QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | ☐ | ☒ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
Page No. | ||||||||
Part I. | ||||||||
Item 1. | ||||||||
Condensed Consolidated Balance Sheets – September 30, 2020 (unaudited) and December 31, 2019 | ||||||||
Condensed Consolidated Statements of Operations (unaudited) – Three and Nine Months Ended September 30, 2020 and 2019 | ||||||||
Condensed Consolidated Statements of Comprehensive Income (loss) (unaudited) – Three and Nine Months Ended September 30, 2020 and 2019 | ||||||||
Condensed Consolidated Statements of Stockholders’ Equity (unaudited) –Three and Nine Months Ended September 30, 2020 and 2019 | ||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) – Nine Months Ended September 30, 2020 and 2019 | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2 | ||||||||
Item 6. | ||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
CURRENT ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less allowances of $ | |||||||||||
Inventory | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Income taxes receivable | |||||||||||
TOTAL CURRENT ASSETS | |||||||||||
PROPERTY AND EQUIPMENT, net | |||||||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | |||||||||||
INVESTMENTS | |||||||||||
INTANGIBLE ASSETS, net | |||||||||||
OTHER ASSETS | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
CURRENT LIABILITIES | |||||||||||
Current maturity of term loan | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued expenses | |||||||||||
Income taxes payable | |||||||||||
Current portion of operating lease liabilities | |||||||||||
TOTAL CURRENT LIABILITIES | |||||||||||
OTHER LONG-TERM LIABILITIES | |||||||||||
INCOME TAXES PAYABLE, LONG-TERM | |||||||||||
OPERATING LEASE LIABILITIES | |||||||||||
DEFERRED INCOME TAXES | |||||||||||
REVOLVING CREDIT FACILITY | |||||||||||
TERM LOAN | |||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Paid-in capital | |||||||||||
(Accumulated deficit) retained earnings | ( | ||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross margin | |||||||||||||||||||||||
Distribution expenses | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Restructuring expenses | |||||||||||||||||||||||
Goodwill and other impairments | |||||||||||||||||||||||
Income (loss) from operations | ( | ||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Mark to market gain (loss) on interest rate derivatives | ( | ||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) | ( | ( | |||||||||||||||||||||
Income tax provision | ( | ( | ( | ( | |||||||||||||||||||
Equity in earnings (losses), net of taxes | ( | ( | ( | ||||||||||||||||||||
NET INCOME (LOSS) | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
BASIC INCOME (LOSS) PER COMMON SHARE | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
DILUTED INCOME (LOSS) PER COMMON SHARE | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||||
Translation adjustment | ( | ( | ( | ||||||||||||||||||||
Net change in cash flow hedges | ( | ||||||||||||||||||||||
Effect of retirement benefit obligations | |||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | ( | ( | ( | ||||||||||||||||||||
Comprehensive income (loss) | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Common stock | Paid-in capital | Retained Earnings | Accumulated other comprehensive loss | Total | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2018 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Comprehensive (loss) income: | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Translation adjustment | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net change in cash flow hedges | — | — | — | — | ||||||||||||||||||||||||||||||||||
Effect of retirement benefit obligations | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total comprehensive loss | ( | |||||||||||||||||||||||||||||||||||||
Net issuance of restricted shares to employees | ( | — | — | — | ||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net exercise of stock options | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Shares effectively repurchased for required employee withholding taxes | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Dividends (1) | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
BALANCE AT MARCH 31, 2019 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Comprehensive (loss) income: | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Translation adjustment | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Net change in cash flow hedges | — | — | — | — | ||||||||||||||||||||||||||||||||||
Effect of retirement benefit obligations | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total comprehensive loss | ( | |||||||||||||||||||||||||||||||||||||
Restricted shares issued to directors | ( | — | — | — | ||||||||||||||||||||||||||||||||||
Net issuance of restricted shares to employees | ( | — | — | — | ||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net exercise of stock options | — | — | — | |||||||||||||||||||||||||||||||||||
Shares effectively repurchased for required employee withholding taxes | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Dividends (1) | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
BALANCE AT JUNE 30, 2019 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Comprehensive (loss) income | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Translation adjustment | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Derivative fair value adjustment | — | — | — | — | ||||||||||||||||||||||||||||||||||
Effect of retirement benefit obligations | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total comprehensive loss | ( | |||||||||||||||||||||||||||||||||||||
Net issuance of restricted shares to employees | — | — | — | |||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends (1) | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2019 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Common stock | Paid-in capital | Retained Earnings (Accumulated deficit) | Accumulated other comprehensive loss | Total | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2019 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Comprehensive (loss) income: | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Translation adjustment | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Net change in cash flow hedges | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Effect of retirement benefit obligations | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total comprehensive loss | ( | |||||||||||||||||||||||||||||||||||||
Performance shares issued to employees | ( | — | — | — | ||||||||||||||||||||||||||||||||||
Net issuance of restricted shares to employees | ( | — | — | — | ||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Shares effectively repurchased for required employee withholding taxes | ( | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Dividends (1) | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
BALANCE AT MARCH 31, 2020 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Comprehensive (loss) income: | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Translation adjustment | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Net change in cash flow hedges | — | — | — | — | ||||||||||||||||||||||||||||||||||
Effect of retirement benefit obligations | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total comprehensive loss | ( | |||||||||||||||||||||||||||||||||||||
Net issuance of restricted shares to employees | ( | — | — | — | ||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Shares effectively repurchased for required employee withholding taxes | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Dividends (1) | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
BALANCE AT JUNE 30, 2020 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Translation adjustment | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net change in cash flow hedges | — | — | — | — | ||||||||||||||||||||||||||||||||||
Effect of retirement benefit obligations | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total comprehensive income | ||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Shares effectively repurchased for required employee withholding taxes | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Dividends (1) | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2020 | $ | $ | $ | ( | $ | ( | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
OPERATING ACTIVITIES | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Goodwill and other impairments | |||||||||||
Amortization of financing costs | |||||||||||
Mark to market loss (gain) on interest rate derivatives | ( | ||||||||||
Non-cash lease expense | |||||||||||
Provision for doubtful accounts | |||||||||||
Stock compensation expense | |||||||||||
Undistributed equity in losses, net of taxes | |||||||||||
SKU Rationalization | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventory | ( | ( | |||||||||
Prepaid expenses, other current assets and other assets | |||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||
Income taxes receivable | |||||||||||
Income taxes payable | |||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ( | ||||||||||
INVESTING ACTIVITIES | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
NET CASH USED IN INVESTING ACTIVITIES | ( | ( | |||||||||
FINANCING ACTIVITIES | |||||||||||
Proceeds from revolving credit facility | |||||||||||
Repayments of revolving credit facility | ( | ( | |||||||||
Repayments of term loan | ( | ( | |||||||||
Payments for finance lease obligations | ( | ( | |||||||||
Payments of tax withholding for stock based compensation | ( | ( | |||||||||
Proceeds from the exercise of stock options | |||||||||||
Cash dividends paid | ( | ( | |||||||||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | ( | ||||||||||
Effect of foreign exchange on cash | ( | ( | |||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | $ | |||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
Finished goods | $ | $ | |||||||||
Work in process | |||||||||||
Raw materials | |||||||||||
Total | $ | $ | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
U.S. segment | |||||||||||||||||||||||
Kitchenware | $ | $ | $ | $ | |||||||||||||||||||
Tableware | |||||||||||||||||||||||
Home Solutions | |||||||||||||||||||||||
Total U.S. segment | |||||||||||||||||||||||
International segment | |||||||||||||||||||||||
Kitchenware | |||||||||||||||||||||||
Tableware | |||||||||||||||||||||||
Total International segment | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ | |||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
United Kingdom | |||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Operating lease expenses: | ||||||||||||||||||||||||||
Fixed | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows for operating leases | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Right-of-use assets obtained in exchange for new lease obligations: | |||||||||||
Operating leases | $ | $ |
Operating | |||||
2020 (excluding the nine months ending September 30, 2020) | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total lease payments | |||||
Less: Interest | ( | ||||
Present value of lease payments | $ |
September 30, 2020 | |||||
Operating leases: | |||||
Weighted-average remaining lease term (years) | |||||
Weighted-average discount rate | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Average exchange rate (USD to MXN) |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
USD | MXN | USD | MXN | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Income (loss) from operations | ( | ( | |||||||||||||||||||||
Net income (loss) | ( | ( |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
USD | MXN | USD | MXN | ||||||||||||||||||||
Net Sales | $ | $ | $ | $ | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Net loss | ( | ( | ( | ( |
Vasconia due to and due from balances | Balance Sheet Location | September 30, 2020 | December 31, 2019 | ||||||||||||||
Amounts due from Vasconia | Prepaid expenses and other current assets | $ | $ | ||||||||||||||
Amounts due to Vasconia | Accrued expenses and Accounts payable | ( | ( |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Gross | Impairment | Accumulated Amortization | Net | Gross | Impairment | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||||||||||
Goodwill | $ | $ | ( | — | $ | $ | $ | ( | $ | — | $ | ||||||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Trade names | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Licenses | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Trade names | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||
Maximum aggregate principal allowed | $ | $ | ||||||||||||
Outstanding borrowings under the ABL Agreement | ( | ( | ||||||||||||
Standby letters of credit | ( | ( | ||||||||||||
Total availability under the ABL Agreement | $ | $ | ||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||
Current portion of Term Loan facility: | ||||||||||||||
Term Loan facility payment | $ | $ | ||||||||||||
Estimated Excess Cash Flow principal payment | ||||||||||||||
Estimated unamortized debt issuance costs | ( | ( | ||||||||||||
Total Current portion of Term Loan facility | $ | $ | ||||||||||||
Non-current portion of Term Loan facility: | ||||||||||||||
Term Loan facility, net of current portion | $ | $ | ||||||||||||
Estimated unamortized debt issuance costs | ( | ( | ||||||||||||
Total Non-current portion of Term Loan facility | $ | $ | ||||||||||||
Derivatives designated as hedging instruments | Balance Sheet Location | September 30, 2020 | December 31, 2019 | ||||||||||||||
Interest rate swaps | Prepaid expenses | $ | $ | ||||||||||||||
Other assets | |||||||||||||||||
Accrued expenses | |||||||||||||||||
Other Long-Term Liabilities | |||||||||||||||||
Foreign exchange contracts | Prepaid expenses | ||||||||||||||||
Derivatives not designated as hedging instruments | Balance Sheet Location | September 30, 2020 | December 31, 2019 | ||||||||||||||
Interest rate swaps | Other assets | $ | $ | ||||||||||||||
Other Long-Term Liabilities |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Derivatives designated as hedging instruments | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Interest rate swaps | $ | $ | $ | ( | $ | ||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||
$ | $ | $ | ( | $ | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Location of gain (loss) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||
Interest rate swaps | Mark to market gain (loss) on interest rate derivatives | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Interest expense | ( | ( | |||||||||||||||||||||||||||
$ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||
Options | Weighted- average exercise price | Weighted- average remaining contractual life (years) | Aggregate intrinsic value (in thousands) | ||||||||||||||||||||
Options outstanding, January 1, 2020 | $ | ||||||||||||||||||||||
Grants | |||||||||||||||||||||||
Cancellations | ( | ||||||||||||||||||||||
Expirations | ( | ||||||||||||||||||||||
Options outstanding, September 30, 2020 | $ | ||||||||||||||||||||||
Options exercisable, September 30, 2020 | $ | $ | |||||||||||||||||||||
Total unrecognized stock option expense remaining (in thousands) | $ | ||||||||||||||||||||||
Weighted-average years expected to be recognized over |
Restricted Shares | Weighted- average grant date fair value | ||||||||||
Non-vested restricted shares, January 1, 2020 | $ | ||||||||||
Grants | |||||||||||
Vested | ( | ||||||||||
Cancellations | ( | ||||||||||
Non-vested restricted shares, September 30, 2020 | $ | ||||||||||
Total unrecognized compensation expense remaining (in thousands) | $ | ||||||||||
Weighted-average years expected to be recognized over |
Performance- based stock awards (1) | Weighted- average grant date fair value | ||||||||||
Non-vested performance-based awards, January 1, 2020 | $ | ||||||||||
Grants | |||||||||||
Vested | ( | ||||||||||
Cancellations | ( | ||||||||||
Non-vested performance-based awards, September 30, 2020 | $ | ||||||||||
Total unrecognized compensation expense remaining (in thousands) | $ | ||||||||||
Weighted-average years expected to be recognized over |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Stock Compensation Expense Components | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Equity based stock option expense | $ | $ | $ | $ | |||||||||||||||||||
Restricted and performance-based stock awards expense | |||||||||||||||||||||||
Stock compensation expense for equity based awards | $ | $ | $ | $ | |||||||||||||||||||
Liability based stock option expense | |||||||||||||||||||||||
Total Stock Compensation Expense | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||
Net income (loss) – Basic and Diluted | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Weighted-average shares outstanding – Basic | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Stock options and other stock awards | |||||||||||||||||||||||
Weighted-average shares outstanding – Basic and Diluted | |||||||||||||||||||||||
Basic income (loss) per common share | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Diluted income (loss) per common share | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Antidilutive Securities | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net sales | |||||||||||||||||||||||
U.S. | $ | $ | $ | $ | |||||||||||||||||||
International | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ | |||||||||||||||||||
Income (loss) from operations | |||||||||||||||||||||||
U.S. | $ | $ | $ | $ | |||||||||||||||||||
International | ( | ( | ( | ( | |||||||||||||||||||
Unallocated corporate expenses | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) from operations | $ | $ | $ | $ | ( | ||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
U.S. | $ | $ | $ | $ | |||||||||||||||||||
International | |||||||||||||||||||||||
Total depreciation and amortization | $ | $ | $ | $ | |||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
(in thousands) | |||||||||||
Assets | |||||||||||
U.S. | $ | $ | |||||||||
International | |||||||||||
Unallocated corporate | |||||||||||
Total Assets | $ | $ | |||||||||
Dividend per share | Date declared | Date of record | Payment date | |||||||||||||||||
$ | 3/10/2020 | 11/16/2020 | 12/16/2020 | |||||||||||||||||
$ | 6/25/2020 | 8/3/2020 | 8/17/2020 | |||||||||||||||||
$ | 8/4/2020 | 11/2/2020 | 11/16/2020 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for taxes (net of refunds) | ( | ||||||||||
Non-cash investing activities: | |||||||||||
Translation loss adjustment | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Accumulated translation adjustment: | |||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Translation income (loss) during period | ( | ( | ( | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss (1) | |||||||||||||||||||||||
