Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 04, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SYSTEMAX INC | ||
Entity Central Index Key | 945114 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $155,581,532 | ||
Entity Common Stock, Shares Outstanding | 36,813,158 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash | $165 | $181.40 |
Accounts receivable, net of allowances of $15.8 and $16.7 | 355.5 | 333.3 |
Inventories | 289.9 | 321.8 |
Assets available for sale | 0 | 1.1 |
Prepaid expenses and other current assets | 15.9 | 16.3 |
Deferred income taxes | 1.7 | 2.3 |
Total current assets | 828 | 856.2 |
Property, plant and equipment, net | 41.2 | 59.4 |
Deferred income taxes | 13.5 | 15.3 |
Goodwill and intangibles | 7.4 | 6.1 |
Other assets | 4.8 | 5.2 |
Total assets | 894.9 | 942.2 |
Current liabilities: | ||
Accounts payable | 420.2 | 418.7 |
Accrued expenses and other current liabilities | 93 | 89.2 |
Current portion of long term debt | 2.7 | 2.5 |
Total current liabilities | 515.9 | 510.4 |
Long-term debt | 0.9 | 2.9 |
Other liabilities | 18.5 | 22.7 |
Total liabilities | 535.3 | 536 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, par value $.01 per share, authorized 25 million shares; issued none | ||
Common stock, par value $.01 per share, authorized 150 million shares; issued 38,861,992 and 38,861,992 shares; outstanding 36,808,158 and 36,729,295 shares | 0.4 | 0.4 |
Additional paid-in capital | 184.3 | 183.3 |
Treasury stock at cost - 2,053,834 and 2,132,697 shares | -25.4 | -26.4 |
Retained earnings | 209.2 | 246.7 |
Accumulated other comprehensive income (loss) | -8.9 | 2.2 |
Total shareholders' equity | 359.6 | 406.2 |
Total liabilities and shareholders' equity | $894.90 | $942.20 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Current assets: | ||
Accounts receivable, allowances | $15.80 | $16.70 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 38,861,992 | 38,861,992 |
Common stock, shares outstanding (in shares) | 36,808,158 | 36,729,295 |
Treasury stock (in shares) | 2,053,834 | 2,132,697 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Net sales | $3,442.80 | $3,352.30 | $3,544.30 |
Cost of sales | 2,949.60 | 2,869.40 | 3,058.50 |
Gross profit | 493.2 | 482.9 | 485.8 |
Selling, general and administrative expenses | 494.7 | 481.3 | 479.4 |
Special charges, net | 24.4 | 22.2 | 46.3 |
Operating loss from continuing operations | -25.9 | -20.6 | -39.9 |
Foreign currency exchange loss | 5.4 | 0.1 | 0.3 |
Interest and other income, net | 0 | -0.4 | -0.3 |
Interest expense | 1.3 | 1.5 | 1.7 |
Loss from continuing operations before income taxes | -32.6 | -21.8 | -41.6 |
Provision for (benefit from) income taxes | 4.9 | 22 | -33.6 |
Loss from continuing operations | -37.5 | -43.8 | -8 |
Loss from discontinued operations, net of tax | 0 | 0 | -0.3 |
Net loss | ($37.50) | ($43.80) | ($8.30) |
Loss from continuing operations and net loss per common share: | |||
Basic (in dollars per share) | ($1.01) | ($1.18) | ($0.22) |
Diluted (in dollars per share) | ($1.01) | ($1.18) | ($0.22) |
Weighted average common and common equivalent shares: | |||
Basic (in shares) | 37.1 | 37 | 36.9 |
Diluted (in shares) | 37.1 | 37 | 36.9 |
Dividends declared (in dollars per share) | $0 | $0 | $0.25 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net loss | ($37.50) | ($43.80) | ($8.30) |
Other comprehensive income (loss): | |||
Foreign currency translation | -11.1 | 1.2 | 5 |
Total comprehensive loss | ($48.60) | ($42.60) | ($3.30) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Loss from continuing operations | ($37.50) | ($43.80) | ($8) |
Adjustments to reconcile loss from continuing operations to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 16.3 | 19.3 | 18 |
Asset impairment | 10.2 | 4.1 | 39.9 |
Provision (benefit) for deferred income taxes | 0.5 | 26.4 | -36.6 |
Provision for returns and doubtful accounts | 8.9 | 4 | 5 |
Compensation expense related to equity compensation plans | 1.5 | 2.9 | 4.1 |
Excess tax benefit from exercises of stock options | 0 | -0.1 | -0.5 |
Loss on dispositions and abandonment | 0.1 | 0.1 | 0.3 |
Changes in operating assets and liabilities: | |||
Accounts receivable | -55 | -23.4 | -25.4 |
Inventories | 26.8 | 46.1 | 5 |
Prepaid expenses and other current assets | -1 | -1.4 | 3 |
Income taxes payable (receivable) | 14.4 | -8.7 | -8.8 |
Accounts payable | 10.8 | 12.2 | 64.9 |
Accrued expenses and other current liabilities | 3.9 | 9.1 | 14.5 |
Net cash (used in) provided by operating activities from continuing operations | -0.1 | 46.8 | 75.4 |
Net cash used in operating activities from discontinued operations | 0 | 0 | -0.4 |
Net cash (used in) provided by operating activities | -0.1 | 46.8 | 75 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | -7.1 | -13.7 | -12.1 |
Proceeds from disposals of property, plant and equipment | 1 | 0.3 | 0.1 |
Purchase of SCC Services BV, net of cash acquired | -6.4 | 0 | 0 |
Net cash used in investing activities | -12.5 | -13.4 | -12 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of capital lease obligations | -2.6 | -2.8 | -2.8 |
Dividends paid | 0 | 0 | -9.1 |
Proceeds from issuance of common stock | 0.3 | 0.1 | 0.3 |
Excess tax benefit from exercises of stock options | 0 | 0.1 | 0.5 |
Net cash used in financing activities | -2.3 | -2.6 | -11.1 |
EFFECTS OF EXCHANGE RATES ON CASH | -1.5 | -0.1 | 1.5 |
NET (DECREASE) INCREASE IN CASH | -16.4 | 30.7 | 53.4 |
CASH - BEGINNING OF YEAR | 181.4 | 150.7 | 97.3 |
CASH - END OF YEAR | 165 | 181.4 | 150.7 |
Supplemental disclosures: | |||
Interest paid | 1.1 | 1.2 | 1.4 |
Income taxes paid | 5.2 | 8.1 | 11.4 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Acquisitions of equipment through capital leases | $0.80 | $0 | $1.30 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, At Cost [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
In Millions, except Share data, unless otherwise specified | ||||||
Balances at Dec. 31, 2011 | $0.40 | $180.50 | ($30.50) | $307.90 | ($4) | $454.30 |
Balances (in shares) at Dec. 31, 2011 | 36,399,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 4.1 | 4.1 | ||||
Issuance of restricted stock | -0.5 | 0.6 | 0.1 | |||
Issuance of restricted stock (in shares) | 47,000 | |||||
Exercise of stock options | -1 | 1.3 | 0.3 | |||
Exercise of stock options (in shares) | 109,000 | |||||
Surrender of fully vested options and restricted stock | -0.7 | -0.7 | ||||
Income tax benefit on stock-based compensation | 0.6 | 0.6 | ||||
Change in cumulative translation adjustment | 5 | 5 | ||||
Dividends paid | -9.1 | -9.1 | ||||
Net loss | -8.3 | -8.3 | ||||
Balances at Dec. 31, 2012 | 0.4 | 183 | -28.6 | 290.5 | 1 | 446.3 |
Balances (in shares) at Dec. 31, 2012 | 36,555,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 2.9 | 2.9 | ||||
Issuance of restricted stock | -1.9 | 1.8 | -0.1 | |||
Issuance of restricted stock (in shares) | 140,000 | |||||
Exercise of stock options | -0.3 | 0.4 | 0.1 | |||
Exercise of stock options (in shares) | 34,000 | |||||
Surrender of fully vested options and restricted stock | -0.4 | -0.4 | ||||
Change in cumulative translation adjustment | 1.2 | 1.2 | ||||
Net loss | -43.8 | -43.8 | ||||
Balances at Dec. 31, 2013 | 0.4 | 183.3 | -26.4 | 246.7 | 2.2 | 406.2 |
Balances (in shares) at Dec. 31, 2013 | 36,729,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 1.5 | 1.5 | ||||
Issuance of restricted stock | -0.3 | 0.6 | 0.3 | |||
Issuance of restricted stock (in shares) | 45,000 | |||||
Exercise of stock options | -0.1 | 0.4 | 0.3 | |||
Exercise of stock options (in shares) | 34,000 | |||||
Surrender of fully vested options and restricted stock | -0.1 | -0.1 | ||||
Change in cumulative translation adjustment | -11.1 | -11.1 | ||||
Net loss | -37.5 | -37.5 | ||||
Balances at Dec. 31, 2014 | $0.40 | $184.30 | ($25.40) | $209.20 | ($8.90) | $359.60 |
Balances (in shares) at Dec. 31, 2014 | 36,808,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Systemax Inc. and its wholly-owned subsidiaries (collectively, the "Company" or "Systemax"). All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Reclassifications — Certain prior year amounts were reclassified to conform to current year presentation. | |
Use of Estimates In Financial Statements — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Fiscal Year — The Company's fiscal year ends at midnight on the Saturday closest to December 31. For clarity of presentation herein, all fiscal years are referred to as if they ended on December 31. The fiscal year is divided into four fiscal quarters that each end at midnight on a Saturday. Fiscal quarters will typically include 13 weeks, but the fourth quarter will include 14 weeks in a 53 week fiscal year. For clarity of presentation herein, all fiscal quarters are referred to as if they ended on the traditional calendar month. The full years of 2014, 2013 and 2012 included 52 weeks. | |
Foreign Currency Translation — The Company has operations in numerous foreign countries. The functional currency of each foreign country is the local currency. The financial statements of the Company's foreign entities are translated into U.S. dollars, the reporting currency, using year-end exchange rates for assets and liabilities, average exchange rates for the statement of operations items and historical rates for equity accounts. Translation gains or losses are recorded as a separate component of shareholders' equity. | |
Cash — The Company considers amounts held in money market accounts and other short-term investments, including overnight bank deposits, with an original maturity date of three months or less to be cash. Cash overdrafts are classified in accounts payable. | |
Inventories — Inventories consist primarily of finished goods and are stated at the lower of cost or market value. Cost is determined by using the first-in, first-out method except in certain locations in Europe and retail locations where an average cost is used. | |
Assets available for sale — Assets available for sale consisted of our former PC manufacturing facility located in Fletcher, Ohio, including land and land improvements. The cost of the land, land improvements and building has been adjusted to estimated fair market value based on quoted prices in the active market. This asset was sold in the second quarter of 2014 for $0.9 million and the remainder of the asset, $0.2 million, was recorded in special charges in the Consolidated Statements of Operations within the Technology Products segment. | |
Property, Plant and Equipment — Property, plant and equipment is stated at cost. Furniture, fixtures and equipment, including equipment under capital leases, are depreciated using the straight-line or accelerated method over their estimated useful lives ranging from three to ten years. Buildings are depreciated using the straight-line method over estimated useful lives of 30 to 50 years. Leasehold improvements are amortized over the shorter of the useful lives or the term of the respective leases. | |
Evaluation of Long-lived Assets — Long-lived assets are evaluated for recoverability whenever events or changes in circumstances indicate that an asset may have been impaired. In evaluating an asset for recoverability, the Company estimates the future cash flows expected to result from the use of the asset and eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss, equal to the excess of the carrying amount over the fair market value of the asset is recognized. As a result of negative cash flows in its Technology Products segment operations in North America in 2014,and a forecast for continued use of cash in 2015, the Company conducted an evaluation of the long-lived assets in those operations and concluded that those assets were impaired. Accordingly an impairment charge of approximately $9.5 million, pre-tax, was recorded in the fourth quarter of 2014. | |
Goodwill and intangible assets — Goodwill represents the excess of the cost of acquired assets over the fair value of assets acquired. The Company tests goodwill and identifiable intangible assets (trademarks) for impairment annually or more frequently if indicators of impairment exist. The Company assesses the carrying value of its definite-lived intangible assets if circumstances indicate that those values may not be recoverable. As a result of negative cash flows in its operations in Technology Products segment operations in North America in 2014, the Company conducted an evaluation of the intangible assets in those operations and concluded that those assets were impaired and an impairment charge of approximately $0.5 million, pre-tax, was recorded in the fourth quarter of 2014. | |
In December 2013, the Company sold certain CompUSA intellectual property assets and the Company discontinued using the CompUSA brand in Puerto Rico. As a result, for the year ended December 31, 2013, the Company incurred write offs of approximately $2.9 million, pre-tax, related to the intangible assets of the CompUSA brand in Puerto Rico. | |
Accruals — Management makes estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. These estimates are based upon various factors such as the number of units sold, historical and anticipated results and data received from third party vendors. Actual results could differ from these estimates. Our most significant estimates include those related to the costs of inventory reserves, sales returns and allowances, cooperative advertising, vendor drop shipments, and customer rebate reserves, and other vendor and employee related costs. | |
Income Taxes — Deferred tax assets and liabilities are recognized for the effect of temporary differences between the book and tax bases of recorded assets and liabilities and for tax loss carry forwards. The realization of net deferred tax assets is dependent upon our ability to generate sufficient future taxable income. Where it is more likely than not that some portion or the entire deferred tax asset will not be realized, we have provided a valuation allowance. If the realization of those deferred tax assets in the future is considered more likely than not, an adjustment to the deferred tax assets would increase net income in the period such determination is made. | |
The Company provides for uncertain tax positions and related interest and penalties based upon management's assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established or is required to pay amounts in excess of the liability, the Company's effective tax rate in a given financial statement period may be affected. | |
Revenue Recognition and Accounts Receivable — The Company recognizes sales of products, including shipping revenue, when persuasive evidence of an order arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectibility is reasonably assured. Generally, these criteria are met at the time the product is received by the customers when title and risk of loss have transferred except in our Industrial Products segment where title and risk pass at time of shipment. Allowances for estimated subsequent customer returns, rebates and sales incentives are provided when revenues are recorded. Revenues exclude sales tax collected. The Company evaluates collectibility of accounts receivable based on numerous factors, including past transaction history with customers and their credit rating and provides a reserve for accounts that are potentially uncollectible. Trade receivables are generally written off once all collection efforts have been exhausted. Accounts receivable are shown in the consolidated balance sheets net of allowances for doubtful collections and subsequent customer returns. | |
Shipping and handling costs— The Company recognizes shipping and handling costs in cost of sales. | |
Advertising Costs — Expenditures for internet, television, local radio and newspaper advertising are expensed in the period the advertising takes place. Catalog preparation, printing and postage expenditures are amortized over the period of catalog distribution during which the benefits are expected, generally one to four months. | |
Net advertising expenses were $66.1 million, $60.1 million and $57.7 million during 2014, 2013 and 2012, respectively, and are included in the accompanying consolidated statements of operations. The Company utilizes advertising programs to support vendors, including catalogs, internet and magazine advertising, and receives payments and credits from vendors, including consideration pursuant to volume incentive programs and cooperative marketing programs. The Company accounts for consideration from vendors as a reduction of cost of sales unless certain conditions are met showing that the funds are used for specific, incremental, identifiable costs, in which case the consideration is accounted for as a reduction in the related expense category, such as advertising expense. The amount of vendor consideration recorded as a reduction of selling, general and administrative expenses totaled $38.8 million, $45.9 million and $47.8 million during 2014, 2013 and 2012, respectively. | |
Prepaid expenses as of December 2014 and 2013 include deferred advertising costs of $0.1 million and $0.7 million, respectively which are reflected as an expense during the periods benefited, typically the subsequent fiscal quarter. | |
Stock based compensation — The Company recognizes the fair value of share based compensation in the consolidated statement of operations over the requisite employee service period. Stock-based compensation expense includes an estimate for forfeitures and is recognized over the expected term of the award. | |
