Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 144,786,708 | ||
Entity Common Stock, Shares Outstanding | 21,483,927 | ||
Documents Incorporated by Reference | Parts of the registrant’s definitive proxy statement for the 2023 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A under the Securities Exchange Act of 1934 are incorporated by reference in Part III of this Annual Report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000874396 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Location | Jericho, New York |
Auditor Name | Ernst & Young LLP |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 23,598 | $ 27,982 |
Accounts receivable, less allowances of $14,606 at December 31, 2022 and $16,544 at December 31, 2021 | 141,195 | 175,076 |
Inventory | 222,209 | 270,516 |
Prepaid expenses and other current assets | 13,254 | 11,499 |
TOTAL CURRENT ASSETS | 400,256 | 485,073 |
PROPERTY AND EQUIPMENT, net | 18,022 | 20,748 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 74,869 | 86,487 |
INVESTMENTS | 12,516 | 22,295 |
INTANGIBLE ASSETS, net | 213,887 | 212,678 |
OTHER ASSETS | 6,338 | 1,793 |
TOTAL ASSETS | 725,888 | 829,074 |
CURRENT LIABILITIES | ||
Current maturity of term loan | 0 | 5,771 |
Accounts payable | 38,052 | 82,573 |
Accrued expenses | 77,602 | 112,741 |
Income taxes payable | 224 | 604 |
Current portion of operating lease liabilities | 14,028 | 12,612 |
TOTAL CURRENT LIABILITIES | 129,906 | 214,301 |
OTHER LONG-TERM LIABILITIES | 14,995 | 12,116 |
INCOME TAXES PAYABLE, LONG-TERM | 1,591 | 1,472 |
OPERATING LEASE LIABILITIES | 76,420 | 90,824 |
DEFERRED INCOME TAXES | 9,607 | 12,842 |
REVOLVING CREDIT FACILITY | 10,424 | 0 |
TERM LOAN | 242,857 | 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 December 31, 2022 and 2021; shares issued and outstanding: 21,779,799 at December 31, 2022 and 22,018,016 at December 31, 2021 | 218 | 220 |
Paid-in capital | 274,579 | 271,556 |
Retained earnings | 1,145 | 17,419 |
Accumulated other comprehensive loss | (35,854) | (33,549) |
TOTAL STOCKHOLDERS’ EQUITY | 240,088 | 255,646 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 725,888 | $ 829,074 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts receivable, allowances | $ 14,606 | $ 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 outstanding (in shares) | 21,779,799 | 22,018,016 |
Common stock, shares issued (in shares) | 21,779,799 | 22,018,016 |
Preferred stock Series A | ||
Preferred stock, outstanding (in shares) | 0 | 0 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 100 | 100 |
Preferred stock Series B | ||
Preferred stock, outstanding (in shares) | 0 | 0 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 727,662 | $ 862,924 | $ 769,169 |
Cost of sales | 467,346 | 559,605 | 495,171 |
Gross margin | 260,316 | 303,319 | 273,998 |
Distribution expenses | 74,948 | 80,772 | 72,845 |
Selling, general and administrative expenses | 154,545 | 156,445 | 155,872 |
Goodwill and other intangible asset impairments | 0 | 14,760 | 20,100 |
Environmental Remediation Expense | 5,140 | 500 | 0 |
Restructuring expenses | 1,420 | 0 | 211 |
Income from operations | 24,263 | 50,842 | 24,970 |
Interest expense | (17,205) | (15,524) | (17,277) |
Mark to market gain (loss) on interest rate derivatives | 1,971 | 1,062 | (2,144) |
Income before income taxes and equity in (losses) earnings | 9,029 | 36,380 | 5,549 |
Income tax provision | (5,728) | (16,541) | (9,866) |
Equity in (losses) earnings, net of taxes | (9,467) | 962 | 1,310 |
NET (LOSS) INCOME | $ (6,166) | $ 20,801 | $ (3,007) |
BASIC LOSS PER COMMON SHARE (usd per share) | $ (0.29) | $ 0.97 | $ (0.14) |
DILUTED LOSS PER COMMON SHARE (usd per share) | $ (0.29) | $ 0.94 | $ (0.14) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (6,166) | $ 20,801 | $ (3,007) |
Other comprehensive (loss) income, net of tax: | |||
Translation adjustment | (4,320) | 4,094 | (1,827) |
Net change in cash flow hedges | 845 | 1,203 | (2,289) |
Effect of retirement benefit obligations | 1,170 | 326 | (601) |
Other comprehensive (loss) income, net of taxes | (2,305) | 5,623 | (4,717) |
Comprehensive (loss) income | $ (8,471) | $ 26,424 | $ (7,724) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Fair value adjustment, tax | $ (190) | $ (246) | $ 803 |
Net (loss) income arising from retirement benefit obligations, tax | (359) | (64) | 259 |
Amortization of loss included in net income, tax | $ (39) | $ (45) | $ (52) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Employee | Common stock | Common stock Employee | Paid-in capital | Paid-in capital Employee | Retained earnings | Accumulated other comprehensive loss | |
Balance at beginning of year (in shares) at Dec. 31, 2019 | 21,256,000 | ||||||||
Balance at beginning of year at Dec. 31, 2019 | $ 236,317 | $ 213 | $ 263,386 | $ 7,173 | $ (34,455) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss) income | (3,007) | (3,007) | |||||||
Other Comprehensive Income (Loss), Net of Tax | (4,717) | (4,717) | |||||||
Net issuance of restricted shares granted to employees (in shares) | 525,000 | ||||||||
Net issuance of restricted shares granted to employees and directors | $ 0 | $ 5 | $ (5) | ||||||
Performance shares issued to employees (in shares) | 62,000 | ||||||||
Performance shares issued to employees | 0 | $ 1 | (1) | ||||||
Stock compensation expense | $ 5,916 | 5,916 | |||||||
Net exercise of stock options (in shares) | 2,500 | 3,000 | |||||||
Net exercise of stock options | $ 27 | $ 0 | 27 | ||||||
Shares effectively repurchased for required employee withholding taxes (in shares) | (91,000) | ||||||||
Shares effectively repurchased for required employee withholding taxes | (658) | $ (1) | (657) | ||||||
Dividends | [1] | (3,742) | (3,742) | ||||||
Balance at end of year (in shares) at Dec. 31, 2020 | 21,755,000 | ||||||||
Balance at end of year at Dec. 31, 2020 | $ 230,136 | $ 218 | 268,666 | 424 | (39,172) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock Repurchased During Period, Shares | 0 | ||||||||
Net (loss) income | $ 20,801 | 20,801 | |||||||
Other Comprehensive Income (Loss), Net of Tax | 5,623 | 5,623 | |||||||
Net issuance of restricted shares granted to employees (in shares) | 221,000 | ||||||||
Net issuance of restricted shares granted to employees and directors | $ 2 | (2) | |||||||
Performance shares issued to employees (in shares) | 150,000 | ||||||||
Performance shares issued to employees | 0 | $ 1 | (1) | ||||||
Stock compensation expense | $ 5,204 | 5,204 | |||||||
Net exercise of stock options (in shares) | 236,325 | 106,000 | |||||||
Net exercise of stock options | $ 877 | $ 1 | 876 | ||||||
Shares effectively repurchased for required employee withholding taxes (in shares) | (214,000) | ||||||||
Shares effectively repurchased for required employee withholding taxes | (3,189) | $ (2) | (3,187) | ||||||
Dividends | [1] | (3,806) | (3,806) | ||||||
Balance at end of year (in shares) at Dec. 31, 2021 | 22,018,000 | ||||||||
Balance at end of year at Dec. 31, 2021 | $ 255,646 | $ 220 | 271,556 | 17,419 | (33,549) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock Repurchased During Period, Shares | 0 | ||||||||
Net (loss) income | $ (6,166) | (6,166) | |||||||
Other Comprehensive Income (Loss), Net of Tax | (2,305) | (2,305) | |||||||
Net issuance of restricted shares granted to employees (in shares) | 260,000 | ||||||||
Net issuance of restricted shares granted to employees and directors | $ 3 | (3) | |||||||
Performance shares issued to employees (in shares) | 167,000 | ||||||||
Performance shares issued to employees | 0 | $ 2 | $ (2) | ||||||
Stock compensation expense | $ 3,861 | ||||||||
Net exercise of stock options (in shares) | 60,000 | 25,000 | |||||||
Net exercise of stock options | $ 233 | $ 0 | 233 | ||||||
Shares effectively repurchased for required employee withholding taxes (in shares) | (93,000) | ||||||||
Shares effectively repurchased for required employee withholding taxes | (1,067) | $ (1) | (1,066) | ||||||
Dividends | (3,794) | (3,794) | |||||||
Balance at end of year (in shares) at Dec. 31, 2022 | 21,780,000 | ||||||||
Balance at end of year at Dec. 31, 2022 | $ 240,088 | $ 218 | 274,579 | 1,145 | $ (35,854) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock Repurchased During Period, Shares | (597,195) | (597,000) | |||||||
Stock Repurchased During Period, Value | $ (6,320) | $ (6) | $ 0 | $ (6,314) | |||||
[1]Cash dividend declared per share of common stock, were $0.17, $0.17 and $0.17 in 2020, 2021 and 2022, respectively. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend per share (in usd per share) | $ 0.17 | $ 0.17 | $ 0.17 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | |||
Net (loss) income | $ (6,166) | $ 20,801 | $ (3,007) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 19,536 | 22,520 | 24,664 |
Goodwill and other intangible asset impairments | 0 | 14,760 | 20,100 |
Amortization of financing costs | 1,809 | 1,739 | 1,774 |
Mark to market gain (loss) on interest rate derivatives | (1,971) | (1,062) | 2,144 |
Non-cash lease expense | (1,483) | (1,294) | 2,379 |
Provision (recovery) for doubtful accounts | 662 | (5) | 3,291 |
Deferred income taxes | (3,825) | 1,799 | (1,861) |
Stock compensation expense | 3,846 | 5,217 | 5,951 |
Undistributed losses (earnings) from equity investment, net of taxes | 9,467 | (807) | (1,258) |
Environmental Remediation Expense | 5,140 | 500 | 0 |
Changes in operating assets and liabilities | |||
Accounts receivable | 33,889 | (5,531) | (43,760) |
Inventory | 47,443 | (67,501) | (28,979) |
Prepaid expenses, other current assets and other assets | (2,447) | 2,043 | 1,088 |
Accounts payable, accrued expenses and other liabilities | (81,365) | 48,079 | 55,721 |
Income taxes receivable | 0 | 0 | 1,577 |
Income taxes payable | (216) | (4,270) | 4,989 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 24,319 | 36,988 | 44,813 |
INVESTING ACTIVITIES | |||
Purchases of property and equipment | (2,975) | (3,986) | (2,082) |
Acquisitions | 0 | ||
NET CASH USED IN INVESTING ACTIVITIES | (20,931) | (1,103) | (2,082) |
FINANCING ACTIVITIES | |||
Payments of Financing Costs | 1,021 | 0 | 0 |
Payments for finance lease obligations | (32) | (117) | (152) |
Payments of tax withholding for stock based compensation | (1,067) | (3,189) | (658) |
Proceeds from the exercise of stock options | 233 | 877 | 27 |
Payments for stock repurchase | (6,320) | 0 | 0 |
Cash dividends paid | (3,820) | (3,843) | (3,651) |
NET CASH USED IN FINANCING ACTIVITIES | (7,617) | (44,027) | (18,236) |
Effect of foreign exchange on cash | (155) | 161 | 98 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (4,384) | (7,981) | 24,593 |
Cash and cash equivalents at beginning of year | 27,982 | 35,963 | 11,370 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 23,598 | 27,982 | 35,963 |
S'well | |||
INVESTING ACTIVITIES | |||
Acquisitions | (17,956) | ||
Year and Day [Member] | |||
INVESTING ACTIVITIES | |||
Acquisitions | (178) | ||
Grupo Vasconia S.A.B. | |||
INVESTING ACTIVITIES | |||
Proceeds from sale of shares of equity method investment | 0 | 3,061 | 0 |
Revolving Credit Facility | |||
FINANCING ACTIVITIES | |||
Proceeds from long term lines of credit | 276,288 | 103,385 | 129,244 |
Repayments of long term lines of credit | (265,662) | (130,662) | (135,463) |
Term Loan | |||
FINANCING ACTIVITIES | |||
Repayments of long term lines of credit | $ (6,216) | $ (10,478) | $ (7,583) |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Organization and business 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 consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information and with the instructions to Form 10-K. The accompanying consolidated financial statements include estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U.S. GAAP. The most significant of these estimates and assumptions relate to revenue recognition, allowances for doubtful accounts, reserves for sales returns and allowances and customer chargebacks, inventory mark-down provisions, impairment of goodwill, tangible and intangible assets, stock-based compensation expense, estimates for unpaid healthcare claims, derivative valuations, accruals related to the Company’s tax positions and tax valuation allowances. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Principles of consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Risk and uncertainties The Company’s current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from expectations, which could materially affect the Company’s results of operations and financial position. Foreign currency Foreign currency denominated assets and liabilities are translated into U.S. dollars at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars at average exchange rates for the relevant period. Income and losses resulting from translation are recorded as a component of accumulated other comprehensive income (loss). Foreign currency gains and losses included within selling, general and administrative expenses were a $1.5 million loss in 2022, a $1.3 million loss in 2021, and a $0.5 million gain in 2020. 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 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. Freight-out expenses were $17.4 million, $19.2 million and $15.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. Handling costs of products sold are included in cost of sales. Advertising expenses Advertising expenses are expensed as incurred and are included in selling, general and administrative expenses. Advertising expenses were $6.8 million, $4.4 million and $3.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. Accounts receivable The Company periodically reviews the collectability of its accounts receivable and establishes allowances for estimated losses that could result from the inability of its customers to make required payments, taking into consideration customer credit history and financial condition, industry and market segment information, credit reports, and economic trends and conditions such as the impact 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. The sales of accounts receivable, under the Company’s Receivable Purchase Agreement with HSBC, are reflected as a reduction of accounts receivable in the Company’s consolidated balance sheet at the time of sale and any related expense is included in selling, general and administrative expenses in the Company’s consolidated statements of operations. 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. Property and equipment Property and equipment is stated at cost. Equipment under finance leases is recorded at the present value of the total minimum lease payments. Property and equipment, other than leasehold improvements and equipment under finance leases, are depreciated using the straight-line method over the estimated useful lives of the assets. Buildings are depreciated over 30 years, machinery and equipment and computer hardware and software are depreciated over periods ranging from 3 years to 10 years. Leasehold improvements are amortized over the term of the lease or the estimated useful lives of the improvements, whichever is shorter. Equipment under finance leases are amortized over the shorter of the lease term or the assets' useful lives. Advances paid towards the acquisition of property and equipment and the cost of property and equipment not ready for use before the end of the period are classified as construction in progress. Cash equivalents The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Concentration of credit risk The Company’s cash and cash equivalents are potentially subject to concentration of credit risk. The Company maintains cash with several financial institutions that, in some cases, is in excess of Federal Deposit Insurance Corporation insurance limits. Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of entities comprising the Company’s customer base. During the years ended December 31, 2022, 2021 and 2020, Wal-Mart Stores, Inc., including Sam’s Club and, in the U.K., Asda Superstore, (“Walmart”), accounted for 19%, 18% and 20% of consolidated net sales, respectively. During the years ended December 31, 2022, 2021 and 2020, sales to Costco Wholesale Corporation (“Costco”) accounted for 13%, 12%, and 11% of consolidated net sales. During the year ended December 31, 2022, 2021 and 2020, Amazon.com Inc., (“Amazon”), accounted for 11%, 12% and 10% of consolidated net sales. Sales to Walmart, Costco and Amazon are included in the Company's U.S. and International segments. No other customers accounted for 10% or more of the Company’s sales during these periods. Fair value measurements Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, provides enhanced guidance for using fair value to measure assets and liabilities and establishes a common definition of fair value, provides a framework for measuring fair value under U.S. GAAP and expands disclosure requirements about fair value measurements. Fair value measurements included in the Company’s consolidated financial statements relate to the Company’s annual goodwill and other intangible asset impairment tests and derivatives, described in NOTE 7 — GOODWILL AND INTANGIBLE ASSETS and NOTE 9 — DERIVATIVES, respectively. 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 approximate fair value since such borrowings bear interest at variable market rates. Derivatives The Company accounts for derivative instruments in accordance with ASC Topic 815, Derivatives and Hedging. 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 change in the fair value of hedges is included in accumulated other comprehensive loss and is subsequently recognized in the Company’s 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 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 FASB's 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 not considered to be impaired. 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. See NOTE 7 — GOODWILL AND INTANGIBLE ASSETS for further discussion regarding goodwill impairment. 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. See NOTE 7 — GOODWILL AND INTANGIBLE ASSETS for further discussion regarding impairment of indefinite lived intangibles. 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 7 — GOODWILL AND INTANGIBLE ASSETS for further discussion regarding impairment of long-lived assets. Income taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company accounts for foreign income taxes based upon anticipated reinvestment of profits into respective foreign tax jurisdictions. The Company applies the authoritative guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the Company’s financial statements . In accordance with this guidance, tax positions must meet a more-likely-than-not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position. A valuation allowance is required to be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. Share-based compensation The Company accounts for its share-based compensation arrangements in accordance with ASC Topic 718, Compensation: Stock-based Compensation, which requires the measurement of compensation expense for all share-based compensation granted to employees and non-employee directors at fair value on the date of grant and recognition of compensation expense over the related service period. Forfeitures are accounted for as they occur. The Company uses the Black-Scholes option valuation model to estimate the fair value of its stock options. The Black-Scholes option valuation model requires the input of subjective assumptions including the expected stock price volatility of the Company’s common stock and the risk-free interest rate. Changes in these subjective input assumptions can materially affect the fair value estimate of the Company’s stock options on the date of the option grant. Performance share awards are initially valued at the Company’s closing stock price on the date of grant. 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, as determined by the Compensation Committee of the Board of Directors, by the end of the performance period. Compensation expense for performance 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 performance share awards vest at the end of a three year period, as determined by the Compensation Committee. The Company bases the estimated fair value of restricted stock awards on the date of grant. The estimated fair value is determined based on the closing price of the Company’s common stock on the date of grant multiplied by the number of shares awarded. Compensation expense is recognized on a straight-line basis over the vesting period. 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. 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 accrued expenses and other long-term liabilities in the Company's 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. 