Translation Adjustment | ( | ( | ( | ||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Accumulated deferred (losses) gains on cash flow hedges: | |||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | $ | $ | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||||||||||
Settlement of cash flow hedge (2) | ( | ( | |||||||||||||||||||||
Change in unrealized (losses) gains | ( | ( | |||||||||||||||||||||
Net change in cash flow hedges, net of taxes of $ | ( | ||||||||||||||||||||||
Balance at end of period | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Accumulated effect of retirement benefit obligations: | |||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: (3) | |||||||||||||||||||||||
Amortization of actuarial loss, net of taxes | |||||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Total accumulated other comprehensive loss at end of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Cost of sales | 64.9 | 66.2 | 64.2 | 66.3 | |||||||||||||||||||
Gross margin | 35.1 | 33.8 | 35.8 | 33.7 | |||||||||||||||||||
Distribution expenses | 8.4 | 8.6 | 9.8 | 9.8 | |||||||||||||||||||
Selling, general and administrative expenses | 17.1 | 17.4 | 22.0 | 23.4 | |||||||||||||||||||
Restructuring expenses | — | 0.2 | 0.0 | 0.3 | |||||||||||||||||||
Goodwill and other impairments | — | 4.6 | 3.9 | 2.0 | |||||||||||||||||||
Income (loss) from operations | 9.6 | 3.0 | 0.1 | (1.8) | |||||||||||||||||||
Interest expense | (1.8) | (2.6) | (2.5) | (3.1) | |||||||||||||||||||
Mark to market gain (loss) on interest rate derivatives | 0.0 | 0.2 | (0.4) | 0.1 | |||||||||||||||||||
Income (loss) before income taxes and equity in earnings (losses) | 7.8 | 0.6 | (2.9) | (4.8) | |||||||||||||||||||
Income tax provision | (1.7) | (7.0) | (0.6) | (1.4) | |||||||||||||||||||
Equity in earnings (losses), net of taxes | 0.1 | (0.1) | (0.1) | (0.1) | |||||||||||||||||||
Net income (loss) | 6.2 | % | (6.5) | % | (3.5) | % | (6.3) | % | |||||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||
Maximum aggregate principal allowed | $ | 150,000 | $ | 150,000 | ||||||||||
Outstanding borrowings under the ABL Agreement | (25,654) | (32,822) | ||||||||||||
Standby letters of credit | (2,678) | (2,288) | ||||||||||||
Total availability under the ABL Agreement | $ | 121,668 | $ | 114,890 | ||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||
Current portion of Term Loan facility: | ||||||||||||||
Term Loan facility payment | $ | — | $ | 2,750 | ||||||||||
Estimated Excess Cash Flow principal payment | 20,000 | 7,145 | ||||||||||||
Estimated unamortized debt issuance costs | (1,478) | (1,482) | ||||||||||||
Total Current portion of Term Loan facility | $ | 18,522 | $ | 8,413 | ||||||||||
Non-current portion of Term Loan facility: | ||||||||||||||
Term Loan facility, net of current portion | $ | 242,605 | $ | 260,293 | ||||||||||
Estimated unamortized debt issuance costs | (4,878) | (6,012) | ||||||||||||
Total Non-current portion of Term Loan facility | $ | 237,727 | $ | 254,281 | ||||||||||
Consolidated adjusted EBITDA for the Four Quarters Ended September 30, 2020 | |||||
(in thousands) | |||||
Three months ended September 30, 2020 | $ | 29,228 | |||
Three months ended June 30, 2020 | 12,388 | ||||
Three months ended March 31, 2020 | 3,252 | ||||
Three months ended December 31, 2019 | 27,873 | ||||
Consolidated adjusted EBITDA | $ | 72,741 | |||
Three Months Ended | Twelve Months Ended September 30, 2020 | ||||||||||||||||||||||||||||
December 31, 2019 | March 31, 2020 | June 30, 2020 | September 30, 2020 | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Net (loss) income as reported | $ | (14,516) | $ | (28,164) | $ | (3,977) | $ | 13,913 | $ | (32,744) | |||||||||||||||||||
Undistributed equity losses (earnings), net | (738) | (339) | 848 | (147) | (376) | ||||||||||||||||||||||||
Income tax (benefit) provision | (5,704) | (3,729) | 3,031 | 3,711 | (2,691) | ||||||||||||||||||||||||
Interest expense | 5,590 | 4,736 | 4,230 | 4,128 | 18,684 | ||||||||||||||||||||||||
Mark to market loss (gain) on interest rate derivatives | — | 2,251 | 164 | (99) | 2,316 | ||||||||||||||||||||||||
Depreciation and amortization | 6,344 | 6,234 | 6,061 | 6,090 | 24,729 | ||||||||||||||||||||||||
Goodwill and other impairments | 33,242 | 20,100 | — | — | 53,342 | ||||||||||||||||||||||||
Stock compensation expense | 1,436 | 1,326 | 1,420 | 1,575 | 5,757 | ||||||||||||||||||||||||
Acquisition and divestment related expenses | 55 | 47 | 55 | 57 | 214 | ||||||||||||||||||||||||
Restructuring expenses | 316 | — | 253 | — | 569 | ||||||||||||||||||||||||
Integration charges | 159 | — | — | — | 159 | ||||||||||||||||||||||||
Warehouse relocation | 1,689 | 790 | 303 | — | 2,782 | ||||||||||||||||||||||||
Consolidated adjusted EBITDA | $ | 27,873 | $ | 3,252 | $ | 12,388 | $ | 29,228 | $ | 72,741 | |||||||||||||||||||
Period | Total number of shares purchased(1) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs(2) | Maximum approximate dollar value of shares that may yet be purchased under the plans or programs subsequent to end of period (2) | ||||||||||||||||||||||
August 1 - August 31, 2020 | 38 | $ | 8.09 | — | $ | 6,771,467 | ||||||||||||||||||||
September 1 - September 30, 2020 | 682 | 9.19 | — | 6,771,467 | ||||||||||||||||||||||
Exhibit No. | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | The cover page from this Quarterly Report on Form 10-Q, formatted in Inline XBRL and contained in Exhibit 101 |
Lifetime Brands, Inc. | ||||||||
/s/ Robert B. Kay | November 5, 2020 | |||||||
Robert B. Kay | ||||||||
Chief Executive Officer and Director | ||||||||
(Principal Executive Officer) | ||||||||
/s/ Laurence Winoker | November 5, 2020 | |||||||
Laurence Winoker | ||||||||
Senior Vice President – Finance, Treasurer and Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
/s/ Robert B. Kay | ||
Robert B. Kay Chief Executive Officer and Director | ||
Date: November 5, 2020 |
/s/ Laurence Winoker | |||||
Laurence Winoker Senior Vice President – Finance, Treasurer and Chief Financial Officer | |||||
Date: November 5, 2020 |
/s/ Robert B. Kay | /s/ Laurence Winoker | |||||||
Robert B. Kay Chief Executive Officer and Director | Laurence Winoker Senior Vice President- Finance, Treasurer and Chief Financial Officer | |||||||
Date: November 5, 2020 | Date: November 5, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Accounts receivable, allowances | $ 14,782 | $ 9,681 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 21,768,020 | 21,255,660 |
Common stock, shares outstanding (in shares) | 21,768,020 | 21,255,660 |
Preferred stock Series A | ||
Preferred stock, par value (usd per share) | $ 1.00 | $ 1.00 |
Preferred stock, shares authorized (in shares) | 100 | 100 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Preferred stock Series B | ||
Preferred stock, par value (usd per share) | $ 1.00 | $ 1.00 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Statement [Abstract] | ||||
Net sales | $ 224,750 | $ 215,502 | $ 519,960 | $ 507,964 |
Cost of sales | 145,958 | 142,561 | 334,066 | 336,683 |
Gross margin | 78,792 | 72,941 | 185,894 | 171,281 |
Distribution expenses | 18,961 | 18,537 | 50,710 | 49,938 |
Selling, general and administrative expenses | 38,325 | 37,389 | 114,274 | 118,379 |
Restructuring expenses | 0 | 338 | 253 | 1,119 |
Goodwill and other impairments | 0 | 9,748 | 20,100 | 9,748 |
Income (loss) from operations | 21,506 | 6,929 | 557 | (7,903) |
Interest expense | (4,128) | (5,539) | (13,094) | (15,505) |
Mark to market gain (loss) on interest rate derivatives | 99 | 367 | (2,316) | 717 |
Income (loss) before income taxes and equity in earnings (losses) | 17,477 | 1,757 | (14,853) | (22,691) |
Income tax provision | (3,711) | (15,066) | (3,013) | (6,813) |
Equity in earnings (losses), net of taxes | 147 | (210) | (362) | (395) |
NET INCOME (LOSS) | $ 13,913 | $ (13,519) | $ (18,228) | $ (29,899) |
Basic income (loss) per common share (usd per share) | $ 0.66 | $ (0.66) | $ (0.87) | $ (1.46) |
Diluted income (loss) per common share (usd per share) | $ 0.65 | $ (0.66) | $ (0.87) | $ (1.46) |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 13,913 | $ (13,519) | $ (18,228) | $ (29,899) |
Other comprehensive income (loss), net of taxes: | ||||
Translation adjustment | 2,145 | (2,385) | (4,827) | (4,032) |
Net change in cash flow hedges | 216 | 151 | (2,560) | 1,729 |
Effect of retirement benefit obligations | 20 | 13 | 59 | 38 |
Other comprehensive income (loss), net of taxes | 2,381 | (2,221) | (7,328) | (2,265) |
Comprehensive income (loss) | $ 16,294 | $ (15,740) | $ (25,556) | $ (32,164) |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
9 Months Ended | ||||
---|---|---|---|---|---|
Aug. 04, 2020 |
Jun. 25, 2020 |
Mar. 10, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Stockholders' Equity [Abstract] | |||||
Dividend per share of common stock (usd per share) | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.1275 | $ 0.1275 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
OPERATING ACTIVITIES | |||||||
Net loss | $ 13,913 | $ (28,164) | $ (13,519) | $ (4,867) | $ (18,228) | $ (29,899) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 6,090 | 6,122 | 18,385 | 18,771 | |||
Goodwill and other impairments | 0 | 9,748 | 20,100 | 9,748 | $ 42,990 | ||
Amortization of financing costs | 1,326 | 1,312 | |||||
Mark to market loss (gain) on interest rate derivatives | (99) | (367) | 2,316 | (717) | |||
Non-cash lease expense | 2,915 | 1,050 | |||||
Provision for doubtful accounts | 3,011 | 316 | |||||
Stock compensation expense | 4,321 | 3,605 | |||||
Undistributed equity in losses, net of taxes | 362 | 395 | |||||
SKU Rationalization | 0 | 8,500 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (55,466) | (37,659) | |||||
Inventory | (37,303) | (66,195) | |||||
Prepaid expenses, other current assets and other assets | 3,573 | 1,473 | |||||
Accounts payable, accrued expenses and other liabilities | 100,798 | 43,465 | |||||
Income taxes receivable | 1,577 | 1,442 | |||||
Income taxes payable | 1,521 | 4,434 | |||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 49,208 | (39,959) | |||||
INVESTING ACTIVITIES | |||||||
Purchases of property and equipment | (1,645) | (7,618) | |||||
NET CASH USED IN INVESTING ACTIVITIES | (1,645) | (7,618) | |||||
FINANCING ACTIVITIES | |||||||
Proceeds from revolving credit facility | 107,418 | 258,647 | |||||
Repayments of revolving credit facility | (113,652) | (208,737) | |||||
Repayments of term loan | (7,583) | (2,063) | |||||
Payments for finance lease obligations | (75) | (18) | |||||
Payments of tax withholding for stock based compensation | (486) | (390) | |||||
Proceeds from the exercise of stock options | 0 | 133 | |||||
Cash dividends paid | (1,862) | (2,693) | |||||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (16,240) | 44,879 | |||||
Effect of foreign exchange on cash | (18) | (188) | |||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 31,305 | (2,886) | |||||
Cash and cash equivalents at beginning of period | $ 11,370 | $ 7,647 | 11,370 | 7,647 | 7,647 | ||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 42,675 | $ 4,761 | $ 42,675 | $ 4,761 | $ 11,370 |
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES Organization and business The Company designs, sources and sells branded kitchenware, tableware and other products used in the home and markets its products under a number of widely-recognized brand names and trademarks, which are either owned or licensed by the Company or through retailers’ private labels and their licensed brands. The Company’s products, which are targeted primarily towards consumers purchasing moderately priced kitchenware, tableware and housewares, are sold through virtually every major level of trade. The Company generally markets several lines within each of its product categories under more than one brand. The Company sells its products directly to retailers (who may resell the Company’s products through their Internet websites) and, to a lesser extent, to distributors. The Company also sells a limited selection of its products directly to consumers through its own Internet websites. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, which consist of normal recurring accruals and non-recurring adjustments, some specifically associated with recent events surrounding the COVID-19 pandemic, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The Company’s business and working capital needs are highly seasonal, with a majority of sales occurring in the third and fourth quarters. In 2019 and 2018, net sales for the third and fourth quarters accounted for 60% and 62% of total annual net sales, respectively. In anticipation of the pre-holiday shipping season, inventory levels increase primarily in the June through October time period. Although the Company’s current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from expectations, which could materially affect the Company’s results of operations and financial position. In particular, a number of estimates have been and will continue to be affected by the ongoing COVID-19 pandemic. The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly changing and difficult to predict. Revenue recognition The Company sells products wholesale, to retailers and distributors, and retail, directly to the consumer. Wholesale sales and retail sales are primarily recognized at the point in time the customer obtains control of the products, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. The Company offers various sales incentives and promotional programs to its customers in the normal course of business. These incentives and promotions typically include arrangements such as cooperative advertising, buydowns, volume rebates and discounts. These arrangements and an estimate for products expected to be returned are reflected as reductions of revenue at the time of sale. See Note 2 – Revenue to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information. Cost of sales Cost of sales consists primarily of costs associated with the production and procurement of product, inbound freight costs, purchasing costs, royalties, tooling, and other product procurement related charges. In 2019, the Company implemented programs to improve the productivity of its inventory and simplify its U.S. business. In connection therewith, it initiated a stock keeping unit rationalization (“SKU Rationalization”) initiative to identify inventory to discontinue from active status, consistent with the objectives of these programs. During the nine months ended September 30, 2019, the Company recorded an $8.5 million charge to cost of sales associated with the SKU Rationalization initiative. The inventory charge, which was recognized in cost of sales during the three months ended June 30, 2019, represented approximately 8% of the Company's consolidated inventory at June 30, 2019. Distribution expenses Distribution expenses consist primarily of warehousing expenses and freight-out expenses. Handling costs of products sold are included in cost of sales. Accounts receivable The Company periodically reviews the collectability of its accounts receivable and establishes allowances for estimated losses that could result from the inability of its customers to make required payments, taking into consideration customer credit history and financial condition, industry and market segment information, credit reports, and economic trends and conditions such as the impacts of the COVID-19 pandemic in 2020. A considerable amount of judgment is required to assess the ultimate realization of these receivables, including assessing the initial and on-going creditworthiness of the Company’s customers. The Company also maintains an allowance for anticipated customer deductions. The allowances for deductions are primarily based on contracts with customers. However, in certain cases, the Company does not have a formal contract and, therefore, customer deductions are non-contractual. To evaluate the reasonableness of non-contractual customer deductions, the Company analyzes currently available information and historical trends of deductions. Receivable purchase agreement The Company has an uncommitted Receivables Purchase Agreement with HSBC Bank USA, National Association (“HSBC”) as Purchaser (the “Receivables Purchase Agreement”). The sale of accounts receivable, under the Receivables Purchase Agreement with HSBC, is excluded from the Company’s unaudited condensed consolidated balance sheets at the time of sale and the related sale expense is included in selling, general and administrative expenses in the Company’s unaudited condensed consolidated statements of operations. Pursuant to this agreement, the Company sold to HSBC $43.0 million and $116.9 million of receivables during the three and nine months ended September 30, 2020, respectively, and $32.5 million and $81.7 million of receivables during the three and nine months ended September 30, 2019, respectively. Charges of $0.1 million and $0.4 million related to the sale of the receivables are included in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2020, respectively. Charges of $0.2 million and $0.4 million related to the sale of the receivables are included in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2019, respectively. At September 30, 2020 and 2019, $26.7 million and $17.8 million, respectively, of receivables sold were outstanding and due to HSBC from customers. Inventory Inventory consists principally of finished goods sourced from third-party suppliers. Inventory also includes finished goods, work in process and raw materials related to the Company’s manufacture of sterling silver products. Inventory is priced using the lower of cost (first-in, first-out basis) or net realizable value. The Company estimates the selling price of its inventory on a product by product basis based on the current selling environment. If the estimated selling price is lower than the inventory’s cost, the Company reduces the value of the inventory to its net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation. The components of inventory were as follows (in thousands):