Net Income Per Common Share – Net income per common share - basic was calculated based upon the weighted average number of common shares outstanding during the respective periods presented using the two class method of computing earnings per share. The two class method was used as the Company has outstanding restricted stock with rights to dividend participation for unvested shares. Net income per common share - diluted was calculated based upon the weighted average number of common shares outstanding and included the equivalent shares for dilutive options outstanding during the respective periods, including unvested options. The dilutive effect of outstanding options and restricted stock issued by the Company is reflected in net income per share - diluted using the treasury stock method. Under the treasury stock method, options will only have a dilutive effect when the average market price of common stock during the period exceeds the exercise price of the options. The weighted average number of stock options outstanding included in the computation of diluted earnings (loss) per share was zero shares for the years ended December 31, 2014, 2013 and 2012. The weighted average number of restricted stock awards included in the computation of diluted (loss) per share was zero shares for the year December 31, 2014, 2013, and 2012. The weighted average number of stock options outstanding excluded from the computation of diluted earnings per share was 0.8 million shares, 1.2 million shares and 1.1 million shares for the years ended December 31, 2014, 2013 and 2012, respectively, due to their antidilutive effect. The weighted average number of restricted awards outstanding excluded from the computation of diluted (loss) per share was zero shares, 0.1 million shares and zero shares for the years ended December 31, 2014, 2013 and 2012, respectively, due to their antidilutive effect. | |
Employee Benefit Plans - The Company's U.S. subsidiaries participate in a defined contribution 401(k) plan covering substantially all U.S. employees. Employees may invest 1% or more of their eligible compensation, limited to maximum amounts as determined by the Internal Revenue Service. The Company provides a matching contribution to the plan, determined as a percentage of the employees' contributions. Aggregate expense to the Company for contributions to such plans was approximately $0.9 million, $0.9 million and $1.0 million in 2014, 2013 and 2012, respectively. | |
Fair Value Measurements - Financial instruments consist primarily of investments in cash, trade accounts receivable, debt and accounts payable. The Company estimates the fair value of financial instruments based on interest rates available to the Company. At December 31, 2014 and 2013, the carrying amounts of cash, accounts receivable and accounts payable are considered to be representative of their respective fair values due to their short-term nature. The Company's debt is considered to be representative of its fair value because of its variable interest rate. | |
The fair value of goodwill, non-amortizing intangibles and long lived assets is measured in connection with the Company's annual impairment testing. The Company performs a qualitative assessment of goodwill and non-amortizing intangibles to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment shows that the fair value of the reporting unit exceeds its carrying amount, the company is not required to complete the annual two step goodwill impairment test. If a quantitative analysis is required to be performed for goodwill, the fair value of the reporting unit to which the goodwill has been assigned is determined using a discounted cash flow model. A discounted cash flow model is also used to determine fair value of indefinite-lived intangibles using projected cash flows of the intangible. Unobservable inputs related to these discounted cash flow models include projected sales growth, same store sales growth, gross margin percentages, new business opportunities, working capital requirements, capital expenditures and growth in selling, general and administrative expense and are classified in accordance with ASC 820, "Fair Value Measurements and Disclosures", within Level 3 of the valuation hierarchy. Long lived assets are assets used in the Company's operations and include leasehold improvements, warehouse and retail store fixtures and similar property used to generate sales and cash flows. Long lived assets are tested for impairment utilizing a recoverability test. The recoverability test compares the carrying value of an asset group to the undiscounted cash flows directly attributable to the asset group over the life of the primary asset. If the undiscounted cash flows of an asset group is less than the carrying value of the asset group, the fair value of the asset group is then measured. If the fair value is also determined to be less than the carrying value of the asset group, the asset group is impaired. In 2014 the Company's evaluation of the intangible assets in its Technology Products segment in North America concluded that certain long lived assets were impaired and an impairment charge of approximately $9.5 million, pre-tax, was recorded in the fourth quarter of 2014. | |
Significant Concentrations - Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and accounts receivable. The Company's excess cash balances are invested with money center banks. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers and their geographic dispersion comprising the Company's customer base. The Company also performs on-going credit evaluations and maintains allowances for potential losses as warranted. | |
We purchase substantially all of our products and components directly from manufacturers and large wholesale distributors. In 2014, two vendors accounted for 10% or more of our purchases – one vendor was 12.6%; the other vendor was 11.6%. In 2013, one vendor accounted for 13.9% of our purchases and in 2012, no vendor accounted for 10% or more of our purchases. | |
Recent Accounting Pronouncements | |
Public companies in the United States are subject to the accounting and reporting requirements of various authorities, including the Financial Accounting Standards Board ("FASB") and the Securities and Exchange Commission ("SEC"). These authorities issue numerous pronouncements, most of which are not applicable to the Company's current or reasonably foreseeable operating structure. Below are the new authoritative pronouncements that management believes are relevant to Company's current operations. | |
In April 2014, the FASB issued ASU 2014-08, "Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity". This ASU provides new guidance related to the definition of a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. This new guidance is effective for annual periods beginning on or after December 15, 2014 and interim periods within those years. Beginning in 2015, the Company will apply this new guidance, as applicable. | |
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers". This ASU provides new guidance related to how an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In addition, this ASU specifies new accounting for costs associated with obtaining or fulfilling contracts with customers and expands the required disclosures related to revenue and cash flows from contracts with customers. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and can be adopted either retrospectively to each reporting period presented or as a cumulative effect adjustment as of the date of the adoption, with early application not permitted. The Company is currently determining its implementation approach and assessing the impact, if any, on the condensed consolidated financial statements. |
ACQUISITION
ACQUISITION | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
ACQUISITION [Abstract] | |||||||||
ACQUISITION | 2. ACQUISITION | ||||||||
On June 12, 2014, the Company acquired SCC Services B.V. (renamed "Misco Solutions B.V." in 2015), a supplier of business-to-business IT products and services with operations in the Netherlands. The purchase price (after giving effect to the conversion of Euros to U.S. dollars) was approximately $7.3 million in cash (5.4 million Euro), $0.6 million (0.4 million Euro) of which was placed into an escrow account for one year to secure the sellers' indemnification obligations under the purchase agreement. The Company completed a preliminary allocation of the purchase price as of the acquisition date and recorded assets of approximately $1.5 million for Goodwill, $1.0 million for Client Lists and $0.2 million for Trademarks. These assets were recorded in the Company's Technology Products business segment. The Company expects to amortize 62% of its Client Lists over a 10 year period and 38% of its Client Lists over a 4 year period. All other assets have indefinite lives. A final purchase price allocation will be completed in 2015. The operating results of SCC Services are included in the accompanying consolidated statements of operations from the date of acquisition. SCC Services is included in the European operations of the Company's Technology Products reportable segment. The Company has determined that this was not a material acquisition. The gross carrying amount and accumulated amortization for amortizable assets related to this acquisition at December 31, 2014 was as follows (in millions): | |||||||||
December 31, | |||||||||
2014 | |||||||||
Gross Carrying Amount | Accumulated Amortization | ||||||||
Client lists | $ | 1 | $ | 0.1 | |||||
Total | $ | 1 | 0.1 |
GOODWILL_AND_INTANGIBLES
GOODWILL AND INTANGIBLES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
GOODWILL AND INTANGIBLES [Abstract] | |||||||||||||||||
GOODWILL AND INTANGIBLES | 3. GOODWILL AND INTANGIBLES | ||||||||||||||||
Goodwill: | |||||||||||||||||
The following table provides information related to the carrying value of goodwill (in millions): | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance January 1 | $ | 2.4 | $ | 2.4 | |||||||||||||
Adjustments to purchase price allocation | 1.2 | - | |||||||||||||||
Deferred tax adjustment | 0.3 | - | |||||||||||||||
Balance December 31 | $ | 3.9 | $ | 2.4 | |||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||
The following table summarizes information related to indefinite-lived intangible assets (in millions): | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance January 1 | $ | 2.3 | $ | 5.4 | |||||||||||||
Adjustments to purchase price allocation | 0.2 | - | |||||||||||||||
Intangible write offs | - | (2.9 | ) | ||||||||||||||
Sale proceeds | - | (0.2 | ) | ||||||||||||||
Balance December 31 | $ | 2.5 | $ | 2.3 | |||||||||||||
During 2013, the Company wrote off the remaining carrying value of the indefinite-lived intangible assets of CompUSA of approximately $2.9 million. These write offs and impairment charges were recorded in the Consolidated Statements of Operations as special charges within the Technology Products segment. | |||||||||||||||||
Definite-lived intangible assets: | |||||||||||||||||
The following table summarizes information related to definite-lived intangible assets (in millions): | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||
Retail store leases | $ | 3.4 | 3.4 | $ | 3.4 | $ | 2.5 | ||||||||||
Client lists | 3.6 | 2.6 | 2.6 | 2.2 | |||||||||||||
Technology | 1 | 1 | 1 | 0.9 | |||||||||||||
Total | $ | 8 | 7 | $ | 7 | $ | 5.6 | ||||||||||
During 2014, the Company incurred impairment charges related to the remaining retail store leases of approximately $0.5 million and recorded intangible assets of $1.0 million related to the SCC acquisition (see Note 2). In 2013 the Company incurred accelerated amortization of approximately $0.9 million related to the termination of one of the retail store leases. | |||||||||||||||||
The aggregate amortization expense for these intangibles was approximately $1.4 million in 2014. The estimated amortization for future years ending December 31 is as follows (in millions): | |||||||||||||||||
2015 | $ | 0.2 | |||||||||||||||
2016 | 0.2 | ||||||||||||||||
2017 | 0.2 | ||||||||||||||||
2018 and after | 0.4 | ||||||||||||||||
Total | 1 |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |||||||||
PROPERTY, PLANT AND EQUIPMENT | 4 | PROPERTY, PLANT AND EQUIPMENT | |||||||
Property, plant and equipment, net consist of the following (in millions): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land and buildings | $ | 18.6 | $ | 19.7 | |||||
Furniture and fixtures, office, computer and other equipment and software | 127.6 | 129.2 | |||||||
Leasehold improvements | 26.8 | 30.8 | |||||||
173 | 179.7 | ||||||||
Less accumulated depreciation and amortization | 131.8 | 120.3 | |||||||
Property, plant and equipment, net | $ | 41.2 | $ | 59.4 | |||||
Included in property, plant and equipment are assets under capital leases, as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Office, computer and other equipment | $ | 17.4 | $ | 17.4 | |||||
Less: Accumulated amortization | 14.5 | 12 | |||||||
$ | 2.9 | $ | 5.4 | ||||||
Depreciation charged to operations for property, plant and equipment including capital leases in 2014, 2013, and 2012 was $15.4 million, $17.4 million and $16.6 million, respectively. As a result of negative cash flows in its Technology Products segment operations in North America, and a forecast for continued use of cash, the Company conducted an evaluation of the long-lived assets in those operations and concluded that those assets were impaired. Accordingly an impairment charge of approximately $9.5 million, pre-tax, was recorded. |
CREDIT_FACILITIES
CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2014 | |
CREDIT FACILITIES [Abstract] | |
CREDIT FACILITIES | 5. CREDIT FACILITIES |
The Company maintains a $125.0 million (which may be increased to $200.0 million, subject to certain conditions) secured revolving credit agreement with a group of financial institutions which provides for borrowings in the United States. The credit facility has a five year term and expires in October 26, 2015 and the Company expects to renew the facility on or before that date in 2015. Availability is subject to a borrowing base formula that takes into account eligible receivables and eligible inventory. Borrowings are secured by substantially all of the Company's assets, including accounts receivable, inventory and certain other assets, subject to limited exceptions. The credit agreement contains certain operating, financial and other covenants, including limits on annual levels of capital expenditures, availability tests related to payments of dividends and stock repurchases and fixed charge coverage tests related to acquisitions. The revolving credit agreement requires that a minimum level of availability be maintained. If such availability is not maintained, the Company will be required to maintain a fixed charge coverage ratio (as defined). The borrowings under the agreement are subject to borrowing base limitations of up to 85% of eligible accounts receivable and up to 40% of qualified inventories. The interest rate under this facility is computed at applicable market rates based on LIBOR or the Prime Rate, plus an applicable margin. The applicable margin varies based on borrowing base availability. As of December 31, 2014, eligible collateral under this agreement was $121.9 million, total availability was $116.4 million, total outstanding letters of credit were $5.5 million and there were no outstanding advances. The Company was in compliance with all of the covenants under this facility as of December 31, 2014. | |
The weighted average interest rate on short-term borrowings was 4.3%, 4.3%, and 4.3% in 2014, 2013 and 2012, respectively. |
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||||
Accrued expenses and other current liabilities consist of the following (in millions): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Payroll and employee benefits | $ | 34.6 | $ | 33 | |||||
Advertising | 11.9 | 10 | |||||||
Sales and VAT tax payable | 9.3 | 9 | |||||||
Freight | 8 | 6.7 | |||||||
Reorganization costs | 4.7 | 8 | |||||||
Other | 24.5 | 22.5 | |||||||
$ | 93 | $ | 89.2 |
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
LONG-TERM DEBT [Abstract] | |||||||||||||||||||||
LONG-TERM DEBT | 7. LONG-TERM DEBT | ||||||||||||||||||||
The Company (through a subsidiary) has an outstanding Bond financing with the Development Authority of Jefferson, Georgia (the "Authority"). The Bonds were issued by the Authority and purchased by GE Government Finance Inc., and mature on October 1, 2018. The proceeds from the Bond were used to finance capital equipment purchased for the Company's distribution facility located in Jefferson, Georgia. The purchase and installation of the equipment for the facility was completed by December 31, 2011. Pursuant to the transaction, the Company transferred to the Authority, for consideration consisting of the Bond proceeds, ownership of the equipment and the Authority leased the equipment to the Company's subsidiary pursuant to a capital equipment lease expiring October 1, 2018. Under the capital equipment lease, the Company has the right to acquire ownership of the equipment at any time for a purchase price sufficient to pay off all principal and interest on the Bonds, plus $1.00. As of December 31, 2014, there was $2.2 million outstanding against this financing facility. | |||||||||||||||||||||
Long-term debt consists of (in millions): | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Warehouse capitalized equipment lease | $ | 2.2 | $ | 4.1 | |||||||||||||||||
Other capitalized equipment lease | 1.4 | 1.3 | |||||||||||||||||||
Subtotal | 3.6 | 5.4 | |||||||||||||||||||
Less: current portion | 2.7 | 2.5 | |||||||||||||||||||
$ | 0.9 | $ | 2.9 | ||||||||||||||||||
