Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0000895456 | ||
Entity Registrant Name | ROCKY BRANDS, INC. | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-34382 | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 31-1364046 | ||
Entity Address, Address Line One | 39 East Canal Street | ||
Entity Address, City or Town | Nelsonville | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45764 | ||
City Area Code | 740 | ||
Local Phone Number | 753-1951 | ||
Title of 12(b) Security | Common Stock – No Par Value | ||
Trading Symbol | RCKY | ||
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 | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 233,451,724 | ||
Entity Common Stock, Shares Outstanding | 7,346,250 | ||
Auditor Firm ID | 358 | ||
Auditor Name | Schneider Downs & Co., Inc. | ||
Auditor Location | Columbus, Ohio |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 5,719 | $ 5,909 |
Trade receivables – net | 94,953 | 126,807 |
Contract receivables | 0 | 1,062 |
Other receivables | 908 | 242 |
Inventories – net | 235,400 | 232,464 |
Income tax receivable | 0 | 4,294 |
Prepaid expenses | 4,067 | 4,507 |
Total current assets | 341,047 | 375,285 |
LEASED ASSETS | 11,014 | 11,428 |
PROPERTY, PLANT & EQUIPMENT – net | 57,359 | 59,989 |
GOODWILL | 50,246 | 50,641 |
IDENTIFIED INTANGIBLES – net | 121,782 | 126,315 |
OTHER ASSETS | 942 | 917 |
TOTAL ASSETS | 582,390 | 624,575 |
CURRENT LIABILITIES: | ||
Accounts payable | 69,686 | 114,632 |
Contract liabilities | 0 | 1,062 |
Current Portion of Long-Term Debt | 3,250 | 3,250 |
Accrued expenses: | ||
Salaries and wages | 1,253 | 3,668 |
Taxes – other | 1,325 | 849 |
Accrued freight | 2,413 | 1,798 |
Commissions | 1,934 | 2,447 |
Accrued duty | 6,764 | 5,469 |
Accrued interest | 2,822 | 2,133 |
Income tax payable | 1,172 | 0 |
Other | 5,675 | 4,828 |
Total current liabilities | 96,294 | 140,136 |
Long-term debt | 253,646 | 266,794 |
LONG-TERM TAXES PAYABLE | 169 | 169 |
LONG-TERM LEASE | 8,216 | 8,809 |
DEFERRED INCOME TAXES | 8,006 | 10,293 |
DEFERRED LIABILITIES | 586 | 519 |
TOTAL LIABILITIES | 366,917 | 426,720 |
SHAREHOLDERS' EQUITY: | ||
Common stock, no par value; 25,000,000 shares authorized; issued and outstanding December 31, 2022 - 7,339,011; December 31, 2021 - 7,302,199 | 69,752 | 68,061 |
Retained earnings | 145,721 | 129,794 |
Total shareholders' equity | 215,473 | 197,855 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 582,390 | $ 624,575 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares $ / shares in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 7,339,011 | 7,302,199 |
Common stock, shares outstanding (in shares) | 7,339,011 | 7,302,199 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
NET SALES | $ 615,475 | $ 514,227 | $ 277,309 |
COST OF GOODS SOLD | 390,256 | 319,691 | 172,574 |
GROSS MARGIN | 225,219 | 194,536 | 104,735 |
OPERATING EXPENSES | 181,181 | 158,564 | 77,565 |
INCOME FROM OPERATIONS | 44,038 | 35,972 | 27,170 |
INTEREST AND OTHER EXPENSES | (18,270) | (10,603) | (205) |
INCOME BEFORE INCOME TAX EXPENSE | 25,768 | 25,369 | 26,965 |
INCOME TAX EXPENSE | 5,303 | 4,810 | 6,001 |
NET INCOME | $ 20,465 | $ 20,559 | $ 20,964 |
INCOME PER SHARE | |||
Basic (in dollars per share) | $ 2.80 | $ 2.82 | $ 2.87 |
Diluted (in dollars per share) | $ 2.78 | $ 2.77 | $ 2.86 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | |||
Basic (in shares) | 7,317 | 7,283 | 7,304 |
Diluted (in shares) | 7,369 | 7,409 | 7,337 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Common Stock Including Additional Paid in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total | |
BALANCE (in shares) at Dec. 31, 2019 | 7,355,000 | ||||
BALANCE at Dec. 31, 2019 | $ 67,993 | $ 0 | $ 96,663 | $ 164,656 | |
Net income | 20,964 | 20,964 | |||
Dividends paid on common stock | (4,093) | (4,093) | |||
Repurchase of common stock (in shares) | (129,000) | ||||
Repurchase of common stock | $ (2,938) | (2,938) | |||
Stock issued for options exercised, including tax benefits (in shares) | 8,000 | ||||
Stock issued for options exercised, including tax benefits | $ 136 | 136 | |||
Stock compensation expense (in shares) | 14,000 | ||||
Stock compensation expense | $ 780 | 780 | |||
BALANCE (in shares) at Dec. 31, 2020 | 7,248,000 | ||||
BALANCE at Dec. 31, 2020 | $ 65,971 | 0 | 113,534 | 179,505 | |
Net income | 20,559 | 20,559 | |||
Dividends paid on common stock | (4,299) | (4,299) | |||
Repurchase of common stock | 0 | ||||
Stock issued for options exercised, including tax benefits (in shares) | 47,000 | ||||
Stock issued for options exercised, including tax benefits | $ 825 | 825 | |||
Stock compensation expense (in shares) | 7,000 | ||||
Stock compensation expense | $ 1,265 | 1,265 | |||
BALANCE (in shares) at Dec. 31, 2021 | 7,302,000 | ||||
BALANCE at Dec. 31, 2021 | $ 68,061 | 0 | 129,794 | 197,855 | |
Net income | 20,465 | 20,465 | |||
Dividends paid on common stock | [1] | (4,538) | (4,538) | ||
Repurchase of common stock | $ 0 | ||||
Stock issued for options exercised, including tax benefits (in shares) | 26,000 | 26,050 | |||
Stock issued for options exercised, including tax benefits | $ 461 | 0 | $ 461 | ||
Stock compensation expense (in shares) | 11,000 | ||||
Stock compensation expense | $ 1,230 | 0 | 1,230 | ||
BALANCE (in shares) at Dec. 31, 2022 | 7,339,000 | ||||
BALANCE at Dec. 31, 2022 | $ 69,752 | $ 0 | $ 145,721 | $ 215,473 | |
[1]Quarterly dividend was increased from $0.14 per share to $0.155 per share in the third quarter of 2021. |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends paid on common stock, per share (in dollars per share) | $ 0.62 | $ 0.59 | $ 0.56 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 20,465,000 | $ 20,559,000 | $ 20,964,000 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation and amortization | 12,320,000 | 11,342,000 | 5,240,000 |
Amortization of debt issuance costs | 853,000 | 675,000 | 0 |
Provision for bad debts | 3,254,000 | 302,000 | 452,000 |
Deferred income taxes | (2,209,000) | 2,022,000 | 164,000 |
(Gain) Loss on disposal of assets | (789,000) | 41,000 | 28,000 |
Stock compensation expense | 1,230,000 | 1,265,000 | 780,000 |
Change in assets and liabilities: | |||
Receivables | 28,222,000 | (42,245,000) | (2,725,000) |
Contract receivables | 1,062,000 | 4,108,000 | (424,000) |
Inventories | (4,986,000) | (114,226,000) | (845,000) |
Other current assets | 440,000 | (9,791,000) | (993,000) |
Other assets | 389,000 | (152,000) | (80,000) |
Accounts payable | (45,921,000) | 78,626,000 | 4,459,000 |
Accrued and other liabilities | 468,000 | 2,432,000 | 2,566,000 |
Income taxes | 5,387,000 | (5,313,000) | 1,019,000 |
Contract liabilities | (1,062,000) | (4,520,000) | 836,000 |
Net cash provided by (used in) operating activities | 19,123,000 | (54,875,000) | 31,441,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of fixed assets | (6,702,000) | (21,055,000) | (11,716,000) |
Acquisition of business, net of cash acquired | 0 | (212,408,000) | 0 |
Proceeds from sales of fixed assets | 0 | 0 | 5,000 |
Proceeds from the sale of assets | 5,468,000 | 0 | 0 |
Net cash used in investing activities | (1,234,000) | (233,463,000) | (11,711,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from revolving credit facility | 37,492,000 | 180,072,000 | 20,000,000 |
Repayments on revolving credit facility | (40,263,000) | (34,000,000) | (20,000,000) |
Proceeds from term loan | 0 | 130,000,000 | 0 |
Repayments on term loan | (11,231,000) | (2,438,000) | 0 |
Debt issuance costs | 0 | (4,266,000) | 0 |
Proceeds from stock options | 461,000 | 825,000 | 136,000 |
Repurchase of common stock | 0 | 0 | (2,938,000) |
Dividends paid on common stock | (4,538,000) | (4,299,000) | (4,093,000) |
Net cash (used in) provided by financing activities | (18,079,000) | 265,894,000 | (6,895,000) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (190,000) | (22,444,000) | 12,835,000 |
CASH AND CASH EQUIVALENTS: | |||
BEGINNING OF PERIOD | 5,909,000 | 28,353,000 | 15,518,000 |
END OF PERIOD | $ 5,719,000 | $ 5,909,000 | $ 28,353,000 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. Principles of Consolidation Business Activity six We report our segment information in accordance with prov isions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 280, Segment Reporting . We evaluate business performance based upon several metrics, using segment profit as the primary financial measure. Each of our reporting segments continue to employ consistent accounting policies. As a result of this assessment, we now report our activities in the following three Note 18 Estimates Cash and Cash Equivalents three may not Trade Receivables December 31, 2022 2021 may 606, December 31, 2022 2021 Concentration of Credit Risk 10% December 31, 2022 2021 Supplier and Labor Concentrations not We source a significant portion of our footwear, apparel and gloves from manufacturers in Asia, and primarily in China and Vietnam. We are not Inventories first first Property, Plant and Equipment Years Buildings and improvements 5 - 40 Machinery and equipment 3 - 8 Furniture and fixtures 3 - 8 Lasts, dies, and patterns 3 For income tax purposes, we generally compute depreciation utilizing accelerated methods. Goodwill - represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets of acquired businesses. Goodwill arose from the Acquisition and largely consists of the workforce acquired, expected cost synergies and economies of scale resulting from the business combination. The amount of our goodwill that is deductible for tax purposes is $49.4 million. GAAP has established guidance for reporting information about a company's operating segments, including disclosures related to a company's products and services, geographic areas and major customers. We monitor and review our segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact our reportable segments, as well as our reporting units. As previously stated, our operations represent three December 31, 2022, Goodwill is subject to impairment tests at least annually. We review the carrying amounts of goodwill by reporting unit at least annually, or when indicators of impairment are present, to determine if goodwill may not We may first not not not fourth December 31, 2021. Identified intangible assets not If events or circumstances change, a determination is made by management, in accordance with the accounting standard for "Property, Plant and Equipment" to ascertain whether property, equipment and certain finite-lived intangibles have been impaired based on the sum of expected future undiscounted cash flows from operating activities. If the estimated net cash flows are less than the carrying amount of such assets, we will recognize an impairment loss in an amount necessary to write down the assets to fair value as determined from expected future discounted cash flows. In accordance with the accounting standard for "Intangibles – Goodwill and Other", we test intangible assets with indefinite lives for impairment annually or when conditions indicate impairment may fourth not Note 7 Leases third 2027, Under FASB ASC Topic 842, may twelve not Comprehensive Income two no no Advertising - We expense advertising costs as incurred. Advertising expense was approximately million, million and $8.4 million for 2022 , 2021 and 2020 2021 2022 2020 2021 Shipping Costs - All shipping costs billed to customers have been included in net sales. All outbound shipping costs to customers have been included in operating expenses and totaled approximately million, million and $10.5 million in 2022 , 2021 and 2020 2021 2022 2020 2021 Stock Compensation Expense - Fair Value Measurements The fair value accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. This standard also establishes a three three ● Level 1 ● Level 2 1, not ● Level 3 no The fair values of cash and cash equivalents, receivables, and payables approximated their carrying values because of the short-term nature of these instruments. Receivables consist primarily of amounts due from our customers, net of allowances, amounts due from employees (salespersons’ advances in excess of commissions earned and employee travel advances); other customer receivables, net of allowances; and expected insurance recoveries. The carrying amounts of our long-term credit facilities and other short-term financing obligations also approximate fair value, as they are comparable to the available financing in the marketplace during the year. The fair value of our revolving line of credit is categorized as Level 2. Deferred Compensation Plan Assets and Liabilities On December 14, 2018, January 1, 2019. 1 Effective August 18, 2020, second 1 |