Fair value of financial instruments The Company determined that the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable are reasonable estimates of their fair values because of their short-term nature. The Company determined the carrying amounts of borrowings outstanding under its ABL Agreement and Term Loan (each as defined in Note 6 – Debt to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q) approximate fair value since such borrowings bear interest at variable market rates. Derivatives The Company accounts for derivative instruments in accordance with Accounting Standard Codification (“ASC”) Topic 815, Derivatives and Hedging ("ASC 815"). ASC 815 requires that all derivative instruments be recognized on the balance sheet at fair value as either an asset or liability. Changes in the fair value of derivatives that qualify as hedges and have been designated as part of a hedging relationship for accounting purposes have no net impact on earnings until the hedged item is recognized in earnings. The change in the fair value of hedges is included in accumulated other comprehensive loss and is subsequently recognized in the Company’s unaudited condensed consolidated statements of operations to mirror the location of the hedged items impacting earnings. Changes to the fair value of derivatives that do not qualify as hedging instruments for accounting purposes are recorded in the Company’s unaudited condensed consolidated statements of operations. Goodwill, intangible assets and long-lived assets Goodwill and intangible assets deemed to have indefinite lives are not amortized but, instead, are subject to an annual impairment assessment. Additionally, if events or conditions were to indicate the carrying value of a reporting unit may not be recoverable, the Company would evaluate goodwill and other intangible assets for impairment at that time. As it relates to the goodwill assessment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment testing described in Accounting Standards Update (“ASU”) Topic 350, Intangibles – Goodwill and Other. If, after assessing qualitative factors, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the quantitative test is unnecessary and the Company’s goodwill is considered to be unimpaired. However, if based on the Company’s qualitative assessment it concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative assessment, the Company will proceed with performing the quantitative impairment test. The Company reviews goodwill and other intangibles that have indefinite lives for impairment annually as of October 1 or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing is based upon the best information available, including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. The significant assumptions used under the income approach, or discounted cash flow method, are projected net sales, projected earnings before interest, tax, depreciation and amortization (“EBITDA”), terminal growth rates, and the cost of capital. Projected net sales, projected EBITDA and terminal growth rates were determined to be significant assumptions because they are three primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected cash flows. Although the Company believes the assumptions and estimates made are reasonable and appropriate, different assumptions and estimates could materially impact its reported financial results. In addition, sustained declines in the Company's stock price and related market capitalization could impact key assumptions in the overall estimated fair values of its reporting units and could result in non-cash impairment charges that could be material to the Company's consolidated balance sheet or results of operations. Should the carrying value of a reporting unit be in excess of the estimated fair value of that reporting unit, an impairment charge will be recorded to reduce the reporting unit to fair value. The Company also evaluates qualitative factors to determine whether or not its indefinite lived intangibles have been impaired and then performs quantitative tests if required. These tests can include the relief from royalty model or other valuation models. Long-lived assets, including intangible assets deemed to have finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Impairment indicators include, among other conditions, cash flow deficits, historical or anticipated declines in revenue or operating profit or material adverse changes in the business climate that indicate that the carrying amount of an asset group may be impaired. When impairment indicators are present, the recoverability of the asset group is measured by comparing the carrying value of the asset group to the estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of the asset group is not recoverable, the impairment to be recognized is measured by the amount by which the carrying amount of the long-lived asset group exceeds the fair value of the asset group. See Note 5 – Intangible Assets to the unaudited condensed consolidated financial statements included in this Quarterly Report for additional information. Leases The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use (“ROU”) assets are included in operating lease right-of-use assets on the condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liability and operating lease liabilities, respectively, on the condensed consolidated balance sheets. Finance leases are not material to the Company’s condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset may also include any lease payments made, adjusted for any prepaid or accrued rent payments, lease incentives, and initial direct costs incurred. Certain leases may include options to extend or terminate the lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For certain equipment leases, the Company applies a portfolio approach to effectively account for any ROU assets and lease liabilities. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company accounts for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. Employee healthcare The Company self-insures certain portions of its health insurance plan. The Company maintains an accrual for estimated unpaid claims and claims incurred but not yet reported (“IBNR”). Although management believes that it uses the best information available to estimate IBNR claims, actual claims may vary significantly from estimated claims. Restructuring expenses Costs associated with restructuring activities are recorded at fair value when a liability has been incurred. A liability has been incurred at the point of closure for any remaining operating lease obligations and at the communication date for severance. During the nine months ended September 30, 2020, the Company's international segment incurred $0.3 million of restructuring expenses related to severance associated with the strategic reorganization of the international segment’s product development and sales workforce. The strategic reorganization is the result of the Company's efforts for product development efficiencies and a country tailored international sales approach. As of September 30, 2020, $0.1 million of severance was accrued. The Company does not expect to incur any additional restructuring charges for these strategic reorganization efforts for the remainder of 2020. During the nine months ended September 30, 2019, the Company incurred $0.4 million of Filament restructuring charges, primarily related to severance. During the three and nine months ended September 30, 2019, the Company incurred $0.3 million and $0.7 million of restructuring expenses, primarily related to severance, for the integration of its legal entities operating in Europe. In 2018, the Company finalized its integration plans for its European operations and took further steps to consolidate its operations. New accounting pronouncements Updates not listed below were assessed and either determined to not be applicable or are expected to have a minimal effect on the Company’s financial position, results of operations, and disclosures. In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles and simplifies the application of U.S. GAAP for other areas of Topic 740 by clarifying and amending the existing guidance. The guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020. Early adoption is permitted. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. Management is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The ASU also provides updated guidance regarding the impairment of available-for-sale debt securities and includes additional disclosure requirements. The new guidance is effective for public business entities that meet the definition of a Smaller Reporting Company as defined by the Securities and Exchange Commission for interim and annual periods beginning after December 15, 2022. Early adoption is permitted. Management is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions to account for contract modifications, hedging relationships and other transactions that reference LIBOR or another reference rate that is expected to be discontinued as a result of reference rate reform. The guidance in the ASU may be applied to contract modifications and hedging relationships as of any date from March 12, 2020 but no later than December 31, 2022 and should be applied on a prospective basis. The Company has not yet applied the guidance in this ASU and is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. On April 10, 2020, the FASB staff issued a question-and-answer document to address stakeholder questions on the application of the lease accounting guidance for lease concessions related to the effects of the COVID-19 pandemic (the “Question-and-Answer Document”). The guidance allows concessions related to the timing of payments, where the total consideration has not changed, to not be accounted for as lease modifications. Instead, any such concessions can be accounted for as if no change was made to the contract or as variable lease payments. The Company adopted the guidance on April 1, 2020 and elected to account for COVID-19-related rent concessions that did not result in a substantial increase in the rights of the lessor or the obligations of the lessee not as lease modifications. See Note 3 – Leases for additional information on the Company’s adoption of this guidance.
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REVENUE |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUEThe Company sells products wholesale, to retailers and distributors, and sells products retail, directly to consumers. Wholesale sales and retail sales are recognized at the point in time the customer obtains control of the products in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. To indicate the transfer of control, the Company must have a present right to payment, legal title must have passed to the customer, the customer must have the significant risks and rewards of ownership, and where acceptance is not a formality, the customer must have accepted the product or service. The Company’s principal terms of sale are Free On Board (“FOB”) Shipping Point, or equivalent, and, as such, the Company primarily transfers control and records revenue for product sales upon shipment. Sales arrangements with delivery terms that are not FOB Shipping Point are not recognized upon shipment and the transfer of control for revenue recognition is evaluated based on the associated shipping terms and customer obligations. Shipping and handling fees that are billed to customers in sales transactions are included in net sales and amounted to $0.9 million and $2.6 million for the three and nine months ended September 30, 2020, respectively, and $1.0 million and $2.3 million for the three and nine months ended September 30, 2019, respectively. Net sales exclude taxes that are collected from customers and remitted to the taxing authorities. The Company offers various sales incentives and promotional programs to its wholesale customers from time to time in the normal course of business. These incentives and promotions typically include arrangements such as cooperative advertising, buydowns, volume rebates and discounts. These arrangements represent forms of variable consideration and an estimate of sales returns are reflected as reductions in net sales in the Company’s unaudited condensed consolidated statements of operations. These estimates are based on historical experience and other known factors or as the most likely amount in a range of possible outcomes. On a quarterly basis, variable consideration is assessed on a portfolio approach in estimating the extent to which the components of variable consideration are constrained. Payment terms vary by customer, but generally range from 30 to 90 days or at the point of sale for the Company’s retail direct sales. As a result of the COVID-19 pandemic, many of the Company's customers which operate retail locations have temporarily closed their stores voluntarily or as mandated by government stay at home orders. In response to these closings, the affected customers have requested extended payment terms. The Company has been working with these customers to address their temporary extended payment requests. The Company incurs certain direct incremental costs to obtain contracts with customers, such as sales-related commissions, where the recognition period for the related revenue is less than one year. These costs are expensed as incurred and recorded within selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. Incidental items that are immaterial in the context of the contract are expensed as incurred. The following tables present the Company’s net sales disaggregated by segment, product category and geographic region for the three and nine months ended September 30, 2020 and 2019 (in thousands):
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LEASES |
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LEASES | LEASES The Company has operating leases for corporate offices, distribution facilities, manufacturing plants, and certain vehicles. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheet. In response to the COVID-19 pandemic, the Company negotiated COVID-19-related rent concessions for several of its leased properties. The majority of these rent concessions were in the form of deferred rent payments for one or more months. For these rent concessions the Company elected to account for these as if no changes to the lease were made and continued to recognize the straight-line lease expense for these leases in accordance with the FASB Question-and-Answer Document. COVID-19-related deferred rent payments at September 30, 2020 were $1.4 million and were recorded in accrued expenses in the unaudited condensed consolidated balance sheet at September 30, 2020. In addition, there were a limited number of rent concessions obtained by the Company in the form of rent abatement and changes in lease terms. These lease modifications were accounted for as a resolution to a contingency that fixes previously variable lease payments which resulted in the remeasurement of the right-of-use asset and lease liability. The remeasurement of the right-of-use and lease liability did not have a material effect on our consolidated financial statements or results of operations. The Company continues to assess its leased properties in seeking commercially reasonable lease concessions given the current environment. The components of lease expense for the three and nine months ended September 30, 2020 and 2019 were as follows (in thousands):
Supplemental cash flow information for lease related liabilities and assets for the nine months ended September 30, 2020 and 2019 were as follows (in thousands):
The aggregate future lease payments for operating leases as of September 30, 2020 were as follows (in thousands):
The Company expects to make payments related to the deferrals obtained as a result of COVID-19-related rent concessions of $0.4 million in 2020 and $1.0 million in 2021, per the updated terms of the applicable lease agreements. Average lease terms and discount rates were as follows:
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INVESTMENTS |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | INVESTMENTS The Company owns approximately 30% of the outstanding capital stock of Grupo Vasconia S.A.B. (“Vasconia”), an integrated manufacturer of aluminum products and one of Mexico’s largest housewares companies. Shares of Vasconia’s capital stock are traded on the Bolsa Mexicana de Valores, the Mexican Stock Exchange. The Quotation Key is VASCONI. The Company accounts for its investment in Vasconia using the equity method of accounting and records its proportionate share of Vasconia’s net income in the Company’s condensed consolidated statements of operations. Accordingly, the Company has recorded its proportionate share of Vasconia’s net income (reduced for amortization expense related to the customer relationships acquired) for the three and nine months ended September 30, 2020 and 2019 in the accompanying unaudited condensed consolidated statements of operations. The value of the Company's investment balance has been translated from Mexican Pesos ("MXN") to U.S. Dollars ("USD") using the spot rates of MXN 22.26 and MXN 18.91 at September 30, 2020 and December 31, 2019, respectively. The Company's proportionate share of Vasconia's net income (loss) has been translated from MXN to USD using the following exchange rates:
The effect of the translation of the Company’s investment, as well as the translation of Vasconia's balance sheet, resulted in a decrease to the investment of $3.4 million and $1.8 million during the nine months ended September 30, 2020 and 2019, respectively. These translation effects are recorded in accumulated other comprehensive loss. Summarized income statement information for the three and nine months ended September 30, 2020 and 2019 for Vasconia in USD and MXN is as follows (in thousands):
The Company recorded equity in earnings (losses) of Vasconia, net of taxes, of $0.1 million and $(0.2) million for the three and nine months ended September 30, 2020, respectively. The Company recorded equity in losses of Vasconia, net of taxes, of $0.2 million and $0.4 million for the three and nine months ended September 30, 2019, respectively. Included within the Company's unaudited condensed consolidated balance sheets were the following amounts due to and due from Vasconia (in thousands):
As of September 30, 2020 and December 31, 2019, the fair value (based upon the quoted stock price) of the Company’s investment in Vasconia was $29.3 million and $34.7 million, respectively. The carrying value of the Company’s investment in Vasconia was $17.7 million and $21.3 million as of September 30, 2020 and December 31, 2019, respectively. Lifetime Brands Do Brasil Participacoes Ltda., a 100% owned subsidiary of Lifetime Brands, Inc., was dissolved on May 5, 2020. The subsidiary held a note receivable relating to the 2016 sale of its 40% equity interest in GS International S/A (“GSI”), a wholesale distributor of branded housewares products in Brazil, which was accounted for as an equity method investment. The final installment due on the note receivable was received prior to dissolution of the subsidiary. Foreign currency translation losses of $0.2 million, which were previously recorded as a component of stockholder’s equity within accumulated other comprehensive loss, were recognized in earnings upon dissolution of this subsidiary for the nine months ended September 30, 2020. The Company included this loss within equity in earnings (losses), net of taxes.