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 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 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 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 12 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. 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. In 2022, the Company's international segment incurred $0.4 million of restructuring expenses related to severance associated with the reorganization of the International segment's workforce. The reorganization was the result of the Company’s efforts to realign the management and operating structure of the European business in response to changing market conditions. The Company expects annual savings of $2.3 million associated with the reorganization. In 2022, the Company’s U.S. segment accrued $0.4 million related to severance associated with the reorganization of the U.S. segment’s sales management structure. The Company accrued $0.6 million of unallocated expense related to the termination payment with its Executive Chairman, Jeffrey Siegel. On November 1, 2022, the Company entered into a transition agreement with Jeffrey Siegel, which provides for termination of his employment with the Company, effective March 31, 2023. The transition agreement amends Mr. Siegel’s employment agreement which was to expire on December 31, 2022. The employment agreement provides for a one-time payment which will be paid upon the expiration of the transition agreement. The Company estimates the one-time payment to be approximately $1.4 million, of which $0.6 million was accrued as a restructuring expense in 2022. The remaining $0.8 million is expected to be recorded over the remaining employment period. The Company expects annual savings of $1.3 million due to these actions. During the year ended December 31, 2020, the Company's International segment incurred $0.2 million of restructuring expenses related to severance associated with the strategic reorganization of the International segment’s product development and sales workforce. The strategic reorganization was the result of the Company's efforts for product development efficiencies and an international sales approach tailored to countries. Commitments and Contingencies The Company is subject to various claims and contingencies related to lawsuits, certain taxes and environmental matters, as well as commitments under contractual and other commercial obligations. The Company recognizes liabilities for contingencies and commitments when a loss is probable and estimable. Adopted 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 consolidated financial statements. In connection with the Amendment No.1 of the Term Loan, effective December 29, 2022, the Company adopted ASU 2020-04 and 2022-06, 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 may be applied to contract modifications and hedging relationships as of any date from March 12, 2020 but no later than December 31, 2024 and should be applied on a prospective basis. The Company applied available practical expedients under Topic 848 to account for modifications, changes in critical terms, and updates to the designated hedged risks as qualifying changes have been made to applicable debt modifications as if they were not substantial. Application of these practical expedients allowed us to maintain hedge accounting for our interest rate swap contracts. The adoption did not have a material impact on the Company's 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. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUEThe 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 $4.6 million, $3.9 million and $3.9 million for the years ended December 31, 2022, 2021 and 2020, 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 represent forms of variable consideration, and an estimate of sales returns are reflected as reductions in net sales in the Company’s 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 sales. The Company incurs certain direct incremental costs to obtain contracts with customers, such as sales-related commissions, 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 consolidated statement 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 years ended December 31, 2022, 2021 and 2020 (in thousands). Year Ended December 31, 2022 2021 2020 (in thousands) U.S. segment Kitchenware $ 402,869 $ 487,797 $ 426,883 Tableware 148,775 167,181 141,113 Home Solutions 117,535 115,655 115,543 Total U.S. segment 669,179 770,633 683,539 International segment 58,483 92,291 85,630 Total net sales $ 727,662 $ 862,924 $ 769,169 Year ended December 31, 2022 2021 2020 (in thousands) United States $ 640,021 $ 743,319 $ 658,285 United Kingdom 38,210 54,150 54,364 Rest of World 49,431 65,455 56,520 Total net sales $ 727,662 $ 862,924 $ 769,169 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
ACQUISITIONS | 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 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 consolidated statements of operations. The purchase price was allocated based on the Company’s final 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. The goodwill and intangible assets are included in the U.S. segment. The trade name intangible asset is amortized on a straight-line basis over its estimated useful life of 12 years (see NOTE 7 — GOODWILL AND INTANGIBLE ASSETS). 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. The consolidated statement of operations includes $16.9 million of net sales attributable to the S'well brand for the twelve months ended December 31, 2022. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating leases for corporate offices, distribution facilities, manufacturing plants, and certain vehicles. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. 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. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as increases in lease payments that do not depend on changes in index rates or payments based on usage, are not included in the ROU assets or liabilities. These are expensed as incurred and recorded as variable lease expense. ROU assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the net present value of fixed lease payments over the lease term. The Company’s lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. ROU assets also include any advance lease payments. As most of the Company’s operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The components of lease costs for the year ended December 31, 2022, 2021 and 2020 were as follows (in thousands): Year Ended December 31, 2022 2021 2020 Operating lease costs (1) : Fixed lease expense $ 17,855 $ 17,860 $ 18,181 Variable lease expense 4,698 $ 5,833 $ 3,798 Total $ 22,553 $ 23,693 $ 21,979 (1) Expenses are recorded within distribution expenses and selling, general and administrative expenses. Supplemental cash flow information for the year ended December 31, 2022, 2021 and 2020 were as follows (in thousands): Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 19,338 $ 19,154 $ 15,802 Total $ 19,338 $ 19,154 $ 15,802 Year Ended December 31, 2022 2021 2020 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,540 $ 1,299 $ — Total $ 2,540 $ 1,299 $ — Included in machinery, furniture and equipment as of December 31, 2022 and 2021 is $0.3 million, related to assets recorded under finance leases. Included in accumulated depreciation and amortization at December 31, 2022 and December 31, 2021 is $0.2 million related to assets recorded under finance leases. On January 20, 2023, the Company entered into the third amendment to the existing Medford operating lease. The amendment modified certain terms and conditions of the existing lease agreement, including, but not limited to, reduction in leased square footage, reduction in rent payment, and an extension of the lease term of 7 lease years. During the period ended December 31, 2020, in response to the COVID-19 pandemic, the Company negotiated COVID-19-related rent concessions for several of its leased properties. The majority of these rent concessions were in the form of deferred rent payments for one or more months. The Company applied the guidance issued in the FASB staff Q&A - Topic 842 and Topic 840: Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic, and elected to account for these rent concessions as if no changes to the lease were made and continued to recognize the straight-line lease expense. The COVID-19 related deferred rent payments as of December 31, 2020 were $1.0 million were deferred into fiscal year 2021. As of December 31, 2021, all deferred payments have been paid. The aggregate future lease payments for operating leases as of December 31, 2022 were as follows (in thousands): Operating 2023 $ 19,094 2024 18,571 2025 17,975 2026 17,265 2027 13,146 Thereafter 23,657 Total lease payments 109,708 Less: Interest (19,260) Present value of lease payments $ 90,448 Average lease terms and discount rates were as follows: December 31, 2022 December 31, 2021 Weighted-average remaining lease term (years) Operating leases 6.3 7.3 Weighted-average discount rate Operating leases 6.1 % 6.2 % |
SALE OF ACCOUNTS RECEIVABLE
SALE OF ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
SALE OF ACCOUNTS RECEIVABLE | SALE OF ACCOUNTS RECEIVABLE To improve its liquidity during seasonally high working capital periods, the Company has an uncommitted Receivables Purchase Agreement with HSBC Bank USA, as Purchaser (the “Receivables Purchase Agreement”). Under the Receivables Purchase Agreement, the Company may offer to sell certain eligible accounts receivables (the “Receivables”) to HSBC Bank USA, which may accept such offer, and purchase the offered Receivables. Under the Receivables Purchase Agreement, following each purchase of Receivables, the outstanding aggregate purchased Receivables shall not exceed $30.0 million. HSBC Bank USA will assume the credit risk of the Receivables purchased; and, the Company will continue to be responsible for all non-credit risk matters. The Company will service the Receivables, and as such servicer, collect and otherwise enforce the Receivables on behalf of HSBC Bank USA. The term of the agreement is for 364 days and automatically extends for annual successive terms unless terminated. Either party may terminate the agreement at any time upon 60 days prior written notice to the other party. Pursuant to this agreement, the Company sold $141.3 million and $150.7 million of Receivables during the years ended December 31, 2022 and 2021, respectively. At December 31, 2022 and 2021, $20.2 million and $28.8 million, respectively, of receivables sold are outstanding and are due to HSBC Bank USA from customers. A charge of $0.8 million and $0.4 million, respectively, related to the sale of the Receivables is included in selling, general and administrative expenses in the consolidated statements of operations for the years ended December 31, 2022 and 2021. |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY INVESTMENTS | EQUITY INVESTMENTS The Company owns 24.7% of the outstanding capital stock of 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 statement of operations. Accordingly, the Company has recorded its proportionate share of Vasconia’s net income (reduced for amortization expense related to the customer relationships acquired) for the years ended December 31, 2022, 2021 and 2020 in the accompanying 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 consolidated statements of operations for the year ended December 31, 2021. On July 29, 2021, the Company sold 2.2 million shares further reducing its ownership from approximately 27% to 24.7% 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, net of taxes, in the accompanying consolidated statements of operations for the year ended December 31, 2021. The Company continues to apply the equity method of accounting. The value of the Company’s investment balance has been translated from Mexican pesos (“MXN”) to U.S. dollars (“USD”) using the spot rate of M XN 19.47 an d MXN 20.46 at December 31, 2022 and 2021, respectively. The Company's proportionate share of Vasconia's net income (loss) has been translated from MXN to USD using the following exchange rates: Year Ended December 31, 2022 2021 2020 Average exchange rate (MXN to USD) 19.67 - 20.50 20.01 - 20.74 19.91 - 23.31 The effect of the translation of the Company’s investment, as well as the translation of Vasconia’s balance sheet, resulted in a decrease of the investment of $0.3 million during the year ended December 31, 2022 and an increase of the investment of $1.0 million during the year ended December 31, 2021. These translation effects are recorded in accumulated other comprehensive loss. The Company received cash dividends of $0.2 million and $0.1 million, from Vasconia during the years ended December 31, 2021 and 2020, respectively. There was no cash dividend received during the year ended December 31, 2022. The amounts due to and due from Vasconia as of December 31, 2022 and 2021 are as follows (in thousands): Vasconia due to and due from balances Balance Sheet Location December 31, 2022 December 31, 2021 Amounts due from Vasconia Prepaid expenses and other current assets $ 48 $ 80 Amounts due to Vasconia Accrued expenses and Accounts payable (16) (146) Summarized income statement information for the years ended December 31, 2022, 2021 and 2020, as well as summarized balance sheet information as of December 31, 2022 and 2021, for Vasconia, calculated in accordance with U.S. GAAP, in USD and MXN is as follows: Year Ended December 31, 2022 2021 2020 (in thousands) USD MXN USD MXN USD MXN Income Statement Net sales $ 240,910 $ 4,846,328 $ 240,186 $ 4,871,845 $ 156,391 $ 3,330,855 Gross profit 39,874 802,496 52,574 1,064,557 24,947 540,244 Loss (income) from operations (1,596) (30,323) 15,536 313,156 (102) 6,674 Net income (13,207) (262,251) 7,017 141,972 5,566 108,678 December 31, 2022 2021 (in thousands) USD MXN USD MXN Balance Sheet Current assets $ 129,449 $ 2,519,905 $ 127,544 $ 2,609,038 Non-current assets 144,356 2,810,082 123,938 2,535,273 Current liabilities 93,112 1,812,546 93,365 1,909,870 Non-current liabilities 95,065 1,850,568 57,753 1,181,398 The Company recorded equity in (losses) earnings of Vasconia, net of taxes, of $(3.3) million, $1.8 million and $1.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. The fair value (based on Level 1 inputs using the quoted stock price) of the Company’s investment in Vasconia declined during the third quarter of 2022. 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 as of September 30, 2022 to its fair value, and recognized the non-cash impairment charge within Equity in (losses) earnings, net of taxes, in the consolidated statement of operations. As of December 31, 2022, the fair value of the Company's investment in Vasconia was $15.0 million. The carrying value of the Company’s investment in Vasconia, after the recorded impairment, was $12.5 million. Lifetime Brands Do Brasil Participacoes Ltda., a 100% owned subsidiary of Lifetime Brands, Inc., was dissolved on May 5, 2020. The subsidiary held a note receivable relating to the 2016 sale of its 40% equity interest in GS International S/A (“GSI”), a wholesale distributor of branded housewares products in Brazil, which was accounted for as an equity method investment. The final installment due on the note receivable was received prior to dissolution of the subsidiary. Foreign currency translation losses of $0.2 million, which were previously recorded as a component of stockholder’s equity within accumulated other comprehensive loss, were recognized in earnings upon dissolution of this subsidiary during the year ended December 31, 2020. The Company included this loss within equity in earnings, net of taxes. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company’s intangible assets consist of the following (in thousands): Year Ended December 31, 2022 2021 Gross Accumulated Net Gross Impairment Accumulated Net Goodwill (1) $ 33,237 $ — $ 33,237 $ 30,271 $ — $ — $ 30,271 Indefinite -lived intangible assets: Trade names (1) 49,600 — 49,600 49,600 — — 49,600 Finite -lived intangible assets: Licenses 15,847 (11,654) 4,193 15,847 — (11,198) 4,649 Trade names (2) 54,785 (20,030) 34,755 51,856 (2,546) (23,829) 25,481 Customer relationships (2) 143,157 (53,586) 89,571 177,245 (11,766) (65,863) 99,616 Other (2) 5,856 (3,325) 2,531 6,566 (448) (3,057) 3,061 Total $ 302,482 $ (88,595) $ 213,887 $ 331,385 $ (14,760) $ (103,947) $ 212,678 (1) The gross and net value at December 31, 2022 and 2021 reflect a reduction of $91.7 million impairment charges on goodwill and $1.0 million charges on indefinite-lived intangible assets. (2) The gross value and accumulated amortization at December 31, 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 and a $6.5 million reduction in gross value for previous impairment charges on finite-lived intangible assets within the U.S. segment. A summary of the activities related to the Company’s intangible assets for the years ended December 31, 2022, 2021 and 2020 consists of the following (in thousands): Intangible Goodwill Total Intangible Goodwill and Intangible Assets, December 31, 2019 $ 231,100 $ 49,371 $ 280,471 Foreign currency translation adjustment 607 — 607 Amortization (16,953) — (16,953) Impairment of indefinite - lived intangible assets (1,000) — (1,000) Impairment of goodwill — (19,100) (19,100) Goodwill and Intangible Assets, December 31, 2020 213,754 30,271 244,025 Foreign currency translation adjustment (364) — (364) Amortization (16,223) — (16,223) Impairment of finite - lived intangible assets (14,760) — (14,760) 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 (227) — (227) Amortization (14,530) — (14,530) Goodwill and Intangible Assets, December 31, 2022 $ 180,650 $ 33,237 $ 213,887 The weighted-average amortization periods for the Company’s finite-lived intangible assets as of December 31, 2022 are as follows: Years Trade names 14 Licenses 33 Customer relationships 14 Other 10 Estimated amortization expense for each of the five succeeding fiscal years is as follows (in thousands): Year ending December 31, 2023 $ 14,701 2024 14,367 2025 14,116 2026 13,767 2027 13,057 Goodwill impairment test The Company reviews goodwill and other intangibles that have indefinite lives for impairment annually as of October 1st or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. For goodwill, impairment testing is based upon the best information available using a combination of the discounted cash flow method, a form of the income approach, and the guideline public company method, a form of the market approach. 