MYERS INDUSTRIES INC, 10-K filed on 3/9/2018
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2017
Feb. 28, 2018
Jun. 30, 2017
Document And Entity Information [Abstract]
 
 
 
Entity Registrant Name
MYERS INDUSTRIES INC 
 
 
Entity Central Index Key
0000069488 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2017 
 
 
Amendment Flag
false 
 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus
FY 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
No 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Accelerated Filer 
 
 
Entity Public Float
 
 
$ 538,844,114 
Entity Common Stock, Shares Outstanding
 
30,509,220 
 
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Statement [Abstract]
 
 
 
Net sales
$ 547,043 
$ 534,379 
$ 571,020 
Cost of sales
389,590 
372,481 
395,158 
Gross profit
157,453 
161,898 
175,862 
Selling expenses
56,614 
58,782 
58,456 
General and administrative expenses
78,889 
73,797 
82,333 
Operating expenses excluding impairment charges
135,503 
132,579 
140,789 
(Gain) loss on disposal of fixed assets
(3,482)
628 
556 
Impairment charges
544 
1,329 
Operating income
24,888 
27,362 
34,517 
Interest
 
 
 
Income
(1,361)
(1,262)
(1,067)
Expense
8,653 
9,905 
10,076 
Interest expense, net
7,292 
8,643 
9,009 
Loss on extinguishment of debt
1,888 
Income from continuing operations before income taxes
15,708 
18,719 
25,508 
Income tax expense
4,864 
7,395 
8,037 
Income from continuing operations
10,844 
11,324 
17,471 
Income (loss) from discontinued operations, net of income tax
(20,733)
(10,267)
291 
Net income (loss)
$ (9,889)
$ 1,057 
$ 17,762 
Income per common share from continuing operations:
 
 
 
Basic
$ 0.36 
$ 0.38 
$ 0.57 
Diluted
$ 0.35 
$ 0.38 
$ 0.56 
Income (loss) per common share from discontinued operations:
 
 
 
Basic
$ (0.69)
$ (0.35)
$ 0.01 
Diluted
$ (0.68)
$ (0.35)
$ 0.01 
Net income (loss) per common share:
 
 
 
Basic
$ (0.33)
$ 0.03 
$ 0.58 
Diluted
$ (0.33)
$ 0.03 
$ 0.57 
Dividends declared per share
$ 0.54 
$ 0.54 
$ 0.54 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
 
 
 
Net income (loss)
$ (9,889)
$ 1,057 
$ 17,762 
Other comprehensive income (loss)
 
 
 
Foreign currency translation adjustment
2,391 
5,105 
(27,622)
Reclassification adjustment for foreign currency translation included in net income (loss)
17,201 
 
 
Pension liability, net of tax expense (benefit) of $14 in 2017, ($95) in 2016, and $113 in 2015
41 
(169)
200 
Total other comprehensive income (loss)
19,633 
4,936 
(27,422)
Comprehensive income (loss)
$ 9,744 
$ 5,993 
$ (9,660)
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
 
 
 
Tax expense (benefit) on pension liability
$ 14 
$ (95)
$ 113 
Consolidated Statements of Financial Position (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Current Assets
 
 
Cash
$ 2,520 
$ 2,404 
Restricted cash
8,659 
8,635 
Accounts receivable, less allowances of $1,313 and $1,497, respectively
76,650 
64,282 
Income tax receivable
12,954 
2,208 
Inventories, net
47,025 
44,785 
Prepaid expenses and other current assets
2,204 
4,639 
Current assets of discontinued operations
14,198 
Total Current Assets
150,012 
141,151 
Other Assets
 
 
Property, plant, and equipment, net
83,904 
106,266 
Goodwill
59,971 
59,219 
Intangible assets, net
39,049 
46,868 
Deferred income taxes
120 
83 
Notes receivable
18,737 
18,275 
Other
4,149 
3,313 
Noncurrent assets of discontinued operations
6,509 
Total Assets
355,942 
381,684 
Current Liabilities
 
 
Accounts payable
63,581 
47,573 
Accrued expenses
 
 
Employee compensation
15,544 
11,276 
Taxes, other than income taxes
1,664 
1,600 
Accrued interest
2,392 
3,202 
Other current liabilities
15,472 
12,911 
Current liabilities of discontinued operations
2,750 
Total Current Liabilities
98,653 
79,312 
Long-term debt
151,036 
189,522 
Other liabilities
8,236 
9,203 
Deferred income taxes
4,265 
10,365 
Noncurrent liabilities of discontinued operations
249 
Shareholders’ Equity
 
 
Serial Preferred Shares (authorized 1,000,000 shares; none issued and outstanding)
Common Shares, without par value (authorized 60,000,000 shares; outstanding 30,495,737 and 30,019,561; net of treasury shares of 7,456,720 and 7,932,896, respectively)
18,547 
18,234 
Additional paid-in capital
209,253 
202,033 
Accumulated other comprehensive loss
(14,541)
(34,174)
Retained deficit
(119,507)
(93,060)
Total Shareholders’ Equity
93,752 
93,033 
Total Liabilities and Shareholders’ Equity
$ 355,942 
$ 381,684 
Consolidated Statements of Financial Position (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Current Assets
 
 
Allowance for Doubtful Accounts Receivable, Current
$ 1,313 
$ 1,497 
Shareholders’ Equity
 
 
Preferred Shares, shares authorized (in shares)
1,000,000 
1,000,000 
Preferred Shares, shares issued (in shares)
Preferred Shares, shares outstanding (in shares)
Common Shares, shares authorized (in shares)
60,000,000 
60,000,000 
Common Shares, shares outstanding (in shares)
30,495,737 
30,019,561 
Common shares, treasury (in shares)
7,456,720 
7,932,896 
Consolidated Statements of Shareholders' Equity (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Retained Deficit [Member]
Beginning balance at Dec. 31, 2014
$ 146,571 
$ 18,855 
$ 218,394 
$ (11,688)
$ (78,990)
Beginning balance, shares at Dec. 31, 2014
 
31,162,962 
 
 
 
Stockholders' Equity [Roll Forward]
 
 
 
 
 
Net income (loss)
17,762 
17,762 
Issuances under option plans
2,775 
162 
2,613 
Issuances under option plans, shares
239,508 
239,908 
 
 
 
Dividend reinvestment plan
149 
144 
Dividend reinvestment plan, shares
 
8,968 
 
 
 
Restricted stock vested
78 
(78)
Restricted stock vested, shares
 
120,723 
 
 
 
Restricted stock and stock option grants
5,277 
5,277 
Restricted stock and stock option grants (shares)
 
 
 
 
Tax benefit from options
38 
38 
Foreign currency translation adjustment
(27,622)
(27,622)
Repurchase of common stock
(30,023)
(1,193)
(28,830)
Repurchase of common stock (shares)
 
(1,992,379)
 
 
 
Stock contributions
148 
143 
Stock contributions, shares
 
8,250 
 
 
 
Shares withheld for employee taxes on equity awards
(975)
(17)
(958)
Shares withheld for employee taxes on equity awards, shares
 
(26,866)
 
 
 
Declared dividends
(16,597)
(16,597)
Pension liability, net of tax
200 
200 
Ending balance at Dec. 31, 2015
97,703 
17,895 
196,743 
(39,110)
(77,825)
Ending balance, shares at Dec. 31, 2015
 
29,521,566 
 
 
 
Stockholders' Equity [Roll Forward]
 
 
 
 
 
Net income (loss)
1,057 
1,057 
Issuances under option plans
3,235 
205 
3,030 
Issuances under option plans, shares
334,836 
374,958 
 
 
 
Dividend reinvestment plan
139 
133 
Dividend reinvestment plan, shares
 
10,520 
 
 
 
Restricted stock vested
104 
(104)
Restricted stock vested, shares
 
169,929 
 
 
 
Stock compensation expense
3,357 
24 
3,333 
Tax benefit from options
64 
64 
Foreign currency translation adjustment
5,105 
5,105 
Shares withheld for employee taxes on equity awards
(1,166)
(1,166)
Shares withheld for employee taxes on equity awards, shares
 
(57,412)
 
 
 
Declared dividends
(16,292)
(16,292)
Pension liability, net of tax
(169)
(169)
Ending balance at Dec. 31, 2016
93,033 
18,234 
202,033 
(34,174)
(93,060)
Ending balance, shares at Dec. 31, 2016
30,019,561 
30,019,561 
 
 
 
Stockholders' Equity [Roll Forward]
 
 
 
 
 
Net income (loss)
(9,889)
(9,889)
Issuances under option plans
4,396 
229 
4,167 
Issuances under option plans, shares
375,292 
375,292 
 
 
 
Dividend reinvestment plan
131 
126 
Dividend reinvestment plan, shares
 
7,625 
 
 
 
Restricted stock vested
79 
(79)
Restricted stock vested, shares
 
130,036 
 
 
 
Stock compensation expense
3,626 
3,626 
Foreign currency translation adjustment
2,391 
2,391 
Shares withheld for employee taxes on equity awards
(620)
(620)
Shares withheld for employee taxes on equity awards, shares
 
(36,777)
 
 
 
Declared dividends
(16,558)
(16,558)
Pension liability, net of tax
41 
41 
Reclassification adjustment for foreign currency translation included in net income (loss)
17,201 
17,201 
Ending balance at Dec. 31, 2017
$ 93,752 
$ 18,547 
$ 209,253 
$ (14,541)
$ (119,507)
Ending balance, shares at Dec. 31, 2017
30,495,737 
30,495,737 
 
 
 
Consolidated Statement of Shareholders' Equity (Parenthetical) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dividends declared per share (in dollars per share)
$ 0.54 
$ 0.54 
$ 0.54 
Tax expense (benefit) on pension liability
$ 14 
$ (95)
$ 113 
Retained Deficit [Member]
 
 
 
Dividends declared per share (in dollars per share)
$ 0.54 
$ 0.54 
$ 0.54 
Accumulated Other Comprehensive Income (Loss) [Member]
 
 
 
Tax expense (benefit) on pension liability
$ 14 
$ 95 
$ 113 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash Flows From Operating Activities
 
 
 
Net income (loss)
$ (9,889)
$ 1,057 
$ 17,762 
Income (loss) from discontinued operations, net of income taxes
(20,733)
(10,267)
291 
Income from continuing operations
10,844 
11,324 
17,471 
Adjustments to reconcile income from continuing operations to net cash provided by (used for) operating activities
 
 
 
Depreciation
19,952 
22,049 
22,418 
Amortization
8,886 
9,743 
9,912 
Accelerated depreciation associated with restructuring activities
1,993 
Non-cash stock-based compensation expense
3,626 
3,357 
4,934 
(Gain) loss on disposal of fixed assets
(3,482)
628 
556 
Loss on extinguishment of debt
1,888 
Deferred taxes
(5,663)
555 
211 
Accrued interest income on note receivable
(1,360)
(1,268)
(1,060)
Impairment charges
544 
1,329 
Other
256 
155 
104 
Payments on performance based compensation
(1,010)
(1,794)
(1,303)
Other long-term liabilities
723 
(592)
1,936 
Cash flows provided by (used for) working capital
 
 
 
Accounts receivable
(6,757)
6,411 
(5,032)
Inventories
(1,876)
8,603 
3,666 
Prepaid expenses and other current assets
2,209 
1,047 
147 
Accounts payable and accrued expenses
18,299 
(27,594)
(10,588)
Net cash provided by (used for) operating activities - continuing operations
49,072 
33,953 
43,372 
Net cash provided by (used for) operating activities - discontinued operations
(4,633)
(232)
(5,640)
Net cash provided by (used for) operating activities
44,439 
33,721 
37,732 
Cash Flows From Investing Activities
 
 
 
Capital expenditures
(5,814)
(12,489)
(21,787)
Proceeds from sale of property, plant and equipment
11,058 
450 
1,261 
Proceeds (payments) related to sale of business
(4,034)
70,762 
Net cash provided by (used for) investing activities - continuing operations
5,244 
(16,073)
50,236 
Net cash provided by (used for) investing activities - discontinued operations
(1,107)
(16)
(2,521)
Net cash provided by (used for) investing activities
4,137 
(16,089)
47,715 
Cash Flows From Financing Activities
 
 
 
Net borrowings (repayments) on credit facility
(16,474)
(3,804)
(37,110)
Repayments of senior unsecured notes
(23,798)
Cash dividends paid
(16,341)
(16,221)
(16,675)
Proceeds from issuance of common stock
4,527 
3,374 
2,924 
Excess tax benefit from stock-based compensation
64 
38 
Repurchase of common stock
(30,023)
Shares withheld for employee taxes on equity awards
(620)
(1,166)
(975)
Deferred financing costs
(1,030)
Net cash provided by (used for) financing activities - continuing operations
(53,736)
(17,753)
(81,821)
Net cash provided by (used for) financing activities - discontinued operations
Net cash provided by (used for) financing activities
(53,736)
(17,753)
(81,821)
Foreign exchange rate effect on cash
(208)
665 
(958)
Less: Net increase (decrease) in cash classified within discontinued operations
(5,484)
493 
3,992 
Net increase (decrease) in cash
116 
51 
(1,324)
Cash at January 1
2,404 
2,353 
3,677 
Cash at December 31
2,520 
2,404 
2,353 
Supplemental Disclosures of Cash Flow Information
 
 
 
Interest
8,913 
8,917 
10,131 
Income taxes
$ 5,651 
$ 8,136 
$ 10,136 
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies

1.  Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. All subsidiaries that are not wholly owned and are not included in the consolidated operating results of the Company are immaterial investments which have been accounted for under the equity or cost method. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimates.

During the fourth quarter of 2017, the Company completed the sale of certain subsidiaries in Brazil. As further discussed in Note 4, the results of operations and cash flows of these subsidiaries have been classified as discontinued operations in the consolidated financial statements for all periods presented.

Accounting Standards Adopted

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting, which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The Company adopted this ASU effective January 1, 2017 and elected to recognize forfeitures as they occur. The cash flow classification requirements of ASU 2016-09 were applied prospectively. The adoption of this ASU did not have a material impact on the Company’s results of operations, cash flows or financial position.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments, which clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows.  The new guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows.  This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted.  The Company early adopted this standard in the fourth quarter of 2017. The adoption of this standard did not have a significant impact on the Company’s consolidated financial statements.

Accounting Standards Not Yet Adopted

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220). This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The new standard also requires certain disclosures about stranded tax effects. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (as further discussed in Note 11) is recognized. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.  This ASU requires that an employer report the service cost component in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period.  The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented.  The ASU also allows only the service cost component to be eligible for capitalization when applicable. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods.  The ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets.  The Company does not anticipate that adoption of this standard will have a material impact on its consolidated financial statements as the pension plan is frozen.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.  This ASU eliminates Step 2 of the goodwill impairment test and requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019.  The guidance allows for early adoption for impairment testing dates after January 1, 2017.  While the Company has elected not to early adopt this guidance for fiscal year 2017 and will continue to evaluate the timing of adoption, it does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash. This ASU requires that companies include amounts generally described as restricted cash and restricted cash equivalents, along with cash and cash equivalents, when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows.  The ASU should be applied using a retrospective transition method to each period presented and is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. To the extent there are changes in the Company’s restricted cash balances, adoption of this standard will impact the presentation within the statement of cash flows.

In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740). This ASU requires immediate recognition of the income tax consequences of intercompany asset transfers other than inventory. The ASU is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company does not anticipate that adoption of this standard will have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, which introduces new guidance for the accounting for credit losses on instruments.  The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2019 including interim periods within that reporting period, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The new standard is effective for the Company beginning January 1, 2019 and requires a modified retrospective approach. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. Additional disclosures will also be required to help users of financial statements understand the nature, amount, and timing of revenue and cash flows arising from contracts. The new guidance is effective January 1, 2018, with early adoption permitted for January 1, 2017. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented, or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the Consolidated Statements of Shareholders’ Equity. The Company will adopt the new guidance effective January 1, 2018 under the modified retrospective approach. As part of the implementation plan developed, the Company identified its revenue streams and completed its contract review for each of these revenue streams to assess the impact of the new guidance on its consolidated financial statements. This assessment included the potential impact of whether revenue from certain product lines would be required to be recognized over time rather than at a point in time. Based on the results of these reviews, the adoption of this standard will not have a material impact on the timing or measurement of revenue recognition in the Company’s consolidated financial statements. Additionally, the standard requires new disclosures related to revenue, which the Company is in the process of finalizing.

Translation of Foreign Currencies

All asset and liability accounts of consolidated foreign subsidiaries are translated at the current exchange rate as of the end of the accounting period and income statement items are translated monthly at an average currency exchange rate for the period. The resulting translation adjustment is recorded in other comprehensive income (loss) as a separate component of shareholders' equity.

Fair Value Measurement

The Company follows guidance included in Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. The guidance established a common definition for fair value to be applied under U.S. GAAP requiring the use of fair value, established a framework for measuring fair value, and expanded disclosure requirements about such fair value measurements. The guidance did not require any new fair value measurements, but rather applied to all other accounting pronouncements that require or permit fair value measurements. Under ASC 820, the hierarchy that prioritizes the inputs to valuation techniques used to measure fair value is divided into three levels:

 

Level 1:

Unadjusted quoted prices in active markets for identical assets or liabilities.

 

Level 2:

Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly.

 

Level 3:

Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions.

The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments approximate carrying value due to the nature and relative short maturity of these assets and liabilities.

The fair value of debt under the Company’s Loan Agreement, as defined in Note 10, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of the revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements which are considered Level 2 inputs. At December 31, 2017 and 2016, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated at $78.0 million and $98.0 million, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk primarily consist of trade accounts receivable. The concentration of accounts receivable credit risk is generally limited based on the Company’s diversified operations, with customers spread across many industries and countries. The Company’s largest single customer in 2017 accounts for approximately 5% of net sales with no other customer greater than 4%. Outside of the United States, only customers located in Canada, which account for approximately 2.4% of net sales, are significant to the Company’s operations. In addition, management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for doubtful accounts is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. Additionally, the Company also reviews historical trends for collectability in determining an estimate for its allowance for doubtful accounts. If economic circumstances change substantially, estimates of the recoverability of amounts due the Company could be reduced by a material amount. Expense related to bad debts was approximately $0.7 million, $0.8 million and $0.3 million for 2017, 2016 and 2015, respectively, and is recorded within selling expenses in the Consolidated Statement of Operations. Deductions from the allowance for doubtful accounts, net of recoveries, were approximately $0.7 million, $0.4 million and $0.5 million for 2017, 2016 and 2015, respectively.

Inventories

Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 30 percent of our inventories are valued using the LIFO method of determining cost. Cost of other inventories is determined using methods that approximate the FIFO method.

 

Inventories at December 31 consist of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Finished and in-process products

 

$

30,874

 

 

$

31,081

 

Raw materials and supplies

 

 

16,151

 

 

 

13,704

 

 

 

$

47,025

 

 

$

44,785

 

 

If the FIFO method of inventory cost valuation had been used exclusively by the Company, inventories would have been $5.6 million and $4.7 million higher than reported at December 31, 2017 and 2016, respectively. Cost of sales decreased by $0.1 million and less than $0.1 million in 2017 and 2015, respectively, as a result of the liquidation of LIFO inventories. Cost of sales increased by $0.1 million in 2016 as a result of the liquidation of LIFO inventories.

Property, Plant and Equipment

Property, plant and equipment are carried at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization on the basis of the straight-line method over the estimated useful lives of the assets as follows:

 

Buildings

20 to 40 years

Machinery and Equipment

3 to 10 years

Leasehold Improvements

5 to 10 years

 

The Company’s property, plant and equipment by major asset class at December 31 consists of:

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Land

 

$

7,815

 

 

$

8,916

 

Buildings and leasehold improvements

 

 

59,730

 

 

 

65,425

 

Machinery and equipment

 

 

260,880

 

 

 

299,065

 

 

 

 

328,425

 

 

 

373,406

 

Less allowances for depreciation and amortization

 

 

(244,521

)

 

 

(267,140

)

 

 

$

83,904

 

 

$

106,266

 

 

At December 31, 2017 and 2016, the Company had approximately $6.9 million and $6.2 million, respectively, of capitalized software costs included in machinery and equipment. Amortization expense related to capitalized software costs was approximately $1.0 million, $0.6 million and $0.5 million in 2017, 2016 and 2015, respectively.

Long-Lived Assets

The Company reviews its long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Determination of potential impairment related to assets to be held and used is based upon undiscounted future cash flows resulting from the use and ultimate disposition of the asset. For assets held for sale, the amount of potential impairment may be based upon appraisal of the asset, estimated market value of similar assets or estimated cash flow from the disposition of the asset. Refer to Note 2 for discussion of the impairment charges.

Revenue Recognition

The Company recognizes revenues from the sale of products, net of actual and estimated returns, at the point of passage of title and risk of loss, which is generally at time of shipment, and collectability of the fixed or determinable sales price is reasonably assured.

