Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-19254 | |
Entity Registrant Name | LIFETIME BRANDS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 11-2682486 | |
Entity Address, Address Line One | 1000 Stewart Avenue | |
Entity Address, City or Town | Garden City | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11530 | |
City Area Code | (516) | |
Local Phone Number | 683-6000 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | LCUT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 22,004,268 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0000874396 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 5,930 | $ 27,982 |
Accounts receivable, less allowances of $13,984 at September 30, 2022 and $16,544 at December 31, 2021 | 135,343 | 175,076 |
Inventory | 269,723 | 270,516 |
Prepaid expenses and other current assets | 10,091 | 11,499 |
Income taxes receivable | 2,583 | 0 |
TOTAL CURRENT ASSETS | 423,670 | 485,073 |
PROPERTY AND EQUIPMENT, net | 17,737 | 20,748 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 76,454 | 86,487 |
INVESTMENTS | 14,424 | 22,295 |
INTANGIBLE ASSETS, net | 217,526 | 212,678 |
OTHER ASSETS | 7,117 | 1,793 |
TOTAL ASSETS | 756,928 | 829,074 |
CURRENT LIABILITIES | ||
Long-term Debt, Current Maturities | 0 | 5,771 |
Accounts payable | 42,960 | 82,573 |
Accrued expenses | 79,117 | 112,241 |
Income taxes payable | 0 | 604 |
Current portion of operating lease liabilities | 13,859 | 12,612 |
TOTAL CURRENT LIABILITIES | 135,936 | 213,801 |
OTHER LONG-TERM LIABILITIES | 16,656 | 12,616 |
INCOME TAXES PAYABLE, LONG-TERM | 1,472 | 1,472 |
OPERATING LEASE LIABILITIES | 78,534 | 90,824 |
DEFERRED INCOME TAXES | 12,981 | 12,842 |
REVOLVING CREDIT FACILITY | 32,545 | 0 |
TERM LOAN | 242,505 | 241,873 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $1.00 par value, shares authorized: 100 shares of Series A and 2,000,000 shares of Series B; none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, shares authorized: 50,000,000 at September 30, 2022 and December 31, 2021; shares issued and outstanding: 22,004,268 at September 30, 2022 and 22,018,016 at December 31, 2021 | 220 | 220 |
Paid-in capital | 274,301 | 271,556 |
Retained earnings | 437 | 17,419 |
Accumulated other comprehensive loss | (38,659) | (33,549) |
TOTAL STOCKHOLDERS’ EQUITY | 236,299 | 255,646 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 756,928 | $ 829,074 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts receivable, allowances | $ 13,984 | $ 16,544 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 22,004,268 | 22,018,016 |
Common stock, shares outstanding (in shares) | 22,004,268 | 22,018,016 |
Preferred stock Series A | ||
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 100 | 100 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Preferred stock Series B | ||
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 186,590 | $ 224,777 | $ 520,621 | $ 607,066 |
Cost of sales | 118,757 | 141,662 | 334,553 | 391,790 |
Gross margin | 67,833 | 83,115 | 186,068 | 215,276 |
Distribution expenses | 18,641 | 18,893 | 55,239 | 56,470 |
Selling, general and administrative expenses | 36,462 | 42,042 | 114,208 | 116,379 |
Wallace facility remediation expense | 5,140 | 500 | 5,140 | 500 |
Income from operations | 7,590 | 21,680 | 11,481 | 41,927 |
Interest expense | (4,581) | (3,835) | (12,080) | (11,668) |
Mark to market gain on interest rate derivatives | 637 | 120 | 1,990 | 664 |
Income before income taxes and equity in (losses) earnings | 3,646 | 17,965 | 1,391 | 30,923 |
Income tax provision | (1,845) | (5,589) | (3,420) | (9,837) |
Equity in (losses) earnings, net of taxes | (8,159) | 195 | (7,409) | 341 |
NET (LOSS) INCOME | $ (6,358) | $ 12,571 | $ (9,438) | $ 21,427 |
Basic income (loss) per common share (usd per share) | $ (0.30) | $ 0.58 | $ (0.44) | $ 1 |
Diluted income (loss) per common share (usd per share) | $ (0.30) | $ 0.57 | $ (0.44) | $ 0.98 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (6,358) | $ 12,571 | $ (9,438) | $ 21,427 |
Other comprehensive (loss) income, net of taxes: | ||||
Translation adjustment | (2,686) | 240 | (7,109) | 4,463 |
Net change in cash flow hedges | 354 | 992 | 1,912 | 1,055 |
Effect of retirement benefit obligations | 29 | 33 | 87 | 101 |
Other comprehensive (loss) income, net of taxes | (2,303) | 1,265 | (5,110) | 5,619 |
Comprehensive (loss) income | $ (8,661) | $ 13,836 | $ (14,548) | $ 27,046 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Paid-in capital | Retained earnings | Accumulated other comprehensive loss | ||
Beginning Balance (in shares) at Dec. 31, 2020 | 21,755,000 | ||||||
Balance at beginning of year at Dec. 31, 2020 | $ 230,136 | $ 218 | $ 268,666 | $ 424 | $ (39,172) | ||
Comprehensive income (loss): | |||||||
Net (loss) income | 3,067 | 3,067 | |||||
Other Comprehensive Income (Loss), Net of Tax | 1,683 | 1,683 | |||||
Performance shares issued to employees (in shares) | 150,000 | ||||||
Performance shares issued to employees | $ 1 | (1) | |||||
Net issuance of restricted shares to employees and directors (in shares) | (177,000) | ||||||
Net issuance of restricted shares granted to employees | $ 2 | (2) | |||||
Stock compensation expense | 1,439 | 1,439 | |||||
Net exercise of stock options (in shares) | 44,000 | ||||||
Net exercise of stock options | 184 | 184 | |||||
Shares effectively repurchased for required employee withholding taxes (in shares) | (146,000) | ||||||
Shares effectively repurchased for required employee withholding taxes | (2,160) | $ (1) | (2,159) | ||||
Dividends | [1] | (943) | (943) | ||||
Ending Balance (in shares) at Mar. 31, 2021 | 21,980,000 | ||||||
Balance at end of year at Mar. 31, 2021 | 233,406 | $ 220 | 268,127 | 2,548 | (37,489) | ||
Beginning Balance (in shares) at Dec. 31, 2020 | 21,755,000 | ||||||
Balance at beginning of year at Dec. 31, 2020 | 230,136 | $ 218 | 268,666 | 424 | (39,172) | ||
Comprehensive income (loss): | |||||||
Net (loss) income | 21,427 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 5,619 | ||||||
Ending Balance (in shares) at Sep. 30, 2021 | 22,018,000 | ||||||
Balance at end of year at Sep. 30, 2021 | 255,975 | $ 220 | 270,309 | 18,999 | (33,553) | ||
Beginning Balance (in shares) at Mar. 31, 2021 | 21,980,000 | ||||||
Balance at beginning of year at Mar. 31, 2021 | 233,406 | $ 220 | 268,127 | 2,548 | (37,489) | ||
Comprehensive income (loss): | |||||||
Net (loss) income | 5,789 | 5,789 | |||||
Other Comprehensive Income (Loss), Net of Tax | 2,671 | 2,671 | |||||
Net issuance of restricted shares to employees and directors (in shares) | (44,000) | ||||||
Net issuance of restricted shares granted to employees | $ 0 | 0 | |||||
Stock compensation expense | 1,323 | 1,323 | |||||
Net exercise of stock options (in shares) | 50,000 | ||||||
Net exercise of stock options | 551 | $ 1 | 550 | ||||
Shares effectively repurchased for required employee withholding taxes (in shares) | (67,000) | ||||||
Shares effectively repurchased for required employee withholding taxes | (1,025) | $ (1) | (1,024) | ||||
Dividends | [1] | (914) | (914) | ||||
Ending Balance (in shares) at Jun. 30, 2021 | 22,007,000 | ||||||
Balance at end of year at Jun. 30, 2021 | 241,801 | $ 220 | 268,976 | 7,423 | (34,818) | ||
Comprehensive income (loss): | |||||||
Net (loss) income | 12,571 | 12,571 | |||||
Other Comprehensive Income (Loss), Net of Tax | 1,265 | 1,265 | |||||
Stock compensation expense | 1,192 | 1,192 | |||||
Net exercise of stock options (in shares) | 12,000 | ||||||
Net exercise of stock options | 142 | 142 | |||||
Shares effectively repurchased for required employee withholding taxes (in shares) | (1,000) | ||||||
Shares effectively repurchased for required employee withholding taxes | (1) | [1] | (1) | ||||
Treasury Stock, Shares, Acquired | 0 | ||||||
Stock Repurchased During Period, Value | (995) | $ 0 | 0 | (995) | |||
Dividends | [1] | 0 | |||||
Ending Balance (in shares) at Sep. 30, 2021 | 22,018,000 | ||||||
Balance at end of year at Sep. 30, 2021 | 255,975 | $ 220 | 270,309 | 18,999 | (33,553) | ||
Beginning Balance (in shares) at Dec. 31, 2021 | 22,018,000 | ||||||
Balance at beginning of year at Dec. 31, 2021 | 255,646 | $ 220 | 271,556 | 17,419 | (33,549) | ||
Comprehensive income (loss): | |||||||
Net (loss) income | 380 | 380 | |||||
Other Comprehensive Income (Loss), Net of Tax | 521 | 521 | |||||
Performance shares issued to employees (in shares) | 167,000 | ||||||
Performance shares issued to employees | $ 2 | (2) | |||||
Net issuance of restricted shares to employees and directors (in shares) | (207,000) | ||||||
Net issuance of restricted shares granted to employees | $ 2 | (2) | |||||
Stock compensation expense | 1,151 | 1,151 | |||||
Net exercise of stock options (in shares) | 22,000 | ||||||
Net exercise of stock options | 233 | 233 | |||||
Shares effectively repurchased for required employee withholding taxes (in shares) | (45,000) | ||||||
Shares effectively repurchased for required employee withholding taxes | (568) | [1] | $ 0 | (568) | |||
Treasury Stock, Shares, Acquired | (51,000) | ||||||
Stock Repurchased During Period, Value | (671) | $ (1) | (670) | 0 | |||
Dividends | (960) | (960) | |||||
Ending Balance (in shares) at Mar. 31, 2022 | 22,318,000 | ||||||
Balance at end of year at Mar. 31, 2022 | 255,732 | $ 223 | 271,698 | 16,839 | (33,028) | ||
Beginning Balance (in shares) at Dec. 31, 2021 | 22,018,000 | ||||||
Balance at beginning of year at Dec. 31, 2021 | 255,646 | $ 220 | 271,556 | 17,419 | (33,549) | ||
Comprehensive income (loss): | |||||||
Net (loss) income | (9,438) | ||||||
Other Comprehensive Income (Loss), Net of Tax | $ (5,110) | ||||||
Net exercise of stock options (in shares) | 60,000 | ||||||
Treasury Stock, Shares, Acquired | (389,743) | ||||||
Stock Repurchased During Period, Value | $ (4,700) | ||||||
Dividends | (2,900) | ||||||
Ending Balance (in shares) at Sep. 30, 2022 | 22,004,000 | ||||||
Balance at end of year at Sep. 30, 2022 | 236,299 | $ 220 | 274,301 | 437 | (38,659) | ||
Beginning Balance (in shares) at Mar. 31, 2022 | 22,318,000 | ||||||
Balance at beginning of year at Mar. 31, 2022 | 255,732 | $ 223 | 271,698 | 16,839 | (33,028) | ||
Comprehensive income (loss): | |||||||
Net (loss) income | (3,460) | (3,460) | |||||
Other Comprehensive Income (Loss), Net of Tax | (3,328) | (3,328) | |||||
Net issuance of restricted shares to employees and directors (in shares) | (54,000) | ||||||
Net issuance of restricted shares granted to employees | $ 1 | (1) | |||||
Stock compensation expense | 1,280 | 1,280 | |||||
Net exercise of stock options (in shares) | 3,000 | ||||||
Net exercise of stock options | 0 | 0 | |||||
Shares effectively repurchased for required employee withholding taxes (in shares) | (30,000) | ||||||
Shares effectively repurchased for required employee withholding taxes | (370) | [1] | $ (1) | (369) | |||
Treasury Stock, Shares, Acquired | (286,000) | ||||||
Stock Repurchased During Period, Value | (3,528) | $ (2) | 671 | (4,197) | |||
Dividends | (958) | (958) | |||||
Ending Balance (in shares) at Jun. 30, 2022 | 22,059,000 | ||||||
Balance at end of year at Jun. 30, 2022 | 245,368 | $ 221 | 273,279 | 8,224 | (36,356) | ||
Comprehensive income (loss): | |||||||
Net (loss) income | (6,358) | (6,358) | |||||
Other Comprehensive Income (Loss), Net of Tax | (2,303) | (2,303) | |||||
Net issuance of restricted shares to employees and directors (in shares) | (1,000) | ||||||
Net issuance of restricted shares granted to employees | $ 0 | 0 | |||||
Stock compensation expense | 1,023 | 1,023 | |||||
Shares effectively repurchased for required employee withholding taxes (in shares) | (1,000) | ||||||
Shares effectively repurchased for required employee withholding taxes | $ 0 | [1] | $ 0 | 0 | |||
Treasury Stock, Shares, Acquired | (52,952) | (53,000) | |||||
Stock Repurchased During Period, Value | $ (479) | $ (1) | (1) | (477) | |||
Dividends | (952) | (952) | |||||
Ending Balance (in shares) at Sep. 30, 2022 | 22,004,000 | ||||||
Balance at end of year at Sep. 30, 2022 | $ 236,299 | $ 220 | $ 274,301 | $ 437 | $ (38,659) | ||
[1]Cash dividends declared per share of common stock were $0.1275 and $0.1275 in the nine months ended September 30, 2022 and 2021, respectively. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 9 Months Ended | ||||
Aug. 02, 2022 | Jun. 23, 2022 | Mar. 08, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||||
Dividend per share of common stock (usd per share) | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.1275 | $ 0.1275 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
OPERATING ACTIVITIES | ||
Net (loss) income | $ (9,438) | $ 21,427 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 14,535 | 17,560 |
Amortization of financing costs | 1,305 | 1,309 |
Mark to market (gain) on interest rate derivatives | (1,990) | (664) |
Non-cash lease expense | (1,055) | (1,089) |
Recovery for doubtful accounts | (140) | (166) |
Stock compensation expense | (3,565) | (3,973) |
Undistributed losses (earnings) from equity investment, net of taxes | 7,409 | (341) |
Changes in operating assets and liabilities (excluding the effects of business acquisitions) | ||
Accounts receivable | 38,765 | 659 |
Inventory | (3,694) | (54,117) |
Prepaid expenses, other current assets and other assets | (177) | 4,733 |
Accounts payable, accrued expenses and other liabilities | (66,062) | 24,093 |
Income taxes receivable | (2,583) | 0 |
Income taxes payable | (525) | (2,779) |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (20,085) | 14,598 |
INVESTING ACTIVITIES | ||
Purchases of property and equipment | (1,975) | (3,361) |
Acquisitions | 178 | |
NET CASH USED IN INVESTING ACTIVITIES | (19,931) | (478) |
FINANCING ACTIVITIES | ||
Payments for finance lease obligations | (24) | (71) |
Payments of tax withholding for stock based compensation | (938) | (3,186) |
Proceeds from the exercise of stock options | 233 | 877 |
Payments for Repurchase of Common Stock | (4,678) | 0 |
Cash dividends paid | (2,887) | (2,913) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 18,427 | (41,457) |
Effect of foreign exchange on cash | (463) | 56 |
DECREASE IN CASH AND CASH EQUIVALENTS | (22,052) | (27,281) |
Cash and cash equivalents at beginning of period | 27,982 | 35,963 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 5,930 | 8,682 |
Net (loss) income | (9,438) | 21,427 |
Depreciation and amortization | 14,535 | 17,560 |
Amortization of financing costs | 1,305 | 1,309 |
Mark to market gain on interest rate derivatives | 1,990 | 664 |
Non-cash lease expense | (1,055) | (1,089) |
Recovery for doubtful accounts | (140) | (166) |
Stock compensation expense | 3,565 | 3,973 |
Undistributed losses (earnings) from equity investment, net of taxes | 7,409 | (341) |
Increase (Decrease) in Accounts Receivable | (38,765) | (659) |
Increase (Decrease) in Inventories | 3,694 | 54,117 |
Increase (Decrease) in Prepaid Expense and Other Assets | 177 | (4,733) |
Accounts payable, accrued expenses and other liabilities | (66,062) | 24,093 |
Income taxes payable | (525) | (2,779) |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (20,085) | 14,598 |
Payments to Acquire Property, Plant, and Equipment | 1,975 | 3,361 |
Acquisitions | (178) | |
Net Cash Provided by (Used in) Investing Activities | (19,931) | (478) |
Repayments of short-term loan | (882) | 0 |
Payments for finance lease obligations | 24 | 71 |
Payments Related to Tax Withholding for Share-based Compensation | 938 | 3,186 |
Proceeds from the exercise of stock options | 233 | 877 |
Payments for stock repurchase | 4,678 | 0 |
Cash dividends paid | 2,887 | 2,913 |
Net Cash Provided by (Used in) Financing Activities | 18,427 | (41,457) |
Effect of foreign exchange on cash | (463) | 56 |
DECREASE IN CASH AND CASH EQUIVALENTS | (22,052) | (27,281) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 5,930 | 8,682 |
S'well [Member] | ||
INVESTING ACTIVITIES | ||
Acquisitions | 17,956 | |
Acquisitions | (17,956) | |
Revolving Credit Facility | ||
FINANCING ACTIVITIES | ||
Proceeds from revolving credit facility | 264,184 | 16,845 |
Proceeds from short term loan | (230,365) | (42,531) |
Proceeds from revolving credit facility | 264,184 | 16,845 |
Repayments of Long-term Lines of Credit | 230,365 | 42,531 |
Term Loan | ||
FINANCING ACTIVITIES | ||
Proceeds from short term loan | (6,216) | (10,478) |
Repayments of Long-term Lines of Credit | 6,216 | 10,478 |
Grupo Vasconia S.A.B. | ||