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 or not its indefinite lived intangibles have been impaired and then performs quantitative tests if required. These tests can include the relief from royalty model or other valuation models. The significant assumptions used in the relief from royalty model are future net sales for the related brands, royalty rates and the cost of capital to determine the fair value of the indefinite lived intangibles. International Reporting Unit The carrying value of the goodwill for the International reporting unit was zero as of December 31, 2022 and 2021. U.S. Reporting Unit The Company performed its annual impairment assessment of its U.S. reporting unit as of October 1, 2022 by comparing the fair value of the reporting unit with its carrying value. The Company performed the analysis using a discounted cash flow and market multiple method. As of October 1, 2022, the fair value of the U.S. reporting unit exceeded the carrying value of goodwill by 10%. Management’s projections used to estimate the cash flows included organic net sales growth and net sales growth through new customer channels as well as continued operating efficiencies in future periods. Changes in any of the significant assumptions used in the valuation of the reporting unit could materially affect the expected cash flows, and such impacts could potentially result in a material non-cash impairment charge. As of December 31, 2022, the Company assessed the carrying value of goodwill and determined, based on qualitative factors, that no impairment indicators existed for goodwill. In the first quarter of 2020, as a result of the economic downturn caused by the COVID-19 pandemic, the Company performed an interim assessment of the goodwill for the U.S. reporting unit as of March 31, 2020, by comparing the fair value of the reporting unit with its carrying value. The Company performed the analysis using a discounted cash flow and market multiple method. Based upon the analysis performed, the Company recognized a non-cash goodwill impairment charge of $19.1 million during the first quarter of 2020. The goodwill impairment charge resulted from, among other factors, the uncertain market conditions arising from the COVID-19 pandemic, which impacted the Company's market capitalization, as well as a reduction of forecasted future cash flows associated with the effects of the COVID-19 pandemic. The fair value of the U.S. reporting unit was approximately 3.9% below its carrying value as of March 31, 2020. Annual indefinite-lived trade name impairment test The Company values its indefinite-lived trade names using a relief-from-royalty approach, which assumes the value of the trade name is the discounted cash flows of the amount that would be paid by a hypothetical market participant had they not owned the trade name and instead licensed the trade name from another company. The Company bypassed the optional qualitative impairment analysis for its indefinite-lived trade name assets annual October 1, 2022 impairment test. The Company completed the quantitative impairment analysis by comparing the fair value of the indefinite-lived trade names to their respective carrying value using a relief from royalty method. As of October 1, 2022, the fair value of the Company’s indefinite-lived trade names exceeded their respective carrying values by 12%. While the indefinite-lived trade names were not determined to be impaired, the indefinite-lived trade names are at risk of future impairment in the event the trade names do not perform as projected or if market factors utilized in the impairment analysis deteriorate, including an unfavorable change in long-term growth rates or the weighted average cost of capital. As of December 31, 2022, the Company assessed the carrying value of its indefinite-lived trade names and determined based on qualitative factors that no impairment existed. In the first quarter of 2020, as a result of the economic decline caused by the COVID-19 pandemic, the Company determined its indefinite-lived trade names had indicators for impairment. As a result, the Company bypassed the optional qualitative impairment analysis for its indefinite-lived trade names and performed an interim quantitative impairment analysis as of March 31, 2020, by comparing the fair value of the indefinite-lived trade names to their respective carrying values. As a result of the impairment testing performed in connection with the COVID-19 pandemic triggering event, the Company determined that certain of its indefinite-lived intangible assets in the U.S. segment were impaired. As a result, the Company recorded a $1.0 million non-cash impairment charge during the first quarter of 2020. Long-lived assets impairment test Due to the current operating results for the International segment as a result of low consumer confidence in the region, impairment indicators were identified for the International asset group. The Company tested the recoverability of the asset group, concluding it was not recoverable and performed an analysis of the fair value of the international long-lived assets. The Company tested the International segment's long-lived assets for impairment and concluded that the fair value exceeded the carrying value of the long-lived assets, concluding no impairment as of December 31, 2022. In the fourth quarter of 2021, due to lower than expected operating results for the International segment caused by continuing impacts of COVID-19 and the exit of the U.K. from the European Union, impairment indicators were identified for the International asset group. The Company tested the recoverability of the asset group, concluding it was not recoverable and performed an analysis of the fair value of the international long-lived assets. For the finite-lived intangible assets, the Company performed discounted cash flow analysis and recorded an impairment of $14.8 million within the International segment. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT On August 26, 2022, the Company entered into Amendment No. 2 (the “Amendment”) to 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. 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 Term Loan provides for a senior secured term loan credit facility in the original principal amount of $275.0 million, which matures on February 28, 2025. On December 29, 2022, the Company entered into Amendment No. 1 to the Term Loan, which replaces the LIBOR-based interest rates with SOFR-based interest rates and modifies the provisions for determining the alternative rate of interest upon the occurrence of certain events relating to the availability of interest rate benchmarks. The Term Loan 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 consolidated balance sheets. Additionally, the Term Loan 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, when the Company makes an Excess Cash Flow payment, the payment is first applied to satisfy the next eight 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 but limited to $220.0 million pursuant to the Term Loan. One or more tranches of additional term loans (the “Incremental Term Facilities”) may be added under the Term Loan 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, 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 but not to mature earlier than the maturity date of the then existing term loans. As of December 31, 2022 and 2021, the total availability under the ABL Agreement were as follows (in thousands): December 31, 2022 December 31, 2021 Maximum aggregate principal allowed $ 189,411 $ 150,000 Outstanding borrowings under the ABL Agreement (10,424) — Standby letters of credit (2,765) (3,659) Total availability under the ABL Agreement $ 176,222 $ 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 mean 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 consolidated balance sheets are presented as follows (in thousands): December 31, 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 (3,054) (3,054) Total Non-current portion of Term Loan facility $ 242,857 $ 241,873 As of December 31, 2022, there is no Excess Cash Flow Payment due for 2023. 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. 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 consists 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 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 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 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 0.5%, 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 1.5%. 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 December 31, 2022 was 3.43%. In addition, the Company paid a commitment fee of 0.25% to 0.375% on the unused portion of the ABL Agreement during the year ended December 31, 2022. 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 0.50% or (z) one-month Adjusted Term SOFR, but not less than 1.0%, plus 1.0%, plus a margin of 2.5% or (ii) SOFR 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 December 31, 2022 was 7.9%. 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 December 31, 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. The Company expects that it will continue to borrow, subject to availability, and repay funds under the ABL Agreement based on working capital and other corporate needs. Other Credit Agreements A subsidiary of the Company holds a credit facility (“HSBC Facility”) with HSBC Bank (China) Company Limited, Shanghai Branch (“HSBC”) for up to $10.0 million Chinese renminbi ($1.5 million). The HSBC Facility is subject to annual renewal and may be used to fund general working capital needs of the Company’s subsidiary, which is a trading company in China. Borrowings under the HSBC Facility were guaranteed by the Company and were granted at the sole discretion of HSBC. No borrowings were outstanding under the HSBC Facility at December 31, 2022 and 2021. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES Interest Rate Swap Agreements The Company's net total outstanding notional value of interest rate swaps was $50 million at December 31, 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 was $25.0 million at December 31, 2022. In June 2019, the Company entered into additional interest rate swap agreements, with an aggregate notional value of $25.0 million at December 31, 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 a 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 values of foreign exchange contracts at December 31, 2022 and 2021 was $6.3 million and $22.6 million, respectively. 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 changes to credit risk of derivative counterparties. The Company attempts to minimize these risks by primarily 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 currency markets and 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 December 31, 2022, the Company does 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 consolidated balance sheets are presented as follows (in thousands): December 31, Derivatives designated as hedging instruments Balance Sheet Location 2022 2021 Interest rate swaps Prepaid expenses and other current assets $ 122 $ — Interest rate swaps Accrued expenses — 288 Other long-term liabilities — 292 Foreign exchange contracts Prepaid expenses and other current assets — 461 Accrued expenses 260 — December 31, Derivatives not designated as hedging instruments Balance Sheet Location 2022 2021 Interest rate swaps Other assets $ 1,292 $ — Interest rate swaps Other long-term liabilities — 680 The fair value 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 value 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. The Company does not anticipate non-performance by any of its counterparties. The amounts of the gains and (losses), realized and unrealized, net of taxes, related to the Company’s derivative financial instruments designated as hedging instruments are recognized in other comprehensive (loss) income as follows (in thousands): Year ended December 31, Derivatives designated as hedging instruments 2022 2021 2020 Interest rate swaps $ 523 $ 718 $ (2,406) Foreign exchange contracts 322 485 117 Total $ 845 $ 1,203 $ (2,289) 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 year ended December 31, 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 year ended December 31, 2022, the Company reclassified $1.3 million of cash flow hedges in accumulated other comprehensive losses to earnings. This comprised of a charge of $0.3 million related to interest rate swaps recognized in interest expense and a gain of $1.6 million related to foreign exchange contracts recognized in cost of sales. At December 31, 2022, the estimated amount of existing net gains expected to be reclassified into earnings within the next 12 months was $0.8 million. During the year ended December 31, 2021, the Company reclassified $1.5 million of cash flow hedges in accumulated other comprehensive losses to earnings. This comprised of a charge of $0.9 million related to interest rate swaps recognized in interest expense and a loss of $0.6 million related to foreign exchange contracts recognized in cost of sales. The amounts of the gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments are recognized in earnings as follows (in thousands): Year Ended December 31, Derivatives not designated as hedging instruments Location of Gain or (Loss) 2022 2021 2020 Interest rate swaps Mark to market gain (loss) on interest rate derivatives $ 1,971 $ 1,062 $ (2,144) Interest expense (55) (458) (327) $ 1,916 $ 604 $ (2,471) |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK Cash dividends Dividends were declared in 2022 and 2021 as follows: Dividend per share Date declared Date of record Payment date $0.0425 March 9, 2021 May 3, 2021 May 17, 2021 $0.0425 June 24, 2021 August 2, 2021 August 16, 2021 $0.0425 August 3, 2021 November 1, 2021 November 15, 2021 $0.0425 November 2, 2021 January 31, 2022 February 14, 2022 $0.0425 March 8, 2022 May 2, 2022 May 16, 2022 $0.0425 June 23, 2022 August 1, 2022 August 15, 2022 $0.0425 August 2, 2022 November 1, 2022 November 15, 2022 $0.0425 November 1, 2022 February 1, 2023 February 15, 2023 On March 8, 2023, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on May 15, 2023 to shareholders of record on May 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 $10.0 million share repurchase program. The repurchase authorization permits the Company to effect repurchases from time to time through open market purchases and privately negotiated transactions. During the year ended December 31, 2022, the Company repurchased 597,195 shares for a total costs of $6.3 million, and thereafter retired the shares. No shares were repurchased during the years ended December 31, 2021 and 2020. Preferred stock The Company is authorized to issue 100 shares of Series A Preferred Stock and 2,000,000 shares of Series B Preferred Stock, none of which has been issued or is outstanding at December 31, 2022. Long-term incentive plan The Company’s Amended and Restated 2000 Long-Term Incentive Plan (the “Plan”) provides for the granting of awards of up to 8,217,500 shares of common stock. These shares of the Company’s common stock are available for grants to directors, officers, employees, consultants and service providers and affiliates in the form of stock options or other equity-based awards. The Plan authorizes the Board of Directors of the Company, or a duly appointed committee thereof, to issue incentive stock options, non-qualified options, restricted stock, performance-based awards and other stock-based awards. Options that have been granted under the Plan expire over a range of 5 years to 10 years from the date of grant and vest over a range of up to 4 years from the date of grant. Shares of restricted stock that have been granted under the Plan vest over a range of up to 4 years from the date of grant. Performance-based awards that have been granted under the Plan vest after 3 years based upon the attainment of specified performance goals. On June 23, 2022, the shareholders 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 December 31, 2022, there were 1,133,958 shares available for the grant of awards under the Plan. Stock options A summary of the Company’s stock option activity and related information for the three years ended December 31, 2022, is as follows: Options Weighted- Weighted- Aggregate Options outstanding at December 31, 2019 1,508,325 $ 13.43 Grants 37,500 6.36 Exercises (2,500) 10.79 Cancellations (14,313) 11.09 Expirations (242,112) 13.27 Options outstanding at December 31, 2020 1,286,900 13.28 Grants 48,000 14.18 Exercises (1) (236,325) 11.71 Expirations (4,000) 19.10 Options outstanding at December 31, 2021 1,094,575 13.64 Grants 56,000 11.45 Exercises (60,000) 11.64 Cancellations (11,375) 11.16 Expirations (13,450) 13.99 Options outstanding at December 31, 2022 1,065,750 13.66 4.4 $ 38 Options exercisable at December 31, 2022 957,125 $ 13.92 3.9 $ 19 (1) Includes the exercise of 2,000 options settled in cash in accordance with the Company’s Amended and Restated 2000 Long-Term Incentive Plan ("the Plan"). 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 exercisable in-the-money stock options on December 31, 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 December 31, 2022 and the exercise price. The total intrinsic value of those stock options that were exercised in the year ended December 31, 2022 was $0.1 million. The total intrinsic values of those stock options that were exercised in the year ended December 31, 2021 was $0.8 million and in the year ended December 31, 2020 was less than $0.1 million. The intrinsic value of a stock option that is exercised is calculated at the date of exercise. Total unrecognized stock option compensation expense at December 31, 2022, before the effect of income taxes, was $0.5 million and is expected to be recognized over a weighted-average period of 1.9 years. The Company values stock options using the Black-Scholes option valuation model. The Black-Scholes option valuation model, as well as other available models, was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. The Black-Scholes option valuation model requires the input of highly subjective assumptions including the expected stock price volatility and risk-free interest rate. Because the Company’s stock options have characteristics significantly different from those of traded options, changes in the subjective input assumptions can materially affect the fair value estimates of the Company’s stock options. The weighted-average per share grant date fair value of stock options granted during the years ended December 31, 2022, 2021 and 2020, was $5.44, $6.31 and $2.26, respectively. The fair values for these stock options were estimated at the dates of grant using the following weighted-average assumptions: 2022 2021 2020 Historical volatility 53 % 52 % 49 % Expected term (years) 6.3 6.3 6.3 Risk-free interest rate 3.15 % 1.08 % 0.45 % Expected dividend yield 1.48 % 1.20 % 2.67 % Restricted Stock A summary of the Company’s restricted stock activity and related information for the three years ended December 31, 2022 is as follows: Restricted Weighted- Non-vested restricted shares, December 31, 2019 593,341 $ 10.70 Grants 534,940 5.94 Vested (322,398) 10.64 Cancellations (10,296) 9.06 Non-vested restricted shares, December 31, 2020 795,587 7.54 Grants 220,658 14.27 Vested (586,244) 7.19 Cancellations (400) 11.42 Non-vested restricted shares, December 31, 2021 429,601 11.47 Grants 266,713 12.03 Vested (205,290) 11.46 Cancellations (6,881) 10.92 Non-vested restricted shares, December 31, 2022 484,143 $ 11.79 Total unrecognized compensation expense remaining (in thousands) $ 4,089 Weighted-average years expected to be recognized over 1.7 The total fair value of restricted stock that vested during the year ended December 31, 2022 was $2.4 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 Plan. A summary of the Company’s performance-based award activity and related information for the three years ended December 31, 2022 is as follows: Performance - based awards (1) Weighted- Non-vested performance-based awards, December 31, 2019 405,059 $ 12.43 Grants 106,275 6.36 Vested (62,215) 18.45 Cancellations (18,073) 15.49 Non-vested performance-based awards, December 31, 2020 431,046 9.94 Grants 176,915 14.18 Vested (150,273) 12.79 Cancellations (21,358) 12.76 Non-vested performance-based awards, December 31, 2021 436,330 10.54 Grants (2) 123,000 12.19 Achieved performance over target (3) 12,035 9.20 Vested (166,935) 9.20 Cancellations (4,128) 10.64 Non-vested performance-based awards, December 31, 2022 400,302 $ 11.56 Total unrecognized compensation expense remaining (in thousands) $ 798 Weighted-average years expected to be recognized over 1.0 (1) Represents the target number of shares to be issued for each performance-based award. (2) The performance metric for the performance-based awards granted in 2022 is not probable of achievement. No compensation expense was recorded in 2022. (3) 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 year ended December 31, 2022 was $2.0 million. On March 8, 2023, the Compensation Committee of the Board of Directors determined the performance goals set forth in the performance-based awards granted in 2020 were attained and 119,739 shares vested. 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 year ended December 31, 2022 is as follows: Cash-settled performance-based awards (1) Weighted- Non-vested cash-settled performance-based awards, January 1, 2022 — $ — Grants (2) 87,825 7.66 Cancellations (2,049) 10.61 Non-vested cash-settled performance-based awards, December 31, 2022 85,776 $ 7.59 Total unrecognized compensation expense remaining (in thousands) $ — Weighted-average years expected to be recognized over 0.0 (1) Represents the target number of units to be settled in cash. (2) The performance metric for the cash-settled performance-based awards granted in 2022 is not probable of achievement. No compensation expense was recorded in 2022. The Company recorded stock compensation expense as follows (in thousands): Year Ended December 31, Stock Compensation Expense Components 2022 2021 2020 Equity based stock option expense $ 275 $ 417 $ 570 Restricted and performance-based stock awards expense 3,586 4,787 5,346 Stock compensation expense for equity based awards $ 3,861 $ 5,204 $ 5,916 Liability based stock option expense (15) 13 35 Total Stock Compensation Expense $ 3,846 $ 5,217 $ 5,951 |
LOSS PER COMMON SHARE
LOSS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