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) and are as follows:

 

 

 

Foreign

Currency

 

 

Defined Benefit

Pension Plans

 

 

Total

 

Balance at January 1, 2015

 

$

(9,825

)

 

$

(1,863

)

 

$

(11,688

)

Other comprehensive income before reclassifications

 

 

(17,131

)

 

 

144

 

 

 

(16,987

)

Amounts reclassified from accumulated other comprehensive income, net of tax of ($32) (1)

 

 

(10,491

)

 

 

56

 

 

 

(10,435

)

Net current-period other comprehensive income (loss)

 

 

(27,622

)

 

 

200

 

 

 

(27,422

)

Balance at December 31, 2015

 

 

(37,447

)

 

 

(1,663

)

 

 

(39,110

)

Other comprehensive income (loss) before reclassifications

 

 

5,105

 

 

 

(222

)

 

 

4,883

 

Amounts reclassified from accumulated other comprehensive income, net of tax of ($30) (1)

 

 

 

 

 

53

 

 

 

53

 

Net current-period other comprehensive income (loss)

 

 

5,105

 

 

 

(169

)

 

 

4,936

 

Balance at December 31, 2016

 

 

(32,342

)

 

 

(1,832

)

 

 

(34,174

)

Other comprehensive income before reclassifications

 

 

2,391

 

 

 

(31

)

 

 

2,360

 

Amounts reclassified from accumulated other comprehensive income, net of tax of ($24) (1) (2)

 

 

17,201

 

 

 

72

 

 

 

17,273

 

Net current-period other comprehensive income (loss)

 

 

19,592

 

 

 

41

 

 

 

19,633

 

Balance at December 31, 2017

 

$

(12,750

)

 

$

(1,791

)

 

$

(14,541

)

 

 

(1)

The accumulated other comprehensive income (loss) components related to defined benefit pension plans are included in the computation of net periodic pension cost. See Note 12, Retirement Plans for additional details.

 

(2)

Cumulative translation adjustment associated with the sale of the Brazil Business, as further discussed in Note 4, was included in the carrying value of assets disposed of.

Shipping and Handling

Costs for shipments to customers are classified as selling expenses for the Company’s manufacturing business and as cost of sales for the Company’s distribution business in the accompanying Consolidated Statements of Operations. The Company incurred costs for shipments to customers of approximately $8.2 million, $8.9 million and $8.5 million in selling expenses for the years ended December 31, 2017, 2016 and 2015, respectively and $6.0 million, $6.1 million, and $6.2 million in cost of sales for the years ended December 31, 2017, 2016 and 2015. All other internal distribution costs are recorded in selling expenses.

Stock Based Compensation

The Company has stock plans that provide for the granting of stock-based compensation to employees and to non-employee directors. Shares issued for option exercises or restricted shares may be either from authorized but unissued shares or treasury shares. The Company records the costs of the plan under the provisions of ASC 718, Compensation — Stock Compensation. For transactions in which the Company obtains employee services in exchange for an award of equity instruments, the Company measures the cost of the services based on the grant date fair value of the award. The Company recognizes the cost over the period during which an employee is required to provide services in exchange for the award, referred to as the requisite service period (usually the vesting period).

 

 

Income Taxes

Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the change is enacted.

The Company evaluates its tax positions in accordance with ASC 740, Income Taxes. ASC 740 provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized under ASC 740. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value. The Company maintains operating cash and reserves for replacement balances in financial institutions which, from time to time, may exceed federally insured limits. The Company periodically assesses the financial condition of these institutions and believes that the risk of loss is minimal.

Cash flows used in investing activities excluded $0.6 million, $0.1 million and $6.6 million of accrued capital expenditures in 2017, 2016 and 2015, respectively.

Impairment Charges
Impairment Charges

2.  Impairment Charges

During the second quarter of 2017, an underutilized building at the Company’s Scarborough, Ontario, Canada location, in the Material Handling Segment, was identified for closure and classified as held for sale as of June 30, 2017. This building was recorded at its fair value, less estimated costs to sell, of $3.2 million (based primarily on a third party offer considered to be a Level 2 input), which resulted in an impairment charge of approximately $0.5 million recognized in the second quarter of 2017. In December 2017, the building was sold for approximately $3.1 million, which resulted in an additional loss on sale of $0.1 million.

During 2016, the Company recorded impairment charges of $1.3 million, primarily related to long-lived assets associated with the exit of a non-strategic product line in the Material Handling Segment.  

Goodwill and Intangible Assets
Goodwill and Intangible Assets

3.  Goodwill and Intangible Assets

The Company tests for impairment of goodwill and indefinite-lived intangible assets on at least an annual basis, unless significant changes in circumstances indicate a potential impairment may have occurred sooner. Such changes in circumstances may include, but are not limited to, significant changes in economic and competitive conditions, the impact of the economic environment on the Company’s customer base or its businesses, or a material negative change in its relationships with significant customers.    

The Company conducted its annual impairment assessment as of October 1 for all of its reporting units, noting no impairment in continuing operations in 2017, 2016 or 2015.      

During the 2017 annual review of goodwill, management performed a qualitative assessment for all of its reporting units. After considering changes to assumptions used in the most recent quantitative annual testing for each reporting unit, including macroeconomic conditions, industry and market considerations, overall financial performance, the magnitude of the excess of fair value over the carrying amount of each reporting unit as determined in the most recent quantitative annual testing, and other factors, management concluded that it was not more likely than not that the fair values of the reporting units were less than their respective carrying values and, therefore, did not perform a quantitative analysis in 2017. A quantitative analysis was performed at October 1, 2016 and 2015.

The change in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 is as follows:

 

 

 

Distribution

 

 

Material

Handling

 

 

Total

 

January 1, 2016

 

$

505

 

 

$

58,382

 

 

$

58,887

 

Foreign currency translation

 

 

 

 

 

332

 

 

 

332

 

December 31, 2016

 

$

505

 

 

$

58,714

 

 

$

59,219

 

Foreign currency translation

 

 

 

 

 

752

 

 

 

752

 

December 31, 2017

 

$

505

 

 

$

59,466

 

 

$

59,971

 

 

Intangible assets other than goodwill primarily consist of trade names, customer relationships, patents, and technology assets established in connection with acquisitions. These intangible assets, other than certain trade names, are amortized over their estimated useful lives. The Company performs an annual impairment assessment for the indefinite lived trade names which had a carrying value of $9,972 and $10,050 at December 31, 2017 and 2016, respectively. In performing this assessment the Company uses an income approach, based primarily on Level 3 inputs, to estimate the fair value of the trade name. The Company records an impairment charge if the carrying value of the trade name exceeds the estimated fair value at the date of assessment.

Intangible assets at December 31, 2017 and 2016 consisted of the following:

 

 

 

 

 

 

 

2017

 

 

2016

 

 

 

Weighted

Average Remaining Useful

Life (years)

 

 

Gross

 

 

Accumulated

Amortization

 

 

Net

 

 

Gross

 

 

Accumulated

Amortization

 

 

Net

 

Trade Names – Indefinite

   Lived

 

 

 

 

 

$

9,972

 

 

$

 

 

$

9,972

 

 

$

10,050

 

 

$

 

 

$

10,050

 

Trade Names

 

 

7.5

 

 

 

80

 

 

 

(40

)

 

 

40

 

 

 

80

 

 

 

(34

)

 

 

46

 

Customer Relationships

 

 

2.0

 

 

 

41,043

 

 

 

(27,396

)

 

 

13,647

 

 

 

39,774

 

 

 

(21,127

)

 

 

18,647

 

Technology

 

 

6.2

 

 

 

24,980

 

 

 

(9,590

)

 

 

15,390

 

 

 

24,980

 

 

 

(7,037

)

 

 

17,943

 

Patents

 

 

0.0

 

 

 

11,730

 

 

 

(11,730

)

 

 

 

 

 

11,730

 

 

 

(11,548

)

 

 

182

 

 

 

 

 

 

 

$

87,805

 

 

$

(48,756

)

 

$

39,049

 

 

$

86,614

 

 

$

(39,746

)

 

$

46,868

 

 

Intangible amortization expense was $8,378, $9,277 and $9,447 in 2017, 2016 and 2015, respectively. Estimated annual amortization expense for intangible assets with finite lives for the next five years is: $8,198 in 2018; $7,824 in 2019; $4,946 in 2020; $2,278 in 2021 and $2,278 in 2022.

 

Discontinued Operations
Discontinued Operations

4.  Discontinued Operations

On December 18, 2017, the Company, collectively with its wholly owned subsidiary, Myers Holdings Brasil, Ltda. (“Holdings”), completed the sale of its subsidiaries, Myers do Brasil Embalagens Plasticas Ltda. and Plasticos Novel do Nordeste Ltda. (collectively, the “Brazil Business”), to Novel Holdings – Eireli (“Buyer”), an entity controlled by a member of the Brazil Business’ management team.  The divestiture of the Brazil Business will allow the Company to focus resources on its core businesses and additional growth opportunities. The Brazil Business is a leading designer and manufacturer of reusable plastic shipping containers, plastic pallets, crates and totes used for closed-loop shipping and storage in Brazil’s automotive, distribution, food, beverage and agriculture industries. The sale of the Brazil Business included manufacturing facilities and offices located in Lauro de Freitas City, Bahia, Brazil; Ibipora, Parana, Brazil; and Jaguarinuna, Brazil. The Brazil Business was part of the Company’s Material Handling Segment.

Pursuant to the terms of the Quota Purchase Agreement by and among the Company, Holdings and Buyer (the “Purchase Agreement”), the Buyer paid a purchase price of one U.S. Dollar to the Company and has assumed all liabilities and obligations of the Brazil Business, whether arising prior to or after the closing of the transaction. There are no additional amounts due, or to be settled, under the terms of the Purchase Agreement with the Buyer. The Company recorded a loss on the sale of the Brazil Business during the fourth quarter of 2017 of $35.0 million, which included $1.2 million of cash held by the Brazil Business and approximately $0.3 million of costs to sell. In addition, the Company recorded a U.S. tax benefit of approximately $15 million as a result of a worthless stock deduction related to the Company’s investment in the Brazil Business.

The Company has agreed to be the guarantor under a factoring arrangement between the Buyer and Banco Alfa de Investimento S.A. until December 31, 2019 for up to $7 million, in the event the Buyer is unable to meet its obligations under this arrangement. The Company also holds a first lien against certain machinery and equipment, exercisable only upon default by the Buyer under the guaranty. Based on the nature of the guaranty, as well as the existence of the lien, the Company believes the fair value of the guaranty is immaterial (based primarily on Level 3 inputs), and thus has recorded no liability related to this guaranty in the Consolidated Statement of Financial Position. This guaranty also creates a variable interest to the Company in the Brazil Business. Based on the terms of the transaction and the fact that the Company has no management involvement or voting interests in the Brazil Business following the sale, the Company does not have any power to direct the significant activities of the Brazil Business, and is thus not the primary beneficiary.

During the second quarter of 2014, the Company’s Board of Directors approved the commencement of the sale process to divest its Lawn and Garden business to allow it to focus resources on its core growth platforms. The business was sold February 17, 2015 to an entity controlled by Wingate Partners V, L.P. (“L&G Buyer”), a private equity firm, for $110.0 million, subject to a working capital adjustment. The terms of the agreement include a $90.0 million cash payment, promissory notes totaling $20.0 million that mature in August 2020, a 6% interest rate and approximately $8.6 million placed in escrow that was due to be settled by August 2016, but has been extended until certain indemnification claims are resolved, as discussed in Note 9. The fair value of the notes at the date of sale was $17.8 million. The carrying value of the notes as of December 31, 2017 and 2016, was $18.7 million and $18.3 million, respectively, which represents the fair value at date of sale plus accretion and is included in Notes Receivable in the accompanying Consolidated Statements of Financial Position. The fair value of the notes receivable was calculated using Level 2 inputs as defined in Note 1. Interest income on the notes receivable was $1.3 million, $1.3 million, and $1.0 million during the years ended December 31, 2017, 2016 and 2015 and was recognized based on the stated interest rate above. The final working capital adjustment resulted in a cash payment to the buyer of approximately $4.0 million in 2016. The total gain on the sale of the Lawn and Garden business in 2015 was $0.5 million, net of tax, and is included in income (loss) from discontinued operations in the accompanying Consolidated Statements of Operations.

On June 20, 2014, the Company completed the sale of the assets and associated liabilities of its wholly-owned subsidiaries WEK Industries, Inc. and Whiteridge Plastics LLC (collectively “WEK”) for approximately $20.7 million, which includes a working capital adjustment of approximately $0.8 million. Of the total proceeds from the sale of WEK, approximately $1.0 million was held in escrow until it was received in December 2015. The Company recorded a gain on the sale of WEK in 2014 of approximately $3.0 million, net of tax of $1.6 million, which was included in income (loss) from discontinued operations in the Consolidated Statements of Operations.

Summarized selected financial information for Brazil Business, Lawn and Garden business and WEK for the years ended December 31, 2017, 2016 and 2015 are presented in the following table:

 

 

 

 

For the Year Ended December 31,

 

 

 

 

2017*

 

 

2016

 

 

2015**

 

Net sales

 

 

$

29,976

 

 

$

23,683

 

 

$

59,853

 

Cost of sales

 

 

 

25,359

 

 

 

20,941

 

 

 

50,772

 

Selling, general, and administrative

 

 

 

6,748

 

 

 

5,438

 

 

 

13,898

 

(Gain) loss on disposal of assets

 

 

 

(32

)

 

 

226

 

 

 

62

 

Impairment charges

 

 

 

 

 

 

8,545

 

 

 

 

Interest income, net

 

 

 

(286

)

 

 

(469

)

 

 

(10

)

Gain (loss) on the disposal of the discontinued operations

 

 

 

(34,956

)

 

 

 

 

 

1,873

 

Loss from discontinued operations before income tax

 

 

 

(36,769

)

 

 

(10,998

)

 

 

(2,996

)

Income tax benefit

 

 

 

(16,036

)

 

 

(731

)

 

 

(3,287

)

Income (loss) from discontinued operations, net of income tax

 

 

$

(20,733

)

 

$

(10,267

)

 

$

291

 

*

Includes Brazil Business operating results through December 18, 2017.

**

Includes Lawn and Garden operating results through February 17, 2015.

 


The assets and liabilities of discontinued operations are stated separately as of December 31, 2016 in the Consolidated Statement of Financial Position and are comprised of the following items:

 

 

 

December 31, 2016

 

Cash and cash equivalents

 

$

5,484

 

Accounts receivable, net

 

 

7,328

 

Inventories

 

 

1,238

 

Prepaid expenses and other current assets

 

 

148

 

Total current assets

 

 

14,198

 

 

 

 

 

 

Intangible assets, net

 

 

1,126

 

Deferred income taxes

 

 

134

 

Property, plant and equipment, net

 

 

5,215

 

Other

 

 

34

 

Total noncurrent assets

 

 

6,509

 

Total assets of the disposal group classified as discontinued operations

 

$

20,707

 

 

 

 

 

 

Accounts payable

 

$

1,415

 

Accrued expenses

 

 

1,335

 

Total current liabilities

 

 

2,750

 

 

 

 

 

 

Deferred income taxes

 

 

249

 

Total noncurrent liabilities

 

 

249

 

Total liabilities of the disposal group classified as discontinued operations

 

$

2,999

 

 

Net Income (Loss) Per Common Share
Net Income (Loss) Per Common Share

 

5.  Net Income (Loss) Per Common Share

Net income (loss) per common share, as shown on the accompanying Consolidated Statements of Operations, is determined on the basis of the weighted average number of common shares outstanding during the periods as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Weighted average common shares outstanding basic

 

 

30,222,289

 

 

 

29,750,378

 

 

 

30,616,485

 

Dilutive effect of stock options and restricted stock

 

 

340,357

 

 

 

217,534

 

 

 

327,208

 

Weighted average common shares outstanding diluted

 

 

30,562,646

 

 

 

29,967,912

 

 

 

30,943,693

 

 

Options to purchase 242,500, 551,761 and 463,200 shares of common stock that were outstanding at December 31, 2017, 2016 and 2015, respectively, were not included in the computation of diluted earnings per share as the exercise prices of these options was greater than the average market price of common shares, and were therefore anti-dilutive.

Restructuring
Restructuring

6.  Restructuring

The charges related to various restructuring programs implemented by the Company are included in cost of sales and selling, general and administrative (“SG&A”) expenses depending on the type of cost incurred. The restructuring charges recognized in the years ended 2017, 2016 and 2015 are presented in the following table.  

 

 

 

 

2017

 

 

2016

 

 

2015

 

Segment

 

 

Cost of

sales

 

 

SG&A

 

 

Total

 

 

Cost of

sales

 

 

SG&A

 

 

Total

 

 

Cost of

sales

 

 

SG&A

 

 

Total

 

Distribution

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

124

 

 

$

124

 

Material Handling

 

 

 

7,389

 

 

 

164

 

 

 

7,553

 

 

 

 

 

 

 

 

 

 

 

 

1,340

 

 

 

912

 

 

 

2,252

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35

 

 

 

35

 

Total

 

 

$

7,389

 

 

$

164

 

 

$

7,553

 

 

$

 

 

$

 

 

$

 

 

$

1,340

 

 

$

1,071

 

 

$

2,411

 

 

On March 9, 2017, the Company announced a restructuring plan (the “Plan”) to improve the Company’s organizational structure and operational efficiency within the Material Handling Segment, which related primarily to anticipated facility shutdowns and associated activities.  Total restructuring costs expected to be incurred are approximately $7.6 million, which includes employee severance and other employee-related costs of approximately $3.1 million, $2.5 million related to equipment relocation and facility shut down costs and non-cash charges, primarily accelerated depreciation charges on property, plant and equipment, of approximately $2.0 million.  All actions under the Plan were substantially completed by the end of the year as further described below.

During 2017, the Company incurred restructuring charges of $5.5 million related to closing a manufacturing plant in Bluffton, Indiana. In the third quarter of 2017, the Bluffton facility and certain related equipment were sold for approximately $6.0 million, which resulted in a gain of $2.6 million. Additional gains of $1.5 million for the year ended December 31, 2017 were recognized on other asset dispositions in connection with closing this plant.  

In the second quarter of 2017, the Company finalized the specific actions to be taken under the Plan to reduce headcount in its Scarborough, Ontario, Canada location.  These actions resulted in the recognition of $1.6 million of severance and related costs for the year ended December 31, 2017.

During 2017, the Company recognized $0.5 million of restructuring charges related to the planned closure of a manufacturing plant in Sandusky, Ohio, which is expected to take place in the first quarter of 2018.

 

The table below summarizes restructuring activity for the year ended December 31, 2017:

 

 

 

Employee Reduction

 

 

Accelerated Depreciation

 

 

Other Exit Costs

 

 

Total

 

Balance at January 1, 2017

 

$

 

 

$

 

 

$

 

 

$

 

Charges to expense

 

 

3,022

 

 

 

1,993

 

 

 

2,538

 

 

 

7,553

 

Cash payments

 

 

(1,924

)

 

 

 

 

 

(2,448

)

 

 

(4,372

)

Non-cash utilization

 

 

 

 

 

(1,993

)

 

 

 

 

 

(1,993

)

Balance at December 31, 2017

 

$

1,098

 

 

$

 

 

$

90

 

 

$

1,188

 

 

In addition to the restructuring costs noted above, the Company has also incurred other associated costs of the Plan of $1.1 million for the year ended December 31, 2017, of which $0.1 million is included in cost of sales and $1.0 is included in general and administrative expenses in the accompanying Consolidated Statements of Operations, and are primarily related to third party consulting costs.  

 

In 2015, the Material Handling Segment consolidated two manufacturing plants, streamlined Brazilian operations, closed a Canadian branch operation and sold a product line. The Company recorded $2.3 million of restructuring cost for these initiatives, primarily related to severance and moving expenses for equipment and inventory.

Other Current Liabilities
Other Current Liabilities

7.  Other Current Liabilities

As of December 31, 2017 and 2016, the balance in other current liabilities is comprised of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Deposits and amounts due to customers

 

$

3,102

 

 

$

2,562

 

Dividends payable

 

 

4,478

 

 

 

4,260

 

Accrued litigation and professional fees

 

 

417

 

 

 

452

 

Current portion of environmental reserves

 

 

1,322

 

 

 

605

 

Other accrued expenses

 

 

6,153

 

 

 

5,032

 

 

 

$

15,472

 

 

$

12,911

 

 

Stock Compensation
Stock Compensation

8.  Stock Compensation

Subject to shareholder approval, which was received on April 26, 2017, the Board of Directors approved the Company’s Amended and Restated 2017 Incentive Stock Plan (the “2017 Plan”) on March 2, 2017. The 2017 Plan authorizes the Compensation Committee of the Board of Directors to issue up to 5,126,950 shares of various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards to key employees and directors. Options granted and outstanding vest over the requisite service period and expire ten years from the date of grant.

The following tables summarize stock option activity in the past three years:

Options granted in 2017, 2016 and 2015 were as follows:

 

Year

 

Options

 

 

Exercise

Price

 

2017

 

 

397,759

 

 

$

14.30

 

2016

 

 

271,350

 

 

$

11.62

 

2015

 

 

208,200

 

 

$

18.67

 

 

Options exercised in 2017, 2016 and 2015 were as follows:

 

Year

 

Options

 

 

Exercise

Price

2017

 

 

375,292

 

 

$9.97 to $20.93

2016

 

 

334,836

 

 

$9.00 to $14.77

2015

 

 

239,508

 

 

$9.97 to $17.02

 

In addition, options totaling 218,130, 162,565 and 71,567 expired or were forfeited during the years ended December 31, 2017, 2016 and 2015, respectively.