Proceeds from sale of shares of equity method investment | $ 0 | $ 3,061 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF 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 widely-recognized brand names and trademarks, which are either owned or licensed by the Company or through retailers’ private labels and their licensed brands. The Company’s products, which are targeted primarily towards consumers purchasing moderately priced kitchenware, tableware and housewares, are sold through virtually every major level of trade. The Company generally markets several lines within each of its product categories under more than one brand. The Company sells its products directly to retailers (who may resell the Company’s products through their websites) and, to a lesser extent, to distributors. The Company also sells a limited selection of its products directly to consumers through its own websites. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, which consist of normal recurring accruals and non-recurring adjustments, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The Company’s business and working capital needs are seasonal, with a majority of sales occurring in the third and fourth quarters. In 2021 and 2020, net sales for the third and fourth quarters accounted for 56% and 62% of total annual net sales, respectively. The increase in the Company's net sales in the first half of the year in 2021 compared to historical trend was a result of increased demand for the Company's products due to shifts in consumer purchasing patterns. In anticipation of the pre-holiday shipping season, inventory levels increase primarily in the June through October time period. In 2022, the Company's inventory trends may deviate from historical trends due to a change in inventory strategy to react to the current market conditions impacting the Company and retailers. The Company’s current estimates contemplate current and expected future conditions, as applicable, however it is reasonably possible that actual conditions could differ from expectations, which could materially affect the Company’s results of operations and financial position. Revenue recognition The Company sells products wholesale, to retailers and distributors, and retail, directly to the consumer. Wholesale sales and retail sales are primarily recognized at the point in time the customer obtains control of the products, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. The Company offers various sales incentives and promotional programs to its customers 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 for products expected to be returned are reflected as reductions of revenue at the time of sale. See NOTE 2 —REVENUE to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information. 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. Handling costs of products sold are included in cost of sales. 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, taking into consideration customer credit history and financial condition, industry and market segment information, credit reports, and economic trends and conditions such as the impacts of the COVID-19 pandemic. 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. Receivable purchase agreement The Company has an uncommitted Receivables Purchase Agreement with HSBC Bank USA, National Association (“HSBC”) as Purchaser (the “Receivables Purchase Agreement”). The sale of accounts receivable, under the Receivables Purchase Agreement with HSBC, is excluded from the Company’s unaudited condensed consolidated balance sheets at the time of sale and the related sale expense is included in selling, general and administrative expenses in the Company’s unaudited condensed consolidated statements of operations. Pursuant to the Receivable Purchase Agreement, the Company sold to HSBC $30.0 million and $109.8 million of receivables during the three and nine months ended September 30, 2022, respectively and $33.7 million and $113.2 million of receivables during three and nine months ended September 30, 2021, respectively. Charges of $0.2 million and $0.1 million related to the sale of the receivables are included in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations for the three months ended September 30, 2022 and 2021, respectively. Charges of $0.5 million and $0.3 million related to the sale of the receivables are included in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2022 and 2021, respectively. At September 30, 2022 and 2021, $20.2 million and $15.8 million, respectively, of receivables sold were outstanding and due to HSBC from customers. 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 net realizable value. 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. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation. The components of inventory were as follows (in thousands): September 30, December 31, 2021 Finished goods $ 258,781 $ 259,916 Work in process 277 159 Raw materials 10,665 10,441 Total $ 269,723 $ 270,516 Fair value of financial instruments The Company determined that 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 ABL Agreement and Term Loan (each as defined in NOTE 7 — DEBT to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q) approximate fair value since such borrowings bear interest at variable market rates. Derivatives The Company accounts for derivative instruments in accordance with Accounting Standard Codification (“ASC”) Topic 815, Derivatives and Hedging ( “ASC 815” ) . ASC 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 until the hedged item is recognized in earnings. The changes in the fair value of hedges are included in accumulated other comprehensive loss and are subsequently recognized in the Company’s unaudited condensed consolidated statements of operations to mirror the location of the hedged items impacting earnings. Changes in fair value of derivatives that do not qualify as hedging instruments for accounting purposes are recorded in the Company’s unaudited condensed consolidated statements of operations. 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 quantitative goodwill impairment testing described in the Financial Accounting Standards Board's (“FASB”) Accounting Standards Update No. (“ASU”) Topic 350, Intangibles – Goodwill and Other. If, after assessing qualitative factors, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the quantitative test is unnecessary and the Company’s goodwill is considered to be unimpaired. However, if based on the Company’s qualitative assessment it concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative assessment, the Company will proceed with performing the quantitative impairment test. The Company reviews goodwill and other intangibles that have indefinite lives for impairment annually as of October 1 or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing is based upon the best information available, including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. The significant assumptions used under the income approach, or discounted cash flow method, are projected net sales, projected earnings before interest, tax, depreciation and amortization (“EBITDA”), terminal growth rates, and the cost of capital. Projected net sales, projected EBITDA and terminal growth rates were determined to be significant assumptions because they are three primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected cash flows. For the guideline public company method, significant assumptions relate to the selection of appropriate guideline companies and related valuation multiples used in the market analysis. Although the Company believes the assumptions and estimates made are reasonable and appropriate, different assumptions and estimates could materially impact its reported financial results. In addition, sustained declines in the Company’s stock price and related market capitalization could impact key assumptions in the overall estimated fair values of its reporting units and could result in non-cash impairment charges that could be material to the Company’s consolidated balance sheet or results of operations. Should the carrying value of a reporting unit be in excess of the estimated fair value of that reporting unit, an impairment charge will be recorded to reduce the reporting unit to fair value. The Company also evaluates qualitative factors to determine whether impairment indicators exist for its indefinite lived intangibles and performs quantitative tests if required. These tests can include the relief from royalty 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 the carrying amount of an asset may not be recoverable. 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 recoverability of the asset is measured by comparing the carrying value of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset is not recoverable, the impairment to be recognized is measured by the amount by which the carrying amount of each long-lived asset exceeds the fair value of the asset. See NOTE 6 — INTANGIBLE ASSETS to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information. Leases The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use (“ROU”) assets are included in operating lease right-of-use assets on the condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liability and operating lease liabilities, respectively, on the condensed consolidated balance sheets. Finance leases are included in property and equipment, net, accrued expenses and other long-term liabilities. The Company’s finance leases are not material to the Company’s condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset may also include any lease payments made, adjusted for any prepaid or accrued rent payments, lease incentives, and initial direct costs incurred. Certain leases may include options to extend or terminate the lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For certain equipment leases, the Company applies a portfolio approach to effectively account for any ROU assets and lease liabilities. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. 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. Generally, a liability has been incurred at the communication date for severance. Charges associated with lease terminations, related to restructuring activities, are recognized at the effective date of the lease modification. On October 18, 2022, the Company's management approved a reorganization plan related to a reduction in its U.K. workforce. The reorganization is the result of the Company’s efforts to realign the management and operating structure of the U.K. business in response to changing market conditions. The restructuring expense expected to be incurred with this plan is $0.6 million and will be recorded in the fourth quarter of 2022. The Company expects the restructuring to be completed in Q4 2022, and expects annual savings of $2.3 million associated with the plan. On November 1, 2022, the Company entered into a transition agreement with its Executive Chairman, Jeffrey Siegel, which terminates his employment with the Company on March 31, 2023. The transition agreement amends Mr. Siegel’s employment agreement which was set to expire on December 31, 2022. The employment agreement provides for a one-time termination payment which will now be paid upon the expiration of the transition agreement. The Company estimates the one-time termination payment to be approximately $1.4 million and expects it to be recognized over the remaining employment period. Adoption of new accounting pronouncements Effective January 1, 2022, the Company adopted ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers. The adoption did not have a material impact on the Company’s condensed consolidated financial statements. New accounting pronouncements Updates not listed below were assessed and either determined to not be applicable or are expected to have a minimal effect on the Company’s financial position, results of operations, and disclosures. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. ASU 2016-13 also provides updated guidance regarding the impairment of available-for-sale debt securities and includes additional disclosure requirements. The new guidance is effective for public business entities that meet the definition of a Smaller Reporting Company, as defined by the Securities and Exchange Commission for interim and annual periods beginning after December 15, 2022. The Company met the definition of a Smaller Reporting Company as of the one-time determination date of November 15, 2019. Early adoption is permitted. Management expects the adoption of ASU 2016-13 will not have a material impact on the Company's consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions to account for contract modifications, hedging relationships and other transactions that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate that is expected to be discontinued as a result of reference rate reform. The guidance in ASU 2020-04 may be applied to contract modifications and hedging relationships as of any date from March 12, 2020, but no later than December 31, 2022, and should be applied on a prospective basis. The Company has not yet applied the guidance in ASU 2020-04 and is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company sells products wholesale, to retailers and distributors, and sells products retail, directly to consumers. Wholesale sales and retail sales are recognized at the point in time the customer obtains control of the products in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. To indicate the transfer of control, the Company must have a present right to payment, legal title must have passed to the customer, the customer must have the significant risks and rewards of ownership, and where acceptance is not a formality, the customer must have accepted the product or service. The Company’s principal terms of sale are Free On Board (“FOB”) Shipping Point, or equivalent, and, as such, the Company primarily transfers control and records revenue for product sales upon shipment. Sales arrangements with delivery terms that are not FOB Shipping Point are not recognized upon shipment and the transfer of control for revenue recognition is evaluated based on the associated shipping terms and customer obligations. Shipping and handling fees that are billed to customers in sales transactions are included in net sales and amounted to $1.2 million and $3.2 million for the three and nine months ended September 30, 2022, respectively, and $1.0 million and $2.4 million for the three and nine months ended September 30, 2021, respectively. 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 wholesale 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, which represent forms of variable consideration and an estimate of sales returns, are reflected as reductions in net sales in the Company’s unaudited condensed consolidated statements of operations. These estimates are based on historical experience and other known factors or as the most likely amount in a range of possible outcomes. On a quarterly basis, variable consideration is assessed on a portfolio approach in estimating the extent to which the components of variable consideration are constrained. Payment terms vary by customer, but generally range from 30 to 90 days or at the point of sale for the Company’s retail direct sale s. The Company incurs certain direct incremental costs to obtain contracts with customers, such as sales-related co mmissions, where the recognition period for the related revenue is less than one year. These costs are expensed as incurred and recorded within selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. Incidental items that are immaterial in the context of the contract are expensed as incurred. The following tables present the Company’s net sales disaggregated by segment, product category and geographic region for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 U.S. segment Kitchenware $ 92,587 $ 113,429 $ 291,062 $ 337,051 Tableware 44,515 51,667 101,035 119,188 Home Solutions 35,716 32,628 84,130 84,249 Total U.S. segment 172,818 197,724 476,227 540,488 International segment 13,772 27,053 44,394 66,578 Total net sales $ 186,590 $ 224,777 $ 520,621 $ 607,066 United States $ 163,304 $ 189,456 $ 454,356 $ 522,170 United Kingdom 8,676 15,741 27,515 38,376 Rest of World 14,610 19,580 38,750 46,520 Total net sales $ 186,590 $ 224,777 $ 520,621 $ 607,066 |
ACQUISITION
ACQUISITION | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITION S'well On March 2, 2022, the Company acquired certain assets of Can't Live Without It, LLC. (dba S'well Bottle and which the Company refers to as “S'well”). The Company paid cash consideration of $18.0 million. The transaction also includes up to $5.0 million in contingent consideration, subject to the acquired brand reaching certain milestones. The preliminary purchase price was comprised of the following (in thousands): Cash paid $ 17,956 Value of contingent consideration 650 Total purchase price $ 18,606 The value of contingent consideration represents the present value of estimated contingent payments of $0.7 million, related to the attainment of certain net sales contribution targets for the year 2024. Acquisition related costs of $0.9 million were recorded within selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. The purchase price was allocated based on the Company’s preliminary estimate of the fair values of the assets acquired and liabilities assumed at the acquisition date, as follows (in thousands): Purchase Price Allocation Accounts receivable $ 2,280 Inventory 4,005 Fixed assets 40 Intangible assets 13,000 Goodwill 2,966 Accounts payable and accrued expenses (3,685) Total allocated value $ 18,606 The acquisition is being accounted for as a business combination using the acquisition method of accounting in accordance with FASB ASC Topic 805, Business Combinations (“ASC Topic 805”), which established a new basis of accounting for all identifiable assets acquired and liabilities assumed at fair value. ASC Topic 805 allows the acquiring company to adjust preliminary amounts recognized at the acquisition date to their subsequently determined final fair values during a measurement period, generally up to one year from the date of the acquisition. The preliminary estimated fair values that are not yet finalized relate to the valuation of accounts receivable, inventory, accounts payable, accrued expenses, intangibles, deferred taxes and valuation of the contingent consideration. The goodwill recognized results from such factors as assembled workforce and the value of other synergies expected from combining operations with the Company. The associated goodwill is deductible for tax purposes over 15 years. Goodwill and the trade name intangible asset are included in the U.S. segment. For financial purposes, the trade name intangible asset is amortized on a straight-line basis over its estimated useful life of 12 years (see NOTE 6 — INTANGIBLE ASSETS). The condensed consolidated statement of operations includes $8.0 million and $12.4 million of net sales attributable to the S'well brand for the three and nine months ended September 30, 2022, respectively. Year & Day On February 26, 2021, the Company acquired the business and certain assets of Year & Day, a designer and distributor of ceramic dinnerware, stainless steel flatware and Italian glassware for cash in the amount of $0.2 million. The assets and operating results of the Year & Day brand are reflected in the Company’s condensed consolidated financial statements in accordance with ASC Topic No. 805, Business Combinations, commencing from the acquisition date. The purchase price was allocated based on the fair values of the assets acquired which consisted of inventory of $0.3 million and liabilities assumed of $(0.1) million. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating leases for corporate offices, distribution facilities, a manufacturing plant, and certain vehicles. The components of lease expense for the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Operating lease expenses (1) : Fixed lease expense $ 4,463 $ 4,471 $ 13,392 $ 13,467 Variable lease expense 1,187 917 3,532 2,844 Total $ 5,650 $ 5,388 $ 16,924 $ 16,311 (1) Expenses are recorded within distribution expenses and selling, general and administrative expenses on the unaudited condensed consolidated statement of operations. Supplemental cash flow information for lease related liabilities and assets for the nine months ended September 30, 2022 and 2021 were as follows (in thousands): Nine Months Ended 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 14,447 $ 14,556 Nine Months Ended 2022 2021 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,477 $ 1,307 The aggregate future lease payments for operating leases as of September 30, 2022 were as follows (in thousands): Operating 2022 (excluding the nine months ended September 30, 2022) $ 4,842 2023 18,879 2024 18,349 2025 17,766 2026 17,063 2027 12,980 Thereafter 22,595 Total lease payments 112,474 Less: Interest (20,081) Present value of lease payments $ 92,393 Average lease terms and discount rates were as follows: September 30, 2022 Operating leases: Weighted-average remaining lease term (years) 6.5 Weighted-average discount rate 6.1 % |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | INVESTMENTS As of September 30, 2022, the Company owned 24.7% 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. 