Long-lived assets | 120,192 | 133,841 | ' |
International | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 63,592 | 56,084 | 18,013 |
Long-lived assets | $1,871 | $2,197 | ' |
Net_Sales_by_Major_Product_Cat
Net Sales by Major Product Categories (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | $502,721 | $486,842 | $444,418 | |||
Wholesale | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | 483,094 | 464,862 | 421,119 | |||
Wholesale | Kitchenware | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | 281,211 | 256,154 | 215,707 | |||
Wholesale | Tableware | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | 149,015 | [1] | 156,532 | [1] | 141,313 | [1] |
Wholesale | Home Solutions | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | $52,868 | $52,176 | $64,099 | |||
[1] | The tableware product category includes Creative Tops revenue, which was previously presented separately. Revenue sources disclosed in 2012 have been reclassified to conform to the current year presentation for comparative purposes. |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Expiry of lease agreements | '2025 | ' | ' |
Rent and related expense | $14,300,000 | $14,800,000 | $13,300,000 |
Sublease rental income | $0 | $0 | $70,000 |
Royalty license expired | '2023 | ' | ' |
Future_Minimum_Payments_Under_
Future Minimum Payments Under Non Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Leases Future Minimum Payments [Line Items] | ' |
2014 | $15,162 |
2015 | 14,877 |
2016 | 13,903 |
2017 | 10,576 |
2018 | 7,284 |
Thereafter | 16,619 |
Total | $78,421 |
Future_Minimum_Royalties_Payab
Future Minimum Royalties Payable (Detail) (Royalty Agreements, USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Royalty Agreements | ' |
Contractual Obligation [Line Items] | ' |
2014 | $6,424 |
2015 | 6,882 |
2016 | 807 |
2017 | 411 |
2018 | 416 |
Thereafter | 1,035 |
Total | $15,975 |
Retirement_Plans_Additional_In
Retirement Plans - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined contribution retirement plan voluntary contributions | $17,500 | ' |
Retirement benefit obligation | 5,212,000 | 5,752,000 |
Retirement Benefit Obligations Discount Rate | 4.50% | 3.60% |
Expected actuarial losses included in accumulated other comprehensive loss in net periodic benefit cost | 47,000 | ' |
Employees 50 years or over | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined contribution retirement plan voluntary contributions | $23,000 | ' |
Future_Retirement_Benefit_Paym
Future Retirement Benefit Payments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $143 |
2015 | 132 |
2016 | 121 |
2017 | 265 |
2018 | 362 |
2019-2023 | 1,753 |
Total | $2,776 |
Components_of_Inventory_Detail
Components of Inventory (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Finished goods | $108,340 | $101,021 |
Work in process | 1,966 | 2,046 |
Raw materials | 2,485 | 1,517 |
Total | $112,791 | $104,584 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Machinery, furniture and equipment | $79,132 | $75,896 |
Leasehold improvements | 26,959 | 26,334 |
Building and improvements | 1,604 | 1,604 |
Construction in progress | 104 | 920 |
Land | 100 | 100 |
Property plant and equipment gross | 107,899 | 104,854 |
Less: accumulated depreciation and amortization | -80,201 | -73,208 |
Total | $27,698 | $31,646 |
Other_Additional_Information_D
Other - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Certain Asset Accounts [Line items] | ' | ' | ' |
Depreciation and amortization expense | $7.70 | $7.80 | $7.50 |
Accumulated depreciation and amortization | ' | ' | ' |
Certain Asset Accounts [Line items] | ' | ' | ' |
Accumulated Depreciation and amortization | 1.9 | 1.9 | ' |
Machinery, furniture and equipment | ' | ' | ' |
Certain Asset Accounts [Line items] | ' | ' | ' |
Accumulated Depreciation and amortization | $2.10 | $2.10 | ' |
Accrued_Expenses_Detail
Accrued Expenses (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Line Items] | ' | ' |
Customer allowances and rebates | $11,756 | $10,595 |
Compensation and benefits | 11,781 | 7,824 |
Interest | 98 | 401 |
Vendor invoices | 5,135 | 5,355 |
Royalties | 2,567 | 2,259 |
Commissions | 1,245 | 1,089 |
Freight | 1,419 | 1,122 |
Other | 5,193 | 3,134 |
Total | 41,095 | 33,354 |