Options outstanding and exercisable at December 31, 2017, 2016 and 2015 were as follows:

 

Year

 

Outstanding

 

 

Range of Exercise

Prices

 

Exercisable

 

 

Weighted Average

Exercise Price

 

2017

 

 

988,167

 

 

$9.97 to $20.93

 

 

539,993

 

 

$

16.23

 

2016

 

 

1,183,830

 

 

$9.97 to $20.93

 

 

934,898

 

 

$

14.88

 

2015

 

 

1,409,881

 

 

$9.00 to $20.93

 

 

1,231,544

 

 

$

13.47

 

 

The fair value of options granted is estimated using an option pricing model based on the assumptions set forth in the following table. The Company uses historical data to estimate employee exercise and departure behavior. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and through the expected term. The dividend yield rate is based on the Company’s historical dividend yield. The expected volatility is derived from historical volatility of the Company’s shares and those of similar companies measured against the market as a whole. In 2017, 2016 and 2015, the Company used the binomial lattice option pricing model based on the assumptions set forth in the following table.

 

 

 

2017

 

 

2016

 

 

2015

 

Risk free interest rate

 

 

2.50

%

 

 

1.80

%

 

 

2.10

%

Expected dividend yield

 

 

3.80

%

 

 

4.60

%

 

 

2.90

%

Expected life of award (years)

 

 

4.10

 

 

8.00

 

 

 

8.00

 

Expected volatility

 

 

50.00

%

 

 

50.00

%

 

 

50.00

%

Fair value per option

 

$

4.47

 

 

$

3.45

 

 

$

6.03

 

 

The following table provides a summary of stock option activity for the period ended December 31, 2017:

 

 

 

Shares

 

 

Average

Exercise

Price

 

 

Weighted

Average

Life (in Years)

 

Outstanding at December 31, 2016

 

 

1,183,830

 

 

$

14.50

 

 

 

 

 

Options granted

 

 

397,759

 

 

 

14.30

 

 

 

 

 

Options exercised

 

 

(375,292

)

 

 

11.71

 

 

 

 

 

Canceled or forfeited

 

 

(218,130

)

 

 

16.08

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2017

 

 

988,167

 

 

 

15.13

 

 

 

7.24

 

Exercisable at December 31, 2017

 

 

539,993

 

 

$

16.23

 

 

 

5.85

 

 

The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The intrinsic value of stock options exercised in 2017, 2016 and 2015 was $2,813, $1,809 and $1,151, respectively.

The following table provides a summary of restricted stock units and restricted stock activity for the year ended December 31, 2017:

 

 

 

Shares

 

 

Average

Grant-Date

Fair Value

 

Unvested shares at December 31, 2016

 

 

331,410

 

 

 

 

 

Granted

 

 

238,111

 

 

$

14.57

 

Vested

 

 

(100,006

)

 

 

14.89

 

Forfeited

 

 

(56,865

)

 

 

13.91

 

Unvested shares at December 31, 2017

 

 

412,650

 

 

 

 

 

 

Restricted stock units are rights to receive shares of common stock, subject to forfeiture and other restrictions, which vest over a two or three year period. Restricted shares are considered to be non-vested shares under the accounting guidance for share-based payment and are not reflected as issued and outstanding shares until the restrictions lapse. At that time, the shares are released to the grantee and the Company records the issuance of the shares. Restricted stock awards are valued based on the market price of the underlying shares on the grant date. Compensation expense is recognized on a straight-line basis over the requisite service period. At December 31, 2017, restricted stock awards had vesting periods up through December 2020.

 

Included in the December 31, 2017 unvested shares are 211,769 performance-based restricted stock units. The fair value of these awards is calculated using the market price of the underlying common stock on the date of grant. In determining fair value, the Company does not take into account performance-based vesting requirements. For these awards, the performance-based vesting requirements determines the number of shares that ultimately vest, which can vary from 0% to 200% of target depending on the level of achievement of established performance criteria. Compensation expense is recognized over the requisite service period subject to adjustment based on the probable number of shares expected to vest under the performance condition.

 

Stock compensation expense was approximately $3,626, $3,357 and $4,934 for the years ended December 31, 2017, 2016 and 2015, respectively. These expenses are included in general and administrative expenses in the accompanying Consolidated Statements of Operations. Total unrecognized compensation cost related to non-vested share based compensation arrangements at December 31, 2017 was approximately $5,317 which will be recognized over the next three years, as such compensation is earned.

 

Contingencies
Contingencies

9.  Contingencies

The Company is a defendant in various lawsuits and a party to various other legal proceedings, in the ordinary course of business, some of which are covered in whole or in part by insurance. We believe that the outcome of these lawsuits and other proceedings will not individually or in the aggregate have a future material adverse effect on our consolidated financial position, results of operations or cash flows.

New Idria Mercury Mine

In September 2015, the U.S. Environmental Protection Agency (“EPA”) formally informed a subsidiary of the Company, Buckhorn, Inc. (“Buckhorn”) via a notice letter and related documents (the “Notice Letter”) that it considers Buckhorn to be a potentially responsible party (“PRP”) in connection with the New Idria Mercury Mine Superfund site (“New Idria Mine”).  New Idria Mining & Chemical Company (“NIMCC”), which owned and/or operated the New Idria Mine from 1936 through 1976 was merged into Buckhorn Metal Products Inc. in 1981, which was subsequently acquired by Myers Industries in 1987.  As a result of the EPA Notice Letter, Buckhorn and the Company have been engaged in negotiations with the EPA with respect to a draft Settlement Agreement and Administrative Order on Consent (“AOC”) proposed by the EPA for the Remedial Investigation/Feasibility Study (“RI/FS”) to determine the extent of remediation necessary and the screening of alternatives.

The Company and the EPA are in the final stages of negotiation on the AOC and related Statement of Work (“SOW”) with regards to the New Idria Mine, and the Company expects to execute the AOC in March 2018. The key terms of the AOC and SOW include, but are not limited to, scope of the site, categories of and schedules for completion of required tasks, administration of future oversight costs, stipulated penalties, and resolution of any disputed items between the parties. As a result of recent negotiations, the Company recognized expected future EPA oversight costs for the RI/FS of $1 million in 2017. In addition, the AOC will require the Company to provide $2 million of financial assurance to the EPA during the estimated three year life of the RI/FS.  Per federal statutes, this financial assurance can take several forms, including a financial guarantee by the Company, a letter of credit, or a surety bond.  The Company expects to provide this assurance within 30 days following the execution of the AOC, and is currently evaluating the options available under the statute.

The New Idria Mine is located near Hollister, California and was added to the Superfund National Priorities List by the EPA in October 2011, at which time the Company recognized expense of $1.9 million related to performing the RI/FS.   In the second quarter of 2016, the Company, based on discussions with the EPA, determined that the RI/FS would begin in 2017 and therefore obtained updated estimated costs to perform the RI/FS.  As a result of the updated estimated costs, the Company recorded additional expense of $1.0 million in the second quarter of 2016.  In the second quarter of 2017, the Company, based on the status of its discussions with the EPA, determined that field work on the RI/FS would likely begin in 2018 with no changes to the cost estimates to perform the RI/FS. In the third quarter of 2017, the Company recorded an additional reserve of $0.3 million for this project, as a result of additional professional fees and other project costs expected to be incurred as part of the implementation of the AOC and site preparation and stabilization, in advance of starting the RI/FS field work in 2018.  

As part of the Notice Letter, the EPA also made a claim for approximately $1.6 million in past costs for actions it claims it has taken in connection with the New Idria Mine since 1993.  While the Company is evaluating this past cost claim and may challenge portions of it, in 2015 the Company recognized an expense of $1.3 million related to the claim. These past costs will not be addressed or settled upon execution of the AOC discussed above.

As of December 31, 2017 and 2016, the Company had a total reserve of $3.6 million and $2.5 million, respectively, related to the New Idria Mine.  As of December 31, 2017, $1.0 million is classified in Other Current Liabilities and $2.6 million is classified in Other Liabilities on the Consolidated Statements of Financial Position. All charges related to this claim have been recorded with general and administrative expenses in the Consolidated Statement of Operations.

As negotiations with the EPA proceed it is possible that adjustments to the aforementioned reserves will be necessary to reflect new information. Estimates of the Company’s liability are based on current facts, laws, regulations and technology. Estimates of the Company’s environmental liabilities are further subject to uncertainties regarding the negotiations with EPA, the nature and extent of the specific tasks required in the RI/FS, the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, imprecise engineering evaluation and cost estimates, the extent of remedial actions that may be required, the number and financial condition of other PRPs that may be named as well as the extent of their responsibility for the remediation, and the availability of insurance coverage for these expenses.

At this time, we have not accrued for remediation costs in connection with this site as we are unable to estimate the liability, given the circumstances referred to above, including the fact that the final remediation strategy has not yet been determined.

New Almaden Mine (formerly referred to as Guadalupe River Watershed)

A number of parties, including the Company and its subsidiary, Buckhorn (as successor to NIMCC), were alleged by trustee agencies of the United States and the State of California to be responsible for natural resource damages due to environmental contamination of areas comprising the historical New Almaden mercury mines located in the Guadalupe River Watershed region in Santa Clara County, California (“County”). In 2005, Buckhorn and the Company, without admitting liability or chain of ownership of NIMCC, resolved the trustees’ claim against them through a consent decree that required them to contribute financially to the implementation by the County of an environmentally beneficial project within the impacted area.  Buckhorn and the Company negotiated an agreement with the County, whereby Buckhorn and the Company agreed to reimburse one-half of the County’s costs of implementing the project, originally estimated to be approximately $1.6 million. As a result, in 2005, the Company recognized expense of $0.8 million representing its share of the initial estimated project costs, of which approximately $0.5 million has been paid to date. In April 2016, the Company was notified by the County that the original cost estimate may no longer be appropriate due to expanded scope and increased costs of construction, and provided a revised estimate of between $3.3 million and $4.4 million.  The Company completed a detailed review of the support provided by the County for the revised estimate, and as a result, recognized additional expense of $1.2 million in the second and third quarters of 2016.  As of December 31, 2017 and 2016, the Company has a total reserve of $1.5 million related to the New Almaden Mine. As of December 31, 2017, $0.3 million is classified in Other Current Liabilities and $1.2 million is classified in Other Liabilities on the Consolidated Statements of Financial Position. All charges related to this claim have been recorded with general and administrative expenses in the Consolidated Statement of Operations.

The project has not yet been implemented though significant work on design and planning has been performed. Field work on the project is expected to commence in 2018.  As work on the project occurs, it is possible that adjustments to the aforementioned reserves will be necessary to reflect new information.  In addition, the Company may have claims against and defenses to claims by the County under the 2005 agreement that could reduce or offset its obligation for reimbursement of some of these potential additional costs. With the assistance of environmental consultants, the Company will closely monitor this matter and will continue to assess its reserves as additional information becomes available.

Lawn and Garden Indemnification Claim

In connection with the sale of the Lawn and Garden business, as described in Note 4, the Company received a Notices of Indemnification Claims in April 2015 and July 2016 (collectively, the “Claims”),  alleging breaches of certain representations and warranties under the agreement resulting in alleged losses in the amount of approximately $10 million. As described in Note 4, approximately $8.6 million of the sale proceeds that were placed in escrow were due to be settled in August 2016, but continue in escrow until the Claims are resolved, which are the subject of a lawsuit in the Delaware Chancery Court.

In December 2017, the Delaware Chancery Court issued a non-final opinion in favor of the L&G Buyer that it is entitled to a distribution of the escrow property on technical grounds, without resolving the merits of the alleged breaches that are the subject of the Claims. The Company intends to appeal this decision, and has the right to a de novo review and believes it has meritorious grounds to reverse the decision. The Company also believes that it has meritorious defenses to the L&G Buyer’s Claims and will vigorously defend its position that it is entitled to the escrow property.  

Other

Buckhorn and Schoeller Arca Systems, Inc. (“SAS”) were plaintiffs in a patent infringement lawsuit against Orbis Corp. and Orbis Material Handling, Inc. (“Orbis”) for alleged breach by Orbis of an exclusive patent license agreement from SAS to Buckhorn. SAS is an affiliate of Schoeller Arca Systems Services B.V. (“SASS B.V.”), a Dutch company. SAS manufactures and sells plastic returnable packaging systems for material handling. In the course of the litigation, it was discovered that SAS had given a patent license agreement to a predecessor of Orbis that pre-dated the one that SAS sold to Buckhorn. As a result, judgment was entered in favor of Orbis, and the court awarded attorney fees and costs to Orbis in the amount of $3.1 million, plus interest and costs.

In May 2014, Orbis made demand to SAS that SAS pay the judgment in full, and subsequently in July 2014, Orbis made the same demand to Buckhorn. Buckhorn believed it was not responsible for any of the judgment because it was not a party to the Orbis license. Despite this belief, the Company recorded expense of $3.0 million during the third quarter of 2014 for the entire amount of the unpaid judgment. The United States Court of Appeals for the Federal Circuit reversed the judgment against Buckhorn on July 2, 2015, and found that Buckhorn was not liable to Orbis for any portion of the judgment entered in favor of Orbis. Accordingly, Myers reversed the accrual of $3.0 million during the second quarter of 2015, which was reflected as a reduction of general and administrative expenses in the accompanying Consolidated Statements of Operations. The Federal Circuit Court of Appeals rejected Orbis' petition for rehearing and rehearing en banc. All opportunities for Orbis to appeal have expired. The United States District Court for the Southern District of Ohio has now released Buckhorn’s appellate bond. Buckhorn was also pursuing legal action against SAS and SASS B.V. for fraudulently selling an exclusive patent license they could not sell and related claims. In 2016, the Company settled with SAS and SASS B.V. in return for a payment to the Company of $0.2 million, which was recorded as a reduction in general and administrative expenses in the Consolidated Statements of Operations. 

When a loss arising from these or other legal matters is probable and can reasonably be estimated, we record the amount of the estimated loss, or the minimum estimated liability when the loss is estimated using a range, and no point within the range is more probable of occurrence than another. As additional information becomes available, any potential liability related to these matters will be assessed and the estimates will be revised, if necessary.

Based on current available information, management believes that the ultimate outcome of these matters will not have a material adverse effect on our financial position, cash flows or overall trends in our results of operations. However, these matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the financial position and results of operations of the period in which the ruling occurs, or in future periods.

Long-Term Debt and Loan Agreements
Long-Term Debt and Loan Agreements

10.  Long-Term Debt and Loan Agreements

Long-term debt at December 31, 2017 and 2016 consisted of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Loan Agreement

 

$

74,632

 

 

$

90,686

 

4.67% Senior Unsecured Notes due 2021

 

 

40,000

 

 

 

40,000

 

5.25% Senior Unsecured Notes due 2024

 

 

11,000

 

 

 

11,000

 

5.30% Senior Unsecured Notes due 2024

 

 

15,000

 

 

 

29,000

 

5.45% Senior Unsecured Notes due 2026

 

 

12,000

 

 

 

20,000

 

 

 

 

152,632

 

 

 

190,686

 

Less unamortized deferred financing costs

 

 

1,596

 

 

 

1,164

 

 

 

$

151,036

 

 

$

189,522

 

 

In March 2017, the Company entered into a Fifth Amended and Restated Loan Agreement (the “Loan Agreement”).  The Loan Agreement replaced the pre-existing $300 million senior revolving credit facility with a $200 million facility and extended the term from December 2018 to March 2022.  In addition, the Loan Agreement provides for a maximum Leverage Ratio of 3.75 for the first and second quarters of 2017, stepping down to 3.5 in the third quarter of 2017, and 3.25 thereafter.

Under the terms of the Loan Agreement, the Company may borrow up to $200 million, reduced for letters of credit issued. As of December 31, 2017, the Company had $121.0 million available under the Loan Agreement. The Company had $4.4 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of business at December 31, 2017. Borrowings under the Loan Agreement bear interest at the LIBOR rate, prime rate, federal funds effective rate, the Canadian deposit offered rate, or the eurocurrency reference rate depending on the type of loan requested by the Company, in each case plus the applicable margin as set forth in the Loan Agreement.

The Company’s Senior Unsecured Notes (“Notes”) range in face value from $11 million to $40 million, with interest rates ranging from 4.67% to 5.45%, payable semiannually, and maturing between 2021 and 2026. In September 2017, the Company made an offer to all holders of the $100 million Notes to purchase all or a portion of the Notes prior to their maturity dates. In October 2017, one note holder accepted the offer and elected to tender $22 million in Notes. The Company purchased the Notes from the holder on October 31, 2017 for approximately $23.8 million, which includes the outstanding principal balance of $22.0 million and a make-whole premium of $1.8 million. A loss on extinguishment of debt of approximately $1.9 million was recorded during the fourth quarter of 2017, which consisted of the make-whole premium plus unamortized deferred financing costs of $0.1 million. At December 31, 2017, $78 million of the Notes were outstanding.

Amortization expense of the deferred financing costs was $508, $466, and $465 for the years ended December 31, 2017, 2016 and 2015, respectively, and is included in interest expense in the Consolidated Statement of Operations.

The average interest rate on borrowings under our loan agreements were 4.94% for 2017, 4.69% for 2016, and 4.59% for 2015, which includes a quarterly facility fee on the used and unused portion.

As of December 31, 2017, the Company was in compliance with all of its debt covenants associated with its Loan Agreement and Notes. The most restrictive financial covenants for all of the Company’s debt are an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense) and a leverage ratio (defined as total debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted). The ratios as of December 31, 2017 are shown in the following table:

 

 

 

Required Level

 

Actual Level

 

Interest Coverage Ratio

 

3.00 to 1 (minimum)

 

 

7.58

 

Leverage Ratio

 

3.25 to 1 (maximum)

 

 

2.40

 

 

Income Taxes
Income Taxes

11.  Income Taxes

The effective tax rate from continuing operations was 31.0% in 2017, 39.5% in 2016 and 31.5% in 2015. A reconciliation of the Federal statutory income tax rate to the Company’s effective tax rate is as follows:

 

  

 

Percent of Income before

Income Taxes

 

 

 

2017

 

 

2016

 

 

2015

 

Statutory Federal income tax rate

 

 

35.0

%

 

 

35.0

%

 

 

35.0

%

State income taxes - net of Federal tax benefit

 

 

8.3

 

 

 

3.0

 

 

 

0.2

 

Foreign tax rate differential

 

 

(1.6

)

 

 

(0.9

)

 

 

(2.2

)

Domestic production deduction

 

 

(5.2

)

 

 

(3.2

)

 

 

(3.4

)

Non-deductible expenses

 

 

0.4

 

 

 

2.9

 

 

 

1.5

 

Impact of tax law changes

 

 

(7.4

)

 

 

 

 

 

 

Changes in unrecognized tax benefits

 

 

0.9

 

 

 

(0.8

)

 

 

(1.6

)

Foreign tax incentives

 

 

 

 

 

(0.4

)

 

 

 

Valuation allowances

 

 

 

 

 

3.2

 

 

 

 

Other

 

 

0.6

 

 

 

0.7

 

 

 

2.0

 

Effective tax rate for the year

 

 

31.0

%

 

 

39.5

%

 

 

31.5

%

 

Income from continuing operations before income taxes was attributable to the following sources:

 

 

 

2017

 

 

2016

 

 

2015

 

United States

 

$

12,979

 

 

$

17,010

 

 

$

19,546

 

Foreign

 

 

2,729

 

 

 

1,709

 

 

 

5,962

 

Totals

 

$

15,708

 

 

$

18,719

 

 

$

25,508

 

 

Income tax expense (benefit) from continuing operations consisted of the following:

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

Current

 

 

Deferred

 

 

Current

 

 

Deferred

 

 

Current

 

 

Deferred

 

Federal

 

$

6,304

 

 

$

(4,394

)

 

$

5,684

 

 

$

(413

)

 

$

6,677

 

 

$

(368

)

Foreign

 

 

1,821

 

 

 

(883

)

 

 

515

 

 

 

741

 

 

 

337

 

 

 

1,308

 

State and local

 

 

2,402

 

 

 

(386

)

 

 

641

 

 

 

227

 

 

 

812

 

 

 

(729

)

 

 

$

10,527

 

 

$

(5,663

)

 

$

6,840

 

 

$

555

 

 

$

7,826

 

 

$

211

 

 

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Tax Act”). Effective January 1, 2018, the Tax Act establishes a corporate income tax rate of 21%, replacing the current 35% rate, and creates a territorial tax system rather than a worldwide system, which generally eliminates the U.S. federal income tax on dividends from foreign subsidiaries. The transition to the territorial system includes a one-time deemed repatriation transition tax (“Transition Tax”) on certain foreign earnings previously untaxed in the United States. The Company has made reasonable estimates for certain provisions under the Tax Act and has recorded a provisional net benefit to income tax expense of $1.2 million related to its enactment. This net benefit includes a provisional deferred tax benefit of $3.0 million related to revaluing the net U.S. deferred tax liabilities to reflect the lower U.S. corporate tax rate. The deferred tax benefit is offset by a provision of $1.8 million related to the Transition Tax. In general, the Transition Tax imposed by the Tax Act results in the taxation of foreign earnings and profits (“E&P”) at a 15.5% rate on liquid assets and 8% on the remaining unremitted foreign E&P, both net of foreign tax credits. The provisional amounts for the Transition Tax recorded by the Company in 2017 included the undistributed E&P for all the Company’s foreign subsidiaries.

Additional provisions of the Tax Act which may have an impact to the Company in future periods include, but are not limited to, the repeal of the domestic production deduction, limitations on interest expense deductions, accelerated depreciation that will allow for full expensing of qualified property, provisions related to performance-based executive compensation and other international provisions resulting from the territorial tax system established, as noted above.