Note 2 - Accounting Standards U
Note 2 - Accounting Standards Updates | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | 2. Recently Issued Accounting Pronouncements Rocky Brands, Inc. is currently evaluating the impact of certain ASUs on its Consolidated Financial Statements or Notes to the Consolidated Financial Statements: Standard Description Anticipated Adoption Period Effect on the financial statements or other significant matters ASU 2016 13, The pronouncement seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Q1 2023 We do not Accounting Standards Adopted in 2021 Standard Description Effect on the financial statements or other significant matters ASU 2019 12, 740 This pronouncement is intended to simplify various aspects related to accounting for income taxes. ASU 2019 12 740 We adopted the new standard in Q1 2021 not |
Note 3 - Business Acquisition
Note 3 - Business Acquisition | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. The Performance and Lifestyle Footwear Business of Honeywell International Inc. On January 24, 2021, On March 15, 2021 ( two Note 9 for information regarding the two The Acquisition expanded our brand portfolio to include Muck, XTRATUF, Servus, Ranger, and NEOS brands (the "Acquired Brands"). We acquired 100% of the voting interests of certain subsidiaries and additional assets comprising the performance and lifestyle footwear business of Honeywell with the Acquisition. On September 30, 2022, Note 4 Through the Acquisition, we have greatly enhanced our powerful portfolio of footwear brands and significantly increased our sales and profitability. We acquired a well-run business with a corporate culture and a customer base similar to ours, which provides meaningful growth opportunities within our existing product categories as well as an entry into new market segments. Its innovative and authentic product collections complement our existing offering with minimal overlap, which we believe will allow us to strengthen our wholesale relationships and serve a wider consumer audience. At the same time, we plan to leverage our existing advanced fulfillment capabilities to improve distribution of the Acquired Brands to wholesale customers and accelerate direct-to-consumer penetration. In connection with the Acquisition, we also entered into employment agreements with seven seven We acquired multiple leases through the Acquisition including the lease of our Rock Island and China manufacturing facilities and an office building lease in Westwood, Massachusetts. We closed the office in Westwood, Massachusetts on December 31, 2022. The Acquisition contributed net sales of $242.8 million to our consolidated operating results for the year ended December 31, 2022. December 31, 2022. Acquisition-related costs Costs incurred to complete and integrate the Acquisition are expensed as incurred and included in "operating expenses" in the accompanying consolidated statements of operations. During the years e nded December 31, 2022, 2021, 2020 $3.5 million, $11.9 million and $0.7 million, respectively, of Purchase Price Allocation The Acquisition has been accounted for under the business combinations accounting guidance. As a result, we have applied acquisition accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the Acquisition Date. The aggregate closing price noted above was allocated to the major categories of assets acquired and liabilities assumed based on their fair values at the Acquisition Date using primarily Level 2 3 2 3 The allocation of the purchase price to the assets acquired and liabilities assumed, including the residual amount allocated to goodwill is not one The following table summarizes the consideration paid and estimated fair value of the assets acquired and liabilities assumed as of the Acquisition Date. ($ in thousands) Fair Value Cash $ 2,655 Accounts receivable (1) 36,734 Inventories (2) 41,057 Property, plant and equipment 16,243 Goodwill (3) 50,246 Intangible assets 98,620 Other assets 1,250 Accounts payable (18,108 ) Accrued expenses (13,634 ) Total identifiable net assets 215,063 Cash acquired (2,655 ) Total cash paid, net of cash acquired $ 212,408 ( 1 ( 2 twelve December 31, 2021, ( 3 Unaudited Pro Forma Financial Information The following unaudited pro forma results of operations assume that the Acquisition occurred at the beginning of the periods presented. These unaudited pro forma results are presented for information purposes only and are not December 31, 2021. mately $3.5 million, $11.9 million twelve December 31, 2022, 2021, 2020, Year Ended December 31, ($ in thousands, except per share amount) 2022 2021 2020 Net sales $ 615,475 $ 552,905 $ 482,562 Net income $ 23,250 $ 40,248 $ 41,726 Diluted earnings per share $ 3.16 $ 5.43 $ 5.69 |
Note 4 - Asset Sale
Note 4 - Asset Sale | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 4. On September 30, 2022, September 30, 2022. twelve December 31, 2022. twelve December 31, 2022. |
Note 5 - Inventories
Note 5 - Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 5. Inventories are comprised of the following: December 31, December 31, ($ in thousands) 2022 2021 Raw materials $ 16,541 $ 20,933 Work-in-process 933 1,316 Finished goods 217,926 210,215 Total $ 235,400 $ 232,464 In accordance with ASC 606, December 31, 2022 December 31, 2021 |
Note 6 - Property, Plant, and E
Note 6 - Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 6. Property, plant, and equipment is comprised of the following: December 31, December 31, ($ in thousands) 2022 2021 Land $ 972 $ 972 Buildings 37,601 36,456 Machinery and equipment 60,942 57,304 Furniture and fixtures 2,022 2,548 Lasts, dies and patterns 13,973 12,360 Construction work-in-progress 11,798 14,452 Total 127,308 124,092 Less - accumulated depreciation (69,949 ) (64,103 ) Net Property, Plant and Equipment $ 57,359 $ 59,989 We incurred approximately $9.2 million, $8.8 million, and $5.2 million in depreciation expense for 2022 2021, 2020, |
Note 7 - Identified Intangible
Note 7 - Identified Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 7. A schedule of identified intangible assets is as follows: Gross Accumulated Carrying ($ in thousands) Amount Amortization Amount December 31, 2022 Trademarks Wholesale (1) $ 71,979 - $ 71,979 Retail (2) 9,220 - 9,220 Patents 895 $ 826 69 Customer relationships (3) 46,006 5,492 40,514 Total Intangibles $ 128,100 $ 6,318 $ 121,782 ( 1 March 15, 2021. December 31, 2022 d (see Note 4 ). ( 2 March 15, 2021. ( 3 March 15, 2021. December 31, 2022 and (see Note 4 ). Gross Accumulated Carrying ($ in thousands) Amount Amortization Amount December 31, 2021 Trademarks Wholesale (1) $ 72,579 - $ 72,579 Retail (2) 9,220 - 9,220 Patents 895 $ 804 91 Customer relationships (3) 46,900 2,475 44,425 Total Intangibles $ 129,594 $ 3,279 $ 126,315 ( 1 March 15, 2021. ( 2 March 15, 2021. ( 3 March 15, 2021. The weighted average remaining life for our patents is 7.1 years. A schedule of approximate actual and expected amortization expense related to finite-lived intangible assets is as follows: Amortization ($ in thousands) Expense 2023 3,011 2024 3,074 2025 3,070 2026 3,067 2027 3,064 2028+ 25,297 Indefinite lived intangible assets, such as trademarks are reviewed for impairment testing annually, more frequently if necessary. We perform such testing of indefinite-lived intangible assets in the fourth not In assessing whether indefinite-lived intangible assets are impaired, we must make certain estimates and assumptions regarding future cash flows, long-term growth rates of our business, operating margins, weighted average cost of capital and other factors such as: discount rates, royalty rates, cost of capital, and market multiples to determine the fair value of our assets. These estimates and assumptions require management’s judgment, and changes to these estimates and assumptions could materially affect the determination of fair value and/or impairment for each of our indefinite-lived intangible assets. Future events could cause us to conclude that indications of intangible asset impairment exist. Impairment may 2022 2021 We evaluate our finite and indefinite lived intangible assets under the terms and provisions of the accounting standards for "Intangibles - Goodwill and Other" and "Property, Plant and Equipment." These pronouncements require that we compare the fair value of an intangible asset with its carrying amount. The results of our 2022 2021 |
Note 8 - Other Assets
Note 8 - Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Other Assets Disclosure [Text Block] | 8. Other assets consist of the following: December 31, December 31, ($ in thousands) 2022 2021 Long-term deposits $ 607 $ 606 NQDC plan assets 335 311 Total $ 942 $ 917 |
Note 9 - Long-term Debt
Note 9 - Long-term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 9. LONG-TERM DEBT On March 15, 2021, June 30, 2021. 4.00, 4.00, 3.00, 3.00, June 2022, second second November 2022. November 2022, June 2023 Our Term Facility is collateralized by a second first March 15, 2026. On March 15, 2021, may December 2021, June 2022, June 2022, December 31, 2022, November 2022, third first December 31, 2022, Interest expense was approximately $18.3 million, $10.6 million and $0.2 million, respectively for the years ended December 31, 2022, 2021 2020. The ABL Facility is collateralized by first second March 15, 2026. Average Availability as a Revolver Pricing Level (1) Percentage of Commitments Base Rate Term SOFR Loan Base Rate for FILO Term SOFR FILO Loans I > 66.7% 0.00 % 1.25 % 0.50 % 1.75 % II >33.3% and < or equal to 66.7% 0.00 % 1.50 % 0.50 % 2.00 % III < or equal to 33.3% 0.25 % 1.75 % 0.75 % 2.25 % ( 1 Tier II applied until June 30, 2021. In connection with the Term Facility and ABL Facility, we had to pay certain fees that were capitalized and will be amortized over the life of each respective loan. In addition, the ABL Facility requires us to pay an annual collateral management fee in the amount of $75,000 due on each anniversary of the ABL Facility issuance date, until it matures. Current and long-term debt consisted of the following: December 31, December 31, ($ in thousands) 2022 2021 Term Facility that matures in 2026 with an effective interest rate of 12.14% 8.00% $ 116,332 $ 127,563 ABL Facility that matures in 2026: LIBOR borrowings with an effective interest rate of 5.47% 1.88% 140,000 140,000 Prime borrowings with an effective interest rate of 7.27% 3.50% 3,301 6,072 Total debt 259,633 273,635 Less: Unamortized debt issuance costs (2,737 ) (3,591 ) Total debt, net of debt issuance costs 256,896 270,044 Less: Debt maturing within one year (3,250 ) (3,250 ) Long-term debt $ 253,646 $ 266,794 Credit Facility Covenants The Term Facility contains restrictive covenants which require us to maintain a maximum total leverage ratio and a minimum fixed charge coverage ratio, as defined in the agreement. We are in compliance with all Term Facility covenants as of December 31, 2022 . Our ABL Facility contains a restrictive covenant which requires us to maintain a fixed charge coverage ratio upon a triggering event taking place (as defined in the ABL Facility agreement). During the twelve December 31, 2022 , there were no not Huntington Credit Facility The Huntington credit facility was terminated in March 2021 December 31, 2021 . |