The aggregate maturities of long-term debt outstanding at December 31, 2014 are as follows (in millions): | |||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||
Maturities | $ | 2.7 | $ | 0.6 | $ | 0.3 | $ | - | $ | - |
SPECIAL_CHARGES_NET
SPECIAL CHARGES, NET | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SPECIAL CHARGES, NET [Abstract] | |||||||||||||
SPECIAL CHARGES, NET | 8. SPECIAL CHARGES, NET | ||||||||||||
The Company's Technology Products segment incurred special charges of approximately $24.3 million in 2014. These charges, estimates of which were previously disclosed, included approximately $11.7 million in estimated workforce reductions related to the restructuring of our European operations, $0.5 million in continued recruitment costs to staff the European shared services center, $0.1 million for changes in the estimate of lease valuation accruals and the buyout of the two retail store leases that were exited in 2013 prior to lease expiration (Other Exit Costs), $0.3 million in other costs related to the retail stores that were closed in 2013, $0.2 million in charges related to the final sale of the facility which had been used in connection with our previously exited PC manufacturing business and $1.5 million of additional legal and professional fees related to the previously disclosed investigation and settlement with former officers and employees. In the fourth quarter of 2014, after conducting an evaluation of the long-lived and intangible assets in its operations in the United States and Canada, an impairment charge of approximately $10.0 million, pre-tax, was recorded. | |||||||||||||
The balance of the workforce reduction costs and retail store closing liabilities are included in the Consolidated Balance Sheet within accrued expenses and other current liabilities and other non-current liabilities. | |||||||||||||
The following table details the associated liabilities incurred related to the Technology Products segments special charges (in millions): | |||||||||||||
Workforce Reductions and Personnel Costs | Other Exit | Total | |||||||||||
Costs | |||||||||||||
Balance January 1, 2014 | $ | 7 | $ | 5.1 | $ | 12.1 | |||||||
Charged to expense | 11.7 | 0.1 | 11.8 | ||||||||||
Paid or otherwise settled | (14.0 | ) | (5.2 | ) | (19.2 | ) | |||||||
Balance December 31, 2014 | $ | 4.7 | $ | - | $ | 4.7 | |||||||
Corporate and other segment incurred $0.1 million of special charges related to severance costs in the year. |
SHAREHOLDERS_EQUITY
SHAREHOLDER'S EQUITY | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | |||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | 9. SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Stock based compensation plans | |||||||||||||||||||||||||
The Company currently has five equity compensation plans which reserve shares of common stock for issuance to key employees, directors, consultants and advisors to the Company. The following is a description of these plans: | |||||||||||||||||||||||||
The 1995 Long-term Stock Incentive Plan - This plan, adopted in 1995, allowed the Company to issue qualified, non-qualified and deferred compensation stock options, stock appreciation rights, restricted stock and restricted unit grants, performance unit grants and other stock based awards authorized by the Compensation Committee of the Board of Directors. Options issued under this plan expire ten years after the options are granted. The ability to grant new awards under this plan ended on December 31, 2005 but awards granted prior to such date continue until their expiration. No options were outstanding under this plan as of December 31, 2014. | |||||||||||||||||||||||||
The 1995 Stock Option Plan for Non-Employee Directors - This plan, adopted in 1995, provides for automatic awards of non-qualified options to directors of the Company who are not employees of the Company or its affiliates. All options granted under this plan will have a ten year term from grant date and are immediately exercisable. A maximum of 100,000 shares may be granted for awards under this plan. The ability to grant new awards under this plan ended on October 12, 2006 but awards granted prior to such date continue until their expiration. A total of 4,000 options were outstanding under this plan as of December 31, 2014. | |||||||||||||||||||||||||
The 1999 Long-term Stock Incentive Plan, as amended ("1999 Plan") - This plan was adopted in October 1999 with substantially the same terms and provisions as the 1995 Long-term Stock Incentive Plan. The Company increased the number of shares that may be granted under this plan to a maximum of 7,500,000 from 5,000,000 shares. The maximum number of shares granted per type of award to any individual may not exceed 1,500,000 in any calendar year and 3,000,000 in total. The ability to grant new awards under this plan ended on December 31, 2009 but awards granted prior to such date continue until their expiration. A total of 558,500 options were outstanding under this plan as of December 31, 2014. | |||||||||||||||||||||||||
The 2006 Stock Incentive Plan For Non-Employee Directors - This plan, adopted by the Company's stockholders in October, 2006, replaces the 1995 Stock Option Plan for Non-Employee Directors. The Company adopted the plan so that it could offer directors of the Company who are not employees of the Company or of any entity in which the Company has more than a 50% equity interest ("independent directors") an opportunity to participate in the ownership of the Company by receiving options to purchase shares of common stock at a price equal to the fair market value at the date of grant of the option and restricted stock awards. Awards for a maximum of 200,000 shares may be granted under this plan. A total of 15,000 options were outstanding under this plan as of December 31, 2014. | |||||||||||||||||||||||||
The 2010 Long-term Stock Incentive Plan ("2010 Plan") - This plan was adopted in April, 2010 with substantially the same terms and provisions as the 1999 Long-term Stock Incentive Plan. The maximum number of shares granted per type of award to any individual may not exceed 1,500,000 in any calendar year. Restricted stock grants and common stock awards reduce stock options otherwise available for future grant. Awards for a maximum of 7,500,000 shares may be granted under this plan. A total of 524,750 options and 255,000 restricted stock units were outstanding under this plan as of December 31, 2014. | |||||||||||||||||||||||||
Shares issued under our share-based compensation plans are usually issued from shares of our common stock held in the treasury. | |||||||||||||||||||||||||
The fair value of employee share options is recognized in expense over the vesting period of the options, using the graded attribution method. The fair value of employee share options is determined on the date of grant using the Black-Scholes option pricing model. The Company has used historical volatility in its estimate of expected volatility. The expected life represents the period of time (in years) for which the options granted are expected to be outstanding. The risk-free interest rate is based on the U.S. Treasury yield curve. | |||||||||||||||||||||||||
Compensation cost related to non-qualified stock options recognized in operating results (selling, general and administrative expense) for 2014, 2013 and 2012 was $0.7 million, $1.1 million, and $2.5 million respectively. The related future income tax benefits recognized for 2014, 2013 and 2012 were $0.2 million, $0.4 million and $1.4 million, respectively. | |||||||||||||||||||||||||
Stock options | |||||||||||||||||||||||||
The following table presents the weighted-average assumptions used to estimate the fair value of options granted in 2014, 2013 and 2012: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Expected annual dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||||||
Risk-free interest rate | 2.02 | % | 1.66 | % | 1.1 | % | |||||||||||||||||||
Expected volatility | 47.1 | % | 41.1 | % | 57.3 | % | |||||||||||||||||||
Expected life in years | 6.2 | 7.9 | 6.3 | ||||||||||||||||||||||
The following table summarizes information concerning outstanding and exercisable options: | |||||||||||||||||||||||||
Weighted Average | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Shares | Exercise | Shares | Exercise | Shares | Exercise | ||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||
Outstanding at beginning of year | 1,175,499 | $ | 16.11 | 1,353,059 | $ | 15.88 | 1,285,115 | $ | 13.39 | ||||||||||||||||
Granted | 65,000 | $ | 12.39 | 60,000 | $ | 9.54 | 772,500 | $ | 15 | ||||||||||||||||
Exercised | (33,749 | ) | $ | 9.78 | (34,310 | ) | $ | 3.04 | (109,466 | ) | $ | 3.12 | |||||||||||||
Cancelled or expired | (104,500 | ) | $ | 15.83 | (203,250 | ) | $ | 14.84 | (595,090 | ) | $ | 11.71 | |||||||||||||
Outstanding at end of year | 1,102,250 | $ | 16.11 | 1,175,499 | $ | 16.11 | 1,353,059 | $ | 15.88 | ||||||||||||||||
Options exercisable at year end | 839,500 | 772,749 | 682,809 | ||||||||||||||||||||||
Weighted average fair value per option granted during the year | $ | 5.92 | $ | 4.44 | $ | 7.9 | |||||||||||||||||||
The total intrinsic value of options exercised was $0.2 million, $0.2 million and $1.4 million respectively, for 2014, 2013 and 2012. | |||||||||||||||||||||||||
The following table summarizes information about options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) at December 31, 2014: | |||||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted | Weighted Average | Aggregate | |||||||||||||||||||||
Exercisable | Average | Remaining | Intrinsic | ||||||||||||||||||||||
Exercise | Contractual Life | Value (in | |||||||||||||||||||||||
Price | millions) | ||||||||||||||||||||||||
$ | 5 | to | $ | 10 | 51,202 | $ | 9.26 | 7.91 | $ | 0.2 | |||||||||||||||
$ | 10.01 | to | $ | 15 | 384,237 | $ | 13.08 | 5.57 | 0.3 | ||||||||||||||||
$ | 15.01 | to | $ | 20 | 529,774 | $ | 18.31 | 4.77 | - | ||||||||||||||||
$ | 20.01 | to | $ | 20.15 | 100,000 | $ | 20.15 | 2.06 | - | ||||||||||||||||
$ | 5 | to | $ | 20.15 | 1,065,213 | $ | 16.16 | 4.95 | $ | 0.5 | |||||||||||||||
The aggregate intrinsic value in the tables above represents the total pretax intrinsic value (the difference between the closing stock price on the last day of trading in 2014 and the exercise price) that would have been received by the option holders had all options been exercised on December 31, 2014. This value will change based on the fair market value of the Company's common stock. | |||||||||||||||||||||||||
The following table reflects the activity for all unvested stock options during 2014: | |||||||||||||||||||||||||
Shares | Weighted | ||||||||||||||||||||||||
Average Grant- | |||||||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||||||
Unvested at January 1, 2014 | 402,750 | $ | 8.58 | ||||||||||||||||||||||
Granted | 65,000 | $ | 5.92 | ||||||||||||||||||||||
Vested | (134,000 | ) | $ | 8.77 | |||||||||||||||||||||
Forfeited | (71,000 | ) | $ | 7.02 | |||||||||||||||||||||
Unvested at December 31, 2014 | 262,750 | $ | 8.25 | ||||||||||||||||||||||
At December 31, 2014, there was approximately $0.4 million of unrecognized compensation costs related to unvested stock options, which is expected to be recognized over a weighted average period of 1.67 years. The total fair value of stock options vested during 2014, 2013 and 2012 was $1.2 million, $1.6 million and $1.1 million, respectively. | |||||||||||||||||||||||||
Restricted Stock and Restricted Stock Units | |||||||||||||||||||||||||
In 2004, the Company granted 1,000,000 restricted stock units ("RSUs") under the 1999 Plan to a former officer and director. A RSU represents the right to receive a share of the Company's common stock. The RSUs have none of the rights as other shares of common stock, other than rights to cash dividends, until common stock is distributed. This RSU award was a non-performance award which vested at the rate of 20% on May 31, 2005 and 10% per year on April 1, 2006 and each year thereafter. The share-based expense for RSUs is determined based on the market price of the Company's stock at the date of the award. Compensation expense related to this RSU was zero in 2014, 2013 and 2012. As part of the settlement agreement with a former officer and director of the company, all unvested RSUs were terminated and of no further force and effect. | |||||||||||||||||||||||||
In August 2010, the Company granted 175,000 RSUs under the 2010 Plan to a key employee who is also a Company director. These RSUs have none of the rights as other shares of common stock, other than rights to cash dividends, until common stock is distributed. This RSU award was a non-performance award which vests in ten equal annual installments of 17,500 units beginning May 15, 2011 and each May 15, thereafter. Compensation expense related to this RSU award was approximately $0.2 million, $0.3 million and $0.4 million during each of 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
In October 2011, the Company granted 100,000 RSUs under the 2010 Plan to, at that time, a key employee. This RSU award was a non-performance award which vested in ten equal annual installments of 10,000 units beginning October 3, 2012 and each October 3 thereafter. The termination without cause of this key employee during 2013 caused the accelerated vesting of the remaining 90,000 shares in accordance with the restricted stock agreement with the Company. Compensation expense related to these restricted stock awards was approximately $0.0 million, $0.8 million and $0.2 million during each of 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
In November 2011, the Company granted 100,000 RSUs under the 2010 Plan to a key employee who is also a Company director. This RSU award was a non-performance award which vests in ten equal annual installments of 10,000 units beginning November 14, 2012 and each November 14 thereafter. Compensation expense related to this RSU award was approximately $0.2 million, $0.2 million and $0.4 million during each of 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
In January 2012 and March 2012, the Company granted 50,000 RSUs under the 2010 Plan to each of two key employees. These RSU awards were non-performance awards which vests in ten equal annual installments of 10,000 units beginning January 3, 2013 and March 1, 2013, respectively, and each January 3 and March 1, thereafter. Compensation expense related to these RSU awards were approximately $0.3 million, $0.4 million and $0.5 million during each of 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Share-based compensation expense for restricted stock issued to Directors was $0.1 million in each of 2014, 2013 and 2012. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
INCOME TAXES [Abstract] | |||||||||||||||||||||||||
INCOME TAXES | 10. INCOME TAXES | ||||||||||||||||||||||||
The components of income (loss) from continuing operations before income taxes are as follows (in millions): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
United States | $ | (9.3 | ) | $ | (18.8 | ) | $ | (66.5 | ) | ||||||||||||||||
Foreign | (23.3 | ) | (3.0 | ) | 24.9 | ||||||||||||||||||||
Total | $ | (32.6 | ) | $ | (21.8 | ) | $ | (41.6 | ) | ||||||||||||||||
The (benefit) provision for income taxes consists of the following (in millions): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | (0.3 | ) | $ | (8.2 | ) | $ | (5.4 | ) | ||||||||||||||||
State | 0.6 | 0.6 | 0.3 | ||||||||||||||||||||||
Foreign | 4.1 | 3.2 | 8.1 | ||||||||||||||||||||||
Total current | 4.4 | (4.4 | ) | 3 | |||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | - | 20.5 | (16.5 | ) | |||||||||||||||||||||
State | (0.5 | ) | 4.8 | (3.3 | ) | ||||||||||||||||||||
Foreign | 1 | 1.1 | (16.8 | ) | |||||||||||||||||||||
Total deferred | 0.5 | 26.4 | (36.6 | ) | |||||||||||||||||||||
TOTAL | $ | 4.9 | $ | 22 | $ | (33.6 | ) | ||||||||||||||||||
Income taxes are accrued and paid by each foreign entity in accordance with applicable local regulations. | |||||||||||||||||||||||||
The Company recorded a tax benefit of $0.2 million in 2012, related to discontinued operations. | |||||||||||||||||||||||||
A reconciliation of the difference between the income tax expense and the computed income tax expense based on the Federal statutory corporate rate is as follows (in millions): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Income tax at Federal statutory rate | $ | (11.4 | ) | (35.0 | )% | $ | (7.60 | ) | (35.0 | )% | $ | (14.5 | ) | (35.0 | )% | ||||||||||
Foreign taxes at rates different from the U.S. rate | 6.1 | 18.7 | 2.3 | 10.6 | (3.7 | ) | (8.9 | ) | |||||||||||||||||
State and local income taxes, net of federal tax benefit | 1.3 | 4 | (0.3 | ) | (1.4 | ) | (2.1 | ) | (5.0 | ) | |||||||||||||||
Changes in valuation allowances | 9.1 | 27.9 | 28.9 | 132.6 | (13.3 | ) | (31.9 | ) | |||||||||||||||||
Change in deferred tax liability | - | - | (1.2 | ) | (5.5 | ) | - | - | |||||||||||||||||
Non-deductible items | - | - | 0.1 | 0.5 | 0.1 | 0.2 | |||||||||||||||||||
Other items, net | (0.2 | ) | (0.6 | ) | (0.2 | ) | (0.9 | ) | (0.1 | ) | (0.2 | ) | |||||||||||||
Income tax | $ | 4.9 | 15 | % | $ | 22 | 100.9 | % | $ | (33.6 | ) | (80.8 | )% | ||||||||||||
The deferred tax assets and liabilities are comprised of the following (in millions): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Accrued expenses and other liabilities | $ | 10.5 | $ | 10.8 | |||||||||||||||||||||
Inventory | 4.2 | 4.6 | |||||||||||||||||||||||
Valuation allowances | (10.5 | ) | (11.2 | ) | |||||||||||||||||||||
Total current assets | $ | 4.2 | $ | 4.2 | |||||||||||||||||||||
Non-current: | |||||||||||||||||||||||||