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 condensed consolidated statements 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 three and nine months ended September 30, 2022 and 2021 in the accompanying unaudited condensed consolidated statements of operations. On June 30, 2021, Vasconia issued additional shares of its stock, which diluted the Company’s investment ownership from approximately 30% to approximately 27%. The Company recorded a non-cash gain of $1.7 million, increasing the Company’s investment balance. Additionally, a loss of $2.0 million was recognized for the proportionate share of the diluted ownership for amounts previously recognized in accumulated other comprehensive loss. The net loss of $0.3 million was included in equity in earnings, net of taxes, in the accompanying unaudited condensed consolidated statements of operations for the nine months ended September 30, 2021. On July 29, 2021, the Company sold 2.2 million shares further reducing its ownership from approximately 27% to approximately 25% in Vasconia for net cash proceeds of approximately $3.1 million. As a result, the Company recorded a gain of $1.0 million, after decreasing the Company’s investment balance. The gain on the sale resulted in a tax expense of $0.1 million. Additionally, a loss of $1.4 million was recognized for the proportionate share of the reduced ownership for amounts previously recognized in accumulated other comprehensive loss. The net loss, including taxes, of $0.5 million was included in equity in earnings (losses), net of taxes, in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2021. The value of the Company’s investment balance has been translated from Mexican Pesos (“MXN”) to U.S. Dollars (“USD”) using the spot rates of MXN 20.13 and MXN 20.46 at September 30, 2022 and December 31, 2021, respectively. The Company’s proportionate share of Vasconia’s net (loss) income has been translated from MXN to USD using the following exchange rates: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Average exchange rate (USD to MXN) 20.22 20.01 20.02 - 20.50 20.01 - 20.33 The effect of the translation of the Company’s investment, as well as the translation of Vasconia’s balance sheet, resulted in a decrease to the investment of $0.5 million and an increase of $1.3 million during the nine months ended September 30, 2022 and 2021, respectively. These translation effects are recorded in accumulated other comprehensive loss. Summarized income statement information for the three and nine months ended September 30, 2022 and 2021 for Vasconia in USD and MXN is as follows (in thousands): Three Months Ended 2022 2021 USD MXN USD MXN Net sales $ 56,488 $ 1,142,171 $ 61,783 $ 1,236,289 Gross profit 4,405 89,061 12,958 259,285 (Loss) income from operations (5,459) (110,380) 3,886 77,756 Net (loss) income (8,009) (161,936) 2,952 59,063 Nine Months Ended 2022 2021 USD MXN USD MXN Net Sales $ 187,001 $ 3,785,921 $ 174,468 $ 3,508,858 Gross profit 29,629 600,976 40,837 821,125 (Loss) income from operations (256) (3,974) 14,169 284,799 Net (loss) income (4,875) (98,366) 4,562 91,063 The Company recorded equity in losses of Vasconia, net of taxes, of $8.2 million and $7.4 million for the three and nine months ended September 30, 2022, respectively. Equity in losses for the three and nine months ended September 30, 2022, included a non-cash charge of $6.2 million for an impairment charge to write-down the Company's investment balance to fair value, as discussed below. The Company recorded equity in earnings of Vasconia, net of taxes, of $0.7 million and $1.2 million for the three and nine months ended September 30, 2021, respectively. Included within the Company's unaudited condensed consolidated balance sheets were the following amounts due to and due from Vasconia (in thousands): Vasconia due to and due from balances Balance Sheet Location September 30, 2022 December 31, 2021 Amounts due from Vasconia Prepaid expenses and other current assets $ 80 $ 80 Amounts due to Vasconia Accrued expenses and Accounts payable (1) (146) The fair value (based on Level 1 inputs using the quoted stock price) of the Company's investment in Vasconia declined in the third quarter. As a result of the decline in the quoted stock price and the quarterly decline in the operating results of Vasconia the Company determined the decline in fair value was other than temporary. The Company reduced its investment by $6.2 million during the three months ended September 30, 2022 to its fair value. The carrying value of the Company’s investment in Vasconia, after the recorded impairment, was $14.4 million as of September 30, 2022. As of December 31, 2021, the fair value (based on Level 1 inputs using the quoted stock price) of the Company’s investment in Vasconia was $31.5 million. The carrying value of the Company’s investment in Vasconia was $22.3 million as of December 31, 2021, respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets consisted of the following as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Gross Accumulated Net Gross Impairment Accumulated Net Goodwill $ 33,237 $ — $ 33,237 $ 30,271 $ — $ — $ 30,271 Indefinite-lived intangible assets: Trade names 49,600 — 49,600 49,600 — — 49,600 Finite-lived intangible assets: Licenses 15,847 (11,540) 4,307 15,847 — (11,198) 4,649 Trade names (1) 54,619 (18,980) 35,639 51,856 (2,546) (23,829) 25,481 Customer relationships (1) 143,155 (51,074) 92,081 177,245 (11,766) (65,863) 99,616 Other (1) 5,827 (3,165) 2,662 6,566 (448) (3,057) 3,061 Total $ 302,285 $ (84,759) $ 217,526 $ 331,385 $ (14,760) $ (103,947) $ 212,678 (1) The gross value and accumulated amortization at September 30, 2022 reflect a reduction of $44.1 million and $(29.3) million, respectively, for the net $14.8 million impairment charge on finite-lived intangible assets within the international segment during the period ended December 31, 2021. A summary of the activities related to the Company’s intangible assets for the nine months ended September 30, 2022 consists of the following (in thousands): Intangible Goodwill Total Intangible Goodwill and Intangible Assets, December 31, 2021 $ 182,407 $ 30,271 $ 212,678 Acquisition of goodwill — 2,966 2,966 Acquisition of trade name 13,000 — 13,000 Foreign currency translation adjustment (369) — (369) Amortization (10,749) — (10,749) Goodwill and Intangible Assets, September 30, 2022 $ 184,289 $ 33,237 $ 217,526 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT On August 26, 2022, the Company entered into Amendment No. 2 (the “Amendment”) to the Company’s credit agreement, dated as of March 2, 2018 (as amended, the “ABL Agreement”) among the Company, as a Borrower, certain subsidiaries of the Company, as Borrowers and/or Loan Parties, JPMorgan Chase Bank, N.A., as Administrative Agent and a Lender, HSBC Bank USA, National Association and Wells Fargo Bank, National Association, as Co-Documentation Agents and Lenders, and Manufacturers and Traders Trust Company, as a Lender, that provides for the Company’s ABL facility. The ABL Agreement provides for a senior secured asset-based revolving credit facility in the maximum aggregate principal amount of $200.0 million, which facility will mature on August 26, 2027 (subject to an earlier springing maturity date that is 90 days prior to the Term Loan maturity date of February 28, 2025 if the Company’s Term Loan has not been repaid or refinanced by such date). The Company's loan agreement, dated as of March 2, 2018, (the “Term Loan Agreement” and together with the ABL Agreement, the “Debt Agreements”) provides for a senior secured term loan credit facility in the original principal amount of $275.0 million, which matures on February 28, 2025. The Term Loan Agreement requires the Company to make an annual prepayment of principal based upon a percentage of the Company's excess cash flow, (“Excess Cash Flow”), if any. The percentage applied to the Company’s excess cash flow is based on the Company’s Total Net Leverage Ratio (as defined in the Debt Agreements). When an Excess Cash Flow payment is required, each lender has the option to decline a portion or all of the prepayment amount payable to it. An estimate of the amount of the Excess Cash Flow payment is recorded in current maturity of term loan on the unaudited condensed consolidated balance sheets. Additionally, the Term Loan Agreement requires quarterly payments, which commenced on June 30, 2018, of principal equal to 0.25% of the original aggregate principal amount of the Term Loan facility, which payments are to be adjusted from time to time to account for prepayments made. Per the Term Loan Agreement, when the Company makes an Excess Cash Flow payment, the payment is first applied to satisfy the next eight (8) scheduled future quarterly required payments of the Term Loan in order of maturity and then to the remaining scheduled installments on a pro rata basis. The quarterly principal payments have been satisfied through maturity of the Term Loan by the annual Excess Cash Flow payments made to date. The maximum borrowing amount under the ABL Agreement may be increased to up to $250.0 million if certain conditions are met and further limited to $220.0 million pursuant to the Term Loan Agreement. One or more tranches of additional term loans (the “Incremental Term Facilities”) may be added under the Term Loan Agreement if certain conditions are met. The Incremental Facilities may not exceed the sum of (i) $50.0 million plus (ii) an unlimited amount so long as, in the case of (ii) only, the Company’s secured net leverage ratio, as defined in and computed on a pro forma basis pursuant to the Term Loan Agreement, after giving effect to such increase, is no greater than 3.75 to 1.00, subject to certain limitations and for the period defined pursuant to the Term Loan Agreement but not to mature earlier than the maturity date of the then existing term loans. As of September 30, 2022 and December 31, 2021, the total availability under the ABL Agreement was as follows (in thousands): September 30, 2022 December 31, 2021 Maximum aggregate principal allowed $ 200,000 $ 150,000 Outstanding borrowings under the ABL Agreement (32,545) — Standby letters of credit (2,765) (3,659) Total availability under the ABL Agreement $ 164,690 $ 146,341 Availability under the ABL Agreement is limited to the lesser of the$200.0 million commitment thereunder and the borrowing base and therefore depends on the valuation of certain current assets comprising the borrowing base. The borrowing capacity under the ABL Agreement will depend, in part, on eligible levels of accounts receivable and inventory that fluctuate regularly. Due to the seasonality of the Company’s business, this means that the Company may have greater borrowing availability during the third and fourth quarters of each year. Consequently, the $200.0 million commitment thereunder may not represent actual borrowing capacity. The current and non-current portions of the Company’s Term Loan facility included in the condensed consolidated balance sheets were as follows (in thousands): September 30, 2022 December 31, 2021 Current portion of Term Loan facility: Estimated Excess Cash Flow principal payment $ — $ 7,200 Estimated unamortized debt issuance costs — (1,429) Total Current portion of Term Loan facility $ — $ 5,771 Non-current portion of Term Loan facility: Term Loan facility, net of current portion $ 245,911 $ 244,927 Estimated unamortized debt issuance costs (3,406) (3,054) Total Non-current portion of Term Loan facility $ 242,505 $ 241,873 The estimated Excess Cash Flow principal payment recorded at September 30, 2022 represents the Company’s estimate for the 2023 Excess Cash Flow payment. The 2022 Excess Cash Flow payment, paid on March 30, 2022, totaled $6.2 million. The Excess Cash Flow payment differs from the estimated amount at December 31, 2021 of $7.2 million as certain lenders opted to decline their payments per the terms of the Term Loan Agreement. The Company’s payment obligations under its Debt Agreements are unconditionally guaranteed by its existing and future U.S. subsidiaries with certain minor exceptions. Certain payment obligations under the ABL Agreement are also direct obligations of its foreign subsidiary borrowers designated as such under the ABL Agreement and, subject to limitations on such guaranty, are guaranteed by the foreign subsidiary borrowers, as well as by the Company. The obligations of the foreign subsidiary borrowers under the ABL Agreement are secured by security interests in substantially all of the assets of, and stock in, such foreign subsidiary borrowers, subject to certain limitations. The obligations of the Company under the Debt Agreements and any hedging arrangements and cash management services and the guarantees by its domestic subsidiaries in respect of those obligations are secured by security interests in substantially all of the assets and stock (but in the case of foreign subsidiaries, limited to 65% of the capital stock in first-tier foreign subsidiaries and not including the stock of subsidiaries of such first-tier foreign subsidiaries) owned by the Company and the U.S. subsidiary guarantors, subject to certain exceptions. Such security interests consist of (1) a first-priority lien, subject to certain permitted liens, with respect to certain assets of the Company and certain of its subsidiaries (the “ABL Collateral”) pledged as collateral in favor of lenders under the ABL Agreement and a second-priority lien in the ABL Collateral in favor of the lenders under the Term Loan Agreement and (2) a first-priority lien, subject to certain permitted liens, with respect to certain assets of the Company and certain of its subsidiaries (the “Term Loan Collateral”) pledged as collateral in favor of lenders under the Term Loan Agreement and a second-priority lien in the Term Loan Collateral in favor of the lenders under the ABL Agreement. Borrowings under the revolving credit facility bear interest, at the Company’s option, at one of the following rates: (i) an alternate base rate, defined, for any day, as the greater of the prime rate, a federal funds and overnight bank funding based rate plus 0.5% or one-month Adjusted Term Secured Overnight Financing Rate (“SOFR”) plus 1.0% as of a specified date in advance of the determination, but in each case not less than 1.0%, plus a margin of 0.25% to 0.50%, or (ii) Adjusted Term SOFR, which is the Term SOFR Rate for the selected 1, 3 or 6 month interest period plus 0.10% (or Euro Interbank Offered Rate “EURIBOR” for borrowings denominated in Euro; or Sterling Overnight Index Average “SONIA” for borrowings denominated in Pounds Sterling), but in each case not less than zero, plus a margin of 1.25% to 1.50%. The respective margins are based upon average quarterly availability, as defined in and computed pursuant to the ABL Agreement. In addition, the Company pays a commitment fee of 0.20% to 0.25% per annum based on the average daily unused portion of the aggregate commitment under the ABL Agreement. The interest rate on outstanding borrowings under the ABL Agreement at September 30, 2022 was between 2.19% and 6.75%. The Term Loan facility bears interest, at the Company’s option, at one of the following rates: (i) alternate base rate, defined, for any day, as the greater of (x) the prime rate, (y) a federal funds and overnight bank funding based rate plus 0.5% or (z) one-month LIBOR, but not less than 1.0%, plus 1.0%, which alternate base rate shall not be less than 2.0%, plus a margin of 2.5% or (ii) LIBOR for the applicable interest period, multiplied by any statutory reserve rate, but not less than 1.0%, plus a margin of 3.5%. The interest rate on outstanding borrowings under the Term Loan at September 30, 2022 was 6.02%. The Debt Agreements provide for customary restrictions and events of default. Restrictions include limitations on additional indebtedness, liens, acquisitions, investments and payment of dividends, among other things. Further, the ABL Agreement provides that during any period (a) commencing on the last day of the most recently ended four consecutive fiscal quarters on or prior to the date availability under the ABL Agreement is less than the greater of $20.0 million and 10% of the aggregate commitment under the ABL Agreement at any time and (b) ending on the day after such availability has exceeded the greater of $20.0 million and 10% of the aggregate commitment under the ABL Agreement for 45 consecutive days, the Company is required to maintain a minimum fixed charge coverage ratio of 1.10 to 1.00 as of the last day of any period of four consecutive fiscal quarters. The Company was in compliance with the covenants of the Debt Agreements at September 30, 2022. Prior to the amendment of the credit agreement, the Company’s ABL provided for an aggregate principal amount of $150.0 million. Upon entering into the Amendment to the ABL agreement the Company repaid its outstanding ABL borrowing in the amount of $32.0 million and re-borrowed such amounts under the ABL Agreement, as amended. Unamortized debt issuance costs that were written off were immaterial. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES Interest Rate Swap Agreements The Company's total outstanding notional value of interest rate swaps was $50.0 million at September 30, 2022. The Company designated a portion of these interest rate swaps as cash flow hedges of the Company’s exposure to the variability of the payment of interest on a portion of its Term Loan borrowings. The hedge periods of these agreements commenced in April 2018 and expire in March 2023. The original notional values are reduced over these periods. The aggregate notional value of designated interest rate swaps was $25.0 million at September 30, 2022. In June 2019, the Company entered into additional interest rate swap agreements, with an aggregate notional value of $25.0 million at September 30, 2022. These non-designated interest rate swaps serve as cash flow hedges of the Company’s exposure to the variability of the payment of interest on a portion of its Term Loan borrowings and expire in February 2025. Foreign Exchange Contracts The Company is party from time to time to certain foreign exchange contracts, primarily to offset the earnings impact related to fluctuations in foreign currency exchange rates associated with inventory purchases denominated in foreign currencies. Fluctuations in the value of certain foreign currencies as compared to the USD may positively or negatively affect the Company’s revenues, gross margins, operating expenses, and retained earnings, all of which are expressed in USD. Where the Company deems it prudent, the Company engages in hedging programs using foreign currency forward contracts aimed at limiting the impact of foreign currency exchange rate fluctuations on earnings. The Company purchases foreign currency forward contracts with terms less than 18 months to protect against currency exchange risks associated with the payment of merchandise purchases to foreign suppliers. The Company does not hedge the translation of foreign currency profits into USD, as the Company regards this as an accounting exposure rather than an economic exposure. The aggregate gross notional value of foreign exchange contracts at September 30, 2022 was $3.5 million. These foreign exchange contracts have been designated as hedges in order to apply hedge accounting. The Company is exposed to market risks as well as changes in foreign currency exchange rates as measured against the USD and each other, and to changes to the credit risk of derivative counterparties. The Company attempts to minimize these risks primarily by using foreign currency forward contracts and by maintaining counterparty credit limits. These hedging activities provide only limited protection against currency exchange and credit risk. Factors that could influence the effectiveness of the Company’s hedging programs include those impacting currency markets and the availability of hedging instruments and liquidity of the credit markets. All foreign currency forward contracts that the Company enters into are components of hedging programs and are entered into for the sole purpose of hedging an existing or anticipated currency exposure. The Company does not enter into such contracts for speculative purposes, and as of September 30, 2022, the Company did not have any foreign currency forward contract derivatives that are not designated as hedges. These foreign exchange contracts have been designated as hedges in to order to apply hedge accounting. The fair values of the Company’s derivative financial instruments included in the condensed consolidated balance sheets are presented as follows (in thousands): Derivatives designated as hedging instruments Balance Sheet Location September 30, 2022 December 31, 2021 Interest rate swaps Prepaid expenses and other current assets $ 179 $ — Accrued expenses — 288 Other long-term liabilities — 292 Foreign exchange contracts Prepaid expenses and other current assets 663 461 Derivatives not designated as hedging instruments Balance Sheet Location September 30, 2022 December 31, 2021 Interest rate swaps Other assets $ 1,310 $ — Other long-term liabilities — 680 The fair values of the interest rate swaps have been obtained from the counterparties to the agreements and were based on Level 2 observable inputs using proprietary models and estimates about relevant future market conditions. The fair values of the foreign exchange contracts were based on Level 2 observable inputs using quoted market prices for similar assets in an active market. The counterparties to the derivative financial instruments are major international financial institutions. The Company is exposed to credit risk for the net exchanges under these agreements, but not for the notional amounts. As of September 30, 2022, the Company did not anticipate non-performance by any of its counterparties. The amounts of gains and losses, realized and unrealized, related to the Company’s derivative financial instruments designated as hedging instruments are recognized in other comprehensive (loss) income, net of taxes, as follows (in thousands): Three Months Ended Nine Months Ended Derivatives designated as hedging instruments 2022 2021 2022 2021 Interest rate swaps $ 87 $ 147 $ 570 $ 540 Foreign exchange contracts 267 845 1,342 515 $ 354 $ 992 $ 1,912 $ 1,055 Realized gains and losses on the interest rate swaps that are reported in other comprehensive (loss) income are reclassified into earnings as the interest expense on the debt is recognized. The Company had no terminated or matured interest rate swaps during the three and nine months ended September 30, 2022. Realized gains and losses on foreign exchange contracts that are reported in other comprehensive (loss) income are reclassified into cost of sales as the underlying inventory purchased is sold. During the three months ended September 30, 2022, the Company reclassified $0.3 million of cash flow hedges in accumulated other comprehensive losses to earnings. This was comprised of $0.03 million related to realized interest rate swap losses and a gain of $0.3 million related to foreign exchange contracts recognized in cost of sales. During the nine months ended September 30, 2022, the Company reclassified $0.3 million of cash flow hedges in accumulated other comprehensive losses to earnings. This was comprised of $0.3 million related to realized interest rate swap losses and a gain of $0.6 million related to foreign exchange contracts recognized in cost of sales. At September 30, 2022, the estimated amount of existing net gains expected to be reclassified into earnings within the next 12 months was $2.0 million. During the three months ended September 30, 2021, the Company reclassified $0.5 million of cash flow hedges in accumulated other comprehensive losses to earnings. This was comprised of $0.2 million related to realized interest rate swap losses and a loss of $0.3 million related to foreign exchange contracts recognized in cost of sales. During the nine months ended September 30, 2021, the Company reclassified $1.3 million of cash flow hedges in accumulated other comprehensive losses to earnings. This was comprised of $0.7 million related to realized interest rate swap losses and a loss of $0.6 million related to foreign exchange contracts recognized in cost of sales. Interest and mark to market gains (losses) related to the Company’s derivative financial instruments not designated as hedging instruments that were recognized in earnings are as follows (in thousands): Three Months Ended Nine Months Ended Derivatives not designated as hedging instruments Location of gain (loss) 2022 2021 2022 2021 Interest rate swaps Mark to market gain on interest rate derivatives $ 637 $ 120 $ 1,990 $ 664 Interest expense 18 (116) (165) (342) $ 655 $ 4 $ 1,825 $ 322 |
STOCK COMPENSATION
STOCK COMPENSATION | 9 Months Ended |
Sep. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK COMPENSATION | STOCK COMPENSATION On June 23, 2022, the stockholders of the Company approved an amendment and restatement of the Company's Amended and Restated 2000 Long Term Incentive Plan (the "Plan"). The amendment and restatement of the Plan revised the terms and conditions of the Plan to, among other things, increase the shares available for grant under the Plan by 1,180,000 shares. As of September 30, 2022, there were 1,127,708 shares available for the grant of awards under the Plan, assuming maximum performance of performance-based awards. Option Awards A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2022 is as follows: Options Weighted- Weighted- Aggregate Options outstanding, January 1, 2022 1,094,575 $ 13.64 Grants 56,000 11.45 Exercises (60,000) 11.64 Cancellations (5,125) 10.60 Expirations (13,450) 13.99 Options outstanding, September 30, 2022 1,072,000 13.65 4.7 $ 13 Options exercisable, September 30, 2022 957,125 $ 13.92 4.2 $ 6 Total unrecognized stock option expense remaining (in thousands) $ 550 Weighted-average years expected to be recognized over 2.0 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 September 30, 2022. 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 September 30, 2022 and the exercise price. Restricted Stock A summary of the Company’s restricted stock activity and related information for the nine months ended September 30, 2022 is as follows: Restricted Weighted- Non-vested restricted shares, January 1, 2022 429,601 $ 11.47 Grants 266,713 12.03 Vested (171,924) 11.89 Cancellations (6,881) 10.92 Non-vested restricted shares, September 30, 2022 517,509 $ 11.63 Total unrecognized compensation expense remaining (in thousands) $ 4,771 Weighted-average years expected to be recognized over 1.7 The total fair value of restricted stock that vested during the nine months ended September 30, 2022 was $2.1 million. Performance shares Each performance award represents the right to receive up to 150% of the target number of shares of common stock. The number of shares of common stock earned will be determined based on the attainment of specified performance goals at the end of the performance period, as determined by the Compensation Committee of the Board of Directors. The shares are subject to the terms and conditions of the Company’s Plan. A summary of the Company’s performance-based award activity and related information for the nine months ended September 30, 2022 is as follows: Performance- based stock awards (1) Weighted- Non-vested performance-based awards, January 1, 2022 436,330 $ 10.54 Grants 123,000 12.19 Achieved performance over target (2) 12,035 9.20 Vested (166,935) 9.20 Cancellations (4,128) 10.64 Non-vested performance-based awards, September 30, 2022 400,302 $ 11.56 Total unrecognized compensation expense remaining (in thousands) $ 2,461 Weighted-average years expected to be recognized over 1.7 (1) Represents the target number of shares to be issued for each performance-based award. (2) Represents the number of shares earned over target for performance-based awards granted in 2019 based on performance goals attained. These awards vested in the three months ended March 31, 2022. The total fair value of performance-based awards that vested during the nine months ended September 30, 2022 was $2.0 million. Cash-settled performance-based awards Each cash-settled performance-based award represents the right to receive up to 150% of the target number of deferred stock units with payment in cash equivalent to the value of one share of the Company's common stock. The number of deferred stock units earned will be determined based on the attainment of specified performance goals at the end of the performance period, as determined by the Compensation Committee of the Board of Directors. The cash-settled performance-based awards are subject to the terms and conditions of the Company’s Plan. A summary of the Company’s cash-settled performance-based awards activity and related information for the nine months ended September 30, 2022 is as follows: Cash-settled performance-based awards (1) Weighted- Non-vested cash-settled performance-based awards, January 1, 2022 — $ — Grants 87,825 6.85 Cancellations (2,049) 10.39 Non-vested cash-settled performance-based awards, September 30, 2022 85,776 $ 6.77 Total unrecognized compensation expense remaining (in thousands) $ 464 Weighted-average years expected to be recognized over 2.3 (1) Represents the target number of units to be settled in cash. Compensation expense for cash-settled performance-based awards is recognized over the vesting period and will vary based on remeasurement during the performance period. If achievement of the performance metrics is not probable of achievement during the performance period, compensation expense is reversed. The awards are forfeited if the performance metrics are not achieved as of the end of the performance period. The cash - settled performance-based awards are liability-classified awards and are recorded within other long-term liabilities in the Company's condensed consolidated balance sheet. These awards are remeasured to fair value at the end of each reporting period until settlement. The cash-settled performance-based awards vest at the end of a three year period, as determined by the Compensation Committee. The Company recorded stock compensation expense as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Stock Compensation Expense Components 2022 2021 2022 2021 Equity based stock option expense $ 51 $ 95 $ 231 $ 321 Restricted and performance-based stock awards expense 972 1,097 3,223 3,633 Stock compensation expense for equity based awards $ 1,023 $ 1,192 $ 3,454 $ 3,954 Liability based stock option expense (11) 9 (17) 19 Cash-settled performance-based awards expense 14 — 128 — Total Stock Compensation Expense $ 1,026 $ 1,201 $ 3,565 $ 3,973 |
INCOME (LOSS) PER COMMON SHARE
INCOME (LOSS) PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
INCOME (LOSS) PER COMMON SHARE | (LOSS) INCOME PER COMMON SHARE Basic (loss) income per common share has been computed by dividing net (loss) income by the weighted-average number of shares of the Company’s common stock outstanding during the relevant period. Diluted (loss) income per common share adjusts net (loss) income and basic (loss) income per common share for the effect of all potentially dilutive shares of the Company’s common stock. Anti-dilutive securities are not included in the computation of diluted earnings per share under the treasury stock method. The calculations of basic and diluted (loss) income per common share for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands, except per share amounts) Net (loss) income – Basic and Diluted $ (6,358) $ 12,571 $ (9,438) $ 21,427 Weighted-average shares outstanding – Basic 21,522 21,549 21,602 21,343 Effect of dilutive securities: Stock options and other stock awards — 536 — 621 Weighted-average shares outstanding – Diluted 21,522 22,085 21,602 21,964 Basic (loss) income per common share $ (0.30) $ 0.58 $ (0.44) $ 1.00 Diluted (loss) income per common share $ (0.30) $ 0.57 $ (0.44) $ 0.98 Antidilutive Securities (1) 1,682 337 1,675 394 (1) Stock options and other stock awards that have been excluded from the denominator as their inclusion would have been anti-dilutive. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax provision of $1.8 million and $3.4 million for the three and nine months ended September 30, 2022, respectively, represent taxes on both U.S. and foreign earnings at a combined effective income tax provision rate of 50.6% and 245.9%, respectively. The effective tax rate for the three and nine months ended September 30, 2022 differs from the federal statutory income tax rate of 21.0% primarily due to foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance. Income tax provision of $5.6 million and $9.8 million for the three and nine months ended September 30, 2021, respectively, represent taxes on both U.S. and foreign earnings at combined effective income tax provision rates of 31.1% and 31.8%, respectively. The effective tax rate for the three and nine months ended September 30, 2021 differs from the federal statutory income tax rate of 21.0% primarily due to state and local tax expense, and foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance. The Company has identified the following jurisdictions as “major” tax jurisdictions: U.S. Federal, California, Georgia, Illinois, Massachusetts, New Jersey, New York and the United Kingdom. The audit of the Company's New York State tax returns for years 2015-2019 closed during the quarter ended March 31, 2022 with an immaterial adjustment. The Company evaluates its tax positions on a quarterly basis and revises its estimates accordingly. There were no material changes to the Company’s uncertain tax positions, interest, or penalties during the three-month periods ended September 30, 2022 and September 30, 2021. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS The Company has two reportable segments, U.S. and International. The Company has segmented its operations to reflect the manner in which management reviews and evaluates the results of its operations. The U.S. segment includes the Company’s primary domestic business that designs, markets and distributes its products to retailers, distributors and directly to consumers through its own websites. The International segment consists of certain business operations conducted outside the U.S. Management evaluates the performance of the U.S. and International segments based on net sales and income from operations. 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 fees and consulting fees, are not allocated to the specific segments and are reflected as unallocated corporate expenses. Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) Net sales U.S. $ 172,818 $ 197,724 $ 476,227 $ 540,488 International 13,772 27,053 44,394 66,578 Total net sales $ 186,590 $ 224,777 $ 520,621 $ 607,066 Income from operations U.S. $ 19,548 $ 30,958 $ 41,404 $ 66,339 International (2,501) (2,402) (9,691) (6,168) Unallocated corporate expenses (9,457) (6,876) (20,232) (18,244) Income from operations $ 7,590 $ 21,680 $ 11,481 $ 41,927 Depreciation and amortization U.S. $ 4,321 $ 4,624 $ 13,568 $ 13,913 International 277 1,213 967 3,647 Total depreciation and amortization $ 4,598 $ 5,837 $ 14,535 $ 17,560 September 30, December 31, (in thousands) Assets U.S. $ 661,145 $ 706,000 International 87,270 95,092 Unallocated corporate 8,513 27,982 Total Assets $ 756,928 $ 829,074 |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Wallace EPA Matter Wallace Silversmiths de Puerto Rico, Ltd. (“WSPR”), 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 U.S. 