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INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands):
In the first quarter of 2020, as a result of the economic downturn caused by the COVID-19 pandemic, the Company concluded that a triggering event had occurred and performed an interim impairment test of goodwill and certain intangible assets as of March 31, 2020. The Company performed the first quarter 2020 interim impairment test of goodwill by comparing its fair value with its carrying value. The analysis was performed by using a discounted cash flow method and market multiple method. For goodwill, the outcome of the valuation is largely dependent upon estimates made by the Company with respect to significant assumptions, including projected net sales, projected earnings before interest, tax, depreciation and amortization (“EBITDA”), terminal growth rates, and the cost of capital under the discounted cash flow method. For its indefinite-lived trade names the Company performed a quantitative impairment analysis by comparing the fair value of the indefinite-lived trade names to their respective carrying values in the first quarter of 2020. The Company values its indefinite-lived trade names using a relief-from-royalty approach, which assumes the value of the trade name is the discounted cash flows of the amount that would be paid by a hypothetical market participant had they not owned the trade name and instead licensed the trade name from another company. Significant assumptions used in the Company’s fair value analysis included future net sales for the related brands, royalty rates, and the cost of capital. Based upon these analyses performed, the Company recognized a non-cash goodwill impairment charge of $19.1 million, and a $1.0 million non-cash impairment charge for certain of its indefinite-lived intangible assets in the U.S. segment in the first quarter of 2020. The Company has determined that as of September 30, 2020 a triggering event has not occurred which would require an interim impairment test to be performed. There are some inherent estimates and assumptions used in determining fair value of indefinite-lived intangible assets and reporting units that are outside the control of management, such as interest rates, cost of capital, tax rates, industry growth, credit ratings, foreign exchange rates, labor inflation and tariffs including the current trade negotiations with China. Accordingly, the Company may be required to perform additional impairment testing based on further deterioration of the global economic environment, disruptions to the Company’s business, declines in operating results of the Company’s reporting units and/or trade names, further sustained deterioration of the Company’s market capitalization, and other factors, which could result in impairment charges in the future. Although management cannot predict when improvements in macroeconomic conditions will occur, if consumer confidence and consumer spending decline significantly in the future or if commercial and industrial economic activity or the market capitalization experiences a sustained deterioration significantly from current levels, it is reasonably likely the Company will be required to record impairment charges in the future.
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DERIVATIVES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES | DERIVATIVES Interest Rate Swap Agreements The Company is a party to interest rate swap agreements, with an aggregate notional value of $75.0 million at September 30, 2020. The interest rate swaps are designated as cash flow hedges of the Company’s exposure to the variability of the payment of interest on a portion of its Term Loan borrowings. The hedge periods of these agreements commenced in April 2018 and expire in March 2023. The notional amounts are reduced over these periods. The Company entered into additional interest rate swap agreements, with an aggregate notional value of $25.0 million at September 30, 2020, that do not meet the criteria for hedge accounting treatment. As a result, these interest rate swap agreements are considered non-designated interest rate swaps that serve as economic hedges of the Company’s exposure to the variability of the payment of interest on a portion of its Term Loan borrowings and expire in February 2025. The Company's total outstanding notional value of interest rate swaps was $100.0 million at September 30, 2020. Foreign Exchange Contracts The Company is a party from time to time to certain foreign exchange contracts, primarily to offset the earnings impact related to fluctuations in foreign currency exchange rates associated with inventory purchases denominated in foreign currencies. Fluctuations in the value of certain foreign currencies as compared to the U.S. dollar may positively or negatively affect the Company’s revenues, gross margins, operating expenses, and retained earnings, all of which are expressed in USD. Where the Company deems it prudent, the Company engages in hedging programs using foreign currency forward contracts aimed at limiting the impact of foreign currency exchange rate fluctuations on earnings. The Company purchases short-term (i.e., 12 months or less) foreign currency forward contracts to protect against currency exchange risks associated with the payment of merchandise purchases to foreign suppliers. The Company does not hedge the translation of foreign currency profits into USD, as the Company regards this as an accounting exposure rather than an economic exposure. The Company's foreign exchange contracts, that had been designed as hedges in order to apply hedge accounting, matured in April 2020. At September 30, 2020 the Company did not have any outstanding foreign exchange contracts. The Company is exposed to market risks as well as changes in foreign currency exchange rates as measured against the USD and each other, and to changes to the credit risk of derivative counterparties. The Company attempts to minimize these risks primarily by using foreign currency forward contracts and by maintaining counterparty credit limits. These hedging activities provide only limited protection against currency exchange and credit risk. Factors that could influence the effectiveness of the Company’s hedging programs include those impacting currency markets and the availability of hedging instruments and liquidity of the credit markets. All foreign currency forward contracts that the Company enters into are components of hedging programs and are entered into for the sole purpose of hedging an existing or anticipated currency exposure. The Company does not enter into such contracts for speculative purposes and as of September 30, 2020, the Company does not have any foreign currency forward contract derivatives that are not designated as hedges. The fair values of the Company’s derivative financial instruments included in the condensed consolidated balance sheets are presented as follows (in thousands):
The fair values of the interest rate swaps have been obtained from the counterparties to the agreements and were based on Level 2 observable inputs using proprietary models and estimates about relevant future market conditions. The fair values of the foreign exchange contracts were based on Level 2 observable inputs using quoted market prices for similar assets in an active market. The counterparties to the derivative financial instruments are major international financial institutions. The Company is exposed to credit risk for the net exchanges under these agreements, but not for the notional amounts. The Company does not anticipate non-performance by any of its counterparties. The amounts of gains and losses, realized and unrealized, related to the Company’s derivative financial instruments designated as hedging instruments are recognized in other comprehensive income (loss), net of taxes, as follows (in thousands):
Realized gains and losses on the interest rate swaps are reclassified into earnings as the interest expense on the debt is recognized. The Company had no terminated or matured interest rate swaps during the three and nine months ended September 30, 2020. Realized gains and losses on foreign exchange contracts that are reported in other comprehensive income (loss) are reclassified into cost of sales as the underlying inventory purchased is sold. During the three months ended September 30, 2020, the Company reclassified $0.3 million of cash flow hedges in other comprehensive losses to earnings related to realized interest rate swap losses. During the nine months ended September 30, 2020, the Company reclassified $0.7 million of cash flow hedges in other comprehensive losses to earnings. This was comprised of $0.9 million related to realized interest rate swap losses and a gain of $0.2 million related to foreign exchange contracts recognized in cost of sales. During the three months ended September 30, 2019, the Company reclassified $0.1 million of cash flow hedges in other comprehensive losses to earnings. This was comprised of $0.1 million related to realized interest rate swap losses and a gain of $0.2 million related to foreign exchange contracts recognized in cost of sales. During the nine months ended September 30, 2019, the Company reclassified $0.2 million of cash flow hedges in other comprehensive losses to earnings. This was comprised of $0.1 million related to realized interest rate swap losses and a gain of $0.3 million related to foreign exchange contracts recognized in cost of sales. Interest and mark to market gains (losses) related to the Company’s derivative financial instruments not designated as hedging instruments that were recognized in earnings are as follows (in thousands):
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DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT The Company’s credit agreement, dated as of March 2, 2018 (the “ABL Agreement”) with JPMorgan Chase Bank, N.A. (“JPMorgan”), includes a senior secured asset-based revolving credit facility in the maximum aggregate principal amount of $150.0 million, which facility will mature on March 2, 2023, and a loan agreement (the “Term Loan” and together with the ABL Agreement, the “Debt Agreements”) that provides for a senior secured term loan credit facility in the original principal amount of $275.0 million, which matures on February 28, 2025. The Term Loan requires the Company to make an annual prepayment of principal based upon excess cash flow (“Excess Cash Flow”), if any. This estimated amount is recorded in current maturity of term loan on the unaudited condensed consolidated balance sheets. Additionally, the Term Loan facility requires quarterly payments, which commenced on June 30, 2018, of principal equal to 0.25% of the original aggregate principal amount of the Term Loan facility. Per the Debt Agreements, when the Company makes an Excess Cash Flow payment, the payment is first applied to satisfy the future quarterly required payments in order of maturity. The maximum borrowing amount under the ABL Agreement may be increased to up to $200.0 million if certain conditions are met. One or more tranches of additional term loans (the “Incremental Facilities”) may be added under the Term Loan if certain conditions are met. The Incremental Facilities may not exceed the sum of (i) $50.0 million plus (ii) an unlimited amount so long as, in the case of (ii) only, the Company’s secured net leverage ratio, as defined in and computed pursuant to the Term Loan, is no greater than 3.75 to 1.00, subject to certain limitations and for the period defined pursuant to the Term Loan. As of September 30, 2020 and December 31, 2019, the total availability under the ABL Agreement was as follows (in thousands):
Availability under the ABL Agreement depends on the valuation of certain current assets comprising the borrowing base. The borrowing capacity under the ABL Agreement will depend, in part, on eligible levels of accounts receivable and inventory that fluctuate regularly. Due to the seasonality of the Company’s business, this may mean that the Company will have greater borrowing availability during the third and fourth quarters of each year. Consequently, the $150.0 million commitment thereunder may not represent actual borrowing capacity. The current and non-current portions of the Company’s Term Loan facility included in the condensed consolidated balance sheets were as follows (in thousands):
The Company’s payment obligations under its Debt Agreements are unconditionally guaranteed by its existing and future U.S. subsidiaries with certain minor exceptions. Certain payment obligations under the ABL Agreement are also direct obligations of its foreign subsidiary borrowers designated as such under the ABL Agreement and, subject to limitations on such guaranty, are guaranteed by the foreign subsidiary borrowers, as well as by the Company. The obligations of the Company under the Debt Agreements and any hedging arrangements and cash management services and the guarantees by its domestic subsidiaries in respect of those obligations are secured by substantially all of the assets and stock (but in the case of foreign subsidiaries, limited to 65% of the capital stock in first-tier foreign subsidiaries and not including the stock of subsidiaries of such first-tier foreign subsidiaries) owned by the Company and the U.S. subsidiary guarantors, subject to certain exceptions. Such security interest consists of (1) a first-priority lien, subject to certain permitted liens, with respect to certain assets of the Company and its domestic subsidiaries (the “ABL Collateral”) pledged as collateral in favor of lenders under the ABL Agreement and a second-priority lien in the ABL Collateral in favor of the lenders under the Term Loan and (2) a first-priority lien, subject to certain permitted liens, with respect to certain assets of the Company and its domestic subsidiaries (the “Term Loan Collateral”) pledged as collateral in favor of lenders under the Term Loan and a second-priority lien in the Term Loan Collateral in favor of the lenders under the ABL Agreement. Borrowings under the ABL Agreement bear interest, at the Company’s option, at one of the following rates: (i) alternate base rate, defined, for any day, as the greater of the prime rate, a federal funds and overnight bank funding based rate plus 0.5% or one-month LIBOR plus 1.0%, plus a margin of 0.25% to 0.75%, or (ii) LIBOR plus a margin of 1.25% to 1.75%. The respective margins are based upon the Company’s total leverage ratio, as defined in and computed pursuant to the ABL Agreement. The interest rate on outstanding borrowings under the ABL Agreement at September 30, 2020 was 1.8%. In addition, the Company pays a commitment fee of 0.375% on the unused portion of the ABL Agreement. The Term Loan facility bears interest, at the Company’s option, at one of the following rates: (i) alternate base rate, defined, for any day, as the greater of (x) the prime rate, (y) a federal funds and overnight bank funding based rate plus 0.5% or (z) one-month LIBOR, but not less than 1.0%, plus 1.0%, which alternate base rate shall not be less than 2%, plus a margin of 2.5% or (ii) LIBOR, but not less than 1.0%, plus a margin of 3.5%. The interest rate on outstanding borrowings under the Term Loan at September 30, 2020 was 4.5%. The Debt Agreements provide for customary restrictions and events of default. Restrictions include limitations on additional indebtedness, acquisitions, investments and payment of dividends, among other things. Further, the ABL Agreement provides that during any period (a) commencing on the last day of the most recently ended four consecutive fiscal quarters on or prior to the date availability under the ABL Agreement is less than the greater of $15.0 million and 10% of the aggregate commitment under the ABL Agreement at any time and (b) ending on the day after such availability has exceeded the greater of $15.0 million and 10% of the aggregate commitment under the ABL Agreement for 45 consecutive days, the Company is required to maintain a minimum fixed charge coverage ratio of 1.10 to 1.00 as of the last day of any period of four consecutive fiscal quarters. The Company was in compliance with the covenants of the Debt Agreements at September 30, 2020. The Company expects that it will continue to borrow, subject to availability, and repay funds under the ABL Agreement based on working capital and other corporate needs.