Note 10 - Leases
Note 10 - Leases | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 10 . LEASES The operating ROU asset and operating lease liabilities as of December 31, 2022 December 31, 2021 December 31, December 31, ($ in thousands) 2022 2021 Financial Statement Line Item Assets: Operating ROU Assets $ 11,014 $ 11,428 Leased assets Liabilities: Current Operating $ 3,071 $ 2,985 Other accrued expenses Noncurrent Operating 8,216 8,809 Long-term lease Total leased liabilities $ 11,287 $ 11,794 Maturity of our operating lease liabilities are as follows: Operating ($ in thousands) Leases 2023 $ 3,240 2024 3,076 2025 2,901 2026 2,819 2027 2,235 Total lease payments 14,271 Less: Interest (2,984 ) Present value of lease liabilities $ 11,287 For the twelve December 31, 2022 December 31, 2021 December 31, December 31, 2022 2021 Weighted-average remaining lease term (years) Operating leases 2.8 2.8 Weighted-average discount rate Operating leases 1.4% 1.7% For the twelve December 31, 2022 December 31, 2021 December 31, 2020 December 31, December 31, December 31, ($ in thousands) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,492 $ 1,230 $ 711 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 2,786 $ 13,186 $ 481 The breakdown of rent expense for our operating leases for the twelve December 31, 2022 December 31, 2021 Twelve Months Ended December 31, December 31, December 31, ($ in thousands) 2022 2021 2020 Financial Statement Line Item Operating lease expenses - Manufacturing & Sourcing (1) $ 784 $ 813 $ 678 Cost of goods sold Operating lease expenses (1) 4,595 1,417 433 Operating expenses Total lease expenses $ 5,379 $ 2,230 $ 1,111 ( 1 $2,166,000, twelve December 31, 2022 December 31, 2021 December 31, 2020, |
Note 11 - Benefit Plan
Note 11 - Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | 11. We sponsor a 401 six one Our approximate contributions to the 401 ($ in thousands) 2022 2021 2020 401(k) plan sponsor contributions $ 1,798 $ 1,311 $ 961 Deferred Compensation Plans The Executive Deferred Compensation Plan, which became effective January 1, 2019, Under the Executive Deferred Compensation Plan, participants may December 31 no 100% may ten 60 60, 30 The deferrals are held in a separate trust, which has been established by the Company to administer the Executive Deferred Compensation Plan. The assets of the trust are subject to the claims of the Company’s creditors in the event that the Company becomes insolvent. Consequently, the trust qualifies as a grantor trust for income tax purposes (i.e., a "Rabbi Trust"). The assets held by the trust were approximately $335,000 and $311,000 as of December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 In 2020, second August 18, 2020 Under the Dominican Plan, key employees will receive a set dollar amount, as defined in the agreement, at the later of five 65. 30 five not not and December 31, 2022 December 31, 2021 |
Note 12 - Taxes
Note 12 - Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 12. We account for income taxes in accordance with the accounting standard for "Income Taxes," which requires an asset and liability approach to financial accounting and reporting for income taxes. Accordingly, deferred income taxes have been provided for the temporary differences between the financial reporting and the income tax basis of the Company’s assets and liabilities by applying enacted statutory tax rates applicable to future years to the basis differences. A breakdown of our income tax expense (benefit) for the years ended December 31 ($ in thousands) 2022 2021 2020 Federal: Current $ 5,993 $ 1,554 $ 4,942 Deferred (1,417 ) 1,729 67 Total Federal 4,576 3,283 5,009 State & local: Current 1,415 833 793 Deferred (247 ) (176 ) 97 Total State & local 1,168 657 890 Foreign Current 182 907 102 Deferred (623 ) (37 ) - Total Foreign (441 ) 870 102 Total $ 5,303 $ 4,810 $ 6,001 A reconciliation of recorded Federal income tax expense to the expected expense computed by applying the applicable Federal statutory rate for all periods to income before income taxes follows: Year Ended December 31, ($ in thousands) 2022 2021 2020 Expected expense at statutory rate $ 5,414 $ 5,327 $ 5,662 Increase (decrease) in income taxes resulting from: Exempt income from Dominican Republic operations due to tax holiday (632 ) (1,238 ) (942 ) Tax Rate Differential effect of Foreign Operations 160 45 - Tax on repatriated earnings from Dominican Republic operations 316 941 438 State and local income taxes 734 222 766 Foreign Tax Credit (348 ) (547 ) (30 ) Meals and entertainment 5 2 27 Nondeductible penalties 6 3 20 Provision to return filing adjustments and other (352 ) 55 60 Total $ 5,303 $ 4,810 $ 6,001 Deferred income taxes recorded in the Consolidated Balance Sheets at December 31, 2022 2021 ($ in thousands) 2022 2021 Deferred tax assets: Asset valuation allowances and accrued expenses $ 2,257 $ 239 Inventories 3,300 1,564 State and local income taxes 293 346 Pension and deferred compensation 42 38 Net operating losses 794 302 163(J) Interest limitation 1,077 - Lease asset 2,608 2,696 Total deferred tax assets 10,371 5,185 Deferred tax liabilities: Fixed assets 4,490 4,144 Intangible assets 10,262 7,179 Other assets 793 317 Tollgate tax on Lifestyle earnings 228 228 State and local income taxes 59 1,001 Lease Liability 2,545 2,609 Total deferred tax liabilities 18,377 15,478 Net deferred tax liability $ 8,006 $ 10,293 We have provided Puerto Rico tollgate taxes on approximately $3.7 million of accumulated undistributed earnings of Lifestyle prior to the fiscal year ended June 30, 1994, earnings were repatriated to the United States. In 2001, June 30, 1994; no of tollgate tax would be due as of December 31, 2022. We are subject to tax examinations in various taxing jurisdictions. The earliest exam years open for examination are as follows: Earliest Exam Year Taxing Authority Jurisdiction: U.S. Federal 2019 Various U.S. States 2018 Puerto Rico (U.S. Territory) 2017 Canada 2017 China 2019 Mexico 2021 United Kingdom 2021 Australia 2021 Our policy is to accrue interest and penalties on any uncertain tax position as a component of income tax expense. As of December 31, 2022 not 12 Accounting for uncertainty in income taxes requires financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements. Under this guidance, income tax positions must meet a more-likely-than- not not no |
Note 13 - Shareholders' Equity
Note 13 - Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 13. Repurchase of Common Stock A summary of our previously authorized share repurchase plans, both of which are expired by their terms, is as follows: ($ in thousands, except share and per share amounts) 2021 2020 Maximum authorized share repurchase amount (1) $ 7,500 $ 7,500 Date of plan's authorization by the Board March 2021 February 2020 Funding source Working capital Working capital Number of shares repurchased under the plan (shares) - 129,095 Amount paid for shares repurchased $ - $ 2,938 Weighted average price paid per share $ - $ 22.76 Remaining amount of shares authorized to be purchased under the plan (in dollars) $ 7,500 $ 4,562 ( 1 Common shares can be purchased in the open market or privately negotiated transactions over the next twelve Our previous shareholder repurchase program terminated expired on March 4, 2022. not March 2022. Preferred Shares The Company has authorized 250,000 shares of voting preferred stock with no par value. No shares are issued or outstanding. Also, the Company has authorized 250,000 shares of non-voting preferred stock with no par value. Of these, 125,000 shares have been designated Series A non-voting convertible preferred stock with a stated value of $0.06 December 31, 2022 2021 |
Note 14 - Share-based Compensat
Note 14 - Share-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 14. On May 7, 2014, 2014 May 2021 "2014 2014 may 2014 December 31, 2022 2014 On January 24, 2021, 2021 "2021 seven 2021 not 5635 December 31, 2022 2021 Stock Options The following table presents the weighted average assumptions used in the option-pricing model at the grant date for options granted during the years ended December 31: 2022 2021 Assumptions: Risk-free interest rate 0.82 % 0.32 % Expected dividend yield 2.15 % 1.18 % Expected volatility of Rocky Brand's common stock 54.70 % 51.87 % Expected option term (years) 5.1 5.6 Weighted-average grant date fair value per share $ 12.85 $ 12.16 For the years ended December 31, 2022 2021 ($ in thousands) 2022 2021 Share-based compensation expense $ 1,230 $ 1,265 Tax benefit 221 192 The following summarizes stock option activity for the year ended December 31, 2022 Weighted Weighted Average Average Remaining Aggregate ($ amounts are per share) Shares Exercise Price Actual Term Intrinsic Value Options outstanding at January 1, 2022 328,000 $ 26.94 Issued 85,500 39.80 Exercised (26,050 ) 17.69 Forfeited or expired (46,014 ) 41.71 Options outstanding at December 31, 2022 341,436 $ 28.87 5.1 $ 363,595 Expected to vest 118,736 $ 31.70 7.7 $ 34,364 Exercisable at December 31, 2022 222,700 $ 27.37 3.7 $ 329,231 In the first 2022 not December 31, 2022 2021 2020, In the first 2022 Restricted Stock Units The following table summarizes the status of the Company's restricted stock units and activity as of December 31, 2022 Restricted Stock Units Weighted-Average Grant Date ($ amounts are per share) Quantity Fair Value Per Share Nonvested at January 1, 2022 - $ - Granted 1,954 25.58 Vested - - Forfeited - - Nonvested at December 31, 2022 1,954 $ 25.58 As of December 31, 2022 During the years ended December 31, 2022 2021 2020 |
Note 15 - Earnings Per Share
Note 15 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 15. Basic earnings per share ("EPS") is computed by dividing net income applicable to common shareholders by the weighted average number of common shares outstanding during each period. The diluted earnings per share computation includes common share equivalents, when dilutive. A reconciliation of the shares used in the basic and diluted income per common share computation for the years ended December 31, Twelve Months Ended December 31, (shares in thousands) 2022 2021 2020 Basic - weighted average shares outstanding 7,317 7,283 7,304 Dilutive stock options 52 126 33 Diluted - weighted average shares outstanding 7,369 7,409 7,337 Anti-dilutive securities 162 25 149 |
Note 16 - Revenue