In response to the complexities and timing of issuance of the Tax Act, the SEC issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”). Management believes that it has made reasonable estimates of the impacts of the Tax Act in its 2017 consolidated financial statements. However, as the Company completes its analysis of the Tax Act, collects further data and reviews additional information and guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, the provisional amounts included in the 2017 financial statements may be subject to adjustment. Per the guidance in SAB 118, adjustments to the provisional amounts recorded by the Company in 2017 that are identified within a subsequent period of up to one year from the enactment date will be included as an adjustment in the period the amounts are determined.

Except as provided for under the Transition Tax, no additional provision has been recorded as of December 31, 2017, related to the unremitted earnings of foreign subsidiaries. In accordance with SAB 118, the Company will continue to evaluate the impact of the Tax Act on its assertion that these earnings will be indefinitely reinvested. As noted above, the E&P for all foreign subsidiaries has been included in the calculation of the provisional Transition Tax, and thus, should there be a repatriation of earnings from any foreign subsidiaries in future periods, the Company would be subject to only foreign withholding tax.

 

Significant components of the Company’s deferred taxes as of December 31, 2017 and 2016 are as follows:

 

 

 

2017

 

 

2016

 

Deferred income tax liabilities

 

 

 

 

 

 

 

 

Property, plant and equipment

 

$

6,255

 

 

$

11,529

 

Tax-deductible goodwill

 

 

5,202

 

 

 

9,136

 

State deferred taxes

 

 

132

 

 

 

360

 

Other

 

 

149

 

 

 

889

 

 

 

 

11,738

 

 

 

21,914

 

Deferred income tax assets

 

 

 

 

 

 

 

 

Compensation

 

 

3,030

 

 

 

5,686

 

Inventory valuation

 

 

502

 

 

 

769

 

Allowance for uncollectible accounts

 

 

268

 

 

 

487

 

Non-deductible accruals

 

 

2,195

 

 

 

3,525

 

Non-deductible intangibles

 

 

1,193

 

 

 

1,165

 

Capital loss carryforwards

 

 

1,982

 

 

 

 

Net operating loss carryforwards

 

 

405

 

 

 

 

 

 

 

9,575

 

 

 

11,632

 

Valuation Allowance

 

 

(1,982

)

 

 

 

 

 

 

7,593

 

 

 

11,632

 

Net deferred income tax liability

 

$

4,145

 

 

$

10,282

 

 

ASC 740, Income Taxes, requires that deferred tax assets be reduced by a valuation allowance, if based on all available evidence, it is more likely than not that the deferred tax asset will not be realized. Available evidence includes the reversal of existing taxable temporary differences, future taxable income exclusive of temporary differences, taxable income in carryback years and tax planning strategies.

As further discussed in Note 4, the Company sold its investments in certain Brazilian subsidiaries on December 18, 2017. In connection with this divestiture, the Company incurred a capital loss of $9.5 million on its investment in the Myers do Brazil business and recorded a deferred tax asset of $2.0 million as the result of this capital loss carryforward. A valuation allowance of $2.0 million has been recorded against this deferred tax asset as the recovery of the asset is not more likely than not as of December 31, 2017. In addition, in accordance with ASC 740, for the year ended December 31, 2016 the Company allocated $0.6 million of a valuation allowance related to the Brazil Business to income from continuing operations in the Consolidated Statement of Operations, as this valuation allowance related to the change in estimated realizability of the beginning of the year net deferred tax asset in the Brazil Business.

The Company recorded a tax benefit of approximately $15 million generated as a result of a worthless stock deduction for the Novel do Nordeste business included in the divestiture. Although management believes that the worthless stock deduction is valid, there can be no assurance that the IRS will not challenge it and, if challenged, that the Company will prevail. This tax benefit is included in the net loss from discontinued operations in the Consolidated Statements of Operations for the year ended December 31, 2017.

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

 

 

 

2017

 

 

2016

 

 

2015

 

Balance at January 1

 

$

478

 

 

$

151

 

 

$

483

 

Increases related to previous year tax positions

 

 

359

 

 

 

478

 

 

 

151

 

Reductions due to lapse of applicable statute of limitations

 

 

(478

)

 

 

(151

)

 

 

(483

)

Reduction due to settlements

 

 

 

 

 

 

 

 

 

Balance at December 31

 

$

359

 

 

$

478

 

 

$

151

 

 

The total amount of gross unrecognized tax benefits that would reduce the Company’s effective tax rate was $0.4 million, $0.5 million and $0.2 million at December 31, 2017, 2016 and 2015.  

The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns.  As of December 31, 2017, the Company is no longer subject to U.S. Federal examinations by tax authorities for tax years before 2014. The Company is subject to state and local examinations for tax years of 2012 through 2016. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2012 through 2016.

Retirement Plans
Retirement Plans

12.  Retirement Plans

The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s defined benefit pension plan, The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02, provides benefits primarily based upon a fixed amount for each year of service. The plan was frozen in 2007, and thus benefits for service were no longer accumulated after this date.

Net periodic pension cost for the years ended December 31, 2017, 2016 and 2015 was as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Interest cost

 

$

253

 

 

$

270

 

 

$

272

 

Expected return on assets

 

 

(295

)

 

 

(319

)

 

 

(332

)

Amortization of net loss

 

 

96

 

 

 

82

 

 

 

88

 

Net periodic pension cost

 

$

54

 

 

$

33

 

 

$

28

 

 

The reconciliation of changes in projected benefit obligations are as follows:

 

 

 

December 31,

 

 

 

2017

 

 

2016

 

Projected benefit obligation at beginning of year

 

$

6,503

 

 

$

6,465

 

Interest cost

 

 

253

 

 

 

270

 

Actuarial loss

 

 

276

 

 

 

238

 

Expenses paid

 

 

(84

)

 

 

(92

)

Benefits paid

 

 

(369

)

 

 

(378

)

Projected benefit obligation at end of year

 

$

6,579

 

 

$

6,503

 

Accumulated benefit obligation at end of year

 

$

6,579

 

 

$

6,503

 

 

The assumptions used to determine the net periodic benefit cost and benefit obligations are as follows:

 

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Discount rate for net periodic pension cost

 

 

4.00

%

 

 

4.30

%

 

 

3.90

%

Discount rate for benefit obligations

 

 

3.50

%

 

 

4.00

%

 

 

4.30

%

Expected long-term return of plan assets

 

 

7.75

%

 

 

7.75

%

 

 

7.50

%

 

The expected long-term rate of return assumption is based on the actual historical rate of return on assets adjusted to reflect recent market conditions and future expectations consistent with the Company’s current asset allocation and investment policy. This policy provides for aggressive capital growth balanced with moderate income production. Though inherent risks of equity exposure exist, returns generally are less volatile than maximum growth programs. The assumed discount rates represent long-term high quality corporate bond rates commensurate with the liability duration of the plan.

The following table reflects the change in the fair value of the plan’s assets:

 

 

 

December 31,

 

 

 

2017

 

 

2016

 

Fair value of plan assets at beginning of year

 

$

5,183

 

 

$

5,443

 

Actual return on plan assets

 

 

531

 

 

 

210

 

Company contributions

 

 

 

 

 

 

Expenses paid

 

 

(84

)

 

 

(92

)

Benefits paid

 

 

(369

)

 

 

(378

)

Fair value of plan assets at end of year

 

$

5,261

 

 

$

5,183

 

 

The fair value of plan assets are all categorized as level 1 and were determined based on period end closing, quoted prices in active markets.

The weighted average asset allocations at December 31, 2017 and 2016 are as follows:

 

 

 

December 31,

 

 

 

2017

 

 

2016

 

U.S. Equities securities

 

 

72

%

 

 

72

%

U.S. Debt securities

 

 

24

%

 

 

24

%

Cash

 

 

4

%

 

 

4

%

Total

 

 

100

%

 

 

100

%

 

The following table provides a reconciliation of the funded status of the plan at December 31, 2017 and 2016:

 

 

 

December 31,

 

 

 

2017

 

 

2016

 

Projected benefit obligation

 

$

6,579

 

 

$

6,503

 

Plan assets at fair value

 

 

5,261

 

 

 

5,183

 

Funded status

 

$

(1,318

)

 

$

(1,320

)

 

The funded status shown above is included in Other Liabilities in the Company’s Consolidated Statements of Financial Position at December 31, 2017 and 2016. The Company does not expect to make a contribution to the plan in 2018.

Benefit payments projected for the plan are as follows:

 

2018

 

$

360

 

2019

 

 

366

 

2020

 

 

371

 

2021

 

 

372

 

2022

 

 

370

 

2023-2027

 

 

1,874

 

 

The Myers Industries Profit Sharing and 401(k) Plan is maintained for the Company’s U.S. based employees, not covered under defined benefit plans, who have met eligibility service requirements. The Company recognized expense related to the 401(k) employer matching contribution in the amount of $2,302, $2,324 and $2,363 in 2017, 2016 and 2015, respectively.

In addition, the Company has a Supplemental Executive Retirement Plan (“SERP”) to provide certain participating senior executives with retirement benefits in addition to amounts payable under the 401(k) plan. Expense related to the SERP was approximately $128, $192 and $188 for the years ended December 2017, 2016 and 2015, respectively. The SERP liability was based on the discounted present value of expected future benefit payments using a discount rate of 3.5% at December 31, 2017 and 4.0% at December 31, 2016. The SERP liability was approximately $2,923 and $3,319 at December 31, 2017 and 2016, respectively, and is included in Accrued Employee Compensation and Other Liabilities on the accompanying Consolidated Statements of Financial Position. The SERP is unfunded.

Leases
Leases

13.  Leases

The Company and certain of its subsidiaries are committed under non-cancelable operating leases involving certain facilities and equipment. Aggregate rental expense for all leased assets was $3,198, $3,625 and $3,647 for the years ended December 31, 2017, 2016 and 2015, respectively.

Future minimum rental commitments are as follows:

 

Year Ended December 31,

 

 

 

 

2018

 

$

2,486

 

2019

 

 

942

 

2020

 

 

663

 

2021

 

 

590

 

2022

 

 

564

 

Thereafter

 

 

390

 

Total

 

$

5,635

 

 

Industry Segments
Industry Segments

14.  Industry Segments

Using the criteria of ASC 280, Segment Reporting, the Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which our Chief Operating Decision Maker evaluates performance and makes resource allocation decisions. None of the reportable segments include operating segments that have been aggregated.  These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up.

The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products and rotationally-molded plastic tanks for water, fuel and waste handling. This segment conducts its primary operations in the United States and Canada. Markets served encompass various niches of industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer, and others. Products are sold both directly to end-users and through distributors.

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive undervehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment operates domestically through its sales offices and four regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, auto dealers, general service and repair centers, tire retreaders, and government agencies.

Total sales from foreign business units were approximately $53.9 million, $64.2 million, and $75.1 million for the years ended December 31, 2017, 2016 and 2015, respectively. Total export sales to countries outside the U.S. were approximately $17.2 million, $18.6 million, and $25.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. Sales made to customers in Canada accounted for approximately 2.4% of total net sales in 2017, 4.6% in 2016 and 5.5% in 2015. There are no other individual foreign countries for which sales are material. Long-lived assets in foreign countries, primarily in Canada, consisted of property, plant and equipment, and were approximately $17.6 million at December 31, 2017 and $22.4 million at December 31, 2016.

 

 

 

2017

 

 

2016

 

 

2015

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

391,313

 

 

$

363,956

 

 

$

384,351

 

Distribution

 

 

156,428

 

 

 

170,660

 

 

 

187,637

 

Inter-company sales

 

 

(698

)

 

 

(237

)

 

 

(968

)

Total net sales

 

$

547,043

 

 

$

534,379

 

 

$

571,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

38,874

 

 

$

40,776

 

 

$

53,418

 

Distribution

 

 

9,073

 

 

 

12,834

 

 

 

16,114

 

Corporate

 

 

(23,059

)

 

 

(26,248

)

 

 

(35,015

)

Total operating income

 

 

24,888

 

 

 

27,362

 

 

 

34,517

 

Interest expense, net

 

 

(7,292

)

 

 

(8,643

)

 

 

(9,009

)

Loss on extinguishment of debt

 

 

(1,888

)

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

15,708

 

 

$

18,719

 

 

$

25,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable Assets

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

257,863

 

 

$

268,634

 

 

$

307,799

 

Distribution

 

 

49,822

 

 

 

56,072

 

 

 

58,772

 

Corporate

 

 

48,257

 

 

 

36,271

 

 

 

34,746

 

Discontinued operations

 

 

 

 

 

20,707

 

 

 

27,707

 

Total identifiable assets

 

$

355,942

 

 

$

381,684

 

 

$

429,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Additions, Net

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

5,165

 

 

$

10,933

 

 

$

19,482

 

Distribution

 

 

622

 

 

 

1,424

 

 

 

1,795

 

Corporate

 

 

27

 

 

 

132

 

 

 

510

 

Total capital additions, net

 

$

5,814

 

 

$

12,489

 

 

$

21,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

28,506

 

 

$

29,270

 

 

$

30,018

 

Distribution

 

 

1,174

 

 

 

1,221

 

 

 

998

 

Corporate

 

 

1,151

 

 

 

1,301

 

 

 

1,314

 

Total depreciation and amortization

 

$

30,831

 

 

$

31,792

 

 

$

32,330

 

 

Subsequent Events (Unaudited)
Subsequent Events

15.  Subsequent Events (Unaudited)

On February 27, 2018, the Company sold a distribution center in Pomona, California for approximately $2.3 million, net of approximately $0.1 million in closing costs. The Company concurrently entered into an agreement to lease the facility back from the buyer for a period of 10 years. This facility is included in our Distribution Segment.

Summarized Quarterly Results of Operations (Notes)
Summarized Quarterly Results of Operations

 

16.  Summarized Quarterly Results of Operations (Unaudited)

 

Quarter Ended 2017

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

 

Total

 

Net Sales

 

$

136,572

 

 

$

135,252

 

 

$

135,113

 

 

$

140,106

 

 

$

547,043

 

Gross Profit

 

 

41,761

 

 

 

38,292

 

 

 

39,143

 

 

 

38,257

 

 

 

157,453

 

Income (loss) from continuing operations (3) (4)

 

 

3,458

 

 

 

2,482

 

 

 

3,083

 

 

 

1,821

 

 

 

10,844

 

Income (loss) from discontinued operations, net (1) (2)

 

 

(344

)

 

 

(489

)

 

 

174

 

 

 

(20,074

)

 

 

(20,733

)

Net income (loss)(1) (2) (3) (4)

 

 

3,114

 

 

 

1,993

 

 

 

3,257

 

 

 

(18,253

)

 

 

(9,889

)

Income (loss) per common share from continuing

   operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.12

 

 

$

0.08

 

 

$

0.10

 

 

$

0.06

 

 

$

0.36

 

Diluted*

 

$

0.11

 

 

$

0.08

 

 

$

0.10

 

 

$

0.06

 

 

$

0.35

 

Income (loss) per common share from discontinued

   operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

(0.02

)

 

$

(0.01

)

 

$

0.01

 

 

$

(0.66

)

 

$

(0.69

)

Diluted*

 

$

(0.01

)

 

$

(0.01

)

 

$

0.01

 

 

$

(0.65

)

 

$

(0.68

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.10

 

 

$

0.07

 

 

$

0.11

 

 

$

(0.60

)

 

$

(0.33

)

Diluted*

 

$

0.10

 

 

$

0.07

 

 

$

0.11

 

 

$

(0.59

)

 

$

(0.33

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended 2016

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

 

Total

 

Net Sales

 

$

147,177

 

 

$

138,244

 

 

$

125,669

 

 

$

123,289

 

 

$

534,379

 

Gross Profit

 

 

48,440

 

 

 

43,482

 

 

 

34,676

 

 

 

35,300

 

 

 

161,898

 

Income (loss) from continuing operations

 

 

5,722

 

 

 

5,921

 

 

 

580

 

 

 

(899

)

 

 

11,324

 

Income (loss) from discontinued operations, net (5)

 

 

(9,115

)

 

 

(427

)

 

 

(166

)

 

 

(559

)

 

 

(10,267

)

Net income (loss)(5)

 

 

(3,393

)

 

 

5,494

 

 

 

414

 

 

 

(1,458

)

 

 

1,057

 

Income (loss) per common share from continuing

   operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.19

 

 

$

0.20

 

 

$

0.02

 

 

$

(0.03

)

 

$

0.38

 

Diluted*

 

$

0.19

 

 

$

0.20

 

 

$

0.02

 

 

$

(0.03

)

 

$

0.38

 

Income (loss) per common share from discontinued

   operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

(0.30

)

 

$

(0.01

)

 

$

(0.01

)

 

$

(0.02

)

 

$

(0.35

)

Diluted*

 

$

(0.30

)

 

$

(0.01

)

 

$

(0.01

)

 

$

(0.02

)

 

$

(0.35

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

(0.11

)

 

$

0.19

 

 

$

0.01

 

 

$

(0.05

)

 

$

0.03

 

Diluted*

 

$

(0.11

)

 

$

0.19

 

 

$

0.01

 

 

$

(0.05

)

 

$

0.03

 

 

 

(1)

A loss on the sale of the Brazil Business of $35 million was recognized during the fourth quarter of 2017. This loss is included in loss from discontinued operations in the accompanying Consolidated Statements of Operations.  

(2)

During the quarter ended December 31, 2017, the Company recorded a U.S. tax benefit of approximately $15 million as a result of a worthless stock deduction related to the Company’s investment in the Brazil Business. This benefit is included in loss from discontinued operations in the accompanying Consolidated Statements of Operations.

(3)

During the quarter ended December 31, 2017, the Company recorded a loss on extinguishment of debt of approximately $1.9 million.

(4)  

During the quarter ended December 31, 2017, the Company recorded a net tax benefit of approximately $1.2 million related to the Tax Act.

(5)

During the quarter ended March 31, 2016, the Company concluded that the goodwill, intangibles and other long-lived assets related to Novel were impaired and recorded an impairment charge of $8.5 million.

 

*

The sum of the earnings per share for the four quarters in a year does not necessarily equal the total year earnings per share due to the computation of weighted shares outstanding during each respective period.

 

 

1

Summary of Significant Accounting Policies (Policies)

Basis of Presentation

The consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. All subsidiaries that are not wholly owned and are not included in the consolidated operating results of the Company are immaterial investments which have been accounted for under the equity or cost method. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimates.

During the fourth quarter of 2017, the Company completed the sale of certain subsidiaries in Brazil. As further discussed in Note 4, the results of operations and cash flows of these subsidiaries have been classified as discontinued operations in the consolidated financial statements for all periods presented.

Accounting Standards Adopted

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting, which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The Company adopted this ASU effective January 1, 2017 and elected to recognize forfeitures as they occur. The cash flow classification requirements of ASU 2016-09 were applied prospectively. The adoption of this ASU did not have a material impact on the Company’s results of operations, cash flows or financial position.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments, which clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows.  The new guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows.  This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted.  The Company early adopted this standard in the fourth quarter of 2017. The adoption of this standard did not have a significant impact on the Company’s consolidated financial statements.

Accounting Standards Not Yet Adopted

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220). This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The new standard also requires certain disclosures about stranded tax effects. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (as further discussed in Note 11) is recognized. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.  This ASU requires that an employer report the service cost component in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period.  The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented.  The ASU also allows only the service cost component to be eligible for capitalization when applicable. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods.  The ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets.  The Company does not anticipate that adoption of this standard will have a material impact on its consolidated financial statements as the pension plan is frozen.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.  This ASU eliminates Step 2 of the goodwill impairment test and requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019.  The guidance allows for early adoption for impairment testing dates after January 1, 2017.  While the Company has elected not to early adopt this guidance for fiscal year 2017 and will continue to evaluate the timing of adoption, it does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash. This ASU requires that companies include amounts generally described as restricted cash and restricted cash equivalents, along with cash and cash equivalents, when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows.  The ASU should be applied using a retrospective transition method to each period presented and is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. To the extent there are changes in the Company’s restricted cash balances, adoption of this standard will impact the presentation within the statement of cash flows.

In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740). This ASU requires immediate recognition of the income tax consequences of intercompany asset transfers other than inventory. The ASU is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company does not anticipate that adoption of this standard will have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, which introduces new guidance for the accounting for credit losses on instruments.  The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2019 including interim periods within that reporting period, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The new standard is effective for the Company beginning January 1, 2019 and requires a modified retrospective approach. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. Additional disclosures will also be required to help users of financial statements understand the nature, amount, and timing of revenue and cash flows arising from contracts. The new guidance is effective January 1, 2018, with early adoption permitted for January 1, 2017. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented, or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the Consolidated Statements of Shareholders’ Equity. The Company will adopt the new guidance effective January 1, 2018 under the modified retrospective approach. As part of the implementation plan developed, the Company identified its revenue streams and completed its contract review for each of these revenue streams to assess the impact of the new guidance on its consolidated financial statements. This assessment included the potential impact of whether revenue from certain product lines would be required to be recognized over time rather than at a point in time. Based on the results of these reviews, the adoption of this standard will not have a material impact on the timing or measurement of revenue recognition in the Company’s consolidated financial statements. Additionally, the standard requires new disclosures related to revenue, which the Company is in the process of finalizing.

Translation of Foreign Currencies

All asset and liability accounts of consolidated foreign subsidiaries are translated at the current exchange rate as of the end of the accounting period and income statement items are translated monthly at an average currency exchange rate for the period. The resulting translation adjustment is recorded in other comprehensive income (loss) as a separate component of shareholders' equity.