Net operating loss and credit carryforwards | $ | 35 | $ | 30.1 | |||||||||||||||||||||
Depreciation | 2.5 | 2 | |||||||||||||||||||||||
Intangible & other | 16.2 | 15.2 | |||||||||||||||||||||||
Valuation allowances | (38.3 | ) | (28.5 | ) | |||||||||||||||||||||
Total non-current assets | $ | 15.4 | $ | 18.8 | |||||||||||||||||||||
Liabilities : | |||||||||||||||||||||||||
Current : | |||||||||||||||||||||||||
Deductible assets | $ | 1.5 | $ | 0.7 | |||||||||||||||||||||
Other | 1 | 1.2 | |||||||||||||||||||||||
Total current liabilities | $ | 2.5 | $ | 1.9 | |||||||||||||||||||||
Non-current: | |||||||||||||||||||||||||
Amortization | $ | 1.2 | $ | 1.1 | |||||||||||||||||||||
Depreciation | 0.1 | 1.8 | |||||||||||||||||||||||
Other | 0.6 | 0.6 | |||||||||||||||||||||||
Total non-current liabilities | $ | 1.9 | $ | 3.5 | |||||||||||||||||||||
During the current year the Company recorded valuation allowances against deferred tax assets of approximately $9.1 million. These valuation allowances were recorded against U.S. federal deferred tax assets of approximately $2.9 million, foreign deferred tax assets of $7.4 million and were partially offset by a reduction in state deferred tax asset valuation allowances of approximately $1.2 million. These valuation allowances were recorded primarily as a result of Managements' belief that the deferred assets are not likely to be realized due to recent losses. | |||||||||||||||||||||||||
The Company has not provided for federal income taxes applicable to the undistributed earnings of its foreign subsidiaries of approximately $66.8 million as of December 31, 2014, since these earnings are considered indefinitely reinvested. The Company has gross foreign net operating loss carryforwards of $80.8 million which expire through 2030. The Company records these benefits as assets to the extent that utilization of such assets is more likely than not; otherwise, a valuation allowance has been recorded. The Company has also provided valuation allowances for certain state deferred tax assets and net operating loss carryforwards where it is not likely they will be realized. | |||||||||||||||||||||||||
As of December 31, 2014, the Company has approximately $1.4 million in federal tax credit carryforwards expiring in years through 2024 and various amounts of state and foreign net operating loss carryforwards expiring through 2034. The Company has recorded valuation allowances of approximately $48.8 million, including valuations against the federal and state deductibility of temporary differences including net operating losses, of $23.0 million and $7.7 million respectively, foreign tax credits of $1.4 million and tax effected temporary differences and net operating loss carryforwards in foreign jurisdictions of $16.7 million. | |||||||||||||||||||||||||
The Company is routinely audited by federal, state and foreign tax authorities with respect to its income taxes. The Company regularly reviews and evaluates the likelihood of audit assessments. The Company's federal income tax returns have been audited through 2009. The Company has not signed any consents to extend the statute of limitations for any subsequent years. The Company's significant state tax returns have been audited through 2006. The Company considers its significant tax jurisdictions in foreign locations to be the United Kingdom, Canada, France, Italy and Germany. The Company remains subject to examination in the United Kingdom for years after 2011, in Canada for years after 2008, in France for years after 2011, in Italy for years after 2008, in Netherlands for years after 2006 and in Germany for years after 2007. | |||||||||||||||||||||||||
In accordance with the guidance for accounting for uncertainty in income taxes the Company recognizes the tax benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit of an uncertain tax position that meets the more-likely-than-not recognition threshold is measured as the largest amount that is greater than 50% likely to be realized upon settlement with the tax authority. To the extent we prevail in matters for which accruals have been established or are required to pay amounts in excess of accruals, our effective tax rate in a given financial statement period could be affected. As of December 31, 2014 the Company had no uncertain tax positions. Interest and penalties, if any, are recorded in income tax expense. There were no accrued interests or penalty charges related to unrecognized tax benefits recorded in income tax expense in 2014 or 2013. |
COMMITMENTS_CONTINGENCIES_AND_
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS [Abstract] | ||||||||||||||
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS | 11. COMMITMENTS, CONTINGENCIES AND OTHER MATTERS | |||||||||||||
Leases - The Company is obligated under operating lease agreements for the rental of certain office and warehouse facilities and equipment which expire at various dates through August 2032. The Company currently leases its headquarters office/warehouse facility in New York from an entity owned by the Company's three principal shareholders and senior executive officers. The Company believes that these payments were no higher than would be paid to an unrelated lessor for comparable space. The Company also acquires certain computer, communications equipment, and machinery and equipment pursuant to capital lease obligations. | ||||||||||||||
At December 31, 2014, the future minimum annual lease payments for capital leases and related and third-party operating leases were as follows (in millions): | ||||||||||||||
Capital | Operating | Total | ||||||||||||
Leases | Leases | |||||||||||||
2015 | 2.8 | $ | 28.3 | $ | 31.1 | |||||||||
2016 | 0.6 | 26.4 | 27 | |||||||||||
2017 | 0.3 | 26 | 26.3 | |||||||||||
2018 | - | 21.4 | 21.4 | |||||||||||
2019 | - | 19.1 | 19.1 | |||||||||||
2020-2024 | - | 51.7 | 51.7 | |||||||||||
2025-2029 | - | 25.6 | 25.6 | |||||||||||
Thereafter | - | 8 | 8 | |||||||||||
Total minimum lease payments | 3.7 | 206.5 | 210.2 | |||||||||||
Less: sublease rental income | - | 2.5 | 2.5 | |||||||||||
Lease obligation net of subleases | 3.7 | $ | 204 | 207.7 | ||||||||||
Less: amount representing interest | 0.1 | |||||||||||||
Present value of minimum capital lease payments (including current portion of $2.7) | $ | 3.6 | ||||||||||||
Annual rent expense aggregated approximately $31.5 million, $34.6 million and $33.4 million in 2014, 2013 and 2012, respectively. Included in rent expense was $0.9 million in 2014, 2013 and 2012, to related parties. Rent expense is net of sublease income of $0.0 million for 2014, $0.1 million for 2013, and $0.2 million for 2012, respectively. | ||||||||||||||
Other Matters | ||||||||||||||
The Company and its subsidiaries are involved in various lawsuits, claims, investigations and proceedings including commercial, employment, consumer, personal injury and health and safety law matters, which are being handled and defended in the ordinary course of business. In addition, the Company is subject to various assertions, claims, proceedings and requests for indemnification concerning intellectual property, including patent infringement suits involving technologies that are incorporated in a broad spectrum of products the Company sells. The Company is also audited by (or has initiated voluntary disclosure agreements with) numerous governmental agencies in various countries, including U.S. Federal and state authorities, concerning potential income tax, sales tax and unclaimed property liabilities. These matters are in various stages of investigation, negotiation and/or litigation, and are being vigorously defended. In this regard, the State of New York has claimed that certain of the Company's consumer electronics e-commerce sales are subject to sales tax in those states. The Company intends to vigorously defend these matters and believes it has strong defenses. The Company is also being audited by an entity representing 45 states seeking recovery of "unclaimed property". The Company is complying with the audit and is providing requested information. | ||||||||||||||
Although the Company does not expect, based on currently available information, that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial position or results of operations, the ultimate outcome is inherently unpredictable. Therefore, judgments could be rendered or settlements entered, that could adversely affect the Company's operating results or cash flows in a particular period. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable and estimable. In this regard, the Company establishes accrual estimates for its various lawsuits, claims, investigations and proceedings when it is probable that an asset has been impaired or a liability incurred at the date of the financial statements and the loss can be reasonably estimated. At December 31, 2014 the Company has established accruals for certain of its various lawsuits, claims, investigations and proceedings based upon estimates of the most likely outcome in a range of loss or the minimum amounts in a range of loss if no amount within a range is a more likely estimate. The Company does not believe that at December 31, 2014 any reasonably possible losses in excess of the amounts accrued would be material to the financial statements. | ||||||||||||||
Following the previously reported independent investigation of Gilbert Fiorentino and Carl Fiorentino by our Audit Committee in 2011 (in response to a whistleblower report) for a variety of improper acts, the subsequent termination of their employment and the entering into by Gilbert Fiorentino of a settlement agreement with the Securities and Exchange Commission, on November 20, 2014 the United States Attorney’s Office (“USAO”) for the Southern District of Florida announced that Gilbert Fiorentino and Carl Fiorentino had been charged with mail fraud, wire fraud and money laundering in connection with a scheme to defraud TigerDirect and Systemax. Specifically, the charges set forth a scheme to obtain kickbacks and other benefits, and to conceal this illicit income from the IRS, all while Gilbert Fiorentino and Carl Fiorentino were employed as senior executives at the Company’s North American Technology Products business. On December 2, 2014, the United States Attorney’s Office announced that Gilbert Fiorentino and Carl Fiorentino had pled guilty to various charges, and on March 3, 2015, Gilbert Fiorentino and Carl Fiorentino were sentenced to sixty and eighty months’ imprisonment, respectively. The Court also set a restitution hearing for April 10, 2015 to determine the amount of restitution Gilbert Fiorentino and Carl Fiorentino are obligated to pay the Company. | ||||||||||||||
On January 27, 2015, the senior financial officer of the Company's North American Technology Products segment testified before a federal grand jury in the Southern District of Florida pursuant to a subpoena. The USAO has not advised the Company as to the nature or scope of the grand jury proceeding. Further, the Company's Audit Committee, with the assistance of independent outside counsel, is cooperating with a current investigation by the USAO into allegations arising from the Fiorentino investigation regarding possible executive officer conflicts of interest and conduct related to internal controls and books and records. The Company does not currently believe these matters have had or will have a material effect on the Company's previously reported consolidated financial statements. However, it is not possible at this time to predict when the current investigation will be completed; what subject(s) will be investigated; what actions, if any, may be taken by the government as a result of its investigation; or whether any of these matters will have a material adverse impact on the Company. |
SEGMENT_AND_RELATED_INFORMATIO
SEGMENT AND RELATED INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SEGMENT AND RELATED INFORMATION [Abstract] | |||||||||||||
SEGMENT AND RELATED INFORMATION | 12. SEGMENT AND RELATED INFORMATION | ||||||||||||
The Company operates and is internally managed in two reportable business segments, Technology Products and Industrial Products. The Company’s chief operating decision-maker is the Company’s Chief Executive Officer (“CEO”). The CEO, in his role as Chief Operating Decision Maker (“CODM”), evaluates segment performance based on operating income (loss) from continuing operations. The CODM reviews assets and makes significant capital expenditure decisions for the Company on a consolidated basis only. The accounting policies of the segments are the same as those of the Company. Corporate costs not identified with the disclosed segments are grouped as “Corporate and other expenses.” | |||||||||||||
Financial information relating to the Company's operations by reportable segment was as follows (in millions): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net Sales: | |||||||||||||
Technology Products | $ | 2,880.90 | $ | 2,873.30 | $ | 3,137.60 | |||||||
Industrial Products | 556 | 473.8 | 401.9 | ||||||||||
Corporate and other | 5.9 | 5.2 | 4.8 | ||||||||||
Consolidated | $ | 3,442.80 | $ | 3,352.30 | $ | 3,544.30 | |||||||
Depreciation and Amortization Expense: | |||||||||||||
Technology Products | $ | 12.9 | $ | 16.1 | $ | 15.1 | |||||||
Industrial Products | 2.1 | 2.2 | 1.9 | ||||||||||
Corporate and other | 1.3 | 1 | 1 | ||||||||||
Consolidated | $ | 16.3 | $ | 19.3 | $ | 18 | |||||||
Operating Income (Loss): | |||||||||||||
Technology Products | $ | (51.3 | ) | $ | (40.6 | ) | $ | (47.2 | ) | ||||
Industrial Products | 41 | 40 | 29.9 | ||||||||||
Corporate and other expenses | (15.6 | ) | (20.0 | ) | (22.6 | ) | |||||||
Consolidated | $ | (25.9 | ) | $ | (20.6 | ) | $ | (39.9 | ) | ||||
Total Assets | |||||||||||||
Technology Products | $ | 501.9 | $ | 598.3 | $ | 564.4 | |||||||
Industrial Products | 136.4 | 110 | 157.7 | ||||||||||
Corporate and other | 256.6 | 233.9 | 240.2 | ||||||||||
Consolidated | $ | 894.9 | $ | 942.2 | $ | 962.3 | |||||||
Financial information relating to the Company's operations by geographic area was as follows (in millions): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net Sales: | |||||||||||||
United States | $ | 2,061.80 | $ | 2,051.10 | 2.203.2 | ||||||||
United Kingdom | 471.9 | 468.5 | 491.7 | ||||||||||
France | 383.2 | 335.4 | 312.7 | ||||||||||
Other Europe | 334.8 | 291.5 | 322.3 | ||||||||||
Other North America | 191.1 | 205.8 | 214.4 | ||||||||||
Consolidated | $ | 3,442.80 | $ | 3,352.30 | 3,544.30 | ||||||||
Long-lived Assets: | |||||||||||||
United States | $ | 16.7 | $ | 32.3 | $ | 42 | |||||||
United Kingdom | 17.5 | 18.7 | 16.6 | ||||||||||
France | 0.8 | 0.9 | 0.1 | ||||||||||
Other Europe and Asia | 5.5 | 6.4 | 2.7 | ||||||||||
Other North America | 0.7 | 1.1 | 1.6 | ||||||||||
Consolidated | $ | 41.2 | $ | 59.4 | $ | 63 | |||||||
Net sales are attributed to countries based on location of selling subsidiary. |
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | 13. QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
Quarterly financial data, excluding discontinued operations, is as follows (in millions, except for per share amounts): | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
2014:00:00 | |||||||||||||||||
Net sales | $ | 873.4 | $ | 831.1 | $ | 825.4 | $ | 912.9 | |||||||||
Gross profit | $ | 127.9 | $ | 123.3 | $ | 117.5 | $ | 124.5 | |||||||||
Net loss | $ | (3.0 | ) | $ | (6.2 | ) | $ | (2.8 | ) | $ | (25.5 | ) | |||||
Net loss per common share: | |||||||||||||||||
Basic | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.08 | ) | $ | (0.69 | ) | |||||
Diluted | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.08 | ) | $ | (0.69 | ) | |||||
2013:00:00 | |||||||||||||||||
Net sales | $ | 880.6 | $ | 805.7 | $ | 791.8 | $ | 874.2 | |||||||||
Gross profit | $ | 121.6 | $ | 116.3 | $ | 116.8 | $ | 128.2 | |||||||||
Net loss | $ | (6.3 | ) | $ | (6.1 | ) | $ | (11.6 | ) | $ | (19.8 | ) | |||||
Net loss per common share: | |||||||||||||||||
Basic | $ | (0.17 | ) | $ | (0.16 | ) | $ | (0.31 | ) | $ | (0.54 | ) | |||||
Diluted | $ | (0.17 | ) | $ | (0.16 | ) | $ | (0.31 | ) | $ | (0.54 | ) |
SUBSEQUENT_EVENTS_unaudited
SUBSEQUENT EVENTS (unaudited) | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS (unaudited) [Abstract] | |
SUBSEQUENT EVENTS (unaudited) | 14. SUBSEQUENT EVENTS (unaudited) |
On March 10, 2015 the Company announced that its Technology Products business segment would be exiting the retail store business in order to accelerate its focus on its business to business (“B2B”) operations. This exit plan includes the closing of substantially all of its retail stores, closing a distribution center, and implementing a general workforce reduction to align available resources with a B2B focus as well as transitioning retail customers to online consumer sales. The Company has engaged outside firms to assist with the retail store liquidation, as well as the workforce reduction, and anticipates that all of these actions will be completed by the end of the second quarter of 2015. The Company anticipates that one time exit charges will aggregate between $50 and $55 million (including approximately $4 million of severance expenses, and $39 million in lease exit costs) substantially all of which will require cash expenditures. The Company expects these costs to be paid out beginning in the first quarter of 2015 through the end of 2017. | |
On January 30, 2015, the Company announced that its Industrial Products Group had completed its previously announced acquisition of the Plant Equipment Group, a business-to-business direct marketer of maintenance, repair and operations ("MRO") products, from TAKKT America for $25.9 million in cash; post-closing working capital adjustments were deminimis. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