Note 16 - Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 16 . REVENUE Nature of Performance Obligations Our products are distributed through three 10,000 Significant Accounting Policies and Judgements Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; this generally occurs upon shipment of our product to our customer, which is when the transfer of control of our product passes to the customer. The duration of our arrangements with our customers are typically one Revenues from sales are recorded at the net sales price, which includes estimates of variable consideration for which reserves are established. Components of variable consideration include prompt payment discounts, volume rebates, and product returns. These reserves, as detailed below, are based on the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable (if the amount is payable to the customer) or a current liability (if the amount is payable to a party other than a customer). The amount of variable consideration which is included in the transaction price may not not December 31, 2022 may When a customer has a right to a prompt payment discount, we estimate the likelihood that the customer will earn the discount using historical data and adjust our estimate when the estimate of the likelihood that a customer will earn the discount changes or the consideration becomes fixed, whichever occurs earlier. The estimated amount of variable consideration is recognized as a credit to trade receivables and a reduction in revenue until the uncertainty of the variable consideration is alleviated. Because most of our customers have payment terms less than six not When a customer is offered a rebate on purchases retroactively, this is accounted for as variable consideration because the consideration for the current and past purchases is not When a right of return is part of the arrangement with the customer, we estimate the expected returns based on an analysis using historical data. We adjust our estimate either when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed, whichever occurs earlier. Please see Note 1 Note 5 Trade receivables represent our right to unconditional payment that only relies on the passage of time. Contract receivables represent contractual minimum payments required under non-cancellable contracts with the U.S. Military and other customers with a duration of one Contract liabilities are performance obligations that we expect to satisfy or relieve within the next twelve Items considered immaterial within the context of the contract are recognized as an expense. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue producing transaction, that are collected from customers, are excluded from revenue. Costs associated with our manufacturer’s warranty continue to be recognized as expense when the products are sold in accordance with guidance surrounding product warranties. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are in included in operating expenses. This treatment is consistent with how we accounted for these costs in prior periods. Costs associated with obtaining a contract are expensed as incurred in accordance with the practical expedient in ASC 340 40 one Contract Liabilities The following table provides information about contract liabilities from contracts with our customers. December 31, December 31, ($ in thousands) 2022 2021 Contract liabilities $ - $ 1,062 Significant changes in the contract liabilities balance during the period are as follows: ($ in thousands) Contract liabilities Balance, December 31, 2021 $ 1,062 Non-cancelable contracts with customers entered into during the period - Revenue recognized related to non-cancelable contracts with customers during the period (1,062 ) Balance, December 31, 2022 $ - Disaggregation of Revenue All revenues are recognized at a point in time when control of our products pass to the customer at point of shipment. Because all revenues are recognized at a point in time and are disaggregated by channel, our segment disclosures are consistent with ASC 606 Note 18 |
Note 17 - Supplemental Cash Flo
Note 17 - Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 17. Supplemental cash flow for the years ended December 31, Twelve Months Ended December 31, ($ in thousands) 2022 2021 2020 Interest paid $ 17,501 $ 7,930 $ 151 Federal, state, and local income taxes paid, net $ 1,930 $ 8,638 $ 4,669 Change in contract receivables, net $ 1,062 $ 4,108 $ (424 ) Change in contract liabilities, net $ (1,062 ) $ (4,520 ) $ 836 Property, plant, and equipment purchases in accounts payable $ 976 $ 2,191 $ 2,316 |
Note 18 - Segment Information
Note 18 - Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 18. Reportable Segments three Wholesale. Retail. third first Contract Manufacturing. The following is a summary of segment results for the Wholesale, Retail, and Contract Manufacturing segments for the years ended December 31: Twelve Months Ended December 31, ($ in thousands) 2022 2021 2020 NET SALES: Wholesale $ 484,779 $ 391,070 $ 185,554 Retail 115,354 94,658 72,877 Contract Manufacturing 15,342 28,499 18,878 Total Net Sales $ 615,475 $ 514,227 $ 277,309 GROSS MARGIN: Wholesale $ 165,059 $ 140,166 $ 66,336 Retail 57,817 47,792 34,283 Contract Manufacturing 2,343 6,578 4,116 Total Gross Margin $ 225,219 $ 194,536 $ 104,735 Segment asset information is not Product Group Information December 31: ($ in thousands) 2022 % of Sales 2021 % of Sales 2020 % of Sales Work footwear $ 256,162 41.6 % $ 280,235 54.5 % $ 126,268 45.5 % Outdoor footwear 183,121 29.8 76,031 14.8 21,074 7.6 Western 108,697 17.6 87,425 17.0 61,127 22.0 Duty and commercial military footwear 46,177 7.5 39,715 7.7 41,005 14.8 Military footwear 15,342 2.5 22,767 4.4 18,878 6.8 Other 3,581 0.6 5,149 1.0 5,575 2.0 Apparel 2,395 0.4 2,905 0.6 3,382 1.2 $ 615,475 100.0 % $ 514,227 100.0 % $ 277,309 100.0 % Net sales to foreign countries represented approximately 6.2% of net sales in 2022 2021 2020 The net book value of fixed assets located outside of the U.S. totaled $12.6 million at December 31, 2022, imately $4.6 mill y $8.0 mil |
Note 19 - Restructuring Charges
Note 19 - Restructuring Charges | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | 19. In 2022, $1.0 December 31, 2022. For the year ended December 31, 2022, Employee Severance, Benefits and ($ in thousands) Related Costs Accrued expenses, January 1, 2022 - Restructuring charges $ 1,201 Cash payments (820 ) Accrued expenses, December 31, 2022 $ 381 |
Note 20 - Commitments and Conti
Note 20 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 20 . COMMITMENTS AND CONTINGENCIES We are, from time to time, a party to litigation which arises in the normal course of business. Although the ultimate resolution of pending proceedings cannot be determined, in the opinion of management, the resolution of such proceedings in the aggregate will not Litigation We are currently party to litigation with a manufacturing supplier of the Acquired Brands. While it is not not not not 450 30, Gain Contingency In June 2022, 2021 2022. December 31, 2022, not |
Schedule II - Consolidated Valu
Schedule II - Consolidated Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | ROCKY BRANDS, INC. AND SUBSIDIARIES Schedule II Consolidated Valuation and Qualifying Accounts for the Years Ended December 31, 2022, 2021, 2020 ($ in thousands) Balance at Additions Beginning of Charged to Costs Balance at End Description Period and Expenses Deductions of Period ALLOWANCE FOR DOUBTFUL ACCOUNTS Year ended December 31, 2022 $ 613 $ 3,254 $ (394 ) (1) $ 3,473 Year ended December 31, 2021 $ 242 $ 302 $ 69 (1) $ 613 Year ended December 31, 2020 $ 952 $ 452 $ (1,162 ) (1) $ 242 VALUATION ALLOWANCE FOR DEFERRED TAX ASSETS Year ended December 31, 2022 $ - $ - $ - $ - Year ended December 31, 2021 $ 298 $ - $ (298 ) $ - Year ended December 31, 2020 $ 372 $ - $ (74 ) $ 298 ALLOWANCE FOR DISCOUNTS AND RETURNS Year ended December 31, 2022 $ 2,515 $ 41,374 $ (42,434 ) $ 1,455 Year ended December 31, 2021 $ 1,818 $ 26,454 $ (25,757 ) $ 2,515 Year ended December 31, 2020 $ 1,480 $ 23,223 $ (22,885 ) $ 1,818 ( 1 Amount charged off, net of recoveries |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
Business Activity [Policy Text Block] | Business Activity six We report our segment information in accordance with prov isions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 280, Segment Reporting . We evaluate business performance based upon several metrics, using segment profit as the primary financial measure. Each of our reporting segments continue to employ consistent accounting policies. As a result of this assessment, we now report our activities in the following three Note 18 |
Use of Estimates, Policy [Policy Text Block] | Estimates |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents three may not |
Accounts Receivable [Policy Text Block] | Trade Receivables December 31, 2022 2021 may 606, December 31, 2022 2021 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk 10% December 31, 2022 2021 Supplier and Labor Concentrations not We source a significant portion of our footwear, apparel and gloves from manufacturers in Asia, and primarily in China and Vietnam. We are not |
Inventory, Policy [Policy Text Block] | Inventories first first |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Years Buildings and improvements 5 - 40 Machinery and equipment 3 - 8 Furniture and fixtures 3 - 8 Lasts, dies, and patterns 3 For income tax purposes, we generally compute depreciation utilizing accelerated methods. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill - represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets of acquired businesses. Goodwill arose from the Acquisition and largely consists of the workforce acquired, expected cost synergies and economies of scale resulting from the business combination. The amount of our goodwill that is deductible for tax purposes is $49.4 million. GAAP has established guidance for reporting information about a company's operating segments, including disclosures related to a company's products and services, geographic areas and major customers. We monitor and review our segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact our reportable segments, as well as our reporting units. As previously stated, our operations represent three December 31, 2022, Goodwill is subject to impairment tests at least annually. We review the carrying amounts of goodwill by reporting unit at least annually, or when indicators of impairment are present, to determine if goodwill may not We may first not not not fourth December 31, 2021. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Identified intangible assets not If events or circumstances change, a determination is made by management, in accordance with the accounting standard for "Property, Plant and Equipment" to ascertain whether property, equipment and certain finite-lived intangibles have been impaired based on the sum of expected future undiscounted cash flows from operating activities. If the estimated net cash flows are less than the carrying amount of such assets, we will recognize an impairment loss in an amount necessary to write down the assets to fair value as determined from expected future discounted cash flows. In accordance with the accounting standard for "Intangibles – Goodwill and Other", we test intangible assets with indefinite lives for impairment annually or when conditions indicate impairment may fourth not Note 7 |
Lessee, Leases [Policy Text Block] | Leases third 2027, Under FASB ASC Topic 842, may twelve not |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income two no no |
Advertising Cost [Policy Text Block] | Advertising - We expense advertising costs as incurred. Advertising expense was approximately million, million and $8.4 million for 2022 , 2021 and 2020 2021 2022 2020 2021 |
Shipping Costs [Policy Text Block] | Shipping Costs - All shipping costs billed to customers have been included in net sales. All outbound shipping costs to customers have been included in operating expenses and totaled approximately million, million and $10.5 million in 2022 , 2021 and 2020 2021 2022 2020 2021 |