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. 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 years ended December 31, 2022, 2021 and 2020, are as follows: 2022 2021 2020 (in thousands - except per share amounts) Net (loss) income – Basic and Diluted $ (6,166) $ 20,801 $ (3,007) Weighted-average shares outstanding – Basic 21,558 21,397 20,860 Effect of dilutive securities: Stock options and other stock awards — 640 — Weighted-average shares outstanding – Diluted 21,558 22,037 20,860 Basic (loss) income per common share $ (0.29) $ 0.97 $ (0.14) Diluted (loss) income per common share $ (0.29) $ 0.94 $ (0.14) Antidilutive shares (1) 1,681 380 2,167 (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 | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income before income taxes and equity in (losses) earnings are as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Domestic $ 20,796 $ 61,045 $ 18,012 Foreign (11,767) (24,665) (12,463) Total income before income taxes and equity in earnings $ 9,029 $ 36,380 $ 5,549 The provision for income taxes (before equity in (losses) earnings) consists of: Year Ended December 31, 2022 2021 2020 (in thousands) Current: Federal $ 6,890 $ 10,361 $ 8,522 State and local 1,888 3,558 2,540 Foreign 775 823 665 Deferred (3,825) 1,799 (1,861) Income tax provision $ 5,728 $ 16,541 $ 9,866 On March 27, 2020, H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into legislation which includes business tax provisions that impact taxes related to 2018, 2019 and 2020. Some of the significant tax law changes in accordance with the CARES Act are to increase the limitation on deductible business interest expense for 2019 and 2020, allow for the five-year carryback of net operating losses for 2018-2020, suspend the 80% limitation of taxable income for net operating loss carryforwards for 2018-2020, and accelerate the ability to claim refunds of Alternative Minimum Tax (“AMT”) credit carryforwards. The CARES Act remedied certain aspects of the Tax Act such as accelerated depreciation recovery for assets defined as qualified improvement property and carryback of operating losses to fiscal tax years. The latter required carryback of Filament losses to pre-acquisition fiscal years ended March 31, 2017 and March 31, 2016, which resulted in a tax expense that exceeded the benefit received from the various CARES Act provisions claimed by the Company. The Company received a tax refund of $2.3 million in the third quarter of 2020. Under the Tax Cuts and Jobs Act of 2017, research and development costs are no longer fully deductible and are required to be capitalized and amortized for U.S. tax purposes effective January 1, 2022. The mandatory capitalization requirement increases our deferred tax assets and income tax payable. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred income tax assets and (liabilities) are as follows: December 31, 2022 2021 (in thousands) Deferred income tax assets: Operating lease liabilities $ 22,814 $ 26,158 Stock options 1,679 1,825 Inventory 3,134 2,612 Operating loss carryforwards 17,450 15,684 Accounts receivable allowances 1,906 1,696 Accrued compensation 1,137 1,310 Deferred compensation 721 1,167 Environmental remediation accrual 1,432 127 Capitalized research and experimental expenditures 2,525 — Other 755 1,409 Total deferred income tax assets $ 53,553 $ 51,988 Deferred income tax liabilities: Operating lease right-of-use assets $ (18,872) $ (21,857) Fixed assets (1,735) (1,784) Intangibles (26,230) (26,117) Total deferred income tax liabilities (46,837) (49,758) Net deferred income tax asset 6,716 2,230 Valuation allowance (16,323) (15,072) Net deferred income tax liability $ (9,607) $ (12,842) The Company has capital loss carryforwards of $6.8 million in foreign jurisdictions and $0.9 million in the U.S. federal jurisdiction at December 31, 2022 that are offset entirely by a valuation allowance. The Company has net operating losses in foreign jurisdictions of $61.3 million and $12.1 million in state jurisdictions at December 31, 2022 that are offset entirely by a valuation allowance. The foreign net operating losses can be carried forward indefinitely. The state net operating losses begin to expire in 2026. The provision for income taxes (before equity in (losses) earnings) differs from the amounts computed by applying the applicable federal statutory rates as follows: Year Ended December 31, 2022 2021 2020 Federal income taxes at the statutory rate 21.0 % 21.0 % 21.0 % Increases (decreases): State and local income taxes, net of Federal income tax benefit 13.9 8.8 38.9 Foreign rate differences 6.9 (9.2) (49.8) Foreign withholding tax 6.1 1.2 5.9 Impairment of goodwill — — 65.5 Non-deductible expenses 7.1 3.3 16.4 Uncertain tax positions 1.2 0.1 4.0 Research and development credit (5.4) (1.1) (7.2) Federal return to provision (3.4) (0.4) 6.8 Loss of Filament pre-acquisition attributes due to CARES Act — — 8.6 Equity-based compensation 0.1 (0.6) 19.4 Valuation Allowance 15.9 22.4 48.3 Provision for income taxes 63.4 % 45.5 % 177.8 % The estimated values of the Company’s gross uncertain tax positions at December 31, 2022, 2021 and 2020 consist of the following: Year Ended December 31, 2022 2021 2020 (in thousands) Balance at January 1 $ (1,071) $ (1,648) $ (1,508) Additions based on tax positions related to the current year (79) (49) (149) Reductions for tax position of prior years 20 626 9 Balance at December 31 $ (1,130) $ (1,071) $ (1,648) The Company had approximately $0.4 million, net of federal and state tax benefit, accrued at December 31, 2022 and 2021, for the payment of interest and penalties. The Company’s policy for recording interest and penalties is to record such items as a component of the provision for income taxes. If the Company’s tax positions are ultimately sustained, the Company’s liability, including interest, would be reduced by $1.6 million, all of which would impact the Company’s tax provision. On a quarterly basis, the Company evaluates its tax positions and revises its estimates accordingly. The Company believes that it is reasonably possible that an immaterial amount of its tax positions will be resolved within the next 12 months. The Company is no longer subject to U.S. Federal income tax examinations for the years prior to 2019, except for examination in tax year 2017 related to Transition Tax. The Company has identified the following jurisdictions as “major” tax jurisdictions: U.S. Federal, California, Massachusetts, New Jersey, New York, and the United Kingdom. At December 31, 2022, the periods subject to examination by the Company’s major state jurisdictions, except for New York State, are generally for the years ended 2018 through 2021. In certain jurisdictions, Filament may have additional periods subject to examination. The Company's New York State tax returns for years 2015-2019 closed during the first quarter of 2022, with an immaterial adjustment. As of December 31, 2022, there are no material assessments in any given year. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Segment information 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. Year Ended December 31, 2022 2021 2020 (in thousands) Net sales: U.S. $ 669,179 $ 770,633 $ 683,539 International 58,483 92,291 85,630 Total net sales $ 727,662 $ 862,924 $ 769,169 Income from operations: U.S. (1)(2) $ 61,479 $ 100,336 $ 60,378 International (2)(3) (12,153) (25,051) (12,835) Unallocated corporate expenses (4) (25,063) (24,443) (22,573) Total income from operations $ 24,263 $ 50,842 $ 24,970 Depreciation and amortization: U.S. $ 18,279 $ 18,504 $ 20,018 International 1,257 4,016 4,646 Total depreciation and amortization $ 19,536 $ 22,520 $ 24,664 Capital expenditures: U.S. $ 2,088 $ 3,838 $ 1,467 International 887 148 615 Total capital expenditures $ 2,975 $ 3,986 $ 2,082 (1) In 2020, the Company recognized non-cash impairment charges of $20.1 million related to the U.S. segment as described in NOTE 7 — GOODWILL AND INTANGIBLE ASSETS. (2) In 2022, income from operations includes restructuring expenses of $0.4 million for the U.S. segment and $0.4 million for the International segment. In 2020, income from operations for the International segment includes $0.2 million of restructuring expenses, as described in NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES. (3) In 2021, the Company recognized non-cash impairment charges of $14.8 million related to the international segment as described in NOTE 7 — GOODWILL AND INTANGIBLE ASSETS. (4) The Company recognized expenses of $5.1 million and $0.5 million in 2022 and 2021, respectively, for estimated remediation costs related to the Wallace EPA Matter, as described in NOTE 14 — COMMITMENTS AND CONTINGENCIES. In 2022, the Company recognized $0.6 million of restructuring expenses within unallocated corporate expenses, as described in NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES. December 31, 2022 2021 (in thousands) Assets: U.S. $ 608,496 $ 706,000 International 93,794 95,092 Unallocated corporate 23,598 27,982 Total assets $ 725,888 $ 829,074 Year Ended December 31, 2022 2021 (in thousands) Goodwill: U.S. Beginning balance $ 30,271 $ 30,271 Acquisition activity 2,966 — Total goodwill $ 33,237 $ 30,271 Geographical information The following table sets forth long-lived assets by the major geographic locations: December, 2022 2021 (in thousands) Long-lived assets, excluding intangible assets, at period-end: United States $ 75,308 $ 81,659 Mexico 12,516 22,295 United Kingdom 22,845 26,429 Rest of World 1,076 940 Total $ 111,745 $ 131,323 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Royalties The Company has license agreements that require the payment of royalties on sales of licensed products which expire through 2048. The estimated future minimum royalties payable under these agreements are as follows (in thousands): Year ending December 31, 2023 $ 8,069 2024 8,000 2025 7,963 2026 8,211 2027 89 Thereafter 2,806 Total $ 35,138 Legal proceedings 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 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 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. 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 responded with a good faith offer to conduct additional testing and remedial design work for OU1. Since that time, WSPR has been actively participating in negotiations among the United States Government (the Department of Justice and the EPA) and other potentially responsible parties with respect to the remedial work at OU1. WSPR anticipates finalizing a Consent Decree for Remedial Design and Remedial Action at OU1 in the near term. 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 liability related to this matter. In the event of one or more adverse determinations, 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 protest 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 $1.1 million. In such event, it is reasonably possible that additional penalties could be assessed, depending upon the level of culpability found, of up to $2.2 million for negligence and up to $4.4 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. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Postemployment Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS 401(k) plan and other defined contribution plans The Company maintains a defined contribution retirement plan for eligible employees under Section 401(k) of the Internal Revenue Code. Participants can make voluntary contributions up to the Internal Revenue Service limit of $20,500 ($27,000 for employees 50 years old or over) for 2022. The Company suspended its matching contribution in 2009 as an expense savings measure. The Company’s United Kingdom-based subsidiary, Lifetime Brands Europe Limited, maintains a defined contribution pension plan. Retirement benefit obligations The Company assumed retirement benefit obligations, which are paid to certain former executives of a business acquired in 2006. The obligations under the agreements with these former executives are unfunded and amounted to $5.7 million at December 31, 2022 and $7.4 million at December 31, 2021. The discount rate used to calculate the retirement benefit obligations was 4.89% at December 31, 2022 and 2.46% at December 31, 2021. The retirement benefit obligations are included in accrued expenses and other long-term liabilities. The Company expects to recognize $0.1 million of actuarial losses included in accumulated other comprehensive loss in net periodic benefit cost in 2023. Expected benefit payments for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in thousands): Year ending December 31, 2023 $ 493 2024 469 2025 447 2026 426 2027 406 2027 through 2031 1,785 |
OTHER
OTHER | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER | OTHER Inventory The components of inventory are as follows: December 31, 2022 2021 (in thousands) Finished goods $ 213,450 $ 259,916 Work in process 70 159 Raw materials 8,689 10,441 Total $ 222,209 $ 270,516 Property and equipment Property and equipment (including finance leases) consist of: December 31, 2022 2021 (in thousands) Machinery, furniture and equipment $ 77,948 $ 77,005 Leasehold improvements 37,834 38,433 Computer hardware and software 38,120 37,544 Building and improvements 764 787 Construction in progress 1,249 715 Land 100 100 Total 156,015 154,584 Less: accumulated depreciation and amortization (137,993) (133,836) Total $ 18,022 $ 20,748 Depreciation and amortization expense of property and equipment for the years ended December 31, 2022, 2021 and 2020 was $5.0 million, $6.0 million and $7.4 million, respectively. Accrued expenses Accrued expenses consist of: December 31, 2022 2021 (in thousands) Customer allowances and rebates $ 31,281 $ 36,290 Other non-income tax liabilities 10,054 7,496 Compensation and benefits 9,789 21,258 Vendor invoices 6,930 16,082 Freight 6,869 16,110 Professional fees 2,743 2,954 Royalties 2,408 4,406 Commissions 656 813 Restructuring 986 — Wallace facility remediation 500 — Interest 136 402 Other 5,250 6,930 Total $ 77,602 $ 112,741 Other long-term liabilities Other long-term liabilities consist of: December 31, 2022 2021 (in thousands) Retirement benefit obligations $ 5,178 $ 6,918 Wallace facility remediation 5,140 — Other non-income tax liabilities 3,037 2,927 Unearned revenue 890 1,159 Contingent consideration 650 — Derivative financial instruments — 972 Other long-term obligations 100 140 Total $ 14,995 $ 12,116 Supplemental disclosure of cash flow information Year Ended December 31, 2022 2021 2020 (in thousands) Cash paid for interest $ 15,421 $ 13,702 $ 15,476 Cash paid for taxes, net of refunds 9,757 19,012 5,161 Non-cash investing activities: Translation loss recognized on change in Vasconia ownership — 3,404 — Non-cash gain on dilution of Vasconia ownership — (1,732) — Components of accumulated other comprehensive loss, net Year Ended December 31, 2022 2021 2020 (in thousands) Accumulated translation adjustment: Balance at beginning of year $ (31,752) $ (35,846) $ (34,019) Translation adjustment during period (4,320) 690 (2,062) Amount reclassified from accumulated other comprehensive loss (1) — 3,404 235 Translation Adjustment $ (4,320) $ 4,094 $ (1,827) Balance at end of year $ (36,072) $ (31,752) $ (35,846) Accumulated deferred gains (losses) on cash flow hedges: Balance at beginning of year $ 78 $ (1,125) $ 1,164 Change in unrealized gains (losses) 2,126 (311) (3,273) Amounts reclassified from accumulated other comprehensive loss: (2) Settlement of cash flow hedges (1,281) 1,514 984 Net change in cash flow hedges, net of taxes of $(190), $(246) and $803 $ 845 $ 1,203 $ (2,289) Balance at end of year $ 923 $ 78 $ (1,125) Accumulated effect of retirement benefit obligations: Balance at beginning of year $ (1,875) $ (2,201) $ (1,600) Net income (loss) arising from retirement benefit obligations, net of tax of $(359), $(64) and $259 1,054 191 (680) Amount reclassified from accumulated other comprehensive loss: (3) Amortization of loss, net of tax of $(39), $(45) and $(52) 116 135 79 Net effects of retirement benefit obligations $ 1,170 $ 326 $ (601) Balance at end of year $ (705) $ (1,875) $ (2,201) Total accumulated other comprehensive loss at end of period $ (35,854) $ (33,549) $ (39,172) (1) Amount is recorded in equity in (losses) earnings on the consolidated statements of operations. (2) Amounts are recorded in interest expense and cost of goods sold on the consolidated statements of operations. (3) Amount is recorded in selling, general and administrative expenses on the consolidated statements of operations. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | LIFETIME BRANDS, INC. SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (in thousands) COL. A COL. B COL. C COL. D COL. E Description Balance at Charged to Deductions Balance at Year ended December 31, 2022 Deducted from asset accounts: Allowance for doubtful accounts $ 4,656 $ 662 $ (123) (a) $ 5,195 Reserve for sales returns and allowances 11,888 5,961 (c) (8,438) (b) 9,411 $ 16,544 $ 6,623 $ (8,561) $ 14,606 Year ended December 31, 2021 Deducted from asset accounts: Allowance for doubtful accounts $ 4,624 $ 367 $ (335) (a) $ 4,656 Reserve for sales returns and allowances 12,389 8,716 (c) (9,217) (b) 11,888 $ 17,013 $ 9,083 $ (9,552) $ 16,544 Year ended December 31, 2020 Deducted from asset accounts: Allowance for doubtful accounts $ 1,333 $ 4,512 $ (1,221) (a) $ 4,624 Reserve for sales returns and allowances 8,348 11,280 (c) (7,239) (b) 12,389 $ 9,681 $ 15,792 $ (8,460) $ 17,013 (a) Uncollectible accounts written off, net of recoveries. (b) Allowances granted. (c) Charged to net sales. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information and with the instructions to Form 10-K. The accompanying consolidated financial statements include estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U.S. GAAP. The most significant of these estimates and assumptions relate to revenue recognition, allowances for doubtful accounts, reserves for sales returns and allowances and customer chargebacks, inventory mark-down provisions, impairment of goodwill, tangible and intangible assets, stock-based compensation expense, estimates for unpaid healthcare claims, derivative valuations, accruals related to the Company’s tax positions and tax valuation allowances. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. |
Principles of consolidation | Principles of consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Risk and uncertainties | Risk and uncertainties The Company’s current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from expectations, which could materially affect the Company’s results of operations and financial position. |
Foreign currency | Foreign currencyForeign currency denominated assets and liabilities are translated into U.S. dollars at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars at average exchange rates for the relevant period. Income and losses resulting from translation are recorded as a component of accumulated other comprehensive income (loss). |
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 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. Freight-out expenses were $17.4 million, $19.2 million and $15.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. Handling costs of products sold are included in cost of sales. |
Advertising expenses | Advertising expenses Advertising expenses are expensed as incurred and are included in selling, general and administrative expenses. Advertising expenses were $6.8 million, $4.4 million and $3.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Accounts receivable | Accounts receivable The Company periodically reviews the collectability of its accounts receivable and establishes allowances for estimated losses that could result from the inability of its customers to make required payments, taking into consideration customer credit history and financial condition, industry and market segment information, credit reports, and economic trends and conditions such as the impact 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. The sales of accounts receivable, under the Company’s Receivable Purchase Agreement with HSBC, are reflected as a reduction of accounts receivable in the Company’s consolidated balance sheet at the time of sale and any related expense is included in selling, general and administrative expenses in the Company’s consolidated statements of operations. |
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. |
Property and equipment | Property and equipment Property and equipment is stated at cost. Equipment under finance leases is recorded at the present value of the total minimum lease payments. Property and equipment, other than leasehold improvements and equipment under finance leases, are depreciated using the straight-line method over the estimated useful lives of the assets. Buildings are depreciated over 30 years, machinery and equipment and computer hardware and software are depreciated over periods ranging from 3 years to 10 years. Leasehold improvements are amortized over the term of the lease or the estimated useful lives of the improvements, whichever is shorter. Equipment under finance |