For the years ended December: | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Description | Balance at | Charged to | Write-offs | Other | Balance at | ||||||||||||||||
Beginning of | Expenses | End of Period | |||||||||||||||||||
Period | |||||||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||||||
2014 | $ | 5.8 | $ | 8.9 | $ | (8.3 | ) | $ | 0.1 | -1 | $ | 6.5 | |||||||||
2013 | $ | 6.3 | $ | 4 | $ | (4.5 | ) | $ | - | $ | 5.8 | ||||||||||
2012 | $ | 5.4 | $ | 5 | $ | (4.1 | ) | $ | - | $ | 6.3 | ||||||||||
Allowance for sales returns | |||||||||||||||||||||
2014 | $ | 10.9 | $ | 9.3 | $ | - | $ | (10.9 | )(2) | $ | 9.3 | ||||||||||
2013 | $ | 9.2 | $ | 10.9 | $ | - | $ | (9.2 | )(2) | $ | 10.9 | ||||||||||
2012 | $ | 9.3 | $ | 9.2 | $ | - | $ | (9.3 | )(2) | $ | 9.2 | ||||||||||
Allowance for inventory returns | |||||||||||||||||||||
2014 | $ | (9.2 | ) | $ | (7.8 | ) | - | $ | 9.2 | -2 | $ | (7.8 | ) | ||||||||
2013 | $ | (8.0 | ) | $ | (9.2 | ) | - | $ | 8 | -2 | $ | (9.2 | ) | ||||||||
2012 | $ | (7.9 | ) | $ | (8.0 | ) | - | $ | 7.9 | -2 | $ | (8.0 | ) | ||||||||
Allowance for deferred tax assets | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Current | $ | 11.2 | $ | (0.7 | ) | $ | - | $ | - | $ | 10.5 | ||||||||||
Noncurrent | $ | 28.5 | $ | 9.8 | $ | - | $ | - | $ | 38.3 | |||||||||||
2013 | |||||||||||||||||||||
Current | $ | 2.2 | $ | 9 | $ | - | $ | - | $ | 11.2 | |||||||||||
Noncurrent | $ | 8.9 | $ | 19.6 | $ | - | $ | - | $ | 28.5 | |||||||||||
2012 | |||||||||||||||||||||
Current | $ | 1.5 | $ | 0.7 | $ | - | $ | - | $ | 2.2 | |||||||||||
Noncurrent | $ | 28.4 | $ | (19.5 | ) | $ | - | $ | - | $ | 8.9 | ||||||||||
(1) Other relates to SCC Netherlands BV acquisition allowance for doubtful accounts as of acquisition date. | |||||||||||||||||||||
(2) Amounts represent gross revenue and cost reversals to the estimated sales returns and allowances accounts. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Systemax Inc. and its wholly-owned subsidiaries (collectively, the "Company" or "Systemax"). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications — Certain prior year amounts were reclassified to conform to current year presentation. |
Use of Estimates In Financial Statements | Use of Estimates In Financial Statements — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Fiscal Year | Fiscal Year — The Company's fiscal year ends at midnight on the Saturday closest to December 31. For clarity of presentation herein, all fiscal years are referred to as if they ended on December 31. The fiscal year is divided into four fiscal quarters that each end at midnight on a Saturday. Fiscal quarters will typically include 13 weeks, but the fourth quarter will include 14 weeks in a 53 week fiscal year. For clarity of presentation herein, all fiscal quarters are referred to as if they ended on the traditional calendar month. The full years of 2014, 2013 and 2012 included 52 weeks. |
Foreign Currency Translation | Foreign Currency Translation — The Company has operations in numerous foreign countries. The functional currency of each foreign country is the local currency. The financial statements of the Company's foreign entities are translated into U.S. dollars, the reporting currency, using year-end exchange rates for assets and liabilities, average exchange rates for the statement of operations items and historical rates for equity accounts. Translation gains or losses are recorded as a separate component of shareholders' equity. |
Cash | Cash — The Company considers amounts held in money market accounts and other short-term investments, including overnight bank deposits, with an original maturity date of three months or less to be cash. Cash overdrafts are classified in accounts payable. |
Inventories | Inventories — Inventories consist primarily of finished goods and are stated at the lower of cost or market value. Cost is determined by using the first-in, first-out method except in certain locations in Europe and retail locations where an average cost is used. |
Assets available for sale | Assets available for sale — Assets available for sale consisted of our former PC manufacturing facility located in Fletcher, Ohio, including land and land improvements. The cost of the land, land improvements and building has been adjusted to estimated fair market value based on quoted prices in the active market. This asset was sold in the second quarter of 2014 for $0.9 million and the remainder of the asset, $0.2 million, was recorded in special charges in the Consolidated Statements of Operations within the Technology Products segment. |
Property, Plant and Equipment | Property, Plant and Equipment — Property, plant and equipment is stated at cost. Furniture, fixtures and equipment, including equipment under capital leases, are depreciated using the straight-line or accelerated method over their estimated useful lives ranging from three to ten years. Buildings are depreciated using the straight-line method over estimated useful lives of 30 to 50 years. Leasehold improvements are amortized over the shorter of the useful lives or the term of the respective leases. |
Evaluation of Long-lived Assets | Evaluation of Long-lived Assets — Long-lived assets are evaluated for recoverability whenever events or changes in circumstances indicate that an asset may have been impaired. In evaluating an asset for recoverability, the Company estimates the future cash flows expected to result from the use of the asset and eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss, equal to the excess of the carrying amount over the fair market value of the asset is recognized. As a result of negative cash flows in its Technology Products segment operations in North America in 2014,and a forecast for continued use of cash in 2015, the Company conducted an evaluation of the long-lived assets in those operations and concluded that those assets were impaired. Accordingly an impairment charge of approximately $9.5 million, pre-tax, was recorded in the fourth quarter of 2014. |
Goodwill and intangible assets | Goodwill and intangible assets — Goodwill represents the excess of the cost of acquired assets over the fair value of assets acquired. The Company tests goodwill and identifiable intangible assets (trademarks) for impairment annually or more frequently if indicators of impairment exist. The Company assesses the carrying value of its definite-lived intangible assets if circumstances indicate that those values may not be recoverable. As a result of negative cash flows in its operations in Technology Products segment operations in North America in 2014, the Company conducted an evaluation of the intangible assets in those operations and concluded that those assets were impaired and an impairment charge of approximately $0.5 million, pre-tax, was recorded in the fourth quarter of 2014. |
In December 2013, the Company sold certain CompUSA intellectual property assets and the Company discontinued using the CompUSA brand in Puerto Rico. As a result, for the year ended December 31, 2013, the Company incurred write offs of approximately $2.9 million, pre-tax, related to the intangible assets of the CompUSA brand in Puerto Rico. | |
Accruals | Accruals — Management makes estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. These estimates are based upon various factors such as the number of units sold, historical and anticipated results and data received from third party vendors. Actual results could differ from these estimates. Our most significant estimates include those related to the costs of inventory reserves, sales returns and allowances, cooperative advertising, vendor drop shipments, and customer rebate reserves, and other vendor and employee related costs. |
Income Taxes | Income Taxes — Deferred tax assets and liabilities are recognized for the effect of temporary differences between the book and tax bases of recorded assets and liabilities and for tax loss carry forwards. The realization of net deferred tax assets is dependent upon our ability to generate sufficient future taxable income. Where it is more likely than not that some portion or the entire deferred tax asset will not be realized, we have provided a valuation allowance. If the realization of those deferred tax assets in the future is considered more likely than not, an adjustment to the deferred tax assets would increase net income in the period such determination is made. |
The Company provides for uncertain tax positions and related interest and penalties based upon management's assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established or is required to pay amounts in excess of the liability, the Company's effective tax rate in a given financial statement period may be affected. | |
Revenue Recognition and Accounts Receivable | Revenue Recognition and Accounts Receivable — The Company recognizes sales of products, including shipping revenue, when persuasive evidence of an order arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectibility is reasonably assured. Generally, these criteria are met at the time the product is received by the customers when title and risk of loss have transferred except in our Industrial Products segment where title and risk pass at time of shipment. Allowances for estimated subsequent customer returns, rebates and sales incentives are provided when revenues are recorded. Revenues exclude sales tax collected. The Company evaluates collectibility of accounts receivable based on numerous factors, including past transaction history with customers and their credit rating and provides a reserve for accounts that are potentially uncollectible. Trade receivables are generally written off once all collection efforts have been exhausted. Accounts receivable are shown in the consolidated balance sheets net of allowances for doubtful collections and subsequent customer returns. |
Shipping and handling costs | Shipping and handling costs— The Company recognizes shipping and handling costs in cost of sales. |
Advertising Costs | Advertising Costs — Expenditures for internet, television, local radio and newspaper advertising are expensed in the period the advertising takes place. Catalog preparation, printing and postage expenditures are amortized over the period of catalog distribution during which the benefits are expected, generally one to four months. |
Net advertising expenses were $66.1 million, $60.1 million and $57.7 million during 2014, 2013 and 2012, respectively, and are included in the accompanying consolidated statements of operations. The Company utilizes advertising programs to support vendors, including catalogs, internet and magazine advertising, and receives payments and credits from vendors, including consideration pursuant to volume incentive programs and cooperative marketing programs. The Company accounts for consideration from vendors as a reduction of cost of sales unless certain conditions are met showing that the funds are used for specific, incremental, identifiable costs, in which case the consideration is accounted for as a reduction in the related expense category, such as advertising expense. The amount of vendor consideration recorded as a reduction of selling, general and administrative expenses totaled $38.8 million, $45.9 million and $47.8 million during 2014, 2013 and 2012, respectively. | |
Prepaid expenses as of December 2014 and 2013 include deferred advertising costs of $0.1 million and $0.7 million, respectively which are reflected as an expense during the periods benefited, typically the subsequent fiscal quarter. | |
Stock based compensation | Stock based compensation — The Company recognizes the fair value of share based compensation in the consolidated statement of operations over the requisite employee service period. Stock-based compensation expense includes an estimate for forfeitures and is recognized over the expected term of the award. |
Net Income Per Common Share | Net Income Per Common Share – Net income per common share - basic was calculated based upon the weighted average number of common shares outstanding during the respective periods presented using the two class method of computing earnings per share. The two class method was used as the Company has outstanding restricted stock with rights to dividend participation for unvested shares. Net income per common share - diluted was calculated based upon the weighted average number of common shares outstanding and included the equivalent shares for dilutive options outstanding during the respective periods, including unvested options. The dilutive effect of outstanding options and restricted stock issued by the Company is reflected in net income per share - diluted using the treasury stock method. Under the treasury stock method, options will only have a dilutive effect when the average market price of common stock during the period exceeds the exercise price of the options. The weighted average number of stock options outstanding included in the computation of diluted earnings (loss) per share was zero shares for the years ended December 31, 2014, 2013 and 2012. The weighted average number of restricted stock awards included in the computation of diluted (loss) per share was zero shares for the year December 31, 2014, 2013, and 2012. The weighted average number of stock options outstanding excluded from the computation of diluted earnings per share was 0.8 million shares, 1.2 million shares and 1.1 million shares for the years ended December 31, 2014, 2013 and 2012, respectively, due to their antidilutive effect. The weighted average number of restricted awards outstanding excluded from the computation of diluted (loss) per share was zero shares, 0.1 million shares and zero shares for the years ended December 31, 2014, 2013 and 2012, respectively, due to their antidilutive effect. |
Employee Benefit Plans | Employee Benefit Plans - The Company's U.S. subsidiaries participate in a defined contribution 401(k) plan covering substantially all U.S. employees. Employees may invest 1% or more of their eligible compensation, limited to maximum amounts as determined by the Internal Revenue Service. The Company provides a matching contribution to the plan, determined as a percentage of the employees' contributions. Aggregate expense to the Company for contributions to such plans was approximately $0.9 million, $0.9 million and $1.0 million in 2014, 2013 and 2012, respectively. |
Fair Value Measurements | Fair Value Measurements - Financial instruments consist primarily of investments in cash, trade accounts receivable, debt and accounts payable. The Company estimates the fair value of financial instruments based on interest rates available to the Company. At December 31, 2014 and 2013, the carrying amounts of cash, accounts receivable and accounts payable are considered to be representative of their respective fair values due to their short-term nature. The Company's debt is considered to be representative of its fair value because of its variable interest rate. |
The fair value of goodwill, non-amortizing intangibles and long lived assets is measured in connection with the Company's annual impairment testing. The Company performs a qualitative assessment of goodwill and non-amortizing intangibles to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment shows that the fair value of the reporting unit exceeds its carrying amount, the company is not required to complete the annual two step goodwill impairment test. If a quantitative analysis is required to be performed for goodwill, the fair value of the reporting unit to which the goodwill has been assigned is determined using a discounted cash flow model. A discounted cash flow model is also used to determine fair value of indefinite-lived intangibles using projected cash flows of the intangible. Unobservable inputs related to these discounted cash flow models include projected sales growth, same store sales growth, gross margin percentages, new business opportunities, working capital requirements, capital expenditures and growth in selling, general and administrative expense and are classified in accordance with ASC 820, "Fair Value Measurements and Disclosures", within Level 3 of the valuation hierarchy. Long lived assets are assets used in the Company's operations and include leasehold improvements, warehouse and retail store fixtures and similar property used to generate sales and cash flows. Long lived assets are tested for impairment utilizing a recoverability test. The recoverability test compares the carrying value of an asset group to the undiscounted cash flows directly attributable to the asset group over the life of the primary asset. If the undiscounted cash flows of an asset group is less than the carrying value of the asset group, the fair value of the asset group is then measured. If the fair value is also determined to be less than the carrying value of the asset group, the asset group is impaired. In 2014 the Company's evaluation of the intangible assets in its Technology Products segment in North America concluded that certain long lived assets were impaired and an impairment charge of approximately $9.5 million, pre-tax, was recorded in the fourth quarter of 2014. | |
Significant Concentration | Significant Concentrations - Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and accounts receivable. The Company's excess cash balances are invested with money center banks. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers and their geographic dispersion comprising the Company's customer base. The Company also performs on-going credit evaluations and maintains allowances for potential losses as warranted. |