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, WSPR 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, and Liability Act (“CERCLA”). In July 2011, WSPR received a letter from the EPA requesting access to the property that it leases from PRIDCO to conduct an environmental investigation, and the Company granted such access. In February 2013, the EPA requested access to conduct a further environmental investigation at the property. PRIDCO agreed to such access and the Company consented. The EPA conducted a further investigation during 2013 and, in April 2015, notified the Company and PRIDCO that the results from vapor intrusion sampling may warrant the implementation of measures to mitigate potential exposure to sub-slab soil gas. The Company reviewed the information provided by the EPA and requested that PRIDCO, as the property owner, find and implement a solution acceptable to the EPA. While WSPR did not cause the sub-surface condition that resulted in the potential for vapor intrusion, in order to protect the health of its employees and continue its business operations, it has nevertheless implemented corrective action measures to prevent vapor intrusion, such as sealing the floors of the building and conducting periodic air monitoring to address potential exposure. On August 13, 2015, the EPA released its remedial investigation and feasibility study (“RI/FS”) for the Site. On December 11, 2015, the EPA issued the Record of Decision (“ROD”) for an initial operable unit, electing to implement its preferred remedy which consists of soil vapor extraction and dual-phase extraction/in-situ treatment. This selected remedy includes soil vapor extraction (“SVE”) to address soil (vadose zone) source areas at the Site, impermeable cover as necessary for the implementation of SVE, dual phase extraction in the shallow saprolite zone, and in-situ treatment as needed to address residual sources. The EPA’s total net present worth estimated cost for its selected remedy is $7.3 million. The EPA also designated a second operable unit under which the EPA has and will continue to conduct further investigations to determine the nature and extent of groundwater contamination, as well as a determination by the EPA on the necessity of any further response actions to address groundwater contamination. In February 2017, the EPA indicated that it planned to expand its field investigation for the RI/FS to a second operable unit to further determine the nature and extent of the groundwater contamination at and from the Site and to determine the nature of the remedial action needed to address the contamination. The EPA has requested access to the property occupied by WSPR to install monitoring wells and to undertake groundwater sampling as part of this expanded investigation. WSPR has consented to the EPA’s access request, provided that the EPA receives PRIDCO’s consent, as the property owner. WSPR never used the primary contaminant of concern and did not take up its tenancy at the Site until after the EPA had discovered the contamination in the local water supply. The EPA has also issued notices of potential liability to a number of other entities affiliated with the Site, which used the contaminants of concern. In December 2018, the Company, WSPR, and other identified potentially responsible parties affiliated with the Site entered into tolling agreements to extend the statute of limitations for potential claims for the recovery of response costs for the initial operable unit under Section 107 of CERCLA. In February 2020, the tolling agreements were extended to November 2020. In November 2020, the tolling agreements were extended to November 2021. In October 2021, the tolling agreements were extended to November 2022. In October 2022, the tolling agreements were extended to November 2023. The tolling agreements do not constitute in any way an admission or acknowledgment of any fact, conclusion of law or liability by the parties to the agreements. The EPA released its proposed plan for a second operable unit in July 2019. The public comment period for the proposed plan ended on September 10, 2019. On September 30, 2019, the EPA issued the ROD for operable unit 2 (“OU-2”), electing to implement its preferred remedy which consists of in-situ treatment of groundwater and a monitored natural attenuation program including monitoring of the plume fringe at the Site. The EPA’s estimated total net present worth cost for its selected remedy is $17.3 million. In August 2021, WSPR received a Notice of Liability from the Department of Justice on behalf of the EPA, and in September 2021, WSPR submitted a good faith offer to conduct additional testing and remedial design, which remains under consideration by the EPA. The Company has reserved $5.6 million to cover probable and estimable liabilities with respect to the above remedial design and remedial action for the initial operable unit. However, it is not possible at this time for the Company to estimate its share of its ultimate liability related to this matter. In the event of one or more adverse determinations related to this matter, it is possible that the ultimate liability resulting from this matter and the impact on the Company’s results of operations could be material. U.S. Customs and Border Protection matter By letter dated August 26, 2019, the Company was advised that U.S. Customs and Border Protection ("CBP") had commenced an investigation, pursuant to 19 U.S.C. §1592, regarding the Company’s tariff classification of certain tableware and kitchenware. The issue centers on whether such merchandise meets the criteria for reduced duty rates as specified sets as those terms are defined in Chapter 69, Note 6(b), Harmonized Tariff System of the United States. The period of investigation is stated to be from August 26, 2014 to the present. Since being notified of the investigation, the Company has obtained a significant amount of evidence that, the Company believes, supports that the imported products were properly classified as specified sets. The Company's counsel filed a Lead Protest and Application for Further Review with CBP on February 5, 2020 (the "Lead Protest") relating to a single shipment made during the investigation period. CBP approved the Company’s Lead Protest on June 8, 2020 stating that the specified set requirement was fulfilled with respect to the protested shipment based on information provided by the Company. Based on this decision, no additional duties will be owed for the seven tableware collections imported in this shipment. The Company also compiled and submitted to CBP a complete set of supporting documents for three additional protests (for the remaining 29 tableware collections that were imported by the Company under the protested shipments). One of the additional protests was approved on October 15, 2020; the other two remain pending. If the CBP approves these additional claims and accepts the evidence presented, then no additional duties will be owed for the remaining protested shipments. Because the period of investigation covers a five-year period, the Company is compiling supporting documentation packages for all tableware collections imported during this period. In the event CBP accepts the evidence presented, then no additional duties or penalties will be owed. If CBP rejects the Company’s position, then the estimated amount of duties that could be owed is $1.3 million. In such event, it is reasonably possible that additional penalties could be assessed, depending upon the level of culpability found, of up to $2.6 million for negligence and up to $5.2 million for gross negligence. In the event penalties are assessed, the Company will have the opportunity to further contest CBP’s findings and seek cancellation or mitigation of such assessments. Accordingly, based on the above uncertainties and variables, the Company considers the potential losses related to this matter to be reasonably possible, but not probable. However, in the event of one or more adverse determinations related to this matter, it is possible that the ultimate liability resulting from this matter and the impact on the Company’s results of operations could be material. Other 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. |
OTHER
OTHER | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER | OTHER Cash dividends Dividends declared in the nine months ended September 30, 2022 were as follows: Dividend per share Date declared Date of record Payment date $0.0425 3/8/2022 5/2/2022 5/16/2022 $0.0425 6/23/2022 8/1/2022 8/15/2022 $0.0425 8/2/2022 11/1/2022 11/15/2022 During the nine months ended September 30, 2022, the Company paid dividends of $2.9 million. This included payments made on February 14, 2022, May 16, 2022 and August 15, 2022 of $0.9 million, $0.9 million and $0.9 million to stockholders of record on January 31, 2022, May 2, 2022 and August 1, 2022, respectively, and payments of $0.1 million for dividends payable upon the vesting of restricted shares and performance shares. In the three months ended September 30, 2022, the Company reduced retained earnings for the accrual of $1.0 million relating to the dividend payable on November 15, 2022. For the nine months ended September 30, 2022, the Company reduced retained earnings for the accrual of $2.9 million relating to the dividend payable on May 16, 2022, August 15, 2022 and November 15, 2022. On November 1, 2022, the Board of Directors declared a quarterly dividend of 0.0425 per share of common stock payable on February 15, 2023 to stockholders of record on February 1, 2023. Stock repurchase program On March 14, 2022, the Company announced that its Board of Directors of the Company authorized the repurchase of up to $20.0 million of the Company’s common stock, replacing the Company’s previously-authorized $10 million share repurchase program. The repurchase authorization permits the Company to effect the repurchases from time to time through open market purchases and privately negotiated transactions. During the nine months ended September 30, 2022, the Company repurchased 389,743 shares for a total cost of $4.7 million and thereafter retired the shares. Please see Part II, Item 2—Unregistered Sales of Equity Securities and Use of Proceeds included in this Quarterly Report on Form 10-Q. Supplemental cash flow information Nine Months Ended 2022 2021 (in thousands) Supplemental disclosure of cash flow information: Cash paid for interest $ 10,804 $ 10,279 Cash paid for taxes, net of refunds 6,527 12,616 Non-cash investing activities: Net (loss) on dilution and partial sale of Vasconia ownership $ — $ (1,673) Components of accumulated other comprehensive loss, net Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) Accumulated translation adjustment: Balance at beginning of period $ (36,175) $ (31,623) $ (31,752) $ (35,846) Translation adjustment during period (2,686) (1,122) (7,109) 1,059 Amounts reclassified from accumulated other comprehensive loss (1) — 1,362 — 3,404 Translation Adjustment (2,686) 240 (7,109) 4,463 Balance at end of period $ (38,861) $ (31,383) $ (38,861) $ (31,383) Accumulated deferred gains (losses) on cash flow hedges: Balance at beginning of period $ 1,636 $ (1,062) $ 78 $ (1,125) Change in unrealized gains (losses) 624 528 2,201 (255) Amounts reclassified from accumulated other comprehensive loss: Settlement of cash flow hedge (2) (270) 464 (289) 1,310 Net change in cash flow hedges, net of taxes of $92, $(247), $505, $(301) 354 992 1,912 1,055 Balance at end of period $ 1,990 $ (70) $ 1,990 $ (70) Accumulated effect of retirement benefit obligations: Balance at beginning of period $ (1,817) $ (2,133) $ (1,875) $ (2,201) Amounts reclassified from accumulated other comprehensive loss: (3) Amortization of actuarial loss, net of taxes 29 33 87 101 Balance at end of period $ (1,788) $ (2,100) $ (1,788) $ (2,100) Total accumulated other comprehensive loss at end of period $ (38,659) $ (33,553) $ (38,659) $ (33,553) (1) Amounts are recorded in equity in (losses) earnings on the unaudited condensed statements of operations. (2) Amounts reclassified are recorded in interest expense and cost of sales on the unaudited condensed consolidated statement of operations. (3) Amounts are recorded in selling, general and administrative expense on the unaudited condensed consolidated statements of operations. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, which consist of normal recurring accruals and non-recurring adjustments, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The Company’s business and working capital needs are seasonal, with a majority of sales occurring in the third and fourth quarters. In 2021 and 2020, net sales for the third and fourth quarters accounted for 56% and 62% of total annual net sales, respectively. The increase in the Company's net sales in the first half of the year in 2021 compared to historical trend was a result of increased demand for the Company's products due to shifts in consumer purchasing patterns. In anticipation of the pre-holiday shipping season, inventory levels increase primarily in the June through October time period. In 2022, the Company's inventory trends may deviate from historical trends due to a change in inventory strategy to react to the current market conditions impacting the Company and retailers. The Company’s current estimates contemplate current and expected future conditions, as applicable, however it is reasonably possible that actual conditions could differ from expectations, which could materially affect the Company’s results of operations and financial position. |
Revenue recognition and Cost of sales | Revenue recognition The Company sells products wholesale, to retailers and distributors, and retail, directly to the consumer. Wholesale sales and retail sales are primarily recognized at the point in time the customer obtains control of the products, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. The Company offers various sales incentives and promotional programs to its customers 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 for products expected to be returned are reflected as reductions of revenue at the time of sale. See NOTE 2 —REVENUE to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information. 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. Handling costs of products sold are included in cost of sales. |
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, taking into consideration customer credit history and financial condition, industry and market segment information, credit reports, and economic trends and conditions such as the impacts of the COVID-19 pandemic. 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. |
Receivable purchase agreement | Receivable purchase agreement The Company has an uncommitted Receivables Purchase Agreement with HSBC Bank USA, National Association (“HSBC”) as Purchaser (the “Receivables Purchase Agreement”). The sale of accounts receivable, under the Receivables Purchase Agreement with HSBC, is excluded from the Company’s unaudited condensed consolidated balance sheets at the time of sale and the related sale expense is included in selling, general and administrative expenses in the Company’s unaudited condensed consolidated statements of operations. Pursuant to the Receivable Purchase Agreement, the Company sold to HSBC $30.0 million and $109.8 million of receivables during the three and nine months ended September 30, 2022, respectively and $33.7 million and $113.2 million of receivables during three and nine months ended September 30, 2021, respectively. Charges of $0.2 million and $0.1 million related to the sale of the receivables are included in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations for the three months ended September 30, 2022 and 2021, respectively. Charges of $0.5 million and $0.3 million related to the sale of the receivables are included in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2022 and 2021, respectively. At September 30, 2022 and 2021, $20.2 million and $15.8 million, respectively, of receivables sold were outstanding and due to HSBC from customers. |
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 net realizable value. 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. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation. |
Fair value of financial instruments | Fair value of financial instruments The Company determined that 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 ABL Agreement and Term Loan (each as defined in NOTE 7 — DEBT to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q) approximate fair value since such borrowings bear interest at variable market rates. |
Derivatives | Derivatives The Company accounts for derivative instruments in accordance with Accounting Standard Codification (“ASC”) Topic 815, Derivatives and Hedging ( “ASC 815” ) . ASC 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 until the hedged item is recognized in earnings. The changes in the fair value of hedges are included in accumulated other comprehensive loss and are subsequently recognized in the Company’s unaudited condensed consolidated statements of operations to mirror the location of the hedged items impacting earnings. Changes in fair value of derivatives that do not qualify as hedging instruments for accounting purposes are recorded in the Company’s unaudited condensed consolidated statements of operations. |
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 quantitative goodwill impairment testing described in the Financial Accounting Standards Board's (“FASB”) Accounting Standards Update No. (“ASU”) Topic 350, Intangibles – Goodwill and Other. If, after assessing qualitative factors, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the quantitative test is unnecessary and the Company’s goodwill is considered to be unimpaired. However, if based on the Company’s qualitative assessment it concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative assessment, the Company will proceed with performing the quantitative impairment test. The Company reviews goodwill and other intangibles that have indefinite lives for impairment annually as of October 1 or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing is based upon the best information available, including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. The significant assumptions used under the income approach, or discounted cash flow method, are projected net sales, projected earnings before interest, tax, depreciation and amortization (“EBITDA”), terminal growth rates, and the cost of capital. Projected net sales, projected EBITDA and terminal growth rates were determined to be significant assumptions because they are three primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected cash flows. For the guideline public company method, significant assumptions relate to the selection of appropriate guideline companies and related valuation multiples used in the market analysis. Although the Company believes the assumptions and estimates made are reasonable and appropriate, different assumptions and estimates could materially impact its reported financial results. In addition, sustained declines in the Company’s stock price and related market capitalization could impact key assumptions in the overall estimated fair values of its reporting units and could result in non-cash impairment charges that could be material to the Company’s consolidated balance sheet or results of operations. Should the carrying value of a reporting unit be in excess of the estimated fair value of that reporting unit, an impairment charge will be recorded to reduce the reporting unit to fair value. |