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STOCK COMPENSATION |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK COMPENSATION | STOCK COMPENSATION On June 25, 2020, the shareholders of the Company approved an amendment and restatement of the Company’s Amended and Restated 2000 Long Term Incentive Plan (the “Plan”). The amendment and restatement of the Plan revised the terms and conditions of the Plan to, among other things, increase the shares available for grant under the Plan by 850,000 shares. As of September 30, 2020, there were 760,741 shares available for the grant of awards under the Plan. Option Awards A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2020 is as follows:
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders had all option holders exercised their stock options on September 30, 2020. The intrinsic value is calculated for each in-the-money stock option as the difference between the closing price of the Company’s common stock on September 30, 2020 and the exercise price. Restricted Stock A summary of the Company’s restricted stock activity and related information for the nine months ended September 30, 2020 is as follows:
The total fair value of restricted stock that vested during the nine months ended September 30, 2020 was $1.8 million. Performance shares Each performance award represents the right to receive up to 150% of the target number of shares of common stock. The number of shares of common stock earned will be determined based on the attainment of specified performance goals at the end of the performance period, as determined by the Compensation Committee of the Board of Directors. The shares are subject to the terms and conditions of the Company’s Plan. A summary of the Company’s performance-based award activity and related information for the nine months ended September 30, 2020 is as follows:
(1)Represents the target number of shares to be issued for each performance-based award. The total fair value of performance-based awards that vested during the nine months ended September 30, 2020 was $0.4 million. The Company recorded stock compensation expense as follows (in thousands):
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INCOME (LOSS) PER COMMON SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME (LOSS) PER COMMON SHARE | INCOME (LOSS) PER COMMON SHARE Basic income (loss) per common share has been computed by dividing net income (loss) by the weighted-average number of shares of the Company’s common stock outstanding during the relevant period. Diluted income (loss) per common share adjusts net income (loss) and basic income (loss) per common share for the effect of all potentially dilutive shares of the Company’s common stock. Anti-dilutive securities are not included in the computation of diluted earnings per share under the treasury stock method. The calculations of basic and diluted income (loss) per common share for the three and nine months ended September 30, 2020 and 2019 are as follows:
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INCOME TAXES |
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Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES In interim reporting periods through March 30, 2020, the Company had historically calculated the provision for income taxes using a forecasted rate methodology and applying an estimate of the annual effective tax rate for the full fiscal year to pre-tax income or loss for the reporting period. For the three and six months ended June 30, 2020, the Company used a discrete tax methodology to calculate taxes as management determined that minimal changes in projected pre-tax income or loss would result in significant changes in the estimated annual effective tax rate, and the historical method would not provide a reliable estimate. For the three and nine months ended September 30, 2020, the Company continues to apply the discrete tax methodology as the historical method would not provide a reliable estimate. Income tax provision of $3.7 million and $3.0 million for the three and nine months ended September 30, 2020, respectively, represent taxes on both U.S. and foreign earnings at combined effective income tax provision rates of 21.2% and (20.3)%, respectively. The effective tax rate for the three months ended September 30, 2020 is consistent with the federal statutory income tax rate of 21% and includes an increase for state and local taxes offset by other items that are not material. The negative rate for the nine months ended September 30, 2020 reflects tax expense on a pretax financial reporting loss. The effective rate for the nine months ended September 30, 2020 differs from the federal statutory income tax rate primarily due to state and local taxes, equity based awards, and the non-deductible portion of the U.S. goodwill impairment recorded in the three months ended March 31, 2020. Income tax provision of $15.1 million and $6.8 million for the three and nine months ended September 30, 2019, respectively, represent taxes on both U.S. and foreign earnings at combined effective income tax provision rates of 857.5% and (30.0)%, respectively. The negative rate for the nine months ended September 30, 2019 reflects tax expense on a pretax financial reporting loss. The effective tax rate for the three and nine months ended September 30, 2019 differs from the federal statutory income tax rate of 21% primarily due to state and local taxes and the impact of non-deductible expenses, offset by a benefit for federal credits. Included within the non-deductible expenses is the European goodwill impairment recorded in the three months ended September 30, 2019, which is not deductible for income tax purposes in the foreign jurisdiction. The Company has identified the following jurisdictions as “major” tax jurisdictions: U.S. Federal, California, Massachusetts, Texas and the United Kingdom. The Company’s 2015 U.S. Federal income tax return audit was completed as of June 30, 2020 with no assessments. The Company's New York State tax returns for years 2014-2016 remain under audit with no material assessments as of September 30, 2020. The Company evaluates its tax positions on a quarterly basis and revises its estimates accordingly. There were no material changes to the Company’s uncertain tax positions, interest, or penalties during the three-month periods ended September 30, 2020 and September 30, 2019. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted into law and the new legislation contains several key tax provisions, including the five-year net operating loss carryback, an adjusted business interest limitation, and payroll tax deferral. The Company is required to recognize the effect of tax law changes in the period of enactment. The Company has assessed the applicability of the CARES Act and determined there is no material impact to the Company.
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BUSINESS SEGMENTS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS | BUSINESS SEGMENTS The Company has two reportable segments, U.S. and International. The Company has segmented its operations to reflect the manner in which management reviews and evaluates the results of its operations. The U.S. segment includes the Company’s primary domestic business that designs, markets and distributes its products to retailers, distributors and directly to consumers through its own websites. The International segment consists of certain business operations conducted outside the U.S. Management evaluates the performance of the U.S. and International segments based on net sales and income from operations. Such measures give recognition to specifically identifiable operating costs such as cost of sales, distribution expenses and selling, general and administrative expenses. Certain general and administrative expenses, such as senior executive salaries and benefits, stock compensation, director fees, and accounting, legal and consulting fees, are not allocated to the specific segments and are reflected as unallocated corporate expenses.
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CONTINGENCIES |
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Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Wallace EPA Matter Wallace Silversmiths de Puerto Rico, Ltd. (“WSPR”), a wholly-owned subsidiary of the Company, operates a manufacturing facility in San Germán, Puerto Rico that is leased from the Puerto Rico Industrial Development Company (“PRIDCO”). In March 2008, the United States Environmental Protection Agency (the “EPA”) announced that the San Germán Ground Water Contamination site in Puerto Rico (the “Site”) had been added to the Superfund National Priorities List due to contamination present in the local drinking water supply. In May 2008, WSPR received from the EPA a Notice of Potential Liability and Request for Information pursuant to 42 U.S.C. Sections 9607(a) and 9604(e) of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). In July 2011, WSPR received a letter from the EPA requesting access to the property that it leases from PRIDCO to conduct an environmental investigation, and the Company granted such access. In February 2013, the EPA requested access to conduct a further environmental investigation at the property. PRIDCO agreed to such access and the Company consented. The EPA conducted a further investigation during 2013 and, in April 2015, notified the Company and PRIDCO that the results from vapor intrusion sampling may warrant the implementation of measures to mitigate potential exposure to sub-slab soil gas. The Company reviewed the information provided by the EPA and requested that PRIDCO, as the property owner, find and implement a solution acceptable to the EPA. While WSPR did not cause the sub-surface condition that resulted in the potential for vapor intrusion, in order to protect the health of its employees and continue its business operations, it has nevertheless implemented corrective action measures to prevent vapor intrusion, such as sealing the floors of the building and conducting periodic air monitoring to address potential exposure. On August 13, 2015, the EPA released its remedial investigation and feasibility study (“RI/FS”) for the Site. On December 11, 2015, the EPA issued the Record of Decision (“ROD”) for an initial operable unit, electing to implement its preferred remedy which consists of soil vapor extraction and dual-phase extraction/in-situ treatment. This selected remedy includes soil vapor extraction (“SVE”) to address soil (vadose zone) source areas at the Site, impermeable cover as necessary for the implementation of SVE, dual phase extraction in the shallow saprolite zone, and in-situ treatment as needed to address residual sources. The EPA’s total net present worth estimated cost for its selected remedy is $7.3 million. The EPA also designated a second operable unit under which the EPA has and will continue to conduct further investigations to determine the nature and extent of groundwater contamination, as well as a determination by the EPA on the necessity of any further response actions to address groundwater contamination. In February 2017, the EPA indicated that it planned to expand its field investigation for the RI/FS to a second operable unit to further determine the nature and extent of the groundwater contamination at and from the Site and to determine the nature of the remedial action needed to address the contamination. The EPA has requested access to the property occupied by WSPR to install monitoring wells and to undertake groundwater sampling as part of this expanded investigation. WSPR has consented to the EPA’s access request, provided that the EPA receives PRIDCO’s consent, as the property owner. WSPR never used the primary contaminant of concern and did not take up its tenancy at the Site until after the EPA had discovered the contamination in the local water supply. The EPA has also issued notices of potential liability to a number of other entities affiliated with the Site, which used the contaminants of concern. In December 2018, the Company, WSPR, and other identified Potentially Responsible Parties affiliated with the Site entered into tolling agreements to extend the statute of limitations for potential claims for the recovery of response costs for the initial operable unit under Section 107 of CERCLA. In February 2020, the tolling agreements were extended to November 2020. In October 2020, the Department of Justice requested that the parties enter into a further extension of the tolling agreement to November 2021. The Company and WSPR executed such extension agreement on October 30, 2020 and the extension agreement will be effective once countersigned by the Department of Justice. The tolling agreements do not constitute in any way an admission or acknowledgment of any fact, conclusion of law or liability by the parties to the agreements. The EPA released its proposed plan for a second operable unit in July 2019. The public comment period for the proposed plan ended on September 10, 2019. On September 30, 2019, the EPA issued the ROD for operable unit 2 (“OU-2”), electing to implement its preferred remedy which consists of in-situ treatment of groundwater and a monitored natural attenuation program including monitoring of the plume fringe at the Site. The EPA’s estimated total net present worth cost for its selected remedy is $17.3 million. Accordingly, based on the above uncertainties and variables, it is not possible at this time for the Company to estimate its share of liability, if any, related to this matter. However, in the event of one or more adverse determinations related to this matter, it is possible that the ultimate liability resulting from this matter and the impact on the Company’s results of operations could be material. U.S. Customs and Border Protection matter By letter dated August 26, 2019, the Company was advised that U.S. Customs and Border Protection ("CBP") had commenced an investigation, pursuant to 19 U.S.C. §1592, regarding the Company’s tariff classification of certain tableware and kitchenware. The issue centers on whether such merchandise meets the criteria for reduced duty rates as specified sets as those terms are defined in Chapter 69, Note 6(b), Harmonized Tariff System of the United States. The period of investigation is stated to be from August 26, 2014 to the present. Since being notified of the investigation, the Company has obtained a significant amount of evidence that, the Company believes, supports that the imported products were properly classified as specified sets. The Company's counsel filed a Lead Protest and Application for Further Review with CBP on February 5, 2020 (the "Lead Protest") relating to a single shipment made during the investigation period. CBP approved the Company’s Lead Protest on June 8, 2020 stating that the specified set requirement was fulfilled with respect to the protested shipment based on information provided by the Company. Based on this decision, no additional duties will be owed for the seven tableware collections imported in this shipment. The Company has compiled and submitted to CBP a complete set of supporting documents for the remaining three protests (for the remaining 29 tableware collections that were imported by the Company under the protested shipments). These claims are now under review. If the CBP approves these additional claims and accepts the evidence presented as it did with the Lead Protest, then no additional duties will be owed for the remaining protested shipments. Because the period of investigation covers a five-year period, the Company is compiling supporting documentation packages for all tableware collections imported during this period. In the event CBP accepts the evidence presented, then no additional duties or penalties will be owed. If CBP rejects the Company’s position, then the estimated amount of duties that could be owed is $3.1 million. In such event, it is reasonably possible that additional penalties could be assessed, depending upon the level of culpability found, of up to $6.2 million for negligence and up to $12.4 million for gross negligence. In the event penalties are assessed, the Company will have the opportunity to further contest CBP’s findings and seek cancellation or mitigation of such assessments. Accordingly, based on the above uncertainties and variables, the Company considers the potential losses related to this matter to be reasonably possible, but not probable. However, in the event of one or more adverse determinations related to this matter, it is possible that the ultimate liability resulting from this matter and the impact on the Company’s results of operations could be material. Other The Company is involved in other legal proceedings from time to time. The Company believes that other current litigation is routine in nature and incidental to the conduct of the Company’s business and that none of this litigation, individually or collectively, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.