Cash equivalents | Cash equivalentsThe Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. |
Concentration of credit risk | Concentration of credit risk The Company’s cash and cash equivalents are potentially subject to concentration of credit risk. The Company maintains cash with several financial institutions that, in some cases, is in excess of Federal Deposit Insurance Corporation insurance limits. Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of entities comprising the Company’s customer base. During the years ended December 31, 2022, 2021 and 2020, Wal-Mart Stores, Inc., including Sam’s Club and, in the U.K., Asda Superstore, (“Walmart”), accounted for 19%, 18% and 20% of consolidated net sales, respectively. During the years ended December 31, 2022, 2021 and 2020, sales to Costco Wholesale Corporation (“Costco”) accounted for 13%, 12%, and 11% of consolidated net sales. During the year ended December 31, 2022, 2021 and 2020, Amazon.com Inc., (“Amazon”), accounted for 11%, 12% and 10% of consolidated net sales. Sales to Walmart, Costco and Amazon are included in the Company's U.S. and International segments. No other customers accounted for 10% or more of the Company’s sales during these periods. |
Fair value measurements | Fair value measurements Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, provides enhanced guidance for using fair value to measure assets and liabilities and establishes a common definition of fair value, provides a framework for measuring fair value under U.S. GAAP and expands disclosure requirements about fair value measurements. Fair value measurements included in the Company’s consolidated financial statements relate to the Company’s annual goodwill and other intangible asset impairment tests and derivatives, described in NOTE 7 — GOODWILL AND INTANGIBLE ASSETS and NOTE 9 — DERIVATIVES, respectively. |
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 approximate fair value since such borrowings bear interest at variable market rates. |
Derivatives | Derivatives The Company accounts for derivative instruments in accordance with ASC Topic 815, Derivatives and Hedging. 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 change in the fair value of hedges is included in accumulated other comprehensive loss and is subsequently recognized in the Company’s 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 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 FASB's 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 not considered to be impaired. 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. See NOTE 7 — GOODWILL AND INTANGIBLE ASSETS for further discussion regarding goodwill impairment. 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. See NOTE 7 — GOODWILL AND INTANGIBLE ASSETS for further discussion regarding impairment of indefinite lived intangibles. 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 7 — GOODWILL AND INTANGIBLE ASSETS for further discussion regarding impairment of long-lived assets. |
Income taxes | Income taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company accounts for foreign income taxes based upon anticipated reinvestment of profits into respective foreign tax jurisdictions. The Company applies the authoritative guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the Company’s financial statements . In accordance with this guidance, tax positions must meet a more-likely-than-not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position. A valuation allowance is required to be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. |
Share-based compensation | Share-based compensation The Company accounts for its share-based compensation arrangements in accordance with ASC Topic 718, Compensation: Stock-based Compensation, which requires the measurement of compensation expense for all share-based compensation granted to employees and non-employee directors at fair value on the date of grant and recognition of compensation expense over the related service period. Forfeitures are accounted for as they occur. The Company uses the Black-Scholes option valuation model to estimate the fair value of its stock options. The Black-Scholes option valuation model requires the input of subjective assumptions including the expected stock price volatility of the Company’s common stock and the risk-free interest rate. Changes in these subjective input assumptions can materially affect the fair value estimate of the Company’s stock options on the date of the option grant. Performance share awards are initially valued at the Company’s closing stock price on the date of grant. 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, as determined by the Compensation Committee of the Board of Directors, by the end of the performance period. Compensation expense for performance 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 performance share awards vest at the end of a three year period, as determined by the Compensation Committee. The Company bases the estimated fair value of restricted stock awards on the date of grant. The estimated fair value is determined based on the closing price of the Company’s common stock on the date of grant multiplied by the number of shares awarded. Compensation expense is recognized on a straight-line basis over the vesting period. 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. 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 accrued expenses and other long-term liabilities in the Company's 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. |
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 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 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 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 12 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. |
Restructuring expenses | Restructuring expenses Costs associated with restructuring activities are recorded at fair value when a liability has been incurred. A liability has been incurred at the communication date for severance. Charges associated with lease terminations, related to restructuring activities, are recognized at the effective date of the lease modification. In 2022, the Company's international segment incurred $0.4 million of restructuring expenses related to severance associated with the reorganization of the International segment's workforce. The reorganization was the result of the Company’s efforts to realign the management and operating structure of the European business in response to changing market conditions. The Company expects annual savings of $2.3 million associated with the reorganization. In 2022, the Company’s U.S. segment accrued $0.4 million related to severance associated with the reorganization of the U.S. segment’s sales management structure. The Company accrued $0.6 million of unallocated expense related to the termination payment with its Executive Chairman, Jeffrey Siegel. On November 1, 2022, the Company entered into a transition agreement with Jeffrey Siegel, which provides for termination of his employment with the Company, effective March 31, 2023. The transition agreement amends Mr. Siegel’s employment agreement which was to expire on December 31, 2022. The employment agreement provides for a one-time payment which will be paid upon the expiration of the transition agreement. The Company estimates the one-time payment to be approximately $1.4 million, of which $0.6 million was accrued as a restructuring expense in 2022. The remaining $0.8 million is expected to be recorded over the remaining employment period. The Company expects annual savings of $1.3 million due to these actions. |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various claims and contingencies related to lawsuits, certain taxes and environmental matters, as well as commitments under contractual and other commercial obligations. The Company recognizes liabilities for contingencies and commitments when a loss is probable and estimable. |
Adopted Accounting Pronouncements | Adopted 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 consolidated financial statements. In connection with the Amendment No.1 of the Term Loan, effective December 29, 2022, the Company adopted ASU 2020-04 and 2022-06, 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 may be applied to contract modifications and hedging relationships as of any date from March 12, 2020 but no later than December 31, 2024 and should be applied on a prospective basis. The Company applied available practical expedients under Topic 848 to account for modifications, changes in critical terms, and updates to the designated hedged risks as qualifying changes have been made to applicable debt modifications as if they were not substantial. Application of these practical expedients allowed us to maintain hedge accounting for our interest rate swap contracts. The adoption did not have a material impact on the Company's 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. |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Company's Revenue Disaggregated by Geographic Region and Revenue | The following tables present the Company’s net sales disaggregated by segment, product category and geographic region for the years ended December 31, 2022, 2021 and 2020 (in thousands). Year Ended December 31, 2022 2021 2020 (in thousands) U.S. segment Kitchenware $ 402,869 $ 487,797 $ 426,883 Tableware 148,775 167,181 141,113 Home Solutions 117,535 115,655 115,543 Total U.S. segment 669,179 770,633 683,539 International segment 58,483 92,291 85,630 Total net sales $ 727,662 $ 862,924 $ 769,169 Year ended December 31, 2022 2021 2020 (in thousands) United States $ 640,021 $ 743,319 $ 658,285 United Kingdom 38,210 54,150 54,364 Rest of World 49,431 65,455 56,520 Total net sales $ 727,662 $ 862,924 $ 769,169 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | The purchase price was comprised of the following (in thousands): Cash paid $ 17,956 Value of contingent consideration 650 Total purchase price $ 18,606 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | 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 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost | The components of lease costs for the year ended December 31, 2022, 2021 and 2020 were as follows (in thousands): Year Ended December 31, 2022 2021 2020 Operating lease costs (1) : Fixed lease expense $ 17,855 $ 17,860 $ 18,181 Variable lease expense 4,698 $ 5,833 $ 3,798 Total $ 22,553 $ 23,693 $ 21,979 |
Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information for the year ended December 31, 2022, 2021 and 2020 were as follows (in thousands): Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 19,338 $ 19,154 $ 15,802 Total $ 19,338 $ 19,154 $ 15,802 Year Ended December 31, 2022 2021 2020 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,540 $ 1,299 $ — Total $ 2,540 $ 1,299 $ — |
Lessee, Operating Lease, Liability, Maturity | The aggregate future lease payments for operating leases as of December 31, 2022 were as follows (in thousands): Operating 2023 $ 19,094 2024 18,571 2025 17,975 2026 17,265 2027 13,146 Thereafter 23,657 Total lease payments 109,708 Less: Interest (19,260) Present value of lease payments $ 90,448 |
Schedule Of Average Lease Terms And Discount Rates | Average lease terms and discount rates were as follows: December 31, 2022 December 31, 2021 Weighted-average remaining lease term (years) Operating leases 6.3 7.3 Weighted-average discount rate Operating leases 6.1 % 6.2 % |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments Summary of Exchange Rate Translation | The Company's proportionate share of Vasconia's net income (loss) has been translated from MXN to USD using the following exchange rates: Year Ended December 31, 2022 2021 2020 Average exchange rate (MXN to USD) 19.67 - 20.50 20.01 - 20.74 19.91 - 23.31 |
Equity Method Investments Schedule of Amounts Due to and Due from Related Parties Current | The amounts due to and due from Vasconia as of December 31, 2022 and 2021 are as follows (in thousands): Vasconia due to and due from balances Balance Sheet Location December 31, 2022 December 31, 2021 Amounts due from Vasconia Prepaid expenses and other current assets $ 48 $ 80 Amounts due to Vasconia Accrued expenses and Accounts payable (16) (146) |
Summarized Income Statement Information for Vasconia in USD and MXN | Summarized income statement information for the years ended December 31, 2022, 2021 and 2020, as well as summarized balance sheet information as of December 31, 2022 and 2021, for Vasconia, calculated in accordance with U.S. GAAP, in USD and MXN is as follows: Year Ended December 31, 2022 2021 2020 (in thousands) USD MXN USD MXN USD MXN Income Statement Net sales $ 240,910 $ 4,846,328 $ 240,186 $ 4,871,845 $ 156,391 $ 3,330,855 Gross profit 39,874 802,496 52,574 1,064,557 24,947 540,244 Loss (income) from operations (1,596) (30,323) 15,536 313,156 (102) 6,674 Net income (13,207) (262,251) 7,017 141,972 5,566 108,678 |
Summarized Balance Sheet Information for Vasconia in USD and MXN | December 31, 2022 2021 (in thousands) USD MXN USD MXN Balance Sheet Current assets $ 129,449 $ 2,519,905 $ 127,544 $ 2,609,038 Non-current assets 144,356 2,810,082 123,938 2,535,273 Current liabilities 93,112 1,812,546 93,365 1,909,870 Non-current liabilities 95,065 1,850,568 57,753 1,181,398 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets Included in Wholesale Segment | The Company’s intangible assets consist of the following (in thousands): Year Ended December 31, 2022 2021 Gross Accumulated Net Gross Impairment Accumulated Net Goodwill (1) $ 33,237 $ — $ 33,237 $ 30,271 $ — $ — $ 30,271 Indefinite -lived intangible assets: Trade names (1) 49,600 — 49,600 49,600 — — 49,600 Finite -lived intangible assets: Licenses 15,847 (11,654) 4,193 15,847 — (11,198) 4,649 Trade names (2) 54,785 (20,030) 34,755 51,856 (2,546) (23,829) 25,481 Customer relationships (2) 143,157 (53,586) 89,571 177,245 (11,766) (65,863) 99,616 Other (2) 5,856 (3,325) 2,531 6,566 (448) (3,057) 3,061 Total $ 302,482 $ (88,595) $ 213,887 $ 331,385 $ (14,760) $ (103,947) $ 212,678 (1) The gross and net value at December 31, 2022 and 2021 reflect a reduction of $91.7 million impairment charges on goodwill and $1.0 million charges on indefinite-lived intangible assets. |
Summary of Activities Relating to Intangible Assets | A summary of the activities related to the Company’s intangible assets for the years ended December 31, 2022, 2021 and 2020 consists of the following (in thousands): Intangible Goodwill Total Intangible Goodwill and Intangible Assets, December 31, 2019 $ 231,100 $ 49,371 $ 280,471 Foreign currency translation adjustment 607 — 607 Amortization (16,953) — (16,953) Impairment of indefinite - lived intangible assets (1,000) — (1,000) Impairment of goodwill — (19,100) (19,100) Goodwill and Intangible Assets, December 31, 2020 213,754 30,271 244,025 Foreign currency translation adjustment (364) — (364) Amortization (16,223) — (16,223) Impairment of finite - lived intangible assets (14,760) — (14,760) 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 (227) — (227) Amortization (14,530) — (14,530) Goodwill and Intangible Assets, December 31, 2022 $ 180,650 $ 33,237 $ 213,887 |
Weighted Average Amortization Periods for Finite Lived Intangible Assets | The weighted-average amortization periods for the Company’s finite-lived intangible assets as of December 31, 2022 are as follows: Years Trade names 14 Licenses 33 Customer relationships 14 Other 10 |
Estimated Amortization Expense | Estimated amortization expense for each of the five succeeding fiscal years is as follows (in thousands): Year ending December 31, 2023 $ 14,701 2024 14,367 2025 14,116 2026 13,767 2027 13,057 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | As of December 31, 2022 and 2021, the total availability under the ABL Agreement were as follows (in thousands): December 31, 2022 December 31, 2021 Maximum aggregate principal allowed $ 189,411 $ 150,000 Outstanding borrowings under the ABL Agreement (10,424) — Standby letters of credit (2,765) (3,659) Total availability under the ABL Agreement $ 176,222 $ 146,341 |
Schedule of Long-term Debt Instruments | The current and non-current portions of the Company’s Term Loan facility included in the consolidated balance sheets are presented as follows (in thousands): December 31, 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 (3,054) (3,054) Total Non-current portion of Term Loan facility $ 242,857 $ 241,873 As of December 31, 2022, there is no Excess Cash Flow Payment due for 2023. 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. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 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 consolidated balance sheets are presented as follows (in thousands): December 31, Derivatives designated as hedging instruments Balance Sheet Location 2022 2021 Interest rate swaps Prepaid expenses and other current assets $ 122 $ — Interest rate swaps Accrued expenses — 288 Other long-term liabilities — 292 Foreign exchange contracts Prepaid expenses and other current assets — 461 Accrued expenses 260 — December 31, Derivatives not designated as hedging instruments Balance Sheet Location 2022 2021 Interest rate swaps Other assets $ 1,292 $ — Interest rate swaps Other long-term liabilities — 680 |
Gains and Losses Related to Derivative Financial Instruments Not Designated as Hedging Instruments | The amounts of the gains and (losses), realized and unrealized, net of taxes, related to the Company’s derivative financial instruments designated as hedging instruments are recognized in other comprehensive (loss) income as follows (in thousands): Year ended December 31, Derivatives designated as hedging instruments 2022 2021 2020 Interest rate swaps $ 523 $ 718 $ (2,406) Foreign exchange contracts 322 485 117 Total $ 845 $ 1,203 $ (2,289) |
Derivatives Not Designated as Hedging Instruments | The amounts of the gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments are recognized in earnings as follows (in thousands): Year Ended December 31, Derivatives not designated as hedging instruments Location of Gain or (Loss) 2022 2021 2020 Interest rate swaps Mark to market gain (loss) on interest rate derivatives $ 1,971 $ 1,062 $ (2,144) Interest expense (55) (458) (327) $ 1,916 $ 604 $ (2,471) |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Cash Dividends Declared | Dividends were declared in 2022 and 2021 as follows: Dividend per share Date declared Date of record Payment date $0.0425 March 9, 2021 May 3, 2021 May 17, 2021 $0.0425 June 24, 2021 August 2, 2021 August 16, 2021 $0.0425 August 3, 2021 November 1, 2021 November 15, 2021 $0.0425 November 2, 2021 January 31, 2022 February 14, 2022 $0.0425 March 8, 2022 May 2, 2022 May 16, 2022 $0.0425 June 23, 2022 August 1, 2022 August 15, 2022 $0.0425 August 2, 2022 November 1, 2022 November 15, 2022 $0.0425 November 1, 2022 February 1, 2023 February 15, 2023 |
Summary of Stock Option Activity and Related Information | A summary of the Company’s stock option activity and related information for the three years ended December 31, 2022, is as follows: Options Weighted- Weighted- Aggregate Options outstanding at December 31, 2019 1,508,325 $ 13.43 Grants 37,500 6.36 Exercises (2,500) 10.79 Cancellations (14,313) 11.09 Expirations (242,112) 13.27 Options outstanding at December 31, 2020 1,286,900 13.28 Grants 48,000 14.18 Exercises (1) (236,325) 11.71 Expirations (4,000) 19.10 Options outstanding at December 31, 2021 1,094,575 13.64 Grants 56,000 11.45 Exercises (60,000) 11.64 Cancellations (11,375) 11.16 Expirations (13,450) 13.99 Options outstanding at December 31, 2022 1,065,750 13.66 4.4 $ 38 Options exercisable at December 31, 2022 957,125 $ 13.92 3.9 $ 19 |
Fair Value Stock Options at Grant Date using Weighted Average Assumption | The fair values for these stock options were estimated at the dates of grant using the following weighted-average assumptions: 2022 2021 2020 Historical volatility 53 % 52 % 49 % Expected term (years) 6.3 6.3 6.3 Risk-free interest rate 3.15 % 1.08 % 0.45 % Expected dividend yield 1.48 % 1.20 % 2.67 % |