We purchase substantially all of our products and components directly from manufacturers and large wholesale distributors. In 2014, two vendors accounted for 10% or more of our purchases – one vendor was 12.6%; the other vendor was 11.6%. In 2013, one vendor accounted for 13.9% of our purchases and in 2012, no vendor accounted for 10% or more of our purchases. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
Public companies in the United States are subject to the accounting and reporting requirements of various authorities, including the Financial Accounting Standards Board ("FASB") and the Securities and Exchange Commission ("SEC"). These authorities issue numerous pronouncements, most of which are not applicable to the Company's current or reasonably foreseeable operating structure. Below are the new authoritative pronouncements that management believes are relevant to Company's current operations. | |
In April 2014, the FASB issued ASU 2014-08, "Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity". This ASU provides new guidance related to the definition of a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. This new guidance is effective for annual periods beginning on or after December 15, 2014 and interim periods within those years. Beginning in 2015, the Company will apply this new guidance, as applicable. | |
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers". This ASU provides new guidance related to how an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In addition, this ASU specifies new accounting for costs associated with obtaining or fulfilling contracts with customers and expands the required disclosures related to revenue and cash flows from contracts with customers. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and can be adopted either retrospectively to each reporting period presented or as a cumulative effect adjustment as of the date of the adoption, with early application not permitted. The Company is currently determining its implementation approach and assessing the impact, if any, on the condensed consolidated financial statements. |
ACQUISITION_Tables
ACQUISITION (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
ACQUISITION [Abstract] | |||||||||
Gross Carrying Amount and Accumulated Amortization for Amortizable Assets Related to Acquisition | The gross carrying amount and accumulated amortization for amortizable assets related to this acquisition at December 31, 2014 was as follows (in millions): | ||||||||
December 31, | |||||||||
2014 | |||||||||
Gross Carrying Amount | Accumulated Amortization | ||||||||
Client lists | $ | 1 | $ | 0.1 | |||||
Total | $ | 1 | 0.1 |
GOODWILL_AND_INTANGIBLES_Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
GOODWILL AND INTANGIBLES [Abstract] | |||||||||||||||||
Schedule of Carrying Value of Goodwill | The following table provides information related to the carrying value of goodwill (in millions): | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance January 1 | $ | 2.4 | $ | 2.4 | |||||||||||||
Adjustments to purchase price allocation | 1.2 | - | |||||||||||||||
Deferred tax adjustment | 0.3 | - | |||||||||||||||
Balance December 31 | $ | 3.9 | $ | 2.4 | |||||||||||||
Schedule of Indefinite-Lived Intangible Assets | The following table summarizes information related to indefinite-lived intangible assets (in millions): | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance January 1 | $ | 2.3 | $ | 5.4 | |||||||||||||
Adjustments to purchase price allocation | 0.2 | - | |||||||||||||||
Intangible write offs | - | (2.9 | ) | ||||||||||||||
Sale proceeds | - | (0.2 | ) | ||||||||||||||
Balance December 31 | $ | 2.5 | $ | 2.3 | |||||||||||||
Schedule of Definite-Lived Intangible Assets | The following table summarizes information related to definite-lived intangible assets (in millions): | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||
Retail store leases | $ | 3.4 | 3.4 | $ | 3.4 | $ | 2.5 | ||||||||||
Client lists | 3.6 | 2.6 | 2.6 | 2.2 | |||||||||||||
Technology | 1 | 1 | 1 | 0.9 | |||||||||||||
Total | $ | 8 | 7 | $ | 7 | $ | 5.6 | ||||||||||
Schedule of Aggregate Amortization Expense for Intangibles | The aggregate amortization expense for these intangibles was approximately $1.4 million in 2014. The estimated amortization for future years ending December 31 is as follows (in millions): | ||||||||||||||||
2015 | $ | 0.2 | |||||||||||||||
2016 | 0.2 | ||||||||||||||||
2017 | 0.2 | ||||||||||||||||
2018 and after | 0.4 | ||||||||||||||||
Total | 1 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |||||||||
Property, Plant and Equipment, Net | Property, plant and equipment, net consist of the following (in millions): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land and buildings | $ | 18.6 | $ | 19.7 | |||||
Furniture and fixtures, office, computer and other equipment and software | 127.6 | 129.2 | |||||||
Leasehold improvements | 26.8 | 30.8 | |||||||
173 | 179.7 | ||||||||
Less accumulated depreciation and amortization | 131.8 | 120.3 | |||||||
Property, plant and equipment, net | $ | 41.2 | $ | 59.4 | |||||
Property, Plant and Equipment, Assets Under Capital Leases | Included in property, plant and equipment are assets under capital leases, as follows (in thousands): | ||||||||
2014 | 2013 | ||||||||
Office, computer and other equipment | $ | 17.4 | $ | 17.4 | |||||
Less: Accumulated amortization | 14.5 | 12 | |||||||
$ | 2.9 | $ | 5.4 |
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |||||||||
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in millions): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Payroll and employee benefits | $ | 34.6 | $ | 33 | |||||
Advertising | 11.9 | 10 | |||||||
Sales and VAT tax payable | 9.3 | 9 | |||||||
Freight | 8 | 6.7 | |||||||
Reorganization costs | 4.7 | 8 | |||||||
Other | 24.5 | 22.5 | |||||||
$ | 93 | $ | 89.2 |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
LONG-TERM DEBT [Abstract] | |||||||||||||||||||||
Schedule of Long-term Debt | Long-term debt consists of (in millions): | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Warehouse capitalized equipment lease | $ | 2.2 | $ | 4.1 | |||||||||||||||||
Other capitalized equipment lease | 1.4 | 1.3 | |||||||||||||||||||
Subtotal | 3.6 | 5.4 | |||||||||||||||||||
Less: current portion | 2.7 | 2.5 | |||||||||||||||||||
$ | 0.9 | $ | 2.9 | ||||||||||||||||||
Schedule of Maturities of Long-Term Debt Outstanding | The aggregate maturities of long-term debt outstanding at December 31, 2014 are as follows (in millions): | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||
Maturities | $ | 2.7 | $ | 0.6 | $ | 0.3 | $ | - | $ | - |
SPECIAL_CHARGES_NET_Tables
SPECIAL CHARGES, NET (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SPECIAL CHARGES, NET [Abstract] | |||||||||||||
Special Charge Liabilities | The following table details the associated liabilities incurred related to the Technology Products segments special charges (in millions): | ||||||||||||
Workforce Reductions and Personnel Costs | Other Exit | Total | |||||||||||
Costs | |||||||||||||
Balance January 1, 2014 | $ | 7 | $ | 5.1 | $ | 12.1 | |||||||
Charged to expense | 11.7 | 0.1 | 11.8 | ||||||||||
Paid or otherwise settled | (14.0 | ) | (5.2 | ) | (19.2 | ) | |||||||
Balance December 31, 2014 | $ | 4.7 | $ | - | $ | 4.7 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDER'S EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | |||||||||||||||||||||||||
Schedule of Weighted-Average Assumptions Used To Estimate the Fair Value of Options Granted | The following table presents the weighted-average assumptions used to estimate the fair value of options granted in 2014, 2013 and 2012: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Expected annual dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||||||
Risk-free interest rate | 2.02 | % | 1.66 | % | 1.1 | % | |||||||||||||||||||
Expected volatility | 47.1 | % | 41.1 | % | 57.3 | % | |||||||||||||||||||
Expected life in years | 6.2 | 7.9 | 6.3 | ||||||||||||||||||||||
Schedule of Outstanding and Exercisable Options | The following table summarizes information concerning outstanding and exercisable options: | ||||||||||||||||||||||||
Weighted Average | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Shares | Exercise | Shares | Exercise | Shares | Exercise | ||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||
Outstanding at beginning of year | 1,175,499 | $ | 16.11 | 1,353,059 | $ | 15.88 | 1,285,115 | $ | 13.39 | ||||||||||||||||
Granted | 65,000 | $ | 12.39 | 60,000 | $ | 9.54 | 772,500 | $ | 15 | ||||||||||||||||
Exercised | (33,749 | ) | $ | 9.78 | (34,310 | ) | $ | 3.04 | (109,466 | ) | $ | 3.12 | |||||||||||||
Cancelled or expired | (104,500 | ) | $ | 15.83 | (203,250 | ) | $ | 14.84 | (595,090 | ) | $ | 11.71 | |||||||||||||
Outstanding at end of year | 1,102,250 | $ | 16.11 | 1,175,499 | $ | 16.11 | 1,353,059 | $ | 15.88 | ||||||||||||||||
Options exercisable at year end | 839,500 | 772,749 | 682,809 | ||||||||||||||||||||||
Weighted average fair value per option granted during the year | $ | 5.92 | $ | 4.44 | $ | 7.9 | |||||||||||||||||||
Schedule of Options Vested and Exercisable or Nonvested, Expected to Vest (Nonvested Outstanding Less Expected Forfeitures) | The following table summarizes information about options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) at December 31, 2014: | ||||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted | Weighted Average | Aggregate | |||||||||||||||||||||
Exercisable | Average | Remaining | Intrinsic | ||||||||||||||||||||||
Exercise | Contractual Life | Value (in | |||||||||||||||||||||||
Price | millions) | ||||||||||||||||||||||||
$ | 5 | to | $ | 10 | 51,202 | $ | 9.26 | 7.91 | $ | 0.2 | |||||||||||||||
$ | 10.01 | to | $ | 15 | 384,237 | $ | 13.08 | 5.57 | 0.3 | ||||||||||||||||
$ | 15.01 | to | $ | 20 | 529,774 | $ | 18.31 | 4.77 | - | ||||||||||||||||
$ | 20.01 | to | $ | 20.15 | 100,000 | $ | 20.15 | 2.06 | - | ||||||||||||||||
$ | 5 | to | $ | 20.15 | 1,065,213 | $ | 16.16 | 4.95 | $ | 0.5 | |||||||||||||||
Schedule of Unvested Stock Options | The following table reflects the activity for all unvested stock options during 2014: | ||||||||||||||||||||||||
Shares | Weighted | ||||||||||||||||||||||||
Average Grant- | |||||||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||||||
Unvested at January 1, 2014 | 402,750 | $ | 8.58 | ||||||||||||||||||||||
Granted | 65,000 | $ | 5.92 | ||||||||||||||||||||||
Vested | (134,000 | ) | $ | 8.77 | |||||||||||||||||||||
Forfeited | (71,000 | ) | $ | 7.02 | |||||||||||||||||||||
Unvested at December 31, 2014 | 262,750 | $ | 8.25 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
INCOME TAXES [Abstract] | |||||||||||||||||||||||||
Components of Income before Income Taxes | The components of income (loss) from continuing operations before income taxes are as follows (in millions): | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
United States | $ | (9.3 | ) | $ | (18.8 | ) | $ | (66.5 | ) | ||||||||||||||||
Foreign | (23.3 | ) | (3.0 | ) | 24.9 | ||||||||||||||||||||
Total | $ | (32.6 | ) | $ | (21.8 | ) | $ | (41.6 | ) | ||||||||||||||||
Schedule of Provision for Income Taxes | The (benefit) provision for income taxes consists of the following (in millions): | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | (0.3 | ) | $ | (8.2 | ) | $ | (5.4 | ) | ||||||||||||||||
State | 0.6 | 0.6 | 0.3 | ||||||||||||||||||||||
Foreign | 4.1 | 3.2 | 8.1 | ||||||||||||||||||||||
Total current | 4.4 | (4.4 | ) | 3 | |||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | - | 20.5 | (16.5 | ) | |||||||||||||||||||||
State | (0.5 | ) | 4.8 | (3.3 | ) | ||||||||||||||||||||
Foreign | 1 | 1.1 | (16.8 | ) | |||||||||||||||||||||
Total deferred | 0.5 | 26.4 | (36.6 | ) | |||||||||||||||||||||
TOTAL | $ | 4.9 | $ | 22 | $ | (33.6 | ) | ||||||||||||||||||
Reconciliation of Difference between Income Tax Expense and Computed Income Tax Expense Based on Federal Statutory Corporate Rate | A reconciliation of the difference between the income tax expense and the computed income tax expense based on the Federal statutory corporate rate is as follows (in millions): | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Income tax at Federal statutory rate | $ | (11.4 | ) | (35.0 | )% | $ | (7.60 | ) | (35.0 | )% | $ | (14.5 | ) | (35.0 | )% | ||||||||||
Foreign taxes at rates different from the U.S. rate | 6.1 | 18.7 | 2.3 | 10.6 | (3.7 | ) | (8.9 | ) | |||||||||||||||||
State and local income taxes, net of federal tax benefit | 1.3 | 4 | (0.3 | ) | (1.4 | ) | (2.1 | ) | (5.0 | ) | |||||||||||||||
Changes in valuation allowances | 9.1 | 27.9 | 28.9 | 132.6 | (13.3 | ) | (31.9 | ) | |||||||||||||||||
Change in deferred tax liability | - | - | (1.2 | ) | (5.5 | ) | - | - | |||||||||||||||||
Non-deductible items | - | - | 0.1 | 0.5 | 0.1 | 0.2 | |||||||||||||||||||
Other items, net | (0.2 | ) | (0.6 | ) | (0.2 | ) | (0.9 | ) | (0.1 | ) | (0.2 | ) | |||||||||||||
Income tax | $ | 4.9 | 15 | % | $ | 22 | 100.9 | % | $ | (33.6 | ) | (80.8 | )% | ||||||||||||
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities are comprised of the following (in millions): | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Accrued expenses and other liabilities | $ | 10.5 | $ | 10.8 | |||||||||||||||||||||
Inventory | 4.2 | 4.6 | |||||||||||||||||||||||
Valuation allowances | (10.5 | ) | (11.2 | ) | |||||||||||||||||||||
Total current assets | $ | 4.2 | $ | 4.2 | |||||||||||||||||||||
Non-current: | |||||||||||||||||||||||||
Net operating loss and credit carryforwards | $ | 35 | $ | 30.1 | |||||||||||||||||||||
Depreciation | 2.5 | 2 | |||||||||||||||||||||||
Intangible & other | 16.2 | 15.2 | |||||||||||||||||||||||
Valuation allowances | (38.3 | ) | (28.5 | ) | |||||||||||||||||||||
Total non-current assets | $ | 15.4 | $ | 18.8 | |||||||||||||||||||||
Liabilities : | |||||||||||||||||||||||||
Current : | |||||||||||||||||||||||||
Deductible assets | $ | 1.5 | $ | 0.7 | |||||||||||||||||||||
Other | 1 | 1.2 | |||||||||||||||||||||||
Total current liabilities | $ | 2.5 | $ | 1.9 | |||||||||||||||||||||
Non-current: | |||||||||||||||||||||||||
Amortization | $ | 1.2 | $ | 1.1 | |||||||||||||||||||||
Depreciation | 0.1 | 1.8 | |||||||||||||||||||||||
Other | 0.6 | 0.6 | |||||||||||||||||||||||
Total non-current liabilities | $ | 1.9 | $ | 3.5 |
COMMITMENTS_CONTINGENCIES_AND_1
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS [Abstract] | ||||||||||||||
Future Minimum Annual Lease Payments for Capital Leases and Related and Third-Party Operating Leases | At December 31, 2014, the future minimum annual lease payments for capital leases and related and third-party operating leases were as follows (in millions): | |||||||||||||
Capital | Operating | Total | ||||||||||||
Leases | Leases | |||||||||||||
2015 | 2.8 | $ | 28.3 | $ | 31.1 | |||||||||
2016 | 0.6 | 26.4 | 27 | |||||||||||
2017 | 0.3 | 26 | 26.3 | |||||||||||
2018 | - | 21.4 | 21.4 | |||||||||||
2019 | - | 19.1 | 19.1 | |||||||||||
2020-2024 | - | 51.7 | 51.7 | |||||||||||
2025-2029 | - | 25.6 | 25.6 | |||||||||||
Thereafter | - | 8 | 8 | |||||||||||
Total minimum lease payments | 3.7 | 206.5 | 210.2 | |||||||||||
Less: sublease rental income | - | 2.5 | 2.5 | |||||||||||
Lease obligation net of subleases | 3.7 | $ | 204 | 207.7 | ||||||||||
Less: amount representing interest | 0.1 | |||||||||||||
Present value of minimum capital lease payments (including current portion of $2.7) | $ | 3.6 |
SEGMENT_AND_RELATED_INFORMATIO1
SEGMENT AND RELATED INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SEGMENT AND RELATED INFORMATION [Abstract] | |||||||||||||
Financial Information by Reportable Segment | Financial information relating to the Company's operations by reportable segment was as follows (in millions): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net Sales: | |||||||||||||
Technology Products | $ | 2,880.90 | $ | 2,873.30 | $ | 3,137.60 | |||||||
Industrial Products | 556 | 473.8 | 401.9 | ||||||||||
Corporate and other | 5.9 | 5.2 | 4.8 | ||||||||||
Consolidated | $ | 3,442.80 | $ | 3,352.30 | $ | 3,544.30 | |||||||
Depreciation and Amortization Expense: | |||||||||||||
Technology Products | $ | 12.9 | $ | 16.1 | $ | 15.1 | |||||||
Industrial Products | 2.1 | 2.2 | 1.9 | ||||||||||
Corporate and other | 1.3 | 1 | 1 | ||||||||||
Consolidated | $ | 16.3 | $ | 19.3 | $ | 18 | |||||||
Operating Income (Loss): | |||||||||||||
Technology Products | $ | (51.3 | ) | $ | (40.6 | ) | $ | (47.2 | ) | ||||
Industrial Products | 41 | 40 | 29.9 | ||||||||||
Corporate and other expenses | (15.6 | ) | (20.0 | ) | (22.6 | ) | |||||||
Consolidated | $ | (25.9 | ) | $ | (20.6 | ) | $ | (39.9 | ) | ||||
Total Assets | |||||||||||||
Technology Products | $ | 501.9 | $ | 598.3 | $ | 564.4 | |||||||
Industrial Products | 136.4 | 110 | 157.7 | ||||||||||
Corporate and other | 256.6 | 233.9 | 240.2 | ||||||||||
Consolidated | $ | 894.9 | $ | 942.2 | $ | 962.3 | |||||||
Financial Information by Geographic Area | Financial information relating to the Company's operations by geographic area was as follows (in millions): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net Sales: | |||||||||||||
United States | $ | 2,061.80 | $ | 2,051.10 | 2.203.2 | ||||||||
United Kingdom | 471.9 | 468.5 | 491.7 | ||||||||||
France | 383.2 | 335.4 | 312.7 | ||||||||||
Other Europe | 334.8 | 291.5 | 322.3 | ||||||||||
Other North America | 191.1 | 205.8 | 214.4 | ||||||||||
Consolidated | $ | 3,442.80 | $ | 3,352.30 | 3,544.30 | ||||||||
Long-lived Assets: | |||||||||||||
United States | $ | 16.7 | $ | 32.3 | $ | 42 | |||||||