Fair Value Measurement

The Company follows guidance included in Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. The guidance established a common definition for fair value to be applied under U.S. GAAP requiring the use of fair value, established a framework for measuring fair value, and expanded disclosure requirements about such fair value measurements. The guidance did not require any new fair value measurements, but rather applied to all other accounting pronouncements that require or permit fair value measurements. Under ASC 820, the hierarchy that prioritizes the inputs to valuation techniques used to measure fair value is divided into three levels:

 

Level 1:

Unadjusted quoted prices in active markets for identical assets or liabilities.

 

Level 2:

Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly.

 

Level 3:

Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions.

The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments approximate carrying value due to the nature and relative short maturity of these assets and liabilities.

The fair value of debt under the Company’s Loan Agreement, as defined in Note 10, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of the revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements which are considered Level 2 inputs. At December 31, 2017 and 2016, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated at $78.0 million and $98.0 million, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk primarily consist of trade accounts receivable. The concentration of accounts receivable credit risk is generally limited based on the Company’s diversified operations, with customers spread across many industries and countries. The Company’s largest single customer in 2017 accounts for approximately 5% of net sales with no other customer greater than 4%. Outside of the United States, only customers located in Canada, which account for approximately 2.4% of net sales, are significant to the Company’s operations. In addition, management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for doubtful accounts is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. Additionally, the Company also reviews historical trends for collectability in determining an estimate for its allowance for doubtful accounts. If economic circumstances change substantially, estimates of the recoverability of amounts due the Company could be reduced by a material amount. Expense related to bad debts was approximately $0.7 million, $0.8 million and $0.3 million for 2017, 2016 and 2015, respectively, and is recorded within selling expenses in the Consolidated Statement of Operations. Deductions from the allowance for doubtful accounts, net of recoveries, were approximately $0.7 million, $0.4 million and $0.5 million for 2017, 2016 and 2015, respectively.

Inventories

Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 30 percent of our inventories are valued using the LIFO method of determining cost. Cost of other inventories is determined using methods that approximate the FIFO method.

 

Inventories at December 31 consist of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Finished and in-process products

 

$

30,874

 

 

$

31,081

 

Raw materials and supplies

 

 

16,151

 

 

 

13,704

 

 

 

$

47,025

 

 

$

44,785

 

 

If the FIFO method of inventory cost valuation had been used exclusively by the Company, inventories would have been $5.6 million and $4.7 million higher than reported at December 31, 2017 and 2016, respectively. Cost of sales decreased by $0.1 million and less than $0.1 million in 2017 and 2015, respectively, as a result of the liquidation of LIFO inventories. Cost of sales increased by $0.1 million in 2016 as a result of the liquidation of LIFO inventories.

Property, Plant and Equipment

Property, plant and equipment are carried at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization on the basis of the straight-line method over the estimated useful lives of the assets as follows:

 

Buildings

20 to 40 years

Machinery and Equipment

3 to 10 years

Leasehold Improvements

5 to 10 years

 

The Company’s property, plant and equipment by major asset class at December 31 consists of:

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Land

 

$

7,815

 

 

$

8,916

 

Buildings and leasehold improvements

 

 

59,730

 

 

 

65,425

 

Machinery and equipment

 

 

260,880

 

 

 

299,065

 

 

 

 

328,425

 

 

 

373,406

 

Less allowances for depreciation and amortization

 

 

(244,521

)

 

 

(267,140

)

 

 

$

83,904

 

 

$

106,266

 

 

At December 31, 2017 and 2016, the Company had approximately $6.9 million and $6.2 million, respectively, of capitalized software costs included in machinery and equipment. Amortization expense related to capitalized software costs was approximately $1.0 million, $0.6 million and $0.5 million in 2017, 2016 and 2015, respectively.

Long-Lived Assets

The Company reviews its long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Determination of potential impairment related to assets to be held and used is based upon undiscounted future cash flows resulting from the use and ultimate disposition of the asset. For assets held for sale, the amount of potential impairment may be based upon appraisal of the asset, estimated market value of similar assets or estimated cash flow from the disposition of the asset. Refer to Note 2 for discussion of the impairment charges.

Revenue Recognition

The Company recognizes revenues from the sale of products, net of actual and estimated returns, at the point of passage of title and risk of loss, which is generally at time of shipment, and collectability of the fixed or determinable sales price is reasonably assured.

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) and are as follows:

 

 

 

Foreign

Currency

 

 

Defined Benefit

Pension Plans

 

 

Total

 

Balance at January 1, 2015

 

$

(9,825

)

 

$

(1,863

)

 

$

(11,688

)

Other comprehensive income before reclassifications

 

 

(17,131

)

 

 

144

 

 

 

(16,987

)

Amounts reclassified from accumulated other comprehensive income, net of tax of ($32) (1)

 

 

(10,491

)

 

 

56

 

 

 

(10,435

)

Net current-period other comprehensive income (loss)

 

 

(27,622

)

 

 

200

 

 

 

(27,422

)

Balance at December 31, 2015

 

 

(37,447

)

 

 

(1,663

)

 

 

(39,110

)

Other comprehensive income (loss) before reclassifications

 

 

5,105

 

 

 

(222

)

 

 

4,883

 

Amounts reclassified from accumulated other comprehensive income, net of tax of ($30) (1)

 

 

 

 

 

53

 

 

 

53

 

Net current-period other comprehensive income (loss)

 

 

5,105

 

 

 

(169

)

 

 

4,936

 

Balance at December 31, 2016

 

 

(32,342

)

 

 

(1,832

)

 

 

(34,174

)

Other comprehensive income before reclassifications

 

 

2,391

 

 

 

(31

)

 

 

2,360

 

Amounts reclassified from accumulated other comprehensive income, net of tax of ($24) (1) (2)

 

 

17,201

 

 

 

72

 

 

 

17,273

 

Net current-period other comprehensive income (loss)

 

 

19,592

 

 

 

41

 

 

 

19,633

 

Balance at December 31, 2017

 

$

(12,750

)

 

$

(1,791

)

 

$

(14,541

)

 

 

(1)

The accumulated other comprehensive income (loss) components related to defined benefit pension plans are included in the computation of net periodic pension cost. See Note 12, Retirement Plans for additional details.

 

(2)

Cumulative translation adjustment associated with the sale of the Brazil Business, as further discussed in Note 4, was included in the carrying value of assets disposed of.

Shipping and Handling

Costs for shipments to customers are classified as selling expenses for the Company’s manufacturing business and as cost of sales for the Company’s distribution business in the accompanying Consolidated Statements of Operations. The Company incurred costs for shipments to customers of approximately $8.2 million, $8.9 million and $8.5 million in selling expenses for the years ended December 31, 2017, 2016 and 2015, respectively and $6.0 million, $6.1 million, and $6.2 million in cost of sales for the years ended December 31, 2017, 2016 and 2015. All other internal distribution costs are recorded in selling expenses.

Stock Based Compensation

The Company has stock plans that provide for the granting of stock-based compensation to employees and to non-employee directors. Shares issued for option exercises or restricted shares may be either from authorized but unissued shares or treasury shares. The Company records the costs of the plan under the provisions of ASC 718, Compensation — Stock Compensation. For transactions in which the Company obtains employee services in exchange for an award of equity instruments, the Company measures the cost of the services based on the grant date fair value of the award. The Company recognizes the cost over the period during which an employee is required to provide services in exchange for the award, referred to as the requisite service period (usually the vesting period).

 

 

Income Taxes

Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the change is enacted.

The Company evaluates its tax positions in accordance with ASC 740, Income Taxes. ASC 740 provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized under ASC 740. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value. The Company maintains operating cash and reserves for replacement balances in financial institutions which, from time to time, may exceed federally insured limits. The Company periodically assesses the financial condition of these institutions and believes that the risk of loss is minimal.

Cash flows used in investing activities excluded $0.6 million, $0.1 million and $6.6 million of accrued capital expenditures in 2017, 2016 and 2015, respectively.

Summary of Significant Accounting Policies (Tables)

Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 30 percent of our inventories are valued using the LIFO method of determining cost. Cost of other inventories is determined using methods that approximate the FIFO method.

 

Inventories at December 31 consist of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Finished and in-process products

 

$

30,874

 

 

$

31,081

 

Raw materials and supplies

 

 

16,151

 

 

 

13,704

 

 

 

$

47,025

 

 

$

44,785

 

 

The Company provides for depreciation and amortization on the basis of the straight-line method over the estimated useful lives of the assets as follows:

 

Buildings

20 to 40 years

Machinery and Equipment

3 to 10 years

Leasehold Improvements

5 to 10 years

 

The Company’s property, plant and equipment by major asset class at December 31 consists of:

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Land

 

$

7,815

 

 

$

8,916

 

Buildings and leasehold improvements

 

 

59,730

 

 

 

65,425

 

Machinery and equipment

 

 

260,880

 

 

 

299,065

 

 

 

 

328,425

 

 

 

373,406

 

Less allowances for depreciation and amortization

 

 

(244,521

)

 

 

(267,140

)

 

 

$

83,904

 

 

$

106,266

 

 

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) and are as follows:

 

 

 

Foreign

Currency

 

 

Defined Benefit

Pension Plans

 

 

Total

 

Balance at January 1, 2015

 

$

(9,825

)

 

$

(1,863

)

 

$

(11,688

)

Other comprehensive income before reclassifications

 

 

(17,131

)

 

 

144

 

 

 

(16,987

)

Amounts reclassified from accumulated other comprehensive income, net of tax of ($32) (1)

 

 

(10,491

)

 

 

56

 

 

 

(10,435

)

Net current-period other comprehensive income (loss)

 

 

(27,622

)

 

 

200

 

 

 

(27,422

)

Balance at December 31, 2015

 

 

(37,447

)

 

 

(1,663

)

 

 

(39,110

)

Other comprehensive income (loss) before reclassifications

 

 

5,105

 

 

 

(222

)

 

 

4,883

 

Amounts reclassified from accumulated other comprehensive income, net of tax of ($30) (1)

 

 

 

 

 

53

 

 

 

53

 

Net current-period other comprehensive income (loss)

 

 

5,105

 

 

 

(169

)

 

 

4,936

 

Balance at December 31, 2016

 

 

(32,342

)

 

 

(1,832

)

 

 

(34,174

)

Other comprehensive income before reclassifications

 

 

2,391

 

 

 

(31

)

 

 

2,360

 

Amounts reclassified from accumulated other comprehensive income, net of tax of ($24) (1) (2)

 

 

17,201

 

 

 

72

 

 

 

17,273

 

Net current-period other comprehensive income (loss)

 

 

19,592

 

 

 

41

 

 

 

19,633

 

Balance at December 31, 2017

 

$

(12,750

)

 

$

(1,791

)

 

$

(14,541

)

 

 

(1)

The accumulated other comprehensive income (loss) components related to defined benefit pension plans are included in the computation of net periodic pension cost. See Note 12, Retirement Plans for additional details.

 

(2)

Cumulative translation adjustment associated with the sale of the Brazil Business, as further discussed in Note 4, was included in the carrying value of assets disposed of.

Goodwill and Intangible Assets (Tables)

The change in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 is as follows:

 

 

 

Distribution

 

 

Material

Handling

 

 

Total

 

January 1, 2016

 

$

505

 

 

$

58,382

 

 

$

58,887

 

Foreign currency translation

 

 

 

 

 

332

 

 

 

332

 

December 31, 2016

 

$

505

 

 

$

58,714

 

 

$

59,219

 

Foreign currency translation

 

 

 

 

 

752

 

 

 

752

 

December 31, 2017

 

$

505

 

 

$

59,466

 

 

$

59,971

 

 

Intangible assets at December 31, 2017 and 2016 consisted of the following:

 

 

 

 

 

 

2017

 

 

2016

 

 

 

Weighted

Average Remaining Useful

Life (years)

 

 

Gross

 

 

Accumulated

Amortization

 

 

Net

 

 

Gross

 

 

Accumulated

Amortization

 

 

Net

 

Trade Names – Indefinite

   Lived

 

 

 

 

 

$

9,972

 

 

$

 

 

$

9,972

 

 

$

10,050

 

 

$

 

 

$

10,050

 

Trade Names

 

 

7.5

 

 

 

80

 

 

 

(40

)

 

 

40

 

 

 

80

 

 

 

(34

)

 

 

46

 

Customer Relationships

 

 

2.0

 

 

 

41,043

 

 

 

(27,396

)

 

 

13,647

 

 

 

39,774

 

 

 

(21,127

)

 

 

18,647

 

Technology

 

 

6.2

 

 

 

24,980

 

 

 

(9,590

)

 

 

15,390

 

 

 

24,980

 

 

 

(7,037

)

 

 

17,943

 

Patents

 

 

0.0

 

 

 

11,730

 

 

 

(11,730

)

 

 

 

 

 

11,730

 

 

 

(11,548

)

 

 

182

 

 

 

 

 

 

 

$

87,805

 

 

$

(48,756

)

 

$

39,049

 

 

$

86,614

 

 

$

(39,746

)

 

$

46,868

 

 

Discontinued Operations (Tables)

The assets and liabilities of discontinued operations are stated separately as of December 31, 2016 in the Consolidated Statement of Financial Position and are comprised of the following items:

 

 

 

December 31, 2016

 

Cash and cash equivalents

 

$

5,484

 

Accounts receivable, net

 

 

7,328

 

Inventories

 

 

1,238

 

Prepaid expenses and other current assets

 

 

148

 

Total current assets

 

 

14,198

 

 

 

 

 

 

Intangible assets, net

 

 

1,126

 

Deferred income taxes

 

 

134

 

Property, plant and equipment, net

 

 

5,215

 

Other

 

 

34

 

Total noncurrent assets

 

 

6,509

 

Total assets of the disposal group classified as discontinued operations

 

$

20,707

 

 

 

 

 

 

Accounts payable

 

$

1,415

 

Accrued expenses

 

 

1,335

 

Total current liabilities

 

 

2,750

 

 

 

 

 

 

Deferred income taxes

 

 

249

 

Total noncurrent liabilities

 

 

249

 

Total liabilities of the disposal group classified as discontinued operations

 

$

2,999

 

 

Summarized selected financial information for Brazil Business, Lawn and Garden business and WEK for the years ended December 31, 2017, 2016 and 2015 are presented in the following table:

 

 

 

 

For the Year Ended December 31,

 

 

 

 

2017*

 

 

2016

 

 

2015**

 

Net sales

 

 

$

29,976

 

 

$

23,683

 

 

$

59,853

 

Cost of sales

 

 

 

25,359

 

 

 

20,941

 

 

 

50,772

 

Selling, general, and administrative

 

 

 

6,748

 

 

 

5,438

 

 

 

13,898

 

(Gain) loss on disposal of assets

 

 

 

(32

)

 

 

226

 

 

 

62

 

Impairment charges

 

 

 

 

 

 

8,545

 

 

 

 

Interest income, net

 

 

 

(286

)

 

 

(469

)

 

 

(10

)

Gain (loss) on the disposal of the discontinued operations

 

 

 

(34,956

)

 

 

 

 

 

1,873

 

Loss from discontinued operations before income tax

 

 

 

(36,769

)

 

 

(10,998

)

 

 

(2,996

)

Income tax benefit

 

 

 

(16,036

)

 

 

(731

)

 

 

(3,287

)

Income (loss) from discontinued operations, net of income tax

 

 

$

(20,733

)

 

$

(10,267

)

 

$

291

 

*

Includes Brazil Business operating results through December 18, 2017.

**

Includes Lawn and Garden operating results through February 17, 2015.

 


Net Income (Loss) Per Common Share (Tables)
Weighted average number of common shares outstanding during the period

Net income (loss) per common share, as shown on the accompanying Consolidated Statements of Operations, is determined on the basis of the weighted average number of common shares outstanding during the periods as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Weighted average common shares outstanding basic

 

 

30,222,289

 

 

 

29,750,378

 

 

 

30,616,485

 

Dilutive effect of stock options and restricted stock

 

 

340,357

 

 

 

217,534

 

 

 

327,208

 

Weighted average common shares outstanding diluted

 

 

30,562,646

 

 

 

29,967,912

 

 

 

30,943,693

 

 

Restructuring (Tables)

The restructuring charges recognized in the years ended 2017, 2016 and 2015 are presented in the following table.

 

 

 

 

2017

 

 

2016

 

 

2015

 

Segment

 

 

Cost of

sales

 

 

SG&A

 

 

Total

 

 

Cost of

sales

 

 

SG&A

 

 

Total

 

 

Cost of

sales

 

 

SG&A

 

 

Total

 

Distribution

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

124

 

 

$

124

 

Material Handling

 

 

 

7,389

 

 

 

164

 

 

 

7,553

 

 

 

 

 

 

 

 

 

 

 

 

1,340

 

 

 

912

 

 

 

2,252

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35

 

 

 

35

 

Total

 

 

$

7,389

 

 

$

164

 

 

$

7,553

 

 

$

 

 

$

 

 

$

 

 

$

1,340

 

 

$

1,071

 

 

$

2,411

 

 

The table below summarizes restructuring activity for the year ended December 31, 2017:

 

 

 

Employee Reduction

 

 

Accelerated Depreciation

 

 

Other Exit Costs

 

 

Total

 

Balance at January 1, 2017

 

$

 

 

$

 

 

$

 

 

$

 

Charges to expense

 

 

3,022

 

 

 

1,993

 

 

 

2,538

 

 

 

7,553

 

Cash payments

 

 

(1,924

)

 

 

 

 

 

(2,448

)

 

 

(4,372

)

Non-cash utilization

 

 

 

 

 

(1,993

)

 

 

 

 

 

(1,993

)

Balance at December 31, 2017

 

$

1,098

 

 

$

 

 

$

90

 

 

$

1,188

 

 

Other Current Liabilities (Tables)
Schedule of Other Current Liabilities

As of December 31, 2017 and 2016, the balance in other current liabilities is comprised of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Deposits and amounts due to customers

 

$

3,102

 

 

$

2,562

 

Dividends payable

 

 

4,478

 

 

 

4,260

 

Accrued litigation and professional fees

 

 

417

 

 

 

452

 

Current portion of environmental reserves

 

 

1,322

 

 

 

605

 

Other accrued expenses

 

 

6,153

 

 

 

5,032

 

 

 

$

15,472

 

 

$

12,911

 

 

Stock Compensation (Tables)

The following tables summarize stock option activity in the past three years:

Options granted in 2017, 2016 and 2015 were as follows:

 

Year

 

Options

 

 

Exercise

Price

 

2017

 

 

397,759

 

 

$

14.30

 

2016

 

 

271,350

 

 

$

11.62

 

2015

 

 

208,200

 

 

$

18.67

 

 

Options exercised in 2017, 2016 and 2015 were as follows:

 

Year

 

Options

 

 

Exercise

Price

2017

 

 

375,292

 

 

$9.97 to $20.93

2016

 

 

334,836

 

 

$9.00 to $14.77

2015

 

 

239,508

 

 

$9.97 to $17.02

Options outstanding and exercisable at December 31, 2017, 2016 and 2015 were as follows:

 

Year

 

Outstanding

 

 

Range of Exercise

Prices

 

Exercisable

 

 

Weighted Average

Exercise Price

 

2017

 

 

988,167

 

 

$9.97 to $20.93

 

 

539,993

 

 

$

16.23

 

2016

 

 

1,183,830

 

 

$9.97 to $20.93

 

 

934,898

 

 

$

14.88

 

2015

 

 

1,409,881

 

 

$9.00 to $20.93

 

 

1,231,544

 

 

$

13.47

 

The following table provides a summary of stock option activity for the period ended December 31, 2017:

 

 

 

Shares

 

 

Average

Exercise

Price

 

 

Weighted

Average

Life (in Years)

 

Outstanding at December 31, 2016

 

 

1,183,830

 

 

$

14.50

 

 

 

 

 

Options granted

 

 

397,759

 

 

 

14.30

 

 

 

 

 

Options exercised

 

 

(375,292

)

 

 

11.71

 

 

 

 

 

Canceled or forfeited

 

 

(218,130

)

 

 

16.08

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2017

 

 

988,167

 

 

 

15.13

 

 

 

7.24

 

Exercisable at December 31, 2017

 

 

539,993

 

 

$

16.23

 

 

 

5.85

 

 

The expected volatility is derived from historical volatility of the Company’s shares and those of similar companies measured against the market as a whole. In 2017, 2016 and 2015, the Company used the binomial lattice option pricing model based on the assumptions set forth in the following table.