Leases | Leases The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use (“ROU”) assets are included in operating lease right-of-use assets on the condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liability and operating lease liabilities, respectively, on the condensed consolidated balance sheets. Finance leases are included in property and equipment, net, accrued expenses and other long-term liabilities. The Company’s finance leases are not material to the Company’s condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset may also include any lease payments made, adjusted for any prepaid or accrued rent payments, lease incentives, and initial direct costs incurred. Certain leases may include options to extend or terminate the lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For certain equipment leases, the Company applies a portfolio approach to effectively account for any ROU assets and lease liabilities. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. |
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. |
Costs Associated with Exit or Disposal Activity or Restructuring [Policy Text Block] | Restructuring expenses Costs associated with restructuring activities are recorded at fair value when a liability has been incurred. Generally, a liability has been incurred at the communication date for severance. Charges associated with lease terminations, related to restructuring activities, are recognized at the effective date of the lease modification. On October 18, 2022, the Company's management approved a reorganization plan related to a reduction in its U.K. workforce. The reorganization is the result of the Company’s efforts to realign the management and operating structure of the U.K. business in response to changing market conditions. The restructuring expense expected to be incurred with this plan is $0.6 million and will be recorded in the fourth quarter of 2022. The Company expects the restructuring to be completed in Q4 2022, and expects annual savings of $2.3 million associated with the plan. On November 1, 2022, the Company entered into a transition agreement with its Executive Chairman, Jeffrey Siegel, which terminates his employment with the Company on March 31, 2023. The transition agreement amends Mr. Siegel’s employment agreement which was set to expire on December 31, 2022. The employment agreement provides for a one-time termination |
Adoption of new accounting pronouncement | Adoption of new accounting pronouncements Effective January 1, 2022, the Company adopted ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers. The adoption did not have a material impact on the Company’s condensed consolidated financial statements. |
New accounting pronouncements | New accounting pronouncements Updates not listed below were assessed and either determined to not be applicable or are expected to have a minimal effect on the Company’s financial position, results of operations, and disclosures. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. ASU 2016-13 also provides updated guidance regarding the impairment of available-for-sale debt securities and includes additional disclosure requirements. The new guidance is effective for public business entities that meet the definition of a Smaller Reporting Company, as defined by the Securities and Exchange Commission for interim and annual periods beginning after December 15, 2022. The Company met the definition of a Smaller Reporting Company as of the one-time determination date of November 15, 2019. Early adoption is permitted. Management expects the adoption of ASU 2016-13 will not have a material impact on the Company's consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions to account for contract modifications, hedging relationships and other transactions that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate that is expected to be discontinued as a result of reference rate reform. The guidance in ASU 2020-04 may be applied to contract modifications and hedging relationships as of any date from March 12, 2020, but no later than December 31, 2022, and should be applied on a prospective basis. The Company has not yet applied the guidance in ASU 2020-04 and is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Components of Inventory | The components of inventory were as follows (in thousands): September 30, December 31, 2021 Finished goods $ 258,781 $ 259,916 Work in process 277 159 Raw materials 10,665 10,441 Total $ 269,723 $ 270,516 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present the Company’s net sales disaggregated by segment, product category and geographic region for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 U.S. segment Kitchenware $ 92,587 $ 113,429 $ 291,062 $ 337,051 Tableware 44,515 51,667 101,035 119,188 Home Solutions 35,716 32,628 84,130 84,249 Total U.S. segment 172,818 197,724 476,227 540,488 International segment 13,772 27,053 44,394 66,578 Total net sales $ 186,590 $ 224,777 $ 520,621 $ 607,066 United States $ 163,304 $ 189,456 $ 454,356 $ 522,170 United Kingdom 8,676 15,741 27,515 38,376 Rest of World 14,610 19,580 38,750 46,520 Total net sales $ 186,590 $ 224,777 $ 520,621 $ 607,066 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended | |
Mar. 02, 2022 | Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | ||
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | Purchase Price Allocation Accounts receivable $ 2,280 Inventory 4,005 Fixed assets 40 Intangible assets 13,000 Goodwill 2,966 Accounts payable and accrued expenses (3,685) Total allocated value $ 18,606 | The preliminary purchase price was comprised of the following (in thousands): Cash paid $ 17,956 Value of contingent consideration 650 Total purchase price $ 18,606 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense for the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Operating lease expenses (1) : Fixed lease expense $ 4,463 $ 4,471 $ 13,392 $ 13,467 Variable lease expense 1,187 917 3,532 2,844 Total $ 5,650 $ 5,388 $ 16,924 $ 16,311 (1) Expenses are recorded within distribution expenses and selling, general and administrative expenses on the unaudited condensed consolidated statement of operations. |
Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information for lease related liabilities and assets for the nine months ended September 30, 2022 and 2021 were as follows (in thousands): Nine Months Ended 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 14,447 $ 14,556 Nine Months Ended 2022 2021 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,477 $ 1,307 |
Lessee, Operating Lease, Liability, Maturity | The aggregate future lease payments for operating leases as of September 30, 2022 were as follows (in thousands): Operating 2022 (excluding the nine months ended September 30, 2022) $ 4,842 2023 18,879 2024 18,349 2025 17,766 2026 17,063 2027 12,980 Thereafter 22,595 Total lease payments 112,474 Less: Interest (20,081) Present value of lease payments $ 92,393 |
Schedule Of Average Lease Terms And Discount Rates | Average lease terms and discount rates were as follows: September 30, 2022 Operating leases: Weighted-average remaining lease term (years) 6.5 Weighted-average discount rate 6.1 % |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Exchange Rate Translation from MXN to USD | The Company’s proportionate share of Vasconia’s net (loss) income has been translated from MXN to USD using the following exchange rates: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Average exchange rate (USD to MXN) 20.22 20.01 20.02 - 20.50 20.01 - 20.33 |
Summarized Income Statement Information for Vasconia in USD and MXN | Summarized income statement information for the three and nine months ended September 30, 2022 and 2021 for Vasconia in USD and MXN is as follows (in thousands): Three Months Ended 2022 2021 USD MXN USD MXN Net sales $ 56,488 $ 1,142,171 $ 61,783 $ 1,236,289 Gross profit 4,405 89,061 12,958 259,285 (Loss) income from operations (5,459) (110,380) 3,886 77,756 Net (loss) income (8,009) (161,936) 2,952 59,063 Nine Months Ended 2022 2021 USD MXN USD MXN Net Sales $ 187,001 $ 3,785,921 $ 174,468 $ 3,508,858 Gross profit 29,629 600,976 40,837 821,125 (Loss) income from operations (256) (3,974) 14,169 284,799 Net (loss) income (4,875) (98,366) 4,562 91,063 |
Schedule of Amounts Due to and Due from Related Parties Current | Included within the Company's unaudited condensed consolidated balance sheets were the following amounts due to and due from Vasconia (in thousands): Vasconia due to and due from balances Balance Sheet Location September 30, 2022 December 31, 2021 Amounts due from Vasconia Prepaid expenses and other current assets $ 80 $ 80 Amounts due to Vasconia Accrued expenses and Accounts payable (1) (146) |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Intangible assets consisted of the following as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Gross Accumulated Net Gross Impairment Accumulated Net Goodwill $ 33,237 $ — $ 33,237 $ 30,271 $ — $ — $ 30,271 Indefinite-lived intangible assets: Trade names 49,600 — 49,600 49,600 — — 49,600 Finite-lived intangible assets: Licenses 15,847 (11,540) 4,307 15,847 — (11,198) 4,649 Trade names (1) 54,619 (18,980) 35,639 51,856 (2,546) (23,829) 25,481 Customer relationships (1) 143,155 (51,074) 92,081 177,245 (11,766) (65,863) 99,616 Other (1) 5,827 (3,165) 2,662 6,566 (448) (3,057) 3,061 Total $ 302,285 $ (84,759) $ 217,526 $ 331,385 $ (14,760) $ (103,947) $ 212,678 (1) The gross value and accumulated amortization at September 30, 2022 reflect a reduction of $44.1 million and $(29.3) million, respectively, for the net $14.8 million impairment charge on finite-lived intangible assets within the international segment during the period ended December 31, 2021. |
Schedule Of Intangible Assets [Table Text Block] | Intangible Goodwill Total Intangible Goodwill and Intangible Assets, December 31, 2021 $ 182,407 $ 30,271 $ 212,678 Acquisition of goodwill — 2,966 2,966 Acquisition of trade name 13,000 — 13,000 Foreign currency translation adjustment (369) — (369) Amortization (10,749) — (10,749) Goodwill and Intangible Assets, September 30, 2022 $ 184,289 $ 33,237 $ 217,526 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | As of September 30, 2022 and December 31, 2021, the total availability under the ABL Agreement was as follows (in thousands): September 30, 2022 December 31, 2021 Maximum aggregate principal allowed $ 200,000 $ 150,000 Outstanding borrowings under the ABL Agreement (32,545) — Standby letters of credit (2,765) (3,659) Total availability under the ABL Agreement $ 164,690 $ 146,341 |
Schedule of Long-term Debt Instruments | The current and non-current portions of the Company’s Term Loan facility included in the condensed consolidated balance sheets were as follows (in thousands): September 30, 2022 December 31, 2021 Current portion of Term Loan facility: Estimated Excess Cash Flow principal payment $ — $ 7,200 Estimated unamortized debt issuance costs — (1,429) Total Current portion of Term Loan facility $ — $ 5,771 Non-current portion of Term Loan facility: Term Loan facility, net of current portion $ 245,911 $ 244,927 Estimated unamortized debt issuance costs (3,406) (3,054) Total Non-current portion of Term Loan facility $ 242,505 $ 241,873 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Financial Instruments Included in Unaudited Condensed Consolidated Balance Sheets | The fair values of the Company’s derivative financial instruments included in the condensed consolidated balance sheets are presented as follows (in thousands): Derivatives designated as hedging instruments Balance Sheet Location September 30, 2022 December 31, 2021 Interest rate swaps Prepaid expenses and other current assets $ 179 $ — Accrued expenses — 288 Other long-term liabilities — 292 Foreign exchange contracts Prepaid expenses and other current assets 663 461 Derivatives not designated as hedging instruments Balance Sheet Location September 30, 2022 December 31, 2021 Interest rate swaps Other assets $ 1,310 $ — Other long-term liabilities — 680 |
Gains and Losses Related to Derivative Financial Instruments Designated as Hedging Instruments | The amounts of gains and losses, realized and unrealized, related to the Company’s derivative financial instruments designated as hedging instruments are recognized in other comprehensive (loss) income, net of taxes, as follows (in thousands): Three Months Ended Nine Months Ended Derivatives designated as hedging instruments 2022 2021 2022 2021 Interest rate swaps $ 87 $ 147 $ 570 $ 540 Foreign exchange contracts 267 845 1,342 515 $ 354 $ 992 $ 1,912 $ 1,055 |
Derivatives Not Designated as Hedging Instruments | Interest and mark to market gains (losses) related to the Company’s derivative financial instruments not designated as hedging instruments that were recognized in earnings are as follows (in thousands): Three Months Ended Nine Months Ended Derivatives not designated as hedging instruments Location of gain (loss) 2022 2021 2022 2021 Interest rate swaps Mark to market gain on interest rate derivatives $ 637 $ 120 $ 1,990 $ 664 Interest expense 18 (116) (165) (342) $ 655 $ 4 $ 1,825 $ 322 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity and Related Information | A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2022 is as follows: Options Weighted- Weighted- Aggregate Options outstanding, January 1, 2022 1,094,575 $ 13.64 Grants 56,000 11.45 Exercises (60,000) 11.64 Cancellations (5,125) 10.60 Expirations (13,450) 13.99 Options outstanding, September 30, 2022 1,072,000 13.65 4.7 $ 13 Options exercisable, September 30, 2022 957,125 $ 13.92 4.2 $ 6 Total unrecognized stock option expense remaining (in thousands) $ 550 Weighted-average years expected to be recognized over 2.0 |
Summary of Restricted Stock Activity | A summary of the Company’s restricted stock activity and related information for the nine months ended September 30, 2022 is as follows: Restricted Weighted- Non-vested restricted shares, January 1, 2022 429,601 $ 11.47 Grants 266,713 12.03 Vested (171,924) 11.89 Cancellations (6,881) 10.92 Non-vested restricted shares, September 30, 2022 517,509 $ 11.63 Total unrecognized compensation expense remaining (in thousands) $ 4,771 Weighted-average years expected to be recognized over 1.7 |
Summary of Performance-based Award Activity | A summary of the Company’s performance-based award activity and related information for the nine months ended September 30, 2022 is as follows: Performance- based stock awards (1) Weighted- Non-vested performance-based awards, January 1, 2022 436,330 $ 10.54 Grants 123,000 12.19 Achieved performance over target (2) 12,035 9.20 Vested (166,935) 9.20 Cancellations (4,128) 10.64 Non-vested performance-based awards, September 30, 2022 400,302 $ 11.56 Total unrecognized compensation expense remaining (in thousands) $ 2,461 Weighted-average years expected to be recognized over 1.7 (1) Represents the target number of shares to be issued for each performance-based award. |
Share-based Payment Arrangement, Cash Settled Performance Shares, Activity [Table Text Block] | A summary of the Company’s cash-settled performance-based awards activity and related information for the nine months ended September 30, 2022 is as follows: Cash-settled performance-based awards (1) Weighted- Non-vested cash-settled performance-based awards, January 1, 2022 — $ — Grants 87,825 6.85 Cancellations (2,049) 10.39 Non-vested cash-settled performance-based awards, September 30, 2022 85,776 $ 6.77 Total unrecognized compensation expense remaining (in thousands) $ 464 Weighted-average years expected to be recognized over 2.3 |
Summary of Stock Compensation Expense | The Company recorded stock compensation expense as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Stock Compensation Expense Components 2022 2021 2022 2021 Equity based stock option expense $ 51 $ 95 $ 231 $ 321 Restricted and performance-based stock awards expense 972 1,097 3,223 3,633 Stock compensation expense for equity based awards $ 1,023 $ 1,192 $ 3,454 $ 3,954 Liability based stock option expense (11) 9 (17) 19 Cash-settled performance-based awards expense 14 — 128 — Total Stock Compensation Expense $ 1,026 $ 1,201 $ 3,565 $ 3,973 |
INCOME (LOSS) PER COMMON SHARE
INCOME (LOSS) PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Calculations of Basic and Diluted Income (Loss) per Common Share | The calculations of basic and diluted (loss) income per common share for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands, except per share amounts) Net (loss) income – Basic and Diluted $ (6,358) $ 12,571 $ (9,438) $ 21,427 Weighted-average shares outstanding – Basic 21,522 21,549 21,602 21,343 Effect of dilutive securities: Stock options and other stock awards — 536 — 621 Weighted-average shares outstanding – Diluted 21,522 22,085 21,602 21,964 Basic (loss) income per common share $ (0.30) $ 0.58 $ (0.44) $ 1.00 Diluted (loss) income per common share $ (0.30) $ 0.57 $ (0.44) $ 0.98 Antidilutive Securities (1) 1,682 337 1,675 394 (1) Stock options and other stock awards that have been excluded from the denominator as their inclusion would have been anti-dilutive. |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) Net sales U.S. $ 172,818 $ 197,724 $ 476,227 $ 540,488 International 13,772 27,053 44,394 66,578 Total net sales $ 186,590 $ 224,777 $ 520,621 $ 607,066 Income from operations U.S. $ 19,548 $ 30,958 $ 41,404 $ 66,339 International (2,501) (2,402) (9,691) (6,168) Unallocated corporate expenses (9,457) (6,876) (20,232) (18,244) Income from operations $ 7,590 $ 21,680 $ 11,481 $ 41,927 Depreciation and amortization U.S. $ 4,321 $ 4,624 $ 13,568 $ 13,913 International 277 1,213 967 3,647 Total depreciation and amortization $ 4,598 $ 5,837 $ 14,535 $ 17,560 September 30, December 31, (in thousands) Assets U.S. $ 661,145 $ 706,000 International 87,270 95,092 Unallocated corporate 8,513 27,982 Total Assets $ 756,928 $ 829,074 |
OTHER (Tables)
OTHER (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash Dividends Declared | Dividends declared in the nine months ended September 30, 2022 were as follows: Dividend per share Date declared Date of record Payment date $0.0425 3/8/2022 5/2/2022 5/16/2022 $0.0425 6/23/2022 8/1/2022 8/15/2022 $0.0425 8/2/2022 11/1/2022 11/15/2022 |