Share-Based Payment Arrangement [Policy Text Block] | Stock Compensation Expense - |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements The fair value accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. This standard also establishes a three three ● Level 1 ● Level 2 1, not ● Level 3 no The fair values of cash and cash equivalents, receivables, and payables approximated their carrying values because of the short-term nature of these instruments. Receivables consist primarily of amounts due from our customers, net of allowances, amounts due from employees (salespersons’ advances in excess of commissions earned and employee travel advances); other customer receivables, net of allowances; and expected insurance recoveries. The carrying amounts of our long-term credit facilities and other short-term financing obligations also approximate fair value, as they are comparable to the available financing in the marketplace during the year. The fair value of our revolving line of credit is categorized as Level 2. |
Deferred Compensation Plan Assets and Liabilities [Policy Text Block] | Deferred Compensation Plan Assets and Liabilities On December 14, 2018, January 1, 2019. 1 Effective August 18, 2020, second 1 |
Note 1 - Nature of Operations_2
Note 1 - Nature of Operations and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Property, Plant and Equipment Estimated Useful Life [Table Text Block] | Years Buildings and improvements 5 - 40 Machinery and equipment 3 - 8 Furniture and fixtures 3 - 8 Lasts, dies, and patterns 3 |
Note 3 - Business Acquisition (
Note 3 - Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ($ in thousands) Fair Value Cash $ 2,655 Accounts receivable (1) 36,734 Inventories (2) 41,057 Property, plant and equipment 16,243 Goodwill (3) 50,246 Intangible assets 98,620 Other assets 1,250 Accounts payable (18,108 ) Accrued expenses (13,634 ) Total identifiable net assets 215,063 Cash acquired (2,655 ) Total cash paid, net of cash acquired $ 212,408 |
Business Acquisition, Pro Forma Information [Table Text Block] | Year Ended December 31, ($ in thousands, except per share amount) 2022 2021 2020 Net sales $ 615,475 $ 552,905 $ 482,562 Net income $ 23,250 $ 40,248 $ 41,726 Diluted earnings per share $ 3.16 $ 5.43 $ 5.69 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, December 31, ($ in thousands) 2022 2021 Raw materials $ 16,541 $ 20,933 Work-in-process 933 1,316 Finished goods 217,926 210,215 Total $ 235,400 $ 232,464 |
Note 6 - Property, Plant, and_2
Note 6 - Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, December 31, ($ in thousands) 2022 2021 Land $ 972 $ 972 Buildings 37,601 36,456 Machinery and equipment 60,942 57,304 Furniture and fixtures 2,022 2,548 Lasts, dies and patterns 13,973 12,360 Construction work-in-progress 11,798 14,452 Total 127,308 124,092 Less - accumulated depreciation (69,949 ) (64,103 ) Net Property, Plant and Equipment $ 57,359 $ 59,989 |
Note 7 - Identified Intangibl_2
Note 7 - Identified Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Gross Accumulated Carrying ($ in thousands) Amount Amortization Amount December 31, 2022 Trademarks Wholesale (1) $ 71,979 - $ 71,979 Retail (2) 9,220 - 9,220 Patents 895 $ 826 69 Customer relationships (3) 46,006 5,492 40,514 Total Intangibles $ 128,100 $ 6,318 $ 121,782 Gross Accumulated Carrying ($ in thousands) Amount Amortization Amount December 31, 2021 Trademarks Wholesale (1) $ 72,579 - $ 72,579 Retail (2) 9,220 - 9,220 Patents 895 $ 804 91 Customer relationships (3) 46,900 2,475 44,425 Total Intangibles $ 129,594 $ 3,279 $ 126,315 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization ($ in thousands) Expense 2023 3,011 2024 3,074 2025 3,070 2026 3,067 2027 3,064 2028+ 25,297 |
Note 8 - Other Assets (Tables)
Note 8 - Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Other Assets, Noncurrent [Table Text Block] | December 31, December 31, ($ in thousands) 2022 2021 Long-term deposits $ 607 $ 606 NQDC plan assets 335 311 Total $ 942 $ 917 |
Note 9 - Long-term Debt (Tables
Note 9 - Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Qualitative Measure of Debt Facility [Table Text Block] | Average Availability as a Revolver Pricing Level (1) Percentage of Commitments Base Rate Term SOFR Loan Base Rate for FILO Term SOFR FILO Loans I > 66.7% 0.00 % 1.25 % 0.50 % 1.75 % II >33.3% and < or equal to 66.7% 0.00 % 1.50 % 0.50 % 2.00 % III < or equal to 33.3% 0.25 % 1.75 % 0.75 % 2.25 % |
Schedule of Debt [Table Text Block] | December 31, December 31, ($ in thousands) 2022 2021 Term Facility that matures in 2026 with an effective interest rate of 12.14% 8.00% $ 116,332 $ 127,563 ABL Facility that matures in 2026: LIBOR borrowings with an effective interest rate of 5.47% 1.88% 140,000 140,000 Prime borrowings with an effective interest rate of 7.27% 3.50% 3,301 6,072 Total debt 259,633 273,635 Less: Unamortized debt issuance costs (2,737 ) (3,591 ) Total debt, net of debt issuance costs 256,896 270,044 Less: Debt maturing within one year (3,250 ) (3,250 ) Long-term debt $ 253,646 $ 266,794 |
Note 10 - Leases (Tables)
Note 10 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Operating Lease, Assets and Liabilities, Lessee [Table Text Block] | December 31, December 31, ($ in thousands) 2022 2021 Financial Statement Line Item Assets: Operating ROU Assets $ 11,014 $ 11,428 Leased assets Liabilities: Current Operating $ 3,071 $ 2,985 Other accrued expenses Noncurrent Operating 8,216 8,809 Long-term lease Total leased liabilities $ 11,287 $ 11,794 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Operating ($ in thousands) Leases 2023 $ 3,240 2024 3,076 2025 2,901 2026 2,819 2027 2,235 Total lease payments 14,271 Less: Interest (2,984 ) Present value of lease liabilities $ 11,287 |
Lease, Cost [Table Text Block] | December 31, December 31, 2022 2021 Weighted-average remaining lease term (years) Operating leases 2.8 2.8 Weighted-average discount rate Operating leases 1.4% 1.7% December 31, December 31, December 31, ($ in thousands) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,492 $ 1,230 $ 711 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 2,786 $ 13,186 $ 481 Twelve Months Ended December 31, December 31, December 31, ($ in thousands) 2022 2021 2020 Financial Statement Line Item Operating lease expenses - Manufacturing & Sourcing (1) $ 784 $ 813 $ 678 Cost of goods sold Operating lease expenses (1) 4,595 1,417 433 Operating expenses Total lease expenses $ 5,379 $ 2,230 $ 1,111 |
Note 11 - Benefit Plan (Tables)
Note 11 - Benefit Plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Defined Contribution Plan Disclosures [Table Text Block] | ($ in thousands) 2022 2021 2020 401(k) plan sponsor contributions $ 1,798 $ 1,311 $ 961 |
Note 12 - Taxes (Tables)
Note 12 - Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ($ in thousands) 2022 2021 2020 Federal: Current $ 5,993 $ 1,554 $ 4,942 Deferred (1,417 ) 1,729 67 Total Federal 4,576 3,283 5,009 State & local: Current 1,415 833 793 Deferred (247 ) (176 ) 97 Total State & local 1,168 657 890 Foreign Current 182 907 102 Deferred (623 ) (37 ) - Total Foreign (441 ) 870 102 Total $ 5,303 $ 4,810 $ 6,001 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, ($ in thousands) 2022 2021 2020 Expected expense at statutory rate $ 5,414 $ 5,327 $ 5,662 Increase (decrease) in income taxes resulting from: Exempt income from Dominican Republic operations due to tax holiday (632 ) (1,238 ) (942 ) Tax Rate Differential effect of Foreign Operations 160 45 - Tax on repatriated earnings from Dominican Republic operations 316 941 438 State and local income taxes 734 222 766 Foreign Tax Credit (348 ) (547 ) (30 ) Meals and entertainment 5 2 27 Nondeductible penalties 6 3 20 Provision to return filing adjustments and other (352 ) 55 60 Total $ 5,303 $ 4,810 $ 6,001 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ($ in thousands) 2022 2021 Deferred tax assets: Asset valuation allowances and accrued expenses $ 2,257 $ 239 Inventories 3,300 1,564 State and local income taxes 293 346 Pension and deferred compensation 42 38 Net operating losses 794 302 163(J) Interest limitation 1,077 - Lease asset 2,608 2,696 Total deferred tax assets 10,371 5,185 Deferred tax liabilities: Fixed assets 4,490 4,144 Intangible assets 10,262 7,179 Other assets 793 317 Tollgate tax on Lifestyle earnings 228 228 State and local income taxes 59 1,001 Lease Liability 2,545 2,609 Total deferred tax liabilities 18,377 15,478 Net deferred tax liability $ 8,006 $ 10,293 |
Summary of Income Tax Examinations [Table Text Block] | Earliest Exam Year Taxing Authority Jurisdiction: U.S. Federal 2019 Various U.S. States 2018 Puerto Rico (U.S. Territory) 2017 Canada 2017 China 2019 Mexico 2021 United Kingdom 2021 Australia 2021 |
Note 13 - Shareholders' Equity
Note 13 - Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Class of Treasury Stock [Table Text Block] | ($ in thousands, except share and per share amounts) 2021 2020 Maximum authorized share repurchase amount (1) $ 7,500 $ 7,500 Date of plan's authorization by the Board March 2021 February 2020 Funding source Working capital Working capital Number of shares repurchased under the plan (shares) - 129,095 Amount paid for shares repurchased $ - $ 2,938 Weighted average price paid per share $ - $ 22.76 Remaining amount of shares authorized to be purchased under the plan (in dollars) $ 7,500 $ 4,562 |
Note 14 - Share-based Compens_2
Note 14 - Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2022 2021 Assumptions: Risk-free interest rate 0.82 % 0.32 % Expected dividend yield 2.15 % 1.18 % Expected volatility of Rocky Brand's common stock 54.70 % 51.87 % Expected option term (years) 5.1 5.6 Weighted-average grant date fair value per share $ 12.85 $ 12.16 |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block] | ($ in thousands) 2022 2021 Share-based compensation expense $ 1,230 $ 1,265 Tax benefit 221 192 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Weighted Average Average Remaining Aggregate ($ amounts are per share) Shares Exercise Price Actual Term Intrinsic Value Options outstanding at January 1, 2022 328,000 $ 26.94 Issued 85,500 39.80 Exercised (26,050 ) 17.69 Forfeited or expired (46,014 ) 41.71 Options outstanding at December 31, 2022 341,436 $ 28.87 5.1 $ 363,595 Expected to vest 118,736 $ 31.70 7.7 $ 34,364 Exercisable at December 31, 2022 222,700 $ 27.37 3.7 $ 329,231 |
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Restricted Stock Units Weighted-Average Grant Date ($ amounts are per share) Quantity Fair Value Per Share Nonvested at January 1, 2022 - $ - Granted 1,954 25.58 Vested - - Forfeited - - Nonvested at December 31, 2022 1,954 $ 25.58 |
Note 15 - Earnings Per Share (T
Note 15 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Twelve Months Ended December 31, (shares in thousands) 2022 2021 2020 Basic - weighted average shares outstanding 7,317 7,283 7,304 Dilutive stock options 52 126 33 Diluted - weighted average shares outstanding 7,369 7,409 7,337 Anti-dilutive securities 162 25 149 |
Note 16 - Revenue (Tables)
Note 16 - Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | December 31, December 31, ($ in thousands) 2022 2021 Contract liabilities $ - $ 1,062 |
Revenue, Initial Application Period, Cumulative Effect Transition [Table Text Block] | ($ in thousands) Contract liabilities Balance, December 31, 2021 $ 1,062 Non-cancelable contracts with customers entered into during the period - Revenue recognized related to non-cancelable contracts with customers during the period (1,062 ) Balance, December 31, 2022 $ - |
Note 17 - Supplemental Cash F_2
Note 17 - Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Twelve Months Ended December 31, ($ in thousands) 2022 2021 2020 Interest paid $ 17,501 $ 7,930 $ 151 Federal, state, and local income taxes paid, net $ 1,930 $ 8,638 $ 4,669 Change in contract receivables, net $ 1,062 $ 4,108 $ (424 ) Change in contract liabilities, net $ (1,062 ) $ (4,520 ) $ 836 Property, plant, and equipment purchases in accounts payable $ 976 $ 2,191 $ 2,316 |
Note 18 - Segment Information (