 

 

 

2017

 

 

2016

 

 

2015

 

Risk free interest rate

 

 

2.50

%

 

 

1.80

%

 

 

2.10

%

Expected dividend yield

 

 

3.80

%

 

 

4.60

%

 

 

2.90

%

Expected life of award (years)

 

 

4.10

 

 

8.00

 

 

 

8.00

 

Expected volatility

 

 

50.00

%

 

 

50.00

%

 

 

50.00

%

Fair value per option

 

$

4.47

 

 

$

3.45

 

 

$

6.03

 

 

The following table provides a summary of restricted stock units and restricted stock activity for the year ended December 31, 2017:

 

 

 

Shares

 

 

Average

Grant-Date

Fair Value

 

Unvested shares at December 31, 2016

 

 

331,410

 

 

 

 

 

Granted

 

 

238,111

 

 

$

14.57

 

Vested

 

 

(100,006

)

 

 

14.89

 

Forfeited

 

 

(56,865

)

 

 

13.91

 

Unvested shares at December 31, 2017

 

 

412,650

 

 

 

 

 

 

Long-Term Debt and Loan Agreements (Tables)

Long-term debt at December 31, 2017 and 2016 consisted of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

Loan Agreement

 

$

74,632

 

 

$

90,686

 

4.67% Senior Unsecured Notes due 2021

 

 

40,000

 

 

 

40,000

 

5.25% Senior Unsecured Notes due 2024

 

 

11,000

 

 

 

11,000

 

5.30% Senior Unsecured Notes due 2024

 

 

15,000

 

 

 

29,000

 

5.45% Senior Unsecured Notes due 2026

 

 

12,000

 

 

 

20,000

 

 

 

 

152,632

 

 

 

190,686

 

Less unamortized deferred financing costs

 

 

1,596

 

 

 

1,164

 

 

 

$

151,036

 

 

$

189,522

 

 

The ratios as of December 31, 2017 are shown in the following table:

 

 

 

Required Level

 

Actual Level

 

Interest Coverage Ratio

 

3.00 to 1 (minimum)

 

 

7.58

 

Leverage Ratio

 

3.25 to 1 (maximum)

 

 

2.40

 

 

Income Taxes (Tables)

A reconciliation of the Federal statutory income tax rate to the Company’s effective tax rate is as follows:

 

  

 

Percent of Income before

Income Taxes

 

 

 

2017

 

 

2016

 

 

2015

 

Statutory Federal income tax rate

 

 

35.0

%

 

 

35.0

%

 

 

35.0

%

State income taxes - net of Federal tax benefit

 

 

8.3

 

 

 

3.0

 

 

 

0.2

 

Foreign tax rate differential

 

 

(1.6

)

 

 

(0.9

)

 

 

(2.2

)

Domestic production deduction

 

 

(5.2

)

 

 

(3.2

)

 

 

(3.4

)

Non-deductible expenses

 

 

0.4

 

 

 

2.9

 

 

 

1.5

 

Impact of tax law changes

 

 

(7.4

)

 

 

 

 

 

 

Changes in unrecognized tax benefits

 

 

0.9

 

 

 

(0.8

)

 

 

(1.6

)

Foreign tax incentives

 

 

 

 

 

(0.4

)

 

 

 

Valuation allowances

 

 

 

 

 

3.2

 

 

 

 

Other

 

 

0.6

 

 

 

0.7

 

 

 

2.0

 

Effective tax rate for the year

 

 

31.0

%

 

 

39.5

%

 

 

31.5

%

 

 

Income from continuing operations before income taxes was attributable to the following sources:

 

 

 

2017

 

 

2016

 

 

2015

 

United States

 

$

12,979

 

 

$

17,010

 

 

$

19,546

 

Foreign

 

 

2,729

 

 

 

1,709

 

 

 

5,962

 

Totals

 

$

15,708

 

 

$

18,719

 

 

$

25,508

 

 

 

Income tax expense (benefit) from continuing operations consisted of the following:

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

Current

 

 

Deferred

 

 

Current

 

 

Deferred

 

 

Current

 

 

Deferred

 

Federal

 

$

6,304

 

 

$

(4,394

)

 

$

5,684

 

 

$

(413

)

 

$

6,677

 

 

$

(368

)

Foreign

 

 

1,821

 

 

 

(883

)

 

 

515

 

 

 

741

 

 

 

337

 

 

 

1,308

 

State and local

 

 

2,402

 

 

 

(386

)

 

 

641

 

 

 

227

 

 

 

812

 

 

 

(729

)

 

 

$

10,527

 

 

$

(5,663

)

 

$

6,840

 

 

$

555

 

 

$

7,826

 

 

$

211

 

 

Significant components of the Company’s deferred taxes as of December 31, 2017 and 2016 are as follows:

 

 

 

2017

 

 

2016

 

Deferred income tax liabilities

 

 

 

 

 

 

 

 

Property, plant and equipment

 

$

6,255

 

 

$

11,529

 

Tax-deductible goodwill

 

 

5,202

 

 

 

9,136

 

State deferred taxes

 

 

132

 

 

 

360

 

Other

 

 

149

 

 

 

889

 

 

 

 

11,738

 

 

 

21,914

 

Deferred income tax assets

 

 

 

 

 

 

 

 

Compensation

 

 

3,030

 

 

 

5,686

 

Inventory valuation

 

 

502

 

 

 

769

 

Allowance for uncollectible accounts

 

 

268

 

 

 

487

 

Non-deductible accruals

 

 

2,195

 

 

 

3,525

 

Non-deductible intangibles

 

 

1,193

 

 

 

1,165

 

Capital loss carryforwards

 

 

1,982

 

 

 

 

Net operating loss carryforwards

 

 

405

 

 

 

 

 

 

 

9,575

 

 

 

11,632

 

Valuation Allowance

 

 

(1,982

)

 

 

 

 

 

 

7,593

 

 

 

11,632

 

Net deferred income tax liability

 

$

4,145

 

 

$

10,282

 

 

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

 

 

 

2017

 

 

2016

 

 

2015

 

Balance at January 1

 

$

478

 

 

$

151

 

 

$

483

 

Increases related to previous year tax positions

 

 

359

 

 

 

478

 

 

 

151

 

Reductions due to lapse of applicable statute of limitations

 

 

(478

)

 

 

(151

)

 

 

(483

)

Reduction due to settlements

 

 

 

 

 

 

 

 

 

Balance at December 31

 

$

359

 

 

$

478

 

 

$

151

 

 

Retirement Plans (Tables)

Net periodic pension cost for the years ended December 31, 2017, 2016 and 2015 was as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Interest cost

 

$

253

 

 

$

270

 

 

$

272

 

Expected return on assets

 

 

(295

)

 

 

(319

)

 

 

(332

)

Amortization of net loss

 

 

96

 

 

 

82

 

 

 

88

 

Net periodic pension cost

 

$

54

 

 

$

33

 

 

$

28

 

 

The reconciliation of changes in projected benefit obligations are as follows:

 

 

 

December 31,

 

 

 

2017

 

 

2016

 

Projected benefit obligation at beginning of year

 

$

6,503

 

 

$

6,465

 

Interest cost

 

 

253

 

 

 

270

 

Actuarial loss

 

 

276

 

 

 

238

 

Expenses paid

 

 

(84

)

 

 

(92

)

Benefits paid

 

 

(369

)

 

 

(378

)

Projected benefit obligation at end of year

 

$

6,579

 

 

$

6,503

 

Accumulated benefit obligation at end of year

 

$

6,579

 

 

$

6,503

 

 

The assumptions used to determine the net periodic benefit cost and benefit obligations are as follows:

 

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Discount rate for net periodic pension cost

 

 

4.00

%

 

 

4.30

%

 

 

3.90

%

Discount rate for benefit obligations

 

 

3.50

%

 

 

4.00

%

 

 

4.30

%

Expected long-term return of plan assets

 

 

7.75

%

 

 

7.75

%

 

 

7.50

%

 

The following table reflects the change in the fair value of the plan’s assets:

 

 

 

December 31,

 

 

 

2017

 

 

2016

 

Fair value of plan assets at beginning of year

 

$

5,183

 

 

$

5,443

 

Actual return on plan assets

 

 

531

 

 

 

210

 

Company contributions

 

 

 

 

 

 

Expenses paid

 

 

(84

)

 

 

(92

)

Benefits paid

 

 

(369

)

 

 

(378

)

Fair value of plan assets at end of year

 

$

5,261

 

 

$

5,183

 

 

The weighted average asset allocations at December 31, 2017 and 2016 are as follows:

 

 

 

December 31,

 

 

 

2017

 

 

2016

 

U.S. Equities securities

 

 

72

%

 

 

72

%

U.S. Debt securities

 

 

24

%

 

 

24

%

Cash

 

 

4

%

 

 

4

%

Total

 

 

100

%

 

 

100

%

 

 

The following table provides a reconciliation of the funded status of the plan at December 31, 2017 and 2016:

 

 

 

December 31,

 

 

 

2017

 

 

2016

 

Projected benefit obligation

 

$

6,579

 

 

$

6,503

 

Plan assets at fair value

 

 

5,261

 

 

 

5,183

 

Funded status

 

$

(1,318

)

 

$

(1,320

)

 

Benefit payments projected for the plan are as follows:

 

2018

 

$

360

 

2019

 

 

366

 

2020

 

 

371

 

2021

 

 

372

 

2022

 

 

370

 

2023-2027

 

 

1,874

 

 

Leases (Tables)
Future minimum rental commitments

Future minimum rental commitments are as follows:

 

Year Ended December 31,

 

 

 

 

2018

 

$

2,486

 

2019

 

 

942

 

2020

 

 

663

 

2021

 

 

590

 

2022

 

 

564

 

Thereafter

 

 

390

 

Total

 

$

5,635

 

 

Industry Segments (Tables)
Schedule of Reporting Information by Segment

Total sales from foreign business units were approximately $53.9 million, $64.2 million, and $75.1 million for the years ended December 31, 2017, 2016 and 2015, respectively. Total export sales to countries outside the U.S. were approximately $17.2 million, $18.6 million, and $25.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. Sales made to customers in Canada accounted for approximately 2.4% of total net sales in 2017, 4.6% in 2016 and 5.5% in 2015. There are no other individual foreign countries for which sales are material. Long-lived assets in foreign countries, primarily in Canada, consisted of property, plant and equipment, and were approximately $17.6 million at December 31, 2017 and $22.4 million at December 31, 2016.

 

 

 

2017

 

 

2016

 

 

2015

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

391,313

 

 

$

363,956

 

 

$

384,351

 

Distribution

 

 

156,428

 

 

 

170,660

 

 

 

187,637

 

Inter-company sales

 

 

(698

)

 

 

(237

)

 

 

(968

)

Total net sales

 

$

547,043

 

 

$

534,379

 

 

$

571,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

38,874

 

 

$

40,776

 

 

$

53,418

 

Distribution

 

 

9,073

 

 

 

12,834

 

 

 

16,114

 

Corporate

 

 

(23,059

)

 

 

(26,248

)

 

 

(35,015

)

Total operating income

 

 

24,888

 

 

 

27,362

 

 

 

34,517

 

Interest expense, net

 

 

(7,292

)

 

 

(8,643

)

 

 

(9,009

)

Loss on extinguishment of debt

 

 

(1,888

)

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

15,708

 

 

$

18,719

 

 

$

25,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable Assets

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

257,863

 

 

$

268,634

 

 

$

307,799

 

Distribution

 

 

49,822

 

 

 

56,072

 

 

 

58,772

 

Corporate

 

 

48,257

 

 

 

36,271

 

 

 

34,746

 

Discontinued operations

 

 

 

 

 

20,707

 

 

 

27,707

 

Total identifiable assets

 

$

355,942

 

 

$

381,684

 

 

$

429,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Additions, Net

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

5,165

 

 

$

10,933

 

 

$

19,482

 

Distribution

 

 

622

 

 

 

1,424

 

 

 

1,795

 

Corporate

 

 

27

 

 

 

132

 

 

 

510

 

Total capital additions, net

 

$

5,814

 

 

$

12,489

 

 

$

21,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

 

$

28,506

 

 

$

29,270

 

 

$

30,018

 

Distribution

 

 

1,174

 

 

 

1,221

 

 

 

998

 

Corporate

 

 

1,151

 

 

 

1,301

 

 

 

1,314

 

Total depreciation and amortization

 

$

30,831

 

 

$

31,792

 

 

$

32,330

 

 

Summarized Quarterly Results of Operations (Tables)
Schedule of Quarterly Financial Information

 

Quarter Ended 2017

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

 

Total

 

Net Sales

 

$

136,572

 

 

$

135,252

 

 

$

135,113

 

 

$

140,106

 

 

$

547,043

 

Gross Profit

 

 

41,761

 

 

 

38,292

 

 

 

39,143

 

 

 

38,257

 

 

 

157,453

 

Income (loss) from continuing operations (3) (4)

 

 

3,458

 

 

 

2,482

 

 

 

3,083

 

 

 

1,821

 

 

 

10,844

 

Income (loss) from discontinued operations, net (1) (2)

 

 

(344

)

 

 

(489

)

 

 

174

 

 

 

(20,074

)

 

 

(20,733

)

Net income (loss)(1) (2) (3) (4)

 

 

3,114

 

 

 

1,993

 

 

 

3,257

 

 

 

(18,253

)

 

 

(9,889

)

Income (loss) per common share from continuing

   operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.12

 

 

$

0.08

 

 

$

0.10

 

 

$

0.06

 

 

$

0.36

 

Diluted*

 

$

0.11

 

 

$

0.08

 

 

$

0.10

 

 

$

0.06

 

 

$

0.35

 

Income (loss) per common share from discontinued

   operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

(0.02

)

 

$

(0.01

)

 

$

0.01

 

 

$

(0.66

)

 

$

(0.69

)

Diluted*

 

$

(0.01

)

 

$

(0.01

)

 

$

0.01

 

 

$

(0.65

)

 

$

(0.68

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.10

 

 

$

0.07

 

 

$

0.11

 

 

$

(0.60

)

 

$

(0.33

)

Diluted*

 

$

0.10

 

 

$

0.07

 

 

$

0.11

 

 

$

(0.59

)

 

$

(0.33

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended 2016

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

 

Total

 

Net Sales

 

$

147,177

 

 

$

138,244

 

 

$

125,669

 

 

$

123,289

 

 

$

534,379

 

Gross Profit

 

 

48,440

 

 

 

43,482

 

 

 

34,676

 

 

 

35,300

 

 

 

161,898

 

Income (loss) from continuing operations

 

 

5,722

 

 

 

5,921

 

 

 

580

 

 

 

(899

)

 

 

11,324

 

Income (loss) from discontinued operations, net (5)

 

 

(9,115

)

 

 

(427

)

 

 

(166

)

 

 

(559

)

 

 

(10,267

)

Net income (loss)(5)

 

 

(3,393

)

 

 

5,494

 

 

 

414

 

 

 

(1,458

)

 

 

1,057

 

Income (loss) per common share from continuing

   operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.19

 

 

$

0.20

 

 

$

0.02

 

 

$

(0.03

)

 

$

0.38

 

Diluted*

 

$

0.19

 

 

$

0.20

 

 

$

0.02

 

 

$

(0.03

)

 

$

0.38

 

Income (loss) per common share from discontinued

   operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

(0.30

)

 

$

(0.01

)

 

$

(0.01

)

 

$

(0.02

)

 

$

(0.35

)

Diluted*

 

$

(0.30

)

 

$

(0.01

)

 

$

(0.01

)

 

$

(0.02

)

 

$

(0.35

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

(0.11

)

 

$

0.19

 

 

$

0.01

 

 

$

(0.05

)

 

$

0.03

 

Diluted*

 

$

(0.11

)

 

$

0.19

 

 

$

0.01

 

 

$

(0.05

)

 

$

0.03

 

 

(1)

A loss on the sale of the Brazil Business of $35 million was recognized during the fourth quarter of 2017. This loss is included in loss from discontinued operations in the accompanying Consolidated Statements of Operations.  

(2)

During the quarter ended December 31, 2017, the Company recorded a U.S. tax benefit of approximately $15 million as a result of a worthless stock deduction related to the Company’s investment in the Brazil Business. This benefit is included in loss from discontinued operations in the accompanying Consolidated Statements of Operations.

(3)

During the quarter ended December 31, 2017, the Company recorded a loss on extinguishment of debt of approximately $1.9 million.

(4)  

During the quarter ended December 31, 2017, the Company recorded a net tax benefit of approximately $1.2 million related to the Tax Act.

(5)

During the quarter ended March 31, 2016, the Company concluded that the goodwill, intangibles and other long-lived assets related to Novel were impaired and recorded an impairment charge of $8.5 million.

 

*

The sum of the earnings per share for the four quarters in a year does not necessarily equal the total year earnings per share due to the computation of weighted shares outstanding during each respective period.

 

 

1

Summary of Significant Accounting Policies - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Concentration of Credit Risk
 
 
 
Deductions from allowance for doubtful accounts, net of recoveries
$ 0.7 
$ 0.4 
$ 0.5 
Inventories
 
 
 
Percentage of LIFO Inventory
30.00% 
 
 
Cost valuation of inventory if FIFO had been used exclusively
5.6 
4.7 
 
LIFO inventories increased (decreased) cost of sales
(0.1)
0.1 
(0.1)
Capitalized Computer Software, Gross
6.9 
6.2 
 
Capitalized Computer Software, Amortization
1.0 
0.6 
0.5 
Cash and Cash Equivalents
 
 
 
Accrued capital expenditures excluded from investing activities
0.6 
0.1 
6.6 
Selling Expense [Member]
 
 
 
Concentration of Credit Risk
 
 
 
Expense for bad debts
0.7 
0.8 
0.3 
Shipping and handling
 
 
 
Shipping and handling expenses
8.2 
8.9 
8.5 
Cost of Sales [Member]
 
 
 
Shipping and handling
 
 
 
Shipping and handling expenses
6.0 
6.1 
6.2 
Customer 1 [Member] |
Sales [Member] |
Customer Concentration Risk [Member]
 
 
 
Concentration of Credit Risk
 
 
 
Concentration risk percentage
5.00% 
 
 
Maximum [Member] |
Customer 2 [Member] |
Sales [Member] |
Customer Concentration Risk [Member]
 
 
 
Concentration of Credit Risk
 
 
 
Concentration risk percentage
4.00% 
 
 
Canada [Member] |
Sales [Member] |
Customer Concentration Risk [Member]
 
 
 
Concentration of Credit Risk
 
 
 
Concentration risk percentage
2.40% 
4.60% 
5.50% 
Estimate of Fair Value, Fair Value Disclosure [Member] |
Less unamortized deferred financing fees [Member]
 
 
 
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
 
 
Notes payable, fair value disclosure
$ 78.0 
$ 98.0 
 
Summary of Significant Accounting Policies - Summary of Determination Cost of Inventories (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Inventory Disclosure [Abstract]
 
 
Finished and in-process products
$ 30,874 
$ 31,081 
Raw materials and supplies
16,151 
13,704 
Inventory net
$ 47,025 
$ 44,785 
Summary of Significant Accounting Policies - Schedule of estimated useful lives of the assets (Details)
12 Months Ended
Dec. 31, 2017
Minimum [Member] |
Buildings [Member]
 
Property, Plant and Equipment [Line Items]
 
Property and equipment useful lives
20 years 
Minimum [Member] |
Machinery and Equipment [Member]
 
Property, Plant and Equipment [Line Items]
 
Property and equipment useful lives
3 years 
Minimum [Member] |
Leasehold Improvements [Member]
 
Property, Plant and Equipment [Line Items]
 
Property and equipment useful lives
5 years 
Maximum [Member] |
Buildings [Member]
 
Property, Plant and Equipment [Line Items]
 
Property and equipment useful lives
40 years 
Maximum [Member] |
Machinery and Equipment [Member]
 
Property, Plant and Equipment [Line Items]
 
Property and equipment useful lives
10 years 
Maximum [Member] |
Leasehold Improvements [Member]
 
Property, Plant and Equipment [Line Items]
 
Property and equipment useful lives
10 years 
Summary of Significant Accounting Policies - Schedule of Property Plant and Equipment by Major Assets Class (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Property Plant And Equipment Net [Abstract]
 
 
Land
$ 7,815 
$ 8,916 
Buildings and leasehold improvements
59,730 
65,425 
Machinery and equipment
260,880 
299,065 
Property, Plant and Equipment, at cost
328,425 
373,406 
Less allowances for depreciation and amortization
(244,521)
(267,140)
Property, plant and equipment, net
$ 83,904 
$ 106,266 
Summary of Significant Accounting Policies - The Balances in the Company's Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
Beginning balance
$ 93,033 
$ 97,703 
$ 146,571 
Total other comprehensive income (loss)
19,633 
4,936 
(27,422)
Ending balance
93,752 
93,033 
97,703 
Foreign Currency [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
Beginning balance
(32,342)
(37,447)
(9,825)
Other comprehensive income (loss) before reclassifications
2,391 
5,105 
(17,131)
Amounts reclassified from accumulated other comprehensive income, net of tax
17,201 
(10,491)
Total other comprehensive income (loss)
19,592 
5,105 
(27,622)
Ending balance
(12,750)
(32,342)
(37,447)
Defined Benefit Pension Plans [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
Beginning balance
(1,832)
(1,663)
(1,863)
Other comprehensive income (loss) before reclassifications
(31)
(222)
144 
Amounts reclassified from accumulated other comprehensive income, net of tax
72 
53 
56 
Total other comprehensive income (loss)
41 
(169)
200 
Ending balance
(1,791)
(1,832)
(1,663)
Accumulated Other Comprehensive Income (Loss) [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
Beginning balance
(34,174)
(39,110)
(11,688)
Other comprehensive income (loss) before reclassifications
2,360 
4,883 
(16,987)
Amounts reclassified from accumulated other comprehensive income, net of tax
17,273 
53 
(10,435)
Total other comprehensive income (loss)
19,633 
4,936 
(27,422)
Ending balance
$ (14,541)
$ (34,174)
$ (39,110)
Summary of Significant Accounting Policies - The Balances in the Company's Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Reclassification from AOCI, Current Period, Tax [Abstract]
 
 
 
Amounts reclassified from accumulated other comprehensive income, tax
$ 24 
$ 30 
$ 32 
Impairment Charges - Additional Information (Details) (USD $)
12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2016
Material Handling [Member]
Jun. 30, 2017
Manufacturing Plant Closing [Member]
Scarborough, Ontario, Canada [Member]
Dec. 31, 2017
Manufacturing Plant Closing [Member]
Scarborough, Ontario, Canada [Member]
Jun. 30, 2017
Other Assets [Member]
Manufacturing Plant Closing [Member]
Scarborough, Ontario, Canada [Member]
Level 2 [Member]
Building classified as held for sale, fair value
 