Summary of Restricted Stock Activity | A summary of the Company’s restricted stock activity and related information for the three years ended December 31, 2022 is as follows: Restricted Weighted- Non-vested restricted shares, December 31, 2019 593,341 $ 10.70 Grants 534,940 5.94 Vested (322,398) 10.64 Cancellations (10,296) 9.06 Non-vested restricted shares, December 31, 2020 795,587 7.54 Grants 220,658 14.27 Vested (586,244) 7.19 Cancellations (400) 11.42 Non-vested restricted shares, December 31, 2021 429,601 11.47 Grants 266,713 12.03 Vested (205,290) 11.46 Cancellations (6,881) 10.92 Non-vested restricted shares, December 31, 2022 484,143 $ 11.79 Total unrecognized compensation expense remaining (in thousands) $ 4,089 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 three years ended December 31, 2022 is as follows: Performance - based awards (1) Weighted- Non-vested performance-based awards, December 31, 2019 405,059 $ 12.43 Grants 106,275 6.36 Vested (62,215) 18.45 Cancellations (18,073) 15.49 Non-vested performance-based awards, December 31, 2020 431,046 9.94 Grants 176,915 14.18 Vested (150,273) 12.79 Cancellations (21,358) 12.76 Non-vested performance-based awards, December 31, 2021 436,330 10.54 Grants (2) 123,000 12.19 Achieved performance over target (3) 12,035 9.20 Vested (166,935) 9.20 Cancellations (4,128) 10.64 Non-vested performance-based awards, December 31, 2022 400,302 $ 11.56 Total unrecognized compensation expense remaining (in thousands) $ 798 Weighted-average years expected to be recognized over 1.0 (1) Represents the target number of shares to be issued for each performance-based award. (2) The performance metric for the performance-based awards granted in 2022 is not probable of achievement. No compensation expense was recorded in 2022. |
Share-based Payment Arrangement, Cash Settled Performance Shares, Activity | A summary of the Company’s cash-settled performance-based awards activity and related information for the year ended December 31, 2022 is as follows: Cash-settled performance-based awards (1) Weighted- Non-vested cash-settled performance-based awards, January 1, 2022 — $ — Grants (2) 87,825 7.66 Cancellations (2,049) 10.61 Non-vested cash-settled performance-based awards, December 31, 2022 85,776 $ 7.59 Total unrecognized compensation expense remaining (in thousands) $ — Weighted-average years expected to be recognized over 0.0 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The Company recorded stock compensation expense as follows (in thousands): Year Ended December 31, Stock Compensation Expense Components 2022 2021 2020 Equity based stock option expense $ 275 $ 417 $ 570 Restricted and performance-based stock awards expense 3,586 4,787 5,346 Stock compensation expense for equity based awards $ 3,861 $ 5,204 $ 5,916 Liability based stock option expense (15) 13 35 Total Stock Compensation Expense $ 3,846 $ 5,217 $ 5,951 |
LOSS PER COMMON SHARE (Tables)
LOSS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Calculations of Basic and Diluted Income per Common Share | The calculations of basic and diluted (loss) income per common share for the years ended December 31, 2022, 2021 and 2020, are as follows: 2022 2021 2020 (in thousands - except per share amounts) Net (loss) income – Basic and Diluted $ (6,166) $ 20,801 $ (3,007) Weighted-average shares outstanding – Basic 21,558 21,397 20,860 Effect of dilutive securities: Stock options and other stock awards — 640 — Weighted-average shares outstanding – Diluted 21,558 22,037 20,860 Basic (loss) income per common share $ (0.29) $ 0.97 $ (0.14) Diluted (loss) income per common share $ (0.29) $ 0.94 $ (0.14) Antidilutive shares (1) 1,681 380 2,167 (1) Stock options and other stock awards that have been excluded from the denominator as their inclusion would have been anti-dilutive. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income before Income Taxes | The components of income before income taxes and equity in (losses) earnings are as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Domestic $ 20,796 $ 61,045 $ 18,012 Foreign (11,767) (24,665) (12,463) Total income before income taxes and equity in earnings $ 9,029 $ 36,380 $ 5,549 |
Provision for Income Taxes | The provision for income taxes (before equity in (losses) earnings) consists of: Year Ended December 31, 2022 2021 2020 (in thousands) Current: Federal $ 6,890 $ 10,361 $ 8,522 State and local 1,888 3,558 2,540 Foreign 775 823 665 Deferred (3,825) 1,799 (1,861) Income tax provision $ 5,728 $ 16,541 $ 9,866 |
Significant Components of Net Deferred Income Tax Asset (Liability) | Significant components of the Company’s deferred income tax assets and (liabilities) are as follows: December 31, 2022 2021 (in thousands) Deferred income tax assets: Operating lease liabilities $ 22,814 $ 26,158 Stock options 1,679 1,825 Inventory 3,134 2,612 Operating loss carryforwards 17,450 15,684 Accounts receivable allowances 1,906 1,696 Accrued compensation 1,137 1,310 Deferred compensation 721 1,167 Environmental remediation accrual 1,432 127 Capitalized research and experimental expenditures 2,525 — Other 755 1,409 Total deferred income tax assets $ 53,553 $ 51,988 Deferred income tax liabilities: Operating lease right-of-use assets $ (18,872) $ (21,857) Fixed assets (1,735) (1,784) Intangibles (26,230) (26,117) Total deferred income tax liabilities (46,837) (49,758) Net deferred income tax asset 6,716 2,230 Valuation allowance (16,323) (15,072) Net deferred income tax liability $ (9,607) $ (12,842) |
Difference between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Rates | The provision for income taxes (before equity in (losses) earnings) differs from the amounts computed by applying the applicable federal statutory rates as follows: Year Ended December 31, 2022 2021 2020 Federal income taxes at the statutory rate 21.0 % 21.0 % 21.0 % Increases (decreases): State and local income taxes, net of Federal income tax benefit 13.9 8.8 38.9 Foreign rate differences 6.9 (9.2) (49.8) Foreign withholding tax 6.1 1.2 5.9 Impairment of goodwill — — 65.5 Non-deductible expenses 7.1 3.3 16.4 Uncertain tax positions 1.2 0.1 4.0 Research and development credit (5.4) (1.1) (7.2) Federal return to provision (3.4) (0.4) 6.8 Loss of Filament pre-acquisition attributes due to CARES Act — — 8.6 Equity-based compensation 0.1 (0.6) 19.4 Valuation Allowance 15.9 22.4 48.3 Provision for income taxes 63.4 % 45.5 % 177.8 % |
Estimated Values of Gross Uncertain Tax Positions | The estimated values of the Company’s gross uncertain tax positions at December 31, 2022, 2021 and 2020 consist of the following: Year Ended December 31, 2022 2021 2020 (in thousands) Balance at January 1 $ (1,071) $ (1,648) $ (1,508) Additions based on tax positions related to the current year (79) (49) (149) Reductions for tax position of prior years 20 626 9 Balance at December 31 $ (1,130) $ (1,071) $ (1,648) |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Year Ended December 31, 2022 2021 2020 (in thousands) Net sales: U.S. $ 669,179 $ 770,633 $ 683,539 International 58,483 92,291 85,630 Total net sales $ 727,662 $ 862,924 $ 769,169 Income from operations: U.S. (1)(2) $ 61,479 $ 100,336 $ 60,378 International (2)(3) (12,153) (25,051) (12,835) Unallocated corporate expenses (4) (25,063) (24,443) (22,573) Total income from operations $ 24,263 $ 50,842 $ 24,970 Depreciation and amortization: U.S. $ 18,279 $ 18,504 $ 20,018 International 1,257 4,016 4,646 Total depreciation and amortization $ 19,536 $ 22,520 $ 24,664 Capital expenditures: U.S. $ 2,088 $ 3,838 $ 1,467 International 887 148 615 Total capital expenditures $ 2,975 $ 3,986 $ 2,082 (1) In 2020, the Company recognized non-cash impairment charges of $20.1 million related to the U.S. segment as described in NOTE 7 — GOODWILL AND INTANGIBLE ASSETS. (2) In 2022, income from operations includes restructuring expenses of $0.4 million for the U.S. segment and $0.4 million for the International segment. In 2020, income from operations for the International segment includes $0.2 million of restructuring expenses, as described in NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES. (3) In 2021, the Company recognized non-cash impairment charges of $14.8 million related to the international segment as described in NOTE 7 — GOODWILL AND INTANGIBLE ASSETS. (4) The Company recognized expenses of $5.1 million and $0.5 million in 2022 and 2021, respectively, for estimated remediation costs related to the Wallace EPA Matter, as described in NOTE 14 — COMMITMENTS AND CONTINGENCIES. In 2022, the Company recognized $0.6 million of restructuring expenses within unallocated corporate expenses, as described in NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES. December 31, 2022 2021 (in thousands) Assets: U.S. $ 608,496 $ 706,000 International 93,794 95,092 Unallocated corporate 23,598 27,982 Total assets $ 725,888 $ 829,074 Year Ended December 31, 2022 2021 (in thousands) Goodwill: U.S. Beginning balance $ 30,271 $ 30,271 Acquisition activity 2,966 — Total goodwill $ 33,237 $ 30,271 |
Net Sales and Long-Lived Assets by Major Geographic Locations | The following table sets forth long-lived assets by the major geographic locations: December, 2022 2021 (in thousands) Long-lived assets, excluding intangible assets, at period-end: United States $ 75,308 $ 81,659 Mexico 12,516 22,295 United Kingdom 22,845 26,429 Rest of World 1,076 940 Total $ 111,745 $ 131,323 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Royalties Payable | uture minimum royalties payable under these agreements are as follows (in thousands): Year ending December 31, 2023 $ 8,069 2024 8,000 2025 7,963 2026 8,211 2027 89 Thereafter 2,806 Total $ 35,138 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Postemployment Benefits [Abstract] | |
Future Benefit Payments | Expected benefit payments for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in thousands): Year ending December 31, 2023 $ 493 2024 469 2025 447 2026 426 2027 406 2027 through 2031 1,785 |
OTHER (Tables)
OTHER (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Inventory | The components of inventory are as follows: December 31, 2022 2021 (in thousands) Finished goods $ 213,450 $ 259,916 Work in process 70 159 Raw materials 8,689 10,441 Total $ 222,209 $ 270,516 |
Property and Equipment | Property and equipment (including finance leases) consist of: December 31, 2022 2021 (in thousands) Machinery, furniture and equipment $ 77,948 $ 77,005 Leasehold improvements 37,834 38,433 Computer hardware and software 38,120 37,544 Building and improvements 764 787 Construction in progress 1,249 715 Land 100 100 Total 156,015 154,584 Less: accumulated depreciation and amortization (137,993) (133,836) Total $ 18,022 $ 20,748 |
Accrued Expenses | Accrued expenses consist of: December 31, 2022 2021 (in thousands) Customer allowances and rebates $ 31,281 $ 36,290 Other non-income tax liabilities 10,054 7,496 Compensation and benefits 9,789 21,258 Vendor invoices 6,930 16,082 Freight 6,869 16,110 Professional fees 2,743 2,954 Royalties 2,408 4,406 Commissions 656 813 Restructuring 986 — Wallace facility remediation 500 — Interest 136 402 Other 5,250 6,930 Total $ 77,602 $ 112,741 |
Long term liabilities | ong-term liabilities consist of: December 31, 2022 2021 (in thousands) Retirement benefit obligations $ 5,178 $ 6,918 Wallace facility remediation 5,140 — Other non-income tax liabilities 3,037 2,927 Unearned revenue 890 1,159 Contingent consideration 650 — Derivative financial instruments — 972 Other long-term obligations 100 140 Total $ 14,995 $ 12,116 |
Supplemental Cash Flow Information | Year Ended December 31, 2022 2021 2020 (in thousands) Cash paid for interest $ 15,421 $ 13,702 $ 15,476 Cash paid for taxes, net of refunds 9,757 19,012 5,161 Non-cash investing activities: Translation loss recognized on change in Vasconia ownership — 3,404 — Non-cash gain on dilution of Vasconia ownership — (1,732) — |
Components of Accumulated Other Comprehensive Loss, Net | Components of accumulated other comprehensive loss, net Year Ended December 31, 2022 2021 2020 (in thousands) Accumulated translation adjustment: Balance at beginning of year $ (31,752) $ (35,846) $ (34,019) Translation adjustment during period (4,320) 690 (2,062) Amount reclassified from accumulated other comprehensive loss (1) — 3,404 235 Translation Adjustment $ (4,320) $ 4,094 $ (1,827) Balance at end of year $ (36,072) $ (31,752) $ (35,846) Accumulated deferred gains (losses) on cash flow hedges: Balance at beginning of year $ 78 $ (1,125) $ 1,164 Change in unrealized gains (losses) 2,126 (311) (3,273) Amounts reclassified from accumulated other comprehensive loss: (2) Settlement of cash flow hedges (1,281) 1,514 984 Net change in cash flow hedges, net of taxes of $(190), $(246) and $803 $ 845 $ 1,203 $ (2,289) Balance at end of year $ 923 $ 78 $ (1,125) Accumulated effect of retirement benefit obligations: Balance at beginning of year $ (1,875) $ (2,201) $ (1,600) Net income (loss) arising from retirement benefit obligations, net of tax of $(359), $(64) and $259 1,054 191 (680) Amount reclassified from accumulated other comprehensive loss: (3) Amortization of loss, net of tax of $(39), $(45) and $(52) 116 135 79 Net effects of retirement benefit obligations $ 1,170 $ 326 $ (601) Balance at end of year $ (705) $ (1,875) $ (2,201) Total accumulated other comprehensive loss at end of period $ (35,854) $ (33,549) $ (39,172) (1) Amount is recorded in equity in (losses) earnings on the consolidated statements of operations. (2) Amounts are recorded in interest expense and cost of goods sold on the consolidated statements of operations. (3) Amount is recorded in selling, general and administrative expenses on the consolidated statements of operations. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Significant Accounting Policies [Line Items] | |||||
Foreign currency gain (loss) | $ (1,500) | $ (1,300) | $ 500 | ||
Freight-out expenses | 17,400 | 19,200 | 15,400 | ||
Advertising expenses | 6,800 | 4,400 | 3,400 | ||
Restructuring expenses | 1,420 | $ 0 | 211 | ||
U.S. | Reorganization of management structure | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Restructuring expenses | 400 | ||||
U.S. | Forecast | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Excepted Annual Saving | $ 1,300 | ||||
International | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Restructuring expenses | 400 | $ 200 | |||
International | Forecast | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Excepted Annual Saving | $ 2,300 | ||||
Unallocated [Member] | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Employment Termination Costs | $ 1,400 | ||||
Unallocated [Member] | Employee severance | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Restructuring expenses | $ 600 | ||||
Unallocated [Member] | Remaining One-time Payment | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Employment Termination Costs | $ 800 | ||||
Performance Shares | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Number of shares range percentage | 150% | ||||
Vesting period | 3 years | ||||
Cash Settled Performance Based Awards | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Number of shares range percentage | 150% | ||||
Wal-Mart Stores Inc | Net sales | Customer Concentration Risk | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Percentage of net sales | 19% | 18% | 20% | ||
Costco Wholesale Corporation | Net sales | Customer Concentration Risk | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Percentage of net sales | 13% | 12% | 11% | ||
Employee severance | Net sales | Customer Concentration Risk | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Percentage of net sales | 11% | 12% | 10% | ||
Building and improvements | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Property and equipment depreciated over estimated useful lives | 30 years | ||||
Machinery, Furniture and Equipment | Minimum | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Property and equipment depreciated over estimated useful lives | 3 years | ||||
Machinery, Furniture and Equipment | Maximum | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Property and equipment depreciated over estimated useful lives | 10 years |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 727,662 | $ 862,924 | $ 769,169 |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 30 days | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 90 days | ||
Shipping and Handling | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 4,600 | $ 3,900 | $ 3,900 |
REVENUE - Summary of Company's
REVENUE - Summary of Company's Revenue Disaggregated by Geographic Region and Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 727,662 | $ 862,924 | $ 769,169 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 640,021 | 743,319 | 658,285 |
United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 38,210 | 54,150 | 54,364 |
Rest of World | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 49,431 | 65,455 | 56,520 |
U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 669,179 | 770,633 | 683,539 |
U.S. | Kitchenware | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 402,869 | 487,797 | 426,883 |
U.S. | Tableware | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 148,775 | 167,181 | 141,113 |
U.S. | Home Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 117,535 | 115,655 | 115,543 |
International segment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 58,483 | $ 92,291 | $ 85,630 |
ACQUISITIONS - Additional Infor
ACQUISITIONS - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Mar. 02, 2022 | Feb. 26, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 33,237 | $ 30,271 | $ 30,271 | $ 49,371 | ||
Net sales | $ 727,662 | $ 862,924 | $ 769,169 | |||
Trade Names | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired, estimated useful life | 12 years | |||||
Trade Names | Trade Names | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired, estimated useful life | 15 years | |||||
Year and Day [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 300 | |||||
Payments to Acquire Businesses, Gross | 200 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 100 | |||||
S'well | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Consideration Transferred | $ 17,956 | |||||
Business Combination, Contingent Consideration, Liability | 5,000 | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 650 | |||||
Business Combination , Consideration Transferred, Including Contingent Consideration | 18,606 | |||||
Business Combination, Acquisition Related Costs | $ 900 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 2,280 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 4,005 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fixed Assets | 40 | |||||
Net assets acquired | 13,000 | |||||
Goodwill | 2,966 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable and Accrued Expenses | (3,685) | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 18,606 | |||||
Net sales | $ 16,900 |
LEASES - Components of Lease Co
LEASES - Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Fixed lease expense | $ 17,855 | $ 17,860 | $ 18,181 |
Variable lease expense | 4,698 | 5,833 | 3,798 |
Total | $ 22,553 | $ 23,693 | $ 21,979 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Operating cash flows for operating leases | $ 19,338 | $ 19,154 | $ 15,802 |
Accumulated depreciation and amortization | 137,993 | $ 133,836 | |
Covid-19 | |||
Lessee, Lease, Description [Line Items] | |||
Accrued Rent | $ 1,000 | ||
Assets Held under Capital Leases | |||
Lessee, Lease, Description [Line Items] | |||
Machinery, furniture and equipment | 300 | ||
Accumulated depreciation and amortization | $ 200 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | $ 19,338 | $ 19,154 | $ 15,802 |
Total | 19,338 | 19,154 | 15,802 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 2,540 | 1,299 | 0 |
Total | $ 2,540 | $ 1,299 | $ 0 |
LEASES - Aggregate Future Lease
LEASES - Aggregate Future Lease Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 19,094 |
2024 | 18,571 |
2025 | 17,975 |
2026 | 17,265 |
2027 | 13,146 |
Thereafter | 23,657 |
Total lease payments | 109,708 |
Less: Interest | (19,260) |
Present value of lease payments | $ 90,448 |
LEASES - Average Lease Terms an
LEASES - Average Lease Terms and Discount Rates (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating leases, weighted average remaining lease term (in years) | 6 years 3 months 18 days | 7 years 3 months 18 days |
Operating leases, weighted average discount rate, percent | 6.10% | 6.20% |
SALE OF ACCOUNTS RECEIVABLE - A
SALE OF ACCOUNTS RECEIVABLE - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
HSBC Bank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sale of receivables | $ 20.2 | $ 28.8 |
Receivables purchase agreement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables purchase agreement - maximum borrowing | $ 30 | |
Agreement period | 364 days | |
Agreement termination, written notice period | 60 days | |