Supplemental Cash Flow Information | Supplemental cash flow information Nine Months Ended 2022 2021 (in thousands) Supplemental disclosure of cash flow information: Cash paid for interest $ 10,804 $ 10,279 Cash paid for taxes, net of refunds 6,527 12,616 Non-cash investing activities: Net (loss) on dilution and partial sale of Vasconia ownership $ — $ (1,673) |
Components of Accumulated Other Comprehensive Loss, Net | Components of accumulated other comprehensive loss, net Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) Accumulated translation adjustment: Balance at beginning of period $ (36,175) $ (31,623) $ (31,752) $ (35,846) Translation adjustment during period (2,686) (1,122) (7,109) 1,059 Amounts reclassified from accumulated other comprehensive loss (1) — 1,362 — 3,404 Translation Adjustment (2,686) 240 (7,109) 4,463 Balance at end of period $ (38,861) $ (31,383) $ (38,861) $ (31,383) Accumulated deferred gains (losses) on cash flow hedges: Balance at beginning of period $ 1,636 $ (1,062) $ 78 $ (1,125) Change in unrealized gains (losses) 624 528 2,201 (255) Amounts reclassified from accumulated other comprehensive loss: Settlement of cash flow hedge (2) (270) 464 (289) 1,310 Net change in cash flow hedges, net of taxes of $92, $(247), $505, $(301) 354 992 1,912 1,055 Balance at end of period $ 1,990 $ (70) $ 1,990 $ (70) Accumulated effect of retirement benefit obligations: Balance at beginning of period $ (1,817) $ (2,133) $ (1,875) $ (2,201) Amounts reclassified from accumulated other comprehensive loss: (3) Amortization of actuarial loss, net of taxes 29 33 87 101 Balance at end of period $ (1,788) $ (2,100) $ (1,788) $ (2,100) Total accumulated other comprehensive loss at end of period $ (38,659) $ (33,553) $ (38,659) $ (33,553) (1) Amounts are recorded in equity in (losses) earnings on the unaudited condensed statements of operations. (2) Amounts reclassified are recorded in interest expense and cost of sales on the unaudited condensed consolidated statement of operations. (3) Amounts are recorded in selling, general and administrative expense on the unaudited condensed consolidated statements of operations. |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Nov. 01, 2022 | Oct. 18, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Percentage of total annual net sales in the third and fourth quarters | 56% | 62% | ||||||
Forecast | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Employment Termination Costs | $ 1.4 | |||||||
Forecast | United Kingdom | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Restructuring expenses | $ 0.6 | |||||||
Excepted Annual Saving | $ 2.3 | |||||||
Receivables Purchase Agreement | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Sale of receivables | $ 30 | $ 33.7 | $ 109.8 | $ 113.2 | ||||
Receivables sold outstanding | 20.2 | 15.8 | 20.2 | 15.8 | ||||
Receivables Purchase Agreement | Selling, general and administrative expense | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Charge related to sale of receivables | $ 0.2 | $ 0.1 | $ 0.5 | $ 0.3 |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Components of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Finished goods | $ 258,781 | $ 259,916 |
Work in process | 277 | 159 |
Raw materials | 10,665 | 10,441 |
Total | $ 269,723 | $ 270,516 |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 186,590 | $ 224,777 | $ 520,621 | $ 607,066 |
Shipping and Handling | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,200 | $ 1,000 | $ 3,200 | $ 2,400 |
REVENUE - Summary of Company's
REVENUE - Summary of Company's Revenue Disaggregated by Geographic Region and Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 186,590 | $ 224,777 | $ 520,621 | $ 607,066 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 163,304 | 189,456 | 454,356 | 522,170 |
United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 8,676 | 15,741 | 27,515 | 38,376 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 14,610 | 19,580 | 38,750 | 46,520 |
U.S. segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 172,818 | 197,724 | 476,227 | 540,488 |
U.S. segment | Kitchenware | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 92,587 | 113,429 | 291,062 | 337,051 |
U.S. segment | Tableware | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 44,515 | 51,667 | 101,035 | 119,188 |
U.S. segment | Home Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 35,716 | 32,628 | 84,130 | 84,249 |
International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 13,772 | $ 27,053 | $ 44,394 | $ 66,578 |
ACQUISITION - Additional Inform
ACQUISITION - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Mar. 02, 2022 | Feb. 26, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 33,237 | $ 33,237 | $ 30,271 | ||||
Net sales | 186,590 | $ 224,777 | $ 520,621 | $ 607,066 | |||
Trade names | |||||||
Business Acquisition [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 12 years | ||||||
Trade names | Trade names | |||||||
Business Acquisition [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||||||
S'well [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Accounts receivable | $ 2,280 | ||||||
Inventory | 4,005 | ||||||
Fixed assets | 40 | ||||||
Intangible assets | 13,000 | ||||||
Goodwill | 2,966 | ||||||
Accounts payable and accrued expenses | (3,685) | ||||||
Total allocated value | 18,606 | ||||||
Net sales | $ 8,000 | $ 12,400 | |||||
Total consideration transferred | 17,956 | ||||||
Business Combination , Consideration Transferred Including Contingent Consideration | 18,606 | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 650 | ||||||
Business Combination, Contingent Consideration, Liability | $ 5,000 | ||||||
Business Combination, Acquisition Related Costs | $ 900 | ||||||
Year and Day | |||||||
Business Acquisition [Line Items] | |||||||
Inventory | $ 300 | ||||||
Cash consideration | 200 | ||||||
and liabilities assumed of | $ 100 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating lease expenses: | ||||
Fixed lease expense | $ 4,463 | $ 4,471 | $ 13,392 | $ 13,467 |
Variable lease expense | 1,187 | 917 | 3,532 | 2,844 |
Total | $ 5,650 | $ 5,388 | $ 16,924 | $ 16,311 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information Related To Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 14,447 | $ 14,556 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 2,477 | $ 1,307 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Lease Liability (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 (excluding the nine months ended September 30, 2022) | $ 4,842 |
2023 | 18,879 |
2024 | 18,349 |
2025 | 17,766 |
2026 | 17,063 |
2027 | 12,980 |
Thereafter | 22,595 |
Total lease payments | 112,474 |
Less: Interest | (20,081) |
Present value of lease payments | $ 92,393 |
LEASES - Average Lease Terms An
LEASES - Average Lease Terms And Discount Rates (Details) | Sep. 30, 2022 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term (in years) | 6 years 6 months |
Operating lease, weighted average discount rate, percent | 6.10% |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Details) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Jul. 29, 2021 shares | Sep. 30, 2022 USD ($) $ / $ | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) $ / $ | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) $ / $ | Jun. 29, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity in (losses) earnings, net of taxes | $ (8,159) | $ 195 | $ (7,409) | $ 341 | ||||
Income tax provision (benefit) | 1,845 | 5,589 | 3,420 | 9,837 | ||||
Accumulated translation adjustment: | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Settlement of cash flow hedge (2) | $ 0 | (1,362) | $ 0 | (3,404) | ||||
Grupo Vasconia S.A.B. | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Percentage of ownership in equity method investment | 25% | 24.70% | 27% | 24.70% | 30% | |||
Equity in (losses) earnings, net of taxes | $ (8,200) | $ 700 | $ (7,400) | 1,200 | ||||
Number of shares sold (in shares) | shares | 2.2 | |||||||
Proceeds from sale of shares of equity method investment | $ 0 | 3,061 | ||||||
Exchange rate at period end (MXN per USD) | $ / $ | 20.13 | 20.13 | 20.46 | |||||
Increase (decrease) in equity method investment | $ (500) | 1,300 | ||||||
Equity Investment Impairment Charge | $ (6,200) | |||||||
Carrying value of investment | $ 14,400 | $ 14,400 | $ 22,300 | |||||
Fair value of investment | $ 31,500 | |||||||
Grupo Vasconia S.A.B. | Accumulated translation adjustment: | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Settlement of cash flow hedge (2) | $ 2,000 | 1,400 | ||||||
Equity in (losses) earnings, net of taxes | 1,700 | 1,000 | ||||||
Realized gain (loss) | $ (300) | 500 | ||||||
Income tax provision (benefit) | $ 100 |
INVESTMENTS - Summarized Exchan
INVESTMENTS - Summarized Exchange Rate Translation from MXN to USD (Details) - Grupo Vasconia S.A.B. - $ / $ | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Average daily exchange rate for period (MXN per USD) | 20.22 | 20.01 | ||
Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Average daily exchange rate for period (MXN per USD) | 20.50 | 20.33 | ||
Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Average daily exchange rate for period (MXN per USD) | 20.02 | 20.01 |
INVESTMENTS - Summarized Statem
INVESTMENTS - Summarized Statement of Income Information for Vasconia in USD and MXN (Details) $ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 MXN ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 MXN ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 MXN ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 MXN ($) | |
Income Statement [Abstract] | ||||||||||||
Gross profit | $ 67,833 | $ 83,115 | $ 186,068 | $ 215,276 | ||||||||
Net Income (loss) | (6,358) | $ (3,460) | $ 380 | 12,571 | $ 5,789 | $ 3,067 | (9,438) | 21,427 | ||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||||||
Income Statement [Abstract] | ||||||||||||
Net sales | 56,488 | $ 1,142,171 | 61,783 | $ 1,236,289 | 187,001 | $ 3,785,921 | 174,468 | $ 3,508,858 | ||||
Gross profit | 4,405 | 89,061 | 12,958 | 259,285 | 29,629 | 600,976 | 40,837 | 821,125 | ||||
Grupo Vasconia S.A.B. | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||||||
Income Statement [Abstract] | ||||||||||||
(Loss) income from operations | (5,459) | (110,380) | 3,886 | 77,756 | (256) | (3,974) | 14,169 | 284,799 | ||||
Net Income (loss) | $ (8,009) | $ (161,936) | $ 2,952 | $ 59,063 | $ (4,875) | $ (98,366) | $ 4,562 | $ 91,063 |
INVESTMENTS - Amounts Due to an
INVESTMENTS - Amounts Due to and and Due from Vasconia (Details) - Grupo Vasconia S.A.B. - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Prepaid expenses and other current assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Amounts due from Vasconia | $ 80 | $ 80 |
Accrued expenses and Accounts payable | ||
Schedule of Equity Method Investments [Line Items] | ||
Amounts due to Vasconia | $ (1) | $ (146) |
INTANGIBLE ASSETS - Components
INTANGIBLE ASSETS - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Intangible Assets Disclosure [Line Items] | ||
Goodwill, Gross | $ 33,237 | $ 30,271 |
Goodwill | 33,237 | 30,271 |
Finite-lived intangible assets, Accumulated Amortization | (84,759) | (103,947) |
Total, Gross | 302,285 | 331,385 |
Total, Net | 217,526 | 212,678 |
Accumulated Impairment Of Intangible Assets, Finite Lived | (14,800) | |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | |
Accumulated Impairment Of Intangible Assets Including Goodwill | (14,760) | |
Licenses | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Finite-lived intangible assets, Gross | 15,847 | 15,847 |
Finite-lived intangible assets, Accumulated Amortization | (11,540) | (11,198) |
Finite-lived intangible assets, Net | 4,307 | 4,649 |
Accumulated Impairment Of Intangible Assets, Finite Lived | 0 | |
Trade names | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Finite-lived intangible assets, Gross | 54,619 | 51,856 |
Finite-lived intangible assets, Accumulated Amortization | (18,980) | (23,829) |
Finite-lived intangible assets, Net | 35,639 | 25,481 |
Accumulated Impairment Of Intangible Assets, Finite Lived | (2,546) | |
Customer relationships(1) | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Finite-lived intangible assets, Gross | 143,155 | 177,245 |
Finite-lived intangible assets, Accumulated Amortization | (51,074) | (65,863) |
Finite-lived intangible assets, Net | 92,081 | 99,616 |
Accumulated Impairment Of Intangible Assets, Finite Lived | (11,766) | |
Other (1) | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Finite-lived intangible assets, Gross | 5,827 | 6,566 |
Finite-lived intangible assets, Accumulated Amortization | (3,165) | (3,057) |
Finite-lived intangible assets, Net | 2,662 | 3,061 |
Accumulated Impairment Of Intangible Assets, Finite Lived | (448) | |
Trade names | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Indefinite-lived intangible assets, Gross | 49,600 | 49,600 |
Indefinite-lived intangible assets, Net | $ 49,600 | 49,600 |
Accumulated Impairment Of Indefinite Lived Intangibles | $ 0 |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible Assets, Net (Excluding Goodwill) | $ 184,289 | $ 182,407 |
Foreign currency translation adjustment | (369) | |
Amortization | 10,749 | |
Goodwill [Roll Forward] | ||
Goodwill | 33,237 | 30,271 |
Goodwill, Acquired During Period | 2,966 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
INTANGIBLE ASSETS, net | 217,526 | 212,678 |
Goodwill, Acquired During Period | (2,966) | |
Foreign currency translation adjustment | 369 | |
Amortization | (10,749) | |
Accumulated Impairment Of Intangible Assets, Finite Lived | 14,800 | |
Finite-lived Intangible Assets Reduction of Impairment, Gross | 44,100 | |
Finite-lived Intangible Assets reduction for Impairment, Accumulated Amortization | (29,300) | |
Trade names | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Indefinite-lived Intangible Assets Acquired | 13,000 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Indefinite-lived Intangible Assets Acquired | $ (13,000) | |
Accumulated Impairment Of Intangible Assets, Finite Lived | 2,546 | |
Customer relationships(1) | ||
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Accumulated Impairment Of Intangible Assets, Finite Lived | $ 11,766 |
DEBT - Additional Information (
DEBT - Additional Information (Details) - USD ($) | 9 Months Ended | |||
Aug. 25, 2022 | Sep. 30, 2022 | Mar. 30, 2022 | Dec. 31, 2021 | |
ABL Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Maximum aggregate principal allowed | $ 200,000,000 | $ 150,000,000 | ||
Term Loan facility payment | 32,545,000 | 0 | ||
Minimum availability under revolving credit to maintain minimum fixed charge ratio for four consecutive months | $ 20,000,000 | |||
Commitment fee percentage | 10% | |||
Maximum fixed charge coverage ratio | 1.10 | |||
Debt Agreements | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 275,000,000 | |||
Percentage of capital stock of foreign subsidiaries pledged as collateral | 65% | |||
Minimum term under revolving credit to maintain minimum fixed charge ratio | 45 days | |||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Quarterly payments, percentage of principal amount | 0.25% | |||
Maximum debt instrument leverage ratio | 3.75 | |||
Estimated Excess Cash Flow principal payment | $ 0 | $ 7,200,000 | ||
Excess cash flow payment | $ 6,200,000 | |||
Interest rates on outstanding borrowings | 6.02% | |||
Term Loan | Federal Funds And Overnight Bank Funding Based Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Term Loan | Alternate Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.50% | |||
Term Loan | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.50% | |||
Minimum | Term Loan | Alternate Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated rate | 2% | |||
Senior Secured Asset Based Revolving Credit Facilities | ABL Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Maximum aggregate principal allowed | $ 150,000,000 | $ 200,000,000 | ||
Increase in maximum borrowing capacity | 250,000,000 | |||
Line of credit facility increased maximum borrowing capacity if certain condition met further limited | 220,000,000 | |||
Repayments of Lines of Credit | $ 32,000,000 | |||
Senior Secured Asset Based Revolving Credit Facilities | Incremental Facilities | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated amount | $ 50,000,000 | |||
Revolving Credit Facility | ABL Credit Agreement | Federal Funds And Overnight Bank Funding Based Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Revolving Credit Facility | ABL Credit Agreement | One Month Adjusted Term SEcured Overnight Financing Rate ("SOFR") | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated rate | 1% | |||
Revolving Credit Facility | ABL Credit Agreement | 1, 3 or 6 month interest period | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated rate | 0.10% | |||
Revolving Credit Facility | Term Loan | One Month London Inter bank Offered Rate LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1% | |||
Revolving Credit Facility | Minimum | ABL Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.20% | |||
Revolving Credit Facility | Minimum | ABL Credit Agreement | Alternate Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Revolving Credit Facility | Minimum | ABL Credit Agreement | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Interest rates on outstanding borrowings | 2.19% | |||
Revolving Credit Facility | Minimum | ABL Credit Agreement | One Month Adjusted Term SEcured Overnight Financing Rate ("SOFR") | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated rate | 1% | |||
Revolving Credit Facility | Minimum | ABL Credit Agreement | Adjusted Term SOFR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Revolving Credit Facility | Minimum | Term Loan | One Month London Inter bank Offered Rate LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated rate | 1% | |||
Revolving Credit Facility | Minimum | Term Loan | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated rate | 1% | |||
Revolving Credit Facility | Maximum | ABL Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.25% | |||
Revolving Credit Facility | Maximum | ABL Credit Agreement | Alternate Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Revolving Credit Facility | Maximum | ABL Credit Agreement | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Interest rates on outstanding borrowings | 6.75% | |||
Revolving Credit Facility | Maximum | ABL Credit Agreement | Adjusted Term SOFR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% |
DEBT - Total Availability Under