 
 
 
 
 
$ 3,200,000 
Impairment charges
544,000 
1,329,000 
1,300,000 
500,000 
 
 
Proceeds from sale of building
 
 
 
 
 
3,100,000 
 
Additional loss on sale of buliding
$ 3,482,000 
$ (628,000)
$ (556,000)
 
 
$ (100,000)
 
Goodwill and Intangible Assets - Additional Information (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Finite And Indefinite Lived Intangible Assets [Line Items]
 
 
 
Impairment of goodwill and indefinite-lived intangible assets
$ 0 
$ 0 
$ 0 
Amortization of Intangible Assets
8,378,000 
9,277,000 
9,447,000 
Estimated amortization expense, 2018
8,198,000 
 
 
Estimated amortization expense, 2019
7,824,000 
 
 
Estimated amortization expense, 2020
4,946,000 
 
 
Estimated amortization expense, 2021
2,278,000 
 
 
Estimated amortization expense, 2022
2,278,000 
 
 
Trade Names [Member]
 
 
 
Finite And Indefinite Lived Intangible Assets [Line Items]
 
 
 
Carrying value of indefinite-lived intangible assets
$ 9,972,000 
$ 10,050,000 
 
Goodwill and Intangible Assets - Change in Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Goodwill [Roll Forward]
 
 
Beginning balance
$ 59,219 
$ 58,887 
Foreign currency translation
752 
332 
Ending balance
59,971 
59,219 
Distribution [Member]
 
 
Goodwill [Roll Forward]
 
 
Beginning balance
505 
505 
Foreign currency translation
Ending balance
505 
505 
Material Handling [Member]
 
 
Goodwill [Roll Forward]
 
 
Beginning balance
58,714 
58,382 
Foreign currency translation
752 
332 
Ending balance
$ 59,466 
$ 58,714 
Goodwill and Intangible Assets - Intangible Assets (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Finite And Indefinite Lived Intangible Assets [Line Items]
 
 
Gross
$ 87,805 
$ 86,614 
Accumulated amortization
(48,756)
(39,746)
Net
39,049 
46,868 
Trade Names [Member]
 
 
Finite And Indefinite Lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangibles
9,972 
10,050 
Trade Names [Member]
 
 
Finite And Indefinite Lived Intangible Assets [Line Items]
 
 
Weighted Average Remaining Useful Life (years)
7 years 6 months 
 
Gross
80 
80 
Accumulated amortization
(40)
(34)
Net
40 
46 
Customer Relationships [Member]
 
 
Finite And Indefinite Lived Intangible Assets [Line Items]
 
 
Weighted Average Remaining Useful Life (years)
2 years 
 
Gross
41,043 
39,774 
Accumulated amortization
(27,396)
(21,127)
Net
13,647 
18,647 
Technology [Member]
 
 
Finite And Indefinite Lived Intangible Assets [Line Items]
 
 
Weighted Average Remaining Useful Life (years)
6 years 2 months 12 days 
 
Gross
24,980 
24,980 
Accumulated amortization
(9,590)
(7,037)
Net
15,390 
17,943 
Patents [Member]
 
 
Finite And Indefinite Lived Intangible Assets [Line Items]
 
 
Gross
11,730 
11,730 
Accumulated amortization
(11,730)
(11,548)
Net
 
$ 182 
Discontinued Operations - Additional Information (Details) (USD $)
12 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 18, 2017
Brazil Business [Member]
Dec. 31, 2017
Brazil Business [Member]
Dec. 31, 2017
Brazil Business [Member]
Maximum [Member]
Factoring Arrangement [Member]
Dec. 31, 2017
Brazil Business [Member]
Level 3 [Member]
Feb. 17, 2015
Lawn And Garden Business [Member]
Dec. 31, 2016
Lawn And Garden Business [Member]
Dec. 31, 2015
Lawn And Garden Business [Member]
Dec. 31, 2017
Lawn And Garden Business [Member]
Dec. 31, 2017
Lawn And Garden Business [Member]
Notes Receivable [Member]
Dec. 31, 2016
Lawn And Garden Business [Member]
Notes Receivable [Member]
Dec. 31, 2015
Lawn And Garden Business [Member]
Notes Receivable [Member]
Jun. 20, 2014
WEK [Member]
Dec. 31, 2014
WEK [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration received for discontinued operation
 
 
 
$ 1 
 
 
 
 
 
 
 
 
 
 
 
 
Additional amounts due, or to be settled
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on sale of Business
 
 
 
 
(35,000,000)
 
 
 
 
500,000 
 
 
 
 
 
 
Cash held by discontinued business
 
5,484,000 
 
 
1,200,000 
 
 
 
 
 
 
 
 
 
 
 
Cost incurred to sell business
 
 
 
 
300,000 
 
 
 
 
 
 
 
 
 
 
 
U.S. tax benefit as a result of a worthless stock deduction
 
 
 
15,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantee obligation amount until December 31, 2019
 
 
 
 
 
7,000,000 
 
 
 
 
 
 
 
 
 
 
Liability related to guaranty
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
 
 
 
 
 
 
 
6.00% 
 
 
 
 
 
 
 
 
Notes Receivable, Fair Value Disclosure
 
 
 
 
 
 
 
17,800,000 
 
 
 
 
 
 
 
 
Notes receivable, carrying value
18,737,000 
18,275,000 
 
 
 
 
 
 
 
 
18,700,000 
 
 
 
 
 
Amount of consideration received
 
 
 
 
 
 
 
110,000,000 
 
 
 
 
 
 
 
 
Proceeds from divestiture of businesses
 
 
 
 
 
 
 
90,000,000 
 
 
 
 
 
 
20,700,000 
 
Promissory note receivable
 
 
 
 
 
 
 
20,000,000 
 
 
 
 
 
 
 
 
Maturity date of promissory note receivable
 
 
 
 
 
 
 
2020-08 
 
 
 
 
 
 
 
 
Escrow deposit
 
 
 
 
 
 
 
8,600,000 
 
 
 
 
 
 
 
 
Escrow deposit due to be settled date
 
 
 
 
 
 
 
2016-08 
 
 
 
 
 
 
 
 
Interest income on notes receivable
1,361,000 
1,262,000 
1,067,000 
 
 
 
 
 
 
 
 
1,300,000 
1,300,000 
1,000,000 
 
 
Adjustment to working capital
 
 
 
 
 
 
 
 
4,000,000 
 
 
 
 
 
800,000 
 
Proceeds from divestiture of businesses, held in escrow
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
 
Net gain on sale of discontinued operations, net of tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
Tax (expense) benefit from provision for (gain) Loss on disposal
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,600,000 
Discontinued Operations- Summary of Selected Financial Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from discontinued operations, net of income tax
$ (20,074)
$ 174 
$ (489)
$ (344)
$ (559)
$ (166)
$ (427)
$ (9,115)
$ (20,733)
$ (10,267)
$ 291 
Brazil Business, Lawn and Garden Business and WEK [Member]
 
 
 
 
 
 
 
 
 
 
 
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
29,976 
23,683 
59,853 
Cost of sales
 
 
 
 
 
 
 
 
25,359 
20,941 
50,772 
Selling, general, and administrative
 
 
 
 
 
 
 
 
6,748 
5,438 
13,898 
(Gain) loss on disposal of assets
 
 
 
 
 
 
 
 
(32)
226 
62 
Impairment charges
 
 
 
 
 
 
 
 
8,545 
Interest income, net
 
 
 
 
 
 
 
 
(286)
(469)
(10)
Gain (loss) on the disposal of the discontinued operations
 
 
 
 
 
 
 
 
(34,956)
1,873 
Loss from discontinued operations before income tax
 
 
 
 
 
 
 
 
(36,769)
(10,998)
(2,996)
Income tax benefit
 
 
 
 
 
 
 
 
(16,036)
(731)
(3,287)
Income (loss) from discontinued operations, net of income tax
 
 
 
 
 
 
 
 
$ (20,733)
$ (10,267)
$ 291 
Discontinued Operations - Summary of Assets and Liabilities of Discontinued Operations (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Discontinued Operations And Disposal Groups [Abstract]
 
 
Cash and cash equivalents
 
$ 5,484 
Accounts receivable, net
 
7,328 
Inventories
 
1,238 
Prepaid expenses and other current assets
 
148 
Total current assets
14,198 
Intangible assets, net
 
1,126 
Deferred income taxes
 
134 
Property, plant and equipment, net
 
5,215 
Other
 
34 
Total noncurrent assets
6,509 
Total assets of the disposal group classified as discontinued operations
 
20,707 
Accounts payable
 
1,415 
Accrued expenses
 
1,335 
Total current liabilities
2,750 
Deferred income taxes
 
249 
Total noncurrent liabilities
249 
Total liabilities of the disposal group classified as discontinued operations
 
$ 2,999 
Net Income (Loss) Per Common Share (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Earnings Per Share [Abstract]
 
 
 
Weighted average common shares outstanding basic
30,222,289 
29,750,378 
30,616,485 
Dilutive effect of stock options and restricted stock (in shares)
340,357 
217,534 
327,208 
Weighted average common shares outstanding diluted (in shares)
30,562,646 
29,967,912 
30,943,693 
Net Income (Loss) per Common Share - Additional Information (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Earnings Per Share [Abstract]
 
 
 
Anti-dilutive securities excluded from computation of net earnings or loss per common share
242,500 
551,761 
463,200 
Restructuring (Restructuring Charges by Segment) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Restructuring Cost And Reserve [Line Items]
 
 
 
Restructuring charges
$ 7,553 
$ 0 
$ 2,411 
Cost of Sales [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Restructuring charges
7,389 
1,340 
SG&A [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Restructuring charges
164 
1,071 
Distribution [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Restructuring charges
124 
Distribution [Member] |
Cost of Sales [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Restructuring charges
Distribution [Member] |
SG&A [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Restructuring charges
124 
Material Handling [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Restructuring charges
7,553 
2,252 
Material Handling [Member] |
Cost of Sales [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Restructuring charges
7,389 
1,340 
Material Handling [Member] |
SG&A [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Restructuring charges
164 
912 
Corporate [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Restructuring charges
35 
Corporate [Member] |
Cost of Sales [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Restructuring charges
Corporate [Member] |
SG&A [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Restructuring charges
$ 0 
$ 0 
$ 35 
Restructuring - Additional Information (Details) (USD $)
12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Material Handling [Member]
Dec. 31, 2016
Material Handling [Member]
Dec. 31, 2015
Material Handling [Member]
facility
Sep. 30, 2017
Held for Sale [Member]
Dec. 31, 2017
Cost of Sales [Member]
Dec. 31, 2016
Cost of Sales [Member]
Dec. 31, 2015
Cost of Sales [Member]
Dec. 31, 2017
Cost of Sales [Member]
Material Handling [Member]
Dec. 31, 2016
Cost of Sales [Member]
Material Handling [Member]
Dec. 31, 2015
Cost of Sales [Member]
Material Handling [Member]
Dec. 31, 2017
General and Administrative Expense
Dec. 31, 2017
Manufacturing Plant Closing [Member]
Dec. 31, 2017
Manufacturing Plant Closing [Member]
Sandusky, Ohio [member]
Dec. 31, 2017
Headcount Efficiencies [Member]
Dec. 31, 2017
Headcount Efficiencies [Member]
Cost of Sales [Member]
Scarborough, Ontario, Canada [Member]
Restructuring Cost And Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected restructuring charges in 2017
$ 7,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges in employee severance and other employee-related costs
3,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,600,000 
Restructuring charges in equipment relocation and facility shut down costs
2,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected restructuring charges in accelerated depreciation charges on property, plant and equipment
2,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains on other asset dispositions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,500,000 
 
 
 
Restructuring charges
7,553,000 
2,411,000 
7,553,000 
2,252,000 
 
7,389,000 
1,340,000 
7,389,000 
1,340,000 
 
5,500,000 
500,000 
3,022,000 
 
Proceeds from the sale of assets
 
 
 
 
 
 
6,000,000 
 
 
 
 
 
 
 
 
 
 
 
Gain on asset dispositions
 
 
 
 
 
 
2,600,000 
 
 
 
 
 
 
 
 
 
 
 
Other restructuring associated costs incurred
 
 
 
 
 
 
 
$ 100,000 
 
 
 
 
 
$ 1,000,000 
$ 1,100,000 
 
 
 
Number of manufacturing plants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring - Summary of Restructuring Activity (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Restructuring Cost And Reserve [Line Items]
 
 
 
Charges to expense
$ 7,553 
$ 0 
$ 2,411 
Cash payments
(4,372)
 
 
Non-cash utilization
(1,993)
 
 
Balance at December 31, 2017
1,188 
 
 
Employee Reduction [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Charges to expense
3,022 
 
 
Cash payments
(1,924)
 
 
Balance at December 31, 2017
1,098 
 
 
Accelerated Depreciation [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Charges to expense
1,993 
 
 
Non-cash utilization
(1,993)
 
 
Other Exit Costs [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Charges to expense
2,538 
 
 
Cash payments
(2,448)
 
 
Balance at December 31, 2017
$ 90 
 
 
Other Current Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
 
 
Deposits and amounts due to customers
$ 3,102 
$ 2,562 
Dividends payable
4,478 
4,260 
Accrued litigation and professional fees
417 
452 
Current portion of environmental reserves
1,322 
605 
Other accrued expenses
6,153 
5,032 
Other current liabilities, Total
$ 15,472 
$ 12,911 
Stock Compensation - Additional Information (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Stock Options [Member]
Dec. 31, 2017
Restricted Stock Units [Member]
Minimum [Member]
Dec. 31, 2017
Restricted Stock Units [Member]
Maximum [Member]
Dec. 31, 2017
Performance-Based Restricted Stock Units [Member]
Dec. 31, 2017
Performance-Based Restricted Stock Units [Member]
Minimum [Member]
Dec. 31, 2017
Performance-Based Restricted Stock Units [Member]
Maximum [Member]
Mar. 2, 2017
2017 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
Shares authorized for grant under plan (in shares)
 
 
 
 
 
 
 
 
 
5,126,950 
Period of expiration, term
 
 
 
10 years 
 
 
 
 
 
 
Stock options expired or forfeited
218,130 
162,565 
71,567 
 
 
 
 
 
 
 
The total intrinsic value of all stock options exercised
$ 2,813 
$ 1,809 
$ 1,151 
 
 
 
 
 
 
 
Vesting period, in years
 
 
 
 
2 years 
3 years 
 
 
 
 
Stock granted during period
 
 
 
 
 
 
211,769 
 
 
 
Percentage of established target performance criteria
 
 
 
 
 
 
 
0.00% 
200.00% 
 
Stock compensation expense
3,626 
3,357 
4,934 
 
 
 
 
 
 
 
Total unrecognized compensation cost related to non-vested share based compensation arrangements
$ 5,317 
 
 
 
 
 
 
 
 
 
Unrecognized compensation cost period for recognition
3 years 
 
 
 
 
 
 
 
 
 
Stock Compensation - Summary of Stock Option Activity for the Period (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
 
Options Granted (in shares)
397,759 
271,350 
208,200 
Issuances under option plans, shares
375,292 
334,836 
239,508 
Outstanding at December 31, 2016
1,183,830 
1,409,881 
 
Options Exercised, Shares (in shares)
(375,292)
(334,836)
(239,508)
Cancelled or forfeited (in shares)
(218,130)
 
 
Outstanding at December 31, 2017
988,167 
1,183,830 
1,409,881 
Exercisable at December 31, 2017
539,993 
934,898 
1,231,544 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
 
 
Options Granted, Average Exercise Price (in dollars per share)
$ 14.30 
$ 11.62 
$ 18.67 
Options Exercised, Average Exercise Price (in dollars per share)
$ 11.71 
 
 
Outstanding, Average Price (in dollars per share)
$ 14.50 
 
 
Cancelled or forfeited, average exercise price (in dollars per share)
$ 16.08 
 
 
Outstanding, Average Price (in dollars per share)
$ 15.13 
$ 14.50 
 
Exercisable, Average Exercise Price (in dollars per share)
$ 16.23 
$ 14.88 
$ 13.47 
Outstanding, Weighted Average Life
7 years 2 months 26 days 
 
 
Exercisable, Weighted Average Life
5 years 10 months 6 days 
 
 
Minimum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
 
 
Options Exercised, Average Exercise Price (in dollars per share)
$ 9.97 
$ 9.00 
$ 9.97 
Maximum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
 
 
Options Exercised, Average Exercise Price (in dollars per share)
$ 20.93 
$ 14.77 
$ 17.02 
Stock Compensation - Options outstanding and exercisable (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
 
 
Outstanding (in shares)
988,167 
1,183,830 
1,409,881 
Exercise price range, minimum (in dollars per share)
$ 9.97 
$ 9.97 
$ 9.00 
Exercise price range, maximum (in dollars per share)
$ 20.93 
$ 20.93 
$ 20.93 
Exercisable (in shares)
539,993 
934,898 
1,231,544 
Weighted average exercise price (in dollars per share)
$ 16.23 
$ 14.88 
$ 13.47 
Stock Compensation - Fair Value of Stock Options Granted Assumptions Used (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
 
 
Risk free interest rate
2.50% 
1.80% 
2.10% 
Expected dividend yield
3.80% 
4.60% 
2.90% 
Expected life of award (in years)
4 years 1 month 6 days 
8 years 
8 years 
Expected volatility
50.00% 
50.00% 
50.00% 
Fair value per option
$ 4.47 
$ 3.45 
$ 6.03 
Stock Compensation - Summary of Combined Restricted Stock Units and Restricted Stock Activity (Details) (Restricted Stock Units and Restricted Stock [Member], USD $)
12 Months Ended
Dec. 31, 2017
Restricted Stock Units and Restricted Stock [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Unvested (in shares)
331,410 
Granted (in shares)
238,111 
Vested (in shares)
(100,006)
Forfeited (in shares)
(56,865)
Unvested (in shares)
412,650 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
 
Granted, Average Grant Date Fair Value (in dollars per share)
$ 14.57 
Vested, Average Grant Date Fair Value (in dollars per share)
$ 14.89 
Forfeited, Average Grant Date Fair Value (in dollars per share)
$ 13.91 
Contingencies - Additional Information (Details) (USD $)
12 Months Ended 1 Months Ended 6 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2017
New Idria Mercury Mine [Member]
Apr. 30, 2016
New Almaden Mine (Formerly Referred to as Guadalupe River Watershed) [Member]
Natural Resource Damage Claim [Member]
Sep. 30, 2016
New Almaden Mine (Formerly Referred to as Guadalupe River Watershed) [Member]
Natural Resource Damage Claim [Member]
Dec. 31, 2017
New Almaden Mine (Formerly Referred to as Guadalupe River Watershed) [Member]
Natural Resource Damage Claim [Member]
Dec. 31, 2005
New Almaden Mine (Formerly Referred to as Guadalupe River Watershed) [Member]
Natural Resource Damage Claim [Member]
Dec. 31, 2016
New Almaden Mine (Formerly Referred to as Guadalupe River Watershed) [Member]
Natural Resource Damage Claim [Member]
Dec. 31, 2017
Lawn and Garden Indemnification Claim [Member]
Oct. 31, 2011
Pending Litigation [Member]
New Idria Mercury Mine [Member]
EPA Notice Letter [Member]
Sep. 30, 2017
Pending Litigation [Member]
New Idria Mercury Mine [Member]
EPA Notice Letter [Member]
Jun. 30, 2016
Pending Litigation [Member]
New Idria Mercury Mine [Member]
EPA Notice Letter [Member]
Dec. 31, 2015
Pending Litigation [Member]
New Idria Mercury Mine [Member]
EPA Notice Letter [Member]
Dec. 31, 2017
Pending Litigation [Member]
New Idria Mercury Mine [Member]
EPA Notice Letter [Member]
Dec. 31, 2016
Pending Litigation [Member]
New Idria Mercury Mine [Member]
EPA Notice Letter [Member]
Jun. 30, 2015
Settled Litigation [Member]
Patent Infringement Against Orbis Corp [Member]
Loss From Patent Infringement [Member]
Sep. 30, 2014
Settled Litigation [Member]
Patent Infringement Against Orbis Corp [Member]
Loss From Patent Infringement [Member]
Dec. 31, 2016
Settled Litigation [Member]
Patent Infringement Against Orbis Corp [Member]
Loss From Patent Infringement [Member]
Dec. 31, 2017
Settled Litigation [Member]
Patent Infringement Against Orbis Corp [Member]
Loss From Patent Infringement [Member]
Maximum [Member]
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected future EPA oversite costs recognized
 
 
$ 1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial assurance required to be provided to EPA
 
 
2,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial assurance provision expected period following execution of AOC
 
 
30 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expense recognized
 
 
 
 
1,200,000 
 
800,000 
 
 
1,900,000 
 
1,000,000 
 
 
 
 
 
 
 
Additional reserve
 
 
 
 
 
 
 
 
 
 
300,000 
 
 
 
 
 
 
 
 
Loss contingency costs
 
 
 
 
 
 
 
 
 
 
 
 
 
1,600,000 
 
 
 
 
 
Accrued balance
 
 
 
 
 
 
 
 
 
 
 
 
1,300,000 
 
 
 
3,000,000 
 
 
Total reserve
 
 
 
 
 
1,500,000 
 
1,500,000 
 
 
 
 
 
3,600,000 
2,500,000 
 
 
 