United Kingdom | 17.5 | 18.7 | 16.6 | ||||||||||
France | 0.8 | 0.9 | 0.1 | ||||||||||
Other Europe and Asia | 5.5 | 6.4 | 2.7 | ||||||||||
Other North America | 0.7 | 1.1 | 1.6 | ||||||||||
Consolidated | $ | 41.2 | $ | 59.4 | $ | 63 |
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly financial data, excluding discontinued operations, is as follows (in millions, except for per share amounts): | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
2014:00:00 | |||||||||||||||||
Net sales | $ | 873.4 | $ | 831.1 | $ | 825.4 | $ | 912.9 | |||||||||
Gross profit | $ | 127.9 | $ | 123.3 | $ | 117.5 | $ | 124.5 | |||||||||
Net loss | $ | (3.0 | ) | $ | (6.2 | ) | $ | (2.8 | ) | $ | (25.5 | ) | |||||
Net loss per common share: | |||||||||||||||||
Basic | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.08 | ) | $ | (0.69 | ) | |||||
Diluted | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.08 | ) | $ | (0.69 | ) | |||||
2013:00:00 | |||||||||||||||||
Net sales | $ | 880.6 | $ | 805.7 | $ | 791.8 | $ | 874.2 | |||||||||
Gross profit | $ | 121.6 | $ | 116.3 | $ | 116.8 | $ | 128.2 | |||||||||
Net loss | $ | (6.3 | ) | $ | (6.1 | ) | $ | (11.6 | ) | $ | (19.8 | ) | |||||
Net loss per common share: | |||||||||||||||||
Basic | $ | (0.17 | ) | $ | (0.16 | ) | $ | (0.31 | ) | $ | (0.54 | ) | |||||
Diluted | $ | (0.17 | ) | $ | (0.16 | ) | $ | (0.31 | ) | $ | (0.54 | ) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets available for sale [Abstract] | |||||
Asset sold | $0.90 | $1 | $0.30 | $0.10 | |
Special charges | 0.2 | ||||
Evaluation of Long-lived Assets [Abstract] | |||||
Impairment charge | 9.5 | 9.5 | |||
Goodwill and Intangible Asset [Abstract] | |||||
Impairment charge | 0.5 | ||||
Intangible write-offs | 0 | 2.9 | |||
Advertising Costs [Abstract] | |||||
Amortization period, minimum | 1 month | ||||
Amortization period, maximum | 4 months | ||||
Advertising expense | 66.1 | 60.1 | 57.7 | ||
Vendor consideration | 38.8 | 45.9 | 47.8 | ||
Deferred advertising costs | 0.1 | 0.1 | 0.7 | ||
Net Income Per Common Share [Abstract] | |||||
Weighted average number of stock options outstanding, treasury stock (in shares) | 0 | 0 | 0 | ||
Weighted average number of stock options outstanding, restricted stock (in shares) | 0 | 0 | 0 | ||
Employee Benefit Plans [Abstract] | |||||
Minimum annual contribution per employee (in hundredths) | 1.00% | ||||
Aggregate expense in contributions plans | 0.9 | 0.9 | 1 | ||
Fair Value Measurements [Abstract] | |||||
Impairment charge | $9.50 | $9.50 | |||
Concentration Risk [Line Items] | |||||
Concentration of risk threshold (in hundredths) | 10.00% | 10.00% | |||
Supplier Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (in hundredths) | 13.90% | 0.00% | |||
Supplier Concentration Risk [Member] | Vendor One [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (in hundredths) | 12.60% | ||||
Supplier Concentration Risk [Member] | Vendor Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (in hundredths) | 11.60% | ||||
Restricted Stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0.1 | 0 | ||
Stock Options [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.8 | 1.2 | 1.1 | ||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | P3Y | ||||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | P10Y | ||||
Building [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | P30Y | ||||
Building [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | P50Y |
ACQUISITION_Details
ACQUISITION (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 12, 2014 | Jun. 12, 2014 | Dec. 31, 2014 | Jun. 12, 2014 | Jun. 12, 2014 | Dec. 31, 2014 | Jun. 12, 2014 | Jun. 12, 2014 | Jun. 12, 2014 |
In Millions, unless otherwise specified | USD ($) | USD ($) | USD ($) | Client Lists [Member] | Client Lists [Member] | Misco Solutions B.V. [Member] | Misco Solutions B.V. [Member] | Misco Solutions B.V. [Member] | Misco Solutions B.V. [Member] | Misco Solutions B.V. [Member] | Misco Solutions B.V. [Member] | Misco Solutions B.V. [Member] | Misco Solutions B.V. [Member] | Misco Solutions B.V. [Member] |
USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | Client Lists [Member] | Client Lists [Member] | Client Lists [Member] | Trademarks [Member] | ||||
USD ($) | Amortizable Intangible Assets One [Member] | Amortizable Intangible Assets Two [Member] | USD ($) | |||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Payments to Acquire Businesses, Gross | $7.30 | € 5.40 | ||||||||||||
Escrow deposit to secure sellers' indemnification obligations | 0.6 | 0.4 | ||||||||||||
Duration period of escrow deposit | 1 year | 1 year | ||||||||||||
Goodwill | 3.9 | 2.4 | 2.4 | 1.5 | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||||
Gross Carrying Amount | 1 | 1 | 0.2 | |||||||||||
Accumulated Amortization | $7 | $5.60 | $2.60 | $2.20 | $0.10 | $0.10 | ||||||||
Percentage of Expected Amortization of Finite Intangible Assets | 62.00% | 38.00% | ||||||||||||
Useful life of intangible assets | 10 years | 4 years |
GOODWILL_AND_INTANGIBLES_Detai
GOODWILL AND INTANGIBLES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 12, 2014 |
Goodwill [Roll Forward] | |||
Balance at beginning of period | $2.40 | $2.40 | |
Adjustments to purchase price allocation | 1.2 | 0 | |
Deferred tax adjustment | 0.3 | 0 | |
Balance at end of period | 3.9 | 2.4 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Balance January 1 | 2.3 | 5.4 | |
Adjustments to purchase price allocation | 0.2 | 0 | |
Intangible write offs | 0 | -2.9 | |
Sale proceeds | 0 | -0.2 | |
Balance December 31 | 2.5 | 2.3 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 8 | 7 | |
Accumulated Amortization | 7 | 5.6 | |
Amortization expense | 1.4 | ||
Aggregate amortization expense for intangibles [Abstract] | |||
2015 | 0.2 | ||
2016 | 0.2 | ||
2017 | 0.2 | ||
2018 and after | 0.4 | ||
Total | 1 | ||
Misco Solutions B.V. [Member] | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | 1.5 | ||
Balance at end of period | 1.5 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | 0.1 | ||
Intangible assets | 1 | ||
Retail Store Leases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3.4 | 3.4 | |
Accumulated Amortization | 3.4 | 2.5 | |
Impairment charges | 0.9 | ||
Retail Store Leases [Member] | Misco Solutions B.V. [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | 0.5 | ||
Intangible assets | 1 | ||
Client Lists [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3.6 | 2.6 | |
Accumulated Amortization | 2.6 | 2.2 | |
Client Lists [Member] | Misco Solutions B.V. [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | 0.1 | ||
Intangible assets | 1 | ||
Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1 | 1 | |
Accumulated Amortization | $1 | $0.90 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, plant and equipment, net [Abstract] | ||||
Property, plant and equipment, Gross | $173 | $173 | $179.70 | |
Less accumulated depreciation and amortization | 131.8 | 131.8 | 120.3 | |
Property, plant and equipment, net | 41.2 | 41.2 | 59.4 | |
Included in property, plant and equipment are assets under capital leases [Abstract] | ||||
Property, plant and equipment, assets under capital leases Gross | 17.4 | 17.4 | 17.4 | |
Less: Accumulated amortization | 14.5 | 14.5 | 12 | |
Property, plant and equipment, assets under capital leases, net | 2.9 | 2.9 | 5.4 | |
Depreciation | 15.4 | 17.4 | 16.6 | |
Impairment charge | 9.5 | 9.5 | ||
Land and Buildings [Member] | ||||
Property, plant and equipment, net [Abstract] | ||||
Property, plant and equipment, Gross | 18.6 | 18.6 | 19.7 | |
Furniture and Fixtures, Office, Computer and Other Equipment and Software [Member] | ||||
Property, plant and equipment, net [Abstract] | ||||
Property, plant and equipment, Gross | 127.6 | 127.6 | 129.2 | |
Leasehold Improvements [Member] | ||||
Property, plant and equipment, net [Abstract] | ||||
Property, plant and equipment, Gross | $26.80 | $26.80 | $30.80 |
CREDIT_FACILITIES_Details
CREDIT FACILITIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Line of Credit Facility [Line Items] | |||
Weighted average interest rate on short-term borrowings | 4.30% | 4.30% | 4.30% |
Revolving Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Secured revolving credit agreement, maximum borrowing capacity | $125 | ||
Line of credit facility optional maximum borrowing capacity subject to conditions | 200 | ||
Term of credit facility | 5 years | ||
Credit facility, maturing date | 26-Oct-15 | ||
Percentage of eligible accounts receivable for borrowings, maximum (in hundredths) | 85.00% | ||
Percentage of qualified inventories for borrowings, maximum (in hundredths) | 40.00% | ||
Variable rate basis | LIBOR or the Prime Rate | ||
Eligible collateral letters of credit | 121.9 | ||
Availability under line of credit | 116.4 | ||
Total outstanding letters of credit | $5.50 |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||
Payroll and employee benefits | $34.60 | $33 |
Advertising | 11.9 | 10 |
Sales and VAT tax payable | 9.3 | 9 |
Freight | 8 | 6.7 |
Reorganization costs | 4.7 | 8 |
Other | 24.5 | 22.5 |
Accrued expenses and other current liabilities | $93 | $89.20 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
LONG-TERM DEBT [Abstract] | ||
Recovery zone facility bond, maturity date | 1-Oct-18 | |
Capital equipment lease maturity date | 1-Oct-18 | |
Additional amount to be paid over principal and interest to acquire ownership | $1 | |
Capitalized equipment lease obligation [Abstract] | ||
Capitalized lease obligations | 3,600,000 | 5,400,000 |
Less: current portion | 2,700,000 | 2,500,000 |
Long term debt | 900,000 | 2,900,000 |
Maturities of long-term debt outstanding [Abstract] | ||
2015 | 2,700,000 | |
2016 | 600,000 | |
2017 | 300,000 | |
2018 | 0 | |
2019 | 0 | |
Warehouse Capitalized Equipment Lease [Member] | ||
Capitalized equipment lease obligation [Abstract] | ||
Capitalized lease obligations | 2,200,000 | 4,100,000 |
Other Capitalized Equipment Lease [Member] | ||
Capitalized equipment lease obligation [Abstract] | ||
Capitalized lease obligations | $1,400,000 | $1,300,000 |
SPECIAL_CHARGES_NET_Details
SPECIAL CHARGES, NET (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
Special Charges [Abstract] | ||||
Special charges | $0.20 | |||
Lease termination costs | 39 | |||
European Shared Services Center [Member] | ||||
Special Charges [Abstract] | ||||
Recruitment costs | 0.5 | |||
Technology Products [Member] | ||||
Special Charges [Abstract] | ||||
Balance beginning of period | 12.1 | |||
Charged to expense | 11.8 | |||
Paid or otherwise settled | -19.2 | |||
Balance end of period | 4.7 | 4.7 | ||
Special charges | 24.3 | |||
Intangible assets impairment charge | 10 | |||
Technology Products [Member] | Workforce Reductions and Other Exit Costs [Member] | ||||
Special Charges [Abstract] | ||||
Special charges | 11.7 | |||
Technology Products [Member] | Closing of Underperforming Retail Stores [Member] | ||||
Special Charges [Abstract] | ||||
Special charges | 0.3 | |||
Technology Products [Member] | Facility Closing and Exit from PC Manufacturing Business [Member] | ||||
Special Charges [Abstract] | ||||
Special charges | 0.2 | |||
Technology Products [Member] | Legal And Professional Fees [Member] | ||||
Special Charges [Abstract] | ||||
Special charges | 1.5 | |||
Technology Products [Member] | Workforce Reductions and Personnel Costs [Member] | ||||
Special Charges [Abstract] | ||||
Balance beginning of period | 7 | |||
Charged to expense | 11.7 | |||
Paid or otherwise settled | -14 | |||
Balance end of period | 4.7 | 4.7 | ||
Technology Products [Member] | Other Exit Costs [Member] | ||||
Special Charges [Abstract] | ||||
Balance beginning of period | 5.1 | |||
Charged to expense | 0.1 | |||
Paid or otherwise settled | -5.2 | |||
Balance end of period | 0 | 0 | ||
Corporate and Other [Member] | Severance [Member] | ||||
Special Charges [Abstract] | ||||
Special charges | $0.10 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDER'S EQUITY (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2006 | 31-May-05 | Oct. 31, 2004 | Nov. 30, 2011 | Oct. 31, 2011 | Aug. 31, 2010 | Mar. 31, 2012 |
Plan | Installment | Installment | Installment | Installment | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of compensation plans | 5 | |||||||||
Share based compensation cost | $1.50 | $2.90 | $4.10 | |||||||
5.00 to 10.00 [Member] | ||||||||||
Options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) [Abstract] | ||||||||||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $5 | |||||||||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $10 | |||||||||
Number Exercisable (in shares) | 51,202 | |||||||||
Weighted Average Exercise Price (in dollars per share) | $9.26 | |||||||||
Weighted Average Remaining Contractual Life | 7 years 10 months 28 days | |||||||||
Aggregate Intrinsic Value | 0.2 | |||||||||
10.01 to 15.00 [Member] | ||||||||||
Options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) [Abstract] | ||||||||||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $10.01 | |||||||||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $15 | |||||||||
Number Exercisable (in shares) | 384,237 | |||||||||
Weighted Average Exercise Price (in dollars per share) | $13.08 | |||||||||
Weighted Average Remaining Contractual Life | 5 years 6 months 25 days | |||||||||
Aggregate Intrinsic Value | 0.3 | |||||||||
15.01 to 20.00 [Member] | ||||||||||
Options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) [Abstract] | ||||||||||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $15.01 | |||||||||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $20 | |||||||||
Number Exercisable (in shares) | 529,774 | |||||||||
Weighted Average Exercise Price (in dollars per share) | $18.31 | |||||||||
Weighted Average Remaining Contractual Life | 4 years 9 months 7 days | |||||||||
Aggregate Intrinsic Value | 0 | |||||||||
20.01 to 20.15 [Member] | ||||||||||
Options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) [Abstract] | ||||||||||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $20.01 | |||||||||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $20.15 | |||||||||
Number Exercisable (in shares) | 100,000 | |||||||||
Weighted Average Exercise Price (in dollars per share) | $20.15 | |||||||||
Weighted Average Remaining Contractual Life | 2 years 0 months 22 days | |||||||||
Aggregate Intrinsic Value | 0 | |||||||||
5.00 to 20.15 [Member] | ||||||||||
Options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) [Abstract] | ||||||||||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $5 | |||||||||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $20.15 | |||||||||
Number Exercisable (in shares) | 1,065,213 | |||||||||
Weighted Average Exercise Price (in dollars per share) | $16.16 | |||||||||
Weighted Average Remaining Contractual Life | 4 years 11 months 12 days | |||||||||
Aggregate Intrinsic Value | 0.5 | |||||||||
Stock Options [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation cost | 0.7 | 1.1 | 2.5 | |||||||
Share based compensation cost, future income tax benefits | 0.2 | 0.4 | 1.4 | |||||||
Weighted-average assumptions used to estimate the fair value of options granted [Abstract] | ||||||||||
Expected annual dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% | |||||||
Risk-free interest rate (in hundredths) | 2.02% | 1.66% | 1.10% | |||||||
Expected volatility (in hundredths) | 47.10% | 41.10% | 57.30% | |||||||
Expected life in years | 6 years 2 months 12 days | 7 years 10 months 24 days | 6 years 3 months 18 days | |||||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||||
Outstanding at beginning of year (in shares) | 1,175,499 | 1,353,059 | 1,285,115 | 1,285,115 | ||||||
Granted (in shares) | 65,000 | 60,000 | 772,500 | |||||||
Exercised (in shares) | -33,749 | -34,310 | -109,466 | |||||||
Cancelled or expired (in shares) | -104,500 | -203,250 | -595,090 | |||||||
Outstanding at end of year (in shares) | 1,102,250 | 1,175,499 | 1,353,059 | |||||||
Options exercisable at year end (in shares) | 839,500 | 772,749 | 682,809 | |||||||
Weighted average fair value per option granted during the year (in dollars per share) | $5.92 | $4.44 | $7.90 | |||||||
Outstanding and exercisable options, Weighted Average Exercise Price [Roll Forward] | ||||||||||
Outstanding at beginning of year (in dollars per share) | $16.11 | $15.88 | $13.39 | 13.39 | ||||||
Granted (in dollars per share) | $12.39 | $9.54 | $15 | |||||||
Exercised (in dollars per share) | $9.78 | $3.04 | $3.12 | |||||||
Cancelled or expired (in dollars per share) | $15.83 | $14.84 | $11.71 | |||||||
Outstanding at end of year (in dollars per share) | $16.11 | $16.11 | $15.88 | |||||||
Weighted average grant date fair value [Roll Forward] | ||||||||||
Total intrinsic value of options exercised | 0.2 | 0.2 | 1.4 | |||||||
Unrecognized compensation costs | 0.4 | |||||||||
Weighted average period of recognition | 1 year 8 months 1 day | |||||||||
Total fair value of stock options vested | 1.2 | 1.6 | 1.1 | |||||||
Restricted Stock Units [Member] | Former Officer and Director [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation cost | 0 | 0 | 0 | |||||||
Restricted Stock Units [Member] | Key Employee [Member] | Granted October 2011 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation cost | 0 | 0.8 | 0.2 | |||||||
Restricted Stock Units [Member] | Key Employee [Member] | Granted November 2011 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation cost | 0.2 | 0.2 | 0.4 | |||||||
Restricted Stock Units [Member] | Two Key Employees [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation cost | 0.3 | 0.4 | 0.5 | |||||||
Restricted Stock Units [Member] | Director [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation cost | 0.1 | 0.1 | 0.1 | |||||||