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OTHER |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER | OTHER Cash dividends Dividends declared in the nine months ended September 30, 2020 were as follows:
On February 14, 2020 and August 17, 2020 the Company paid dividends of $0.9 million and $0.9 million to shareholders of record on January 31, 2020 and August 3, 2020. In 2020, the Company declared dividends as follows: •On March 10, 2020, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on May 15, 2020 to shareholders of record on May 1, 2020. Subsequently, the Company issued a press release on April 23, 2020, announcing that the Board of Directors unanimously approved the rescheduling of the May quarterly dividend. Accordingly, shareholders of record as of November 16, 2020 will be eligible to receive a dividend of $0.0425 per share on December 16, 2020. •On June 25, 2020, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on August 17, 2020 to shareholders of record on August 3, 2020. •On August 4, 2020, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on November 16, 2020 to shareholders of record on November 2, 2020. •On November 3, 2020, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on February 12, 2021 to shareholders of record on January 29, 2021. In the three months ended September 30, 2020, the Company reduced retained earnings for the accrual of $0.9 million relating to the dividend payable on November 16, 2020. For the nine months ended September 30, 2020, the Company reduced retained earnings by $2.8 million relating to the dividends declared through September 30, 2020. Supplemental cash flow information
Components of accumulated other comprehensive loss, net
(1)Amount is recorded in equity in earnings (losses) on the unaudited condensed consolidated statements of operations. (2)Amounts reclassified are recorded in interest expense and cost of sales on the unaudited condensed consolidated statement of operations. (3)Amounts are recorded in selling, general and administrative expense on the unaudited condensed consolidated statements of operations.
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BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES (Policies) |
9 Months Ended |
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Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, which consist of normal recurring accruals and non-recurring adjustments, some specifically associated with recent events surrounding the COVID-19 pandemic, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The Company’s business and working capital needs are highly seasonal, with a majority of sales occurring in the third and fourth quarters. In 2019 and 2018, net sales for the third and fourth quarters accounted for 60% and 62% of total annual net sales, respectively. In anticipation of the pre-holiday shipping season, inventory levels increase primarily in the June through October time period. Although the Company’s current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from expectations, which could materially affect the Company’s results of operations and financial position. In particular, a number of estimates have been and will continue to be affected by the ongoing COVID-19 pandemic. The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly changing and difficult to predict.
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Revenue recognition and Cost of sales | Revenue recognition The Company sells products wholesale, to retailers and distributors, and retail, directly to the consumer. Wholesale sales and retail sales are primarily recognized at the point in time the customer obtains control of the products, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. The Company offers various sales incentives and promotional programs to its customers in the normal course of business. These incentives and promotions typically include arrangements such as cooperative advertising, buydowns, volume rebates and discounts. These arrangements and an estimate for products expected to be returned are reflected as reductions of revenue at the time of sale. See Note 2 – Revenue to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information. Cost of sales Cost of sales consists primarily of costs associated with the production and procurement of product, inbound freight costs, purchasing costs, royalties, tooling, and other product procurement related charges. In 2019, the Company implemented programs to improve the productivity of its inventory and simplify its U.S. business. In connection therewith, it initiated a stock keeping unit rationalization (“SKU Rationalization”) initiative to identify inventory to discontinue from active status, consistent with the objectives of these programs.
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Distribution expenses | Distribution expenses Distribution expenses consist primarily of warehousing expenses and freight-out expenses. Handling costs of products sold are included in cost of sales.
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Accounts receivable | Accounts receivable The Company periodically reviews the collectability of its accounts receivable and establishes allowances for estimated losses that could result from the inability of its customers to make required payments, taking into consideration customer credit history and financial condition, industry and market segment information, credit reports, and economic trends and conditions such as the impacts of the COVID-19 pandemic in 2020. A considerable amount of judgment is required to assess the ultimate realization of these receivables, including assessing the initial and on-going creditworthiness of the Company’s customers. The Company also maintains an allowance for anticipated customer deductions. The allowances for deductions are primarily based on contracts with customers. However, in certain cases, the Company does not have a formal contract and, therefore, customer deductions are non-contractual. To evaluate the reasonableness of non-contractual customer deductions, the Company analyzes currently available information and historical trends of deductions.
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Receivable purchase agreement | Receivable purchase agreementThe Company has an uncommitted Receivables Purchase Agreement with HSBC Bank USA, National Association (“HSBC”) as Purchaser (the “Receivables Purchase Agreement”). The sale of accounts receivable, under the Receivables Purchase Agreement with HSBC, is excluded from the Company’s unaudited condensed consolidated balance sheets at the time of sale and the related sale expense is included in selling, general and administrative expenses in the Company’s unaudited condensed consolidated statements of operations. |
Inventory | Inventory Inventory consists principally of finished goods sourced from third-party suppliers. Inventory also includes finished goods, work in process and raw materials related to the Company’s manufacture of sterling silver products. Inventory is priced using the lower of cost (first-in, first-out basis) or net realizable value. The Company estimates the selling price of its inventory on a product by product basis based on the current selling environment. If the estimated selling price is lower than the inventory’s cost, the Company reduces the value of the inventory to its net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation.
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Fair value of financial instruments | Fair value of financial instruments The Company determined that the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable are reasonable estimates of their fair values because of their short-term nature. The Company determined the carrying amounts of borrowings outstanding under its ABL Agreement and Term Loan (each as defined in Note 6 – Debt to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q) approximate fair value since such borrowings bear interest at variable market rates.
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Derivatives | Derivatives The Company accounts for derivative instruments in accordance with Accounting Standard Codification (“ASC”) Topic 815, Derivatives and Hedging ("ASC 815"). ASC 815 requires that all derivative instruments be recognized on the balance sheet at fair value as either an asset or liability. Changes in the fair value of derivatives that qualify as hedges and have been designated as part of a hedging relationship for accounting purposes have no net impact on earnings until the hedged item is recognized in earnings. The change in the fair value of hedges is included in accumulated other comprehensive loss and is subsequently recognized in the Company’s unaudited condensed consolidated statements of operations to mirror the location of the hedged items impacting earnings. Changes to the fair value of derivatives that do not qualify as hedging instruments for accounting purposes are recorded in the Company’s unaudited condensed consolidated statements of operations.
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Goodwill, intangible assets and long-lived assets | Goodwill, intangible assets and long-lived assets Goodwill and intangible assets deemed to have indefinite lives are not amortized but, instead, are subject to an annual impairment assessment. Additionally, if events or conditions were to indicate the carrying value of a reporting unit may not be recoverable, the Company would evaluate goodwill and other intangible assets for impairment at that time. As it relates to the goodwill assessment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment testing described in Accounting Standards Update (“ASU”) Topic 350, Intangibles – Goodwill and Other. If, after assessing qualitative factors, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the quantitative test is unnecessary and the Company’s goodwill is considered to be unimpaired. However, if based on the Company’s qualitative assessment it concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative assessment, the Company will proceed with performing the quantitative impairment test. The Company reviews goodwill and other intangibles that have indefinite lives for impairment annually as of October 1 or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing is based upon the best information available, including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. The significant assumptions used under the income approach, or discounted cash flow method, are projected net sales, projected earnings before interest, tax, depreciation and amortization (“EBITDA”), terminal growth rates, and the cost of capital. Projected net sales, projected EBITDA and terminal growth rates were determined to be significant assumptions because they are three primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected cash flows. Although the Company believes the assumptions and estimates made are reasonable and appropriate, different assumptions and estimates could materially impact its reported financial results. In addition, sustained declines in the Company's stock price and related market capitalization could impact key assumptions in the overall estimated fair values of its reporting units and could result in non-cash impairment charges that could be material to the Company's consolidated balance sheet or results of operations. Should the carrying value of a reporting unit be in excess of the estimated fair value of that reporting unit, an impairment charge will be recorded to reduce the reporting unit to fair value. The Company also evaluates qualitative factors to determine whether or not its indefinite lived intangibles have been impaired and then performs quantitative tests if required. These tests can include the relief from royalty model or other valuation models. Long-lived assets, including intangible assets deemed to have finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Impairment indicators include, among other conditions, cash flow deficits, historical or anticipated declines in revenue or operating profit or material adverse changes in the business climate that indicate that the carrying amount of an asset group may be impaired. When impairment indicators are present, the recoverability of the asset group is measured by comparing the carrying value of the asset group to the estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of the asset group is not recoverable, the impairment to be recognized is measured by the amount by which the carrying amount of the long-lived asset group exceeds the fair value of the asset group.
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Leases | Leases The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use (“ROU”) assets are included in operating lease right-of-use assets on the condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liability and operating lease liabilities, respectively, on the condensed consolidated balance sheets. Finance leases are not material to the Company’s condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset may also include any lease payments made, adjusted for any prepaid or accrued rent payments, lease incentives, and initial direct costs incurred. Certain leases may include options to extend or terminate the lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For certain equipment leases, the Company applies a portfolio approach to effectively account for any ROU assets and lease liabilities. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company accounts for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized.
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Employee healthcare | Employee healthcare The Company self-insures certain portions of its health insurance plan. The Company maintains an accrual for estimated unpaid claims and claims incurred but not yet reported (“IBNR”). Although management believes that it uses the best information available to estimate IBNR claims, actual claims may vary significantly from estimated claims.
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Restructuring expenses | Restructuring expenses Costs associated with restructuring activities are recorded at fair value when a liability has been incurred. A liability has been incurred at the point of closure for any remaining operating lease obligations and at the communication date for severance.
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New accounting pronouncements | New accounting pronouncements Updates not listed below were assessed and either determined to not be applicable or are expected to have a minimal effect on the Company’s financial position, results of operations, and disclosures. In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles and simplifies the application of U.S. GAAP for other areas of Topic 740 by clarifying and amending the existing guidance. The guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020. Early adoption is permitted. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. Management is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The ASU also provides updated guidance regarding the impairment of available-for-sale debt securities and includes additional disclosure requirements. The new guidance is effective for public business entities that meet the definition of a Smaller Reporting Company as defined by the Securities and Exchange Commission for interim and annual periods beginning after December 15, 2022. Early adoption is permitted. Management is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions to account for contract modifications, hedging relationships and other transactions that reference LIBOR or another reference rate that is expected to be discontinued as a result of reference rate reform. The guidance in the ASU may be applied to contract modifications and hedging relationships as of any date from March 12, 2020 but no later than December 31, 2022 and should be applied on a prospective basis. The Company has not yet applied the guidance in this ASU and is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. On April 10, 2020, the FASB staff issued a question-and-answer document to address stakeholder questions on the application of the lease accounting guidance for lease concessions related to the effects of the COVID-19 pandemic (the “Question-and-Answer Document”). The guidance allows concessions related to the timing of payments, where the total consideration has not changed, to not be accounted for as lease modifications. Instead, any such concessions can be accounted for as if no change was made to the contract or as variable lease payments. The Company adopted the guidance on April 1, 2020 and elected to account for COVID-19-related rent concessions that did not result in a substantial increase in the rights of the lessor or the obligations of the lessee not as lease modifications. See Note 3 – Leases for additional information on the Company’s adoption of this guidance.
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BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventory | The components of inventory were as follows (in thousands):
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REVENUE (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables present the Company’s net sales disaggregated by segment, product category and geographic region for the three and nine months ended September 30, 2020 and 2019 (in thousands):
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LEASES (Tables) |
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Lease, Cost | The components of lease expense for the three and nine months ended September 30, 2020 and 2019 were as follows (in thousands):
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Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information for lease related liabilities and assets for the nine months ended September 30, 2020 and 2019 were as follows (in thousands):
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Lessee, Operating Lease, Liability, Maturity | The aggregate future lease payments for operating leases as of September 30, 2020 were as follows (in thousands):
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Schedule Of Average Lease Terms And Discount Rates | Average lease terms and discount rates were as follows:
|
INVESTMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Exchange Rate Translation from MXN to USD | The Company's proportionate share of Vasconia's net income (loss) has been translated from MXN to USD using the following exchange rates:
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Summarized Income Statement Information for Vasconia in USD and MXN | Summarized income statement information for the three and nine months ended September 30, 2020 and 2019 for Vasconia in USD and MXN is as follows (in thousands):
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Schedule of Amounts Due to and Due from Related Parties Current | Included within the Company's unaudited condensed consolidated balance sheets were the following amounts due to and due from Vasconia (in thousands):
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INTANGIBLE ASSETS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Intangible Assets Included in Wholesale Segment | Intangible assets consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands):
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DERIVATIVES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Derivative Financial Instruments Included in Unaudited Condensed Consolidated Balance Sheets | The fair values of the Company’s derivative financial instruments included in the condensed consolidated balance sheets are presented as follows (in thousands):
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Gains and Losses Related to Derivative Financial Instruments Designated as Hedging Instruments | The amounts of gains and losses, realized and unrealized, related to the Company’s derivative financial instruments designated as hedging instruments are recognized in other comprehensive income (loss), net of taxes, as follows (in thousands):
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Derivatives Not Designated as Hedging Instruments | Interest and mark to market gains (losses) related to the Company’s derivative financial instruments not designated as hedging instruments that were recognized in earnings are as follows (in thousands):
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DEBT (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities | As of September 30, 2020 and December 31, 2019, the total availability under the ABL Agreement was as follows (in thousands):
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Schedule of Long-term Debt Instruments | The current and non-current portions of the Company’s Term Loan facility included in the condensed consolidated balance sheets were as follows (in thousands):
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STOCK COMPENSATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity and Related Information | A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2020 is as follows:
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Summary of Restricted Stock Activity | A summary of the Company’s restricted stock activity and related information for the nine months ended September 30, 2020 is as follows:
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Summary of Performance-based Award Activity | A summary of the Company’s performance-based award activity and related information for the nine months ended September 30, 2020 is as follows:
(1)Represents the target number of shares to be issued for each performance-based award.