 
Other current liabilities
15,472,000 
12,911,000 
 
 
 
300,000 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
Other liabilities
8,236,000 
9,203,000 
 
 
 
1,200,000 
 
 
 
 
 
 
 
2,600,000 
 
 
 
 
 
Accrued balance
 
 
 
 
 
500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Original estimated project costs
 
 
 
1,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revised estimated project costs, Low Estimate
 
 
 
3,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revised estimated project costs, High Estimate
 
 
 
4,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indemnification claims
 
 
 
 
 
 
 
 
10,000,000 
 
 
 
 
 
 
 
 
 
 
Escrow deposit
 
 
 
 
 
 
 
 
8,600,000 
 
 
 
 
 
 
 
 
 
 
Escrow deposit due to be settled date
 
 
 
 
 
 
 
 
2016-08 
 
 
 
 
 
 
 
 
 
 
Litigation settlement, amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000 
3,100,000 
Contingency accrual reversal
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 3,000,000 
 
 
 
Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 152,632 
$ 190,686 
Less unamortized deferred financing fees
1,596 
1,164 
Long-term Debt, net of deferred financing costs
151,036 
189,522 
Loan Agreement [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
74,632 
90,686 
4.67% Senior Unsecured Notes due 2021 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
40,000 
40,000 
5.25% Senior Unsecured Notes due 2024 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
11,000 
11,000 
5.30% Senior Unsecured Notes due 2024 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
15,000 
29,000 
5.45% Senior Unsecured Notes due 2026 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 12,000 
$ 20,000 
Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Parenthetical) (Details)
12 Months Ended
Dec. 31, 2017
4.67% Senior Unsecured Notes due 2021 [Member]
 
Debt Instrument [Line Items]
 
Interest rate
4.67% 
Debt instrument maturity period
2021 
5.25% Senior Unsecured Notes due 2024 [Member]
 
Debt Instrument [Line Items]
 
Interest rate
5.25% 
Debt instrument maturity period
2024 
5.30% Senior Unsecured Notes due 2024 [Member]
 
Debt Instrument [Line Items]
 
Interest rate
5.30% 
Debt instrument maturity period
2024 
5.45% Senior Unsecured Notes due 2026 [Member]
 
Debt Instrument [Line Items]
 
Interest rate
5.45% 
Debt instrument maturity period
2026 
Long-Term Debt and Loan Agreements - Additional Information (Details) (USD $)
3 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Interest Expense [Member]
Dec. 31, 2016
Interest Expense [Member]
Dec. 31, 2015
Interest Expense [Member]
Oct. 31, 2017
Senior Unsecured Notes [Member]
NoteHolder
Dec. 31, 2017
Senior Unsecured Notes [Member]
Sep. 30, 2017
Senior Unsecured Notes [Member]
Dec. 31, 2017
Senior Unsecured Note [Member]
Dec. 31, 2017
4.67% Senior Unsecured Notes due 2021 [Member]
Dec. 31, 2016
4.67% Senior Unsecured Notes due 2021 [Member]
Dec. 31, 2017
5.25% Senior Unsecured Notes due 2024 [Member]
Dec. 31, 2016
5.25% Senior Unsecured Notes due 2024 [Member]
Dec. 31, 2017
5.45% Senior Unsecured Notes due 2026 [Member]
Dec. 31, 2016
5.45% Senior Unsecured Notes due 2026 [Member]
Dec. 31, 2017
Loan Agreement [Member]
Sep. 30, 2017
Loan Agreement [Member]
Jun. 30, 2017
Loan Agreement [Member]
Mar. 31, 2017
Loan Agreement [Member]
Dec. 31, 2017
Loan Agreement [Member]
Dec. 31, 2016
Loan Agreement [Member]
Dec. 31, 2015
Loan Agreement [Member]
May 30, 2014
Loan Agreement [Member]
Dec. 31, 2017
Loan Agreement [Member]
Extended Maturity [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity on line of credit
$ 200,000,000 
$ 200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 300,000,000 
 
Loan maturity period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018-12 
 
 
 
2022-03 
Maximum leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.25% 
3.50% 
3.75% 
3.75% 
 
 
 
 
 
Remaining amount available under the line of credit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
121,000,000 
 
 
 
121,000,000 
 
 
 
 
Letters of credit
4,400,000 
4,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt
152,632,000 
152,632,000 
190,686,000 
 
 
 
 
 
 
 
78,000,000 
40,000,000 
40,000,000 
11,000,000 
11,000,000 
12,000,000 
20,000,000 
 
 
 
 
 
 
 
 
 
Interest rate
 
 
 
 
 
 
 
 
 
 
 
4.67% 
 
5.25% 
 
5.45% 
 
 
 
 
 
 
 
 
 
 
Face value of debt instrument with offer to be repurchased
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument repurchase amount
 
 
 
 
 
 
 
22,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding principal balance of notes purchased
 
 
 
 
 
 
 
22,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument repurchase amount including make-whole premium
 
 
 
 
 
 
 
23,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument repurchase make-whole premium amount
 
 
 
 
 
 
 
1,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument repurchase date
 
 
 
 
 
 
 
Oct. 31, 2017 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of note holder accepted the offer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
(1,900,000)
1,888,000 
 
 
 
 
1,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized deferred financing costs
1,596,000 
1,596,000 
1,164,000 
 
 
 
 
 
100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization expense of deferred financing costs
 
 
 
 
$ 508,000 
$ 466,000 
$ 465,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate during period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.94% 
4.69% 
4.59% 
 
 
Long-Term Debt and Loan Agreements - Schedule of Debt Ratios (Details) (Unsecured Senior Notes [Member])
Dec. 31, 2017
Unsecured Senior Notes [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Interest Coverage Ratio, Actual
7.58% 
Debt Instrument, Leverage Ratio, Actual
2.40% 
Debt Instrument, Covenant, Interest Coverage Ratio Required, Minimum
3.00% 
Debt Instrument, Covenant, Leverage Ratio Required, Maximum
3.25% 
Income Taxes - Additional Information (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2017
Transition
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Earliest Tax Year [Member]
State and Local [Member]
Dec. 31, 2017
Earliest Tax Year [Member]
Non-U.S [Member]
Dec. 31, 2017
Latest Tax Year [Member]
State and Local [Member]
Dec. 31, 2017
Latest Tax Year [Member]
Non-U.S [Member]
Dec. 18, 2017
Brazil Business [Member]
Dec. 31, 2017
Brazil Business [Member]
Dec. 31, 2016
Brazil Business [Member]
Dec. 31, 2018
Scenario, Forecast
Income Taxes [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate for the year
31.00% 
39.50% 
31.50% 
 
 
 
 
 
 
 
 
Corporate income tax rate
35.00% 
35.00% 
35.00% 
 
 
 
 
 
 
 
21.00% 
Number of foreign subsidiaries
 
 
 
 
 
 
 
 
 
 
Tax cuts and jobs act of 2017 net benefit to income tax expense
$ 1,200,000 
 
 
 
 
 
 
 
 
 
 
Tax cuts and jobs act of 2017 due to change in tax rate deferred tax benefit
3,000,000 
 
 
 
 
 
 
 
 
 
 
Tax cuts and jobs act of 2017 provisional income tax expense benefit
1,800,000 
 
 
 
 
 
 
 
 
 
 
Tax cuts and jobs act of 2017 foreign earnings and profits tax rate liquid assets
15.50% 
 
 
 
 
 
 
 
 
 
 
Tax cuts and jobs act of 2017 foreign earnings and profits tax rate liquid assets, unremitted foreign E&P
8.00% 
 
 
 
 
 
 
 
 
 
 
Capital loss incurred divestiture
 
 
 
 
 
 
 
9,500,000 
 
 
 
Deferred tax assets, operating loss carryforwards
1,982,000 
 
 
 
 
 
2,000,000 
 
 
 
Deferred tax assets, valuation allowance
1,982,000 
 
 
 
 
 
 
2,000,000 
600,000 
 
Tax benefit as a result of a worthless stock deduction
 
 
 
 
 
 
 
15,000,000 
 
 
 
Unrecognized tax benefits that would impact effective tax rate
$ 400,000 
$ 500,000 
$ 200,000 
 
 
 
 
 
 
 
 
Income tax examination for tax years
 
 
 
2012 
2012 
2016 
2016 
 
 
 
 
Income Taxes - Reconciliation of the Federal Statutory Income Tax Rate to the Company's Effective Tax Rate (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract]
 
 
 
Statutory Federal income tax rate
35.00% 
35.00% 
35.00% 
State income taxes - net of Federal tax benefit
8.30% 
3.00% 
0.20% 
Foreign tax rate differential
(1.60%)
(0.90%)
(2.20%)
Domestic production deduction
(5.20%)
(3.20%)
(3.40%)
Non-deductible expenses
0.40% 
2.90% 
1.50% 
Impact of tax law changes
(7.40%)
0.00% 
0.00% 
Changes in unrecognized tax benefits
0.90% 
(0.80%)
(1.60%)
Foreign tax incentives
0.00% 
(0.40%)
0.00% 
Valuation allowances
0.00% 
3.20% 
0.00% 
Other
0.60% 
0.70% 
2.00% 
Effective tax rate for the year
31.00% 
39.50% 
31.50% 
Income Taxes - Income (Loss) from Continuing Operations Before Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
United States
$ 12,979 
$ 17,010 
$ 19,546 
Foreign
2,729 
1,709 
5,962 
Income from continuing operations before income taxes
$ 15,708 
$ 18,719 
$ 25,508 
Income Taxes - Income Tax Expense (Benefit) from Continuing Operations (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Current
 
 
 
Federal
$ 6,304 
$ 5,684 
$ 6,677 
Foreign
1,821 
515 
337 
State and local
2,402 
641 
812 
Current Income Tax Expense (Benefit)
10,527 
6,840 
7,826 
Deferred
 
 
 
Federal
(4,394)
(413)
(368)
Foreign
(883)
741 
1,308 
State and local
(386)
227 
(729)
Deferred Income Tax Expense (Benefit)
$ (5,663)
$ 555 
$ 211 
Income Taxes - Significant Components of the Company's Deferred Taxes (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Deferred income tax liabilities
 
 
Property, plant and equipment
$ 6,255 
$ 11,529 
Tax-deductible goodwill
5,202 
9,136 
State deferred taxes
132 
360 
Other
149 
889 
Deferred tax liabilities, gross
11,738 
21,914 
Deferred income tax assets
 
 
Compensation
3,030 
5,686 
Inventory valuation
502 
769 
Allowance for uncollectible accounts
268 
487 
Non-deductible accruals
2,195 
3,525 
Non-deductible intangibles
1,193 
1,165 
Capital loss carryforwards
1,982 
Net operating loss carryforwards
405 
Deferred tax assets, gross
9,575 
11,632 
Valuation Allowance
(1,982)
Deferred Tax Assets, Net of Valuation Allowance
7,593 
11,632 
Net deferred income tax liability
$ 4,145 
$ 10,282 
Retirement Plans - Periodic Pension Cost (Details) (Pension Plans, Defined Benefit [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pension Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Interest cost
$ 253 
$ 270 
$ 272 
Expected return on assets
(295)
(319)
(332)
Amortization of net loss
96 
82 
88 
Net periodic pension cost
$ 54 
$ 33 
$ 28 
Retirement Plans - Reconciliation of Changes in Projected Benefit Obligations (Details) (Pension Plans, Defined Benefit [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pension Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Projected benefit obligation at beginning of year
$ 6,503 
$ 6,465 
 
Interest cost
253 
270 
272 
Actuarial loss
276 
238 
 
Expenses paid
(84)
(92)
 
Benefits paid
(369)
(378)
 
Projected benefit obligation at end of year
6,579 
6,503 
6,465 
Accumulated benefit obligation at end of year
$ 6,579 
$ 6,503 
 
Retirement Plans - Assumptions Used to Determine the Net Periodic Benefit Cost and Benefit Obligations (Details) (Pension Plans, Defined Benefit [Member])
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pension Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate for net periodic pension cost
4.00% 
4.30% 
3.90% 
Discount rate for benefit obligations
3.50% 
4.00% 
4.30% 
Expected long-term return of plan assets
7.75% 
7.75% 
7.50% 
Retirement Plans - Change in the Fair Value of the Plans Assets (Details) (Pension Plans, Defined Benefit [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Pension Plans, Defined Benefit [Member]
 
 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
Fair value of plan assets at beginning of year
$ 5,183 
$ 5,443 
Actual return on plan assets
531 
210 
Company contributions
Expenses paid
(84)
(92)
Benefits paid
(369)
(378)
Fair value of plan assets at end of year
$ 5,261 
$ 5,183 
Retirement Plans - Weighted Average Asset Allocations (Details) (Pension Plans, Defined Benefit [Member])
Dec. 31, 2017
Dec. 31, 2016
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Weighted average asset allocations
100.00% 
100.00% 
U.S. Equities securities [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Weighted average asset allocations
72.00% 
72.00% 
U.S. Debt securities [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Weighted average asset allocations
24.00% 
24.00% 
Cash [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Weighted average asset allocations
4.00% 
4.00% 
Retirement Plans - Reconciliation of the Funded Status of the Plan (Details) (Pension Plans, Defined Benefit [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pension Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
 
Projected benefit obligation
$ 6,579 
$ 6,503 
$ 6,465 
Plan assets at fair value
5,261 
5,183 
5,443 
Funded status
$ (1,318)
$ (1,320)
 
Retirement Plans - Benefit Payments Projected for the Plan (Details) (Pension Plans, Defined Benefit [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Pension Plans, Defined Benefit [Member]
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
2018
$ 360 
2019
366 
2020
371 
2021
372 
2022
370 
2023-2027
$ 1,874 
Retirement Plans - Additional Information (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Executive Officer [Member] |
SERP [Member]
 
 
 
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
 
 
 
Plan expense recognized
$ 128 
$ 192 
$ 188 
Discount rate for benefit obligations
3.50% 
4.00% 
 
Accrued compensation
2,923 
3,319 
 
401K Plan [Member]
 
 
 
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
 
 
 
Recognized expense
$ 2,302 
$ 2,324 
$ 2,363 
Leases - Additional Information (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Rental Expense
 
 
 
Aggregate rental expense for leased assets
$ 3,198 
$ 3,625 
$ 3,647 
Leases (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Operating Leases, Future Rental Payments
 
2018
$ 2,486 
2019
942 
2020
663 
2021
590 
2022
564 
Thereafter
390 
Total
$ 5,635 
Industry Segments - Additional Information (Details) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Segment
Dec. 31, 2016
Dec. 31, 2015
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Number of operating segments
 
 
 
 
 
 
 
 
 
 
Net sales
$ 140,106,000 
$ 135,113,000 
$ 135,252,000 
$ 136,572,000 
$ 123,289,000 
$ 125,669,000 
$ 138,244,000 
$ 147,177,000 
$ 547,043,000 
$ 534,379,000 
$ 571,020,000 
Foreign Countries [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
53,900,000 
64,200,000 
75,100,000 
Long-lived assets
$ 17,600,000 
 
 
 
$ 22,400,000 
 
 
 
$ 17,600,000 
$ 22,400,000 
 
Sales [Member] |
Customer Concentration Risk [Member] |
Canada [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Concentration risk percentage
 
 
 
 
 
 
 
 
2.40% 
4.60% 
5.50% 
Industry Segments - Schedule of reporting information by segment (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 140,106 
$ 135,113 
$ 135,252 
$ 136,572 
$ 123,289 
$ 125,669 
$ 138,244 
$ 147,177 
$ 547,043 
$ 534,379 
$ 571,020 
Operating Income
 
 
 
 
 
 
 
 
24,888 
27,362 
34,517 
Interest expense, net
 
 
 
 
 
 
 
 
(7,292)
(8,643)
(9,009)
Loss on extinguishment of debt
1,900 
 
 
 
 
 
 
 
(1,888)
Income from continuing operations before income taxes
 
 
 
 
 
 
 
 
15,708 
18,719 
25,508 
Identifiable Assets
355,942 
 
 
 
381,684 
 
 
 
355,942 
381,684 
429,024 
Capital Additions, Net
 
 
 
 
 
 
 
 
5,814 
12,489 
21,787 
Depreciation and Amortization
 
 
 
 
 
 
 
 
30,831 
31,792 
32,330 
Operating Segments [Member] |
Material Handling [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
391,313 
363,956 
384,351 
Operating Income
 
 
 
 
 
 
 
 
38,874 
40,776 
53,418 
Identifiable Assets
257,863 
 
 
 
268,634 
 
 
 
257,863 
268,634 
307,799 
Capital Additions, Net
 
 
 
 
 
 
 
 
5,165 
10,933 
19,482 
Depreciation and Amortization
 
 
 
 
 
 
 
 
28,506 
29,270 
30,018 
Operating Segments [Member] |
Distribution [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
156,428 
170,660 
187,637 
Operating Income
 
 
 
 
 
 
 
 
9,073 
12,834 
16,114 
Identifiable Assets
49,822 
 
 
 
56,072 
 
 
 
49,822 
56,072 
58,772 
Capital Additions, Net
 
 
 
 
 
 
 
 
622 
1,424 
1,795 
Depreciation and Amortization
 
 
 
 
 
 
 
 
1,174 
1,221 
998 
Operating Segments [Member] |
Discontinued Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Identifiable Assets
 
 
 
20,707 
 
 
 
20,707 
27,707 
Inter-company sales [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
(698)
(237)
(968)
Corporate [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating Income
 
 
 
 
 
 
 
 
(23,059)
(26,248)
(35,015)
Identifiable Assets
48,257 
 
 
 
36,271 
 
 
 
48,257 
36,271 
34,746 
Capital Additions, Net
 
 
 
 
 
 
 
 
27 
132 
510 
Depreciation and Amortization
 
 
 
 
 
 
 
 
$ 1,151 
$ 1,301 
$ 1,314 
Subsequent Events - Additional Information (Details) (USD $)
12 Months Ended 0 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Feb. 27, 2018
Subsequent Event
California [Member]
Distribution [Member]
Subsequent Event [Line Items]
 
 
 
 
Proceed from sale of distribution center
$ 11,058,000 
$ 450,000 
$ 1,261,000 
$ 2,300,000 
Closing costs
$ 2,500,000 
 
 
$ 100,000 
Facility lease period
 
 
 
10 years 
Summarized Quarterly Results of Operations (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$ 140,106 
$ 135,113 
$ 135,252 
$ 136,572 
$ 123,289 
$ 125,669 
$ 138,244 
$ 147,177 
$ 547,043 
$ 534,379 
$ 571,020 
Gross Profit
38,257 
39,143 
38,292 
41,761 
35,300 
34,676 
43,482 
48,440 
157,453 
161,898 
175,862 
Income (loss) from continuing operations
1,821 
3,083 
2,482 
3,458 
(899)
580 
5,921 
5,722 
10,844 
11,324 
17,471 
Income (loss) from discontinued operations, net
(20,074)
174 
(489)
(344)
(559)
(166)
(427)
(9,115)
(20,733)
(10,267)
291 
Net income (loss)
$ (18,253)
$ 3,257 
$ 1,993 
$ 3,114 
$ (1,458)
$ 414 
$ 5,494 
$ (3,393)
$ (9,889)
$ 1,057 
$ 17,762 
Basic (in dollars per share)
$ 0.06 
$ 0.10 
$ 0.08 
$ 0.12 
$ (0.03)
$ 0.02 
$ 0.20 
$ 0.19 
$ 0.36 
$ 0.38 
$ 0.57 
Diluted (in dollars per share)
$ 0.06 
$ 0.10 
$ 0.08 
$ 0.11 
$ (0.03)
$ 0.02 
$ 0.20 
$ 0.19 
$ 0.35 
$ 0.38 
 
Basic (in dollars per share)
$ (0.66)
$ 0.01 
$ (0.01)
$ (0.02)
$ (0.02)
$ (0.01)
$ (0.01)
$ (0.30)
$ (0.69)
$ (0.35)
$ 0.01 
Diluted (in dollars per share)
$ (0.65)
$ 0.01 
$ (0.01)
$ (0.01)
$ (0.02)
$ (0.01)
$ (0.01)
$ (0.30)
$ (0.68)
$ (0.35)
$ 0.01 
Basic (in dollars per share)
$ (0.60)
$ 0.11 
$ 0.07 
$ 0.10 
$ (0.05)
$ 0.01 
$ 0.19 
$ (0.11)
$ (0.33)
$ 0.03 
$ 0.58 
Diluted (in dollars per share)
$ (0.59)
$ 0.11 
$ 0.07 
$ 0.10 
$ (0.05)
$ 0.01 
$ 0.19 
$ (0.11)
$ (0.33)
$ 0.03 
$ 0.57 
Summarized Quarterly Results of Operations (Parenthetical) (Details) (USD $)
3 Months Ended 12 Months Ended 3 Months Ended
Dec. 31, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2016
Material Handling [Member]
Mar. 31, 2016
Material Handling [Member]
Novel [Member]
Dec. 31, 2017
Brazil Business [Member]
Quarterly Financial Information Disclosure [Line Items]
 
 
 
 
 
 
 
Loss on sale of business
 
 
 
 
 
 
$ 35,000,000 
Income tax expense
 
4,864,000 
7,395,000 
8,037,000 
 
 
15,000,000 
Impairment charges
 
544,000 
1,329,000 
1,300,000 
8,500,000 
 
Loss on extinguishment of debt
1,900,000 
(1,888,000)
 
 
 
Tax cuts and jobs act of 2017 net benefit to income tax expense
$ 1,200,000