Sale of receivables | $ 141.3 | 150.7 |
Receivables purchase agreement | Selling, general & administrative expense | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Charge related to sale of receivables | $ 0.8 | $ 0.4 |
EQUITY INVESTMENTS - Additional
EQUITY INVESTMENTS - Additional Information (Details) $ in Thousands, shares in Millions | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jul. 29, 2021 shares | May 05, 2020 | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) $ / $ | Dec. 31, 2021 USD ($) $ / $ | Dec. 31, 2020 USD ($) | Jun. 29, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity in earnings (losses), net of taxes | $ (9,467) | $ 962 | $ 1,310 | |||||
Income Tax Expense (Benefit) | 5,728 | 16,541 | 9,866 | |||||
Ownership interest prior to disposal | 100% | |||||||
Foreign currency gain (loss) | (1,500) | (1,300) | 500 | |||||
Accumulated translation adjustment: | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity in earnings (losses), net of taxes | $ 0 | |||||||
Grupo Vasconia S.A.B. | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Percentage of ownership in equity method investment | 24.70% | 27% | 24.70% | 30% | ||||
Equity in earnings (losses), net of taxes | $ (3,300) | 1,800 | 1,500 | |||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 2.2 | |||||||
Proceeds from sale of shares of equity method investment | $ 3,100 | $ 0 | $ 3,061 | 0 | ||||
Exchange rate at period end - MXN to USD | $ / $ | 19.47 | 20.46 | ||||||
Increase (Decrease) in equity method investment | $ (300) | $ 1,000 | ||||||
Cash dividend received | 200 | 100 | ||||||
Equity Investment Impairment Charge | (6,200) | |||||||
Fair value of investment | 15,000 | |||||||
Carrying value of investment | 12,500 | |||||||
Grupo Vasconia S.A.B. | Accumulated translation adjustment: | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity in earnings (losses), net of taxes | $ 1,700 | 1,000 | (1,732) | 0 | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal | (300) | 500 | ||||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | $ 2,000 | 1,400 | $ 0 | $ 3,404 | 0 | |||
Income Tax Expense (Benefit) | $ 100 | |||||||
GS Internacional S/A | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Foreign currency gain (loss) | $ (200) | |||||||
GS Internacional S/A | Lifetime Brands Do Brasil Participacoes Ltda. | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Percentage of ownership in equity method investment | 40% |
EQUITY INVESTMENTS - Summary of
EQUITY INVESTMENTS - Summary of Proportionate Share of Vasconia's Net Income Translated from MXN to USD (Details) - Transaction 02 - Grupo Vasconia S.A.B. - $ / $ | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Average exchange rate (MXN to USD) | 19.67 | 20.01 | 19.91 |
Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Average exchange rate (MXN to USD) | 20.50 | 20.74 | 23.31 |
EQUITY INVESTMENTS - Schedule o
EQUITY INVESTMENTS - Schedule of Amounts Due to and Due from Vasconia (Details) - Grupo Vasconia S.A.B. - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Prepaid expenses and other current assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Amounts due from Vasconia | $ 48 | $ 80 |
Accounts Payable and Accrued Liabilities | ||
Schedule of Equity Method Investments [Line Items] | ||
Amounts due to Vasconia | $ (16) | $ (146) |
EQUITY INVESTMENTS - Summarized
EQUITY INVESTMENTS - Summarized Statement of Income Information for Vasconia in USD and MXN (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 MXN ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 MXN ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 MXN ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Gross profit | $ 260,316 | $ 303,319 | $ 273,998 | |||
Loss (income) from operations | 24,263 | 50,842 | 24,970 | |||
Net (loss) income | (6,166) | 20,801 | (3,007) | |||
Net sales | 727,662 | 862,924 | 769,169 | |||
Grupo Vasconia S.A.B. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Gross profit | 39,874 | $ 802,496 | 52,574 | $ 1,064,557 | 24,947 | $ 540,244 |
Loss (income) from operations | (1,596) | (30,323) | 15,536 | 313,156 | (102) | 6,674 |
Net (loss) income | (13,207) | (262,251) | 7,017 | 141,972 | 5,566 | 108,678 |
Net sales | $ 240,910 | $ 4,846,328 | $ 240,186 | $ 4,871,845 | $ 156,391 | $ 3,330,855 |
EQUITY INVESTMENTS - Summariz_2
EQUITY INVESTMENTS - Summarized Balance Sheet Information for Vasconia in USD and MXN (Details) $ in Thousands, $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2022 MXN ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 MXN ($) |
Balance Sheet | ||||
Current assets | $ 400,256 | $ 485,073 | ||
Current liabilities | 129,906 | 214,301 | ||
Grupo Vasconia S.A.B. | ||||
Balance Sheet | ||||
Current assets | 129,449 | $ 2,519,905 | 127,544 | $ 2,609,038 |
Non-current assets | 144,356 | 2,810,082 | 123,938 | 2,535,273 |
Current liabilities | 93,112 | 1,812,546 | 93,365 | 1,909,870 |
Non-current liabilities | $ 95,065 | $ 1,850,568 | $ 57,753 | $ 1,181,398 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Components of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2019 | |
Schedule of Intangible Assets Disclosure [Line Items] | ||||
Gross | $ 33,237 | $ 30,271 | ||
Net | 33,237 | $ 30,271 | 30,271 | $ 49,371 |
Impairment | 14,800 | |||
Accumulated Amortization | (88,595) | (103,947) | ||
Total | 302,482 | 331,385 | ||
Total | 14,760 | |||
INTANGIBLE ASSETS, net | 213,887 | 244,025 | 212,678 | $ 280,471 |
Impairment | (91,700) | |||
Indefinite-lived intangible assets, Impairment | $ 1,000 | |||
Finite-lived Intangible Assets Reduction for Impairment, Gross | 44,100 | |||
Finite-lived Intangible Assets Reduction for Impairment, Accumulated Amortization | 29,300 | |||
Indefinite-lived Intangible Assets, impaired, accumulated impairment loss, | 1,000 | |||
Finite-lived Intangible Assets Reduction for Impairment of U.S. Segment, Gross | 6,500 | |||
Trade Names | ||||
Schedule of Intangible Assets Disclosure [Line Items] | ||||
Gross | 49,600 | 49,600 | ||
Net | 49,600 | 49,600 | ||
Licenses | ||||
Schedule of Intangible Assets Disclosure [Line Items] | ||||
Gross | 15,847 | 15,847 | ||
Accumulated Amortization | (11,654) | (11,198) | ||
Net | 4,193 | 4,649 | ||
Trade Names | ||||
Schedule of Intangible Assets Disclosure [Line Items] | ||||
Gross | 54,785 | 51,856 | ||
Impairment | (2,546) | |||
Accumulated Amortization | (20,030) | (23,829) | ||
Net | $ 34,755 | 25,481 | ||
Intangible assets acquired, estimated useful life | 12 years | |||
Customer relationships (2) | ||||
Schedule of Intangible Assets Disclosure [Line Items] | ||||
Gross | $ 143,157 | 177,245 | ||
Impairment | (11,766) | |||
Accumulated Amortization | (53,586) | (65,863) | ||
Net | 89,571 | 99,616 | ||
Other (2) | ||||
Schedule of Intangible Assets Disclosure [Line Items] | ||||
Gross | 5,856 | 6,566 | ||
Impairment | (448) | |||
Accumulated Amortization | (3,325) | (3,057) | ||
Net | $ 2,531 | $ 3,061 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets | |||
Intangible Assets, Beginning Balance | $ 182,407 | $ 213,754 | $ 231,100 |
Foreign currency translation adjustment | (227) | (364) | 607 |
Amortization | (14,530) | (16,223) | (16,953) |
Intangible assets acquired, estimated useful life | 14,760 | ||
Indefinite-lived intangible assets, Impairment | (1,000) | ||
Intangible Assets, Ending Balance | 180,650 | 182,407 | 213,754 |
Goodwill | |||
Beginning balance | 30,271 | 30,271 | 49,371 |
Foreign currency translation adjustment | 0 | 0 | 0 |
Impairment | (19,100) | ||
Acquisition of goodwill | 2,966 | ||
Ending balance | 33,237 | 30,271 | 30,271 |
Goodwill and Intangible Assets | |||
Goodwill and intangible assets, Beginning Balance | 212,678 | 244,025 | 280,471 |
Foreign currency translation adjustment | (227) | (364) | 607 |
Amortization | (14,530) | (16,223) | (16,953) |
Goodwill and Intangible Assets, Ending Balance | $ 213,887 | $ 212,678 | $ 244,025 |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Goodwill and intangible asset impairment | Goodwill and intangible asset impairment | Goodwill and intangible asset impairment |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Goodwill and intangible asset impairment | Goodwill and intangible asset impairment | Goodwill and intangible asset impairment |
Trade Names | |||
Intangible Assets | |||
Acquisition of customer relationships | $ 13,000 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Weighted Average Amortization Period for Finite Lived Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Trade Names | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, weighted-average amortization periods | 14 years |
Licenses | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, weighted-average amortization periods | 33 years |
Customer relationships (2) | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, weighted-average amortization periods | 14 years |
Other (2) | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, weighted-average amortization periods | 10 years |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 14,701 |
2024 | 14,367 |
2025 | 14,116 |
2026 | 13,767 |
2027 | $ 13,057 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 01, 2022 | Dec. 31, 2019 | |
Schedule of Intangible Assets Disclosure [Line Items] | ||||||
Amortization expenses | $ 14,530,000 | $ 16,223,000 | $ 16,953,000 | |||
Goodwill | 33,237,000 | 30,271,000 | 30,271,000 | $ 49,371,000 | ||
Goodwill impairment charges | 19,100,000 | |||||
Indefinite-lived intangible assets, Impairment | 1,000,000 | |||||
Goodwill and intangible asset impairment | 0 | 14,760,000 | 20,100,000 | |||
International | ||||||
Schedule of Intangible Assets Disclosure [Line Items] | ||||||
Goodwill and intangible asset impairment | 14,800,000 | |||||
U.S. | ||||||
Schedule of Intangible Assets Disclosure [Line Items] | ||||||
Goodwill | $ 30,271,000 | 30,271,000 | ||||
Goodwill impairment charges | $ 19,100,000 | |||||
Goodwill, percentage of fair value in excess of the carrying value | 3.90% | 10% | ||||
Indefinite-lived intangible assets, Impairment | $ 1,000,000 | |||||
Goodwill and intangible asset impairment | $ 20,100,000 | |||||
European Kitchenware | ||||||
Schedule of Intangible Assets Disclosure [Line Items] | ||||||
Goodwill | $ 0 |
DEBT - Additional Information (
DEBT - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Aug. 25, 2022 USD ($) | Mar. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||
Debt instrument, quarterly repayment percentage of principal | 0.25% | ||||
Maximum debt instrument leverage ratio | 3.75 | ||||
Debt Agreements | |||||
Debt Instrument [Line Items] | |||||
Percentage of capital stock of foreign subsidiaries pledged as collateral | 65% | 65% | |||
Minimum Term Under Revolving Credit Facility | 45 days | ||||
ABL Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum aggregate principal allowed | $ 189,411,000 | $ 150,000,000 | |||
Minimum availability under revolving credit to maintain minimum fixed charge ratio for four consecutive months | $ 20,000,000 | ||||
Commitment fee percentage | 10% | ||||
Minimum fixed charge coverage ratio | 1.10 | ||||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Long Term Debt, Excess Cash Flow Payment | $ 6,200,000 | ||||
Estimated Excess Cash Flow principal payment | $ 0 | $ 7,200,000 | |||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 275,000,000 | ||||
Interest rates on outstanding borrowings | 7.90% | 7.90% | |||
Term Loan | Alternate Base Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2.50% | ||||
Term Loan | Prime rate, federal funds and overnight bank funding based rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.50% | ||||
Term Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 3.50% | ||||
Revolving Credit Facility | ABL Credit Agreement | Federal Funds And Overnight Bank Funding Based Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, 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, Interest Rate, Stated Percentage | 1% | 1% | |||
Revolving Credit Facility | ABL Credit Agreement | Term SOFR Rate fo the selcted 1, 3 or 6 month interest period | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.10% | 0.10% | |||
Revolving Credit Facility | ABL Credit Agreement | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rates on outstanding borrowings | 3.43% | 3.43% | |||
Revolving Credit Facility | Term Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1% | ||||
HSBC Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum aggregate principal allowed | $ 10,000,000 | ¥ 1,500,000 | |||
Outstanding borrowing under credit facility | 0 | ||||
Senior Secured Asset Based Revolving Credit Facilities | ABL Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum aggregate principal allowed | 200,000,000 | $ 150,000,000 | |||
Line of credit facility maximum borrowing capacity if certain conditions are met | 250,000,000 | ||||
Line of Credit Facility Increased Maximum Borrowing Capacity if Certain Condition Met Further Limited | 220,000,000 | ||||
Increase in line of credit facility | 50,000,000 | ||||
Repayments of Lines of Credit | $ 32,000,000 | ||||
Minimum | Revolving Credit Facility | ABL Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Percentage of line of credit facility unused capacity commitment fee | 0.20% | ||||
line of credit facility, unused capacity, commitmdng fee percentage paid | 0.25% | ||||
Minimum | Revolving Credit Facility | ABL Credit Agreement | One Month Adjusted Term Secured Overnight Financing Rate ("SOFR") | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1% | 1% | |||
Minimum | Revolving Credit Facility | ABL Credit Agreement | Alternate Base Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.25% | ||||
Minimum | Revolving Credit Facility | ABL Credit Agreement | Adjusted Term SOFR | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.25% | ||||
Minimum | Revolving Credit Facility | Term Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1% | 1% | |||
Minimum | Revolving Credit Facility | Term Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1% | 1% | |||
Maximum | Revolving Credit Facility | ABL Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Percentage of line of credit facility unused capacity commitment fee | 0.25% | ||||
line of credit facility, unused capacity, commitmdng fee percentage paid | 0.375% | ||||
Maximum | Revolving Credit Facility | ABL Credit Agreement | Alternate Base Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.50% | ||||
Maximum | Revolving Credit Facility | ABL Credit Agreement | Adjusted Term SOFR | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.50% |
DEBT - Total Availability Under
DEBT - Total Availability Under ABL Agreement (Details) - ABL Credit Agreement - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Maximum aggregate principal allowed | $ 189,411 | $ 150,000 |
Outstanding borrowings under the ABL Agreement | (10,424) | 0 |
Standby letters of credit | (2,765) | (3,659) |
Total availability under the ABL Agreement | $ 176,222 | $ 146,341 |
DEBT - Current and Non Current
DEBT - Current and Non Current Portions of Term Loan (Details) - Term Loan - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current portion of Term Loan facility: | ||
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 |
Non-current portion of Term Loan facility: | ||
Total Non-current portion of Term Loan facility | 245,911 | 244,927 |
Estimated unamortized debt issuance costs | (3,054) | (3,054) |
Total Non-current portion of Term Loan facility | $ 242,857 | $ 241,873 |
DERIVATIVES - Additional Inform
DERIVATIVES - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Gain (loss) reclassified into earnings | $ (1,500,000) | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 800,000 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 50,000,000 | |
Interest expense | Interest rate swaps | ||
Derivative [Line Items] | ||
Gain (loss) reclassified into earnings | (300,000) | (900,000) |
Cost of Sales | Interest rate swaps | ||
Derivative [Line Items] | ||
Gain (loss) reclassified into earnings | 1,600,000 | |
Cost of Sales | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gain (loss) reclassified into earnings | (600,000) | |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | 6,300,000 | $ 22,600,000 |
Derivatives designated as hedging instruments | Cash Flow Hedging | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 25,000,000 | |
Derivatives designated as hedging instruments | Cash Flow Hedging | Interest rate swaps | ||
Derivative [Line Items] | ||
Gain (loss) reclassified into earnings | 1,300,000 | |
Derivatives not designated as hedging instruments | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 25,000,000 |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued expenses | Interest rate swaps | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative Assets | $ 0 | $ 288 |
Accrued expenses | Foreign exchange contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative Assets | 260 | 0 |
Other long-term liabilities | Interest rate swaps | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative Assets | 0 | 292 |
Other long-term liabilities | Interest rate swaps | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative Assets | 0 | 680 |
Prepaid expenses and other current assets | Interest rate swaps | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative Assets | 122 | 0 |
Prepaid expenses and other current assets | Foreign exchange contracts | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative Assets | 0 | 461 |
Other Assets [Member] | Interest rate swaps | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative Assets | $ 1,292 | $ 0 |
DERIVATIVES - Gains and Losses
DERIVATIVES - Gains and Losses Related to Derivative Financial Instruments Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net change in cash flow hedges | $ 845 | $ 1,203 | $ (2,289) |
Derivatives designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net change in cash flow hedges | 845 | 1,203 | (2,289) |
Derivatives designated as hedging instruments | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net change in cash flow hedges | 523 | 718 | (2,406) |
Derivatives designated as hedging instruments | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net change in cash flow hedges | $ 322 | $ 485 | $ 117 |
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) recognized in income on derivative | $ 1,916 | $ 604 | $ (2,471) |
Mark to market gain (loss) on interest rate derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) recognized in income on derivative | 1,971 | 1,062 | (2,144) |
Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) recognized in income on derivative | $ (55) | $ (458) | $ (327) |
CAPITAL STOCK - Cash Dividends
CAPITAL STOCK - Cash Dividends Declared (Details) - $ / shares | Feb. 15, 2023 | Nov. 15, 2022 | Aug. 15, 2022 | May 16, 2022 | Feb. 14, 2022 | Nov. 15, 2021 | Aug. 16, 2021 | May 17, 2021 |
Dividends Payable [Line Items] | ||||||||
Dividend per share (usd per share) | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.0425 | |
Subsequent Event | ||||||||
Dividends Payable [Line Items] | ||||||||
Dividend per share (usd per share) | $ 0.0425 |
CAPITAL STOCK - Additional Info
CAPITAL STOCK - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Mar. 08, 2023 | Jun. 23, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 14, 2022 | Apr. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Quarterly dividend declared (in usd per share) | $ 0.17 | $ 0.17 | $ 0.17 | ||||
Stock repurchase program, authorized amount | $ 20,000 | $ 10,000 | |||||
Treasury stock repurchase (in shares) | 597,195 | 0 | 0 | ||||
Stock Repurchased During Period, Value | $ 6,320 | ||||||
Total intrinsic value of stock options exercised | 100 | $ 800 | $ 100 | ||||
Unrecognized stock option compensation cost | $ 500 | ||||||
Weighted-average per share grant date fair value of stock options granted | $ 5.44 | $ 6.31 | $ 2.26 | ||||
Preferred stock Series A | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
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 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
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 | |||||
Long Term Incentive Plan 2000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for grant (in shares) | 1,133,958 | ||||||
Long Term Incentive Plan 2000 | After Amendment | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for grant (in shares) | 8,217,500 | ||||||
Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted-average recognition period | 1 year 10 months 24 days | ||||||
Stock Option | Minimum | Long Term Incentive Plan 2000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options expiration period | 5 years | ||||||