Note 18 - Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Twelve Months Ended December 31, ($ in thousands) 2022 2021 2020 NET SALES: Wholesale $ 484,779 $ 391,070 $ 185,554 Retail 115,354 94,658 72,877 Contract Manufacturing 15,342 28,499 18,878 Total Net Sales $ 615,475 $ 514,227 $ 277,309 GROSS MARGIN: Wholesale $ 165,059 $ 140,166 $ 66,336 Retail 57,817 47,792 34,283 Contract Manufacturing 2,343 6,578 4,116 Total Gross Margin $ 225,219 $ 194,536 $ 104,735 |
Schedule of Product Information [Table Text Block] | ($ in thousands) 2022 % of Sales 2021 % of Sales 2020 % of Sales Work footwear $ 256,162 41.6 % $ 280,235 54.5 % $ 126,268 45.5 % Outdoor footwear 183,121 29.8 76,031 14.8 21,074 7.6 Western 108,697 17.6 87,425 17.0 61,127 22.0 Duty and commercial military footwear 46,177 7.5 39,715 7.7 41,005 14.8 Military footwear 15,342 2.5 22,767 4.4 18,878 6.8 Other 3,581 0.6 5,149 1.0 5,575 2.0 Apparel 2,395 0.4 2,905 0.6 3,382 1.2 $ 615,475 100.0 % $ 514,227 100.0 % $ 277,309 100.0 % |
Note 19 - Restructuring Charg_2
Note 19 - Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Employee Severance, Benefits and ($ in thousands) Related Costs Accrued expenses, January 1, 2022 - Restructuring charges $ 1,201 Cash payments (820 ) Accrued expenses, December 31, 2022 $ 381 |
Schedule II - Consolidated Va_2
Schedule II - Consolidated Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Valuation and Qualifying Accounts Disclosure [Table Text Block] | Balance at Additions Beginning of Charged to Costs Balance at End Description Period and Expenses Deductions of Period ALLOWANCE FOR DOUBTFUL ACCOUNTS Year ended December 31, 2022 $ 613 $ 3,254 $ (394 ) (1) $ 3,473 Year ended December 31, 2021 $ 242 $ 302 $ 69 (1) $ 613 Year ended December 31, 2020 $ 952 $ 452 $ (1,162 ) (1) $ 242 VALUATION ALLOWANCE FOR DEFERRED TAX ASSETS Year ended December 31, 2022 $ - $ - $ - $ - Year ended December 31, 2021 $ 298 $ - $ (298 ) $ - Year ended December 31, 2020 $ 372 $ - $ (74 ) $ 298 ALLOWANCE FOR DISCOUNTS AND RETURNS Year ended December 31, 2022 $ 2,515 $ 41,374 $ (42,434 ) $ 1,455 Year ended December 31, 2021 $ 1,818 $ 26,454 $ (25,757 ) $ 2,515 Year ended December 31, 2020 $ 1,480 $ 23,223 $ (22,885 ) $ 1,818 |
Note 1 - Nature of Operations_3
Note 1 - Nature of Operations and Basis of Presentation (Details Textual) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 15, 2021 USD ($) | ||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 3,500 | $ 600 | |||
Contract with Customer, Refund Liability, Total | $ 2,100 | 1,700 | |||
Number of Reportable Segments | 3 | ||||
Goodwill, Ending Balance | $ 50,246 | 50,641 | |||
Advertising Expense | 15,400 | 17,900 | $ 8,400 | ||
Operating Expenses, Total | 181,181 | 158,564 | 77,565 | ||
Shipping and Handling [Member] | |||||
Operating Expenses, Total | 38,500 | $ 25,100 | $ 10,500 | ||
Contract Manufacturing [Member] | |||||
Goodwill, Ending Balance | 0 | ||||
Wholesale [Member] | |||||
Goodwill, Ending Balance | 25,400 | ||||
Retail [Member] | |||||
Goodwill, Ending Balance | 24,800 | ||||
Honeywell International, Inc. [Member] | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 49,400 | ||||
Goodwill, Ending Balance | [1] | $ 50,246 | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Number of Major Customers | 0 | 0 | |||
[1]Goodwill largely consists of the acquired workforce, expected costs synergies and economies of scale resulting from the Acquisition. |
Note 1 - Nature of Operations_4
Note 1 - Nature of Operations and Basis of Presentation - Property, Plant and Equipment Useful Life (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Lasts, Dies and Patterns [Member] | |
Estimated useful lives (Year) | 3 years |
Minimum [Member] | Building Improvements [Member] | |
Estimated useful lives (Year) | 5 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Estimated useful lives (Year) | 3 years |
Minimum [Member] | Furniture and Fixtures [Member] | |
Estimated useful lives (Year) | 3 years |
Maximum [Member] | Building Improvements [Member] | |
Estimated useful lives (Year) | 40 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Estimated useful lives (Year) | 8 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Estimated useful lives (Year) | 8 years |
Note 3 - Business Acquisition_2
Note 3 - Business Acquisition (Details Textual) - Honeywell International, Inc. [Member] - USD ($) $ in Millions | 12 Months Ended | 13 Months Ended | ||||
Mar. 15, 2021 | Jan. 24, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | |
Business Combination, Consideration Transferred, Total | $ 207 | $ 212 | ||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 5.4 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares) | 25,000 | |||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 242.8 | |||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 9.3 | |||||
Business Combination, Acquisition Related Costs | 3.5 | $ 11.9 | $ 0.7 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables, Allowance for Doubtful Accounts | $ 0.6 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | $ 3.5 | $ 3.5 | ||||
Cost of Goods Sold [Member] | ||||||
Expense Related to Step Up Value of Acquired Inventory | $ 3.5 |
Note 3 - Acquisition - Consider
Note 3 - Acquisition - Consideration Paid for the Acquisition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 15, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Goodwill (3) | $ 50,246 | $ 50,641 | |||
Total cash paid, net of cash acquired | $ 0 | $ 212,408 | $ 0 | ||
Honeywell International, Inc. [Member] | |||||
Cash | $ 2,655 | ||||
Accounts receivable (1) | [1] | 36,734 | |||
Inventories (2) | [2] | 41,057 | |||
Property, plant and equipment | 16,243 | ||||
Goodwill (3) | [3] | 50,246 | |||
Intangible assets | 98,620 | ||||
Other assets | 1,250 | ||||
Accounts payable | (18,108) | ||||
Accrued expenses | (13,634) | ||||
Total identifiable net assets | 215,063 | ||||
Cash acquired | (2,655) | ||||
Total cash paid, net of cash acquired | $ 212,408 | ||||
[1]The recorded amount for accounts receivable considers expected uncollectible amounts of approximately $0.6 million in its determination of fair value.[2]Fair value of finished goods inventories included step up value of approximately $3.5 million, all of which was expensed during the twelve months ended December 31, 2021, and is included in "Cost of Goods Sold" in the accompanying consolidated statement of operations.[3]Goodwill largely consists of the acquired workforce, expected costs synergies and economies of scale resulting from the Acquisition. |
Note 3 - Acquisition - Unaudite
Note 3 - Acquisition - Unaudited Pro Forma Financial Information (Details) - Honeywell International, Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net sales | $ 615,475 | $ 552,905 | $ 482,562 |
Net income | $ 23,250 | $ 40,248 | $ 41,726 |
Diluted earnings per share (in dollars per share) | $ 3.16 | $ 5.43 | $ 5.69 |
Note 4 - Asset Sale (Details Te
Note 4 - Asset Sale (Details Textual) - NEOS Brand [Member] - SureWerx [Member] - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2022 | |
Disposal Group, Including Discontinued Operation, Consideration | $ 5.8 | |
Proceeds from Divestiture of Businesses | 5.5 | |
Disposal Group, Including Discontinued Operation, Consideration, Remaining Balance Deposited With Escrow Agent | 0.3 | |
Sales [Member] | ||
Disposal Group, Including Discontinued Operation, Revenue From Sale of Inventory | $ 3.6 | |
Cost of Sales [Member] | ||
Disposal Group, Including Discontinued Operation, Cost of Inventory | $ 2.4 | |
Operating Expense [Member] | ||
Reduction in Operating Expense From Sale of Assets in Disposal Group, Including Discontinued Operation | $ 0.7 |
Note 5 - Inventories (Details T
Note 5 - Inventories (Details Textual) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Contract with Customer, Returns Reserve Asset | $ 1.1 | $ 0.9 |
Note 5 - Inventories - Schedule
Note 5 - Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Raw materials | $ 16,541 | $ 20,933 |
Work-in-process | 933 | 1,316 |
Finished goods | 217,926 | 210,215 |
Total | $ 235,400 | $ 232,464 |
Note 6 - Property, Plant, and_3
Note 6 - Property, Plant, and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation, Total | $ 9.2 | $ 8.8 | $ 5.2 |
Note 6 - Property, Plant, and_4
Note 6 - Property, Plant, and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Land | $ 972 | $ 972 |
Buildings | 37,601 | 36,456 |
Machinery and equipment | 60,942 | 57,304 |
Furniture and fixtures | 2,022 | 2,548 |
Lasts, dies and patterns | 13,973 | 12,360 |
Construction work-in-progress | 11,798 | 14,452 |
Total | 127,308 | 124,092 |
Less - accumulated depreciation | (69,949) | (64,103) |
Net Property, Plant and Equipment | $ 57,359 | $ 59,989 |
Note 7 - Identified Intangibl_3
Note 7 - Identified Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 15, 2021 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 6,318 | $ 3,279 | ||||
Customer Relationships [Member] | ||||||
Finite-Lived Intangible Assets, Gross, Total | [1] | 46,006 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | 5,492 | 2,475 | [2] | |||
Patents [Member] | ||||||
Finite-Lived Intangible Assets, Gross, Total | 895 | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 826 | 804 | ||||
Finite-Lived Intangible Asset, Useful Life (Year) | 7 years 1 month 6 days | |||||
NEOS Brand [Member] | Customer Relationships [Member] | ||||||
Finite-Lived Intangible Assets, Gross, Total | $ 0 | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | |||||
NEOS Brand [Member] | Customer Relationships [Member] | ||||||
Finite-Lived Intangible Assets, Gross, Total | 900 | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | 100 | |||||
Trademarks [Member] | NEOS Brand [Member] | ||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | 0 | |||||
Trademarks [Member] | NEOS Brand [Member] | ||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | 600 | |||||
Trademarks [Member] | Wholesale [Member] | ||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | 71,979 | [3] | $ 45,400 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | |||||
Trademarks [Member] | Retail [Member] | ||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | $ 9,220 | [4] | $ 6,300 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 0 | |||||
[1]Resulted from our Acquisition that occurred on March 15, 2021. Customer relationships relating to the NEOS brand of approximately $0.9 million and related amortization of approximately $0.1 million was reduced to zero at December 31, 2022 as a result of the sale of the NEOS brand (see Note 4).[2]Resulted from our Acquisition that occurred on March 15, 2021.[3]$45.4 million of the total resulted from our Acquisition that occurred on March 15, 2021. NEOS trademarks were reduced from approximately $0.6 million to zero at December 31, 2022 as a result of the sale of the NEOS bran d (see Note 4 ).[4]$6.3 million of the total resulted from our Acquisition that occurred on March 15, 2021. |
Note 7 - Identified Intangibl_4
Note 7 - Identified Intangible Assets - Identified Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 15, 2021 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 6,318 | $ 3,279 | ||||
Total Intangibles | 128,100 | 129,594 | ||||
Carrying amount | 121,782 | 126,315 | ||||
Carrying amount | 121,782 | 126,315 | ||||
Patents [Member] | ||||||
Finite-Lived Intangible Assets, Gross, Total | 895 | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | 826 | 804 | ||||
Carrying amount, finite-lived intangible assets | 69 | |||||
Total Intangibles | 895 | |||||
Carrying amount | 91 | |||||
Customer Relationships [Member] | ||||||
Finite-Lived Intangible Assets, Gross, Total | [1] | 46,006 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | 5,492 | 2,475 | [2] | |||