Unvested Stock Options [Member] | ||||||||||
Activity for all unvested stock options [Roll Forward] | ||||||||||
Unvested at beginning of the year (in shares) | 402,750 | |||||||||
Granted (in shares) | 65,000 | |||||||||
Vested (in shares) | -134,000 | |||||||||
Forfeited (in shares) | -71,000 | |||||||||
Unvested at end of the year (in shares) | 262,750 | |||||||||
Weighted average grant date fair value [Roll Forward] | ||||||||||
Unvested at the beginning of the year (in dollars per share) | $8.58 | |||||||||
Granted (in dollars per share) | $5.92 | |||||||||
Vested (in dollars per share) | $8.77 | |||||||||
Forfeited (in dollars per share) | $7.02 | |||||||||
Unvested at the end of the year (in dollars per share) | $8.25 | |||||||||
Restricted Stock and Restricted Stock Units [Abstract] | ||||||||||
Granted (in shares) | 65,000 | |||||||||
Vested (in shares) | 134,000 | |||||||||
1995 Long-term Stock Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Term of award | 10 years | |||||||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||||
Outstanding at end of year (in shares) | 0 | |||||||||
1995 Stock Option Plan for Non-Employee Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Term of award | 10 years | |||||||||
Number of shares authorized for issuance (in shares) | 100,000 | |||||||||
1995 Stock Option Plan for Non-Employee Directors [Member] | Stock Options [Member] | ||||||||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||||
Outstanding at end of year (in shares) | 4,000 | |||||||||
1999 Long-term Stock Incentive Plan, as amended [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized for issuance (in shares) | 7,500,000 | 5,000,000 | ||||||||
Number of shares granted per employee in each calendar year, maximum (in shares) | 3,000,000 | |||||||||
1999 Long-term Stock Incentive Plan, as amended [Member] | Stock Options [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted per employee in each calendar year, maximum (in shares) | 1,500,000 | |||||||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||||
Outstanding at end of year (in shares) | 558,500 | |||||||||
1999 Long-term Stock Incentive Plan, as amended [Member] | Restricted Stock Units [Member] | Former Officer and Director [Member] | ||||||||||
Activity for all unvested stock options [Roll Forward] | ||||||||||
Granted (in shares) | 1,000,000 | |||||||||
Restricted Stock and Restricted Stock Units [Abstract] | ||||||||||
Granted (in shares) | 1,000,000 | |||||||||
Non performance award, Vested (in hundredths) | 10.00% | 20.00% | ||||||||
2006 Stock Incentive Plan For Non-Employee Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized for issuance (in shares) | 200,000 | |||||||||
2006 Stock Incentive Plan For Non-Employee Directors [Member] | Stock Options [Member] | ||||||||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||||
Outstanding at end of year (in shares) | 15,000 | |||||||||
2010 Long-term Stock Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized for issuance (in shares) | 7,500,000 | |||||||||
2010 Long-term Stock Incentive Plan [Member] | Stock Options [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted per employee in each calendar year, maximum (in shares) | 1,500,000 | |||||||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||||
Outstanding at end of year (in shares) | 524,750 | |||||||||
2010 Long-term Stock Incentive Plan [Member] | Restricted Stock Units [Member] | ||||||||||
Outstanding and exercisable options, Weighted Average Shares [Roll Forward] | ||||||||||
Outstanding at end of year (in shares) | 255,000 | |||||||||
2010 Long-term Stock Incentive Plan [Member] | Restricted Stock Units [Member] | Key Employee [Member] | ||||||||||
Activity for all unvested stock options [Roll Forward] | ||||||||||
Granted (in shares) | 100,000 | 100,000 | ||||||||
Vested (in shares) | -90,000 | |||||||||
Restricted Stock and Restricted Stock Units [Abstract] | ||||||||||
Granted (in shares) | 100,000 | 100,000 | ||||||||
Vested (in shares) | 90,000 | |||||||||
Number of vesting installments | 10 | 10 | ||||||||
Number of units vesting annually (in shares) | 10,000 | 10,000 | ||||||||
2010 Long-term Stock Incentive Plan [Member] | Restricted Stock Units [Member] | Key Employee [Member] | Granted August 2010 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation cost | $0.20 | $0.30 | $0.40 | |||||||
Activity for all unvested stock options [Roll Forward] | ||||||||||
Granted (in shares) | 175,000 | |||||||||
Restricted Stock and Restricted Stock Units [Abstract] | ||||||||||
Granted (in shares) | 175,000 | |||||||||
Number of vesting installments | 10 | |||||||||
Number of units vesting annually (in shares) | 17,500 | |||||||||
2010 Long-term Stock Incentive Plan [Member] | Restricted Stock Units [Member] | Two Key Employees [Member] | ||||||||||
Activity for all unvested stock options [Roll Forward] | ||||||||||
Granted (in shares) | 50,000 | |||||||||
Restricted Stock and Restricted Stock Units [Abstract] | ||||||||||
Granted (in shares) | 50,000 | |||||||||
Number of vesting installments | 10 | |||||||||
Number of units vesting annually (in shares) | 10,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of income before income taxes [Abstract] | |||
United States | ($9.30) | ($18.80) | ($66.50) |
Foreign | -23.3 | -3 | 24.9 |
Loss from continuing operations before income taxes | -32.6 | -21.8 | -41.6 |
Current [Abstract] | |||
Federal | -0.3 | -8.2 | -5.4 |
State | 0.6 | 0.6 | 0.3 |
Foreign | 4.1 | 3.2 | 8.1 |
Total current | 4.4 | -4.4 | 3 |
Deferred [Abstract] | |||
Federal | 0 | 20.5 | -16.5 |
State | -0.5 | 4.8 | -3.3 |
Foreign | 1 | 1.1 | -16.8 |
Total deferred | 0.5 | 26.4 | -36.6 |
TOTAL | 4.9 | 22 | -33.6 |
Foreign income tax (benefit) expense | -0.2 | ||
Reconciliation of the difference between income tax expense and computed income tax expense based on Federal statutory corporate rate [Abstract] | |||
Income tax at Federal statutory rate | -11.4 | -7.6 | -14.5 |
Foreign taxes at rates different from the U.S. rate | 6.1 | 2.3 | -3.7 |
State and local income taxes, net of federal tax benefit | 1.3 | -0.3 | -2.1 |
Changes in valuation allowances | 9.1 | 28.9 | -13.3 |
Change in deferred tax liability | 0 | -1.2 | 0 |
Non-deductible items | 0 | 0.1 | 0.1 |
Other items, net | -0.2 | -0.2 | -0.1 |
TOTAL | 4.9 | 22 | -33.6 |
Reconciliation of the difference between income tax expense and computed income tax expense based on Federal statutory corporate rate, Tax Rate [Abstract] | |||
Income tax at Federal statutory rate (in hundredths) | -35.00% | -35.00% | -35.00% |
Foreign taxes at rates different from the U.S. rate (in hundredths) | 18.70% | 10.60% | -8.90% |
State and local income taxes and changes in valuation allowances, net of federal tax benefit (in hundredths) | 4.00% | -1.40% | -5.00% |
Changes in valuation allowances (in hundredths) | 27.90% | 132.60% | -31.90% |
Change in deferred tax liability (in hundredths) | 0.00% | -5.50% | 0.00% |
Non-deductible items (in hundredths) | 0.00% | 0.50% | 0.20% |
Other items, net (in hundredths) | -0.60% | -0.90% | -0.20% |
Income tax (in hundredths) | 15.00% | 100.90% | -80.80% |
Current [Abstract] | |||
Accrued expenses and other liabilities | 10.5 | 10.8 | |
Inventory | 4.2 | 4.6 | |
Valuation allowances | -10.5 | -11.2 | |
Total current assets | 4.2 | 4.2 | |
Non-current [Abstract] | |||
Net operating loss and credit carryforwards | 35 | 30.1 | |
Depreciation | 2.5 | 2 | |
Intangible & other | 16.2 | 15.2 | |
Valuation allowances | -38.3 | -28.5 | |
Total non-current assets | 15.4 | 18.8 | |
Current [Abstract] | |||
Deductible assets | 1.5 | 0.7 | |
Other | 1 | 1.2 | |
Total current liabilities | 2.5 | 1.9 | |
Non-current [Abstract] | |||
Amortization | 1.2 | 1.1 | |
Depreciation | 0.1 | 1.8 | |
Other | 0.6 | 0.6 | |
Total non-current liabilities | 1.9 | 3.5 | |
Valuation Allowance [Abstract] | |||
Valuation allowance recorded | 9.1 | ||
Undistributed earnings of its foreign subsidiaries | 66.8 | ||
Operating Loss Carryforwards [Abstract] | |||
Net operating loss carryforwards | 48.8 | ||
Uncertain tax positions | 0 | ||
Unrecognized tax benefits, accrued interest and penalties | 0 | 0 | |
Foreign Tax Credits [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Tax credit carryforward, valuation allowance | 1.4 | ||
Foreign [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Net operating loss carryforwards | 80.8 | ||
Net operating loss carryforwards, expiration year | 31-Dec-30 | ||
Net operating loss carryforwards, valuation allowance | 16.7 | ||
Federal [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Net operating loss carryforwards | 1.4 | ||
Net operating loss carryforwards, expiration year | 31-Dec-24 | ||
Net operating loss carryforwards, valuation allowance | 23 | ||
State [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Net operating loss carryforwards, valuation allowance | 7.7 | ||
State and Foreign [Member] | |||
Operating Loss Carryforwards [Abstract] | |||
Net operating loss carryforwards, expiration year | 31-Dec-34 | ||
U.S. Federal Deferred Tax Assets [Member] | |||
Valuation Allowance [Abstract] | |||
Valuation allowance recorded | 2.9 | ||
Foreign Deferred Tax Assets [Member] | |||
Valuation Allowance [Abstract] | |||
Valuation allowance recorded | 7.4 | ||
State Deferred Tax Assets [Member] | |||
Valuation Allowance [Abstract] | |||
Valuation allowance recorded | ($1.20) |
COMMITMENTS_CONTINGENCIES_AND_2
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Officers | |||
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS [Abstract] | |||
Number of principal shareholders and senior executive officers | 3 | ||
Capital Leases [Abstract] | |||
2015 | $2.80 | ||
2016 | 0.6 | ||
2017 | 0.3 | ||
2018 | 0 | ||
2019 | 0 | ||
2020-2024 | 0 | ||
2025-2029 | 0 | ||
Thereafter | 0 | ||
Total minimum lease payments | 3.7 | ||
Less: sublease rental income | 0 | ||
Lease obligation net of subleases | 3.7 | ||
Less amount representing interest | 0.1 | ||
Present value of minimum capital lease payments (including current portion of 2.7) | 3.6 | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2015 | 28.3 | ||
2016 | 26.4 | ||
2017 | 26 | ||
2018 | 21.4 | ||
2019 | 19.1 | ||
2020-2024 | 51.7 | ||
2025-2029 | 25.6 | ||
Thereafter | 8 | ||
Total minimum lease payments | 206.5 | ||
Less: sublease rental income | 2.5 | ||
Lease obligation net of subleases | 204 | ||
Total lease [Abstract] | |||
2015 | 31.1 | ||
2016 | 27 | ||
2017 | 26.3 | ||
2018 | 21.4 | ||
2019 | 19.1 | ||
2020-2024 | 51.7 | ||
2025-2029 | 25.6 | ||
Thereafter | 8 | ||
Total minimum lease payments | 210.2 | ||
Less: sublease rental income | 2.5 | ||
Lease obligation net of subleases | 207.7 | ||
Annual rent expense | 31.5 | 34.6 | 33.4 |
Related party rent expense | 0.9 | 0.9 | 0.9 |
Rent expense net of sublease income | $0 | $0.10 | $0.20 |
SEGMENT_AND_RELATED_INFORMATIO2
SEGMENT AND RELATED INFORMATION, by Reportable Segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment | |||||||||||
SEGMENT AND RELATED INFORMATION [Abstract] | |||||||||||
Number of reportable segments | 2 | ||||||||||
Net sales [Abstract] | |||||||||||
Net sales | $912.90 | $825.40 | $831.10 | $873.40 | $874.20 | $791.80 | $805.70 | $880.60 | $3,442.80 | $3,352.30 | $3,544.30 |
Depreciation and Amortization Expense [Abstract] | |||||||||||
Depreciation and Amortization Expense | 16.3 | 19.3 | 18 | ||||||||
Operating Income (Loss) [Abstract] | |||||||||||
Operating Income (Loss) | -25.9 | -20.6 | -39.9 | ||||||||
Total Assets [Abstract] | |||||||||||
Total Assets | 894.9 | 942.2 | 894.9 | 942.2 | 962.3 | ||||||
Reportable Segments [Member] | Technology Products [Member] | |||||||||||
Net sales [Abstract] | |||||||||||
Net sales | 2,880.90 | 2,873.30 | 3,137.60 | ||||||||
Depreciation and Amortization Expense [Abstract] | |||||||||||
Depreciation and Amortization Expense | 12.9 | 16.1 | 15.1 | ||||||||
Operating Income (Loss) [Abstract] | |||||||||||
Operating Income (Loss) | -51.3 | -40.6 | -47.2 | ||||||||
Total Assets [Abstract] | |||||||||||
Total Assets | 501.9 | 598.3 | 501.9 | 598.3 | 564.4 | ||||||
Reportable Segments [Member] | Industrial Products [Member] | |||||||||||
Net sales [Abstract] | |||||||||||
Net sales | 556 | 473.8 | 401.9 | ||||||||
Depreciation and Amortization Expense [Abstract] | |||||||||||
Depreciation and Amortization Expense | 2.1 | 2.2 | 1.9 | ||||||||
Operating Income (Loss) [Abstract] | |||||||||||
Operating Income (Loss) | 41 | 40 | 29.9 | ||||||||
Total Assets [Abstract] | |||||||||||
Total Assets | 136.4 | 110 | 136.4 | 110 | 157.7 | ||||||
Corporate and Other [Member] | |||||||||||
Net sales [Abstract] | |||||||||||
Net sales | 5.9 | 5.2 | 4.8 | ||||||||
Depreciation and Amortization Expense [Abstract] | |||||||||||
Depreciation and Amortization Expense | 1.3 | 1 | 1 | ||||||||
Operating Income (Loss) [Abstract] | |||||||||||
Operating Income (Loss) | -15.6 | -20 | -22.6 | ||||||||
Total Assets [Abstract] | |||||||||||
Total Assets | $256.60 | $233.90 | $256.60 | $233.90 | $240.20 |
SEGMENT_AND_RELATED_INFORMATIO3
SEGMENT AND RELATED INFORMATION, by Geographic Area (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $912.90 | $825.40 | $831.10 | $873.40 | $874.20 | $791.80 | $805.70 | $880.60 | $3,442.80 | $3,352.30 | $3,544.30 |
Long-lived Assets [Abstract] | |||||||||||
Long-lived Assets | 41.2 | 59.4 | 41.2 | 59.4 | 63 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 2,061.80 | 2,051.10 | 2,203.20 | ||||||||
Long-lived Assets [Abstract] | |||||||||||
Long-lived Assets | 16.7 | 32.3 | 16.7 | 32.3 | 42 | ||||||
United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 471.9 | 468.5 | 491.7 | ||||||||
Long-lived Assets [Abstract] | |||||||||||
Long-lived Assets | 17.5 | 18.7 | 17.5 | 18.7 | 16.6 | ||||||
France [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 383.2 | 335.4 | 312.7 | ||||||||
Long-lived Assets [Abstract] | |||||||||||
Long-lived Assets | 0.8 | 0.9 | 0.8 | 0.9 | 0.1 | ||||||
Other Europe and Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 334.8 | 291.5 | 322.3 | ||||||||
Long-lived Assets [Abstract] | |||||||||||
Long-lived Assets | 5.5 | 6.4 | 5.5 | 6.4 | 2.7 | ||||||
Other North America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 191.1 | 205.8 | 214.4 | ||||||||
Long-lived Assets [Abstract] | |||||||||||
Long-lived Assets | $0.70 | $1.10 | $0.70 | $1.10 | $1.60 |
QUARTERLY_FINANCIAL_DATA_UNAUD2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |||||||||||
Net sales | $912.90 | $825.40 | $831.10 | $873.40 | $874.20 | $791.80 | $805.70 | $880.60 | $3,442.80 | $3,352.30 | $3,544.30 |
Gross profit | 124.5 | 117.5 | 123.3 | 127.9 | 128.2 | 116.8 | 116.3 | 121.6 | 493.2 | 482.9 | 485.8 |
Net loss | ($25.50) | ($2.80) | ($6.20) | ($3) | ($19.80) | ($11.60) | ($6.10) | ($6.30) | ($37.50) | ($43.80) | ($8.30) |
Net loss per common share [Abstract] | |||||||||||
Basic (in dollars per share) | ($0.69) | ($0.08) | ($0.17) | ($0.08) | ($0.54) | ($0.31) | ($0.16) | ($0.17) | |||
Diluted (in dollars per share) | ($0.69) | ($0.08) | ($0.17) | ($0.08) | ($0.54) | ($0.31) | ($0.16) | ($0.17) |
SUBSEQUENT_EVENTS_unaudited_De
SUBSEQUENT EVENTS (unaudited) (Details) (USD $) | 1 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Jan. 30, 2015 |
Subsequent Event [Line Items] | ||
Severance expenses | $4 | |
Lease exit costs | 39 | |
Subsequent Event [Member] | TAKKT America [Member] | ||
Subsequent Event [Line Items] | ||
Cash paid for acquisition | 25.9 | |
Subsequent Event [Member] | Minimum [Member] | ||
Subsequent Event [Line Items] | ||
Anticipated restructuring charges | 50 | |
Subsequent Event [Member] | Maximum [Member] | ||
Subsequent Event [Line Items] | ||
Anticipated restructuring charges | $55 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Doubtful Accounts [Member] | ||||||
Allowance for sales returns and doubtful accounts [Roll Forward] | ||||||
Balance at Beginning of Period | $5.80 | $6.30 | $5.40 | |||
Charged to Expenses | 8.9 | 4 | 5 | |||
Write-offs | -8.3 | -4.5 | -4.1 | |||
Other | 0.1 | [1] | 0 | 0 | ||
Balance at End of Period | 6.5 | 5.8 | 6.3 | |||
Allowance for Sales Returns [Member] | ||||||
Allowance for sales returns and doubtful accounts [Roll Forward] | ||||||
Balance at Beginning of Period | 10.9 | 9.2 | 9.3 | |||
Charged to Expenses | 9.3 | 10.9 | 9.2 | |||
Write-offs | 0 | 0 | 0 | |||
Other | -10.9 | [2] | -9.2 | [2] | -9.3 | [2] |
Balance at End of Period | 9.3 | 10.9 | 9.2 | |||
Allowance for Inventory Returns [Member] | ||||||
Allowance for sales returns and doubtful accounts [Roll Forward] | ||||||
Balance at Beginning of Period | -9.2 | -8 | -7.9 | |||
Charged to Expenses | -7.8 | -9.2 | -8 | |||
Write-offs | 0 | 0 | 0 | |||
Other | 9.2 | [2] | 8 | [2] | 7.9 | [2] |
Balance at End of Period | -7.8 | -9.2 | -8 | |||
Allowance for Deferred Tax Assets, Current [Member] | ||||||
Allowance for sales returns and doubtful accounts [Roll Forward] | ||||||
Balance at Beginning of Period | 11.2 | 2.2 | 1.5 | |||
Charged to Expenses | -0.7 | 9 | 0.7 | |||
Write-offs | 0 | 0 | 0 | |||
Other | 0 | 0 | 0 | |||
Balance at End of Period | 10.5 | 11.2 | 2.2 | |||
Allowance for Deferred Tax Assets, Noncurrent [Member] | ||||||
Allowance for sales returns and doubtful accounts [Roll Forward] | ||||||
Balance at Beginning of Period | 28.5 | 8.9 | 28.4 | |||
Charged to Expenses | 9.8 | 19.6 | -19.5 | |||
Write-offs | 0 | 0 | 0 | |||
Other | 0 | 0 | 0 | |||
Balance at End of Period | $38.30 | $28.50 | $8.90 | |||
[1] | Other relates to SCC Netherlands BV acquisition allowance for doubtful accounts as of acquisition date. | |||||
[2] | Amounts represent gross revenue and cost reversals to the estimated sales returns and allowances accounts. |