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Summary of Stock Compensation Expense | The Company recorded stock compensation expense as follows (in thousands):
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INCOME (LOSS) PER COMMON SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculations of Basic and Diluted Income (Loss) per Common Share | The calculations of basic and diluted income (loss) per common share for the three and nine months ended September 30, 2020 and 2019 are as follows:
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BUSINESS SEGMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information |
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OTHER (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Dividends Declared | Dividends declared in the nine months ended September 30, 2020 were as follows:
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Supplemental Cash Flow Information | Supplemental cash flow information
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Components of Accumulated Other Comprehensive Loss, Net | Components of accumulated other comprehensive loss, net
(1)Amount is recorded in equity in earnings (losses) on the unaudited condensed consolidated statements of operations. (2)Amounts reclassified are recorded in interest expense and cost of sales on the unaudited condensed consolidated statement of operations. (3)Amounts are recorded in selling, general and administrative expense on the unaudited condensed consolidated statements of operations.
|
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Percentage of total annual net sales in the third and fourth quarters | 60.00% | 62.00% | |||||
SKU Rationalization charged to cost of sales | $ 8,500 | ||||||
Percentage Of inventory effected | 8.00% | ||||||
Restructuring expenses | $ 0 | $ 338 | $ 253 | 1,119 | |||
Employee Severance | International | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Restructuring expenses accrued | 100 | 100 | |||||
Restructuring expenses | 300 | ||||||
Employee Severance | U.S. segment | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Restructuring expenses | 400 | ||||||
Employee Severance | European operations | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Restructuring expenses | 300 | 700 | |||||
Receivables Purchase Agreement | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Sale of receivables | 43,000 | 32,500 | 116,900 | 81,700 | |||
Receivables sold outstanding | 26,700 | 17,800 | 26,700 | 17,800 | |||
Receivables Purchase Agreement | Selling, general and administrative expense | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Charge related to sale of receivables | $ 100 | $ 200 | $ 400 | $ 400 |
BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Components of Inventory (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Accounting Policies [Abstract] | ||
Finished goods | $ 201,453 | $ 165,950 |
Work in process | 145 | 61 |
Raw materials | 8,227 | 7,416 |
Total | $ 209,825 | $ 173,427 |
REVENUE - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 224,750 | $ 215,502 | $ 519,960 | $ 507,964 |
Shipping and Handling | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 900 | $ 1,000 | $ 2,600 | $ 2,300 |
REVENUE - Summary of Company's Revenue Disaggregated by Geographic Region and Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 224,750 | $ 215,502 | $ 519,960 | $ 507,964 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 193,432 | 179,565 | 447,087 | 417,657 |
United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 15,646 | 13,985 | 36,418 | 44,697 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 15,672 | 21,952 | 36,455 | 45,610 |
U.S. segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 201,539 | 195,199 | 463,338 | 445,329 |
U.S. segment | Kitchenware | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 119,566 | 99,257 | 283,258 | 234,149 |
U.S. segment | Tableware | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 51,285 | 57,332 | 98,534 | 112,543 |
U.S. segment | Home Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 30,688 | 38,610 | 81,546 | 98,637 |
International segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 23,211 | 20,303 | 56,622 | 62,635 |
International segment | Kitchenware | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 19,186 | 16,406 | 45,500 | 42,918 |
International segment | Tableware | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,025 | $ 3,897 | $ 11,122 | $ 19,717 |
LEASES - Additional Information (Details) - COVID-19 - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Lessee, Lease, Description [Line Items] | ||
Deferred rent | $ 1.4 | |
Payments for deferred rent | $ 0.4 | |
Forecast | ||
Lessee, Lease, Description [Line Items] | ||
Payments for deferred rent | $ 1.0 |
LEASES - Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Operating lease expenses: | ||||
Fixed | $ 4,450 | $ 4,796 | $ 13,755 | $ 13,927 |
LEASES - Supplemental Cash Flow Information Related To Leases (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 10,839 | $ 12,877 |
Right-of-use assets obtained in exchange for new lease obligations: | ||
Operating leases | $ 38 | $ 118,054 |
LEASES - Maturities of Operating Lease Liability (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
2020 (excluding the nine months ending September 30, 2020) | $ 4,639 |
2021 | 17,965 |
2022 | 18,071 |
2023 | 18,050 |
2024 | 17,723 |
2025 | 17,697 |
Thereafter | 54,993 |
Total lease payments | 149,138 |
Less: Interest | (33,626) |
Present value of lease payments | $ 115,512 |
LEASES - Average Lease Terms And Discount Rates (Details) |
Sep. 30, 2020 |
---|---|
Leases [Abstract] | |
Operating lease, weighted average remaining lease term (in years) | 8 years 4 months 24 days |
Operating lease, weighted average discount rate, percent | 6.20% |
INVESTMENTS - Additional Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
May 05, 2020 |
Sep. 30, 2020
USD ($)
$ / $
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
$ / $
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
$ / $
|
|
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in earnings (losses), net of taxes | $ 147 | $ (210) | $ (362) | $ (395) | ||
Ownership interest prior to dissolution | 100.00% | |||||
Foreign currency translation gain (loss) | $ (200) | |||||
Grupo Vasconia S.A.B. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of ownership in equity method investment | 30.00% | 30.00% | ||||
Exchange rate at period end (MXN per USD) | $ / $ | 22.26 | 22.26 | 18.91 | |||
Increase (decrease) in equity method investment | $ (3,400) | (1,800) | ||||
Equity in earnings (losses), net of taxes | $ 100 | $ (200) | (200) | $ (400) | ||
Fair value of investment | 29,300 | 29,300 | $ 34,700 | |||
Carrying value of investment | $ 17,700 | $ 17,700 | $ 21,300 | |||
GS International S/A | Lifetime Brands Do Brasil Participacoes Ltda. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of ownership in equity method investment | 40.00% |
INVESTMENTS - Summarized Exchange Rate Translation from MXN to USD (Details) - Grupo Vasconia S.A.B. - $ / $ |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Average daily exchange rate for period (MXN per USD) | 22.06 | 19.42 | ||
Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Average daily exchange rate for period (MXN per USD) | 19.91 | 19.11 | ||
Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Average daily exchange rate for period (MXN per USD) | 23.31 | 19.42 |
INVESTMENTS - Summarized Statement of Income Information for Vasconia in USD and MXN (Details) $ in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2020
MXN ($)
|
Jun. 30, 2020
USD ($)
|
Mar. 31, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2019
MXN ($)
|
Jun. 30, 2019
USD ($)
|
Mar. 31, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2020
MXN ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2019
MXN ($)
|
|
Income Statement [Abstract] | ||||||||||||
Gross profit | $ 78,792 | $ 72,941 | $ 185,894 | $ 171,281 | ||||||||
Net Income (loss) | 13,913 | $ (3,977) | $ (28,164) | (13,519) | $ (11,513) | $ (4,867) | (18,228) | (29,899) | ||||
Grupo Vasconia S.A.B. | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||||||
Income Statement [Abstract] | ||||||||||||
Net sales | 39,565 | $ 872,647 | 36,566 | $ 710,118 | 99,932 | $ 2,171,695 | 115,100 | $ 2,216,293 | ||||
Gross profit | 9,556 | 210,770 | 5,572 | 108,205 | 21,025 | 459,731 | 22,801 | 438,478 | ||||
Income (loss) from operations | 2,957 | 65,229 | (581) | (11,288) | 3,821 | 87,229 | 4,117 | 78,739 | ||||
Net Income (loss) | $ 536 | $ 11,812 | $ (647) | $ (12,571) | $ (36) | $ (6,344) | $ (1,158) | $ (22,384) |
INVESTMENTS - Amounts Due to and and Due from Vasconia (Details) - Grupo Vasconia S.A.B. - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Prepaid expenses and other current assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Amounts due from Vasconia | $ 75 | $ 63 |
Accrued expenses and Accounts payable | ||
Schedule of Equity Method Investments [Line Items] | ||
Amounts due to Vasconia | $ (380) | $ (77) |
INTANGIBLE ASSETS - Components of Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Schedule of Intangible Assets Disclosure [Line Items] | |||||
Goodwill, Gross | $ 49,371 | $ 49,371 | $ 92,361 | ||
Goodwill, Impairment | (19,100) | (42,990) | |||
Goodwill, Net | 30,271 | 30,271 | 49,371 | ||
Finite-lived intangible assets, Accumulated Amortization | (82,220) | (82,220) | (70,097) | ||
Total, Gross | 349,500 | 349,500 | 393,558 | ||
Total, Impairment | 0 | $ (9,748) | (20,100) | $ (9,748) | (42,990) |
Total, Net | 247,180 | 247,180 | 280,471 | ||
Licenses | |||||
Schedule of Intangible Assets Disclosure [Line Items] | |||||
Finite-lived intangible assets, Gross | 15,847 | 15,847 | 15,847 | ||
Finite-lived intangible assets, Accumulated Amortization | (10,628) | (10,628) | (10,287) | ||
Finite-lived intangible assets, Net | 5,219 | 5,219 | 5,560 | ||
Trade names | |||||
Schedule of Intangible Assets Disclosure [Line Items] | |||||
Finite-lived intangible assets, Gross | 43,714 | 43,714 | 43,986 | ||
Finite-lived intangible assets, Accumulated Amortization | (19,605) | (19,605) | (17,337) | ||
Finite-lived intangible assets, Net | 24,109 | 24,109 | 26,649 | ||
Customer relationships | |||||
Schedule of Intangible Assets Disclosure [Line Items] | |||||
Finite-lived intangible assets, Gross | 175,831 | 175,831 | 176,602 | ||
Finite-lived intangible assets, Accumulated Amortization | (49,685) | (49,685) | (40,605) | ||
Finite-lived intangible assets, Net | 126,146 | 126,146 | 135,997 | ||
Other | |||||
Schedule of Intangible Assets Disclosure [Line Items] | |||||
Finite-lived intangible assets, Gross | 6,521 | 6,521 | 6,546 | ||
Finite-lived intangible assets, Accumulated Amortization | (2,302) | (2,302) | (1,868) | ||
Finite-lived intangible assets, Net | 4,219 | 4,219 | 4,678 | ||
Trade names | |||||
Schedule of Intangible Assets Disclosure [Line Items] | |||||
Indefinite-lived intangible assets, Gross | 58,216 | 58,216 | 58,216 | ||
Indefinite-lived intangible assets, Impairment | (1,000) | 0 | |||
Indefinite-lived intangible assets, Net | $ 57,216 | $ 57,216 | $ 58,216 |
INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|
Mar. 31, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Schedule of Intangible Assets Disclosure [Line Items] | |||
Non-cash goodwill impairment charge | $ 19,100 | $ 42,990 | |
U.S. | |||
Schedule of Intangible Assets Disclosure [Line Items] | |||
Non-cash goodwill impairment charge | $ 19,100 | ||
Indefinite-lived intangible assets, impairment | $ 1,000 |
DERIVATIVES - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Derivative [Line Items] | ||||
Gain (loss) reclassified into earnings | $ (300,000) | $ (100,000) | $ (700,000) | $ (200,000) |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional amount | 100,000,000.0 | 100,000,000.0 | ||
Derivatives designated as hedging instruments | Cash Flow Hedging | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional amount | 75,000,000.0 | 75,000,000.0 | ||
Derivatives not designated as hedging instruments | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional amount | $ 25,000,000.0 | 25,000,000.0 | ||
Interest expense | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Gain (loss) reclassified into earnings | (100,000) | (900,000) | (100,000) | |
Cost of Sales | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gain (loss) reclassified into earnings | $ 200,000 | $ 200,000 | $ 300,000 |
DERIVATIVES - Fair Values of Derivative Financial Instruments Included in Consolidated Balance Sheets (Details) - Fair Value, Observable inputs, Level 2 - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Derivatives designated as hedging instruments | Interest rate swaps | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 0 | $ 427 |
Derivatives designated as hedging instruments | Interest rate swaps | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 1,267 |
Derivatives designated as hedging instruments | Interest rate swaps | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 614 | 0 |
Derivatives designated as hedging instruments | Interest rate swaps | Other Long-Term Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 1,233 | 0 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Prepaid expenses | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 180 |
Derivatives not designated as hedging instruments | Interest rate swaps | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 402 |
Derivatives not designated as hedging instruments | Interest rate swaps | Other Long-Term Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 1,913 | $ 0 |
DERIVATIVES - Gains and Losses Related to Derivative Financial Instruments Designated as Hedging Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Net change in cash flow hedges | $ 216 | $ 101 | $ (2,877) | $ 151 | $ 982 | $ 596 | $ (2,560) | $ 1,729 |
Interest rate swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Net change in cash flow hedges | 216 | 107 | (2,669) | 1,331 | ||||
Foreign exchange contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Net change in cash flow hedges | $ 0 | $ 44 | $ 109 | $ 398 |
DERIVATIVES - Gains and Losses Related to Derivative Financial Instruments Not Designated as Hedging Instruments (Details) - Interest rate swaps - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative financial instruments not designated as hedging instruments | $ (12) | $ 390 | $ (2,529) | $ 740 |
Mark to market gain (loss) on interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative financial instruments not designated as hedging instruments | 99 | 367 | (2,316) | 717 |
Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative financial instruments not designated as hedging instruments | $ (111) | $ 23 | $ (213) | $ 23 |
DEBT - Additional Information (Details) |
9 Months Ended | |
---|---|---|
Sep. 30, 2020
USD ($)
$ / $
|
Dec. 31, 2019
USD ($)
|
|
ABL Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum aggregate principal allowed | $ 150,000,000 | $ 150,000,000 |
Minimum availability under revolving credit to maintain minimum fixed charge ratio for four consecutive months | $ 15,000,000.0 | |
Commitment fee percentage | 10.00% | |
Maximum fixed charge coverage ratio | $ / $ | 1.10 | |
Debt Agreements | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 275,000,000.0 | |
Percentage of capital stock of foreign subsidiaries pledged as collateral | 65.00% | |