Carrying amount, finite-lived intangible assets | 40,514 | |||||
Total Intangibles | [2] | 46,900 | ||||
Carrying amount | [2] | 44,425 | ||||
Trademarks [Member] | Wholesale [Member] | ||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | 71,979 | [3] | $ 45,400 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | |||||
Total Intangibles | [4] | 72,579 | ||||
Carrying amount | 72,579 | |||||
Trademarks [Member] | Retail [Member] | ||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | $ 9,220 | [5] | $ 6,300 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | |||||
Total Intangibles | 9,220 | |||||
Carrying amount | $ 9,220 | |||||
[1]Resulted from our Acquisition that occurred on March 15, 2021. Customer relationships relating to the NEOS brand of approximately $0.9 million and related amortization of approximately $0.1 million was reduced to zero at December 31, 2022 as a result of the sale of the NEOS brand (see Note 4).[2]Resulted from our Acquisition that occurred on March 15, 2021.[3]$45.4 million of the total resulted from our Acquisition that occurred on March 15, 2021. NEOS trademarks were reduced from approximately $0.6 million to zero at December 31, 2022 as a result of the sale of the NEOS bran d (see Note 4 ).[4]$45.4 million of the total resulted from our Acquisition that occurred on March 15, 2021.[5]$6.3 million of the total resulted from our Acquisition that occurred on March 15, 2021. |
Note 7 - Identified Intangibl_5
Note 7 - Identified Intangible Assets - Expected Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
2023 | $ 3,011 |
2024 | 3,074 |
2025 | 3,070 |
2026 | 3,067 |
2027 | 3,064 |
2028+ | $ 25,297 |
Note 8 - Other Assets - Other A
Note 8 - Other Assets - Other Assets (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term deposits | $ 607,000 | $ 606,000 |
NQDC plan assets | 335,000 | 311,000 |
Total | $ 942,000 | $ 917,000 |
Note 9 - Long-term Debt (Detail
Note 9 - Long-term Debt (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Nov. 01, 2022 | Jul. 01, 2021 | Mar. 15, 2021 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2023 | Jul. 01, 2022 | |
Interest Expense, Debt, Total | $ 18,300,000 | $ 10,600,000 | $ 200,000 | ||||||
Revolving Credit Facility [Member] | |||||||||
Long-Term Line of Credit, Total | 0 | 0 | |||||||
Term Facility [Member] | |||||||||
Debt Instrument, Face Amount | $ 130,000,000 | ||||||||
Debt Instrument, LIBOR Floor | 1% | ||||||||
Term Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 7% | 7% | |||||||
Debt Instrument, Basis Spread on Variable Rate if Total Average Leverage Ratio is Greater or Equal to 3.50 | 7.50% | ||||||||
Debt Instrument, Basis Spread on Variable Rate if Total Average Leverage Ratio is Less Than 3.50 But Greater Than 3.00 | 7% | ||||||||
Debt Instrument, Basis Spread on Variable Rate if Total Average Leverage Ratio is Less Than 3.00 | 6.50% | ||||||||
Term Facility [Member] | Prime Rate [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate if Total Average Leverage Ratio is Greater or Equal to 3.50 | 6.50% | ||||||||
Debt Instrument, Basis Spread on Variable Rate if Total Average Leverage Ratio is Less Than 3.50 But Greater Than 3.00 | 6% | ||||||||
Debt Instrument, Basis Spread on Variable Rate if Total Average Leverage Ratio is Less Than 3.00 | 5.50% | ||||||||
Term Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 7.50% | ||||||||
The ABL Facility [Member] | Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150,000,000 | 200,000,000 | $ 175,000,000 | $ 165,000,000 | |||||
Line of Credit Facility, Additional Borrowing Capacity upon Request | 50,000,000 | ||||||||
Line of Credit Facility, Increase in Maximum Borrowing Capacity | $ 25,000,000 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 56,200,000 | ||||||||
Debt Instrument, Collateral Fee | 75,000 | ||||||||
The ABL Facility [Member] | Revolving Credit Facility [Member] | Forecast [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | ||||||||
The ABL Facility [Member] | Letter of Credit [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 |
Note 9 - Long-term Debt - Debt
Note 9 - Long-term Debt - Debt Facility Information (Details) - Revolving Credit Facility [Member] | Mar. 15, 2021 | [1] |
Commitments Above 66.7% [Member] | Base Rate [Member] | The ABL Facility [Member] | ||
Rate | 0% | |
Commitments Above 66.7% [Member] | Base Rate [Member] | The ABL Facility FILO Borrowings [Member] | ||
Rate | 0.50% | |
Commitments Above 66.7% [Member] | London Interbank Offered Rate (LIBOR) [Member] | The ABL Facility [Member] | ||
Rate | 1.25% | |
Commitments Above 66.7% [Member] | London Interbank Offered Rate (LIBOR) [Member] | The ABL Facility FILO Borrowings [Member] | ||
Rate | 1.75% | |
Commitmeents Between 33.3% and 66.7% [Member] | Base Rate [Member] | The ABL Facility [Member] | ||
Rate | 0% | |
Commitmeents Between 33.3% and 66.7% [Member] | Base Rate [Member] | The ABL Facility FILO Borrowings [Member] | ||
Rate | 0.50% | |
Commitmeents Between 33.3% and 66.7% [Member] | London Interbank Offered Rate (LIBOR) [Member] | The ABL Facility [Member] | ||
Rate | 1.50% | |
Commitmeents Between 33.3% and 66.7% [Member] | London Interbank Offered Rate (LIBOR) [Member] | The ABL Facility FILO Borrowings [Member] | ||
Rate | 2% | |
Commitments Below 33.3% [Member] | Base Rate [Member] | The ABL Facility [Member] | ||
Rate | 0.25% | |
Commitments Below 33.3% [Member] | Base Rate [Member] | The ABL Facility FILO Borrowings [Member] | ||
Rate | 0.75% | |
Commitments Below 33.3% [Member] | London Interbank Offered Rate (LIBOR) [Member] | The ABL Facility [Member] | ||
Rate | 1.75% | |
Commitments Below 33.3% [Member] | London Interbank Offered Rate (LIBOR) [Member] | The ABL Facility FILO Borrowings [Member] | ||
Rate | 2.25% | |
[1]Until June 30, 2021, Tier II applied. |
Note 9 - Long-term Debt - Curre
Note 9 - Long-term Debt - Current and Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt | $ 259,633 | $ 273,635 |
Less: Unamortized debt issuance costs | (2,737) | (3,591) |
Total debt, net of debt issuance costs | 256,896 | 270,044 |
Less: Debt maturing within one year | (3,250) | (3,250) |
Long-term debt | 253,646 | 266,794 |
Term Facility [Member] | ||
Debt | 116,332 | 127,563 |
The ABL Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt | 140,000 | 140,000 |
The ABL Facility [Member] | Prime Rate [Member] | ||
Debt | $ 3,301 | $ 6,072 |
Note 9 - Long-term Debt - Cur_2
Note 9 - Long-term Debt - Current and Long-term Debt (Details) (Parentheticals) | Dec. 31, 2022 | Dec. 31, 2021 |
Term Facility [Member] | ||
Interest rate | 12.14% | 8% |
The ABL Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Interest rate | 5.47% | 1.88% |
The ABL Facility [Member] | Prime Rate [Member] | ||
Interest rate | 7.27% | 3.50% |
Note 10 - Leases (Details Textu
Note 10 - Leases (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term Lease, Cost | $ 2,166,000 | $ 1,310,000 | $ 103,000 |
Note 10- Leases - Operating Lea
Note 10- Leases - Operating Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
LEASED ASSETS | $ 11,014 | $ 11,428 |
Operating | 8,216 | 8,809 |
Total leased liabilities | 11,287 | 11,794 |
Other accrued expenses [Member] | ||
Operating | $ 3,071 | |
Other Current Liabilities [Member] | ||
Operating | $ 2,985 |
Note 10 - Leases - Maturity of
Note 10 - Leases - Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
2023 | $ 3,240 | |
2024 | 3,076 | |
2025 | 2,901 | |
2026 | 2,819 | |
2027 | 2,235 | |
Total lease payments | 14,271 | |
Less: Interest | (2,984) | |
Present value of lease liabilities | $ 11,287 | $ 11,794 |
Note 10 - Leases - Lease Cost (
Note 10 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Operating leases, weighted-average remaining lease term (Year) | 2 years 9 months 18 days | 2 years 9 months 18 days | ||
Operating leases, weighted-average discount rate | 1.40% | 1.70% | ||
Operating cash flows from operating leases | $ 1,492 | $ 1,230 | $ 711 | |
Operating leases | 2,786 | 13,186 | 481 | |
Operating lease expenses | 5,379 | 2,230 | 1,111 | |
Cost of Sales [Member] | ||||
Operating lease expenses | [1] | 784 | 813 | 678 |
Operating Expense [Member] | ||||
Operating lease expenses | [1] | $ 4,595 | $ 1,417 | $ 433 |
[1]Includes short-term lease expenses of approximately and$2,166,000, $1,310,000 and $103,000 for the twelve months ended December 31, 2022, December 31, 2021 and December 31, 2020, respectively. |
Note 11 - Benefit Plan (Details
Note 11 - Benefit Plan (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 0.25% | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 1% | |
Deferred Compensation Arrangement with Individual, Maximum Base Compensation Deferral Rate | 75% | |
Deferred Compensation Arrangement with Individual, Maximum Other Compensation Deferral Rate | 100% | |
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Percentage | 3% | |
Deferred Compensation Plan Assets | $ 335,000 | $ 311,000 |
Deferred Compensation Liability, Current and Noncurrent, Total | 120,000 | 119,000 |
The Dominican Plan [Member] | ||
Deferred Compensation Liability, Current and Noncurrent, Total | $ 187,000 | $ 107,000 |
Note 11 - Benefit Plan - Contri
Note 11 - Benefit Plan - Contributions to 401(k) Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
401(k) plan sponsor contributions | $ 1,798 | $ 1,311 | $ 961 |
Note 12 - Taxes (Details Textua
Note 12 - Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 1994 | |
Undistributed Earnings of Domestic Subsidiaries | $ 3,700,000 | ||
Foreign Earnings Repatriated | $ 227,563 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | $ 0 | ||
Unrecognized Tax Benefits, Ending Balance | $ 0 |
Note 12 - Taxes - Income Tax Ex
Note 12 - Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | $ 5,993 | $ 1,554 | $ 4,942 |
Deferred | (1,417) | 1,729 | 67 |
Total Federal | 4,576 | 3,283 | 5,009 |
Current | 1,415 | 833 | 793 |
Deferred | (247) | (176) | 97 |
Total State & local | 1,168 | 657 | 890 |
Current | 182 | 907 | 102 |
Deferred | (623) | (37) | 0 |
Total Foreign | (441) | 870 | 102 |
Total | $ 5,303 | $ 4,810 | $ 6,001 |
Note 12 - Taxes - Reconciliatio
Note 12 - Taxes - Reconciliation of Federal Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expected expense at statutory rate | $ 5,414 | $ 5,327 | $ 5,662 |
Exempt income from Dominican Republic operations due to tax holiday | (632) | (1,238) | (942) |
Tax Rate Differential effect of Foreign Operations | 160 | 45 | 0 |
Tax on repatriated earnings from Dominican Republic operations | 316 | 941 | 438 |
State and local income taxes | 734 | 222 | 766 |
Foreign Tax Credit | (348) | (547) | (30) |
Meals and entertainment | 5 | 2 | 27 |
Nondeductible penalties | 6 | 3 | 20 |
Provision to return filing adjustments and other | (352) | 55 | 60 |
Total | $ 5,303 | $ 4,810 | $ 6,001 |
Note 12 - Taxes - Deferred Inco
Note 12 - Taxes - Deferred Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Asset valuation allowances and accrued expenses | $ 2,257 | $ 239 |
Inventories | 3,300 | 1,564 |
State and local income taxes | 293 | 346 |
Pension and deferred compensation | 42 | 38 |
Net operating losses | 794 | 302 |
163(J) Interest limitation | 1,077 | 0 |
Lease asset | 2,608 | 2,696 |
Total deferred tax assets | 10,371 | 5,185 |
Fixed assets | 4,490 | 4,144 |
Intangible assets | 10,262 | 7,179 |
Other assets | 793 | 317 |
Tollgate tax on Lifestyle earnings | 228 | 228 |
State and local income taxes | 59 | 1,001 |
Lease Liability | 2,545 | 2,609 |
Total deferred tax liabilities | 18,377 | 15,478 |
Net deferred tax liability | $ 8,006 | $ 10,293 |
Note 12 - Taxes - Tax Examinati
Note 12 - Taxes - Tax Examinations (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Domestic Tax Authority [Member] | |