Stock Option | Maximum | Long Term Incentive Plan 2000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options expiration period | 10 years | ||||||
Vesting period | 4 years | ||||||
Restricted Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted-average recognition period | 1 year 8 months 12 days | ||||||
Total fair value of restricted stock vested | $ 2,400 | ||||||
Number of shares vested | 205,290 | 586,244 | 322,398 | ||||
Restricted Shares | Maximum | Long Term Incentive Plan 2000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Performance-based awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Weighted-average recognition period | 1 year | ||||||
Total fair value of restricted stock vested | $ 2,000 | ||||||
Number of shares range percentage | 150% | ||||||
Number of shares vested | 166,935 | 150,273 | 62,215 | ||||
Performance-based awards | Long Term Incentive Plan 2000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized | 1,180,000 | ||||||
Performance-based awards | Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares vested | 119,739 | ||||||
Cash Settled Performance Based Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted-average recognition period | 0 years | ||||||
Number of shares range percentage | 150% | ||||||
Dividend Declared | Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Quarterly dividend declared (in usd per share) | $ 0.0425 |
CAPITAL STOCK - Summary of Stoc
CAPITAL STOCK - Summary of Stock Option (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Options | |||
Beginning balance (in shares) | 1,094,575 | 1,286,900 | 1,508,325 |
Grants (in shares) | 56,000 | 48,000 | 37,500 |
Exercises (in shares) | 60,000 | 236,325 | 2,500 |
Cancellations (in shares) | (11,375) | (14,313) | |
Expirations (in shares) | (13,450) | (4,000) | (242,112) |
Ending balance (in shares) | 1,065,750 | 1,094,575 | 1,286,900 |
Options exercisable at End of Period (in shares) | 957,125 | ||
Weighted- average exercise price | |||
Beginning balance (usd per share) | $ 13.64 | $ 13.28 | $ 13.43 |
Grants (usd per share) | 11.45 | 14.18 | 6.36 |
Exercised (usd per share) | 11.64 | 11.71 | 10.79 |
Cancellations (usd per share) | 11.16 | 11.09 | |
Expirations (usd per share) | 13.99 | 19.10 | 13.27 |
Ending balance (usd per share) | 13.66 | $ 13.64 | $ 13.28 |
Options exercisable at End of Period (usd per share) | $ 13.92 | ||
Weighted- average remaining contractual life (years) | |||
Options outstanding, ending balance | 4 years 4 months 24 days | ||
Options exercisable, ending balance | 3 years 10 months 24 days | ||
Aggregate intrinsic value | |||
Options outstanding, end of period | $ 38 | ||
Options exercisable, end of period | $ 19 | ||
Long Term Incentive Plan 2000 | |||
Options | |||
Exercises (in shares) | 2,000,000 |
CAPITAL STOCK - Fair Value Stoc
CAPITAL STOCK - Fair Value Stock Options at Grant Date using Weighted-Average Assumption (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Historical volatility | 53% | 52% | 49% |
Expected term (years) | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 3 months 18 days |
Risk-free interest rate | 3.15% | 1.08% | 0.45% |
Expected dividend yield | 1.48% | 1.20% | 2.67% |
CAPITAL STOCK - Summary of Rest
CAPITAL STOCK - Summary of Restricted Stock Activity (Details) - Restricted Shares - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Shares | |||
Beginning balance (in shares) | 429,601 | 795,587 | 593,341 |
Grants (in shares) | 266,713 | 220,658 | 534,940 |
Vested (in shares) | (205,290) | (586,244) | (322,398) |
Cancellations (in shares) | (6,881) | (400) | (10,296) |
Ending balance (in shares) | 484,143 | 429,601 | 795,587 |
Weighted- average grant date fair value | |||
Beginning balance (usd per share) | $ 11.47 | $ 7.54 | $ 10.70 |
Grants (usd per share) | 12.03 | 14.27 | 5.94 |
Vested (usd per share) | 11.46 | 7.19 | 10.64 |
Cancellations (usd per share) | 10.92 | 11.42 | 9.06 |
Ending balance (usd per share) | $ 11.79 | $ 11.47 | $ 7.54 |
Total unrecognized compensation expense remaining (in thousands) | $ 4,089 | ||
Weighted-average years expected to be recognized over | 1 year 8 months 12 days |
CAPITAL STOCK - Summary of Perf
CAPITAL STOCK - Summary of Performance-based Award Activity (Details) - Performance-based awards - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Shares | |||
Beginning balance (in shares) | 436,330 | 431,046 | 405,059 |
Grants (in shares) | 123,000 | 176,915 | 106,275 |
Vested (in shares) | (166,935) | (150,273) | (62,215) |
Cancellations (in shares) | (4,128) | (21,358) | (18,073) |
Ending balance (in shares) | 400,302 | 436,330 | 431,046 |
Total unrecognized compensation expense remaining (in thousands) | $ 798 | ||
Weighted-average grant date fair value | |||
Beginning balance (usd per share) | $ 10.54 | $ 9.94 | $ 12.43 |
Grants (usd per share) | 12.19 | 14.18 | 6.36 |
Vested (usd per share) | 9.20 | 12.79 | 18.45 |
Cancellations (usd per share) | 10.64 | 12.76 | 15.49 |
Ending balance (usd per share) | $ 11.56 | $ 10.54 | $ 9.94 |
Weighted-average years expected to be recognized over | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options | 12,035 | ||
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 | $ 9.20 |
STOCK COMPENSATION (Details)
STOCK COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
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) | $ 7.66 | |
Share-based Compensation Arrangement by Share-based Payment Award, Liability Instruments Other than Options, Forfeiteds in Period, Weighted Average Grant Date Fair Value | $ 10.61 | |
Share-based Compensation Arrangement by Share-based Payment Award, Liability Instruments Other than Options, Nonvested, Number | 85,776 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Liability Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 7.59 | $ 0 |
Total unrecognized compensation expense remaining (in thousands) | $ 0 | |
Weighted-average recognition period | 0 years | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation expense remaining (in thousands) | $ 798 | |
Weighted-average recognition period | 1 year |
CAPITAL STOCK - Stock Compensat
CAPITAL STOCK - Stock Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock Compensation Expense | $ 3,846 | $ 5,217 | $ 5,951 |
Equity based stock option expense | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock Compensation Expense | 275 | 417 | 570 |
Restricted and performance-based stock awards expense | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock Compensation Expense | 3,586 | 4,787 | 5,346 |
Stock compensation expense for equity based awards | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock Compensation Expense | 3,861 | 5,204 | 5,916 |
Liability based stock option expense | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock Compensation Expense | $ (15) | $ 13 | $ 35 |
LOSS PER COMMON SHARE - Calcula
LOSS PER COMMON SHARE - Calculations of Basic and Diluted (Loss) Income per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net (loss) income – Basic and Diluted | $ (6,166) | $ 20,801 | $ (3,007) |
Weighted-average shares outstanding - Basic (in shares) | 21,558 | 21,397 | 20,860 |
Effect of dilutive securities: | |||
Stock options and other stock awards (in shares) | 0 | 640 | 0 |
Weighted-average shares outstanding – Diluted (in shares) | 21,558 | 22,037 | 20,860 |
Basic loss per common share (usd per share) | $ (0.29) | $ 0.97 | $ (0.14) |
Diluted loss per common share (usd per share) | $ (0.29) | $ 0.94 | $ (0.14) |
Antidilutive shares (in shares) | 1,681 | 380 | 2,167 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Before Income Taxes. Equity in Earnings and Extra Ordinary Items (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 20,796 | $ 61,045 | $ 18,012 |
Foreign | (11,767) | (24,665) | (12,463) |
Income before income taxes and equity in (losses) earnings | $ 9,029 | $ 36,380 | $ 5,549 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Before Equity in Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 6,890 | $ 10,361 | $ 8,522 |
State and local | 1,888 | 3,558 | 2,540 |
Foreign | 775 | 823 | 665 |
Deferred | (3,825) | 1,799 | (1,861) |
Income tax provision | $ 5,728 | $ 16,541 | $ 9,866 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Examination [Line Items] | |||
Proceeds from income tax refunds | $ 2.3 | ||
Income tax examination net of federal and state tax benefit, accrued interest | $ 0.4 | $ 0.4 | |
Reduction in income tax liability if tax positions sustained | 1.6 | ||
Foreign | |||
Income Tax Examination [Line Items] | |||
Net operating loss carryforward | 61.3 | ||
State Jurisdiction | |||
Income Tax Examination [Line Items] | |||
Net operating loss carryforward | 12.1 | ||
State Jurisdiction | Capital Loss Carryforward | |||
Income Tax Examination [Line Items] | |||
Net operating loss carryforward | 6.8 | ||
US | Capital Loss Carryforward | |||
Income Tax Examination [Line Items] | |||
Net operating loss carryforward | $ 0.9 |
INCOME TAXES - Significant Comp
INCOME TAXES - Significant Components of Net Deferred Income Tax Asset (Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income tax assets: | ||
Operating lease liabilities | $ 22,814 | $ 26,158 |
Stock options | 1,679 | 1,825 |
Inventory | 3,134 | 2,612 |
Operating loss carryforwards | 17,450 | 15,684 |
Accounts receivable allowances | 1,906 | 1,696 |
Accrued compensation | 1,137 | 1,310 |
Deferred compensation | 721 | 1,167 |
Deferred Tax Assets, Environmental remediation accrual | 1,432 | |
Deferred Tax Assets, Capitalized research and experimental expenditures | 2,525 | |
Other | 755 | 1,409 |
Total deferred income tax assets | 53,553 | 51,988 |
Deferred income tax liabilities: | ||
Operating lease right-of-use assets | (18,872) | (21,857) |
Fixed assets | (1,735) | (1,784) |
Intangibles | (26,230) | (26,117) |
Total deferred income tax liabilities | (46,837) | (49,758) |
Net deferred income tax asset | 6,716 | 2,230 |
Valuation allowance | (16,323) | (15,072) |
Net deferred income tax liability | $ (9,607) | $ (12,842) |
INCOME TAXES - Difference betwe
INCOME TAXES - Difference between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Rates (Details) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Federal income taxes at the statutory rate | 21% | 21% | 21% | |
State and local income taxes, net of Federal income tax benefit | 13.90% | 8.80% | 38.90% | |
Foreign rate differences | 6.90% | (9.20%) | (49.80%) | |
Effective Income Tax Rate Reconciliation, Foreign withholding tax | 6.10% | 1.20% | 5.90% | |
Impairment of goodwill | 0% | 0% | 65.50% | |
Non-deductible expenses | 7.10% | 3.30% | 16.40% | |
Uncertain tax positions | 1.20% | 0.10% | 4% | |
Research and development credit | (5.40%) | (1.10%) | (7.20%) | |
Federal return to provision | (3.40%) | (0.40%) | 6.80% | |
Loss of Filament pre-acquisition attributes due to CARES Act | 0% | 0% | 8.60% | |
Equity-based compensation | 0.10% | (0.60%) | 19.40% | |
Valuation Allowance | 15.90% | 22.40% | 48.30% | |
Provision for income taxes | 63.40% | 45.50% | 177.80% |
INCOME TAXES - Estimated Values
INCOME TAXES - Estimated Values of Gross Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1 | $ (1,071) | $ (1,648) | $ (1,508) |
Additions based on tax positions related to the current year | (79) | (49) | (149) |
Reductions for tax position of prior years | 20 | 626 | 9 |
Balance at December 31 | $ (1,130) | $ (1,071) | $ (1,648) |
BUSINESS SEGMENTS - Additional
BUSINESS SEGMENTS - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of reportable business segment | 2 |
BUSINESS SEGMENTS - Segment Rep
BUSINESS SEGMENTS - Segment Reporting Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 727,662 | $ 862,924 | $ 769,169 |
Income from operations: | 24,263 | 50,842 | 24,970 |
Depreciation and amortization | 19,536 | 22,520 | 24,664 |
Capital expenditures: | 2,975 | 3,986 | 2,082 |
Restructuring expenses | 1,420 | 0 | 211 |
Assets: | 725,888 | 829,074 | |
Goodwill | |||
Beginning balance | 30,271 | 30,271 | 49,371 |
Acquisition of goodwill | 2,966 | ||
Ending balance | 33,237 | 30,271 | 30,271 |
Unallocated corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Income from operations: | (25,063) | (24,443) | (22,573) |
Assets: | 23,598 | 27,982 | |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Net sales | 669,179 | 770,633 | 683,539 |
Goodwill | |||
Beginning balance | 30,271 | 30,271 | |
Acquisition of goodwill | 2,966 | 0 | |
Ending balance | 30,271 | 30,271 | |
U.S. | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 669,179 | 770,633 | 683,539 |
Income from operations: | 61,479 | 100,336 | 60,378 |
Depreciation and amortization | 18,279 | 18,504 | 20,018 |
Capital expenditures: | 2,088 | 3,838 | 1,467 |
Assets: | 608,496 | 706,000 | |
International | |||
Segment Reporting Information [Line Items] | |||
Restructuring expenses | 400 | 200 | |
International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 58,483 | 92,291 | 85,630 |
Income from operations: | (12,153) | (25,051) | (12,835) |
Depreciation and amortization | 1,257 | 4,016 | 4,646 |
Capital expenditures: | 887 | 148 | $ 615 |
Assets: | $ 93,794 | $ 95,092 |
BUSINESS SEGMENTS - Segment R_2
BUSINESS SEGMENTS - Segment Reporting Information Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Restructuring expenses | $ 1,420 | $ 0 | $ 211 | |
Goodwill and intangible asset impairment | 0 | 14,760 | 20,100 | |
Goodwill impairment charges | 19,100 | |||
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill and intangible asset impairment | 20,100 | |||
Goodwill impairment charges | $ 19,100 | |||
International | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring expenses | $ 400 | $ 200 | ||
Goodwill and intangible asset impairment | $ 14,800 |
BUSINESS SEGMENTS - Net Sales a
BUSINESS SEGMENTS - Net Sales and Long-Lived Assets by Major Geographic Locations (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 111,745 | $ 131,323 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 75,308 | 81,659 |
Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 12,516 | 22,295 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 22,845 | 26,429 |
Rest of World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 1,076 | $ 940 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Future Minimum Royalties Payable (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 8,069 |
2024 | 8,000 |
2025 | 7,963 |
2026 | 8,211 |
2027 | 89 |
Thereafter | 2,806 |
Total | $ 35,138 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||
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 | $ 1.1 | $ 1.1 |
Negligence | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Reasonable possible loss | 2.2 | 2.2 |
Gross Negligence | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Reasonable possible loss | $ 4.4 | 4.4 |
Capital cost | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Remedial alternative, EPA preferred remedy | 17.3 | |
Capital cost | San German Ground Water Contamination Site Initial Operable Unit | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Remedial alternative, EPA preferred remedy | $ 7.3 |
RETIREMENT PLANS - Additional I
RETIREMENT PLANS - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Retirement benefit obligations discount rate | 4.89% | 2.46% |
Expected actuarial losses included in accumulated other comprehensive loss in net periodic benefit cost in 2020 | $ 0.1 | |
Former Executives | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Retirement benefit obligations | $ 5.7 | $ 7.4 |
RETIREMENT PLANS - Future Retir
RETIREMENT PLANS - Future Retirement Benefit Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Postemployment Benefits [Abstract] | |
2023 | $ 493 |
2024 | 469 |
2025 | 447 |
2026 | 426 |
2027 | 406 |
2027 through 2031 | $ 1,785 |
OTHER - Components of Inventory
OTHER - Components of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods | $ 213,450 | $ 259,916 |
Work in process | 70 | 159 |
Raw materials | 8,689 | 10,441 |
Total | $ 222,209 | $ 270,516 |
OTHER - Property and Equipment
OTHER - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 156,015 | $ 154,584 |
Less: accumulated depreciation and amortization | (137,993) | (133,836) |
Total | 18,022 | 20,748 |
Machinery, furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 77,948 | 77,005 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 37,834 | 38,433 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 38,120 | 37,544 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 764 | 787 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 1,249 | 715 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 100 | $ 100 |
OTHER - Additional Information
OTHER - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Depreciation charge | $ 5 | $ 6 | $ 7.4 |
OTHER - Long term liabilities (
OTHER - Long term liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Retirement benefit obligations | $ 5,178 | $ 6,918 |
Wallace facility remediation | 5,140 | 0 |
Other non-income tax liabilities | 3,037 | 2,927 |
Unearned revenue | 890 | 1,159 |
Contingent consideration Non current | 650 | 0 |
Derivative financial instruments | 0 | 972 |
Other long-term obligations | 100 | 140 |
OTHER LONG-TERM LIABILITIES | $ 14,995 | $ 12,116 |
OTHER - Accrued Expenses (Detai
OTHER - Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Customer allowances and rebates | $ 31,281 | $ 36,290 |
Other non-income tax liabilities | 10,054 | 7,496 |
Compensation and benefits | 9,789 | 21,258 |
Vendor invoices | 6,930 | 16,082 |
Freight | 6,869 | 16,110 |
Professional fees | 2,743 | 2,954 |
Royalties | 2,408 | 4,406 |
Commissions | 656 | 813 |
Restructuring | 986 | 0 |
Wallace facility remediation | 500 | 0 |
Interest | 136 | 402 |
Other | 5,250 | 6,930 |
Total | $ 77,602 | $ 112,741 |
OTHER - Supplemental Cash Flow
OTHER - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |||
Cash paid for interest | $ 15,421 | $ 13,702 | $ 15,476 |
Cash paid for taxes, net of refunds | $ 9,757 | $ 19,012 | $ 5,161 |
OTHER - Components of Accumulat
OTHER - Components of Accumulated Other Comprehensive Loss, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of year | $ 255,646 | $ 230,136 | $ 236,317 |
Net change in cash flow hedges | 845 | 1,203 | (2,289) |
Net income (loss) arising from retirement benefit obligations, net of tax of $(359), $(64) and $259 | (1,170) | (326) | 601 |
Balance at end of year | 240,088 | 255,646 | 230,136 |
Accumulated translation adjustment: | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of year | (31,752) | (35,846) | (34,019) |
OCI, before reclassifications, net of tax, attributable to parent | (4,320) | 690 | (2,062) |
Amount reclassified from accumulated other comprehensive loss (1) | 0 | 3,404 | 235 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (4,320) | 4,094 | (1,827) |
Balance at end of year | (36,072) | (31,752) | (35,846) |
Accumulated deferred gains (losses) on cash flow hedges: | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of year | 78 | (1,125) | 1,164 |
Net change in cash flow hedges | 2,126 | (311) | (3,273) |
Amounts reclassified from accumulated other comprehensive loss | (1,281) | 1,514 | 984 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 845 | 1,203 | (2,289) |
Balance at end of year | 923 | 78 | (1,125) |
Accumulated effect of retirement benefit obligations: | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of year | (1,875) | (2,201) | (1,600) |
Amounts reclassified from accumulated other comprehensive loss | 116 | 135 | 79 |
Net income (loss) arising from retirement benefit obligations, net of tax of $(359), $(64) and $259 | 1,054 | 191 | (680) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 1,170 | 326 | (601) |
Balance at end of year | (705) | (1,875) | (2,201) |
Accumulated other comprehensive loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at beginning of year | (33,549) | (39,172) | (34,455) |
Balance at end of year | $ (35,854) | $ (33,549) | $ (39,172) |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts [Schedule] Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 16,544 | $ 17,013 | $ 9,681 |
Charged to costs and expenses | 6,623 | 9,083 | 15,792 |
Deductions | (8,561) | (9,552) | (8,460) |
Balance at end of period | 14,606 | 16,544 | 17,013 |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 4,656 | 4,624 | 1,333 |
Charged to costs and expenses | 662 | 367 | 4,512 |
Deductions | (123) | (335) | (1,221) |
Balance at end of period | 5,195 | 4,656 | 4,624 |
Reserve for sales returns and allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 11,888 | 12,389 | 8,348 |
Charged to costs and expenses | 5,961 | 8,716 | 11,280 |
Deductions | (8,438) | (9,217) | (7,239) |
Balance at end of period | $ 9,411 | $ 11,888 | $ 12,389 |