DEBT - Total Availability Under ABL Agreement (Details) - ABL Credit Agreement - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Maximum aggregate principal allowed | $ 200,000 | $ 150,000 |
Standby letters of credit | (2,765) | (3,659) |
Total availability under the ABL Agreement | $ 164,690 | $ 146,341 |
DEBT - Schedule of Term Loan Fa
DEBT - Schedule of Term Loan Facility (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total Current portion of Term Loan facility | $ 0 | $ 5,771 |
Term Loan facility, net of current portion | 32,545 | 0 |
Total Non Current portion of Term Loan facility | 242,505 | 241,873 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Estimated Excess Cash Flow principal payment | 0 | 7,200 |
Estimated unamortized debt issuance costs | 0 | (1,429) |
Total Current portion of Term Loan facility | 0 | 5,771 |
Term Loan facility, net of current portion | 245,911 | 244,927 |
Estimated unamortized debt issuance costs | (3,406) | (3,054) |
Total Non Current portion of Term Loan facility | $ 242,505 | $ 241,873 |
DERIVATIVES - Additional Inform
DERIVATIVES - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||||
Gain (loss) reclassified into earnings | $ 300,000 | $ (500,000) | $ 300,000 | $ 1,300,000 |
Loss to be reclassified within 12 months | (2,000,000) | |||
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional amount | 50,000,000 | 50,000,000 | ||
Derivatives designated as hedging instruments | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Notional amount | 3,500,000 | 3,500,000 | ||
Derivatives designated as hedging instruments | Cash Flow Hedging | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional amount | 25,000,000 | 25,000,000 | ||
Derivatives not designated as hedging instruments | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional amount | 25,000,000 | 25,000,000 | ||
Interest expense | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Gain (loss) reclassified into earnings | (30,000) | (200,000) | (300,000) | (700,000) |
Cost of Sales | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gain (loss) reclassified into earnings | $ 300,000 | $ (300,000) | $ 600,000 | $ (600,000) |
DERIVATIVES - Fair Values of De
DERIVATIVES - Fair Values of Derivative Financial Instruments Included in Consolidated Balance Sheets (Details) - Fair Value, Observable inputs, Level 2 - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives designated as hedging instruments | Interest rate swaps | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 179 | $ 0 |
Derivatives designated as hedging instruments | Interest rate swaps | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 0 | 288 |
Derivatives designated as hedging instruments | Interest rate swaps | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 0 | 292 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 663 | 461 |
Derivatives not designated as hedging instruments | Interest rate swaps | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 0 | 680 |
Derivatives not designated as hedging instruments | Interest rate swaps | Other Noncurrent Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 1,310 | $ 0 |
DERIVATIVES - Gains and Losses
DERIVATIVES - Gains and Losses Related to Derivative Financial Instruments Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net change in cash flow hedges | $ 354 | $ 992 | $ 1,912 | $ 1,055 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net change in cash flow hedges | 87 | 147 | 570 | 540 |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net change in cash flow hedges | $ 267 | $ 845 | $ 1,342 | $ 515 |
DERIVATIVES - Gains and Losse_2
DERIVATIVES - Gains and Losses Related to Derivative Financial Instruments Not Designated as Hedging Instruments (Details) - Interest rate swaps - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative financial instruments not designated as hedging instruments | $ 655 | $ 4 | $ 1,825 | $ 322 |
Mark to market gain on interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative financial instruments not designated as hedging instruments | 637 | 120 | 1,990 | 664 |
Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative financial instruments not designated as hedging instruments | $ 18 | $ (116) | $ (165) | $ (342) |
STOCK COMPENSATION - Summary of
STOCK COMPENSATION - Summary of Stock Option (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Options | |
Beginning balance (in shares) | shares | 1,094,575 |
Grants (in shares) | shares | 56,000 |
Exercises | shares | (60,000) |
Cancellations | shares | 5,125 |
Expirations | shares | 13,450 |
Ending balance (in shares) | shares | 1,072,000 |
Options exercisable, end of period (in shares) | shares | 957,125 |
Weighted- average exercise price | |
Beginning balance (usd per share) | $ / shares | $ 13.64 |
Grants (usd per share) | $ / shares | 11.45 |
Exercises (usd per share) | $ / shares | 11.64 |
Cancellations (usd per share) | $ / shares | 10.60 |
Expirations (usd per share) | $ / shares | 13.99 |
Ending balance (usd per share) | $ / shares | 13.65 |
Weighted-average exercise price, Options exercisable, end of period (usd per share) | $ / shares | $ 13.92 |
Weighted- average remaining contractual life (years) | |
Options outstanding, end of period | 4 years 8 months 12 days |
Options exercisable, end of period | 4 years 2 months 12 days |
Aggregate intrinsic value (in thousands) | |
Options outstanding, aggregate intrinsic Value | $ | $ 13 |
Options exercisable, aggregate intrinsic Value | $ | 6 |
Total unrecognized stock option expense remaining (in thousands) | $ | $ 550 |
Weighted-average years expected to be recognized over (in years) | 2 years |
STOCK COMPENSATION - Summary _2
STOCK COMPENSATION - Summary of Restricted Stock Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Restricted Shares | |
Weighted-average years expected to be recognized over (in years) | 2 years |
Restricted Stock | |
Restricted Shares | |
Beginning balance (in shares) | shares | 429,601 |
Grants (in shares) | shares | 266,713 |
Vested (in shares) | shares | (171,924) |
Cancellations (in shares) | shares | (6,881) |
Ending balance (in shares) | shares | 517,509 |
Total unrecognized compensation expense remaining (in thousands) | $ | $ 4,771 |
Weighted-average years expected to be recognized over (in years) | 1 year 8 months 12 days |
Weighted- average grant date fair value | |
Beginning balance (usd per share) | $ / shares | $ 11.47 |
Grants (usd per share) | $ / shares | 12.03 |
Vested (usd per share) | $ / shares | 11.89 |
Cancellations (usd per share) | $ / shares | 10.92 |
Ending balance (usd per share) | $ / shares | $ 11.63 |
STOCK COMPENSATION - Additional
STOCK COMPENSATION - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 23, 2022 | Sep. 30, 2022 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of equity instruments | $ 2.1 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of equity instruments | $ 2 | |
Performance Shares | Amended and Restated Long Term Incentive Plan Two Thousand | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,180,000 | |
Number of shares available for grant (in shares) | 1,127,708 | |
Cash Settled Performance Based Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares range percentage | 150% |
STOCK COMPENSATION - Summary _3
STOCK COMPENSATION - Summary of Performance-based Award Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Restricted Shares | |
Weighted-average years expected to be recognized over (in years) | 2 years |
Performance Shares | |
Restricted Shares | |
Beginning balance (in shares) | shares | 436,330 |
Grants (in shares) | shares | 123,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants over target in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 9.20 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options | shares | 12,035 |
Vested (in shares) | shares | (166,935) |
Cancellations (in shares) | shares | (4,128) |
Ending balance (in shares) | shares | 400,302 |
Total unrecognized compensation expense remaining (in thousands) | $ | $ 2,461 |
Weighted-average years expected to be recognized over (in years) | 1 year 8 months 12 days |
Weighted- average grant date fair value | |
Beginning balance (usd per share) | $ / shares | $ 10.54 |
Grants (usd per share) | $ / shares | 12.19 |
Vested (usd per share) | $ / shares | 9.20 |
Cancellations (usd per share) | $ / shares | 10.64 |
Ending balance (usd per share) | $ / shares | $ 11.56 |
STOCK COMPENSATION - Stock Comp
STOCK COMPENSATION - Stock Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock compensation expense | $ 1,026 | $ 1,201 | $ 3,565 | $ 3,973 |
Equity based stock option expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock compensation expense | 51 | 95 | 231 | 321 |
Restricted and performance-based stock awards expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock compensation expense | 972 | 1,097 | 3,223 | 3,633 |
Equity based awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock compensation expense | 1,023 | 1,192 | 3,454 | 3,954 |
Liability based stock option expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock compensation expense | (11) | 9 | (17) | 19 |
Cash Settled Performance Based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock compensation expense | $ 14 | $ 0 | $ 128 | $ 0 |
STOCK COMPENSATION (Details)
STOCK COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average years expected to be recognized over (in years) | 2 years | |
Cash Settled Performance Based Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
share-based compensation arrangement by share-based payment award liability instruments other than option, grants in period | 87,825 | |
Share-based Compensation Arrangement by Share-based Payment Award, Liability Instruments Other Than Options, Forfeited in Period | (2,049) | |
Grants (usd per share) | $ 6.85 | |
Share-based Compensation Arrangement by Share-based Payment Award, Liability Instruments Other than Options, Forfeiteds in Period, Weighted Average Grant Date Fair Value | $ 10.39 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 85,776 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 6.77 | $ 0 |
Total unrecognized compensation expense remaining (in thousands) | $ 464 | |
Weighted-average years expected to be recognized over (in years) | 2 years 3 months 18 days | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation expense remaining (in thousands) | $ 2,461 | |
Weighted-average years expected to be recognized over (in years) | 1 year 8 months 12 days |
INCOME (LOSS) PER COMMON SHAR_2
INCOME (LOSS) PER COMMON SHARE - Calculations of Basic and Diluted Loss per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Net (loss) income | $ (6,358) | $ (3,460) | $ 380 | $ 12,571 | $ 5,789 | $ 3,067 | $ (9,438) | $ 21,427 |
Weighted-average shares outstanding - Basic (in shares) | 21,522 | 21,549 | 21,602 | 21,343 | ||||
Effect of dilutive securities: | ||||||||
Weighted-average shares outstanding - diluted (in shares) | 21,522 | 22,085 | 21,602 | 21,964 | ||||
Basic income (loss) per common share (usd per share) | $ (0.30) | $ 0.58 | $ (0.44) | $ 1 | ||||
Diluted income (loss) per common share (usd per share) | $ (0.30) | $ 0.57 | $ (0.44) | $ 0.98 | ||||
Antidilutive securities (in shares) | 1,682 | 337 | 1,675 | 394 | ||||
Stock options and other stock awards | ||||||||
Effect of dilutive securities: | ||||||||
Stock options and other stock awards (in shares) | 0 | 536 | 0 | 621 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ (1,845) | $ (5,589) | $ (3,420) | $ (9,837) |
Effective income tax benefit rate on US and foreign earnings, percent | 50.60% | 31.10% | 245.90% | 31.80% |
Corporate income tax rate | 21% | 21% |
BUSINESS SEGMENTS - Additional
BUSINESS SEGMENTS - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable business segment | 2 |
BUSINESS SEGMENTS - Segment Rep
BUSINESS SEGMENTS - Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 186,590 | $ 224,777 | $ 520,621 | $ 607,066 | |
Income from operations | 7,590 | 21,680 | 11,481 | 41,927 | |
Depreciation and amortization | 4,598 | 5,837 | 14,535 | 17,560 | |
Assets | 756,928 | 756,928 | $ 829,074 | ||
U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 163,304 | 189,456 | 454,356 | 522,170 | |
Operating segments | U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 661,145 | 661,145 | 706,000 | ||
Operating segments | International | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 87,270 | 87,270 | 95,092 | ||
Unallocated corporate expenses | |||||
Segment Reporting Information [Line Items] | |||||
Income from operations | (9,457) | (6,876) | (20,232) | (18,244) | |
Assets | 8,513 | 8,513 | $ 27,982 | ||
U.S. | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 172,818 | 197,724 | 476,227 | 540,488 | |
Income from operations | 19,548 | 30,958 | 41,404 | 66,339 | |
Depreciation and amortization | 4,321 | 4,624 | 13,568 | 13,913 | |
International | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 13,772 | 27,053 | 44,394 | 66,578 | |
Income from operations | (2,501) | (2,402) | (9,691) | (6,168) | |
Depreciation and amortization | $ 277 | $ 1,213 | $ 967 | $ 3,647 |
CONTINGENCIES - Additional Info
CONTINGENCIES - Additional Information (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 USD ($) tablewareCollection | Oct. 15, 2020 protest | Jun. 08, 2020 protest | |
Commitments and Contingencies Disclosure [Line Items] | |||
Number of tableware collections | tablewareCollection | 7 | ||
Number of remaining tableware collections | tablewareCollection | 29 | ||
Number of protests filed | protest | 3 | ||
Number of protests approved | protest | 1 | ||
Number of protests pending | tablewareCollection | 2 | ||
Period of investigation | 5 years | ||
Site Contingency, Environmental Remediation Costs Recognized | 5.6 million | ||
Estimated Duties That Could Be Owed | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Reasonable possible loss | $ 1.3 | ||
Negligence | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Reasonable possible loss | 2.6 | ||
Gross Negligence | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Reasonable possible loss | 5.2 | ||
Capital cost | San German Ground Water Contamination Site, Initial Operable Unit | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Remedial alternative, EPA preferred remedy | 7.3 | ||
Capital cost | San German Ground Water Contamination Site, Second Operable Unit | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Remedial alternative, EPA preferred remedy | $ 17.3 |
OTHER - Cash Dividends Declared
OTHER - Cash Dividends Declared (Details) - $ / shares | 9 Months Ended | ||||
Aug. 02, 2022 | Jun. 23, 2022 | Mar. 08, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Dividend per share of common stock (usd per share) | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.1275 | $ 0.1275 |
OTHER - Additional Information
OTHER - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||||||||||
Nov. 01, 2022 | Aug. 15, 2022 | Aug. 02, 2022 | Jun. 23, 2022 | May 16, 2022 | Mar. 08, 2022 | Feb. 14, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | [1] | Mar. 31, 2021 | [1] | Sep. 30, 2022 | Sep. 30, 2021 | ||
Other [Line Items] | ||||||||||||||||||
Dividend per share, declared (usd per share) | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.1275 | $ 0.1275 | |||||||||||||
Cash dividends paid | $ 2,887 | $ 2,913 | ||||||||||||||||
Cash dividend paid upon vesting of restricted shares and performance shares | $ 100 | |||||||||||||||||
Dividends accrued | $ 952 | $ 958 | $ 960 | $ 914 | $ 943 | |||||||||||||
Treasury Stock, Shares, Acquired | 52,952 | 389,743 | ||||||||||||||||
Stock Repurchased During Period, Value | $ 479 | 3,528 | 671 | $ 995 | $ 4,700 | |||||||||||||
Subsequent Event | ||||||||||||||||||
Other [Line Items] | ||||||||||||||||||
Dividend per share, declared (usd per share) | $ 0.0425 | |||||||||||||||||
Dividend Paid | ||||||||||||||||||
Other [Line Items] | ||||||||||||||||||
Cash dividends paid | $ 900 | $ 900 | $ 900 | 2,900 | ||||||||||||||
Retained earnings | ||||||||||||||||||
Other [Line Items] | ||||||||||||||||||
Dividends accrued | 952 | 958 | 960 | 0 | [1] | $ 914 | $ 943 | $ 2,900 | ||||||||||
Stock Repurchased During Period, Value | $ 477 | $ 4,197 | $ 0 | $ 995 | ||||||||||||||
[1]Cash dividends declared per share of common stock were $0.1275 and $0.1275 in the nine months ended September 30, 2022 and 2021, respectively. |
OTHER - Supplemental Cash Flow
OTHER - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 10,804 | $ 10,279 |
Cash paid for taxes, net of refunds | 6,527 | 12,616 |
Non-cash investing activities: | ||
Net gain (loss) on dilution of Vasconia ownership | $ 0 | $ (1,673) |
OTHER - Components of Accumulat
OTHER - Components of Accumulated Other Comprehensive Loss, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of year | $ 245,368 | $ 241,801 | $ 230,136 | $ 255,646 | $ 230,136 |
Balance at end of year | 236,299 | 255,975 | 241,801 | 236,299 | 255,975 |
Accumulated translation adjustment: | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of year | (36,175) | (31,623) | (35,846) | (31,752) | (35,846) |
Other comprehensive income, before reclassifications | (2,686) | (1,122) | (7,109) | 1,059 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 1,362 | 0 | 3,404 | |
Other comprehensive income (loss), net of taxes | (2,686) | 240 | (7,109) | 4,463 | |
Balance at end of year | (38,861) | (31,383) | (31,623) | (38,861) | (31,383) |
Accumulated deferred gains (losses) on cash flow hedges: | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of year | 1,636 | (1,062) | (1,125) | 78 | (1,125) |
Other comprehensive income, before reclassifications | 624 | 528 | 2,201 | (255) | |
Amounts reclassified from accumulated other comprehensive loss | (270) | 464 | (289) | 1,310 | |
Other comprehensive income (loss), net of taxes | 354 | 992 | 1,912 | 1,055 | |
Balance at end of year | 1,990 | (70) | (1,062) | 1,990 | (70) |
Income tax expense (benefit) | 92 | (247) | 505 | (301) | |
Accumulated effect of retirement benefit obligations: | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of year | (1,817) | (2,133) | (2,201) | (1,875) | (2,201) |
Amounts reclassified from accumulated other comprehensive loss | 29 | 33 | 87 | 101 | |
Balance at end of year | (1,788) | (2,100) | (2,133) | (1,788) | (2,100) |
Accumulated other comprehensive loss | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of year | (36,356) | (34,818) | (39,172) | (33,549) | (39,172) |
Balance at end of year | $ (38,659) | $ (33,553) | $ (34,818) | $ (38,659) | $ (33,553) |