Open tax year | 2019 |
State and Local Jurisdiction [Member] | |
Open tax year | 2018 |
Foreign Tax Authority [Member] | Departamento de Hacienda de Puerto Rico [Member] | |
Open tax year | 2017 |
Foreign Tax Authority [Member] | Canada Revenue Agency [Member] | |
Open tax year | 2017 |
Foreign Tax Authority [Member] | State Administration of Taxation, China [Member] | |
Open tax year | 2019 |
Foreign Tax Authority [Member] | Mexican Tax Authority [Member] | |
Open tax year | 2021 |
Foreign Tax Authority [Member] | United Kingdom Tax Authority [Member] | |
Open tax year | 2021 |
Foreign Tax Authority [Member] | Australian Taxation Office [Member] | |
Open tax year | 2021 |
Note 13 - Shareholders' Equit_2
Note 13 - Shareholders' Equity (Details Textual) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred Stock, Shares Authorized (in shares) | 250,000 | |
Preferred Stock, No Par Value (in dollars per share) | $ 0 | |
Preferred Stock, Shares Issued, Total (in shares) | 0 | |
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | |
Non-voting Preferred Stock [Member] | ||
Preferred Stock, Shares Authorized (in shares) | 250,000 | |
Preferred Stock, No Par Value (in dollars per share) | $ 0 | |
Series A Non-voting Convertible Preferred Stock [Member] | ||
Preferred Stock, Shares Authorized (in shares) | 125,000 | |
Preferred Stock, Shares Issued, Total (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.06 |
Note 13 - Shareholders' Equit_3
Note 13 - Shareholders' Equity - Authorized Share Repurchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Maximum authorized share repurchase amount (1) | [1] | $ 7,500 | $ 7,500 |
Number of shares repurchased under the plan (shares) (in shares) | 0 | 129,095 | |
Amount paid for shares repurchased | $ 0 | $ 2,938 | |
Weighted average price paid per share (in dollars per share) | $ 0 | $ 22.76 | |
Remaining amount of shares authorized to be purchased under the plan (in dollars) | $ 7,500 | $ 4,562 | |
[1]Common shares can be purchased in the open market or privately negotiated transactions over the next twelve months from the date of plan authorization. |
Note 14 - Share-based Compens_3
Note 14 - Share-based Compensation (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 24, 2021 | May 31, 2021 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 85,500 | |||||
Proceeds from Stock Options Exercised | $ 461,000 | $ 825,000 | $ 136,000 | |||
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture (in shares) | 10,762 | 6,868 | 10,456 | |||
Share-Based Payment Arrangement, Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 54,000 | |||||
Share-Based Payment Arrangement, Nonemployee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 31,500 | |||||
Non-qualified Stock Options [Member] | Key Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 25,000 | |||||
Share-Based Payment Arrangement, Option [Member] | Share-Based Payment Arrangement, Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 5 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | |||||
Share-Based Payment Arrangement, Option [Member] | Share-Based Payment Arrangement, Nonemployee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 5 years | |||||
Non-vested Stock Options and Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 148,000 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years 9 months 18 days | |||||
The 2014 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 600,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 1,100,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 526,106 | |||||
The 2021 Plan [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 0 |
Note 14 - Share-based Compens_4
Note 14 - Share-based Compensation - Assumptions (Details) - Share-Based Payment Arrangement, Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Risk-free interest rate | 0.82% | 0.32% |
Expected dividend yield | 2.15% | 1.18% |
Expected volatility of Rocky Brand's common stock | 54.70% | 51.87% |
Expected option term (years) (Year) | 5 years 1 month 6 days | 5 years 7 months 6 days |
Weighted-average grant date fair value per share (in dollars per share) | $ 12.85 | $ 12.16 |
Note 14 - Share-based Compens_5
Note 14 - Share-based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based compensation expense | $ 1,230 | $ 1,265 |
Tax benefit | $ 221 | $ 192 |
Note 14 - Share-based Compens_6
Note 14 - Share-based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Options outstanding (in shares) | shares | 328,000 |
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 26.94 |
Issued (in shares) | shares | 85,500 |
Issued, weighted average exercise price (in dollars per share) | $ / shares | $ 39.80 |
Exercised (in shares) | shares | (26,050) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 17.69 |
Forfeited or expired (in shares) | shares | (46,014) |
Forfeited or expired, weighted average exercise price (in dollars per share) | $ / shares | $ 41.71 |
Options outstanding (in shares) | shares | 341,436 |
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 28.87 |
Options outstanding, weighted average remaining term (Year) | 5 years 1 month 6 days |
Options outstanding, intrinsic value | $ | $ 363,595 |
Expected to vest (in shares) | shares | 118,736 |
Expected to vest, weighted average exercise price (in dollars per share) | $ / shares | $ 31.70 |
Expected to vest, weighted average remaining term (Year) | 7 years 8 months 12 days |
Expected to vest, intrinsic value | $ | $ 34,364 |
Exercisable (in shares) | shares | 222,700 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 27.37 |
Exercisable, weighted average remaining term (Year) | 3 years 8 months 12 days |
Exercisable, intrinsic value | $ | $ 329,231 |
Note 14 - Share-based Compens_7
Note 14 - Share-based Compensation - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Nonvested (in shares) | shares | 0 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Granted (in shares) | shares | 1,954 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 25.58 |
Vested (in shares) | shares | 0 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Forfeited (in shares) | shares | 0 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Nonvested (in shares) | shares | 1,954 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 25.58 |
Note 15 - Earnings Per Share -
Note 15 - Earnings Per Share - Basic and Diluted Income Per Common Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic (in shares) | 7,317 | 7,283 | 7,304 |
Dilutive stock options (in shares) | 52 | 126 | 33 |
Diluted - weighted average shares outstanding (in shares) | 7,369 | 7,409 | 7,337 |
Anti-dilutive securities (in shares) | 162 | 25 | 149 |
Note 16 - Revenue (Details Text
Note 16 - Revenue (Details Textual) | 12 Months Ended |
Dec. 31, 2022 | |
Number of Operating Segments | 3 |
Maximum [Member] | |
Contract with Customer, Period (Year) | 1 year |
Capitalized Contract Cost, Amortization Period (Year) | 1 year |
Note 16 - Revenue - Contract Li
Note 16 - Revenue - Contract Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Contract liabilities | $ 0 | $ 1,062 |
Note 16 - Revenue - Changes in
Note 16 - Revenue - Changes in Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Balance | $ 1,062 |
Non-cancelable contracts with customers entered into during the period | 0 |
Revenue recognized related to non-cancelable contracts with customers during the period | (1,062) |
Balance | $ 0 |
Note 17 - Supplemental Cash F_3
Note 17 - Supplemental Cash Flow Information - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest paid | $ 17,501 | $ 7,930 | $ 151 |
Federal, state, and local income taxes paid, net | 1,930 | 8,638 | 4,669 |
Change in contract receivables, net | 1,062 | 4,108 | (424) |
Change in contract liabilities, net | (1,062) | (4,520) | 836 |
Property, plant, and equipment purchases in accounts payable | $ 976 | $ 2,191 | $ 2,316 |
Note 18 - Segment Information_2
Note 18 - Segment Information (Details Textual) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2022 USD ($) | Dec. 31, 2020 | Dec. 31, 2021 USD ($) | |
Number of Reportable Segments | 3 | |||
Number of Stores | 10,000 | |||
Property, Plant and Equipment, Net, Total | $ 57,359 | $ 59,989 | ||
Non-US [Member] | ||||
Property, Plant and Equipment, Net, Total | 12,600 | |||
DOMINICAN REPUBLIC | ||||
Property, Plant and Equipment, Net, Total | 4,600 | |||
CHINA | ||||
Property, Plant and Equipment, Net, Total | $ 8,000 | |||
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Geographic Distribution, Foreign [Member] | ||||
Concentration Risk, Percentage | 6.90% | 6.20% | 0.80% |
Note 18 - Segment Information -
Note 18 - Segment Information - Summary of Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
NET SALES | $ 615,475 | $ 514,227 | $ 277,309 |
GROSS MARGIN | 225,219 | 194,536 | 104,735 |
Wholesale [Member] | |||
NET SALES | 484,779 | 391,070 | 185,554 |
GROSS MARGIN | 165,059 | 140,166 | 66,336 |
Retail [Member] | |||
NET SALES | 115,354 | 94,658 | 72,877 |
GROSS MARGIN | 57,817 | 47,792 | 34,283 |
Contract Manufacturing [Member] | |||
NET SALES | 15,342 | 28,499 | 18,878 |
GROSS MARGIN | $ 2,343 | $ 6,578 | $ 4,116 |
Note 18 - Segment Information_3
Note 18 - Segment Information - Product Group Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net sales | $ 615,475 | $ 514,227 | $ 277,309 |
Net sales, percent | 100% | 100% | 100% |
Work Footwear [Member] | |||
Net sales | $ 256,162 | $ 280,235 | $ 126,268 |
Net sales, percent | 41.60% | 54.50% | 45.50% |
Outdoor Footwear [Member] | |||
Net sales | $ 183,121 | $ 76,031 | $ 21,074 |
Net sales, percent | 29.80% | 14.80% | 7.60% |
Western Footwear [Member] | |||
Net sales | $ 108,697 | $ 87,425 | $ 61,127 |
Net sales, percent | 17.60% | 17% | 22% |
Duty and Commercial Military Footwear [Member] | |||
Net sales | $ 46,177 | $ 39,715 | $ 41,005 |
Net sales, percent | 7.50% | 7.70% | 14.80% |
Military Footwear [Member] | |||
Net sales | $ 15,342 | $ 22,767 | $ 18,878 |
Net sales, percent | 2.50% | 4.40% | 6.80% |
Product and Service, Other [Member] | |||
Net sales | $ 3,581 | $ 5,149 | $ 5,575 |
Net sales, percent | 0.60% | 1% | 2% |
Apparel [Member] | |||
Net sales | $ 2,395 | $ 2,905 | $ 3,382 |
Net sales, percent | 0.40% | 0.60% | 1.20% |
Note 19 - Restructuring Charg_3
Note 19 - Restructuring Charges - Restructuring Activities (Details) - Employee Severance [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accrued expenses | $ 0 |
Restructuring charges | 1,201 |
Cash payments | (820) |
Accrued expenses | $ 381 |
Note 20 - Commitments and Con_2
Note 20 - Commitments and Contingencies (Details Textual) - Overpaid Duties [Member] $ in Millions | 6 Months Ended |
Dec. 31, 2022 USD ($) | |
Gain Contingency, Unrecorded Amount | $ 7.7 |
Proceeds From Contingency | $ 3.2 |
Schedule II - Consolidated Va_3
Schedule II - Consolidated Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | ||||
Balance at beginning of period | $ 613 | $ 242 | $ 952 | |
Additions charged to costs and expenses | 3,254 | 302 | 452 | |
Deductions | [1] | (394) | 69 | (1,162) |
Balance at end of period | 3,473 | 613 | 242 | |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | ||||
Balance at beginning of period | 0 | 298 | 372 | |
Additions charged to costs and expenses | 0 | 0 | 0 | |
Deductions | 0 | (298) | (74) | |
Balance at end of period | 0 | 298 | ||
Allowance for Discounts and Returns [Member] | ||||
Balance at beginning of period | 2,515 | 1,818 | 1,480 | |
Additions charged to costs and expenses | 41,374 | 26,454 | 23,223 | |
Deductions | (42,434) | (25,757) | (22,885) | |
Balance at end of period | $ 1,455 | $ 2,515 | $ 1,818 | |
[1]Amount charged off, net of recoveries |