Fred & Friends | ' | ' |
Accrued Liabilities [Line Items] | ' | ' |
Contingent consideration | 1,647 | 730 |
Working capital excess | $254 | $845 |
Deferred_Rent_and_Other_Long_T
Deferred Rent and Other Long Term Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Other Liabilities Noncurrent [Line Items] | ' | ' |
Deferred rent liability | $9,737 | $10,719 |
Retirement benefit obligations | 5,212 | 5,752 |
Contingent consideration related to F&F acquisition | 3,647 | 4,640 |
Derivative liability | 48 | 454 |
Total | $18,644 | $21,565 |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid for interest | $4,115 | $5,498 | $6,877 |
Cash paid for taxes | 10,862 | 6,067 | 10,331 |
Non-cash investing activities: | ' | ' | ' |
Translation adjustment | ($140) | $3,077 | ($704) |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Loss, Net (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Accumulated translation adjustment: | ' | ' | ' | |||
Balance at beginning of year | ($2,804) | ($5,881) | ($5,177) | |||
Translation adjustment during period | -140 | 3,077 | -704 | |||
Balance at end of year | -2,944 | -2,804 | -5,881 | |||
Accumulated effect of retirement benefit obligations: | ' | ' | ' | |||
Balance at beginning of year | -1,160 | ' | ' | |||
Net gain (loss) arising from retirement benefit obligations, net of tax | 361 | -1,187 | ' | |||
Amounts reclassified from accumulated other comprehensive loss: | ' | ' | ' | |||
Amortization of loss, net of tax | 54 | [1] | 27 | [1] | ' | |
Balance at end of year | -745 | -1,160 | ' | |||
Accumulated deferred gains (losses) on cash flow hedges: | ' | ' | ' | |||
Balance at beginning of year | -272 | ' | ' | |||
Derivative fair value adjustment, net of tax | 241 | -272 | ' | |||
Amounts reclassified from accumulated other comprehensive loss: | ' | ' | ' | |||
Hedge de-designation, net of tax | ' | [2] | ' | [2] | ' | [2] |
Balance at end of year | ($31) | ($272) | ' | |||
[1] | Amount is recorded in selling, general and administrative expenses on the consolidated statements of operations. | |||||
[2] | Amount is recorded in interest expense on the consolidated statements of operations. |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event) | 1 Months Ended | 1 Months Ended | |||
Jan. 15, 2014 | Jan. 15, 2014 | Jan. 15, 2014 | Jan. 15, 2014 | Jan. 13, 2014 | |
Thomas Plant | Thomas Plant | Thomas Plant | Thomas Plant | Amended And Restated Credit Agreement | |
USD ($) | GBP (£) | Maximum | Maximum | USD ($) | |
USD ($) | GBP (£) | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Revolving credit facility | ' | ' | ' | ' | $175,000,000 |
Maturity date | ' | ' | ' | ' | 11-Jan-19 |
New Term Loan facility | ' | ' | ' | ' | 50,000,000 |
Percentage of equity interests acquired | 100.00% | 100.00% | ' | ' | ' |
Business acquisition cash paid, net of cash acquired | 61,500,000 | 37,400,000 | ' | ' | ' |
Business acquisition, issuance of common stock shares | 581,432 | 581,432 | ' | ' | ' |
Business acquisition, common stock value | 9,000,000 | 5,500,000 | ' | ' | ' |
Business acquisition, contingent cash consideration payable | ' | ' | $9,000,000 | £ 5,500,000 | ' |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | $3,996 | $4,602 | $12,611 | |||
Additions Due to acquisitions | ' | 246 | ' | |||
Additions Charged to costs and expenses | 6,264 | 6,841 | 3,441 | |||
Deductions | -5,051 | -7,693 | -11,450 | |||
Balance at end of period | 5,209 | 3,996 | 4,602 | |||
Allowance for Doubtful Accounts | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | 361 | 328 | 1,057 | |||
Additions Due to acquisitions | ' | 67 | ' | |||
Additions Charged to costs and expenses | 260 | 181 | 63 | |||
Deductions | -148 | [1] | -215 | [1] | -792 | [1] |
Balance at end of period | 473 | 361 | 328 | |||
Allowance for Sales Returns | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | 3,635 | 4,274 | 11,554 | |||
Additions Due to acquisitions | ' | 179 | ' | |||
Additions Charged to costs and expenses | 6,004 | [2] | 6,660 | [2] | 3,378 | [2] |
Deductions | -4,903 | [3] | -7,478 | [3] | -10,658 | [3] |
Balance at end of period | $4,736 | $3,635 | $4,274 | |||
[1] | Uncollectible accounts written off, net of recoveries. | |||||
[2] | Charged to net sales. | |||||
[3] | Allowances granted. |