Minimum term under revolving credit to maintain minimum fixed charge ratio | 45 days | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Quarterly payments, percentage of principal amount | 0.25% | |
Maximum debt instrument leverage ratio | 3.75 | |
Interest rates on outstanding borrowings | 4.50% | |
Term Loan | Federal Funds And Overnight Bank Funding Based Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Term Loan | Alternate Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Term Loan | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% | |
Minimum | Term Loan | Alternate Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated rate | 2.00% | |
Senior Secured Asset Based Revolving Credit Facilities | ABL Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum aggregate principal allowed | $ 150,000,000.0 | |
Increase in maximum borrowing capacity | 200,000,000.0 | |
Senior Secured Asset Based Revolving Credit Facilities | Incremental Facilities | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated amount | $ 50,000,000.0 | |
Revolving Credit Facility | ABL Credit Agreement | Federal Funds And Overnight Bank Funding Based Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Revolving Credit Facility | Term Loan | One Month London Inter bank Offered Rate LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
Revolving Credit Facility | Minimum | ABL Credit Agreement | ||
Debt Instrument [Line Items] | ||
Interest rates on outstanding borrowings | 1.80% | |
Commitment fee percentage | 0.375% | |
Revolving Credit Facility | Minimum | ABL Credit Agreement | One Month London Inter bank Offered Rate LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated rate | 1.00% | |
Revolving Credit Facility | Minimum | ABL Credit Agreement | Alternate Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.25% | |
Revolving Credit Facility | Minimum | ABL Credit Agreement | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Revolving Credit Facility | Minimum | Term Loan | One Month London Inter bank Offered Rate LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated rate | 1.00% | |
Revolving Credit Facility | Minimum | Term Loan | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated rate | 1.00% | |
Revolving Credit Facility | Maximum | ABL Credit Agreement | Alternate Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.75% | |
Revolving Credit Facility | Maximum | ABL Credit Agreement | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% |
DEBT - Total Availability Under ABL Agreement (Details) - ABL Credit Agreement - USD ($) |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Maximum aggregate principal allowed | $ 150,000,000 | $ 150,000,000 |
Outstanding borrowings under the ABL Agreement | (25,654,000) | (32,822,000) |
Standby letters of credit | (2,678,000) | (2,288,000) |
Total availability under the ABL Agreement | $ 121,668,000 | $ 114,890,000 |
DEBT - Schedule of Term Loan Facility (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Term Loan facility, net of current portion | $ 25,654 | $ 32,822 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Term Loan facility payment | 0 | 2,750 |
Estimated Excess Cash Flow principal payment | 20,000 | 7,145 |
Estimated unamortized debt issuance costs | (1,478) | (1,482) |
Total Current portion of Term Loan facility | 18,522 | 8,413 |
Term Loan facility, net of current portion | 242,605 | 260,293 |
Estimated unamortized debt issuance costs | (4,878) | (6,012) |
Total Non Current portion of Term Loan facility | $ 237,727 | $ 254,281 |
STOCK COMPENSATION - Additional Information (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Jun. 25, 2020 |
|
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of equity instruments | $ 1.8 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of equity instruments | $ 0.4 | |
Number of shares range percentage | 150.00% | |
Performance Shares | Amended and Restated Long Term Incentive Plan Two Thousand | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of additional shares available for grant (in shares) | 850,000 | |
Number of shares available for grant (in shares) | 760,741 |
STOCK COMPENSATION - Summary of Stock Option (Details) $ / shares in Units, $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
$ / shares
shares
| |
Options | |
Beginning balance (in shares) | shares | 1,508,325 |
Grants (in shares) | shares | 37,500 |
Cancellations (in shares) | shares | (12,313) |
Expirations (in shares) | shares | (232,737) |
Ending balance (in shares) | shares | 1,300,775 |
Options exercisable, end of period (in shares) | shares | 995,982 |
Weighted- average exercise price | |
Beginning balance (usd per share) | $ / shares | $ 13.43 |
Grants (usd per share) | $ / shares | 6.36 |
Cancellations (usd per share) | $ / shares | 11.86 |
Expirations (usd per share) | $ / shares | 13.18 |
Ending balance (usd per share) | $ / shares | 13.28 |
Weighted-average exercise price, Options exercisable, end of period (usd per share) | $ / shares | $ 14.27 |
Weighted- average remaining contractual life (years) | |
Options outstanding, end of period | 5 years |
Options exercisable, end of period | 3 years 10 months 24 days |
Aggregate intrinsic value (in thousands) | |
Options outstanding, aggregate intrinsic Value | $ | $ 179 |
Options exercisable, aggregate intrinsic Value | $ | 22 |
Total unrecognized stock option expense remaining (in thousands) | $ | $ 731 |
Weighted-average years expected to be recognized over (in years) | 1 year 3 months 18 days |
STOCK COMPENSATION - Summary of Restricted Stock Activity (Details) $ / shares in Units, $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
$ / shares
shares
| |
Restricted Shares | |
Weighted-average years expected to be recognized over (in years) | 1 year 3 months 18 days |
Restricted Stock | |
Restricted Shares | |
Beginning balance (in shares) | shares | 593,341 |
Grants (in shares) | shares | 534,940 |
Vested (in shares) | shares | (289,034) |
Cancellations (in shares) | shares | (6,295) |
Ending balance (in shares) | shares | 832,952 |
Total unrecognized compensation expense remaining (in thousands) | $ | $ 4,469 |
Weighted-average years expected to be recognized over (in years) | 1 year 3 months 18 days |
Weighted- average grant date fair value | |
Beginning balance (usd per share) | $ / shares | $ 10.70 |
Grants (usd per share) | $ / shares | 5.94 |
Vested (usd per share) | $ / shares | 10.81 |
Cancellations (usd per share) | $ / shares | 9.37 |
Ending balance (usd per share) | $ / shares | $ 7.61 |
STOCK COMPENSATION - Summary of Performance-based Award Activity (Details) $ / shares in Units, $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
$ / shares
shares
| |
Restricted Shares | |
Weighted-average years expected to be recognized over (in years) | 1 year 3 months 18 days |
Performance Shares | |
Restricted Shares | |
Beginning balance (in shares) | shares | 405,059 |
Grants (in shares) | shares | 106,275 |
Vested (in shares) | shares | (62,215) |
Cancellations (in shares) | shares | (15,274) |
Ending balance (in shares) | shares | 433,845 |
Total unrecognized compensation expense remaining (in thousands) | $ | $ 1,469 |
Weighted-average years expected to be recognized over (in years) | 1 year 6 months |
Weighted- average grant date fair value | |
Beginning balance (usd per share) | $ / shares | $ 12.43 |
Grants (usd per share) | $ / shares | 6.36 |
Vested (usd per share) | $ / shares | 18.45 |
Cancellations (usd per share) | $ / shares | 16.92 |
Ending balance (usd per share) | $ / shares | $ 9.92 |
STOCK COMPENSATION - Stock Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock compensation expense | $ 1,575 | $ 1,505 | $ 4,321 | $ 3,605 |
Equity based stock option expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock compensation expense | 143 | 206 | 428 | 454 |
Restricted and performance-based stock awards expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock compensation expense | 1,427 | 1,292 | 3,877 | 3,130 |
Equity based awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock compensation expense | 1,570 | 1,498 | 4,305 | 3,584 |
Liability based stock option expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock compensation expense | $ 5 | $ 7 | $ 16 | $ 21 |
INCOME (LOSS) PER COMMON SHARE - Calculations of Basic and Diluted Loss per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Net income (loss) | $ 13,913 | $ (3,977) | $ (28,164) | $ (13,519) | $ (11,513) | $ (4,867) | $ (18,228) | $ (29,899) |
Weighted-average shares outstanding - Basic (in shares) | 20,935 | 20,429 | 20,835 | 20,494 | ||||
Effect of dilutive securities: | ||||||||
Weighted-average shares outstanding - Basic and Diluted (in shares) | 21,285 | 20,429 | 20,835 | 20,494 | ||||
Basic income (loss) per common share (usd per share) | $ 0.66 | $ (0.66) | $ (0.87) | $ (1.46) | ||||
Diluted income (loss) per common share (usd per share) | $ 0.65 | $ (0.66) | $ (0.87) | $ (1.46) | ||||
Antidilutive securities (in shares) | 1,850 | 2,128 | 2,133 | 2,246 | ||||
Stock options and other stock awards | ||||||||
Effect of dilutive securities: | ||||||||
Stock options and other stock awards (in shares) | 350 | 0 | 0 | 0 |
INCOME (LOSS) PER COMMON SHARE - Additional Information (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities (in shares) | 1,850 | 2,128 | 2,133 | 2,246 |
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 3,711 | $ 15,066 | $ 3,013 | $ 6,813 | |
Effective income tax benefit rate on US and foreign earnings, percent | 21.20% | 857.50% | (20.30%) | (30.00%) | |
Goodwill and other impairments | $ 19,100 | $ 42,990 |
BUSINESS SEGMENTS - Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
segment
| |
Segment Reporting [Abstract] | |
Number of reportable business segment | 2 |
BUSINESS SEGMENTS - Segment Reporting Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Segment Reporting Information [Line Items] | |||||
Net sales | $ 224,750 | $ 215,502 | $ 519,960 | $ 507,964 | |
Income (loss) from operations | 21,506 | 6,929 | 557 | (7,903) | |
Depreciation and amortization | 6,090 | 6,122 | 18,385 | 18,771 | |
Assets | 831,846 | 831,846 | $ 770,023 | ||
U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 193,432 | 179,565 | 447,087 | 417,657 | |
Operating segments | U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 690,297 | 690,297 | 639,047 | ||
Operating segments | International | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 98,916 | 98,916 | 117,935 | ||
Unallocated corporate expenses | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) from operations | (6,252) | (4,501) | (15,922) | (15,126) | |
Assets | 42,633 | 42,633 | $ 13,041 | ||
U.S. | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 201,539 | 195,199 | 463,338 | 445,329 | |
Income (loss) from operations | 29,111 | 24,328 | 28,383 | 24,036 | |
Depreciation and amortization | 4,926 | 5,094 | 14,922 | 15,575 | |
International | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 23,211 | 20,303 | 56,622 | 62,635 | |
Income (loss) from operations | (1,353) | (12,898) | (11,904) | (16,813) | |
Depreciation and amortization | $ 1,164 | $ 1,028 | $ 3,463 | $ 3,196 |
CONTINGENCIES - Additional Information (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
tablewareCollection
| |
Commitments and Contingencies Disclosure [Line Items] | |
Number of tableware collections | tablewareCollection | 7 |
Number of remaining tableware collections | tablewareCollection | 29 |
Period of investigation | 5 years |
Estimated Duties That Could Be Owed | |
Commitments and Contingencies Disclosure [Line Items] | |
Reasonable possible loss | $ 3.1 |
Negligence | |
Commitments and Contingencies Disclosure [Line Items] | |
Reasonable possible loss | 6.2 |
Gross Negligence | |
Commitments and Contingencies Disclosure [Line Items] | |
Reasonable possible loss | 12.4 |
Capital cost | San German Ground Water Contamination Site, Initial Operable Unit | |
Commitments and Contingencies Disclosure [Line Items] | |
Remedial alternative, EPA preferred remedy | 7.3 |
Capital cost | San German Ground Water Contamination Site, Second Operable Unit | |
Commitments and Contingencies Disclosure [Line Items] | |
Remedial alternative, EPA preferred remedy | $ 17.3 |
OTHER - Cash Dividends Declared (Details) - $ / shares |
9 Months Ended | ||||
---|---|---|---|---|---|
Aug. 04, 2020 |
Jun. 25, 2020 |
Mar. 10, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Dividend per share of common stock (usd per share) | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.1275 | $ 0.1275 |
OTHER - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 03, 2020 |
Aug. 17, 2020 |
Aug. 04, 2020 |
Jun. 25, 2020 |
Mar. 10, 2020 |
Feb. 14, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||||||||
Other [Line Items] | ||||||||||||||||||||||
Cash dividends paid | $ 1,862 | $ 2,693 | ||||||||||||||||||||
Dividend per share, declared (usd per share) | $ 0.0425 | $ 0.0425 | $ 0.0425 | $ 0.1275 | $ 0.1275 | |||||||||||||||||
Dividends accrued | [1] | $ 942 | $ 913 | $ 932 | $ 937 | $ 896 | $ 898 | |||||||||||||||
Subsequent Event | ||||||||||||||||||||||
Other [Line Items] | ||||||||||||||||||||||
Dividend per share, declared (usd per share) | $ 0.0425 | |||||||||||||||||||||
Dividend Paid | ||||||||||||||||||||||
Other [Line Items] | ||||||||||||||||||||||
Cash dividends paid | $ 900 | $ 900 | ||||||||||||||||||||
Retained Earnings | ||||||||||||||||||||||
Other [Line Items] | ||||||||||||||||||||||
Dividends accrued | $ 942 | [1] | $ 913 | [1] | $ 932 | [1] | $ 937 | [1] | $ 896 | [1] | $ 898 | [1] | $ 2,800 | |||||||||
|
OTHER - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 11,750 | $ 13,876 |
Cash paid for taxes (net of refunds) | (85) | 938 |
Non-cash investing activities: | ||
Translation loss adjustment | $ (5,062) | $ (4,032) |
OTHER - Components of Accumulated Other Comprehensive Loss, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of year | $ 194,871 | $ 263,104 | $ 236,317 | $ 279,493 |
Balance at end of year | 211,793 | 247,925 | 211,793 | 247,925 |
Accumulated translation adjustment: | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of year | (40,991) | (35,374) | (34,019) | (33,727) |
Other comprehensive income, before reclassifications | 2,145 | (2,385) | (5,062) | (4,032) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 235 | 0 |
Other comprehensive income (loss), net of taxes | 2,145 | (2,385) | (4,827) | (4,032) |
Balance at end of year | (38,846) | (37,759) | (38,846) | (37,759) |
Accumulated deferred (losses) gains on cash flow hedges: | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of year | (1,612) | 1,739 | 1,164 | 161 |
Other comprehensive income, before reclassifications | (89) | 294 | (3,224) | 1,895 |
Amounts reclassified from accumulated other comprehensive loss | 305 | (143) | 664 | (166) |
Other comprehensive income (loss), net of taxes | 216 | 151 | (2,560) | 1,729 |
Balance at end of year | (1,396) | 1,890 | (1,396) | 1,890 |
Income tax expense (benefit) | 73 | 36 | (856) | 531 |
Accumulated effect of retirement benefit obligations: | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of year | (1,561) | (1,025) | (1,600) | (1,050) |
Amounts reclassified from accumulated other comprehensive loss | 20 | 13 | 59 | 38 |
Balance at end of year | (1,541) | (1,012) | (1,541) | (1,012) |
Accumulated other comprehensive loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of year | (44,164) | (34,660) | (34,455) | (34,616) |
Balance at end of year | $ (41,783) | $ (36,881) | $ (41,783) | $ (36,881) |
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